Metric

Transactions (mm)

Gross bookings

Revenue

Revenue margin

Operating income before amortization* (“OIBA”)

Operating income

Adjusted net income *

Net income attributable to Expedia, Inc.

Adjusted EPS *

Diluted EPS

Free cash flow *

Gross bookings from Expedia, Inc.’s international businesses were $2.2 billion in the second quarter, accounting for 33% of worldwide bookings, up from 31% in the prior year period. International revenues were $301 million, representing 36% of worldwide revenue, consistent with the prior year period. EMEA represents roughly one fourth and APAC approximately 5% of Expedia, Inc.’s worldwide business.

TripAdvisor^® extended its European presence with the acquisition of Holiday Lettings™, the U.K.’s number one independent vacation rental site.

Hotels.com^® launched its WelcomeRewards™ loyalty program in the U.K., enabling Hotels.co.uk customers to earn one free night for every 10 nights stayed at more than 65,000 properties around the world.

Expedia.co.jp signed a partnership agreement with Japan’s third-largest travel agency Hankyu, giving visitors to Hankyu’s web site access to Expedia Japan’s international hotel inventory.

Expedia.com kicked off its annual summer sale in May, marking the largest ever promotion in company history with more than 7,400 participating hotels, an increase of 48% over 2009. Hotels.com also launched its first ever full summer sale, with more than 5,000 participating properties, including 600 exclusive deals. Venere.com also launched its first summer sale.

Expedia.com^® introduced Unpublished Rates opaque hotel inventory as part of the ongoing focus to improve the customer value proposition and capture incremental bookings to standard published rate bookings.

Hotwire^® introduced its One-Way Car product, giving travelers the flexibility to pick-up or drop-off at any combination of local rental agencies or airports.

TripAdvisor launched TripAdvisor for Business, a dedicated B2B division managing Business Listings, Vacation Rentals and Partnerships.

TripAdvisor launched Trip Friends feature, enabling travelers to see a list of their friends who have been to various destinations, as identified via the TripAdvisor Cities, I’ve Visited™ application on the Facebook Platform.

Expedia^® Media, the advertising sales division of Expedia, Inc., rolled out a new algorithm for its TravelAds™ product in June, improving performance for participating hotels and setting a record for monthly revenue for that product. In addition, a newly released case study shows that the average hotels using the TravelAds product for the first time realized a significant return and a meaningful lift in market share within the first week of participating.

Expedia Media signed a long-term pan-European partnership with the Netherlands Board of Tourism for online advertising campaigns targeting travelers in Belgium, Denmark, France, Germany, Italy, Norway, Spain and Sweden.

Expedia^® Affiliate Network (EAN) signed agreements to power online travel bookings for a number of new global partners, including Russia-based OTA OKtoGO.ru; G-Plan, a leading membership points program in Japan with 1.7 million registered users; and SoftVoyage, a B2B travel software solutions company based in Canada.

At quarter-end, Expedia’s global websites featured approximately 127,000 bookable properties, including nearly 68,000 merchant and 30,000 agency properties with which we have direct relationships. Expedia sites offer approximately 62,000 EMEA region hotels and more than 13,000 properties in APAC countries. Separately, eLong features over 12,000 properties in China.

Expedia and Delta Airlines have signed a new agreement under which all Delta schedules and fares will be available on Expedia.com, Expedia.ca, Hotwire, Expedia Affiliate Network and Egencia.

Expedia signed global partnership agreements with a number of international hotel brands, including Spain-based Iberostar Hotels & Resorts, and Chinese economy chains Jinjiang Inn and GreenTree Inn Hotels.

Hotwire partnered with Air Canada, Canada’s largest air carrier, giving Hotwire customers access to all of Air Canada’s routes which include more than 170 destinations worldwide.

Revenue

Costs and expenses:

Cost of revenue (1)

Selling and marketing (1)

Technology and content (1)

General and administrative (1)

Amortization of intangible assets

Occupancy tax assessments and legal reserves

Restructuring charges

Operating income

Other income (expense):

Interest income

Interest expense

Other, net

Total other expense, net

Income before income taxes

Provision for income taxes

Net income

Net income attributable to noncontrolling interests

Net income attributable to Expedia, Inc.

