Expedia 2009 Annual Report Download - page 103

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Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)
NOTE 11 — Earnings Per Share
Basic Earnings Per Share
Basic earnings per share was calculated for the years ended December 31, 2009, 2008 and 2007 using the
weighted average number of common and Class B common shares outstanding during the period excluding
restricted stock and stock held in escrow. As of December 31, 2009 and 2008, we had 751 shares of preferred
stock outstanding, the impact of which on our earnings per share calculation is immaterial.
Diluted Earnings Per Share
For the years ended December 31, 2009, 2008 and 2007, 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 (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 RSUs using the treasury stock method,
and (iii) other stock-based commitments.
The following table presents our basic and diluted net income (loss) per share:
Year Ended December 31,
2009 2008 2007
(In thousands, except per share data)
Net income (loss) attributable to Expedia, Inc. .......... $299,526 $(2,517,763) $295,864
Earnings per share attributable to Expedia, Inc. available
to common stockholders:
Basic ............................................. $ 1.04 $ (8.80) $ 1.00
Diluted ........................................... 1.03 (8.80) 0.94
Weighted average number of shares outstanding:
Basic ............................................. 288,214 286,167 296,640
Dilutive effect of:
Options to purchase common stock ................... 2,842 — 7,384
Warrants to purchase common stock .................. 92 — 7,574
Other dilutive securities ............................ 993 — 2,635
Diluted ........................................... 292,141 286,167 314,233
As we recorded a net loss for 2008, we have revised our diluted earnings per share amounts for that period
to exclude the impacts of common stock equivalents, as they are antidilutive. Thus, basic and diluted earnings per
share for 2008 are equal.
The earnings per share amounts are the same for common stock and Class B common stock because the
holders of each class are legally entitled to equal per share distributions whether through dividends or in
liquidation.
NOTE 12 — Restructuring Charges
In conjunction with the reorganization of our business around our global brands, and the resulting
centralization of locations and brand management, marketing and administrative personnel as well as certain
customer operations centers, we recognized $34 million in restructuring charges during the year ended
December 31, 2009. Restructuring charges related to our brand reorganization were substantially completed by
the end of 2009.
F-31