Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.1.9
Segment Information
 12 Months Ended
Dec. 31, 2014
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. The segment presentation for prior periods has been conformed to the current period segment presentation.

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 cost of sales, operating expenses, and selling, general and administrative expenses (excluding stock- based compensation). 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, 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,

 

 

 

2014

 

2013

 

2012

 

 

    

 

 

    

Adjusted

    

 

    

Adjusted

    

 

    

Adjusted

 

 

 

Revenue

 

OIBDA

 

Revenue

 

OIBDA

 

Revenue

 

OIBDA

 

 

 

(amounts in millions)

 

TripAdvisor

 

$
1,246 

 
468 

 
945 

 
379 

 
36 

 
8 

 

Corporate and other

 

 
83 

 
(26)

 
89 

 
(18)

 
129 

 
(7)

 

Consolidated TripCo

 

$
1,329 

 
442 

 
1,034 

 
361 

 
165 

 
1 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

December 31, 2013

 

 

    

Total

    

Capital

    

Total

    

Capital

 

 

 

Assets

 

expenditures

 

Assets

 

expenditures

 

 

 

(amounts in millions)

 

TripAdvisor

 

$
7,352 

 
81 

 
7,057 

 
57 

 

Corporate and other

 

 
29 

 
9 

 
32 

 
3 

 

Consolidated TripCo

 

$
7,381 

 
90 

 
7,089 

 
60 

 

 

Revenue by Geographic Area

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2014

    

2013

    

2012

 

 

 

(amounts in millions)

 

United States

 

$
670 

 
541 

 
136 

 

United Kingdom

 

 
191 

 
141 

 
5 

 

Other countries

 

 
468 

 
352 

 
24 

 

Consolidated TripCo

 

$
1,329 

 
1,034 

 
165 

 

 

Long-lived Assets by Geographic Area

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2014

    

2013

 

 

 

(amounts in millions)

 

United States

 

$
134 

 
32 

 

Other countries

 

 
14 

 
7 

 

Consolidated TripCo

 

$
148 

 
39 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

    

2014

    

2013

    

2012

 

 

 

(amounts in millions)

 

Consolidated Adjusted OIBDA

 

$
442 

 
361 

 
1 

 

Stock-based compensation

 

 
(74)

 
(60)

 

—

 

Depreciation and amortization

 

 
(298)

 
(315)

 
(16)

 

Impairment of intangible assets

 

 
(2)

 
(3)

 
(39)

 

Interest expense

 

 
(13)

 
(12)

 
(1)

 

Share of earnings (loss) of affiliates, net

 

 

 —

 

—

 
38 

 

Gains (losses) on transactions, net

 

 

 —

 
(1)

 
1,088 

 

Other, net

 

 
(11)

 
2 

 
33 

 

Earnings (loss) before income taxes

 

$
44 

 
(28)

 
1,104