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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Operating activities:      
Net income $ 120 $ 198 $ 226
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation of property and equipment, including amortization of internal-use software and website development 69 57 47
Amortization of intangible assets 32 36 18
Stock-based compensation expense (Note 4) 85 72 63
Non-cash contribution to charitable foundation (Note 17) [1]   67  
Gain on sale of business (Note 3) [2]   (20)  
Deferred tax benefit (20) (37) (17)
Other, net 10 9 18
Changes in operating assets and liabilities, net of effects from acquisitions and other investments, and dispositions:      
Accounts receivable, prepaid expenses and other assets (24) (31) (26)
Accounts payable, accrued expenses and other liabilities 7 13 18
Deferred merchant payables 21 15 (9)
Income tax receivables/payables, net 20 32 60
Deferred revenue 1 7 9
Net cash provided by operating activities 321 418 407
Investing activities:      
Capital expenditures, including internal-use software and website development (72) (109) (81)
Acquisitions and other investments, net of cash acquired (Note 3) (43) (29) (331)
Proceeds from sale of business, net of cash sold (Note 3)   25  
Purchases of marketable securities (166) (205) (251)
Sales of marketable securities 84 187 336
Maturities of marketable securities 32 71 93
Other investing activities, net 2 2 1
Net cash used in investing activities (163) (58) (233)
Financing activities:      
Repurchase of common stock (Note 15) (105)    
Proceeds from exercise of stock options 7 12 3
Payment of withholding taxes on net share settlements of equity awards (15) (73) (33)
Other financing activities, net   12 (1)
Net cash used in financing activities (143) (189) (61)
Effect of exchange rate changes on cash and cash equivalents (17) (12) (9)
Net (decrease) increase in cash and cash equivalents (2) 159 104
Cash and cash equivalents at beginning of period 614 455 351
Cash and cash equivalents at end of period 612 614 455
Supplemental disclosure of cash flow information:      
Cash paid during the period for income taxes, net of refunds 29 43 54
Cash paid during the period for interest 10 7 7
Supplemental disclosure of non-cash investing and financing activities:      
Stock-based compensation capitalized with internal-use software and website development costs 12 8 8
Capitalization of construction in-process related to build to suit lease   6 52
Capital expenditures incurred but not yet paid related to build to suit lease     10
Chinese Credit Facilities      
Financing activities:      
Proceeds from credit facilities 7 4 13
Payments to credit facilities (1) (41) (3)
2011 Credit Facility      
Financing activities:      
Principal payments on credit facilities   (300) $ (40)
2015 Credit Facility      
Financing activities:      
Payments to credit facilities (210) (90)  
Proceeds from credit facility, net of financing costs 101 $ 287  
2016 Credit Facility      
Financing activities:      
Proceeds from credit facility, net of financing costs $ 73    
[1] During the fourth quarter of 2015, we incurred an expense in the amount of $67 million to reflect a non-cash contribution to The TripAdvisor Charitable Foundation (the “Foundation”), which was recorded to general and administrative expense in our consolidated statement of operations. TripAdvisor had historically funded 2% of its annual operating income before amortization and stock-based compensation. TripAdvisor’s pledge agreement provided for an immediate satisfaction of all future annual contributions, by paying an amount equal to eight multiplied by TripAdvisor’s prior year contribution to the Foundation. TripAdvisor exercised this right under its pledge agreement in December 2015. We settled this obligation in treasury shares based on the fair value of our common stock on the date the treasury shares were issued to the Foundation and therefore given the use of stock to settle the obligation, the amount has been excluded from Adjusted EBITDA. TripAdvisor does not expect to make any future contributions to the Foundation.
[2] See “Note 3 – Acquisitions and Dispositions” for information regarding our gain on sale of business in 2015.