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Earnings Per Share
 12 Months Ended
Dec. 31, 2011
Earnings Per Share [Abstract]  
Earnings Per Share

NOTE 13 — Earnings Per Share

Basic Earnings Per Share

Basic earnings per share was calculated for the years ended December 31, 2011, 2010 and 2009 using the weighted average number of common and Class B common shares outstanding during the period excluding restricted stock and stock held in escrow. As of December 31, 2010, we had 751 shares of preferred stock outstanding, the impact of which on our earnings per share calculation was immaterial.

Diluted Earnings Per Share

For the years ended December 31, 2011, 2010 and 2009, 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.

 

All share information has been adjusted to reflect Expedia's one-for-two reverse stock split in December 2011. The following table presents our basic and diluted earnings per share:

 

     Year Ended December 31,  
     2011      2010      2009  
     (In thousands, except per share data)  

Income from continuing operations attributable to Expedia, Inc.

    $ 324,146       $ 301,615       $ 213,965   

Earnings per share from continuing operations attributable to Expedia, Inc. available to common stockholders:

         

Basic

    $ 2.39       $ 2.14       $ 1.48   

Diluted

      2.34         2.09         1.46   

Weighted average number of shares outstanding:

         

Basic

      135,888         141,233         144,107   

Dilutive effect of:

         

Options to purchase common stock

      1,766         2,046         1,421   

Warrants to purchase common stock

      605         147         46   

Other dilutive securities

      443         588         497   
  

 

 

     

 

 

     

 

 

  

Diluted

      138,702         144,014         146,071   
  

 

 

     

 

 

     

 

 

  

The earnings per share amounts are the same for common stock and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation.