Expedia 2013 Annual Report Download - page 111

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The total market value of shares vested and released during the years ended December 31, 2013, 2012 and
2011 was $29 million, $62 million, and $37 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 2013, 2012 and 2011, we recognized total stock-based compensation expense of $130 million,
$65 million, and $64 million. The total income tax benefit related to stock-based compensation expense was $17
million, $19 million, and $12 million for 2013, 2012 and 2011.
Cash received from stock-based award exercises for the years ended December 31, 2013 and 2012 was
$57 million and $50 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,
2013 and 2012 associated with the exercise of IAC, TripAdvisor and Expedia stock-based awards held by our
employees were $52 million and $64 million.
As of December 31, 2013, there was approximately $146 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 2.82 years.
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, 2013, we did not have any warrants outstanding.
Employee Stock Purchase Plan
During 2013, we announced and implemented our 2013 Employee Stock Purchase Plan (“ESPP”), which
allows shares of our common stock to be purchased by eligible employees at three-month intervals at 85% of the
fair market value of the stock on the last day of each three-month period. Eligible employees are allowed to
contribute up to 10% of their base compensation. During 2013, approximately 69,000 shares were purchased
under this plan for an average price of $46.31 per share. As of December 31, 2013, we have reserved
approximately 1.4 million shares of our common stock for issuance under the ESPP.
NOTE 11 — Income Taxes
The following table summarizes our U.S. and foreign income (loss) from continuing operations before
income taxes:
Year Ended December 31,
2013 2012 2011
(In thousands)
U.S. $ 26,888 $ (20,097) $112,210
Foreign 273,805 370,154 289,862
Total $300,693 $350,057 $402,072
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