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

Basic

Diluted

Shares used in computing earnings per share:

Basic

Diluted

Dividends declared per common share

(1) Includes stock-based compensation as follows:

Cost of revenue

Selling and marketing

Technology and content

General and administrative

Total stock-based compensation

Current assets:

Cash and cash equivalents

Restricted cash and cash equivalents

Short-term investments

Accounts receivable, net of allowance of $14,030 and $14,562

Prepaid merchant bookings

Prepaid expenses and other current assets

Total current assets

Property and equipment, net

Long-term investments and other assets

Intangible assets, net

Goodwill

TOTAL ASSETS

Current liabilities:

Accounts payable, merchant

Accounts payable, other

Deferred merchant bookings

Deferred revenue

Accrued expenses and other current liabilities

Total current liabilities

Long-term debt

Deferred income taxes, net

Other long-term liabilities

Commitments and contingencies

Stockholders’ equity:

Preferred stock $.001 par value

Authorized shares: 100,000

Series A shares issued and outstanding: 1 and 1

Common stock $.001 par value

Authorized shares: 1,600,000

Shares issued: 346,529 and 342,812

Shares outstanding: 258,777 and 263,929

Class B common stock $.001 par value

Authorized shares: 400,000

Shares issued and outstanding: 25,600 and 25,600

Additional paid-in capital

Treasury stock - Common stock, at cost

Shares: 87,752 and 78,883

Retained earnings (deficit)

Accumulated other comprehensive income (loss)

Total Expedia, Inc. stockholders’ equity

Noncontrolling interest

Total stockholders’ equity

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

Operating activities:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of property and equipment, including internal-use software and website development

Amortization of stock-based compensation

Amortization of intangible assets

Deferred income taxes

Foreign exchange loss on cash and cash equivalents, net

Realized (gain) loss on foreign currency forwards

Other

Changes in operating assets and liabilities, net of effects from acquisitions:

Accounts receivable

Prepaid merchant bookings, prepaid expenses and other current assets

Accounts payable, merchant

Accounts payable, other, accrued expenses and other current liabilities

Deferred merchant bookings

Deferred revenue

Net cash provided by operating activities

Investing activities:

Capital expenditures, including internal-use software and website development

Purchases of investments

Sales and maturities of investments

Acquisitions, net of cash acquired

Distributions from Reserve Primary Fund

Net settlement of foreign currency forwards

Other, net

Net cash provided by (used in) investing activities

Financing activities:

Credit facility repayments

Payment of dividends to stockholders

Treasury stock activity

Proceeds from exercise of equity awards

Purchase of additional interest in controlled subsidiary

Excess tax benefit on equity awards

Changes in restricted cash and cash equivalents

Other, net

Net cash used in financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Supplemental cash flow information

Cash paid for interest

Income tax payments, net

Our transaction-based businesses make travel products and services available on both a merchant and agency basis.

Merchant transactions, which primarily relate to hotel bookings, typically produce a higher level of net revenue per transaction, with revenues generally recognized when the customer uses the travel product or service.

Agency transactions primarily relate to airline ticket bookings, for which revenues are generally recognized at the time the reservation is booked. Agency transactions also include hotel bookings on our various websites, where revenue is recognized at the time the hotel stay occurs.

Merchant transactions accounted for 40% of total gross bookings and 66% of revenue in the second quarter, compared with 43% and 68% in the prior year period.

The mix of merchant bookings declined primarily from a higher mix of agency air bookings due in part to an increase in air ticket prices. The mix of merchant revenues declined due to higher relative growth in our advertising and media businesses.

Costs and expenses totaled $617 million in the second quarter of 2010, which was 12% higher than the second quarter of 2009, and represented 74.0% of revenue for a year-over-year increase of 232 basis points.

Cost of revenue

Selling and marketing

Technology and content

General and administrative

Total costs and expenses

Cost of revenue consists of costs related to: (1) customer operations, including our customer support and telesales operations, as well as fees paid to our air ticket fulfillment vendors; (2) credit card processing, including merchant fees, charge backs and fraud, and (3) data center and other, including data center costs to support our websites, certain promotions and destination services inventory, such as theme park tickets.

Customer operations

Credit card processing

Data center and other

Total cost of revenue

% of revenue

Cost of revenue increased 13% primarily due to higher costs related to credit card processing, telesales and customer service to support the growth in our transaction volumes, increased customer service expenses related to the Icelandic volcano and airline strike activity, as well as investments made during the second quarter, such as call center migration, that we believe will lead to more efficient future operations.

We expect cost of revenue to increase in absolute dollars but decrease as a percentage of revenue for full year 2010.

Selling and marketing expense primarily relates to direct costs, including traffic generation costs from search engines and internet portals, television, radio and print spending, private label and affiliate program commissions, public relations and other costs.

