TripAdvisor 2015 Annual Report Download - page 80

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(1) Goodwillintheamountof$5millionisexpectedtobedeductiblefortaxpurposes.
(2) Identifiabledefinite-livedintangibleassetsacquiredduring2014werecomprisedoftradenamesof$44millionwithaweightedaveragelifeof10years,
customerlistsandsupplierrelationshipsof$82millionwithanapproximateweightedaveragelifeof7years,subscriberrelationshipsof$25millionwitha
weightedaveragelifeof6yearsanddevelopedtechnologyandotherof$43millionwithanapproximateweightedaveragelifeof5years.Theoverall
weighted-averagelifeoftheidentifiabledefinite-livedintangibleassetsacquiredinthepurchaseofthecompaniesduring2014wasapproximately7years,
andwillbeamortizedonastraight-linebasisovertheirestimatedusefullivesfromacquisitiondate.
(3) Includesassetsacquired,includingcashof$62millionandaccountsreceivableof$25millionandliabilitiesassumed,includingdeferredmerchantpayables
of$76million,accruedexpensesandothercurrentliabilitiesof$15millionanddeferredrevenueof$5millionwhichreflecttheirrespectivefairvaluesat
acquisitiondate.
(4) Subjecttoadjustmentbasedonindemnificationobligationsforgeneralrepresentationsandwarrantiesoftheacquiredcompanystockholders.
2013 Acquisition of Businesses
DuringtheyearendedDecember31,2013,wecompletedsixacquisitionsforatotalpurchasepriceconsiderationof$40million,forwhichtheCompany
paidtotalcashconsiderationof$35million,netofcashacquiredof$3millionandapproximately$2millioninholdbacksforgeneralrepresentationsand
warrantiesoftherespectivesellers,whichhavesubsequentlybeenpaid.Thecashconsiderationwaspaidprimarilyfromourinternationalsubsidiaries.We
acquiredTinyPost,thedeveloperofaproductthatenablesuserstowriteoverphotosandturnthemintostories,Jetsetter,amembers-onlyprivatesalesiteforhotel
bookings;CruiseWise,acruiseresearchandplanningsite;Niumba,aSpain-basedvacationrentalsite;GateGuru,amobileappwithflightandairportinformation
aroundtheworld;Oyster,ahotelreviewwebsitefeaturingexpertreviewsandphotosaroundtheworld,allofwhichcomplementedourexistingbrandsinthose
areasofthetravelecosystem.Thepurchasepriceofour2013acquisitionsisconsideredfinal.

NOTE 4: STOCK BASED AWARDS AND OTHER EQUITY INSTRUMENTS
Stock-based Compensation Expense
Thefollowingtablepresentstheamountofstock-basedcompensationrelatedtostock-basedawards,primarilystockoptionsandRSUs,onourconsolidated
statementsofoperationsduringtheperiodspresented:
Year ended December 31,
2015 2014 2013
(in millions)
Sellingandmarketing  $ 16  $ 13  $ 11
Technologyandcontent 28  27  21
Generalandadministrative 28  23  17
Totalstock-basedcompensationexpense 72  63  49
Incometaxbenefitfromstock-basedcompensationexpense (26)  (24)  (18)
Totalstock-basedcompensationexpense,netoftaxeffect $ 46  $ 39  $ 31
DuringtheyearsendedDecember31,2015,2014and2013,wecapitalized$8million,$8millionand$5million,respectively,ofstock-basedcompensation
expenseaswebsitedevelopmentcosts.
Stock and Incentive Plans
OnDecember20,2011,our2011StockandAnnualIncentivePlanbecameeffectiveandwefiledPost-EffectiveAmendmentNo.1onFormS-8to
RegistrationStatementonFormS-4(FileNo.333-178637)(the“PriorRegistrationStatement”)withtheSecuritiesandExchangeCommission(the
“Commission”),registeringatotalof17,500,000sharesofourcommonstock,ofwhich17,400,000shareswereissuableinconnectionwithgrantsofequity-based
awardsunderour2011IncentivePlan(7,400,000ofwhichshareswereoriginallyregisteredontheFormS-4and10,000,000ofwhichshareswerefirstregistered
onthePriorRegistrationStatement)and100,000shareswereissuableunderourDeferredCompensationPlanforNon-EmployeeDirectors(referto“Note13—
Employee Benefit Plans” belowforinformationonourDeferredCompensationPlanforNon-EmployeeDirectors).
AtourannualmeetingofstockholdersheldonJune28,2013(the“AnnualMeeting”),ourstockholdersapprovedanamendmenttoour2011Stockand
AnnualIncentivePlanto,amongotherthings,increasetheaggregatenumberofsharesofcommonstockauthorizedforissuancethereunderby15,000,000shares.
Werefertoour2011StockandAnnualIncentivePlan,asamendedbytheamendmentasthe“2011IncentivePlan.”
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