Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.3.1.900
Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Information  
Segment Information

(13) Segment Information

TripCo, through its ownership interests in subsidiaries and other companies, is primarily engaged in the on-line commerce industries. TripCo identifies its reportable segments as (A) those consolidated companies that represent 10% or more of its consolidated annual revenue, annual adjusted operating income before depreciation and amortization (“Adjusted OIBDA”) or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of TripCo’s annual pre-tax earnings.

TripCo evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per customer equivalent. In addition, TripCo reviews nonfinancial measures such as unique website visitors, conversion rates and active customers, as appropriate.

TripCo defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses (excluding stock-based compensation),  adjusted for specifically identified non-recurring transactions. TripCo believes this measure is an important indicator of the operational strength and performance of its businesses, including each business’s ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, equity settled liabilities (including stock-based compensation), separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. TripCo generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.

TripCo’s operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated companies are the same as those described in the Company’s summary of significant accounting policies.

Performance Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

 

2015

 

2014

 

2013

 

 

    

 

 

    

Adjusted

    

 

    

Adjusted

    

 

    

Adjusted

 

 

 

Revenue

 

OIBDA

 

Revenue

 

OIBDA

 

Revenue

 

OIBDA

 

 

 

amounts in millions

 

TripAdvisor

 

$
1,492

 
464

 
1,246

 
468

 
945

 
379

 

Corporate and other

 

 
73

 
(30)

 
83

 
(26)

 
89

 
(18)

 

Consolidated TripCo

 

$
1,565

 
434

 
1,329

 
442

 
1,034

 
361

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

December 31, 2014

 

 

    

Total

    

Capital

    

Total

    

Capital

 

 

 

Assets

 

expenditures

 

Assets

 

expenditures

 

 

 

amounts in millions

 

TripAdvisor

 

$
7,235

 
109

 
7,284

 
81

 

Corporate and other

 

 
50

 
3

 
82

 
9

 

Consolidated TripCo

 

$
7,285

 
112

 
7,366

 
90

 

 

Revenue by Geographic Area

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2015

    

2014

    

2013

 

 

 

amounts in millions

 

United States

 

$
807

 
670

 
541

 

United Kingdom

 

 
215

 
191

 
141

 

Other countries

 

 
543

 
468

 
352

 

Consolidated TripCo

 

$
1,565

 
1,329

 
1,034

 

 

Long-lived Assets by Geographic Area

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2015

    

2014

 

 

 

amounts in millions

 

United States

 

$
150

 
124

 

Other countries

 

 
30

 
14

 

Consolidated TripCo

 

$
180

 
138

 

 

The following table provides a reconciliation of consolidated Adjusted OIBDA to earnings (loss) before income taxes:

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

    

2015

    

2014

    

2013

 

 

 

amounts in millions

 

Consolidated Adjusted OIBDA

 

$
434

 
442

 
361

 

Stock settled charitable contribution

 

 
(67)

 

 —

 

 —

 

Stock-based compensation

 

 
(82)

 
(74)

 
(60)

 

Depreciation and amortization

 

 
(268)

 
(298)

 
(315)

 

Impairment of intangible assets

 

 
(2)

 
(2)

 
(3)

 

Interest expense

 

 
(28)

 
(13)

 
(12)

 

Other, net

 

 
17

 
(11)

 
1

 

Earnings (loss) before income taxes

 

$
4

 
44

 
(28)