XML 64 R11.htm IDEA: XBRL DOCUMENT v3.3.1.900

FAIR VALUE MEASUREMENT

9 Months Ended

Sep. 30, 2015

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

4. FAIR VALUE MEASUREMENT

        In accordance with ASC 820-10, the Company measures short-term investments and available-for-sale investments at fair value on a recurring basis. Available-for-sale investments classified within Level 1 are valued using quoted market prices that currently available on a securities exchange registered with the Securities and Exchange Commission (SEC). Short-term investments classified within Level 2 are valued using directly or indirectly observable inputs in the market place. The available-for-sale investments classified within Level 3 are valued based on a model utilizing unobservable inputs which require significant management judgment and estimation. The estimated fair value of long-term loans approximated the carrying amount as of December 31, 2014 and September 30, 2015, as the interest rates of the long-term loans are considered as approximate the current rate for comparable loans at the respective balance sheet dates.

        Assets measured at fair value on a recurring basis are summarized below:

		Fair Value Measurement at September 30, 2015 using
		Quoted Prices in Active Market for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Unobservable inputs (Level 3)			Fair Value at September 30, 2015
		RMB			RMB			RMB			RMB			US$
Short-term investments
Financial products			—			7,096,870,156			—			7,096,870,156			1,116,632,600
Time deposits			—			134,753,177			—			134,753,177			21,202,275
Available-for-sale investments
Tujia			—			—			2,784,302,479			2,784,302,479			438,086,487
LY.com			—			—			2,253,163,385			2,253,163,385			354,516,235
Hanting			852,386,094			—			—			852,386,094			134,115,755
Easy Go			—			—			643,186,701			643,186,701			101,199,997
eHi			717,027,215			—			—			717,027,215			112,818,178
Tuniu			313,860,446			—			—			313,860,446			49,383,291
A travel agency focusing on teenager market			—			—			81,000,000			81,000,000			12,744,666
A big-data advertisement company			—			—			63,556,000			63,556,000			10,000,000
Happy City			—			—			36,328,061			36,328,061			5,715,914
Dining Secretary			—			—			30,556,000			30,556,000			4,807,729
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total			1,883,273,755			7,231,623,333			5,892,092,626			15,006,989,714			2,361,223,127
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

		Fair Value Measurement at December 31, 2014 using
		Quoted Prices in Active Market for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Unobservable inputs (Level 3)			Fair Value at December 31, 2014
		RMB			RMB			RMB			RMB			US$
Short-term investments
Financial products			—			5,990,483,880			—			5,990,483,880			965,490,746
Time deposits			—			448,370,707			—			448,370,707			72,264,240
Available-for-sale investments
LY.com			—			—			1,547,844,523			1,547,844,523			249,467,254
Hanting			898,828,511			—			—			898,828,511			144,864,860
Easy Go			—			—			627,905,501			627,905,501			101,199,997
eHi			535,024,052			—			—			535,024,052			86,230,225
Tuniu			216,690,294			—			—			216,690,294			34,924,136
A travel agency focusing on teenager market			—			—			81,000,000			81,000,000			13,054,830
A big-data advertisement company			—			—			62,046,000			62,046,000			10,000,000
Happy City			—			—			35,422,062			35,422,062			5,709,000
Dining Secretary			—			—			29,046,000			29,046,000			4,681,365
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total			1,650,542,857			6,438,854,587			2,383,264,086			10,472,661,530			1,687,886,653
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

The roll forward of Level 3 Tujia's investment is as following:

		Amount
		RMB
Fair value of available-for-sale(Level 3) investment as at December 31, 2014			—
Fair value of available-for-sale investment of Tujia			2,784,302,479
Fair value of available-for-sale (Level 3) investment as at September 30, 2015			2,784,302,479
​	​	​	​	​
Fair value of available-for-sale investment (Level 3) as at September 30, 2015 (US$)			438,086,487
​	​	​	​	​
​	​	​	​	​

The roll forward of Level 3 LY.com's investment is as following:

