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basis. Investments with remaining maturities of less than one year are classified within short-term investments.
All other investments with remaining maturities ranging from one year to five years are classified within long-
term investments and other assets.
We record investments using the equity method when we have the ability to exercise significant influence
over the investee, including our investment in the AirAsia joint venture that launched in July 2011, of which we
owned 50% as of December 31, 2013. Equity investments without readily determinable fair values for which we
do not have the ability to exercise significant influence are accounted for using the cost method of accounting
and classified within long-term investments and other assets. Under the cost method, investments are carried at
cost and are adjusted only for other-than-temporary declines in fair value, certain distributions, and additional
investments.
We periodically evaluate the recoverability of investments and record a write-down to fair value if a decline
in value is determined to be other-than-temporary.
Accounts Receivable
Accounts receivable are generally due within thirty days and are recorded net of an allowance for doubtful
accounts. We consider accounts outstanding longer than the contractual payment terms as past due. We
determine our allowance by considering a number of factors, including the length of time trade accounts
receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the
condition of the general economy and industry as a whole.
Property and Equipment
We record property and equipment at cost, net of accumulated depreciation and amortization. We also
capitalize certain costs incurred related to the development of internal use software. We capitalize costs incurred
during the application development stage related to the development of internal use software. We expense costs
incurred related to the planning and post-implementation phases of development as incurred.
We compute depreciation using the straight-line method over the estimated useful lives of the assets, which
is three to five years for computer equipment, capitalized software development and furniture and other
equipment. We amortize leasehold improvement using the straight-line method, over the shorter of the estimated
useful life of the improvement or the remaining term of the lease.
We establish assets and liabilities for the present value of estimated future costs to return certain of our
leased facilities to their original condition under the authoritative accounting guidance for asset retirement
obligations. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities
are accreted to the future value of the estimated restoration costs.
Recoverability of Goodwill and Indefinite-Lived Intangible Assets
Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business
combination as of the acquisition date. We assess goodwill and indefinite-lived intangible assets, neither of
which is amortized, for impairment annually as of October 1, or more frequently, if events and circumstances
indicate impairment may have occurred. In September 2011, we adopted the Financial Accounting Standard
Board’s (“FASB”) new guidance on impairment testing of goodwill. In the evaluation of goodwill for
impairment, we first perform a qualitative assessment to determine whether it is more likely than not that the fair
value of the reporting unit is less than the carrying amount. If so, we perform a quantitative assessment and
compare the fair value of the reporting unit to the carrying value. If the carrying value of a reporting unit exceeds
its fair value, the goodwill of that reporting unit is potentially impaired and we proceed to step two of the
impairment analysis. In step two of the analysis, we will record an impairment loss equal to the excess of the
carrying value of the reporting unit’s goodwill over its implied fair value should such a circumstance arise.
F-13