Expedia 2009 Annual Report Download - page 98

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Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)
Cash received from stock-based award exercises for the years ended December 31, 2009 and 2008 was
$16 million and $6 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, 2009 and 2008 associated with the
exercise of IAC and Expedia stock-based awards held by our employees were $10 million and $19 million, of
which we recorded less than $1 million in 2009 and approximately $2 million in 2008 as a reduction of goodwill.
As of December 31, 2009, there was approximately $98 million of unrecognized stock-based compensation
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 2.67 years.
We have fully vested stock warrants with expiration dates through May 2012 outstanding. Each stock
warrant is exercisable for a certain number of shares of our common stock or a fraction thereof. We also had
certain warrants which were traded on the NASDAQ under the symbols “EXPEW” and “EXPEZ” until their
expiration on February 4, 2009.
The following table presents a summary of our stock warrants (equivalent shares) from December 31, 2008
through December 31, 2009:
Expiration Date
Outstanding
Warrants at
December 31,
2008 Exercised Cancelled
Outstanding
Warrants at
December 31,
2009
Weighted
Average
Exercise
Price
(In thousands, except per warrant data)
May 2012 ..................... 16,094 — — 16,094 $25.56
February 2009 ................. 7,295 — (7,295) — —
February 2009 ................. 11,080 — (11,080) — —
November 2009 to May 2010 ..... 163 (122) (38) 3 13.75
34,632 (122) (18,413) 16,097
NOTE 9 — Income Taxes
The following table presents a summary of our U.S. and foreign income (loss) before income taxes:
Year Ended December 31,
2009 2008 2007
(In thousands)
U.S .............................................. $431,599 $(2,442,297) $500,624
Foreign ........................................... 26,424 (72,407) (3,640)
Total ............................................. $458,023 $(2,514,704) $496,984
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