TripAdvisor 2015 Annual Report Download - page 21

Download and view the complete annual report

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.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

useoftheInternetforcommerce,legislation,regulatoryenvironments(includinglaborslawsandcustoms),taxlawsandlevelsofpoliticalstability.Weare
subjecttoassociatedriskstypicalofinternationalbusinesses,including,butnotlimitedto,thefollowing:
·Politicalinstability;
·Threatenedoractualactsofterrorism;
·Abilitytocomplywithadditionallawsapplicabletocompaniesoperatinginternationallyaswellaslocallawsandregulations,includingtheForeign
CorruptPracticesActandU.K.BriberyAct,dataprivacyrequirements,laborlawsandanti-competitionregulations;
·Diminishedabilitytolegallyenforcecontractualrights;
·Increasedriskandlimitsonenforceabilityofintellectualpropertyrights;
·Restrictionson,oradverseconsequencesrelatedto,thewithdrawalofnon-U.S.investmentandearnings;
·Restrictionsonrepatriationofcashaswellasrestrictionsoninvestmentsinoperationsincertaincountries;
·Financialriskarisingfromtransactionsinmultiplecurrenciesaswellascurrencyexchangerestrictions;
·SloweradoptionoftheInternetasanadvertising,broadcastandcommercemediumincertainofthosemarketsascomparedtotheUnitedStates;
·Difficultiesinmanagingstaffandoperationsduetodistance,timezones,languageandculturaldifferences;and
·Uncertaintyregardingliabilityforservices,contentandintellectualpropertyrights,includinguncertaintyasaresultoflocallawsandlackof
precedent.
WehaveabusinessoperatinginChina,whichcreatesparticularrisksanduncertaintiesrelatingtothelawsinChina.ThelawsandregulationsofChina
restrictforeigninvestmentinareasincludingair-ticketingandtravelagencyservices,Internetcontentprovision,mobilecommunicationandrelatedbusinesses.
AlthoughwehaveestablishedeffectivecontrolofourChinesebusinessthroughaseriesofagreements,futuredevelopmentsintheinterpretationorenforcementof
Chineselawsandregulationsoradisputerelatingtotheseagreementscouldrestrictourabilitytooperateorrestructurethisbusinessortoengageinstrategic
transactions.Thesuccessofthisbusiness,andofanyfutureinvestmentsinChina,issubjecttorisksanduncertaintiesregardingtheapplication,developmentand
interpretationofChina’slawsandregulations.
Furthermore,wearealsoaccumulatingagreaterportionofourcashflowsinforeignjurisdictionsthanpreviously,whichweconsiderindefinitely
reinvested.TherepatriationofsuchfundsforuseintheUnitedStates,includingforcorporatepurposessuchasacquisitions,stockrepurchases,dividendsordebt
refinancings,mayresultinadditionalU.S.incometaxexpenseandhighercostforsuchcapital.
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.
Ourfuturesuccessdependsuponthecontinuedcontributionsofourseniorcorporatemanagementandotherkeyemployees.Inparticular,thecontributions
ofStephenKaufer,ourPresidentandChiefExecutiveOfficer,arecriticaltoouroverallmanagement.Wecannotensurethatwewillbeabletoretaintheservices
oftheseindividuals,andthelossofoneormoreofourkeypersonnelcouldseriouslyharmourbusiness.Wedonotmaintainanykeypersonlifeinsurancepolicies.
Inaddition,competitionremainsintenseforwell-qualifiedemployeesincertainaspectsofourbusiness,includingsoftwareengineers,developers,product
managementanddevelopmentpersonnel,andothertechnologyprofessionals.Ourcontinuedabilitytocompeteeffectivelydependsonourabilitytoattractnew
employeesandtoretainandmotivateexistingemployees.Ifwedonotsucceedinattractingwell-qualifiedemployeesorretainingormotivatingexisting
employees,ourbusinesswouldbeadverselyaffected.
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.
Ourbusinessandfinancialperformancecouldbeadverselyaffectedbyunfavorablechangesinorinterpretationsofexistinglaws,rulesandregulationsor
thepromulgationofnewlaws,rulesandregulationsapplicabletousandourbusiness,includingthoserelatingtotheInternetandonlinecommerce,Internet
advertising,consumerprotection,datasecurityandprivacy.Unfavorablechangescoulddecreasedemandforproductsandservices,limitmarketingmethodsand
capabilities,increasecostsand/orsubjectustoadditionalliabilities.
18