TripAdvisor 2012 Annual Report Download - page 92

trigger vesting have not been achieved; therefore, such awards were excluded from the calculation of
weighted average shares used to compute diluted earnings per share for those reporting periods.
The earnings per share amounts are the same for common stock and Class B common stock because the
holders of each class are legally entitled to equal per share distributions whether through dividends or in
liquidation.
Recently Adopted Accounting Pronouncements
Testing Indefinite-lived Intangibles for Impairment
In July 2012, the FASB issued ASU 2012-02, which amends ASC Topic 350, “Intangibles—Goodwill and
Other.” The guidance amends the impairment test for indefinite lived intangible assets other than goodwill by
allowing companies to first assess qualitative factors to determine if it is more likely than not that an indefinite
lived intangible asset is impaired and whether it is necessary to perform the impairment test of comparing the
carrying amount with the recoverable amount of the indefinite lived intangible asset. This guidance is effective
for interim and annual periods beginning after September 15, 2012, however, we have decided to early adopt and
make it effective for our 2012 impairment review. Accordingly, we have adopted the presentation requirements
of ASU 2012-02 during the fourth quarter of 2012. The adoption of ASU 2012-02 did not have a material impact
on our consolidated and combined financial statements.
New Accounting Pronouncements Not Yet Adopted
Disclosure about Offsetting Assets and Liabilities
In December 2011, the FASB issued ASU 2011-11, which amends ASC Subtopic 210-20, “Offsetting.” The
guidance requires enhanced disclosures with improved information about financial instruments and derivative
instruments that are either (i) offset in accordance with current guidance or (ii) subject to an enforceable master
netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current
guidance. This guidance is effective for interim and annual periods beginning after January 1, 2013. The
guidance is limited to the form and content of disclosures, and we do not anticipate that the adoption of this
guidance will have an impact on our consolidated and combined financial statements.
NOTE 3: ACQUISITIONS
During the years ended December 31, 2012, 2011, and 2010, we acquired a number of companies including
various online travel media content companies. The following table summarizes the allocation of the purchase
price for those years:
2012 2011 2010
(In thousands)
Goodwill ................................................. $3,043 $6,390 $40,703
Intangible assets with definite lives (1) ......................... — 1,642 8,148
Net assets (liabilities) (2) .................................... 7 (16) (3,580)
Total (3) ............................................. $3,050 $8,016 $45,271
(1) The weighted average life of acquired intangible assets during 2011 and 2010 was 2.8 years, and 6.2 years,
respectively.
(2) Includes cash acquired of $0 million, $0.1 million and $2 million during 2012, 2011 and 2010, respectively.
(3) All outstanding purchase contingencies have been paid.
The purchase price allocation of the 2012 acquisition is preliminary and subject to revision as more
information becomes available, but in any case will not be revised beyond 12 months after the acquisition date
and any change to the fair value of net assets acquired will lead to a corresponding change to the purchase price
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