Expedia 2012 Annual Report Download - page 70

During 2012, 2010, and 2006, our Board of Directors, or the Executive Committee, acting on behalf of the
Board of Directors, authorized a repurchase of up to 20 million outstanding shares of our common stock during
each of the respective years for a total of 60 million shares. Shares repurchased under the authorized programs
were as follows:
Year ended December 31,
2012 2011(1) 2010(2)
Number of shares repurchased 10.7 million 10.6 million 20.6 million
Average price per share $ 37.15 $ 26.60 $ 23.71
Total cost of repurchases (in millions)(3) $ 397 $ 283 $ 489
(1) On a reverse split adjusted basis the number of shares repurchased was 5.3 million for $53.20 per share.
(2) On a reverse split adjusted basis the number of shares repurchased was 10.3 million for $47.42 per share.
(3) Amount excludes transaction costs.
As of December 31, 2012, 18.1 million shares remain authorized for repurchase under the 2012
authorization with no fixed termination date for the repurchases. No additional repurchases have been made
under this authorization through February 5, 2013.
Our annual common stock dividend was $0.96 per share for 2012, including the special cash dividend of
$0.52 per share declared and paid in December 2012, and $0.56 per share for 2011 and 2010, which has been
adjusted for the one-for-two reverse stock split on December 20, 2011. See Note 12 — Stockholders Equity in
the notes to consolidated financial statements for a detail of the quarterly dividend payments by year. In addition,
on February 4, 2013, the Executive Committee, acting on behalf of the Board of Directors, declared a quarterly
cash dividend of $0.13 per share of outstanding common stock payable on March 28, 2013 to the stockholders of
record as of the close of business on March 11, 2013. Future declarations of dividends are subject to final
determination by our Board of Directors.
During 2012, we issued 8.0 million shares of Expedia, Inc. common stock as a result of the exercise of
32 million privately held warrants at a weighted average exercise price of $23.91 for total proceeds to the
Company of approximately $191 million. As of December 31, 2012, we did not have any warrants outstanding.
The effect of foreign exchange on our cash balances denominated in foreign currency in 2012 showed a net
change of $33 million reflecting higher foreign-denominated cash balances in the current year and appreciation
in currencies. The effect of foreign exchange on our cash balances denominated in foreign currency in 2011
showed a net increase of $2 million.
In connection with various occupancy and other tax audits and assessments, certain jurisdictions may assert
that tax payers are required to pay any assessed taxes prior to being allowed to contest or litigate the applicability
of the ordinances, which is referred to as “pay to play.” These jurisdictions may also attempt to require that we
pay any assessed taxes prior to being allowed to contest or litigate the applicability of similar tax ordinances.
Payment of these amounts is not an admission that we believe we are subject to such taxes and, even when such
payments are made, we will continue to defend our position vigorously. During the year ended December 31,
2012, we accrued $110 million related to general excise tax assessments in Hawaii. If, and when, the total
amounts accrued are paid it will be to the detriment of operating cash flows.
In our opinion, available cash, funds from operations and available borrowings will provide sufficient
capital resources to meet our foreseeable liquidity needs. There can be no assurance, however, that the cost of
availability of future borrowings, including refinancing, if any, will be available on terms acceptable to us.
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