26% of selling and marketing expense in the second quarter of 2010 and 24% in the second quarter of 2009 relate to indirect costs, including personnel in PSG, TripAdvisor, Egencia® and our various leisure brands.

Direct costs

Indirect costs

Total selling and marketing

% of revenue

The 9% increase in selling and marketing costs in the second quarter was primarily driven by an increase in affiliate marketing expenses, an increase in headcount for PSG and our global advertising & media businesses, expenses associated with the opening of new global headquarters for our lodging supply group and an increase in online marketing for Hotwire. The growth in our overall direct marketing spend in the second quarter was impacted by a relatively improved outlook for travel demand compared with the prior year period. Our selling and marketing expense in the first half of 2010 represents a more normalized seasonal ramp associated with the busy spring and summer travel seasons.

We expect selling and marketing expense to increase in absolute dollars and as a percentage of revenue for full year 2010, in part due to approximately $20 million in relocation and other costs related to the opening of a new global headquarters for our lodging supply group.

Technology and content expense principally relates to payroll and related expenses, and depreciation and amortization of technology assets, including hardware and purchased and internally developed software.

Personnel and overhead

Depreciation and amortization of technology assets

Other

Total technology and content

% of revenue

The 13% increase in technology and content expense was due primarily to increased personnel costs to support our worldwide transaction-based businesses and TripAdvisor, as well as increased depreciation expense associated with an increase in our capital expenditures.

We expect technology and content expense to increase in absolute dollars and as a percentage of revenue for full year 2010.

General and administrative expense consists primarily of personnel-related costs, including our executive leadership, finance, legal, and human resources functions, as well as fees for professional services that typically relate to legal, tax and accounting engagements.

Personnel and overhead

Professional fees and other

Total general and administrative

% of revenue

The 18% increase in general and administrative expense was primarily driven by an increase in our reserve related to the potential settlement of occupancy tax issues, an increase in our bad debt reserve and higher personnel costs, partially offset by a decrease in legal fees primarily due to the timing of litigation.

We expect general and administrative expense to increase in absolute dollars but decrease as a percentage of revenue for full year 2010.

Stock-based compensation expense relates primarily to expenses from restricted stock units (“RSUs”) and stock options. In 2009, we began using stock options as our primary form of annual stock-based compensation.

Stock-based compensation expense was $15 million in the second quarter of 2010, consisting of $8 million in RSUs expense and $7 million primarily related to stock options expense. The prior year’s second quarter expense was $14 million.

Assuming, among other things, no meaningful modification of existing awards, incremental grants or adjustments to forfeiture estimates, we expect annual stock-based compensation expense will be less than $65 million in 2010.

In the second quarter of 2009 we reserved $55 million related to hotel occupancy tax assessments by the City of San Francisco for bookings on Expedia.com, hotels.com and Hotwire between January 2000 and March 2009, of which $48 million was paid during the third quarter of 2009. During the fourth quarter of 2009 we agreed to an adjustment on the assessment which reduced the overall exposure by $7 million. These payments were made to allow us to pursue litigation challenging the requirement to pay tax on merchant hotel bookings we facilitate and dispute the actual amounts owed, if any. We do not believe that such bookings are subject to the city’s occupancy tax ordinance and if we prevail, the city will be required to repay us the $48 million, plus accrued interest at the rate of 7%.

In 2009, we entered into an agreement for the settlement of all claims alleged in a consumer class action lawsuit filed in Seattle, Washington. During the second quarter of 2009, we reserved $19 million. Approximately $12 million of this settlement was paid out in the second quarter of 2010 with the remainder accrued for potential coupon redemptions as a part of the settlement agreement.

During the second quarter of 2009, in conjunction with the reorganization of our business around our global brands, we recognized restructuring charges of $6 million, primarily consisting of employee severance and benefits.

Interest income in the second quarter of 2010 was relatively consistent with the same quarter of the prior year on higher average balances partially offset by a lower average rate.

Interest expense of $20 million in second quarter 2010 was relatively consistent with the second quarter 2009 and relates primarily to interest on our two long-term debt issues (see Borrowings below for additional detail).

Other, net primarily relates to foreign exchange gains and losses and, to a lesser extent, our portion of gains or losses in equity investments.

Other, net was a $1 million gain in the second quarter 2010 compared with a $19 million loss in the prior year period. The $1 million gain in the second quarter of 2010 was primarily due to the net impact of foreign exchange. The $19 million loss in the second quarter of 2009 was primarily comprised of $14 million of foreign exchange losses and a $5 million loss to adjust one of our equity method investments to fair value.

