TripAdvisor 2015 Annual Report Download - page 21
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Please find page 21 of the 2015 TripAdvisor annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.useoftheInternetforcommerce,legislation,regulatoryenvironments(includinglaborslawsandcustoms),taxlawsandlevelsofpoliticalstability.Weare
subjecttoassociatedriskstypicalofinternationalbusinesses,including,butnotlimitedto,thefollowing:
·Politicalinstability;
·Threatenedoractualactsofterrorism;
·Abilitytocomplywithadditionallawsapplicabletocompaniesoperatinginternationallyaswellaslocallawsandregulations,includingtheForeign
CorruptPracticesActandU.K.BriberyAct,dataprivacyrequirements,laborlawsandanti-competitionregulations;
·Diminishedabilitytolegallyenforcecontractualrights;
·Increasedriskandlimitsonenforceabilityofintellectualpropertyrights;
·Restrictionson,oradverseconsequencesrelatedto,thewithdrawalofnon-U.S.investmentandearnings;
·Restrictionsonrepatriationofcashaswellasrestrictionsoninvestmentsinoperationsincertaincountries;
·Financialriskarisingfromtransactionsinmultiplecurrenciesaswellascurrencyexchangerestrictions;
·SloweradoptionoftheInternetasanadvertising,broadcastandcommercemediumincertainofthosemarketsascomparedtotheUnitedStates;
·Difficultiesinmanagingstaffandoperationsduetodistance,timezones,languageandculturaldifferences;and
·Uncertaintyregardingliabilityforservices,contentandintellectualpropertyrights,includinguncertaintyasaresultoflocallawsandlackof
precedent.
WehaveabusinessoperatinginChina,whichcreatesparticularrisksanduncertaintiesrelatingtothelawsinChina.ThelawsandregulationsofChina
restrictforeigninvestmentinareasincludingair-ticketingandtravelagencyservices,Internetcontentprovision,mobilecommunicationandrelatedbusinesses.
AlthoughwehaveestablishedeffectivecontrolofourChinesebusinessthroughaseriesofagreements,futuredevelopmentsintheinterpretationorenforcementof
Chineselawsandregulationsoradisputerelatingtotheseagreementscouldrestrictourabilitytooperateorrestructurethisbusinessortoengageinstrategic
transactions.Thesuccessofthisbusiness,andofanyfutureinvestmentsinChina,issubjecttorisksanduncertaintiesregardingtheapplication,developmentand
interpretationofChina’slawsandregulations.
Furthermore,wearealsoaccumulatingagreaterportionofourcashflowsinforeignjurisdictionsthanpreviously,whichweconsiderindefinitely
reinvested.TherepatriationofsuchfundsforuseintheUnitedStates,includingforcorporatepurposessuchasacquisitions,stockrepurchases,dividendsordebt
refinancings,mayresultinadditionalU.S.incometaxexpenseandhighercostforsuchcapital.
The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business.
Ourfuturesuccessdependsuponthecontinuedcontributionsofourseniorcorporatemanagementandotherkeyemployees.Inparticular,thecontributions
ofStephenKaufer,ourPresidentandChiefExecutiveOfficer,arecriticaltoouroverallmanagement.Wecannotensurethatwewillbeabletoretaintheservices
oftheseindividuals,andthelossofoneormoreofourkeypersonnelcouldseriouslyharmourbusiness.Wedonotmaintainanykeypersonlifeinsurancepolicies.
Inaddition,competitionremainsintenseforwell-qualifiedemployeesincertainaspectsofourbusiness,includingsoftwareengineers,developers,product
managementanddevelopmentpersonnel,andothertechnologyprofessionals.Ourcontinuedabilitytocompeteeffectivelydependsonourabilitytoattractnew
employeesandtoretainandmotivateexistingemployees.Ifwedonotsucceedinattractingwell-qualifiedemployeesorretainingormotivatingexisting
employees,ourbusinesswouldbeadverselyaffected.
A failure to comply with current laws, rules and regulations or changes to such laws, rules and regulations and other legal uncertainties may adversely affect
our business or financial performance.
Ourbusinessandfinancialperformancecouldbeadverselyaffectedbyunfavorablechangesinorinterpretationsofexistinglaws,rulesandregulationsor
thepromulgationofnewlaws,rulesandregulationsapplicabletousandourbusiness,includingthoserelatingtotheInternetandonlinecommerce,Internet
advertising,consumerprotection,datasecurityandprivacy.Unfavorablechangescoulddecreasedemandforproductsandservices,limitmarketingmethodsand
capabilities,increasecostsand/orsubjectustoadditionalliabilities.
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