TripAdvisor 2011 Annual Report Download - page 49

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Table of Contents
as a result of the Spin-Off to support business growth and additional hiring in order to support our operations as a standalone public company
and an additional $8 million in stock based compensation related to modification charges in connection with the Spin-Off. Refer to “Note 7—
Stock Based Awards and Other Equity Instruments ” in the notes to our consolidated and combined financial statements for information related
to the stock-based award modification charges.
As discussed above, all depreciation costs of capitalized assets, primarily consisting of furniture and office equipment for prior periods
have been reclassified on this Annual Report on Form 10-K to depreciation expense on our consolidated and combined statement of operations.
2010 vs. 2009
In 2010, the increase in general and administrative expense was primarily due to an increase in personnel costs, including incentive
compensation, as well as an increase in bad debt expense, agency recruiting fees and excise tax.
Related
-Party Shared Services Fee
Related-party shared services fee is comprised of allocations from Expedia for accounting, legal, tax, corporate development, treasury and
real estate functions and includes an allocation of employee compensation within these functions. These allocations were determined based on
what we and Expedia considered being reasonable reflections of the utilization of services provided or the benefit received by us.
In 2011 and 2010, the increase in related-party shared services fee was primarily due to an increase in accounting, legal, tax and treasury
costs in support of international expansion.
Depreciation
2011 vs. 2010
Depreciation expense increased $5 million or 43% during the year ended December 31, 2011 when compared to the same period in 2010
primarily due to increased amortization of $4 million related to capitalized software and website development costs.
2010 vs. 2009
In 2010, our depreciation increased primarily due to increased amortization of capitalized software and website development costs of $2
million with the remainder being related to increase depreciation related to servers and leasehold improvements.
45
Year ended December 31,
% Change
2011
2010
2009
2011 vs. 2010
2010 vs. 2009
($ in millions)
Related
-
party shared services fee
$
9
$
8
$
7
17
%
14
%
% of revenue
1.4
%
1.6
%
2.0
%
Year ended December 31,
% Change
2011
2010
2009
2011 vs. 2010
2010 vs. 2009
($ in millions)
Depreciation
$
18
$
13
$
9
43
%
38
%
% of revenue
2.9
%
2.7
%
2.6
%