TripAdvisor 2015 Annual Report Download - page 77

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BelowisareconciliationoftheweightedaveragenumberofsharesofcommonstockoutstandingincalculatingDilutedEPS(sharesinthousandsand
dollarsinmillions,exceptpershareamounts)fortheperiodspresented:
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Year ended December 31,
  2015 2014 2013
Numerator:            
Netincome  $ 198  $ 226  $ 205
Denominator:         
Weightedaveragesharesusedtocompute
BasicEPS   143,836   142,721   142,854
Weightedaverageeffectofdilutive
securities:         
Stockoptions   1,839   2,734   2,131
RSUs   292   345   278
Weightedaveragesharesusedtocompute
DilutedEPS   145,967   145,800   145,263
BasicEPS  $ 1.38  $ 1.58  $ 1.44
DilutedEPS  $ 1.36  $ 1.55  $ 1.41
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ThefollowingpotentialcommonsharesrelatedtostockoptionsandRSUswereexcludedfromthecalculationofDilutedEPSbecausetheireffectwould
havebeenanti-dilutivefortheperiodspresented:
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Year ended December 31,
  2015(1) 2014(2) 2013(3)
Stockoptions   2,142   1,450   2,244
RSUs   562  191  27
Total   2,704   1,641   2,271
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(1) Thesetotalsdonotinclude66,666performancebasedoptionsand12,799performancebasedRSUsrepresentingtherighttoacquire79,465sharesof
commonstockforwhichalltargetsrequiredtotriggervestinghadnotbeenachieved;therefore,suchawardswereexcludedfromthecalculationof
weightedaveragesharesusedtocomputeDilutedEPSforthosereportingperiods.
(2) Thesetotalsdonotinclude66,666performancebasedoptionsand44,000performancebasedRSUsrepresentingtherighttoacquire110,666sharesof
commonstockforwhichalltargetsrequiredtotriggervestinghadnotbeenachieved;therefore,suchawardswereexcludedfromthecalculationof
weightedaveragesharesusedtocomputeDilutedEPSforthosereportingperiods.
(3) Thesetotalsdonotinclude155,000performancebasedoptionsand44,000performancebasedRSUsrepresentingtherighttoacquire199,000sharesof
commonstock,respectively,forwhichalltargetsrequiredtotriggervestinghadnotbeenachieved;therefore,suchawardswereexcludedfromthe
calculationofweightedaveragesharesusedtocomputeDilutedEPSforthosereportingperiods.
TheearningspershareamountsarethesameforcommonstockandClassBcommonstockbecausetheholdersofeachclassarelegallyentitledtoequalper
sharedistributionswhetherthroughdividendsorinliquidation.
New Accounting Pronouncements Not Yet Adopted
InSeptember2015,theFinancialAccountingStandardsBoard(“FASB”)issuednewaccountingguidancewhicheliminatestherequirementforanacquirer
inabusinesscombinationtoaccountformeasurement-periodadjustmentsretrospectively.Instead,acquirersmustrecognizemeasurement-periodadjustments
duringtheperiodinwhichtheydeterminetheamounts,includingtheeffectonearningsofanyamountsthatwouldhavebeenrecordedinpreviousperiodsifthe
accountinghadbeencompletedattheacquisitiondate.ThisupdateiseffectiveforinterimandannualperiodsbeginningafterDecember15,2015,withearly
adoptionpermitted.Theplannedadoptionofthisguidancein2016isnotexpectedtohaveamaterialimpactonourconsolidatedfinancialstatementsandrelated
disclosures.
InMay2014,theFASBissuednewaccountingguidanceonrevenuefromcontractswithcustomers.Thenewguidancerequiresanentitytorecognizethe
amountofrevenuetowhichitexpectstobeentitledforthetransferofpromisedgoodsorservicestocustomers.Theupdatedguidancewillreplacemostexisting
revenuerecognitionguidanceinGAAPwhenitbecomeseffectiveandpermitstheuseofeitherafullretrospectiveapproachoramodifiedretrospectiveapproach,
whichrequirestheinitialcumulativeeffecttoberecognizedatthedateofinitialapplication.Thisguidanceiseffectiveforfiscalyears,andinterimperiodswithin
thosefiscalyears,beginningafterDecember15,2017andearlyadoptionispermittedforfiscalyearsbeginningafterDecember15,2016.We
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