TripAdvisor 2014 Annual Report Download - page 93

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83
NOTE 7: GOODWILL AND INTANGIBLE ASSETS, NET
The following table summarizes our goodwill activity by segment for the periods presented:
TripAdvisor Hotel Other Consolidated
(in millions)
Balance as of December 31, 2012 .................................................... $ 472 $ - $ - $ 472
Additions (1) ............................................................................... 30 - - 30
Balance as of December 31, 2013 .................................................... $ 502 $ - $ - $ 502
Additions (1) ............................................................................... 253 - - 253
Other adjustments (2) ................................................................. (21) - - (21)
Allocation to new segments (3) .................................................. (734) 442 292 -
Ending balance as of December 31, 2014 ........................................ $ - $ 442 $ 292 $ 734
(1) The additions to goodwill relate to our business acquisitions. See “Note 3— Acquisitions,” for further information.
(2) Primarily related to impact of changes in foreign exchange rates to goodwill.
(3) See “Note 16—Segments and Geographic Information” for information on our reporting segment changes in the fourth quarter
of 2014.
Intangible assets, which were acquired in business combinations and recorded at fair value on the date of purchase, consist of
the following for the periods presented:
December 31,
2014 2013
(in millions)
Intangible assets with definite lives ..................................................................................... $ 202 $ 36
Less: accumulated amortization ........................................................................................... (18 ) (14)
Intangible assets with definite lives, net ......................................................................... 184 22
Intangible assets with indefinite lives .................................................................................. 30 30
$ 214 $ 52
Amortization expense was $18 million, $6 million, and $6 million, respectively, for the years ended December 31, 2014, 2013
and 2012.
Our indefinite-lived assets relate to trade names and trademarks. Refer to “Note 2— Significant Accounting Policies” above for
a discussion of our annual indefinite-lived intangible asset impairment assessment.
The following table presents the components of our intangible assets with definite lives for the periods presented:
December 31, 2014 December 31, 2013
Weighted
Average Gross Net Gross
Net
Remaining Life Carrying Accumulated Carrying Carrying Accumulated Carrying
(in years) Amount Amortization Amount Amount Amortization Amount
(in millions) (in millions)
Trade names and trademarks .............................. 9.4 $ 52 $ (5) $ 47 $ 18 $(7) $ 11
Customer lists and supplier relationships ........... 6.8 77 (5) 72 - - -
Subscriber relationships ..................................... 5.5 31 (4) 27 14 (6) 8
Technology and other ......................................... 4.5 42 (4) 38 4 (1) 3
Total .............................................................. 6.8 $ 202 $ (18) $ 184 $ 36 $(14) $ 22
Refer to “Note 3— Acquisitions” above for a discussion of definite lived intangible assets acquired in business combinations
during the years ended December 31, 2014 and 2013.