Expedia 2006 Annual Report Download - page 85

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The following table presents a summary of our stock options outstanding and exercisable at December 31,
2006:
Range of Exercise Prices Shares
Weighted-
Average
Price per Share
Remaining
Contractual
Life (Years) Shares
Weighted-
Average
Exercise Price
Options Outstanding Options Exercisable
(In thousands) (In thousands)
$ 0.01 - $5.00 879 $ 2.76 3.2 879 $ 2.76
5.01 - 8.00 133 6.45 2.5 133 6.45
8.01 - 12.00 10,886 8.77 1.0 10,874 8.77
12.01 - 18.00 2,251 14.72 5.0 2,206 14.72
18.01 - 25.00 3,877 21.62 3.6 3,871 21.62
25.01 - 35.00 3,088 28.29 7.8 665 27.45
35.01 - 45.00 1,958 38.06 6.9 548 37.36
45.01 - 55.00 10 54.58 3.2 10 54.58
55.01 - 65.00 3 57.95 3.0 3 57.95
65.01 - 97.00 48 79.39 3.0 48 79.39
0.01 - 97.00 23,133 16.52 3.4 19,237 13.42
In 2006, 2005 and 2004, we recognized stock-based compensation expense of $80.3 million, $91.7 million
and $171.4 million. In 2005, we recorded a cumulative benefit from the change in estimated forfeiture rates of
approximately $43.4 million, which reduced the stock-based compensation expense. The total income tax
benefit related to stock-based compensation expense was $27.0 million, $31.3 million and $64.5 million for
2006, 2005 and 2004.
Cash received from stock-based award exercises for the year ended December 31, 2006 was $35.3 million.
Our employees that held vested stock options prior to the Spin-Off received vested stock options in both
Expedia and IAC. As these stock options are exercised, we receive a tax deduction. Total current income tax
benefits realized during the year ended December 31, 2006 associated with the exercise of IAC and Expedia
stock-based awards held by our employees were $34.3 million, of which we recorded approximately
$16.9 million as a reduction of goodwill.
As of December 31, 2006, there was approximately $145 million of unrecognized stock-based compensa-
tion expense, net of estimated forfeitures, related to unvested stock-based awards, which is expected to be
recognized in expense over a weighted-average period of 1.7 years.
Modification of Stock-Based Awards
In connection with the Spin-Off, all existing IAC stock-based awards, which included RSUs, stock
options and warrants, were converted as follows:
• each vested stock option to purchase shares of IAC common stock converted into an option to purchase
shares of IAC common stock and an option to purchase shares of Expedia common stock,
• each unvested stock option to purchase shares of IAC common stock converted into a stock option to
purchase shares of common stock of the applicable company for which the employee worked following
the Spin-Off,
• all RSUs converted into RSUs of the applicable company for which the employee worked following the
Spin-Off, and
F-25
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)