TripAdvisor 2015 Annual Report Download - page 45
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2014 vs. 2013
Generalandadministrativecostsincreased$30millionduringtheyearendedDecember31,2014,whencomparedtothesameperiodin2013,primarilydue
topersonnelcostsandoverheadcostsrelatedtoanincreaseinheadcounttosupportourbusinessoperations,aswellasadditionalpersonnelcostsrelatedto
employeesjoiningusthroughrecentbusinessacquisitionsandprofessionalfeesprimarilyrelatedtoour2014businessacquisitions,highercharitablecontributions
andincreasedbaddebtexpense.Intotal,ourAttractionandRestaurantbusinessescontributed$8milliontoourgeneralandadministrativeexpensesin2014,of
which$5millionrelatedtopersonnelandoverhead.
Depreciation
Depreciationexpenseconsistsofdepreciationoncomputerequipment,leaseholdimprovements,furniture,officeequipmentandotherassets,ourcorporate
headquartersbuildingandamortizationofcapitalizedsoftwareandwebsitedevelopmentcosts.
Year ended December 31,
2015 2014 2013
(in millions)
Depreciation $ 57 $ 47 $ 30
%ofrevenue 3.8% 3.8% 3.2%
Depreciationexpenseincreased$10millionduringtheyearendedDecember31,2015whencomparedtothesameperiodin2014,andincreased$17
millionduringtheyearendedDecember31,2014whencomparedtothesameperiodin2013,primarilyduetoincreasedamortizationrelatedtocapitalized
softwareandwebsitedevelopmentcostsanddepreciationonourcorporateheadquartersbuilding.
Amortization of Intangible Assets
Amortizationconsistsoftheamortizationofpurchaseddefinite-livedintangibles.
Year ended December 31,
2015 2014 2013
(in millions)
Amortizationofintangibleassets $ 36 $ 18 $ 6
%ofrevenue 2.4% 1.4% 0.6%
Amortizationofintangibleassetsincreased$18millionduringtheyearendedDecember31,2015whencomparedtothesameperiodin2014,andincreased
$12millionduringtheyearendedDecember31,2014whencomparedtothesameperiodin2013,primarilyduetoincrementalamortizationfrompurchased
definitelivedintangiblesrelatedtoour2014businessacquisitions.Referto“Note3—Acquisitions and Dispositions ”inthenotestoourconsolidatedfinancial
statementsinItem8foradditionalinformationonouracquisitions.
Interest Expense
Interestexpenseprimarilyconsistsofinterestincurred,commitmentfeesanddebtissuancecostamortizationrelatedtoour2011CreditFacility,2015
CreditFacility,andChineseCreditFacilities(assuch,facilitiesaredescribedingreaterdetailbelow),aswellasinterestonourfinancingobligationrelatedtoour
corporateheadquarters.
Year ended December 31,
2015 2014 2013
(in millions)
Interestexpense $ (10) $ (9) $ (10)
Interestexpenseincreased$1millionduringtheyearendedDecember31,2015whencomparedtothesameperiodin2014,primarilyduetointerest
imputedonourfinancingobligationrelatedtoourcorporateheadquartersleaseofapproximately$4millionin2015,partiallyoffsetbyadecreaseininterest
incurredduetoloweraverageoutstandingborrowingsduring2015.InterestexpensedidnotmateriallychangeduringtheyearendedDecember31,2014,when
comparedtothesameperiodin2013.Referto“Note8—Debt ”and“Note12—Commitments and Contingencies ”inthenotestoourconsolidatedfinancial
statementsinItem8foradditionalinformationonouroutstandingborrowingfacilitiesandourfinancingobligationrelatedtoourcorporateheadquarters,
respectively.
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