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Stockholders' Equity
 9 Months Ended
Sep. 30, 2012
Stockholders' Equity

Note 6 – Stockholders’ Equity

Dividends on our Common Stock

The Executive Committee, acting on behalf of the Board of Directors, declared the following dividends during the periods presented, which have been adjusted for the one-for-two reverse stock split in December 2011:

 

Declaration Date

    Dividend
Per Share		      Record Date      Total Amount
(in thousands)		      Payment Date  

Nine months ended September 30, 2012:

            
February 9, 2012    $ 0.09         March 12, 2012       $ 12,204         March 30, 2012   
April 25, 2012      0.09         May 30, 2012         12,205         June 19, 2012   
July 25, 2012      0.13         August 28, 2012         18,061         September 18, 2012   

Nine months ended September 30, 2011:

  

         
February 9, 2011    $ 0.14         March 11, 2011       $ 19,352         March 31, 2011   
April 27, 2011      0.14         May 27, 2011         19,232         June 17, 2011   
July 26, 2011      0.14         August 26, 2011         19,148         September 16, 2011   

In addition, on October 24, 2012, the Executive Committee, acting on behalf of the Board of Directors, declared a quarterly cash dividend of $0.13 per share of outstanding common stock payable on December 7, 2012 to stockholders of record as of the close of business on November 16, 2012. Future declarations of dividends are subject to final determination of our Board of Directors.

Share Repurchases

In 2010, 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. On April 25, 2012, the Executive Committee, acting on behalf of the Board of Directors, authorized an additional repurchase of up to 20 million outstanding shares of our common stock. During the first nine months of 2012, we repurchased, through open market transactions, 9.9 million shares available under the authorizations for a total cost of $351 million, excluding transaction costs, representing an average repurchase price of $35.60 per share. As of September 30, 2012, 18.9 million shares remain authorized for repurchase under the April 2012 authorization with no fixed termination date for the repurchases. Subsequent to the end of the third quarter of 2012, we repurchased an additional 0.8 million shares for a total cost of $46 million, excluding transaction costs, representing an average purchase price of $55.36 per share.

 

Stock-based Awards

During second quarter of 2012, we issued 7.3 million shares of Expedia, Inc. common stock as a result of the exercise of 30 million privately held warrants at a weighted average exercise price of $23.98 for total proceeds to the Company of approximately $175 million. As of September 30, 2012, we did not have any warrants outstanding.

Noncontrolling Interest

During the nine months ended September 30, 2012, there were no significant ownership interest changes in noncontrolling interest. In May 2011, we acquired additional 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. The following table shows the effects of the changes in noncontrolling interest for the nine months ended September 30, 2011, in thousands:

 

     Nine months ended
September 30,
2011		  

Net income attributable to Expedia, Inc.

    $ 401,966   

Transfers (to) from the noncontrolling interest due to:

   

Net increase in Expedia, Inc.’s paid-in capital for newly issued eLong shares (1)

      25,957   
  

 

 

  

Net transfers from noncontrolling interest

      25,957   
  

 

 

  

Change from net income attributable to Expedia, Inc. and transfers from noncontrolling interest

    $ 427,923   
  

 

 

  

 

(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 September 30, 2012, our ownership interest in eLong was approximately 67%.