Priceline 2015 Annual Report Download - page 106

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The annual estimated amortization expense for intangible assets for the next five years and thereafter is expected to be as follows (in thousands):
2016 $ 168,444
2017 161,207
2018 142,638
2019 132,192
2020 124,651
Thereafter 1,438,401
$ 2,167,533
A roll-forward of goodwill for the years ended December 31, 2015 and 2014 consisted of the following (in thousands):
2015
2014
Balance, beginning of year $ 3,326,474
$ 1,767,912
Acquisitions 74,584
1,590,829
Currency translation adjustments (26,058)
(32,267)
Balance, end of year $ 3,375,000
$ 3,326,474
A substantial portion of the intangibles and goodwill relates to the acquisition of OpenTable in July 2014 and KAYAK in May 2013. See Note 19 for
further information on these acquisitions.
As of September 30, 2015 , the Company performed its annual goodwill impairment testing using standard valuation techniques and concluded that there
was no impairment of goodwill. Other than OpenTable, the fair values of the Company's reporting units substantially exceeded their respective carrying values as
of September 30, 2015 . Since the annual impairment test, there have been no events or changes in circumstances to indicate a potential impairment.
As of September 30, 2015 , OpenTable’s carrying value was $2.5 billion , of which $1.5 billion relates to goodwill. The fair value of OpenTable slightly
exceeded its carrying value as of September 30, 2015 . OpenTable’s fair value was estimated using a combination of standard valuation techniques, including an
income approach (discounted cash flows) and market approaches (EBITDA multiples of comparable publicly-traded companies and for precedent transactions).
10 . DEBT
Revolving Credit Facility
In June 2015, the Company entered into a $2.0 billion five -year unsecured revolving credit facility with a group of lenders. Borrowings under the
revolving credit facility will bear interest, at the Company’s option, at a rate per annum equal to either (i) the adjusted LIBOR for the interest period in effect for
such borrowing plus an applicable margin ranging from 0.875% to 1.50% ; or (ii) the greatest of (a) Bank of America, N.A.'s prime lending rate, (b) the federal
funds rate plus 0.5% , and (c) an adjusted LIBOR for an interest period of one month plus 1.00% , plus an applicable margin ranging from 0.00% to 0.50% .
Undrawn balances available under the revolving credit facility are subject to commitment fees at the applicable rate ranging from 0.085% to 0.20% .
The revolving credit facility provides for the issuance of up to $70.0 million of letters of credit as well as borrowings of up to $50.0 million on same-day
notice, referred to as swingline loans. Borrowings under the revolving credit facility may be made in U.S. Dollars, Euros, British Pounds Sterling and any other
foreign currency agreed to by the lenders. The proceeds of loans made under the facility will be used for working capital and general corporate purposes, which
could include acquisitions or share repurchases. As of December 31, 2015 , there were no borrowings outstanding and approximately $2.5 million of letters of
credit issued under this new facility. The Company paid $4.0 million in debt issuance costs related to the revolving credit facility during the year ended
December 31, 2015 .
Upon entering into this new revolving credit facility, the Company terminated its $1.0 billion five -year revolving credit facility entered into in October
2011 and recognized interest expense of $1.0 million related to the write-off of the
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