TripAdvisor 2015 Annual Report Download - page 67

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TRIPADVISOR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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NOTE 1: ORGANIZATION AND BUSINESS DESCRIPTION
WerefertoTripAdvisor,Inc.andourwholly-ownedsubsidiariesas“TripAdvisor,”“theCompany,”“us,”“we”and“our”inthesenotestotheconsolidated
financialstatements.
OnDecember20,2011Expedia,Inc.completedaspin-offofTripAdvisorintoaseparatepubliclytradedDelawarecorporation.Werefertothistransaction
asthe“Spin-Off.”TripAdvisor’scommonstockbegantradingontheNASDAQasanindependentpubliccompanyonDecember21,2011underthetrading
symbol“TRIP.”
OnDecember11,2012,LibertyInteractiveCorporation,orLiberty,purchasedanaggregateof4,799,848sharesofcommonstockofTripAdvisorfrom
BarryDiller,ourformerChairmanoftheBoardofDirectorsandSeniorExecutive,andcertainofhisaffiliates(the“StockPurchase”).Asaresult,Liberty
beneficiallyowned18,159,752sharesofourcommonstockand12,799,999sharesofourClassBcommonstock.
OnAugust27,2014,theentirebeneficialownershipofourcommonstockandClassBcommonstockheldbyLibertywasindirectlyacquiredbyLiberty
TripAdvisorHoldings,Inc.(“LTRIP”)bymeansofaspin-off(the“LibertySpin-Off”).IntheLibertySpin-Off,Liberty,LTRIP’sformerparentcompany,
distributed,bymeansofadividend,totheholdersofitsLibertyVenturescommonstock,Liberty’sentireequityinterestinLTRIP.AsaresultoftheLibertySpin-
Off,LTRIPbecameaseparate,publiclytradedcompanyand100%ofLiberty’sinterestinTripAdvisorisnowheldbyLTRIP.
AsofDecember31,2015,LTRIPbeneficiallyowned18,159,752sharesofourcommonstockand12,799,999sharesofourClassBcommonstock,which
sharesconstitute13.7%oftheoutstandingsharesofCommonStockand100%oftheoutstandingsharesofClassBcommonstock.Assumingtheconversionofall
ofLTRIP’ssharesofClassBcommonstockintocommonstock,LTRIPwouldbeneficiallyown21.3%oftheoutstandingcommonstock(calculatedinaccordance
withRule13d-3).BecauseeachshareofClassBcommonstockgenerallyisentitledtotenvotespershareandeachshareofcommonstockisentitledtoonevote
pershare,LTRIPmaybedeemedtobeneficiallyownequitysecuritiesrepresentingapproximately56.1%ofourvotingpower.
Description of Business
TripAdvisorisanonlinetravelcompany,empoweringuserstoplanandbooktheperfecttrip.TripAdvisor’stravelresearchplatformaggregatesreviewsand
opinionsofmembersaboutdestinations,accommodations,activitiesandattractions,andrestaurantsthroughouttheworldsothatourusershaveaccesstotrusted
advicewherevertheirtripstakethem.Ourplatformnotonlyhelpsusersplantheirtripswithouruniqueuser-generatedcontent,butalsoenablesuserstocompare
real-timepricingandavailabilitysothattheycanbookhotels,vacationrentals,flights,activitiesandattractions,andrestaurants.
OurflagshipbrandisTripAdvisor.TripAdvisor-brandedwebsitesincludetripadvisor.comintheUnitedStatesandlocalizedversionsofthewebsitein46
countriesworldwide.InadditiontotheflagshipTripAdvisorbrand,wemanageandoperate23othermediabrands,connectedbythecommongoalofproviding
comprehensivetravelplanningresourcesacrossthetravelsector,whichinclude;www.airfarewatchdog.com,www.bookingbuddy.com,www.cruisecritic.com,
www.everytrail.com,www.familyvacationcritic.com,www.flipkey.com,www.gateguru.com,www.holidaylettings.co.uk,www.holidaywatchdog.com,
www.independenttraveler.com,www.jetsetter.com,www.thefork.com(includingwww.lafourchette.com,www.eltenedor.com,www.iens.nl,www.besttables.com,
andwww.dimmi.com.au),www.niumba.com,www.onetime.com,www.oyster.com,www.seatguru.com,www.smartertravel.com,
www.tingo.com,www.travelpod.com,www.tripbod.com,www.vacationhomerentals.com,www.viator.com,andwww.virtualtourist.com.
Wederivethesubstantialportionofourrevenuethroughthesaleofadvertising,primarilythroughclick-basedadvertisingand,toalesserextent,display-
basedadvertising.Inaddition,weearnrevenuefromacombinationof:subscription-basedandtransaction-basedofferingsfromourBusinessListingsproducts;
subscriptionandcommission-basedofferingsfromourVacationRentalsproducts;roomreservationssoldthroughourJetsetterandTingobrands;destination
activitiesprimarilysoldthroughViator;andonlinerestaurantreservationsbookedprimarilythroughLafourchette,orthefork.com.
Wehavetworeportablesegments:HotelandOther.OurOthersegmentconsistsoftheaggregationofthreeoperatingsegments,whichincludeourVacation
Rentals,RestaurantsandAttractionsbusinesses.Ouroperatingsegmentsaredeterminedbasedonhowourchiefoperatingdecisionmakermanagesourbusiness,
regularlyassessesinformationandevaluatesperformanceforoperatingdecision-makingpurposes,includingallocationofresources.Forfurtherinformationon
ourreportablesegmentssee“Note16 — Segment and Geographic Information ,”inthenotestoourconsolidatedfinancialstatements.
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