TripAdvisor 2015 Annual Report Download - page 96
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Dividends
DuringtheyearsendedDecember31,2015,2014and2013,ourBoardofDirectorsdidnotdeclareanydividendsonouroutstandingcommonstockanddo
notexpecttopayanydividendsfortheforeseeablefuture.
NOTE 15: RELATED PARTY TRANSACTIONS
Relationship between Expedia and TripAdvisor
UponconsummationoftheSpin-Off,ExpediawasconsideredarelatedpartyunderGAAPbasedonanumberoffactors,including,amongothers,common
ownershipofoursharesandthoseofExpedia.However,wenolongerconsiderExpediaarelatedparty.Forpurposesofgoverningcertainoftheongoing
relationshipsbetweenusandExpediaatandaftertheSpin-Off,andtoprovideforanorderlytransition,weandExpediaenteredintovariousagreementsatthetime
oftheSpin-Off,whichTripAdvisorhassatisfieditsobligations.However,TripAdvisorcontinuestobesubjecttocertainpost-spinobligationsundertheTax
SharingAgreement.
UndertheTaxSharingAgreementbetweenusandExpedia,wearegenerallyrequiredtoindemnifyExpediaforanytaxesresultingfromtheSpin-Off(and
anyrelatedinterest,penalties,legalandprofessionalfees,andallcostsanddamagesassociatedwithrelatedstockholderlitigationorcontroversies)totheextent
suchamountsresultedfrom(i)anyactorfailuretoactbyusdescribedinthecovenantsinthetaxsharingagreement,(ii)anyacquisitionofourequitysecuritiesor
assetsorthoseofamemberofourgroup,or(iii)anyfailureoftherepresentationswithrespecttousoranymemberofourgrouptobetrueoranybreachbyusor
anymemberofourgroupofanycovenant,ineachcase,whichiscontainedintheseparationdocumentsorinthedocumentsrelatingtotheIRSprivateletterruling
and/ortheopinionofcounsel.ThefulltextoftheTaxSharingAgreementisincorporatedbyreferenceinthisAnnualReportonForm10-KasExhibit10.2.Refer
to“Note9—Income Taxes ”aboveforinformationregardingthestatusofcompletedandongoingIRSauditsofourconsolidatedincometaxreturnswithExpedia
todate.
Relationship between Liberty TripAdvisor Holdings, Inc. and TripAdvisor
WeconsiderLibertyTripAdvisorHoldings,Inc.(“LTRIP”)arelatedparty.AsofDecember31,2015,LTRIPbeneficiallyowned18,159,752sharesofour
commonstockand12,799,999sharesofourClassBcommonstock,whichsharesconstituted13.7%oftheoutstandingsharesofCommonStockand100%ofthe
outstandingsharesofClassBCommonStock.AssumingtheconversionofallofLTRIP’ssharesofClassBcommonstockintocommonstock,LTRIPwould
beneficiallyown21.3%oftheoutstandingcommonstock.BecauseeachshareofClassBcommonstockisgenerallyentitledtotenvotespershareandeachshare
ofcommonstockisentitledtoonevotepershare,LTRIPmaybedeemedtobeneficiallyownequitysecuritiesrepresentingapproximately56.1%ofourvoting
power.Referto“Note1—Organization and Business Description ”above,whichdescribestheevolutionofourrelationshipwithLTRIP.
WehadnorelatedpartytransactionswithLTRIPduringtheyearsendedDecember31,2015,2014or2013.
NOTE 16: SEGMENT AND GEOGRAPHIC INFORMATION
Segment Information
Ourreportingstructureincludestworeportablesegments:HotelandOther.
Hotel
OurHotelsegmentincludesrevenuegeneratedfromservicesrelatedtohotels,includingclick-basedanddisplay-basedadvertisingrevenuefrommaking
hotelroomnightreservationsavailableforpricecomparisonandbooking,includingourinstantbookingfeature,aswellassubscription-basedhotelproductssuch
asBusinessListings,transaction-basedhotelproductssuchasJetsetterandTingo,andotherrevenuerelatedtohotels.OurHotelsegmentalsoincludesadvertising
revenuefrommakingairlinereservationsandcruisereservationsavailableforpricecomparisonandbooking.OurCODMisalsotheHotelsegmentmanager.
Other
Attractions. Weprovide,primarilythroughViator,informationandservicesforresearchingandbookingdestinationactivitiesaroundtheworld.Viator
workswithlocaloperatorstoprovidetravelerswithaccesstotoursandactivitiesinpopulardestinationsworldwide,earningacommissionforsuchservice.In
additiontoitsconsumer-directbusiness,Viatoralsoprovideslocalexperiencestoaffiliatepartners,includingsomeoftheworld’stopairlines,hotelsandtravel
agencies.
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