Segment Information

3 Months Ended

Mar. 31, 2012

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 7: 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 entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” below.

The following table is a reconciliation of Adjusted EBITDA to operating income and net income for the periods presented (in thousands):

	Three Months Ended March 31,
	2012			2011
Adjusted EBITDA	$	84,189		$	82,007
Depreciation (1)		(4,281	)		(4,102	)
OIBA (2)		79,908			77,905
Amortization of intangible assets		(1,839	)		(2,117	)
Stock-based compensation		(4,692	)		(2,474	)
Operating income		73,377			73,314
Other Interest (expense) income, net		(2,932	)		98
Other, net		696			965
Provision for income taxes		(22,970	)		(27,006	)
Income before income taxes		48,171			47,371
Net income attributable to noncontrolling interest		(60	)		(93	)
Net income attributable to TripAdvisor, Inc.	$	48,111		$	47,278

(1) Includes internal use software and website development.

(2) Our primary operating metric prior to the Spin-Off for evaluating operating performance was OIBA, as reported on our Registration Statement. 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.