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Segment Information | 12 Months Ended
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Dec. 31, 2012
Segment Information [Abstract] |
SEGMENT INFORMATION | NOTE 17: SEGMENT INFORMATION We have one reportable segment: TripAdvisor. We determined our segment based on how our chief operating decision maker manages our business, makes operating decisions and evaluates operating performance. Our primary operating metric for evaluating segment performance is Adjusted EBITDA. Adjusted EBITDA is defined as operating income plus: (1) depreciation of property and equipment, including internal use software and website development; (2) amortization of intangible assets; (3) stock-based compensation; and (4) non-recurring expenses incurred to effect the Spin-Off during the year ended December 31, 2011. 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 table is a reconciliation of Adjusted EBITDA to operating income and net income for the periods presented:
|  | Year ended December 31, |
|  |  |  |  | (in thousands) |  |  |  |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Adjusted EBITDA |  | $ | 352,474 |  |  | $ | 322,918 |  |  | $ | 260,963 |
Depreciation (1) |  |  | (19,966 | ) |  |  | (18,362 | ) |  |  | (12,871 | )
OIBA (2) |  |  | 332,508 |  |  |  | 304,556 |  |  |  | 248,092 |
Amortization of intangible assets |  |  | (6,110 | ) |  |  | (7,523 | ) |  |  | (14,609 | )
Stock-based compensation |  |  | (30,102 | ) |  |  | (17,344 | ) |  |  | (7,183 | )
Spin-Off costs |  |  | — |  |  |  | (6,932 | ) |  |  | — |
Operating income |  |  | 296,296 |  |  |  | 272,757 |  |  |  | 226,300 |
Interest income (expense), net |  |  | (10,871 | ) |  |  | 391 |  |  |  | (241 | )
Other, net |  |  | (3,450 | ) |  |  | (1,254 | ) |  |  | (1,644 | )
Provision for income taxes |  |  | (87,387 | ) |  |  | (94,103 | ) |  |  | (85,461 | )
Net (income) loss attributable to noncontrolling interest |  |  | (519 | ) |  |  | (114 | ) |  |  | (178 | )
Net income attributable to TripAdvisor, Inc . |  | $ | 194,069 |  |  | $ | 177,677 |  |  | $ | 138,776 |
(1) | Includes internal use software and website development costs.
(2) | Our primary operating metric prior to the Spin-Off for evaluating operating performance was OIBA, as reported on our Registration Statement on Form S-4, filed with the SEC on November 1, 2011. OIBA is defined as operating income plus: (1) amortization of intangible assets and any related impairment; (2) stock-based compensation expense; and (3) non-recurring expenses incurred to effect the Spin-Off during the year ended December 31, 2011. This operating metric is no longer being used by our management to measure operating performance and is only being shown above to illustrate the financial impact as we converted to a new operating metric post Spin-Off and is also currently used to calculate our annual obligation for our charitable foundation. Refer to “Note 12—Commitments and Contingencies” above for a discussion of our charitable foundation.
We derive substantially all of our revenue from the sale of advertising, primarily through click-based advertising and, to a lesser extent, display-based advertising. The remainder of our revenue is generated through a combination of subscription-based offerings, transaction revenue from selling room nights on our transactional sites SniqueAway and Tingo, and other revenue including content licensing.
|  | Year ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | ($ in thousands) |
Click-based advertising |  | $ | 587,781 |  |  | $ | 499,993 |  |  | $ | 383,543 |
Display-based advertising |  |  | 94,147 |  |  |  | 85,736 |  |  |  | 71,848 |
Subscription, transaction and other |  |  | 81,038 |  |  |  | 51,334 |  |  |  | 29,244 |
Total revenue |  | $ | 762,966 |  |  | $ | 637,063 |  |  | $ | 484,635 |
The following table presents revenue by geographic area, the United States, the United Kingdom and all other countries, based on the geographic location of our websites for the years ended December 31, 2012, 2011 and 2010:
|  | Year Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (In thousands) |
Revenue |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 386,211 |  |  | $ | 348,066 |  |  | $ | 297,830 |
United Kingdom |  |  | 110,213 |  |  |  | 99,646 |  |  |  | 69,721 |
All other countries |  |  | 266,542 |  |  |  | 189,351 |  |  |  | 117,084 |
|  | $ | 762,966 |  |  | $ | 637,063 |  |  | $ | 484,635 |
The following table presents property and equipment, net for the United States and all other countries based on the geographic location of the assets:
|  | As of December 31, |
|  | 2012 |  |  | 2011 |
|  | (In thousands) |
Property and equipment, net |  |  |  |  |  |  |  |
United States |  | $ | 36,255 |  |  | $ | 30,138 |
All other countries |  |  | 7,547 |  |  |  | 4,616 |
|  | $ | 43,802 |  |  | $ | 34,754 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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