Segment and Geographic Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 20: SEGMENT AND GEOGRAPHIC 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, subscription-based advertising, CPA revenue, and hotel sponsored placements 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, including Rentals, Flights & Car, and Cruises have been combined into and reported as “Other”, which does not constitute a reportable segment, as none of these businesses meet the quantitative thresholds and other criteria to qualify as reportable segments. The nature of the services provided and revenue recognition policies are summarized by reported segment in “Note 4: 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, intangible asset, and long-lived 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 years ended December 31, 2020, 2019 and 2018 and includes a reconciliation of Adjusted EBITDA to Net Income. We record depreciation and amortization, stock-based compensation and other stock-settled obligations, goodwill, intangible asset, and long-lived 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.

	Year ended December 31, 2020
	Hotels, Media & Platform (1)		Experiences & Dining			Other		Corporate and Unallocated			Total
	(in millions)
Revenue	$	361	$	186		$	57	$	—		$	604
Adjusted EBITDA		13		(79	)		15		—			(51	)
Depreciation and amortization									(125	)		(125	)
Stock-based compensation									(109	)		(109	)
Restructuring and other related reorganization costs									(41	)		(41	)
Impairment of goodwill									(3	)		(3	)
Operating income (loss)												(329	)
Other income (expense), net												(40	)
Income (loss) before income taxes												(369	)
(Provision) benefit for income taxes												80
Net income (loss)											$	(289	)

	Year ended December 31, 2019
	Hotels, Media & Platform (1)		Experiences & Dining		Other		Corporate and Unallocated			Total
	(in millions)
Revenue	$	939	$	456	$	165	$	—		$	1,560
Adjusted EBITDA		378		5		55		—			438
Depreciation and amortization								(126	)		(126	)
Stock-based compensation								(124	)		(124	)
Restructuring and other related reorganization costs								(1	)		(1	)
Operating income (loss)											187
Other income (expense), net											7
Income (loss) before income taxes											194
(Provision) benefit for income taxes											(68	)
Net income (loss)										$	126

	Year ended December 31, 2018
	Hotels, Media & Platform (1)		Experiences & Dining		Other		Corporate and Unallocated			Total
	(in millions)
Revenue	$	1,001	$	372	$	242	$	—		$	1,615
Adjusted EBITDA		329		48		45		—			422
Depreciation and amortization								(116	)		(116	)
Stock-based compensation								(118	)		(118	)
Legal reserves and settlements								(5	)		(5	)
Operating income (loss)											183
Other income (expense), net											(10	)
Income (loss) before income taxes											173
(Provision) benefit for income taxes											(60	)
Net income (loss)										$	113

(1) Includes allocated corporate general and administrative costs of $70 million, $69 million and $77 million and Tripadvisor-branded advertising expenses (primarily television advertising) of $10 million, $77 million and $122 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Product and Geographic Information

Our revenue sources within our Hotels, Media & Platform segment, including Tripadvisor-branded hotels revenue and Tripadvisor-branded display and platform revenue; which along with our Experience & Dining and Other revenue source, comprise our products. Refer to “Note 4: Revenue Recognition” for our revenue by product.

The Company measures its geographic revenue information based on the physical location of the Tripadvisor subsidiary which generates the revenue, which is consistent with our measurement of long-lived physical assets, or property and equipment, net. As such, this geographic classification does not necessarily align with where the consumer resides, where the consumer is physically located while using the Company's services, or the location of the travel service provider, experience operator or restaurant.

	Year ended December 31,
	2020		2019		2018
	(in millions)
Revenue
United States	$	302	$	821	$	835
United Kingdom		169		466		508
All other countries		133		273		272
Total revenue	$	604	$	1,560	$	1,615

The Company’s property and equipment, net for the United States and all other countries based on the geographic location of the assets consists of the following for the periods presented:

	December 31,
	2020		2019
	(in millions)
Property and equipment, net
United States	$	199	$	227
All other countries		41		43
Total	$	240	$	270

Customer Concentrations

Refer to “Note 2: Significant Accounting Policies” under the section entitled “Certain Risks and Concentrations” for information regarding our major customer concentrations.