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General and administrative (Note 12)

$ 1,492

$ 1,246

$ 945

Costs and expenses:

Cost of revenue

^[1]

Selling and marketing

^[1]

692

502

368

Technology and content

^[2]

207

171

131

^[2]

210

128

Total costs and expenses

1,260

906

651

Interest income and other, net (Note 17)

232

340

294

Other income (expense):

Interest expense

(10)

(9)

(10)

(9)

Total other income (expense), net

(18)

(10)

Income before income taxes

239

322

284

Provision for income taxes

(41)

(96)

(79)

Earnings per share attributable to common stockholders (Note 2):

$ 198

$ 226

$ 205

Basic

$ 1.38

$ 1.58

$ 1.44

Diluted

$ 1.36

$ 1.55

$ 1.41

Weighted average common shares outstanding (Note 2):

Basic

143,836

142,721

142,854

Diluted

145,967

145,800

145,263

[1]	Excludes amortization expense as follows:
[2]	Includes stock-based compensation expense as follows:

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Costs and expenses:
Amortization of intangible assets	$ 36	$ 18	$ 6
Depreciation	57	47	30
Amortization adjustment	46	34	21
Stock-based compensation:
Stock-based compensation	72	63	49
Selling and Marketing
Stock-based compensation:
Stock-based compensation	16	13	11
Technology and Content
Stock-based compensation:
Stock-based compensation	28	27	21
General and Administrative
Stock-based compensation:
Stock-based compensation	28	23	17
Acquired technology
Costs and expenses:
Amortization of intangible assets	9	4	1
Website development costs
Costs and expenses:
Depreciation	$ 37	$ 30	$ 20

Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Statement Of Income And Comprehensive Income [Abstract]

Foreign currency translation adjustments

$ 198

$ 226

$ 205

Other comprehensive income (loss):

^[1]

(33)

(31)

Reclassification adjustment on sale of business included in total other income (expense), net (Note 3)

Total other comprehensive (loss) income

(32)

(31)

Comprehensive income

$ 166

$ 195

$ 206

[1]	Foreign currency translation adjustments exclude income taxes due to our practice and intention to indefinitely reinvest the earnings of our foreign subsidiaries in those operations. See “Note 14 — Stockholders’ Equity”.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Beginning balance at Dec. 31, 2012

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents (Note 5)	$ 614	$ 455
Short-term marketable securities (Note 5)	47	108
Accounts receivable, net of allowance for doubtful accounts of $6 and $7 at December 31, 2015 and December 31, 2014, respectively (Note 2)	180	151
Prepaid expenses and other current assets	24	23
Total current assets	865	737
Long-term marketable securities (Note 5)	37	31
Property and equipment, net (Note 6)	247	195
Intangible assets, net (Note 7)	176	214
Goodwill (Note 7)	732	734
Other long-term assets	71	37
TOTAL ASSETS	2,128	1,948
Current liabilities:
Accounts payable	10	19
Deferred merchant payables (Note 2)	105	93
Deferred revenue	64	57
Current portion of debt (Note 8)	1	78
Taxes payable (Note 9)	9	20
Accrued expenses and other current liabilities (Note 10)	123	114
Total current liabilities	312	381
Deferred income taxes, net (Note 9)	15	29
Other long-term liabilities (Note 11)	189	154
Long-term debt (Note 8)	200	259
Total Liabilities	716	823
Commitments and contingencies (Note 12)
Stockholders’ equity: (Note 14)
Preferred stock, $0.001 par value Authorized shares: 100,000,000 Shares issued and outstanding: 0 and 0
Additional paid-in capital	741	673
Retained earnings	826	628
Accumulated other comprehensive income (loss)	(63)	(31)
Treasury stock-common stock, at cost, 1,393,131 and 2,194,173 shares	(92)	(145)
Total Stockholders’ Equity	1,412	1,125
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,128	$ 1,948

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$ 6	$ 7
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, shares issued	133,836,242	132,315,465
Common stock, shares outstanding	132,443,111	130,121,292
Treasury stock, shares	1,393,131	2,194,173
Class B Common Stock
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	12,799,999	12,799,999
Common stock, shares outstanding	12,799,999	12,799,999

Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Millions

Total

Class B Common Stock

Common Stock

Additional Paid-in Capital

Retained Earnings

Accumulated Other Comprehensive (Loss) Income

Treasury Stock

$ 727

$ 531

$ 197

$ (1)

Beginning balance, shares at Dec. 31, 2012

12,799,999

130,060,138

Other comprehensive income

205

Issuance of common stock related to exercise of options and vesting of RSUs

Issuance of common stock related to exercise of options and vesting of RSUs, shares

1,477,660

Repurchase of common stock

(145)

$ (145)

Repurchase of common stock, shares

(2,120,709)

Tax benefits on equity awards, net

Minimum withholding taxes on net share settlements of equity awards

(14)

Ending balance at Dec. 31, 2013

865

608

402

$ (145)

Ending balance, shares at Dec. 31, 2013

12,799,999

131,537,798

(2,120,709)

Other comprehensive income

226

(31)

Issuance of common stock related to exercise of options and vesting of RSUs

Issuance of common stock related to exercise of options and vesting of RSUs, shares

777,667

Tax benefits on equity awards, net

Minimum withholding taxes on net share settlements of equity awards

(33)

Fair value of stock options assumed in connection with acquisition

Ending balance at Dec. 31, 2014

Other, shares

(73,464)

$ 1,125

673

628

(31)

$ (145)

Ending balance, shares at Dec. 31, 2014

130,121,292

12,799,999

132,315,465

(2,194,173)

Other comprehensive income

$ 198

198

(32)

Issuance of common stock related to exercise of options and vesting of RSUs

$ 12

Issuance of common stock related to exercise of options and vesting of RSUs, shares

3,187,000

^[1]

777,667

Repurchase of common stock

$ (145)

Repurchase of common stock, shares

(2,120,709)

Issuance of treasury stock as charitable contribution (Note 12)

$ 67

$ 53

Issuance of treasury stock as charitable contribution, Shares (Note 12)

801,042

Tax benefits on equity awards, net

Minimum withholding taxes on net share settlements of equity awards

(73)

Ending balance at Dec. 31, 2015

$ 1,412

$ 741

$ 826

$ (63)

$ (92)

Ending balance, shares at Dec. 31, 2015

132,443,111

12,799,999

133,836,242

(1,393,131)

[1]

Inclusive of 1,978,692 options, which were not converted into shares due to net share settlement in order to cover the aggregate exercise price and the minimum amount of required employee withholding taxes. Potential shares which had been convertible under stock options that were withheld under net share settlement remain in the authorized but unissued pool under the 2011 Incentive Plan and can be reissued by the Company. Total payments for the employees’ tax obligations to the taxing authorities due to net share settlements are reflected as a financing activity within the consolidated statements of cash flows.

