Expedia 2008 Annual Report Download - page 99

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The following table presents a summary of our stock options outstanding and exercisable at December 31,
2008:
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 - $5.00 184 $ 3.77 3.8 184 $ 3.77
5.01 - 8.00 668 7.58 9.7 18 6.25
8.01 - 12.00 947 9.06 7.1 322 9.80
12.01 - 18.00 911 14.76 3.1 911 14.76
18.01 - 25.00 2,691 21.40 1.7 2,691 21.40
25.01 - 35.00 2,768 28.39 6.1 368 27.77
35.01 - 45.00 1,632 38.34 5.7 232 38.28
45.01 - 97.00 33 73.49 1.0 33 73.49
0.01 - 97.00 9,834 23.29 4.8 4,759 20.29
In 2008, 2007 and 2006, we recognized stock-based compensation expense of $61 million, $63 million
and $80 million. The total income tax benefit related to stock-based compensation expense was $21 million,
$22 million and $27 million for 2008, 2007 and 2006.
Cash received from stock-based award exercises for the years ended December 31, 2008 and 2007 was
$6 million and $55 million. Our employees that held IAC 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 during the years ended December 31, 2008 and 2007 associated
with the exercise of IAC and Expedia stock-based awards held by our employees were $19 million and
$121 million, of which we recorded approximately $2 million and $9 million as a reduction of goodwill.
In the fourth quarter of 2007, our Chairman and Senior Executive exercised options to purchase
9.5 million shares. 2.3 million shares were withheld and concurrently cancelled by the Company to cover the
exercise price of $8.59 per share and 3.5 million shares were withheld and concurrently cancelled to cover tax
obligations, with a net delivery of 3.7 million shares.
As of December 31, 2008, there was approximately $131 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 3.21 years.
NOTE 10 — Income Taxes
The following table presents a summary of our U.S. and foreign income (loss) before income taxes and
minority interest:
2008 2007 2006
Year Ended December 31,
(In thousands)
U.S. .......................................... $(2,442,297) $500,624 $388,588
Foreign ........................................ (72,407) (3,640) (3,690)
Total .......................................... $(2,514,704) $496,984 $384,898
F-27
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)