TripAdvisor 2015 Annual Report Download - page 78

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havenotyetselectedatransitionmethodandwearecurrentlyevaluatingtheeffectthattheupdatedstandardwillhaveonourconsolidatedfinancialstatementsor
relateddisclosures.
Recently Adopted Accounting Pronouncements
InNovember2015,theFASBissuednewaccountingguidancewhichrequiresanentitytopresentdeferredtaxassetsanddeferredtaxliabilitiesas
noncurrentontheconsolidatedbalancesheet.ThisguidanceiseffectiveforfiscalyearsbeginningafterDecember15,2016,withearlyadoptionpermitted.The
Companyhasearlyadoptedthisguidanceandhasappliedtherequirementsretrospectivelytoallperiodspresented.Theadoptionofthisguidanceresultedinthe
reclassificationof$10millionfromcurrentdeferredincometaxassetstononcurrentdeferredincometaxliabilitiesontheconsolidatedbalancesheetasof
December31,2014.
InApril2015,theFASBissuednewaccountingguidancewhichrequiresdebtissuancecostsrelatedtoarecognizeddebtliabilitybepresentedinthe
balancesheetasadirectdeductionfromthecarryingamountoftherelateddebtliabilityinsteadofbeingpresentedasanasset.Debtdisclosureswillincludethe
faceamountofthedebtliabilityandtheeffectiveinterestrate.InAugust2015,additionalaccountingguidancewasissuedonthistopicthatclarifiestheApril2015
guidancefordebtissuancecostsassociatedwithline-of-creditarrangements,whichstatestheFASBwouldnotobjecttothecontinueddeferralandpresentationof
debtissuancecostsasanasset,whichwouldbesubsequentlyamortizedoverthetermofthearrangement.Thisguidanceiseffectiveforfiscalyears,andthe
interimperiodswithinthosefiscalyears,beginningafterDecember15,2015,withearlyapplicationpermitted.TheCompanyhasearlyadoptedthisguidance.The
retrospectiveapplicationofthisguidancedecreased“Otherlong-termassets”and“Long-termdebt”by$1millionontheconsolidatedbalancesheetasof
December31,2014.Referto“Note8—Debt ”belowforthecurrentyearpresentation.
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NOTE 3: ACQUISITIONS AND DISPOSITIONS
WeacquiredanumberofbusinessesduringtheyearsendedDecember31,2015,2014and2013.Thesebusinesscombinationswereaccountedforas
purchasesofbusinessesundertheacquisitionmethod.Thefairvalueofpurchaseconsiderationhasbeenallocatedtotangibleandidentifiableintangibleassets
acquiredandliabilitiesassumed,basedontheirrespectivefairvaluesontheacquisitiondate,withtheremainingamountrecordedtogoodwill.Acquiredgoodwill
representsthepremiumwepaidoverthefairvalueofthenettangibleandintangibleassetsacquired.Wepaidapremiumineachofthesetransactionsforanumber
ofreasons,includingexpectedoperationalsynergies,theassembledworkforces,andthefuturedevelopmentinitiativesoftheassembledworkforces.Theresultsof
eachoftheseacquiredbusinesseshavebeenincludedintheconsolidatedfinancialstatementsbeginningontherespectiveacquisitiondates.Fortheyearsended
December31,2015,2014and2013,acquisition-relatedcostswereexpensedasincurredandwere$1million,$4millionand$2million,respectively,andare
includedingeneralandadministrativeexpensesonourconsolidatedstatementsofoperations.
2015 Acquisition of Businesses
DuringtheyearendedDecember31,2015,wecompletedthreeacquisitionsforatotalpurchasepriceconsiderationof$28millionandpaidincash.The
cashconsiderationwaspaidprimarilyfromourinternationalsubsidiaries.Weacquired100%oftheoutstandingcapitalstockofthefollowingcompanies:ZeTrip,a
personaljournalappthathelpsuserslogactivities,includingplacestheyhavevisitedandphotostheyhavetaken,purchasedinJanuary2015;BestTables,a
providerofanonlineandmobilereservationsplatformforrestaurantsinPortugalandBrazil,purchasedinMarch2015;andDimmi,aproviderofanonlineand
mobilereservationsplatformforrestaurantsinAustralia,purchasedinMay2015.
Thepurchasepriceallocationofour2015acquisitionsispreliminaryandsubjecttorevisionasmoreinformationbecomesavailable,butinanycasewill
notberevisedbeyondtwelvemonthsaftertheacquisitiondateandanychangetothefairvalueofassetsacquiredorliabilitiesassumedwillleadtoacorresponding
changetothepurchasepriceallocabletogoodwillonaretroactivebasis.Theprimaryareaofthepurchasepriceallocationwhichisnotyetfinalizedisrelatedto
incometaxnetoperatinglossesforall2015acquisitions.Acquiredgoodwillrelatedtoour2015acquisitionswasprimarilyallocatedtoourOthersegmentandis
notdeductiblefortaxpurposes.Pro-formaresultsofoperationsfortheseacquisitionshavenotbeenpresentedasthefinancialimpacttoourconsolidatedfinancial
statements,bothindividuallyandinaggregate,wouldnotbemateriallydifferentfromhistoricalresults.
Thefollowingtablepresentsthepurchasepriceallocationsrecordedonourconsolidatedbalancesheetforall2015acquisitions(inmillions):
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75