Consolidated Statements of Cash Flows - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

$ 198

$ 226

$ 205

Depreciation of property and equipment, including amortization of internal-use software and website development

Stock-based compensation expense

Non-cash contribution to charitable foundation (Note 12)

^[1]

Gain on sale of business (Note 3)

(20)

Deferred tax (benefit) expense

(37)

(17)

Excess tax benefits from stock-based compensation

(36)

(20)

(12)

Other, net

Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:

Accounts receivable, prepaid expenses and other assets

(31)

(26)

(12)

Accounts payable, accrued expenses and other liabilities

Deferred merchant payables

(9)

Income taxes, net

Deferred revenue

Net cash provided by operating activities

382

387

349

Investing activities:

Capital expenditures, including internal-use software and website development

(109)

(81)

(55)

Acquisitions, net of cash acquired

(29)

(331)

(35)

Proceeds from sale of business, net of cash sold

Purchases of marketable securities

(205)

(251)

(432)

Sales of marketable securities

187

336

175

Maturities of marketable securities

151

Net cash used in investing activities

(60)

(234)

(196)

Financing activities:

Repurchase of common stock

(145)

Payments to credit facilities

(90)

Principal payments on term loan

(300)

(40)

Proceeds from revolving credit facility, net of financing costs

287

Proceeds from exercise of stock options

Payment of minimum withholding taxes on net share settlements of equity awards

(73)

(33)

(14)

Excess tax benefits from stock-based compensation

Other financing activities, net

(1)

(2)

Net cash used in financing activities

(153)

(41)

(170)

Effect of exchange rate changes on cash and cash equivalents

(10)

(8)

Net increase (decrease) in cash and cash equivalents

159

104

(16)

Cash and cash equivalents at beginning of period

455

351

367

Cash and cash equivalents at end of period

614

455

351

Supplemental disclosure of cash flow information

Cash paid during the period for income taxes, net of refunds

Cash paid during the period for interest

Supplemental disclosure of non-cash investing and financing activities:

Capitalization of construction in-process related to build to suit lease

Capital expenditures incurred but not yet paid primarily related to build to suit lease

Chinese Credit Facilities

Financing activities:

Proceeds from credit facilities

Payments to credit facilities

$ (41)

$ (3)

$ (15)

[1]	Represents a charitable obligation which was settled in Company stock and therefore excluded from Adjusted EBITDA. Refer to “Note 12 – Commitments and Contingencies” for a discussion of the Foundation.

Organization and Business Description	12 Months Ended
Organization and Business Description	Dec. 31, 2015
Accounting Policies [Abstract]
Organization and Business Description	NOTE 1: ORGANIZATION AND BUSINESS DESCRIPTION We refer to TripAdvisor, Inc. and our wholly-owned subsidiaries as “TripAdvisor,” “the Company,” “us,” “we” and “our” in these notes to the consolidated financial statements. On December 20, 2011 Expedia, Inc. completed a spin-off of TripAdvisor into a separate publicly traded Delaware corporation. We refer to this transaction as the “Spin-Off.” TripAdvisor’s common stock began trading on the NASDAQ as an independent public company on December 21, 2011 under the trading symbol “TRIP.” On December 11, 2012, Liberty Interactive Corporation, or Liberty, purchased an aggregate of 4,799,848 shares of common stock of TripAdvisor from Barry Diller, our former Chairman of the Board of Directors and Senior Executive, and certain of his affiliates (the “Stock Purchase”). As a result, Liberty beneficially owned 18,159,752 shares of our common stock and 12,799,999 shares of our Class B common stock. On August 27, 2014, the entire beneficial ownership of our common stock and Class B common stock held by Liberty was indirectly acquired by Liberty TripAdvisor Holdings, Inc. (“LTRIP”) by means of a spin-off (the “Liberty Spin-Off”). In the Liberty Spin-Off, Liberty, LTRIP’s former parent company, distributed, by means of a dividend, to the holders of its Liberty Ventures common stock, Liberty’s entire equity interest in LTRIP. As a result of the Liberty Spin-Off, LTRIP became a separate, publicly traded company and 100% of Liberty’s interest in TripAdvisor is now held by LTRIP. As of December 31, 2015, LTRIP beneficially owned 18,159,752 shares of our common stock and 12,799,999 shares of our Class B common stock, which shares constitute 13.7% of the outstanding shares of Common Stock and 100% of the outstanding shares of Class B common stock. Assuming the conversion of all of LTRIP’s shares of Class B common stock into common stock, LTRIP would beneficially own 21.3% of the outstanding common stock (calculated in accordance with Rule 13d-3). Because each share of Class B common stock generally is entitled to ten votes per share and each share of common stock is entitled to one vote per share, LTRIP may be deemed to beneficially own equity securities representing approximately 56.1% of our voting power. Description of Business TripAdvisor is an online travel company, empowering users to plan and book the perfect trip. TripAdvisor’s travel research platform aggregates reviews and opinions of members about destinations, accommodations, activities and attractions, and restaurants throughout the world so that our users have access to trusted advice wherever their trips take them. Our platform not only helps users plan their trips with our unique user-generated content, but also enables users to compare real-time pricing and availability so that they can book hotels, vacation rentals, flights, activities and attractions, and restaurants. Our flagship brand is TripAdvisor. TripAdvisor-branded websites include tripadvisor.com in the United States and localized versions of the website in 46 countries worldwide. In addition to the flagship TripAdvisor brand, we manage and operate 23 other media brands, connected by the common goal of providing comprehensive travel planning resources across the travel sector, which include; www.airfarewatchdog.com, www.bookingbuddy.com, www.cruisecritic.com, www.everytrail.com, www.familyvacationcritic.com, www.flipkey.com, www.gateguru.com, www.holidaylettings.co.uk, www.holidaywatchdog.com, www.independenttraveler.com, www.jetsetter.com, www.thefork.com (including www.lafourchette.com, www.eltenedor.com, www.iens.nl, www.besttables.com, and www.dimmi.com.au), www.niumba.com, www.onetime.com, www.oyster.com, www.seatguru.com, www.smartertravel.com, www.tingo.com, www.travelpod.com, www.tripbod.com, www.vacationhomerentals.com, www.viator.com, and www.virtualtourist.com. We derive the substantial portion of our revenue through the sale of advertising, primarily through click-based advertising and, to a lesser extent, display-based advertising. In addition, we earn revenue from a combination of: subscription-based and transaction-based offerings from our Business Listings products; subscription and commission-based offerings from our Vacation Rentals products; room reservations sold through our Jetsetter and Tingo brands; destination activities primarily sold through Viator; and online restaurant reservations booked primarily through Lafourchette, or thefork.com. We have two reportable segments: Hotel and Other. Our Other segment consists of the aggregation of three operating segments, which include our Vacation Rentals, Restaurants and Attractions businesses. Our operating segments are determined based on how our chief operating decision maker manages our business, regularly assesses information and evaluates performance for operating decision-making purposes, including allocation of resources. For further information on our reportable segments see “Note 16 — Segment and Geographic Information,” in the notes to our consolidated financial statements. Seasonality The global travel market is large and traveler expenditures tend to follow a seasonal pattern. As such, expenditures by travel advertisers to market to potential travelers, and, therefore, our financial performance, tend to be seasonal as well. As a result, our third quarter tends to be our seasonal high, as it is a key period for travel research and trip-taking, and our seasonal low generally occurs in the first and/or fourth quarter. Significant shifts in our business mix or adverse economic conditions could influence the typical trend of our seasonality in the future.

Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Significant Accounting Policies

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements include TripAdvisor, our wholly-owned subsidiaries, and entities we control, or in which we have a variable interest and are the primary beneficiary of expected cash profits or losses. We have eliminated significant intercompany transactions and accounts. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”).

We have an operating subsidiary in China that has variable interests in an affiliated entity in China in order to comply with Chinese laws and regulations, which restrict foreign investment in Internet content provision businesses. Although we do not own the capital stock of this Chinese affiliate, we consolidate its results as we are the primary beneficiary of the cash losses or profits of this variable interest affiliate and have the power to direct the activities of this affiliate. Our variable interest entity is not material for all periods presented.

Accounting Estimates

We use estimates and assumptions in the preparation of our consolidated financial statements in accordance with GAAP. Our estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our consolidated financial statements. These estimates and assumptions also affect the reported amount of net income or loss during any period. Our actual financial results could differ significantly from these estimates. The significant estimates underlying our consolidated financial statements include: (i) recoverability of intangible assets, goodwill and other long-lived assets; (ii) accounting for income taxes; (iii) purchase accounting for business combinations; and (iv) stock-based compensation.

Reclassifications

Refer to our discussion in “Recently Adopted Accounting Pronouncements” below for required prior period reclassifications resulting from the early adoption of new accounting guidance. All other reclassifications, made to conform the prior period to the current presentation, were not material and had no net effect on our consolidated financial statements.

Revenue Recognition

We recognize revenue from our services rendered when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. Deferred revenue, which primarily relates to our subscription-based and commission based arrangements, is recorded when payments are received in advance of our performance as required by the underlying agreements.

Click-based Advertising. Revenue is derived primarily from click-through fees charged to our travel partners for traveler leads sent to the travel partners’ website. We record revenue from click-through fees after the traveler makes the click-through to the travel partners’ websites.

Instant booking commission revenue is also included in click-based advertising revenue and is recorded at the time a traveler books a hotel transaction on our site where we do not assume cancellation risk, or the transaction model. In transactions in which we assume cancellation risk, we record revenue in the month in which the traveler’s stay at a hotel occurs, or the consumption model. We have no post-booking service obligations for instant booking transactions.

Display-based Advertising. We recognize display-based advertising revenue ratably over the advertising period or upon delivery of advertising impressions, depending on the terms of the advertising contract. Subscription-based revenue is recognized ratably over the related contractual period over which service is delivered.

Attractions. We receive cash from the consumer at the time of booking of the destination activity and record these amounts, net of commissions, as deferred merchant payables on our consolidated balance sheet. Commission revenue is recorded as deferred revenue at the time of booking and later recognized when the consumer has completed the destination activity. We pay the destination activity operators after the travelers’ use.

Restaurants. We recognize reservation revenues (or per seated diner fees) on a transaction-by-transaction basis as diners are seated by our restaurant customers. Subscription-based revenue is recognized ratably over the related contractual period over which the service is delivered.

Vacation Rentals. We generate revenue from customers for online advertising services related to the listing of their properties for rent primarily on either a subscription basis over a fixed-term, or on a commission basis for transactions that are booked on our platform. Payments for term-based subscriptions received in advance of services being rendered are recorded as deferred revenue and recognized ratably to revenue on a straight-line basis over the listing period. Our commission revenue is primarily generated on our free-to-list option, in lieu of a pre-paid subscription fee. When a commissionable transaction is booked on our platform, we receive cash from the traveler that includes both our commission, which is recorded as deferred revenue, and the amount due to the property owner, which is recorded to deferred merchant payables on our consolidated balance sheet. We pay the amount due to the property owner and recognize our commission revenue at the time of the traveler’s stay. Additional revenues are derived on a pay-per-lead basis, as we provide leads for rental properties to property managers. Pay-per-lead revenue is billed and recognized in the period when the leads are delivered to the property managers.

Cost of Revenue

Cost of revenue consists of expenses that are directly related or closely correlated to revenue generation, including direct costs, such as ad serving fees, flight search fees, transaction fees and data center costs. In addition, cost of revenue includes personnel and overhead expenses, including salaries, benefits, stock-based compensation and bonuses for certain customer support personnel who are directly involved in revenue generation.

Selling and Marketing

Sales and marketing expenses primarily consist of direct costs, including SEM and other online traffic acquisition costs, syndication costs and affiliate program commissions, brand advertising, television and other offline advertising, and public relations. In addition, our indirect sales and marketing expense consists of personnel and overhead expenses, including salaries, commissions, benefits, stock-based compensation and bonuses for sales, sales support, customer support and marketing employees.

Technology and Content

Technology and content expenses consist of personnel and overhead expenses, including salaries and benefits, stock-based compensation and bonuses for salaried employees and contractors engaged in the design, development, testing, content support, and maintenance of our websites and mobile apps. Other costs include licensing, maintenance expense, computer supplies, and technology hardware.

General and Administrative

General and administrative expense consists primarily of personnel and related overhead costs, for personnel engaged in executive leadership, finance, legal, and human resources, including stock-based compensation. General and administrative costs also include professional service fees and other fees including audit, legal, tax and accounting, and other costs, including bad debt expense and charitable contributions.