These foreign exchange impacts primarily arise from the accounting re-measurement of our foreign denominated liabilities into U.S. dollars. We attempt to offset this re-measurement by holding foreign-denominated assets roughly equal to the liabilities, using both natural hedges (primarily cash), as well as foreign currency forward contracts where economically advantageous.

Any difference between the liability and asset positions gives rise to a gain or loss during the quarter, depending on the direction exchange rates move. In the second quarter of 2010 the net impact of changes in foreign exchange rates on these asset and liability positions was a net loss of $2.6 million. This amount includes any realized and unrealized gains and losses from forward contracts used to hedge these impacts.

We also utilize forward contracts to hedge a portion of our foreign-denominated revenues from the changes in exchange rates between the time of hotel bookings and the associated stays (the “book to stay” impact). See Foreign Exchange below for additional detail. In the second quarter of 2010 we recognized $2.8 million in gains arising from forward contracts intended to hedge this book to stay impact, which amount is included in “other, net”.

At June 30, 2010 we were party to outstanding forward contracts hedging our liability and revenue exposures with a total net notional value of $152 million, and a mark-to-market gain of $5 million. The mark-to-market gain is recorded as an asset in “prepaid expenses and other current assets.”

The effective tax rate on GAAP pre-tax income was 34.3% for the second quarter compared with 45.1% in the prior year period. The lower rate was primarily due to an increase in estimated earnings in jurisdictions outside the United States, the non-deductible portion of occupancy tax assessments accrued during the second quarter of 2009 as well as a non-deductible loss on one of our equity method investments occurring in the second quarter of 2009 and, to a lesser extent, lower accruals on uncertain tax positions.

The effective tax rate on pre-tax adjusted net income (“ANI”) was 34.2% for the second quarter compared with 37.8% in the prior year period. The lower rate was primarily due to an increase in estimated earnings in jurisdictions outside the United States.

The effective GAAP and ANI tax rates are lower than the 35% federal tax rate primarily due to an increase in estimated earnings in jurisdictions outside the United States, partially offset by state taxes and accruals on uncertain tax positions.

Cash paid for income taxes in the first six months of 2010 was $46 million, a decrease of $53 million from the prior year primarily due to the timing of estimated payments in the prior year period.

As Expedia’s reporting currency is the U.S. Dollar (“USD”), reported financial results are affected by the strength or weakness of the USD relative to currencies of international markets in which we operate. Management believes investors may find it useful to assess our growth rates both with and without the impact of foreign exchange.

The estimated impact on second quarter 2010 growth rates in gross bookings, revenue and OIBA from year over year changes in foreign exchange was as follows (some numbers may not add due to rounding):

Three months ended June 30, 2010

Gross Bookings

Revenue

OIBA

Foreign currency rate fluctuations negatively impacted our second quarter 2010 growth rates due to year-over-year depreciation in the Euro, Pound and Canadian Dollar, the three foreign currencies which most impact our financial results.

Our revenue hedging program is designed to offset the book-to-stay impact on merchant hotel revenues. In the second quarter of 2010 we realized a gain from our hedging program of $2.8 million, which substantially offset the $3.7 million book-to-stay loss. In the second quarter of 2009 we realized a loss from our hedging program of $5.4 million, which substantially offset the $6.7 million book-to-stay gain. We exclude the impact of the book-to-stay and the related revenue hedge in our calculations above.

We include any realized gains or losses from our revenue hedging program in our calculation of OIBA.

The impact on second quarter 2010 financials from the consolidation of CruiseShipCenters® and our acquisition of Chinese meta search player Kuxun was as follows:

Gross Bookings

Revenue

OIBA

Cash, cash equivalents, restricted cash and short-term investments totaled $1.14 billion at June 30, 2010. Of this amount, $141 million is held by several subsidiaries in which we have majority interests. We consolidate such amounts in our financial statements, but we generally do not consider this cash available for our working capital purposes.

The $441 million increase in cash, cash equivalents, restricted cash and short-term investments for the second quarter of 2010 primarily relates to the working capital benefit from the typical seasonal increase in our merchant hotel business and OIBA generation, partially offset by various financing activities including share repurchases and dividend payments as well as cash paid for taxes and interest, purchase of marketable securities classified as long-term investments, capital expenditures, cash paid for acquisitions and foreign exchange losses on cash.

