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TripAdvisor, Inc. In connection with the spin-off, we entered into various agreements with TripAdvisor, a
related party at that time due to common ownership, including, among others, a separation agreement, a tax
sharing agreement, an employee matters agreement, a transition services agreement and various commercial
agreements. In addition, we continue to work with TripAdvisor pursuant to commercial agreements, dated
November 1, 2013, between subsidiaries of Expedia, on the one hand, and subsidiaries of TripAdvisor, on the
other hand. During 2013, we recognized $5 million of revenue and expensed $218 million related to these
various agreements with TripAdvisor. During 2012, we recognized approximately $6 million of revenue and
expensed approximately $205 million related to these various agreements. From December 21, 2011 to
December 31, 2011, we expensed $4 million related to these various agreements. In addition, we reclassified
sales and marketing expense related to amounts we paid to TripAdvisor prior to the spin-off, which were
previously eliminated in consolidation, to third party expenses for all periods presented. Net amounts payable to
TripAdvisor were $15 million and $24 million as of December 31, 2013 and December 31, 2012 and were
primarily included in accounts payable, other on the consolidated balance sheet.
NOTE 18 — Segment Information
We have two reportable segments: Leisure and Egencia. Our Leisure segment, which consists of the
aggregation of operating segments, provides a full range of travel and advertising services to our worldwide
customers through a variety of brands including: Expedia.com and Hotels.com in the United States and localized
Expedia and Hotels.com websites throughout the world, Expedia Affiliate Network, Hotwire.com, Venere,
eLong, trivago and Classic Vacations. Our Egencia segment provides managed travel services to corporate
customers in North America, Europe, and the Asia Pacific region.
We determined our operating segments based on how our chief operating decision makers manage our
business, make operating decisions and evaluate operating performance. Our primary operating metric is adjusted
EBITDA. Adjusted EBITDA for our Leisure and Egencia segments includes allocations of certain expenses,
primarily cost of revenue and facilities, and our Leisure segment includes the total costs of our global supply
organizations as well as the realized foreign currency gains or losses related to the forward contracts hedging a
component of our net merchant hotel revenue. We base the allocations primarily on transaction volumes and
other usage metrics. We do not allocate certain shared expenses such as accounting, human resources,
information technology and legal to our reportable segments. We include these expenses in Corporate. Our
allocation methodology is periodically evaluated and may change.
Corporate also includes unallocated corporate functions and expenses. In addition, we record amortization
of intangible assets and any related impairment, as well as stock-based compensation expense, restructuring
charges, legal reserves, occupancy tax and other, and other items excluded from segment operating performance
in Corporate. Such amounts are detailed in our segment reconciliation below.
F-42