Cash, Cash Equivalents and Marketable Securities

Our cash equivalents consist of highly liquid investments with maturities of 90 days or less at the date of purchase. Our marketable debt and equity securities have been classified and accounted for as available-for-sale. We determine the appropriate classification of our investments at the time of purchase and reevaluate the designations at each balance sheet date. We invest in highly-rated securities, and our investment policy limits the amount of credit exposure to any one issuer, industry group and currency. The policy requires investments to be investment grade, with the primary objective of minimizing the potential risk of principal loss and providing liquidity of investments sufficient to meet our operating and capital spending requirements and debt repayments.

We classify our marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date and as to whether and when we intend to sell a particular security prior to its maturity date. Marketable debt securities with maturities greater than 90 days at the date of purchase and 12 months or less remaining at the balance sheet date will be classified as short-term and marketable debt securities with maturities greater than 12 months from the balance sheet date will generally be classified as long-term. We classify our marketable equity securities, limited to money market funds and mutual funds, as either short-term or long-term based on the nature of each security and its availability for use in current operations. Our marketable debt and equity securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported in accumulated other comprehensive income (loss) as a component of stockholders’ equity. Fair values are determined for each individual security in the investment portfolio.

Realized gains and losses on the sale of securities are determined by specific identification of each security’s cost basis. We may sell certain of our marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and liquidity and duration management. The weighted average maturity of our total invested cash shall not exceed 18 months, and no security shall have a final maturity date greater than three years, according to our investment policy.

We continually review our available for sale securities to determine whether a decline in fair value below the carrying value is other than temporary. When evaluating an investment for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, and our intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s cost basis. Once a decline in fair value is determined to be other than temporary, an impairment charge is recorded and a new cost basis in the investment is established. If we do not intend to sell the debt security, but it is probable that we will not collect all amounts due, then only the impairment due to the credit risk would be recognized in earnings and the remaining amount of the impairment would be recognized in accumulated other comprehensive loss within stockholders’ equity.

Cash consists of cash deposits held in global financial institutions.

Fair Value Measurements

We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. We measure assets and liabilities at fair value based on the expected exit price, which is the amount that would be received on the sale of an asset or amount paid to transfer a liability, as the case may be, in an orderly transaction between market participants in the principal or most advantageous market in which we would transact. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability at the measurement date. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:

Level 1—Valuations are based on quoted prices for identical assets and liabilities in active markets.

Level 2—Valuations are based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3—Valuations are based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

Derivative Financial Instruments

Our goal in managing our foreign exchange risk is to reduce, to the extent practicable, our potential exposure to the changes that exchange rates might have on our earnings, cash flows and financial position. We do not use derivatives for trading or speculative purposes. We account for our derivative instruments as either assets or liabilities and carry them at fair value.

In certain circumstances, we enter into foreign currency forward exchange contracts (“forward contracts”) to reduce the effects of fluctuating foreign currency exchange rates on our cash flows denominated in foreign currencies. Our derivative instruments or forward contracts entered into which are not designated as hedges as of December 31, 2015 are disclosed below in “Note 5— Financial Instruments” in the notes to the consolidated financial statements. Derivatives that do not qualify for hedge accounting must be adjusted to fair value through current income. Monetary assets and liabilities denominated in a currency other than the functional currency of a given subsidiary are remeasured at spot rates in effect on the balance sheet date with the effects of changes in spot rates reported in other, net on our consolidated statements of operations. Accordingly, fair value changes in the forward contracts help mitigate the changes in the value of the remeasured assets and liabilities attributable to changes in foreign currency exchange rates, except to the extent of the spot-forward differences. These differences are not expected to be significant due to the short-term nature of the contracts, which to date, have generally had maturities at inception of 90 days or less. The net cash received or paid related to our derivative instruments are classified as an operating activity in our consolidated statements of cash flow, which is based on the objective of the derivative instruments. These net cash flows have not been material in any reporting period to date.

We have not entered into any cash flow, fair value or net investment hedges to date as of December 31, 2015.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are generally due within 30 days and are recorded net of an allowance for doubtful accounts. We record accounts receivable at the invoiced amount. Collateral is not required for accounts receivable. We consider accounts outstanding longer than the contractual payment terms as past due. We determine our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, a specific customer’s ability to pay its obligations to us, and the condition of the general economy and industry as a whole.

The following table presents the changes in the allowance for doubtful accounts for the periods presented:

	December 31,
	2015			2014		2013
	(in millions)
Allowance for doubtful accounts:
Balance, beginning of period	$	7		$	3	$	3
Charges (recoveries) to earnings		3			3		1
Write-offs, net of recoveries and other adjustments		(4	)		1		(1	)
Balance, end of period	$	6		$	7	$	3

Property and Equipment, Including Website and Software Development Costs

We record property and equipment at cost, net of accumulated depreciation. We capitalize certain costs incurred during the application development stage related to the development of websites and internal use software when it is probable the project will be completed and the software will be used as intended. Capitalized costs include internal and external costs, if direct and incremental, and deemed by management to be significant. We expense costs related to the planning and post-implementation phases of software and website development as these costs are incurred. Maintenance and enhancement costs (including those costs in the post-implementation stages) are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the website or software resulting in added functionality, in which case the costs are capitalized.

We compute depreciation using the straight-line method over the estimated useful lives of the assets, which is three to five years for computer equipment, capitalized software and website development, office furniture and other equipment. We depreciate leasehold improvements using the straight-line method, over the shorter of the estimated useful life of the improvement or the remaining term of the lease. We depreciate our corporate headquarter building, which is considered an asset for accounting purposes as the building lease is considered a financing obligation under GAAP, over its estimated useful life of 40 years.

Leases

We lease office space in several countries around the world under non-cancelable lease agreements. We generally lease our office facilities under operating lease agreements. Office facilities subject to an operating lease and the related lease payments are not recorded on our balance sheet. The terms of certain lease agreements provide for rental payments on a graduated basis, however, we recognize rent expense on a straight-line basis over the lease period in accordance with GAAP. Any lease incentives are recognized as reductions of rental expense on a straight-line basis over the term of the lease. The lease term begins on the date we become legally obligated for the rent payments or when we take possession of the office space, whichever is earlier.

We establish assets and liabilities for the estimated construction costs incurred under lease arrangements where we are considered the owner for accounting purposes only, or build-to-suit leases, to the extent we are involved in the construction of structural improvements or take construction risk prior to commencement of a lease. Upon occupancy of facilities under build-to-suit leases, we assess whether these arrangements qualify for sales recognition under the sale-leaseback accounting guidance under GAAP. If we continue to be the deemed owner, for accounting purposes, the facilities are accounted for as financing obligations.

We establish assets and liabilities for the present value of estimated future costs to return certain of our leased facilities to their original condition for asset retirement obligations. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs and are included in other long-term liabilities on our consolidated balance sheet.

