TripAdvisor 2015 Annual Report Download - page 97

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Restaurants. Wehaveseveralwebsitesthatprovideonlineandmobilereservationservicesthatconnectrestaurantswithdiners.Thesewebsitesare
primarilyfocusedcurrentlyontheEuropeanandAustralianmarkets,primarilythroughLafourchetteorthefork.com(includingwww.lafourchette.com,
www.eltenedor.com,www.iens.nl,www.besttables.com,andwww.dimmi.com.au).thefork.comisanonlinerestaurantbookingplatformwithanetworkof
restaurantpartnersprimarilyacrossEuropeandAustralia.Lafourchettealsooffersmanagementsoftwaresolutionshelpingrestaurantstomaximizebusinessby
providingaflexibleonlinebooking,discountanddatatool.Wegeneraterevenueprimarilybychargingafeeforeachrestaurantguestseatedthroughtheonline
reservationsystems.
Vacation Rentals .Weofferindividualpropertyownersandpropertymanagerstheabilitytolisttheirpropertiesavailableforrentalandconnectwith
travelersusingasubscription-basedfeestructureorafree-to-list,commissionperbookingbasedoption.Ourvacationrentalinventorycurrentlyincludesfullhome
rentals,condos,villas,beachrentals,cabins,cottages,andmanyotheraccommodationtypes.Thesepropertiesarelistedacrossanumberofplatforms,including
TripAdvisorVacationRentals,U.S.-basedFlipKeyandVacationHomeRentals,andEuropean-basedHolidayLettingsandNiumbabusinesses.
EachoperatingsegmentinourOthersegmenthasasegmentmanagerwhoisdirectlyaccountabletoandmaintainsregularcontactwithourchiefoperating
decisionmakertodiscussoperatingactivities,financialresults,forecasts,andplansforthesegment.
OurprimaryoperatingmetricforevaluatingsegmentperformanceisAdjustedEBITDA,whichisanon-GAAPfinancialmeasure.WedefineAdjusted
EBITDAasnetincome(loss)plus:(1)provisionforincometaxes;(2)otherincome(expense),net;(3)depreciationofpropertyandequipment,including
amortizationofinternalusesoftwareandwebsitedevelopment;(4)amortizationofintangibleassets;(5)stock-basedcompensationandotherstock-settled
obligations;(6)goodwill,long-livedassetandintangibleassetimpairments;and(7)othernon-recurringexpenses..Suchamountsaredetailedinoursegment
reconciliationbelow.Inaddition,pleaseseeourdiscussionofAdjustedEBITDAinthesectionofthisAnnualReportonForm10-Kentitled“Management’s
DiscussionandAnalysisofFinancialConditionandResultsofOperations.”
ThefollowingtablespresentoursegmentinformationfortheyearsendedDecember31,2015,2014and2013.Werecorddepreciationofpropertyand
equipment,includingamortizationofinternal-usesoftwareandwebsitedevelopment,amortizationofintangibleassets,stock-basedcompensationandotherstock-
settledobligations,otherincome(expense),net,othernon-recurringexpenses,net,andincometaxes,whichareexcludedfromsegmentoperatingperformance,in
Corporateandunallocated.Inaddition,wedonotreportourassetsorcapitalexpendituresbysegmentasitwouldnotbemeaningful.Wealsodonotregularly
provideasset,capitalexpenditureordepreciationinformationbysegmenttoourCODM.Ourconsolidatedgeneralandadministrativeexpenses,excludingstock-
basedcompensationcosts,aresharedbyalloperatingsegments.Eachoperatingsegmentreceivesanallocatedchargebasedonthesegment’spercentageofthe
Company’stotalpersonnelcosts.
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Year ended December 31, 2015
  Hotel Other Corporate and
unallocated Total
(in millions)
Revenue $ 1,263  $ 229  $ —  $ 1,492
AdjustedEBITDA(1)  472   (6)   —   466
Depreciation  —   —   (57)   (57)
Amortizationofintangibleassets  —   —   (36)   (36)
Stock-basedcompensation  —   —   (72)   (72)
Non-cashcharitablecontribution(2)  —   —   (67)   (67)
Othernon-recurringexpenses  —   —   (2)   (2)
Operatingincome(loss) $ 472  $ (6)  $ (234)   232
Otherincome,net           7
Incomebeforeincometaxes            239
Provisionforincometaxes            (41)
Netincome           $ 198
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