TripAdvisor 2015 Annual Report Download - page 85
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liabilities.Uponcompletionofconstructionattheendofthesecondquarterof2015,thisassetwasreclassifiedtoabuildingassetandwebegan
depreciatingitoveranestimatedusefullifeof40yearsonastraight-linebasis.Referto“Note12–Commitments and Contingencies ,”foradditional
informationonourcorporateheadquarterslease.
AsofDecember31,2015and2014,ourrecordedcapitalizedsoftwareandwebsitedevelopmentcosts,netofaccumulatedamortization,were$71million
and$61million,respectively.FortheyearsendedDecember31,2015and2014,wecapitalized$52millionand$47million,respectively,relatedtosoftwareand
websitedevelopmentcosts.FortheyearsendedDecember31,2015,2014and2013,werecordedamortizationofcapitalizedsoftwareandwebsitedevelopment
costsof$37million,$30millionand$20million,respectively,whichisincludedindepreciationexpenseonourconsolidatedstatementsofoperationsforthose
years.
DuringtheyearendedDecember31,2015,weretiredanddisposedofpropertyandequipment,primarilycapitalizedsoftwareandwebsitedevelopmentand
leaseholdimprovements,whichwerenolongerinuseandfullydepreciatedwithatotalcostof$39million.
NOTE 7: GOODWILL AND INTANGIBLE ASSETS, NET
Thefollowingtablesummarizesourgoodwillactivitybysegmentfortheperiodspresented:
TripAdvisor Hotel Other Consolidated
(in millions)
BalanceasofDecember31,2013 $ 502 $ - $ - $ 502
Acquisitions(1) 253 - - 253
Otheradjustments(2) (21) - - (21)
Allocationtonewsegments(3) (734) 442 292 -
BalanceasofDecember31,2014 $ - $ 442 $ 292 $ 734
Acquisitions(1) - 1 16 17
Disposition - (1) - (1)
Otheradjustments(2) - - (18) (18)
EndingbalanceasofDecember31,2015 $ - $ 442 $ 290 $ 732
(1) Theadditionstogoodwillrelatetoourbusinessacquisitions.See“Note3—Acquisitions and Dispositions ,”forfurtherinformation.
(2) Primarilyrelatedtoimpactofchangesinforeignexchangeratestogoodwill.
(3) Reflectsinitialallocationofgoodwillrelatedtoourreportingsegmentchangesinthefourthquarterof2014.See“Note16—Segment and Geographic
Information ”forinformationonoursegments.
Intangibleassets,whichwereacquiredinbusinesscombinationsandrecordedatfairvalueonthedateofpurchase,consistofthefollowingfortheperiods
presented:
December 31,
2015 2014
(in millions)
Intangibleassetswithdefinitelives $ 198 $ 202
Less:accumulatedamortization (52) (18)
Intangibleassetswithdefinitelives,net 146 184
Intangibleassetswithindefinitelives 30 30
Total $ 176 $ 214
Amortizationexpensewas$36million,$18million,and$6million,respectively,fortheyearsendedDecember31,2015,2014and2013.Ourindefinite-
livedassetsrelatetotradenamesandtrademarks.
TherewerenoimpairmentchargesrecognizedtoourconsolidatedstatementofoperationsduringtheyearsendedDecember31,2015,2014and2013
relatedtoourgoodwillorindefinite-livedintangibleassets.
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