Business Combination Valuations and Recoverability of Goodwill and Indefinite-Lived Intangible Assets

Goodwill

We account for acquired businesses using the purchase method of accounting which requires that the assets acquired and liabilities assumed be recorded at the date of acquisition at their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. We assess goodwill, which is not amortized, for impairment annually on October 1, or more frequently, if events and circumstances indicate impairment may have occurred. We test goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment). Each of our operating segments with goodwill represents a reporting unit for the purpose of assessing impairment. Goodwill is allocated to our reporting units at the date the goodwill is initially recorded. Once goodwill has been allocated to the reporting units, it no longer retains its identification with a particular acquisition and becomes identified with the reporting unit in its entirety. Accordingly, the fair value of the reporting unit as a whole is available to support the recoverability of its goodwill.

In the evaluation of goodwill for impairment, we generally first perform a qualitative assessment to determine whether it is more likely than not (i.e., a likelihood of more than 50%) that the implied fair value of the reporting unit is less than the carrying amount. If we determine that it is not more likely than not that the implied fair value of the goodwill is less than its carrying amount, no further testing is necessary. If, however, we determine that it is more likely than not that the implied fair value of the goodwill is less than its carrying amount, we then perform a quantitative assessment and compare the implied fair value of the reporting unit to the carrying value. If the carrying value of a reporting unit exceeds its implied fair value, the goodwill of that reporting unit is potentially impaired and we proceed to step two of the impairment analysis. In step two of the analysis, we will record an impairment loss equal to the excess of the carrying value of the reporting unit’s goodwill over its implied fair value should such a circumstance arise.

In determining the estimated fair value of assets acquired and liabilities assumed in business combinations and for determining implied fair values of reporting units in a quantitative goodwill impairment test, we use one, or a blend, of the following recognized valuation methods: the income approach (including discounted cash flows), the market approach or the cost approach. Our significant estimates in those fair value measurements include identifying business factors such as size, growth, profitability, risk and return on investment and assessing comparable revenue and/or operating income multiples. Further, when measuring fair value based on discounted cash flows, we make assumptions about risk-adjusted discount rates, future price levels, rates of increase in revenue, cost of revenue, and operating expenses, weighted average cost of capital, rates of long-term growth, and income tax rates. Valuations are performed by management or third party valuation specialists under management's supervision, where appropriate. We believe that the fair values assigned to the assets acquired and liabilities assumed in business combinations and impairment tests are based on reasonable assumptions that marketplace participants would use. However, such assumptions are inherently uncertain and actual results could differ from those estimates.

As part of our qualitative assessment for our 2015 goodwill impairment analysis, the factors that we considered included, but were not limited to: (a) changes in macroeconomic conditions in the overall economy and the specific markets in which we operate, (b) our ability to access capital, (c) changes in the online travel industry, (d) changes in the level of competition, (e) comparison of our current financial performance to historical and budgeted results, and (f) changes in excess market capitalization over book value based on our common stock price and other market specific information. After considering these factors and the impact that changes in such factors would have on the inputs used in our previous quantitative assessment, we determined that it was more likely than not that goodwill was not impaired for any of our reporting units.

Indefinite-Lived Intangible Assets

Intangible assets that have indefinite lives are not amortized and are tested for impairment annually on October 1, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Similar to the qualitative assessment for goodwill, we may assess qualitative factors to determine if it is more likely than not that the implied fair value of the indefinite-lived intangible asset is less than its carrying amount. If we determine that it is not more likely than not that the implied fair value of the indefinite-lived intangible asset is less than its carrying amount, no further testing is necessary. If, however, we determine that it is more likely than not that the implied fair value of the indefinite-lived intangible asset is less than its carrying amount, we compare the implied fair value of the indefinite-lived asset with its carrying amount. If the carrying value of an individual indefinite-lived intangible asset exceeds its implied fair value, the individual asset is written down by an amount equal to such excess. The assessment of qualitative factors is optional and at our discretion. We may bypass the qualitative assessment for any indefinite-lived intangible asset in any period and resume performing the qualitative assessment in any subsequent period.

As part of our qualitative assessment for our 2015 impairment analysis, the factors that we considered for our indefinite-lived intangible assets included, but were not limited to: (a) changes in macroeconomic conditions in the overall economy and the specific markets in which we operate, (b) our ability to access capital, (c) changes in the online travel industry, (d) changes in the level of competition, (e) comparison of our current financial performance to historical and budgeted results, (f) changes in excess market capitalization over book value based on our common stock price, and (g) the amount of excess of the fair value of our trade names and trademarks to the carrying value of those same assets, using the results of our most recent quantitative assessment. After considering these factors and the impact that changes in such factors would have on the inputs used in our previous quantitative assessment, we determined that it was more likely than not that these assets were not impaired.

Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets

Intangible assets with definite lives and other long-lived assets are carried at cost and are amortized on a straight-line basis over their estimated useful lives of one to twelve years. The straight-line method of amortization is currently used for our definite-lived intangible assets as it approximates, or is our best estimate, of the distribution of the economic use of our identifiable intangible assets. We review the carrying value of long-lived assets or asset groups, including property and equipment, to be used in operations whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable.

Factors that would necessitate an impairment assessment include a significant adverse change in the extent or manner in which an asset is used, a significant adverse change in legal factors or the business climate that could affect the value of the asset, or a significant decline in the observable market value of an asset, among others. If such facts indicate a potential impairment, we assess the recoverability of the asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset of the group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, we will estimate the fair value of the asset group using appropriate valuation methodologies which would typically include an estimate of discounted cash flows. Any impairment would be measured by the amount that the carrying value of such asset groups exceed their fair value and would be included in operating income on the consolidated statement of operations. We have not identified any circumstances that would warrant an impairment charge for any recorded definite lived or other long term assets on our consolidated balance sheet at December 31, 2015.

Income Taxes

We record income taxes under the asset and liability method. Deferred tax assets and liabilities reflect our estimation of the future tax consequences of temporary differences between the carrying amounts of assets and liabilities for book and tax purposes. We determine deferred income taxes based on the differences in accounting methods and timing between financial statement and income tax reporting. Accordingly, we determine the deferred tax asset or liability for each temporary difference based on the enacted tax rates expected to be in effect when we realize the underlying items of income and expense. We consider all relevant factors when assessing the likelihood of future realization of our deferred tax assets, including our recent earnings experience by jurisdiction, expectations of future taxable income, and the carryforward periods available to us for tax reporting purposes, as well as assessing available tax planning strategies. We may establish a valuation allowance to reduce deferred tax assets to the amount we believe is more likely than not to be realized. Due to inherent complexities arising from the nature of our businesses, future changes in income tax law, tax sharing agreements or variances between our actual and anticipated operating results, we make certain judgments and estimates. Therefore, actual income taxes could materially vary from these estimates.