Short-term investments increased by $285 million from December 31, 2009, primarily due to investments in time deposits, corporate bonds and bearer deposit notes with maturities of less than one year, partially offset by an eLong™ investment which matured in February 2010.

The effect of foreign exchange on our cash balances was $48 million for the first half of 2010. This amount is included in “effect of exchange rate changes on cash and cash equivalents” on our statements of cash flows. This loss increased $43 million from the prior period, reflecting higher foreign-denominated cash balances in the current year period as well as depreciation of foreign currencies in the first half of 2010. We hold foreign denominated cash balances to naturally hedge gains or losses on our foreign denominated liabilities. See Other, Net above for an explanation of our balance sheet hedging program.

Accounts receivable include receivables from credit card agencies primarily related to our merchant hotel business, receivables related to agency transactions (principally from airlines and global distribution systems), receivables from advertising clients and receivables related to our managed corporate travel businesses.

Accounts receivable increased $83 million from December 31, 2009 due to a seasonal increase in our business operations, primarily credit card receivables from growth in our merchant hotel business, receivables from TripAdvisor clients and receivables related to our managed corporate travel businesses.

Prepaid merchant bookings primarily relate to our merchant air business, and reflect prepayments to our airline partners for their portion of the gross booking prior to travelers’ dates of travel. Prepaid merchant bookings increased $68 million from December 31, 2009, due primarily to a seasonal increase in our merchant air business.

Prepaid expenses and other current assets are primarily composed of prepaid marketing, merchant fees, license and maintenance agreements and insurance.

Long-term investments and other assets include transportation equipment, debt and equity investments, time deposits and capitalized debt issuance costs. As of June 30, 2010 this amount includes $84 million related to corporate bond investments with maturities between one and four years.

Gains and losses from our corporate bond holdings are recorded in “accumulated other comprehensive income,” a component of shareholders’ equity.

The $104 million increase in long-term investments and other assets from December 31, 2009 relates primarily to our corporate bond investments, and to a lesser extent to capitalized costs associated with our February 2010 revolving credit facility agreement.

Goodwill and intangible assets, net primarily relate to the acquisitions of Hotels.com, Expedia.com and Hotwire.

Goodwill decreased $7 million from December 31, 2009 due to the impact of foreign currency translation adjustments on the goodwill associated with certain foreign acquisitions, partially offset by year to date acquisitions.

$687 million of intangible assets, net relates to intangible assets with indefinite lives, which are not amortized, principally trade names and trademarks.

$115 million of intangible assets, net relates to intangible assets with definite lives, which are generally amortized over a period of two to twelve years. The majority of this amortization is not deductible for tax purposes.

Amortization expense for definite-lived intangibles was $8 million for the second quarter of 2010 compared to $9 million for the prior year period. Assuming no impairments or additional acquisitions, we expect amortization expense of approximately $33 million in 2010.

Deferred merchant bookings consist of amounts received from travelers who have not yet traveled. Fluctuations in the balance generally mirror the seasonal pattern of our merchant gross bookings. Payments to suppliers related to these bookings are generally made within a few weeks after booking for air travel and, for all other merchant bookings, after the customer’s use of services and subsequent billing from the supplier. These billings are reflected as accounts payable, merchant on our balance sheet. For merchant hotel bookings there is a significant period of time between the receipt of cash from our travelers and the payment to suppliers.

Changes in deferred merchant bookings and accounts payable, merchant were a net source of cash of $725 million in the first half of 2010, compared with a net source of cash of $705 million in the prior year period. The increase was due primarily to relative strength in our merchant hotel gross bookings in the first six months of 2010 compared to the same period in the prior year.

Accounts payable, other primarily consists of payables related to our day-to-day business operations, and increased $51 million from December 31, 2009 primarily due to a seasonal increase in accrued marketing expenses.

Deferred revenue relates to cash received for certain travel and advertising services, and increased $10 million from December 31, 2009 primarily due to receipts for TripAdvisor’s new business listings product.

Accrued expenses principally relate to accruals for the costs of our call center and internet services, accruals for bonus, salary and wage liabilities, a reserve related to the potential settlement of occupancy tax issues, income taxes payable and accrued interest on our various debt instruments.

Accrued expenses and other current liabilities decreased $29 million from December 31, 2009 primarily due to our payment of accrued annual bonus expenses, payments related to the settlement of a class action lawsuit, payment of certain accrued severance costs, partially offset by an increase in income taxes payable.

