Expedia 2012 Annual Report Download - page 110

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The following table presents a summary of RSU activity:
RSUs (1)
Weighted Average
Grant-Date Fair
Value (1)
(In thousands)
Balance as of January 1, 2010 3,283 $39.00
Granted 263 52.42
Vested and released (950) 34.58
Cancelled (279) 41.76
Balance as of December 31, 2010 2,317 40.24
Granted 221 52.35
Vested and released (832) 39.32
Cancelled (137) 41.98
Adjustments due to the spin-off (2) 725
Vested and released—post spin-off (12) 13.45
Balance as of December 31, 2011 (3) 2,282 21.47
Granted 602 32.07
Vested and released (1,382) 21.02
Cancelled (284) 22.82
Balance as of December 31, 2012 1,218 29.57
(1) Reflects the one-for-two reverse stock split on December 20, 2011.
(2) Reflects the equitable adjustment to the number of unvested RSUs necessary to maintain the fair value of
those awards immediately prior to and following the spin-off.
(3) Outstanding RSUs as of December 31, 2011 represent RSUs outstanding after giving effect to one-for-two
reverse stock split and spin-off adjustments made in order to maintain the fair value of those awards
immediately prior to and immediately following the transaction.
The total market value of shares vested and released during the years ended December 31, 2012, 2011 and
2010 was $62 million, $37 million and $43 million. Included in RSUs outstanding at December 31, 2011 were
400,000 of RSUs awarded to our Chief Executive Officer, for which vesting was tied to achievement of
performance targets. These awards vested and released during 2012.
In 2012, 2011 and 2010, we recognized total stock-based compensation expense of $65 million, $64 million
and $53 million. The total income tax benefit related to stock-based compensation expense was $9 million,
$12 million and $15 million for 2012, 2011 and 2010.
Cash received from stock-based award exercises for the years ended December 31, 2012 and 2011 was
$50 million and $34 million. Our employees that held IAC vested stock options prior to the IAC/InterActiveCorp
(“IAC”) spin-off in August 2005 received vested stock options in both Expedia and IAC. In addition, our
employees that held vested Expedia options prior to the TripAdvisor spin-off on December 20, 2011 received
vested stock options in both Expedia and TripAdvisor. As these IAC and TripAdvisor stock options are
exercised, we receive a tax deduction. Total current income tax benefits during the years ended December 31,
2012 and 2011 associated with the exercise of IAC, TripAdvisor and Expedia stock-based awards held by our
employees were $64 million and $21 million.
As of December 31, 2012, there was approximately $100 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 2.47 years.
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