We record liabilities to address uncertain tax positions we have taken in previously filed tax returns or that we expect to take in a future tax return. The determination for required liabilities is based upon an analysis of each individual tax position, taking into consideration whether it is more likely than not that our tax position, based on technical merits, will be sustained upon examination.

Foreign Currency Translation and Transaction Gains and Losses

Our consolidated financial statements are reported in U.S. dollars. Certain of our subsidiaries outside of the United States use the related local currency as their functional currency and not the U.S. dollar. Therefore assets and liabilities of our foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date, and the consolidated statements of operations are translated at the average exchange rates in effect during the applicable period. The resulting unrealized cumulative translation adjustment is recorded as a component of accumulated other comprehensive income(loss) in stockholders’ equity on our consolidated balance sheet.

We also have subsidiaries that have transactions in foreign currencies other than their functional currency. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses which are reflected in our consolidated statements of operations as unrealized (based on the applicable period-end exchange rate) or realized upon settlement of the transactions, in interest income and other, net.

Accordingly, we have recorded foreign exchange losses of $4 million, $10 million and $0 million for the years ended December 31, 2015, 2014 and 2013, respectively, in interest income and other, net on our consolidated statement of operations. These amounts also include gains and losses, realized and unrealized, on foreign currency forward contracts.

Advertising Expense

We incur advertising expense, which includes traffic generation costs from search engines and Internet portals, other online and offline (including television) advertising expense, promotions and public relations to promote our business. We expense the costs associated with communicating the advertisements in the period in which the advertisement takes place. We initially capitalize and then expense the production costs associated with television advertisements in the period in which the advertisement first takes place. For the years ended December 31, 2015, 2014 and 2013, our advertising expense was $507 million, $341 million, and $237 million, respectively. As of December 31, 2015 and 2014, we had $2 million and $5 million of prepaid marketing expenses included in prepaid expenses and other current assets. We expect to fully expense our prepaid marketing asset of $2 million as of December 31, 2015 to the consolidated statement of operations during 2016.

Stock-Based Compensation

Stock Options. The exercise price for all stock options granted by us to date has been equal to the market price of the underlying shares of common stock at the date of grant. In this regard, when making stock option awards, our practice is to determine the applicable grant date and to specify that the exercise price shall be the closing price of our common stock on the date of grant.

The estimated grant-date fair value of stock options is calculated using a Black-Scholes Merton option-pricing model (“Black-Scholes model”). The Black-Scholes model incorporates assumptions to value stock-based awards, which includes the risk-free rate of return, expected volatility, expected term and expected dividend yield.

Our risk-free interest rate is based on the rates currently available on zero-coupon U.S. Treasury issues, in effect at the time of the grant, whose remaining maturity period most closely approximates the stock option’s expected term assumption. Our expected volatility is calculated by equally weighting the historical volatility and implied volatility on our own stock. Historical volatility is determined using actual daily price observations of our stock price over a period equivalent to or approximate to the expected term of our stock option grants to date. Implied volatility represents the volatility of our actively traded options on our stock, with remaining maturities in excess of twelve months and market prices approximate to the exercise prices of the stock option grant. We estimate our expected term using historical exercise behavior and expected post-vest termination data. Our expected dividend yield is zero, as we have not paid any dividends on our common stock to date and do not expect to pay any cash dividends for the foreseeable future.

Our stock options generally have a term of ten years from the date of grant and generally vest equitably over a four-year requisite service period. We amortize the grant-date fair value of our stock option grants, net of estimated forfeitures, as stock-based compensation expense over the vesting term on a straight-line basis, with the amount of compensation expense recognized at any date at least equaling the portion of the grant-date fair value of the award that is vested at that date.

Restricted Stock Units. RSUs are stock awards that are granted to employees entitling the holder to shares of our common stock as the award vests. RSUs are measured at fair value based on the number of shares granted and the quoted price of our common stock at the date of grant. We amortize the fair value of RSUs, net of estimated forfeitures, as stock-based compensation expense over the vesting term of generally four years on a straight-line basis, with the amount of compensation expense recognized at any date at least equaling the portion of the grant-date fair value of the award that is vested at that date.

Performance-based stock options and RSUs vest upon achievement of certain company-based performance conditions and a requisite service period. On the date of grant, the fair value of a performance-based award is calculated using the same method as our service based stock options and RSUs described above. We then assess whether it is probable that the individual performance targets would be achieved. If assessed as probable, compensation expense will be recorded for these awards over the estimated performance period. At each reporting period, we will reassess the probability of achieving the performance targets and the performance period required to meet those targets. The estimation of whether the performance targets will be achieved and of the performance period required to achieve the targets requires judgment, and to the extent actual results or updated estimates differ from our current estimates, the cumulative effect on current and prior periods of those changes will be recorded in the period estimates are revised, or the change in estimate will be applied prospectively depending on whether the change affects the estimate of total compensation cost to be recognized or merely affects the period over which compensation cost is to be recognized. The ultimate number of shares issued and the related compensation expense recognized will be based on a comparison of the final performance metrics to the specified targets.

Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive these awards, and subsequent events are not indicative of the reasonableness of our original estimates of fair value. We use historical data to estimate pre-vesting stock option and RSU forfeitures and record share-based compensation expense only for those awards that are expected to vest. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment in the period of change which also impacts the amount of stock compensation expense to be recognized in future periods.

Treasury Stock

Shares of our common stock repurchased are recorded at cost as treasury stock and result in the reduction of stockholders' equity in our consolidated balance sheet. We may reissue these treasury shares. When treasury shares are reissued, we use the average cost method for determining the cost of reissued shares. If the issuance price is higher than the cost, the excess of the issuance price over the cost is credited to additional paid-in-capital. If the issuance price is lower than the cost, the difference is first charged against any credit balance in additional paid-in-capital from the previous issuances of treasury stock and the remaining balance is charged to retained earnings.

Deferred Merchant Payables

We receive cash from travelers at the time of booking related to our vacation rental, attractions and transaction-based businesses and we record these amounts, net of commissions, on our consolidated balance sheets as deferred merchant payables. We pay the hotel, attraction provider or vacation rental owner after the travelers’ use and subsequent billing from the hotel, attraction provider or vacation rental owner. Therefore, we receive cash from the traveler prior to paying the hotel, attraction provider or vacation rental owner, and this operating cycle represents a working capital source or use of cash to us. As long as these businesses grow, we expect that changes in working capital related to these transactions, depending on timing of payments and seasonality, will continue to impact operating cash flows. Our deferred merchant payables balance was $105 million and $93 million for the years ended December 31, 2015 and 2014, respectively.

