Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share

NOTE 13 — Earnings Per Share

Basic Earnings Per Share

Basic earnings per share was calculated for the years ended December 31, 2012, 2011 and 2010 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, 2012, 2011 and 2010, 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 2011 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,
	2012		2011		2010
	(In thousands, except per share data)
Income from continuing operations attributable to Expedia, Inc.	$	302,710	$	324,146	$	301,615
Earnings per share from continuing operations attributable to Expedia, Inc. available to common stockholders:
Basic	$	2.26	$	2.39	$	2.14
Diluted		2.16		2.34		2.09
Weighted average number of shares outstanding:
Basic		134,203		135,888		141,233
Dilutive effect of:
Options to purchase common stock		4,383		1,766		2,046
Warrants to purchase common stock		800		605		147
Other dilutive securities		543		443		588
Diluted		139,929		138,702		144,014

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.