TripAdvisor 2015 Annual Report Download - page 80
Download and view the complete annual report
Please find page 80 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.
(1) Goodwillintheamountof$5millionisexpectedtobedeductiblefortaxpurposes.
(2) Identifiabledefinite-livedintangibleassetsacquiredduring2014werecomprisedoftradenamesof$44millionwithaweightedaveragelifeof10years,
customerlistsandsupplierrelationshipsof$82millionwithanapproximateweightedaveragelifeof7years,subscriberrelationshipsof$25millionwitha
weightedaveragelifeof6yearsanddevelopedtechnologyandotherof$43millionwithanapproximateweightedaveragelifeof5years.Theoverall
weighted-averagelifeoftheidentifiabledefinite-livedintangibleassetsacquiredinthepurchaseofthecompaniesduring2014wasapproximately7years,
andwillbeamortizedonastraight-linebasisovertheirestimatedusefullivesfromacquisitiondate.
(3) Includesassetsacquired,includingcashof$62millionandaccountsreceivableof$25millionandliabilitiesassumed,includingdeferredmerchantpayables
of$76million,accruedexpensesandothercurrentliabilitiesof$15millionanddeferredrevenueof$5millionwhichreflecttheirrespectivefairvaluesat
acquisitiondate.
(4) Subjecttoadjustmentbasedonindemnificationobligationsforgeneralrepresentationsandwarrantiesoftheacquiredcompanystockholders.
2013 Acquisition of Businesses
DuringtheyearendedDecember31,2013,wecompletedsixacquisitionsforatotalpurchasepriceconsiderationof$40million,forwhichtheCompany
paidtotalcashconsiderationof$35million,netofcashacquiredof$3millionandapproximately$2millioninholdbacksforgeneralrepresentationsand
warrantiesoftherespectivesellers,whichhavesubsequentlybeenpaid.Thecashconsiderationwaspaidprimarilyfromourinternationalsubsidiaries.We
acquiredTinyPost,thedeveloperofaproductthatenablesuserstowriteoverphotosandturnthemintostories,Jetsetter,amembers-onlyprivatesalesiteforhotel
bookings;CruiseWise,acruiseresearchandplanningsite;Niumba,aSpain-basedvacationrentalsite;GateGuru,amobileappwithflightandairportinformation
aroundtheworld;Oyster,ahotelreviewwebsitefeaturingexpertreviewsandphotosaroundtheworld,allofwhichcomplementedourexistingbrandsinthose
areasofthetravelecosystem.Thepurchasepriceofour2013acquisitionsisconsideredfinal.
NOTE 4: STOCK BASED AWARDS AND OTHER EQUITY INSTRUMENTS
Stock-based Compensation Expense
Thefollowingtablepresentstheamountofstock-basedcompensationrelatedtostock-basedawards,primarilystockoptionsandRSUs,onourconsolidated
statementsofoperationsduringtheperiodspresented:
Year ended December 31,
2015 2014 2013
(in millions)
Sellingandmarketing $ 16 $ 13 $ 11
Technologyandcontent 28 27 21
Generalandadministrative 28 23 17
Totalstock-basedcompensationexpense 72 63 49
Incometaxbenefitfromstock-basedcompensationexpense (26) (24) (18)
Totalstock-basedcompensationexpense,netoftaxeffect $ 46 $ 39 $ 31
DuringtheyearsendedDecember31,2015,2014and2013,wecapitalized$8million,$8millionand$5million,respectively,ofstock-basedcompensation
expenseaswebsitedevelopmentcosts.
Stock and Incentive Plans
OnDecember20,2011,our2011StockandAnnualIncentivePlanbecameeffectiveandwefiledPost-EffectiveAmendmentNo.1onFormS-8to
RegistrationStatementonFormS-4(FileNo.333-178637)(the“PriorRegistrationStatement”)withtheSecuritiesandExchangeCommission(the
“Commission”),registeringatotalof17,500,000sharesofourcommonstock,ofwhich17,400,000shareswereissuableinconnectionwithgrantsofequity-based
awardsunderour2011IncentivePlan(7,400,000ofwhichshareswereoriginallyregisteredontheFormS-4and10,000,000ofwhichshareswerefirstregistered
onthePriorRegistrationStatement)and100,000shareswereissuableunderourDeferredCompensationPlanforNon-EmployeeDirectors(referto“Note13—
Employee Benefit Plans” belowforinformationonourDeferredCompensationPlanforNon-EmployeeDirectors).
AtourannualmeetingofstockholdersheldonJune28,2013(the“AnnualMeeting”),ourstockholdersapprovedanamendmenttoour2011Stockand
AnnualIncentivePlanto,amongotherthings,increasetheaggregatenumberofsharesofcommonstockauthorizedforissuancethereunderby15,000,000shares.
Werefertoour2011StockandAnnualIncentivePlan,asamendedbytheamendmentasthe“2011IncentivePlan.”
77