Credit Risk and Concentrations

Financial instruments, which potentially subject us to concentration of credit risk, consist primarily of cash and cash equivalents, corporate debt securities, foreign exchange contracts, accounts receivable and customer concentrations. We maintain some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. Our cash and cash equivalents are primarily composed of prime institutional money market funds as well as bank account balances primarily denominated in U.S. dollars, Euros, British pound sterling, Chinese renminbi, Australian dollars and Singapore dollars. We invest in highly-rated corporate debt securities, and our investment policy limits the amount of credit exposure to any one issuer, industry group and currency. Our credit risk related to corporate debt securities is also mitigated by the relatively short maturity period required by our investment policy. Foreign exchange contracts are transacted with various international financial institutions with high credit standing.

Our business is also subject to certain risks due to concentrations related to dependence on our relationships with our customers. For the years ended December 31, 2015, 2014 and 2013 our two most significant advertising partners, Expedia and Priceline, each accounted for more than 10% of our consolidated revenue and combined accounted for 46%, 46% and 47% of our consolidated revenue, respectively. This concentration of revenue is recorded in our Hotel segment for these reporting periods. As of December 31, 2015 and 2014, Expedia accounted for 11% and 15%, respectively, of our total accounts receivable. Our overall credit risk related to accounts receivable is also mitigated by the relatively short collection period.

Contingent Liabilities

Periodically, we review the status of all significant outstanding matters to assess any potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated statements of operations. We provide disclosure in the notes to the consolidated financial statements for loss contingencies that do not meet both these conditions if there is a reasonable possibility that a loss may have been incurred that would be material to the financial statements. Significant judgment may be required to determine the probability that a liability has been incurred and whether such liability is reasonably estimable. We base accruals made on the best information available at the time which can be highly subjective. The final outcome of these matters could vary significantly from the amounts included in the accompanying consolidated financial statements.

Comprehensive Income (Loss)

Comprehensive income (loss) currently consists of net income, cumulative foreign currency translation adjustments, and unrealized gains and losses on available-for-sale securities, net of tax.

Earnings Per Share (“EPS”)

Basic Earnings Per Share

We compute basic earnings per share (“Basic EPS”) by dividing net income by the weighted average number of common shares outstanding during the period. We compute the weighted average number of common shares outstanding during the reporting period using the total of common stock and Class B common stock outstanding as of the last day of the previous year end reporting period plus the weighted average of any additional shares issued and outstanding less the weighted average of any treasury shares repurchased during the reporting period.

Diluted Earnings Per Share

We compute diluted earnings per share (“Diluted EPS”) by dividing net income by the sum of the weighted average number of common and common equivalent shares outstanding during the period. We computed the weighted average number of common and common equivalent shares outstanding during the period using the sum of (i) the number of shares of common stock and Class B common stock used in the basic earnings per share calculation as indicated above, and (ii) if dilutive, the incremental weighted average common stock that we would issue upon the assumed exercise of outstanding common equivalent shares related to stock options and the vesting of restricted stock units using the treasury stock method, and (iii) if dilutive, performance based awards based on the number of shares that would be issuable as of the end of the reporting period assuming the end of the reporting period was also the end of the contingency period.

Under the treasury stock method, the assumed proceeds calculation includes the actual proceeds to be received from the employee upon exercise, the average unrecognized compensation cost during the period and any tax benefits credited upon exercise to additional paid-in-capital. The treasury stock method assumes that a company uses the proceeds from the exercise of an award to repurchase common stock at the average market price for the period. Windfall tax benefits created upon the exercise of an award would be added to assumed proceeds, while shortfalls charged to additional paid-in-capital would be deducted from assumed proceeds. Any shortfalls not covered by the windfall tax pool would be charged to the income statement and would be excluded from the calculation of assumed proceeds, if any.

Below is a reconciliation of the weighted average number of shares of common stock outstanding in calculating Diluted EPS (shares in thousands and dollars in millions, except per share amounts) for the periods presented:

	Year ended December 31,
	2015		2014		2013
Numerator:
Net income	$	198	$	226	$	205
Denominator:
Weighted average shares used to compute Basic EPS		143,836		142,721		142,854
Weighted average effect of dilutive securities:
Stock options		1,839		2,734		2,131
RSUs		292		345		278
Weighted average shares used to compute Diluted EPS		145,967		145,800		145,263
Basic EPS	$	1.38	$	1.58	$	1.44
Diluted EPS	$	1.36	$	1.55	$	1.41

The following potential common shares related to stock options and RSUs were excluded from the calculation of Diluted EPS because their effect would have been anti-dilutive for the periods presented:

	Year ended December 31,
	2015(1)		2014(2)		2013(3)
Stock options		2,142		1,450		2,244
RSUs		562		191		27
Total		2,704		1,641		2,271

(1)

These totals do not include 66,666 performance based options and 12,799 performance based RSUs representing the right to acquire 79,465 shares of common stock for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.

(2)

These totals do not include 66,666 performance based options and 44,000 performance based RSUs representing the right to acquire 110,666 shares of common stock for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.

(3)

These totals do not include 155,000 performance based options and 44,000 performance based RSUs representing the right to acquire 199,000 shares of common stock, respectively, for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.

The earnings per share amounts are the same for common stock and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation.

New Accounting Pronouncements Not Yet Adopted

In September 2015, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts that would have been recorded in previous periods if the accounting had been completed at the acquisition date. This update is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The planned adoption of this guidance in 2016 is not expected to have a material impact on our consolidated financial statements and related disclosures.

In May 2014, the FASB issued new accounting guidance on revenue from contracts with customers. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a full retrospective approach or a modified retrospective approach, which requires the initial cumulative effect to be recognized at the date of initial application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted for fiscal years beginning after December 15, 2016. We have not yet selected a transition method and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements or related disclosures.

Recently Adopted Accounting Pronouncements

In November 2015, the FASB issued new accounting guidance which requires an entity to present deferred tax assets and deferred tax liabilities as noncurrent on the consolidated balance sheet. This guidance is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company has early adopted this guidance and has applied the requirements retrospectively to all periods presented. The adoption of this guidance resulted in the reclassification of $10 million from current deferred income tax assets to noncurrent deferred income tax liabilities on the consolidated balance sheet as of December 31, 2014.