		Amount
		RMB
Fair value of available-for-sale(Level 3) investment as at December 31, 2013			—
Investment in common share of LY.com			1,414,285,714
Transfer in and/or out of Level 3			—
The change in fair value of the investment in LY.com			—
Fair value of available-for-sale (Level 3) investment as at September 30, 2014			1,414,285,714
​	​	​	​	​
Fair value of available-for-sale(Level 3) investment as at December 31, 2014			1,547,844,523
Investment in common share of LY.com			—
Transfer in and/or out of Level 3			—
The change in fair value of the investment in LY.com			705,318,862
Fair value of available-for-sale (Level 3) investment as at September 30, 2015			2,253,163,385
​	​	​	​	​
Fair value of available-for-sale investment (Level 3) as at September 30, 2015 (US$)			354,516,235
​	​	​	​	​
​	​	​	​	​

        The significant unobservable inputs used in the valuation are as following:

Valuation Technique		Unobservable Input		Parameter value
Discounted cash flow		Weighted average cost of capital ("WACC")		19%
		Terminal growth rate		3%
		Lack of marketability discount ("LoMD")		28%
Option pricing model		Time to liquidation		3 years
		Risk-free rate		3.43%
		Expected volatility		50.89%
		Probability		Liquidation scenario: 20%
				IPO scenario: 80%
		Dividend yield		Nil

The roll forward of Level 3 Easy Go's investment is as following:

		Amount
		RMB
Fair value of available-for-sale(Level 3) investment as at December 31, 2013			143,904,165
Investment in Series C Preferred Shares of Easy Go			184,377,000
Transfer in and/or out of Level 3			—
Effect of exchange rate change			(799,480	)
The change in fair value of the investment in Easy Go			293,683,897
​	​	​	​	​
Fair value of available-for-sale (Level 3) investment as at September 30, 2014			621,165,582
Fair value of available-for-sale(Level 3) investment as at December 31, 2014			627,905,501
Investment in Series C Preferred Shares of Easy Go			—
Transfer in and/or out of Level 3			—
Effect of exchange rate change			15,281,200
The change in fair value of the investment in Easy Go			—
​	​	​	​	​
Fair value of available-for-sale (Level 3) investment as at September 30, 2015			643,186,701
​	​	​	​	​
​	​	​	​	​
Fair value of available-for-sale investment (Level 3) as at September 30, 2015 (US$)			101,199,997
​	​	​	​	​
​	​	​	​	​

        The fair value of the investment in Easy Go is determined by the investment in Series C Preferred Shares of Easy Go which was close to year end.

The roll forward of Level 3 travel agency focusing on teenager market's investment is as following:

		Amount
		RMB
Fair value of available-for-sale (Level 3) investment as at December 31, 2013			—
Investment in equity interest of a travel agency focusing on teenager market			81,000,000
Transfer in and/or out of Level 3			—
The change in fair value of the investment in a travel agency focusing on teenager market			—
Fair value of available-for-sale (Level 3) investment as at September 30, 2014			81,000,000
​	​	​	​	​
​	​	​	​	​
Fair value of available-for-sale (Level 3) investment as at December 31, 2014			81,000,000
Investment in equity interest of a travel agency focusing on teenager market			—
Transfer in and/or out of Level 3			—
The change in fair value of the investment in a travel agency focusing on teenager market			—
Fair value of available-for-sale (Level 3) investment as at September 30, 2015			81,000,000
​	​	​	​	​
​	​	​	​	​
Fair value of available-for-sale investment (Level 3) as at September 30, 2015 (US$)			12,744,666
​	​	​	​	​
​	​	​	​	​

        The fair value of the investment in the travel agency focusing on teenager market's is determined by the investment in this travel agency focusing on teenager market's which was close to year end.

The roll forward of Level 3 big-data service company in digital advertising's investment is as following:

		Amount
		RMB
Fair value of available-for-sale (Level 3) investment as at December 31, 2013			—
Investment in Series B Preferred Shares of a big-data advertisement company			61,425,000
Transfer in and/or out of Level 3			—
Effect of exchange rate change			(45,000	)
The change in fair value of the investment in a big-data advertisement company			—
Fair value of available-for-sale (Level 3) investment as at September 30, 2014			61,380,000
​	​	​	​	​
​	​	​	​	​
Fair value of available-for-sale (Level 3) investment as at December 31, 2014			62,046,000
Investment in Series B Preferred Shares of a big-data advertisement company			—
Transfer in and/or out of Level 3			—
Effect of exchange rate change			1,510,000
The change in fair value of the investment in a big-data advertisement company			—
Fair value of available-for-sale (Level 3) investment as at September 30, 2015			63,556,000
​	​	​	​	​
​	​	​	​	​
Fair value of available-for-sale investment (Level 3) as at September 30, 2015 (US$)			10,000,000
​	​	​	​	​
​	​	​	​	​

        The fair value of the investment in the big-data service company is determined by the investment in this big-data service company which was close to year end.

