Expedia 2009 Annual Report Download - page 102

Download and view the complete annual report

Please find page 102 of the 2009 Expedia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)
Preferred Stock
Our preferred stock has a face value of $22.23 per share; each share is entitled to an annual dividend of
1.99%. Each preferred stockholder is entitled to two votes per share. Preferred stockholders may, at certain times
through 2017, elect to have their shares redeemed or elect to convert their shares into common stock based upon
formulas described in the related Certificate of Designations of Series A Cumulative Convertible Preferred Stock
of Expedia, Inc. Beginning February 4, 2012, we may redeem the preferred stock for cash or common stock. On
February 4, 2022, all outstanding shares of preferred stock automatically convert into common stock.
Share Repurchases
During 2007, we completed two tender offers pursuant to which we acquired 30 million tendered shares of
our common stock at a purchase price of $22.00 per share and 25 million tendered shares of our common stock at
$29.00 per share, for a total cost of $1.4 billion plus fees and expenses relating to the tender offers.
We currently have authorization, for which there is no fixed termination date, from our Board of Directors
to repurchase up to 20 million outstanding shares of our common stock; no such repurchases have been made
under this authorization as of February 11, 2010. The number of shares we may repurchase under this
authorization is subject to certain of our debt covenants.
Dividends on our Common Stock
On February 10, 2010, the Executive Committee, acting on behalf of the Board of Directors, declared a
quarterly cash dividend of $0.07 per share of outstanding common stock, the first dividend in our history. Future
declarations of dividends are subject to final determination of our Board of Directors.
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss), net of tax for 2009 and 2008 is comprised of accumulated
foreign currency translation adjustments.
Other Comprehensive Income (Loss)
The following table presents the changes in the components of other comprehensive income (loss), net of tax:
For the Year Ended December 31,
2009 2008 2007
(In thousands)
Net income (loss) ................................... $303,623 $(2,520,670) $293,870
Other comprehensive income (loss)
Currency translation adjustments ..................... 19,635 (36,088) 16,768
Unrealized gains (losses) on derivatives, net of taxes:
Unrealized holding gains (losses), net of tax effect of
$(2,058) in 2008 and $2,078 in 2007 .............. — 3,614 (5,545)
Less: reclassification adjustment for net (gains) losses
recognized during the period, net of tax effect of
$2,255 in 2008 and $(3,210) in 2007 .............. — (3,953) 8,563
Comprehensive income (loss) ......................... 323,258 (2,557,097) 313,656
Less: Comprehensive income attributable to
non-controlling interests ....................... (4,351) (364) (2,571)
Comprehensive income (loss) attributable to Expedia, Inc. . . $318,907 $(2,557,461) $311,085
F-30