Expedia 2007 Annual Report Download - page 90

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The following table presents a summary of our stock option transactions from August 9, 2005 through
December 31, 2007:
Options
Weighted
Average
Exercise Price
Remaining
Contractual Life
Aggregate
Intrinsic Value
(In thousands) (In years) (In thousands)
Granted at Spin-Off, based on
conversions from IAC options ...... 41,097 $12.87
Exercised ....................... (12,540) 5.79
Cancelled ....................... (851) 24.62
Balance as of December 31, 2005 ..... 27,706 15.71
Exercised ....................... (3,657) 9.41
Cancelled ....................... (916) 20.38
Balance as of December 31, 2006 ..... 23,133 16.52
Exercised ....................... (13,242) 10.30
Cancelled ....................... (216) 29.61
Balance as of December 31, 2007 ..... 9,675 24.74 4.8 $80,619
Exercisable as of December 31, 2007. . . 5,875 19.97 3.0 73,107
The aggregate intrinsic value of outstanding options shown in the table above represents the total pretax
intrinsic value at December 31, 2007, based on our closing stock price of $31.62 as of the last trading date.
The total intrinsic value of stock options exercised was $299.4 million, $34.7 million and $213.2 million for
the years ended December 31, 2007, 2006 and 2005. Since the Spin-off on August 9, 2005, we have not
granted options. The expected to vest balance as of December 31, 2007 is equal to the outstanding balance at
that date.
The following table presents a summary of our stock options outstanding and exercisable at December 31,
2007:
Range of Exercise Prices Shares
Weighted-
Average
Price Per Share
Remaining
Contractual
Life Shares
Weighted-
Average
Exercise Price
Options Outstanding Options Exercisable
(In thousands) (In years) (In thousands)
$ 0.01 - $5.00 268 $ 3.53 3.8 268 $ 3.53
5.01 - 8.00 44 6.45 1.5 44 6.45
8.01 - 12.00 749 9.99 1.7 749 9.99
12.01 - 18.00 1,099 14.63 4.2 1,099 14.63
18.01 - 25.00 2,732 21.41 2.7 2,732 21.41
25.01 - 35.00 2,812 28.38 7.1 412 27.71
35.01 - 45.00 1,935 38.07 6.0 535 37.34
45.01 - 97.00 36 73.27 2.0 36 73.27
0.01 - 97.00 9,675 24.74 4.8 5,875 19.97
In 2007, 2006 and 2005, we recognized stock-based compensation expense of $62.8 million, $80.3 million
and $91.7 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
F-24
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)