TripAdvisor 2014 Annual Report Download - page 44

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34
Results of Operations
Selected Financial Data
(in millions, except per share data)
Year ended December 31, % Change
2014 2013 2012
2014 vs. 2013 2013 vs. 2012
Revenue............................................................................... $1,246 $945 $763 32% 24%
Costs and expenses:
Cost of revenue (exclusive of amortization) (1) ............ 40 18 12 122% 50%
Selling and marketing (2) .............................................. 502 368 266 36% 38%
Technology and content (2) ........................................... 171 131 87 31% 51%
General and administrative (2) ...................................... 128 98 76 31% 29%
Depreciation .................................................................. 47 30 20 57% 50%
Amortization of intangible assets .................................. 18 6 6 200% 0%
Total costs and expenses ..................................................... 906 651 467 39% 39%
Operating income ................................................................ 340 294 296 16% (1)%
Other income (expense):
Interest expense ............................................................. (9) (10) (11 )
(10)% (9)%
Interest income and other, net ........................................ (9) - (3 )
100% (100)%
Total other expense, net ...................................................... (18) (10) (14 )
80% (29)%
Income before income taxes ................................................ 322 284 282 13% 1%
Provision for income taxes .................................................. (96) (79) (87 )
22% (9)%
N
et income .......................................................................... 226 205 195 10% 5%
N
et (income) loss attributable to noncontrolling interes
t
.... - - (1 )
0% (100)%
N
et income attributable to TripAdvisor, Inc. ...................... $226 $205 $194 10% 6%
Earnings per share attributable to TripAdvisor, Inc.
available to common stockholders:
Basic .............................................................................. $1.58 $1.44 $1.39 10% 4%
Diluted ........................................................................... $1.55 $1.41 $1.37 10% 3%
Weighted average common shares outstanding:
Basic .............................................................................. 143 143 139 0% 3%
Diluted ........................................................................... 146 145 141 1% 3%
Other financial data:
Adjusted EBITDA (3) ......................................................... $468 $379 $352 23% 8%
(1) Excludes amortization as follows:
Amortization of acquired technology included in
amortization of intangibles ......................................... $ 4 $ 1 $1
Amortization of website development costs
included in depreciation .............................................. 30 20 13
$34 $21 $14
(2) Includes stock-based compensation expense as
follows:
Selling and marketing .................................................... $13 $11 $5
Technology and content ................................................. 27 21 11
General and administrative ............................................ 23 17 14
(3) See “Adjusted EBITDA” discussion below for more information and for a reconciliation of Adjusted EBITDA to net income,
the most directly comparable financial measure calculated and presented in accordance with GAAP.