Expedia 2013 Annual Report Download - page 117

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Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income, net of tax for 2013 and 2012 is primarily comprised of
accumulated foreign currency translation adjustments.
Net gains and losses recognized and reclassified out of accumulated other comprehensive income were
immaterial during 2013, 2012 and 2011.
Noncontrolling Interests
In the second quarter of 2011, we acquired newly issued shares of eLong for $41 million and, at the same
time, Tencent Holdings Limited also acquired approximately 16% of the outstanding shares of eLong for $84
million. In the fourth quarter of 2011, we acquired additional shares of eLong from external third parties for $93
million.
Amounts paid in excess of the respective noncontrolling interests were recorded to additional paid-in
capital. The following table shows the effects of the changes in noncontrolling interest on our equity for the
respective periods, in thousands:
2013 2012 2011
Net income attributable to Expedia, Inc. $232,850 $280,171 $472,294
Transfers (to) from the noncontrolling interest
due to:
Net increase in Expedia, Inc.’s paid-in
capital for newly issued eLong shares(1)
and other equity activity 6,928 2,077 25,957
Net decrease in Expedia, Inc.’s paid-in
capital for purchase of outstanding shares
of eLong — — (59,070)
Net transfers from noncontrolling
interest 6,928 2,077 (33,113)
Change from net income attributable to Expedia,
Inc. and transfers from noncontrolling interest $239,778 $282,248 $439,181
(1) Primarily due to our acquisition of 5.4 million newly issued shares of eLong and, at the same time, Tencent
Holdings Limited acquisition of 11.1 million newly issued shares of eLong in the second quarter of 2011.
As of December 31, 2013 and 2012, our ownership interest in eLong was approximately 65% and 67%.
NOTE 14 — Earnings Per Share
Basic Earnings Per Share
Basic earnings per share was calculated for the years ended December 31, 2013, 2012 and 2011 using the
weighted average number of common and Class B common shares outstanding during the period excluding
restricted stock and stock held in escrow.
Diluted Earnings Per Share
For the years ended December 31, 2013, 2012 and 2011, we computed diluted earnings per share using
(i) the number of shares of common stock and Class B common stock used in the basic earnings per share
calculation as indicated above (ii) if dilutive, the incremental common stock that we would issue upon the
assumed exercise of stock options and stock warrants and the vesting of RSUs using the treasury stock method,
and (iii) other stock-based commitments.
F-35