The roll forward of Level 3 Happy City's investment is as following:

		Amount
		RMB
Fair value of available-for-sale(Level 3) investment as at December 31, 2013			37,358,327
Investment in Series A Preferred Shares of Happy City			—
Transfer in and/or out of Level 3			—
Effect of exchange rate change			112,200
The change in fair value of the investment in Happy City			—
​	​	​	​	​
Fair value of available-for-sale (Level 3) investment as at September 30, 2014			37,470,527
​	​	​	​	​
​	​	​	​	​
Fair value of available-for-sale (Level 3) investment as at December 31, 2014			35,422,061
Investment in Series A Preferred Shares of Happy City			—
Transfer in and/or out of Level 3			—
Effect of exchange rate change			906,000
The change in fair value of the investment in Happy City			—
​	​	​	​	​
Fair value of available-for-sale (Level 3) investment as at September 30, 2015			36,328,061
​	​	​	​	​
​	​	​	​	​
Fair value of available-for-sale investment (Level 3) as at September 30, 2015 (US$)			5,715,914
​	​	​	​	​
​	​	​	​	​

        The significant unobservable inputs used in the valuation are as following:

Valuation Technique		Unobservable Input		Parameter value
Discounted cash flow		Weighted average cost of capital ("WACC")		27.67%
		Terminal growth rate		3%
		Lack of marketability discount ("LoMD")		25%
Option pricing model		Time to liquidation		2.67 years
		Risk-free rate		1.567%
		Expected volatility		45.4%
		Probability		Liquidation scenario: 50% Redemption scenario: 50%
		Dividend yield		Nil

The roll forward of Level 3 Dining Secretary's investment is as following:

		Amount
		RMB
Fair value of available-for-sale (Level 3) investment as at December 31, 2013			56,242,365
Investment in Series B Preferred Shares of Dining Secretary			—
Transfer in and/or out of Level 3			—
Effect of exchange rate change			843,000
The change in fair value of the investment in Dining Secretary			—
​	​	​	​	​
Fair value of available-for-sale (Level 3) investment as at September 30, 2014			57,085,365
Fair value of available-for-sale (Level 3) investment as at December 31, 2014			29,046,000
Investment in Series B Preferred Shares of Dining Secretary			—
Transfer in and/or out of Level 3			—
Effect of exchange rate change			1,510,000
The change in fair value of the investment in Dining Secretary			—
​	​	​	​	​
Fair value of available-for-sale (Level 3) investment as at September 30, 2015			30,556,000
​	​	​	​	​
​	​	​	​	​
Fair value of available-for-sale investment (Level 3) as at September 30, 2015(US$)			4,807,729
​	​	​	​	​
​	​	​	​	​

        The significant unobservable inputs used in the valuation are as following:

Valuation Technique		Unobservable Input		Parameter value
Discounted cash flow		Weighted average cost of capital ("WACC")		27.94%
		Terminal growth rate		3%
		Lack of marketability discount ("LoMD")		25%
Option pricing model		Time to liquidation		3.01 years
		Risk-free rate		4.13%
		Expected volatility		41.4%
		Probability		Liquidation scenario: 45% Redemption scenario: 45% IPO scenario: 10%
		Dividend yield		Nil

        Based on the review of various factors of Dining Secretary, including, but not limited to its current market condition, operating performance and current and expected earnings trend, the Company determined the decline in fair value of Dining Secretary to below its carrying value is other than temporary. Accordingly, an impairment with amount of RMB33 million based on the difference of its fair value and cost was provided in other income with a reversal of the previously recognized unrealized loss of RMB4 million recorded in other comprehensive income in 2014.

        The Company determined the fair value of their investment by using an income approach concluding on the overall investee's equity value and allocating this value to the various classes of preferred and common shares by using an option-pricing method. The determination of the fair value was assisted by an independent appraisal, based on estimates, judgments and information of other comparable public companies.

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13537-108611

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611

+ Details

Name:	us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration