TripAdvisor 2012 Annual Report Download - page 115
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The following table is a reconciliation of Adjusted EBITDA to operating income and net income for the
periods presented:
Year ended December 31,
(in thousands)
2012 2011 2010
Adjusted EBITDA ................................. $352,474 $322,918 $260,963
Depreciation (1) .................................... (19,966) (18,362) (12,871)
OIBA (2) ......................................... 332,508 304,556 248,092
Amortization of intangible assets ...................... (6,110) (7,523) (14,609)
Stock-based compensation ............................ (30,102) (17,344) (7,183)
Spin-Off costs ..................................... — (6,932) —
Operating income .................................. 296,296 272,757 226,300
Interest income (expense), net ......................... (10,871) 391 (241)
Other, net ......................................... (3,450) (1,254) (1,644)
Provision for income taxes ........................... (87,387) (94,103) (85,461)
Net (income) loss attributable to noncontrolling interest .... (519) (114) (178)
Net income attributable to TripAdvisor, Inc ............ $194,069 $177,677 $138,776
(1) Includes internal use software and website development costs.
(2) Our primary operating metric prior to the Spin-Off for evaluating operating performance was OIBA, as
reported on our Registration Statement on Form S-4, filed with the SEC on November 1, 2011. OIBA is
defined as operating income plus: (1) amortization of intangible assets and any related impairment;
(2) stock-based compensation expense; and (3) non-recurring expenses incurred to effect the Spin-Off
during the year ended December 31, 2011. This operating metric is no longer being used by our
management to measure operating performance and is only being shown above to illustrate the financial
impact as we converted to a new operating metric post Spin-Off and is also currently used to calculate our
annual obligation for our charitable foundation. Refer to “Note 12—Commitments and Contingencies”
above for a discussion of our charitable foundation.
We derive substantially all of our revenue from the sale of advertising, primarily through click-based
advertising and, to a lesser extent, display-based advertising. The remainder of our revenue is generated through
a combination of subscription-based offerings, transaction revenue from selling room nights on our transactional
sites SniqueAway and Tingo, and other revenue including content licensing.
Year ended December 31,
2012 2011 2010
($ in thousands)
Click-based advertising ........................ $587,781 $499,993 $383,543
Display-based advertising ...................... 94,147 85,736 71,848
Subscription, transaction and other ............... 81,038 51,334 29,244
Total revenue ............................ $762,966 $637,063 $484,635
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