TripAdvisor 2015 Annual Report Download - page 53

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(b)ourabilitytoaccesscapital,(c)changesintheonlinetravelindustry,(d)changesinthelevelofcompetition,(e)comparisonofourcurrentfinancial
performancetohistoricalandbudgetedresults,and(f)changesinexcessmarketcapitalizationoverbookvaluebasedonourcommonstockpriceandothermarket
specificinformation.Afterconsideringthesefactorsandtheimpactthatchangesinsuchfactorswouldhaveontheinputsusedinourpreviousquantitativeas
sessment,wedeterminedthatitwasmorelikelythannotthatgoodwillwasnotimpairedforanyofourreportingunits.
Indefinite-Lived Intangible Assets. IntangibleassetsthathaveindefinitelivesarenotamortizedandaretestedforimpairmentannuallyonOctober1,or
whenevereventsorchangesincircumstancesindicatethatthecarryingvaluemaynotberecoverable.Similartothequalitativeassessmentforgoodwill,wemay
assessqualitativefactorstodetermineifitismorelikelythannotthattheimpliedfairvalueoftheindefinite-livedintangibleassetislessthanitscarrying
amount.Ifwedeterminethatitisnotmorelikelythannotthattheimpliedfairvalueoftheindefinite-livedintangibleassetislessthanitscarryingamount,no
furthertestingisnecessary.If,however,wedeterminethatitismorelikelythannotthattheimpliedfairvalueoftheindefinite-livedintangibleassetislessthanits
carryingamount,wecomparetheimpliedfairvalueoftheindefinite-livedassetwithitscarryingamount.Ifthecarryingvalueofanindividualindefinite-lived
intangibleassetexceedsitsimpliedfairvalue,theindividualassetiswrittendownbyanamountequaltosuchexcess.Theassessmentofqualitativefactorsis
optionalandatourdiscretion.Wemaybypassthequalitativeassessmentforanyindefinite-livedintangibleassetinanyperiodandresumeperformingthe
qualitativeassessmentinanysubsequentperiod.
Aspartofourqualitativeassessmentforour2015impairmentanalysis,thefactorsthatweconsideredforourindefinite-livedintangibleassetsincluded,but
werenotlimitedto:(a)changesinmacroeconomicconditionsintheoveralleconomyandthespecificmarketsinwhichweoperate,(b)ourabilitytoaccesscapital,
(c)changesintheonlinetravelindustry,(d)changesinthelevelofcompetition,(e)comparisonofourcurrentfinancialperformancetohistoricalandbudgeted
results,(f)changesinexcessmarketcapitalizationoverbookvaluebasedonourcommonstockprice,and(g)theamountofexcessofthefairvalueofourtrade
namesandtrademarkstothecarryingvalueofthosesameassets,usingtheresultsofourmostrecentquantitativeassessment.Afterconsideringthesefactorsand
theimpactthatchangesinsuchfactorswouldhaveontheinputsusedinourpreviousquantitativeassessment,wedeterminedthatitwasmorelikelythannotthat
theseassetswerenotimpaired.
TherewerenoimpairmentchargesrecognizedtoourconsolidatedstatementsofoperationsduringtheyearsendedDecember31,2015,2014and2013
relatedtoourgoodwillandindefinitelivedintangibleassets.
Definite-Lived Intangible Assets and Other Long-Lived Assets .Intangibleassetswithdefinitelivesandotherlong-livedassetsarecarriedatcostandare
amortizedonastraight-linebasisovertheirestimatedusefullivesofonetotwelveyears.Thestraight-linemethodofamortizationiscurrentlyusedforourdefinite-
livedintangibleassetsasitapproximates,orisourbestestimate,ofthedistributionoftheeconomicuseofouridentifiableintangibleassets.Wereviewthe
carryingvalueoflong-livedassetsorassetgroups,includingpropertyandequipment,tobeusedinoperationswhenevereventsorchangesincircumstances
indicatethatthecarryingamountoftheassetsmightnotberecoverable.
Factorsthatwouldnecessitateanimpairmentassessmentincludeasignificantadversechangeintheextentormannerinwhichanassetisused,asignificant
adversechangeinlegalfactorsorthebusinessclimatethatcouldaffectthevalueoftheasset,orasignificantdeclineintheobservablemarketvalueofanasset,
amongothers.Ifsuchfactsindicateapotentialimpairment,weassesstherecoverabilityoftheassetbydeterminingifthecarryingvalueoftheassetexceedsthe
sumoftheprojectedundiscountedcashflowsexpectedtoresultfromtheuseandeventualdispositionoftheassetovertheremainingeconomiclifeoftheprimary
assetofthegroup.Iftherecoverabilitytestindicatesthatthecarryingvalueoftheassetisnotrecoverable,wewillestimatethefairvalueoftheassetusing
appropriatevaluationmethodologieswhichwouldtypicallyincludeanestimateofdiscountedcashflows.Anyimpairmentwouldbemeasuredbytheamountthat
thecarryingvalueofsuchassetsexceedstheirfairvalueandwouldbeincludedinoperatingincomeontheconsolidatedstatementofoperations.Wehavenot
identifiedanycircumstancesthatwouldwarrantanimpairmentchargeofanyrecordedassetsinourconsolidatedbalancesheetatDecember31,2015.
Theuseofdifferentestimatesorassumptionsindeterminingthefairvalueofourgoodwill,indefinite-livedanddefinite-livedintangibleassetsmayresultin
differentvaluesfortheseassets,whichcouldresultindifferentfairvaluesatthedateofacquisitionorinanimpairmentor,inperiodinwhichanimpairmentis
recognized,couldresultinamateriallydifferentimpairmentcharge.
Foradditionalinformationonourgoodwill,indefinite-livedintangiblesanddefinite-livedintangiblesreferto“Note7—Goodwill and Intangible Assets,
Net ”inthenotestoourconsolidatedfinancialstatementsinItem8.
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