Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

NOTE 13: SEGMENT INFORMATION

We have two reportable segments: (1) Hotels, Media & Platform; and (2) Experiences & Dining. Our Hotels, Media & Platform reportable segment includes the following revenue sources: (1) Tripadvisor-branded hotels revenue – primarily consisting of hotel auction revenue, and to a lesser extent, subscription-based advertising, hotel sponsored placements revenue, and CPA revenue; and (2) Tripadvisor-branded display and platform revenue – consisting of display-based advertising revenue. Our Experiences & Dining reportable segment includes an aggregation of our Experiences and Dining operating segments. All remaining business units have been combined into and reported as “Other”, which includes Rentals, Flights & Car, Cruises, and Tripadvisor China, as none of these businesses meet the quantitative thresholds and other criteria to qualify as reportable segments, and therefore are combined and disclosed as Other. The nature of the services provided and revenue recognition policies are summarized by reported segment in “Note 3: Revenue Recognition.”  Our operating segments are determined based on how our chief operating decision maker manages our business, regularly accesses information and evaluates performance for operating decision-making purposes, including allocation of resources.

All direct general and administrative costs are included in the applicable segments and business units; however, all corporate general and administrative costs are included in the Hotels, Media & Platform reportable segment. In addition, the Hotels, Media & Platform reportable segment includes all Tripadvisor-related brand advertising expenses (primarily television advertising), technical infrastructure, and other costs supporting the Tripadvisor platform.

Adjusted EBITDA is our segment profit measure and a key measure used by our management and Board of Directors to understand and evaluate the operating performance of our business and on which internal budgets and forecasts are based and approved. We define Adjusted EBITDA as net income (loss) plus: (1) (provision) benefit for income taxes; (2) other income (expense), net; (3) depreciation and amortization; (4) stock-based compensation and other stock-settled obligations; (5) goodwill, long-lived asset and intangible asset impairments; (6) legal reserves and settlements; (7) restructuring and other related reorganization costs; and (8) non-recurring expenses and income.

The following tables present our segment information for the three and nine months ended September 30, 2020 and 2019 and includes a reconciliation of Adjusted EBITDA to Net Income. We record depreciation of property and equipment and amortization of intangible assets, stock-based compensation and other stock-settled obligations, goodwill, long-lived asset and intangible asset impairments, legal reserves and settlements, restructuring and other related reorganization costs, and other non-recurring expenses and

income, net, which are excluded from segment operating performance, in corporate and unallocated. In addition, we do not report our assets, capital expenditures and related depreciation expense by segment as our CODM does not use this information to evaluate operating segments. Accordingly, we do not regularly provide such information by segment to our CODM. Intersegment revenue is not material and is included in Other.

	Three months ended September 30, 2020
	Hotels, Media & Platform (1)		Experiences & Dining		Other (3)		Corporate and Unallocated			Total
	(in millions)
Revenue	$	80	$	53	$	18	$	—		$	151
Adjusted EBITDA		4		1		10		—			15
Depreciation and amortization								(30	)		(30	)
Stock-based compensation								(28	)		(28	)
Impairment of goodwill								(3	)		(3	)
Operating income (loss)											(46	)
Other income (expense), net											(12	)
Income (loss) before income taxes											(58	)
(Provision) benefit for income taxes											10
Net income (loss)											(48	)

	Three months ended September 30, 2019
	Hotels, Media & Platform (2)		Experiences & Dining		Other (3)		Corporate and Unallocated			Total
	(in millions)
Revenue	$	238	$	141	$	49	$	—		$	428
Adjusted EBITDA		93		15		21		—			129
Depreciation and amortization								(32	)		(32	)
Stock-based compensation								(29	)		(29	)
Operating income (loss)											68
Other income (expense), net											5
Income (loss) before income taxes											73
(Provision) benefit for income taxes											(23	)
Net income (loss)											50

	Nine months ended September 30, 2020
	Hotels, Media & Platform (1)		Experiences & Dining			Other (3)		Corporate and Unallocated			Total
	(in millions)
Revenue	$	287	$	150		$	51	$	—		$	488
Adjusted EBITDA		25		(56	)		13		—			(18	)
Depreciation and amortization									(94	)		(94	)
Stock-based compensation									(80	)		(80	)
Restructuring and other related reorganization costs									(42	)		(42	)
Impairment of goodwill									(3	)		(3	)
Operating income (loss)												(237	)
Other income (expense), net												(28	)
Income (loss) before income taxes												(265	)
(Provision) benefit for income taxes												48
Net income (loss)												(217	)

	Nine months ended September 30, 2019
	Hotels, Media & Platform (2)		Experiences & Dining			Other (3)		Corporate and Unallocated			Total
	(in millions)
Revenue	$	746	$	346		$	133	$	—		$	1,225
Adjusted EBITDA		306		(1	)		42		—			347
Depreciation and amortization									(92	)		(92	)
Stock-based compensation									(91	)		(91	)
Operating income (loss)												164
Other income (expense), net												9
Income (loss) before income taxes												173
(Provision) benefit for income taxes												(63	)
Net income (loss)												110

(1) Includes allocated corporate general and administrative costs of $14 million and $48 million and Tripadvisor-branded advertising expenses (primarily television advertising) of $3 million and $8 million for the three and nine months ended September 30, 2020, respectively.

(2) Includes allocated corporate general and administrative costs of $20 million and $51 million and Tripadvisor-branded advertising expenses (primarily television advertising) of $18 million and $73 million for the three and nine months ended September 30, 2019, respectively.

(3) Other consists of the combination of our Rentals, Flights & Car, Cruises, and Tripadvisor China business units and does not constitute a reportable segment.

Customer Concentrations

Refer to “Note 6: Financial Instruments and Fair Value Measurements” under the section entitled “Risks and Concentrations” for information regarding our major customer concentrations.