Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 9: 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. We define Adjusted EBITDA as net income (loss) plus: (1) provision for income taxes; (2) other (income) expense, net; (3) depreciation of property and equipment, including internal use software and website development; (4) amortization of intangible assets; (5) stock-based compensation; and (6) non-recurring expenses. 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 net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, for the periods presented (in thousands):

	Three months ended March 31,
	2013			2012
Adjusted EBITDA	$	109,347		$	84,189
Depreciation (1)		(6,324	)		(4,281	)
Amortization of intangible assets		(1,109	)		(1,839	)
Stock-based compensation		(13,611	)		(4,692	)
Other expense, net		(3,867	)		(2,236	)
Provision for income taxes		(22,137	)		(22,970	)
Net income		62,299			48,171

(1) Includes internal use software and website development costs.