Expedia 2006 Annual Report Download - page 91

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as indicated above (ii) if dilutive, the incremental common stock that we would issue upon the assumed
exercise of stock options and stock warrants and the vesting of restricted stock units using the treasury stock
method, and (iii) the shares we are contractually obligated to issue associated with the Ask Jeeves Notes, if
converted, and other stock-based commitments.
For the year ended December 31, 2004, we computed diluted earnings per share using (i) the number of
shares of common stock and Class B common stock used in the basic earnings per share calculation as
indicated above, and (ii) if dilutive, the incremental common stock that we would issue upon exercise of
potentially dilutive stock-based commitments if the terms of the agreement under which the commitments
were issued obligate us to issue the instrument as of the Spin-Off. Some of the stock warrant agreements meet
this requirement, but options to purchase common stock and other potentially dilutive items do not. Warrants
meeting this requirement were included in our diluted earnings per share calculation for the year ended
December 31, 2004, based on the number of days they were outstanding at Spin-Off. We treated all other
securities as if they were granted as of the Spin-Off.
The following table presents our basic and diluted earnings per share:
2006 2005 2004
Year Ended December 31,
(In thousands, except per share data)
Net income ....................................... $244,934 $228,730 $163,473
Net earnings per share available to common stockholders:
Basic ............................................ $ 0.72 $ 0.68 $ 0.49
Diluted .......................................... 0.70 0.65 0.48
Weighted average number of shares outstanding:
Basic ............................................ 338,047 336,819 335,540
Dilutive effect of:
Options to purchase common stock .................... 7,744 5,568 —
Warrants to purchase common stock ................... 3,600 5,007 5,009
Other dilutive securities ............................ 2,790 2,136 —
Diluted .......................................... 352,181 349,530 340,549
NOTE 13 — Other Income (Expense)
Other, net
The following table presents the components of other, net:
2006 2005 2004
For the Year Ended December 31,
(In thousands)
Unrealized gain (loss) on derivative instruments, net ............ $ 8,137 $(6,042) $ —
Foreign exchange rate gains (losses), net ..................... 10,367 (638) (7,540)
Equity income from unconsolidated affiliates .................. 2,541 1,668 175
Other ............................................... (2,275) (3,416) (1,921)
Total Other, net ...................................... $18,770 $(8,428) $(9,286)
F-31
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)