Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Stockholders' Equity

NOTE 13 — Stockholders’ Equity

Common Stock and Class B Common Stock

Our authorized common stock consists of 1.6 billion shares of common stock with par value of $0.0001 per share, and 400 million shares of Class B common stock with par value of $0.0001 per share. Both classes of common stock qualify for and share equally in dividends, if declared by our Board of Directors, and generally vote together on all matters. Common stock is entitled to 1 vote per share and Class B common stock is entitled to 10 votes per share. Holders of common stock, voting as a single, separate class are entitled to elect 25% of the total number of directors. Class B common stockholders may, at any time, convert their shares into common stock, on a one for one share basis. Upon conversion, the Class B common stock is retired and is not available for reissue. In the event of liquidation, dissolution, distribution of assets or winding-up of Expedia, Inc., the holders of both classes of common stock have equal rights to receive all the assets of Expedia, Inc. after the rights of the holders of the preferred stock, if any, have been satisfied.

Preferred Stock

As of December 31, 2016 and 2015, we have no preferred stock outstanding.

Share Repurchases

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 and during 2015 authorized a repurchase of up to 10 million shares of our common stock for a total of 70 million shares. Shares repurchased under the authorized programs were as follows:

	Year Ended December 31,
	2016		2015		2014
Number of shares repurchased	4.0 million		0.5 million		7.0 million
Average price per share	$	109.64	$	85.27	$	76.26
Total cost of repurchases (in millions)(1)	$	436	$	45	$	537

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(1) Amount excludes transaction costs.

As of December 31, 2016, 7.3 million shares remain authorized for repurchase under the 2015 authorization with no fixed termination date for the repurchases. Subsequent to December 31, 2016, we repurchased an additional 0.3 million shares for a total cost of $30 million, excluding transaction costs, representing an average price of $113.42 per share.

Dividends on our Common Stock

In 2016, 2015 and 2014, the Executive Committee, acting on behalf of the Board of Directors, declared and paid the following dividends:

	Declaration Date	Dividend Per Share		Record Date	Total Amount (in  thousands)		Payment Date
Year ended December 31, 2016:
	February 8, 2016	$	0.24	March 10, 2016	$	36,174	March 30, 2016
	April 26, 2016	0.24		May 26, 2016	35,773		June 16, 2016
	July 27, 2016	0.26		August 25, 2016	39,062		September 15, 2016
	October 24, 2016	0.26		November 17, 2016	39,150		December 8, 2016
Year ended December 31, 2015:
	February 4, 2015	$	0.18	March 10, 2015	$	22,895	March 26, 2015
	April 29, 2015	0.18		May 28, 2015	23,096		June 18, 2015
	July 29, 2015	0.24		August 27, 2015	31,182		September 17, 2015
	October 29, 2015	0.24		November 19, 2015	31,354		December 10, 2015
Year ended December 31, 2014:
	February 5, 2014	$	0.15	March 10, 2014	$	19,602	March 27, 2014
	April 30, 2014	0.15		May 30, 2014	19,231		June 19, 2014
	July 30, 2014	0.18		August 27, 2014	22,944		September 17, 2014
	October 27, 2014	0.18		November 20, 2014	22,920		December 11, 2014

In addition, in February 2017, the Executive Committee, acting on behalf of the Board of Directors, declared a quarterly cash dividend of $0.28 per share of outstanding common stock payable on March 30, 2017 to the stockholders of record as of the close of business on March 9, 2017. Future declarations of dividends are subject to final determination by our Board of Directors.

Accumulated Other Comprehensive Income (Loss)

The balance for each class of accumulated other comprehensive loss as of December 31, 2016 and 2015 is as follows:

	December 31,
	2016			2015
	(In thousands)
Foreign currency translation adjustments, net of tax(1)	$	(280,426	)	$	(284,767	)
Net unrealized gain (loss) on available for sale securities, net of tax	27			(127		)
Accumulated other comprehensive loss	$	(280,399	)	$	(284,894	)

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(1) Foreign currency translation adjustments, net of tax, includes foreign currency transaction gains at December 31, 2016 of $16 million ($25 million before tax) and foreign currency transaction losses at December 31, 2015 of $1 million ($2 million before tax) associated with our 2.5% Notes. The 2.5% Notes are Euro-denominated debt designated as hedges of certain of our Euro-denominated net assets. See NOTE 2 — Significant Accounting Policies for more information. The remaining balance in currency translation adjustments excludes income taxes as a result of our current intention to indefinitely reinvest the earnings of our international subsidiaries outside of the United States.

Non-redeemable Non-controlling Interests

As of December 31, 2016 and 2015, our ownership interest in AirAsia-Expedia was approximately 75%. As of December 31, 2016, our ownership interest in trivago was approximately 59.7%. Prior to our sale of eLong on May 22, 2015, our ownership interest in eLong was approximately 62.4%. Amounts paid in excess of the respective non-controlling interest were recorded to additional paid-in capital. The following table shows the effects of the changes in non-controlling interest on our equity for the respective periods, in thousands:

	2016			2015			2014
Net income attributable to Expedia, Inc.	$	281,848		$	764,465		$	398,097
Transfers (to) from the non-controlling interest due to:
Net decrease in Expedia, Inc.’s paid-in capital related to trivago IPO	(32,141		)	—			—
Net increase (decrease) in Expedia, Inc.’s paid-in capital for newly issued eLong shares and other equity activity	—			(4,198		)	24,090
Net transfers from non-controlling interest	(32,141		)	(4,198		)	24,090
Change from net income attributable to Expedia, Inc. and transfers from non-controlling interest	$	249,707		$	760,267		$	422,187