Exhibit 99.2
Additional Information Regarding Non-GAAP Financial Measures
During the first quarter of 2008, we began to exclude foreign exchange gains or losses on USD cash balances held by eLong, Inc. (a majority-owned subsidiary) from Adjusted earnings per share, a Non-GAAP financial measure, as we expect to use the cash to settle foreseeable USD obligations and commitments only. The table below provides a quantitative reconciliation between Adjusted earnings per share excluding foreign exchange gains or losses on USD cash balances held by eLong, Inc. and Diluted earnings per share, the most comparable financial measure calculated in accordance with GAAP.
Three months | Three months | Three months | Three months | Three months | Three months | Three months | Three months | Three months | ||||||||||||||||||||||||||||||||||||
ended | ended | ended | ended | ended | ended | ended | ended | ended | Years ended | |||||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||||||||||||||||
2008 | 2007 | 2007 | 2007 | 2007 | 2006 | 2006 | 2006 | 2006 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 51,306 | $ | 65,357 | $ | 99,595 | $ | 96,136 | $ | 34,776 | $ | 67,140 | $ | 58,977 | $ | 95,482 | $ | 23,335 | $ | 295,864 | $ | 244,934 | ||||||||||||||||||||||
Amortization of intangible assets | 18,051 | 18,257 | 18,613 | 19,503 | 21,196 | 23,906 | 26,569 | 30,120 | 30,171 | 77,569 | 110,766 | |||||||||||||||||||||||||||||||||
Stock-based compensation | 17,806 | 18,600 | 14,417 | 13,972 | 15,860 | 22,738 | 16,439 | 17,221 | 23,887 | 62,849 | 80,285 | |||||||||||||||||||||||||||||||||
Foreign currency loss on U.S. dollar cash balances held by eLong | 5,275 | 3,636 | 1,836 | 2,007 | 1,163 | 2,377 | 1,063 | 489 | 438 | 8,642 | 4,367 | |||||||||||||||||||||||||||||||||
Amortization of non-cash distribution and marketing | — | — | — | — | — | 60 | 711 | 627 | 8,240 | — | 9,638 | |||||||||||||||||||||||||||||||||
Impairment of intangible asset | — | — | — | — | — | — | 47,000 | — | — | — | 47,000 | |||||||||||||||||||||||||||||||||
Federal excise tax refunds | — | — | — | (12,058 | ) | — | — | — | — | — | (12,058 | ) | — | |||||||||||||||||||||||||||||||
Unrealized (gain) loss on derivative instruments, net | (4,980 | ) | (190 | ) | 1,394 | 3,153 | 1,391 | 3,472 | 603 | (7,912 | ) | (4,300 | ) | 5,748 | (8,137 | ) | ||||||||||||||||||||||||||||
Amortization of intangible assets as part of equity method investments | 650 | 839 | 934 | 551 | — | — | — | — | — | 2,324 | — | |||||||||||||||||||||||||||||||||
Minority interest | (2,201 | ) | (1,813 | ) | (913 | ) | (1,072 | ) | (717 | ) | (1,263 | ) | (646 | ) | (426 | ) | (511 | ) | (4,515 | ) | (2,656 | ) | ||||||||||||||||||||||
Provision for income taxes | (14,908 | ) | (7,181 | ) | (11,943 | ) | (7,329 | ) | (14,086 | ) | (18,861 | ) | (32,972 | ) | (17,138 | ) | (24,135 | ) | (40,539 | ) | (93,106 | ) | ||||||||||||||||||||||
Adjusted net income | $ | 70,999 | $ | 97,505 | $ | 123,933 | $ | 114,863 | $ | 59,583 | $ | 99,569 | $ | 117,744 | $ | 118,463 | $ | 57,125 | $ | 395,884 | $ | 393,091 | ||||||||||||||||||||||
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GAAP diluted weighted average shares outstanding | 294,031 | 300,530 | 312,756 | 320,196 | 323,749 | 343,586 | 341,137 | 359,090 | 365,168 | 314,233 | 352,181 | |||||||||||||||||||||||||||||||||
Additional restricted stock units | 7,200 | 5,736 | 6,159 | 7,087 | 5,964 | 5,849 | 6,761 | 7,093 | 5,054 | 6,237 | 6,189 | |||||||||||||||||||||||||||||||||
Adjusted weighted average shares outstanding | 301,231 | 306,266 | 318,915 | 327,283 | 329,713 | 349,435 | 347,898 | 366,183 | 370,222 | 320,470 | 358,370 | |||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.17 | $ | 0.22 | $ | 0.32 | $ | 0.30 | $ | 0.11 | $ | 0.20 | $ | 0.17 | $ | 0.27 | $ | 0.06 | $ | 0.94 | $ | 0.70 | ||||||||||||||||||||||
Adjusted earnings per share | 0.24 | 0.32 | 0.39 | 0.35 | 0.18 | $ | 0.28 | 0.34 | 0.32 | 0.15 | $ | 1.24 | $ | 1.10 | ||||||||||||||||||||||||||||||