Business Context and Reporting Period
This Form 8-K Current Report was filed by Expedia, Inc. on August 30, 2007. The filing addresses Item 5.02 regarding the departure of a senior officer and the terms of his separation agreement.
Key Financial Metrics
The filing does not provide general financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The only financial data disclosed relates to the specific severance package for the departing executive:
- Base Salary Continuation: $350,000 annually for 12 months (subject to offset by new employment earnings).
- Health Insurance: COBRA coverage for 12 months.
- Initial Severance Payment: Equal to eight weeks of base salary.
- Equity Acceleration: Full vesting of 6,759 restricted stock units that would have vested over the subsequent six months.
Material Changes
The material change reported is the resignation of Paul Onnen as Executive Vice President, Technology, effective September 15, 2007. This follows a previous announcement on August 7, 2007. The company has entered into a Separation Agreement containing non-competition and non-solicitation covenants.
Outlook, Risks, and Unusual Items
The filing details the terms of the separation, including a seven-day revocation period for Mr. Onnen. No forward-looking guidance, general risk factors, or other unusual items are disclosed in this specific report.
Investor Verification Checklist
- Verify the effective date of Paul Onnen's resignation (September 15, 2007).
- Confirm the total value of the severance package, including the accelerated vesting of 6,759 restricted stock units.
- Review the specific non-competition and non-solicitation restrictions imposed on the departing executive.
- Note that the salary continuation is offset by any income earned from a new employer.