Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

NOTE 12: 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, subscription-based advertising, 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 & 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 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, 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 three and six months ended June 30, 2021 and 2020 and includes a reconciliation of Adjusted EBITDA to Net income (loss). 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 and eliminated in Other.

	Three months ended June 30, 2021
	Hotels, Media & Platform (1)		Experiences & Dining			Other		Corporate and Unallocated			Total
	(in millions)
Revenue	$	156	$	68		$	11	$	—		$	235
Adjusted EBITDA		33		(12	)		4		—			25
Depreciation and amortization									(28	)		(28	)
Stock-based compensation									(32	)		(32	)
Operating income (loss)												(35	)
Other income (expense), net												(11	)
Income (loss) before income taxes												(46	)
(Provision) benefit for income taxes												6
Net income (loss)												(40	)

	Three months ended June 30, 2020
	Hotels, Media & Platform (2)			Experiences & Dining			Other			Corporate and Unallocated			Total
	(in millions)
Revenue	$	38		$	14		$	7		$	—		$	59
Adjusted EBITDA		(33	)		(38	)		(3	)		—			(74	)
Depreciation and amortization											(32	)		(32	)
Stock-based compensation											(25	)		(25	)
Restructuring and other related reorganization costs											(33	)		(33	)
Operating income (loss)														(164	)
Other income (expense), net														(15	)
Income (loss) before income taxes														(179	)
(Provision) benefit for income taxes														26
Net income (loss)														(153	)

	Six months ended June 30, 2021
	Hotels, Media & Platform (1)		Experiences & Dining			Other		Corporate and Unallocated			Total
	(in millions)
Revenue	$	245	$	95		$	18	$	—		$	358
Adjusted EBITDA		30		(35	)		4		—			(1	)
Depreciation and amortization									(57	)		(57	)
Stock-based compensation									(61	)		(61	)
Operating income (loss)												(119	)
Other income (expense), net												(22	)
Income (loss) before income taxes												(141	)
(Provision) benefit for income taxes												21
Net income (loss)												(120	)

	Six months ended June 30, 2020
	Hotels, Media & Platform (2)		Experiences & Dining			Other		Corporate and Unallocated			Total
	(in millions)
Revenue	$	207	$	97		$	33	$	—		$	337
Adjusted EBITDA		20		(57	)		3		—			(34	)
Depreciation and amortization									(64	)		(64	)
Stock-based compensation									(51	)		(51	)
Restructuring and other related reorganization costs									(42	)		(42	)
Operating income (loss)												(191	)
Other income (expense), net												(16	)
Income (loss) before income taxes												(207	)
(Provision) benefit for income taxes												38
Net income (loss)												(169	)

(1) Includes allocated corporate general and administrative costs of $20 million and $36 million and Tripadvisor-branded advertising expenses of $1 million and $2 million for the three and six months ended June 30, 2021, respectively.

(2) Includes allocated corporate general and administrative costs of $16 million and $34 million and Tripadvisor-branded advertising expenses (primarily television advertising) of $1 million and $5 million for the three and six months ended June 30, 2020, respectively.

Customer Concentrations

Refer to “Note 4: Financial Instruments and Fair Value Measurements” under the section entitled “Risks and Concentrations” for information regarding our major customer concentrations.