Expedia 2008 Annual Report Download - page 98

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The following table presents a summary of our stock warrants (equivalent shares) from December 31,
2007 through December 31, 2008:
Expiration Date
Weighted
Average
Exercise
Price
Outstanding
Warrants at
December 31,
2007 Exercised Cancelled
Outstanding
Warrants at
December 31,
2008
(In thousands, except per warrant data)
May 2012 .................... $25.56 16,094 — — 16,094
February 2009 ................. 31.22 7,295 — — 7,295
February 2009 ................. 11.93 11,085 (5) — 11,080
November 2009 to May 2010...... 13.23 163 — — 163
34,637 (5) — 34,632
The following table presents a summary of our stock option activity:
Options
Weighted
Average
Exercise Price
Remaining
Contractual Life
Aggregate
Intrinsic Value
(In thousands) (In years) (In thousands)
Balance as of January 1, 2006 ..... 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
Granted ...................... 1,275 8.14
Exercised..................... (618) 10.14
Cancelled .................... (498) 29.14
Balance as of December 31, 2008 . . 9,834 23.29 4.8 $1,273
Exercisable as of December 31,
2008 ...................... 4,759 20.29 2.2 858
Vested and expected to vest after
December 31, 2008 ........... 9,427 23.94 4.6 1,136
During 2008, we also granted stock options to certain key employees. The fair value of stock options
granted during the year ended December 31, 2008 was estimated at the date of grant using the Black-Scholes
option pricing model, assuming no dividends and the following weighted average assumptions:
Risk-free interest rate ..................................................... 2.18%
Expected volatility ....................................................... 45.63%
Expected life (in years) ................................................... 4.54
Weighted-average estimated fair value of options granted during the year .............. $ 3.38
The aggregate intrinsic value of outstanding options shown in the table above represents the total pretax
intrinsic value at December 31, 2008, based on our closing stock price of $8.24 as of the last trading date. The
total intrinsic value of stock options exercised was $7 million, $299 million and $35 million for the years
ended December 31, 2008, 2007 and 2006.
F-26
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)