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Segment Information
 12 Months Ended
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