Expedia 2006 Annual Report Download - page 34

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High Low
Year ended December 31, 2005
Fourth Quarter .................................................. $26.32 $18.49
Third Quarter (from August 9, 2005 through September 30, 2005) ............ 24.52 18.61
Dividend Policy
We have not historically paid cash dividends on our common stock or Class B common stock. Declaration
and payment of future dividends, if any, will be at the discretion of the Board of Directors and will depend on,
among other things, our results of operations, cash requirements and surplus, financial condition, share dilution
management, legal risks, capital requirements relating to research and development, investments and acquisi-
tions, challenges to our business model and other factors that the Board of Directors may deem relevant. In
addition, our Credit Agreement limits our ability to pay cash dividends under certain circumstances.
Unregistered Sales of Equity Securities
During the quarter ended December 31, 2006, we did not issue or sell any shares of our common stock or
other equity securities pursuant to unregistered transactions in reliance upon an exemption from the registration
requirements of the Securities Act of 1933, as amended.
Issuer Purchases of Equity Securities
During 2006, we completed the repurchase of 20 million shares of our common stock for a total cost of
$288 million, representing an average repurchase price of $14.42 per share including transaction costs. All
shares were repurchased in the open market at prevailing market prices.
In addition, during 2006 our Board of Directors authorized additional share repurchases of up to
20 million outstanding shares of our common stock. As of February 15, 2007, we have not made any share
repurchases under this authorization. There is no fixed termination date for the repurchase.
On January 19, 2007, we completed a tender offer pursuant to which we acquired 30 million tendered
shares of our common stock at a purchase price of $22.00 per share, for a total cost of $660 million plus fees
and expenses relating to the tender offer. These shares represent approximately 9.8% of the shares of common
stock outstanding and 9.0% of the total number of shares of common stock and Class B common stock
outstanding as of December 31, 2006.
We did not make any purchases of our common stock during the three months ended December 31, 2006.
Part II. Item 6. Selected Financial Data
We have derived the following selected financial data presented below from the consolidated financial
statements and related notes. The information set forth below is not necessarily indicative of future results and
should be read in conjunction with the consolidated financial statements and related notes and Item 7,
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Our financial statements present our results of operations, financial position, stockholders’ equity and
cash flows on a combined basis up through the Spin-Off on August 9, 2005, and on a consolidated basis
thereafter.
Beginning January 1, 2004, as part of the integration of our businesses, Hotels.com conformed its
merchant hotel business practices to those of our other businesses. As a result, we prospectively commenced
reporting revenue for Hotels.com on a net basis. In our selected financial data below, the revenue amounts
prior to January 1, 2004 report Hotels.com merchant hotel business revenue on a gross basis. The change in
reporting did not affect operating income or net income.
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