Expedia 2009 Annual Report Download - page 104

Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)
The following table summarizes the restructuring activity for the year ended December 31, 2009:
Employee
Severance and
Benefits Other Total
(In thousands)
Accrued liability as of January 1, 2009 ................... $ — $ — $ —
Charges ............................................ 31,018 3,150 34,168
Payments ........................................... (11,859) (1,203) (13,062)
Non-cash items ...................................... (103) (629) (732)
Accrued liability as of December 31, 2009 ................ $19,056 $ 1,318 $ 20,374
NOTE 13 — Other Income (Expense)
Other, net
The following table presents the components of other, net:
For the Year Ended December 31,
2009 2008 2007
(In thousands)
Foreign exchange rate losses, net .......................... $(29,900) $(47,129) $(22,047)
Equity gain (loss) of unconsolidated affiliates ................ 1,185 (979) (2,614)
Noncontrolling investment basis adjustment ................. (5,158) — —
Gain (loss) on derivative instruments assumed at Spin-Off ..... (38) 4,600 (5,748)
Federal excise tax refunds ............................... — — 12,058
Other ................................................ (1,453) (670) (256)
Total .............................................. $(35,364) $(44,178) $(18,607)
In 2009, in conjunction with the acquisition of additional interest in one of our equity method investments,
we remeasured our previously held equity interest to fair value and recognized the resulting loss of $5 million.
In 2008, in connection with the closing of an acquisition and the related holding of euros to economically
hedge the purchase price, we recognized a net loss of $21 million, included in foreign exchange rate losses, net.
As a result of the Spin-Off, we assumed certain obligations of IAC related to IAC’s Ask Jeeves Notes.
When holders of the Ask Jeeves Notes converted their notes, they received shares of both IAC and Expedia
common stock. Under the terms of the Spin-Off, we were obligated to issue shares of our common stock to IAC
for delivery to the holders of the Ask Jeeves Notes, or pay cash in equal value, in lieu of issuing such shares, at
our option. This obligation represented a derivative liability on our consolidated balance sheet because it was not
indexed solely to shares of our common stock. We recorded the fair value of this derivative obligation on our
consolidated balance sheets with any changes in fair value recorded in our consolidated statements of operations
in other, net. The estimated fair value of this liability fluctuated primarily based on changes in the price of our
common stock. In 2008, the remainder of these notes converted and we released approximately 0.5 million shares
of our common stock with a fair value of $11 million to satisfy the final conversion requirements. In 2008 and
2007, we recognized net gains (losses) of $4 million and $(5) million related to these Ask Jeeves Notes. As of
June 1, 2008, we had no further obligations related to the Ask Jeeves Notes.
In 2007, we recorded refunds based on notification from the IRS totaling $15 million related to Federal
Excise Tax (“FET”) taxes remitted to the IRS but not collected from customers for airline ticket sales by one of
our subsidiaries in the third quarter of 2001 through the third quarter of 2004, plus accrued interest thereon. We
recorded $3 million to revenue as that amount relates to taxes remitted on airline ticket sales subsequent to our
F-32