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Weestablishassetsandliabilitiesforthepresentvalueofestimatedfuturecoststoreturncertainofourleasedfacilitiestotheiroriginalconditionforasset
retirementobligations.Suchassetsaredepreciatedovertheleaseperiodintooperatingexpense,andtherecordedliabilitiesareaccretedtothefuturevalueofthe
estimatedrestorationcostsandareincludedinotherlong-termliabilitiesonourconsolidatedbalancesheet.
Business Combination Valuations and Recoverability of Goodwill and Indefinite-Lived Intangible Assets
Goodwill
Weaccountforacquiredbusinessesusingthepurchasemethodofaccountingwhichrequiresthattheassetsacquiredandliabilitiesassumedberecordedat
thedateofacquisitionattheirrespectivefairvalues.Anyexcessofthepurchasepriceovertheestimatedfairvaluesofthenetassetsacquiredisrecordedas
goodwill.Weassessgoodwill,whichisnotamortized,forimpairmentannuallyonOctober1,ormorefrequently,ifeventsandcircumstancesindicateimpairment
mayhaveoccurred.Wetestgoodwillforimpairmentatthereportingunitlevel(operatingsegmentoronelevelbelowanoperatingsegment).Eachofouroperating
segmentswithgoodwillrepresentsareportingunitforthepurposeofassessingimpairment.Goodwillisallocatedtoourreportingunitsatthedatethegoodwillis
initiallyrecorded.Oncegoodwillhasbeenallocatedtothereportingunits,itnolongerretainsitsidentificationwithaparticularacquisitionandbecomesidentified
withthereportingunitinitsentirety.Accordingly,thefairvalueofthereportingunitasawholeisavailabletosupporttherecoverabilityofitsgoodwill.
Intheevaluationofgoodwillforimpairment,wegenerallyfirstperformaqualitativeassessmenttodeterminewhetheritismorelikelythannot(i.e.,a
likelihoodofmorethan50%)thattheimpliedfairvalueofthereportingunitislessthanthecarryingamount.Ifwedeterminethatitisnotmorelikelythannotthat
theimpliedfairvalueofthegoodwillislessthanitscarryingamount,nofurthertestingisnecessary.If,however,wedeterminethatitismorelikelythannotthat
theimpliedfairvalueofthegoodwillislessthanitscarryingamount,wethenperformaquantitativeassessmentandcomparetheimpliedfairvalueofthe
reportingunittothecarryingvalue.Ifthecarryingvalueofareportingunitexceedsitsimpliedfairvalue,thegoodwillofthatreportingunitispotentiallyimpaired
andweproceedtosteptwooftheimpairmentanalysis.Insteptwooftheanalysis,wewillrecordanimpairmentlossequaltotheexcessofthecarryingvalueof
thereportingunit’sgoodwilloveritsimpliedfairvalueshouldsuchacircumstancearise.
In determining the estimated fair value of assets acquired and liabilities assumed in business combinations and for determining implied fair values of
reportingunitsinaquantitativegoodwillimpairmenttest,weuseone,orablend,ofthefollowingrecognizedvaluationmethods:theincomeapproach(including
discountedcashflows),themarketapproachorthecostapproach.Oursignificantestimatesinthosefairvaluemeasurementsincludeidentifyingbusinessfactors
suchassize,growth,profitability,riskandreturnoninvestmentandassessingcomparablerevenueand/oroperatingincomemultiples.Further,whenmeasuring
fairvaluebasedondiscountedcashflows,wemakeassumptionsaboutrisk-adjusteddiscountrates,futurepricelevels,ratesofincreaseinrevenue,costofrevenue,
andoperatingexpenses,weightedaveragecostofcapital,ratesoflong-termgrowth,andincometaxrates.Valuationsareperformedbymanagementorthirdparty
valuationspecialistsundermanagement'ssupervision,whereappropriate.Webelievethatthefairvaluesassignedtotheassetsacquiredandliabilitiesassumedin
business combinations and impairment tests are based on reasonable assumptions that marketplace participants would use. However, such assumptions are
inherentlyuncertainandactualresultscoulddifferfromthoseestimates.
Aspartofourqualitativeassessmentforour2015goodwillimpairmentanalysis,thefactorsthatweconsideredincluded,butwerenotlimitedto:
(a)changesinmacroeconomicconditionsintheoveralleconomyandthespecificmarketsinwhichweoperate,(b)ourabilitytoaccesscapital,(c)changesinthe
onlinetravelindustry,(d)changesinthelevelofcompetition,(e)comparisonofourcurrentfinancialperformancetohistoricalandbudgetedresults,and
(f)changesinexcessmarketcapitalizationoverbookvaluebasedonourcommonstockpriceandothermarketspecificinformation.Afterconsideringthesefactors
andtheimpactthatchangesinsuchfactorswouldhaveontheinputsusedinourpreviousquantitativeassessment,wedeterminedthatitwasmorelikelythannot
thatgoodwillwasnotimpairedforanyofourreportingunits.
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