Expedia, Inc. maintains a $750 million unsecured revolving credit facility, which expires in February 2013. During the second quarter of 2010 there were no borrowings outstanding under the facility.

Borrowings under the facility bear interest based on our credit ratings from S&P and Moody’s, which currently equates to a 300 basis points spread over the base rate (typically 1, 3 or 6 month LIBOR).

Outstanding letters of credit under the facility as of June 30, 2010 were $29 million, which amount is applied against our total borrowing capacity under the facility. In addition we have $11 million in outstanding letters of credit related to our prior facility.

Long-term debt relates to $500 million in registered 7.456% Senior Notes (the “7.456% Notes”) due 2018, and $400 million in 8.5% Notes due 2016 (the “8.5% Notes”). The 7.456% Notes are repayable in whole or in part on August 15, 2013 at the option of the note holders. The 8.5% Notes are non-callable until 2012. Both Note issues can be retired at any time at our option subject to make-whole premiums of 37.5 basis points in the case of the 7.456% Notes and 50 basis points in the case of the 8.5% Notes.

As of June 30, 2010 we were in compliance with the financial covenants under our various debt facilities.

Annual interest expense related to our 7.456% Notes is $37 million, paid semi-annually on February 15 and August 15 of each year. Annual interest expense related to our 8.5% Notes is $34 million, paid semi-annually on January 1 and July 1 of each year. Accrued interest related to these notes was $31 million at June 30, 2010 and is classified in “accrued expenses and other current liabilities” on our balance sheet.

Other long-term liabilities consist primarily of uncertain tax positions recorded according to income tax accounting standards.

Noncontrolling interest relates primarily to the minority ownership position in eLong, an entity in which we own a 65% interest (59% fully-diluted), and results for which are consolidated for all periods presented.

We currently have 11.6 million shares of repurchase capacity remaining under our August 2006 share repurchase authorization.

On June 17, 2010 we paid a quarterly dividend of $20 million ($0.07 per common share).

Expedia’s Board of Directors declared a cash dividend of $0.07 per share of outstanding common stock to be paid to stockholders of record as of the close of business on August 26, 2010, with a payment date of September 16, 2010. Based on our current shares outstanding we estimate the total payment for this quarterly dividend will be approximately $20 million. Future declaration of dividends and the establishment of future record and payment dates are subject to the final determination of Expedia’s Board of Directors.

There are approximately 26 million shares of Expedia Class B common stock outstanding, owned by a subsidiary of Liberty Media Corporation (“Liberty”). Class B shares are entitled to ten votes per share when voting on matters with the holders of Expedia common and preferred stock.

Through the common stock our Chairman and Senior Executive, Barry Diller, owns directly, as well as the common stock and Class B stock for which he has been assigned an irrevocable proxy from Liberty, Mr. Diller had a controlling 60% voting interest in Expedia, Inc. as of July 15, 2010.

As of June 30, 2010 there were 32 million privately held warrants outstanding, which, if exercised in full, would entitle holders to acquire 16 million common shares of Expedia, Inc. for an aggregate purchase price of $411 million (an average of $25.56 per Expedia, Inc. common share). All of these warrants expire in May 2012.

At June 30, 2010 we had 25 million stock-based awards outstanding, consisting of stock options to purchase 21 million common shares with a $17.23 weighted average exercise price and weighted average remaining life of 5.5 years, and 5 million RSUs. In the first six months of the year we have granted 5.7 million options.

Weighted average basic, fully diluted and adjusted diluted share counts for the quarters ended June 30, 2010 and 2009 were as follows (in 000s; some numbers may not add due to rounding):

Basic shares

Options

Other dilutive securities (primarily RSUs)

Fully diluted shares

Additional Dilution, Adjusted Income method

Adjusted diluted shares

Adjusted diluted shares decreased for the second quarter 2010 compared with second quarter 2009 due primarily to share repurchases.

The following metrics are intended as a supplement to the financial statements found in this press release and in our filings with the SEC. In the event of discrepancies between amounts in these tables and our historical financial statements, readers should rely on our filings with the SEC and financial statements in our most recent earnings release.

We intend to periodically review and refine the definition, methodology and appropriateness of each of our supplemental metrics. As a result, metrics are subject to removal and/or change, and such changes could be material.

These metrics do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments.

Some numbers may not add due to rounding.

Number of Transactions

Gross Bookings by Segment

Leisure

Egencia

Total

Gross Bookings by Geography

Domestic

International

Total

Gross Bookings by Agency/Merchant