TripAdvisor 2015 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2015 TripAdvisor annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

Total
Goodwill  $ 17
Intangibleassets(1)   12
Nettangibleassets   1
Deferredtaxliabilities,net   (2)
Totalpurchasepriceconsideration(2)  $ 28
(1) Identifiabledefinite-livedintangibleassetsacquiredduring2015werecomprisedoftradenamesof$2millionwithaweightedaveragelifeof
approximately10years,customerlistsandsupplierrelationshipsof$7millionwithaweightedaveragelifeofapproximately6yearsandtechnologyand
otherof$3millionwithaweightedaveragelifeofapproximately2years.Theoverallweighted-averagelifeoftheidentifiabledefinite-livedintangible
assetsacquiredinthepurchaseofthesebusinessesduring2015was6years,andwillbeamortizedonastraight-linebasisovertheirestimateduseful
livesfromacquisitiondate.
(2) Subjecttoadjustmentbasedonindemnificationobligationsforgeneralrepresentationsandwarrantiesoftheacquiredcompanystockholders.
2015 Sale of Business
InAugust2015,wesold100%interestinoneofourChinesesubsidiariestoanunrelatedthirdpartyfor$28millionincashconsideration.Accordingly,we
deconsolidated$11millionofassets(whichincluded$3millionofcashsold)and$4millionofliabilitiesfromourconsolidatedbalancesheetandrecognizeda$20
milliongainonsaleofsubsidiaryinourconsolidatedstatementsofoperationsin“Interestincomeandother,net”duringtheyearendedDecember31,2015.
2014 Acquisition of Businesses
InAugust2014,wecompletedouracquisitionofViator,Inc.Viator,whichisheadquarteredinSanFranciscoandhasofficesinLasVegas,London,and
Sydney,isaleadingresourceforresearchingandbookingdestinationactivitiesaroundtheworld.Ourtotalpurchasepricewas$192million,foralltheoutstanding
sharesofcapitalstockofViator,consistingofapproximately$187millionincashconsideration(or$132million,netofcashacquiredfromViatorof$55million)
andthevalueofcertainViatorstockoptionsthatwereassumed.Weissued100,595TripAdvisorstockoptionsrelatedtotheassumedViatorstockoptions.Thefair
valueoftheearnedportionofassumedstockoptionswas$5millionandisincludedinthepurchaseprice,withtheremainingfairvalueof$3millionresultingin
post-acquisitioncompensationexpensethatwillgenerallyberecognizedratablyoverthreeyearsfromthedateofacquisition.Thetotalcashconsiderationwas
paidfromoneofourU.S.basedsubsidiaries.
DuringtheyearendedDecember31,2014,wecompletedsixotheracquisitionsforatotalpurchasepriceconsiderationof$208million,forwhichthe
Companypaidtotalcashconsiderationof$199million,whichisnetofcashacquiredof$7millionandapproximately$2millioninholdbacksforgeneral
representationsandwarrantiesoftherespectivesellers,ofwhich$1millionwaspaidin2015.Thecashconsiderationwaspaidprimarilyfromourinternational
subsidiaries.Weacquired100%oftheoutstandingsharesofcapitalstockforthefollowingcompanies;VacationHomeRentals,aU.S.-basedvacationrental
websitefeaturingpropertiesaroundtheworldpurchasedinMay2014;London-basedTripbod,atravelcommunitythathelpsconnecttravelerstolocalexperts
purchasedinMay2014;Lafourchette,aproviderofanonlineandmobilereservationsplatformforrestaurantsinEuropepurchasedinMay2014;MyTableand
Restopolis,bothprovidersofanonlineandmobilereservationsplatformforrestaurantsinItalypurchasedinOctober2014;andIens,aproviderofanonlineand
mobilereservationsplatformforrestaurantsintheNetherlandspurchasedinDecember2014.During2014,all2014acquisitionsaccountedforapproximately3%
ofconsolidatedrevenuefortheyear.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havebeenmateriallydifferentfromhistoricalresults.
Thefollowingtablepresentsthepurchasepriceallocationsrecordedonourconsolidatedbalancesheetforall2014acquisitions(inmillions):
Total
Goodwill(1)  $ 253
Intangibleassets(2)   194
Nettangibleassets(liabilities)(3)   (7)
Deferredtaxliabilities,net   (40)
Totalpurchasepriceconsideration(4)  $ 400
76