In April 2015, the FASB issued new accounting guidance which requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. In August 2015, additional accounting guidance was issued on this topic that clarifies the April 2015 guidance for debt issuance costs associated with line-of-credit arrangements, which states the FASB would not object to the continued deferral and presentation of debt issuance costs as an asset, which would be subsequently amortized over the term of the arrangement. This guidance is effective for fiscal years, and the interim periods within those fiscal years, beginning after December 15, 2015, with early application permitted. The Company has early adopted this guidance. The retrospective application of this guidance decreased “Other long-term assets” and “Long-term debt” by $1 million on the consolidated balance sheet as of December 31, 2014. Refer to “Note 8— Debt” below for the current year presentation.

Acquisitions and Dispositions

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Acquisitions and Dispositions

NOTE 3: ACQUISITIONS AND DISPOSITIONS

We acquired a number of businesses during the years ended December 31, 2015, 2014 and 2013. These business combinations were accounted for as purchases of businesses under the acquisition method. The fair value of purchase consideration has been allocated to tangible and identifiable intangible assets acquired and liabilities assumed, based on their respective fair values on the acquisition date, with the remaining amount recorded to goodwill. Acquired goodwill represents the premium we paid over the fair value of the net tangible and intangible assets acquired. We paid a premium in each of these transactions for a number of reasons, including expected operational synergies, the assembled workforces, and the future development initiatives of the assembled workforces. The results of each of these acquired businesses have been included in the consolidated financial statements beginning on the respective acquisition dates. For the years ended December 31, 2015, 2014 and 2013, acquisition-related costs were expensed as incurred and were $1 million, $4 million and $2 million, respectively, and are included in general and administrative expenses on our consolidated statements of operations.

2015 Acquisition of Businesses

During the year ended December 31, 2015, we completed three acquisitions for a total purchase price consideration of $28 million and paid in cash. The cash consideration was paid primarily from our international subsidiaries. We acquired 100% of the outstanding capital stock of the following companies: ZeTrip, a personal journal app that helps users log activities, including places they have visited and photos they have taken, purchased in January 2015; BestTables, a provider of an online and mobile reservations platform for restaurants in Portugal and Brazil, purchased in March 2015; and Dimmi, a provider of an online and mobile reservations platform for restaurants in Australia, purchased in May 2015.

The purchase price allocation of our 2015 acquisitions is preliminary and subject to revision as more information becomes available, but in any case will not be revised beyond twelve months after the acquisition date and any change to the fair value of assets acquired or liabilities assumed will lead to a corresponding change to the purchase price allocable to goodwill on a retroactive basis. The primary area of the purchase price allocation which is not yet finalized is related to income tax net operating losses for all 2015 acquisitions. Acquired goodwill related to our 2015 acquisitions was primarily allocated to our Other segment and is not deductible for tax purposes. Pro-forma results of operations for these acquisitions have not been presented as the financial impact to our consolidated financial statements, both individually and in aggregate, would not be materially different from historical results.

The following table presents the purchase price allocations recorded on our consolidated balance sheet for all 2015 acquisitions (in millions):

	Total
Goodwill	$	17
Intangible assets (1)		12
Net tangible assets		1
Deferred tax liabilities, net		(2	)
Total purchase price consideration (2)	$	28

(1)

Identifiable definite-lived intangible assets acquired during 2015 were comprised of trade names of $2 million with a weighted average life of approximately 10 years, customer lists and supplier relationships of $7 million with a weighted average life of approximately 6 years and technology and other of $3 million with a weighted average life of approximately 2 years. The overall weighted-average life of the identifiable definite-lived intangible assets acquired in the purchase of these businesses during 2015 was 6 years, and will be amortized on a straight-line basis over their estimated useful lives from acquisition date.

(2)

Subject to adjustment based on indemnification obligations for general representations and warranties of the acquired company stockholders.

2015 Sale of Business

In August 2015, we sold 100% interest in one of our Chinese subsidiaries to an unrelated third party for $28 million in cash consideration. Accordingly, we deconsolidated $11 million of assets (which included $3 million of cash sold) and $4 million of liabilities from our consolidated balance sheet and recognized a $20 million gain on sale of subsidiary in our consolidated statements of operations in “Interest income and other, net” during the year ended December 31, 2015.

2014 Acquisition of Businesses

In August 2014, we completed our acquisition of Viator, Inc. Viator, which is headquartered in San Francisco and has offices in Las Vegas, London, and Sydney, is a leading resource for researching and booking destination activities around the world. Our total purchase price was $192 million, for all the outstanding shares of capital stock of Viator, consisting of approximately $187 million in cash consideration (or $132 million, net of cash acquired from Viator of $55 million) and the value of certain Viator stock options that were assumed. We issued 100,595 TripAdvisor stock options related to the assumed Viator stock options. The fair value of the earned portion of assumed stock options was $5 million and is included in the purchase price, with the remaining fair value of $3 million resulting in post-acquisition compensation expense that will generally be recognized ratably over three years from the date of acquisition. The total cash consideration was paid from one of our U.S. based subsidiaries.

During the year ended December 31, 2014, we completed six other acquisitions for a total purchase price consideration of $208 million, for which the Company paid total cash consideration of $199 million, which is net of cash acquired of $7 million and approximately $2 million in holdbacks for general representations and warranties of the respective sellers, of which $1 million was paid in 2015. The cash consideration was paid primarily from our international subsidiaries. We acquired 100% of the outstanding shares of capital stock for the following companies; Vacation Home Rentals, a U.S.-based vacation rental website featuring properties around the world purchased in May 2014; London-based Tripbod, a travel community that helps connect travelers to local experts purchased in May 2014; Lafourchette, a provider of an online and mobile reservations platform for restaurants in Europe purchased in May 2014; MyTable and Restopolis, both providers of an online and mobile reservations platform for restaurants in Italy purchased in October 2014; and Iens, a provider of an online and mobile reservations platform for restaurants in the Netherlands purchased in December 2014. During 2014, all 2014 acquisitions accounted for approximately 3% of consolidated revenue for the year. Pro-forma results of operations for these acquisitions have not been presented as the financial impact to our consolidated financial statements, both individually and in aggregate, would not have been materially different from historical results.

The following table presents the purchase price allocations recorded on our consolidated balance sheet for all 2014 acquisitions (in millions):

	Total
Goodwill (1)	$	253
Intangible assets (2)		194
Net tangible assets (liabilities) (3)		(7	)
Deferred tax liabilities, net		(40	)
Total purchase price consideration (4)	$	400

(1)	Goodwill in the amount of $5 million is expected to be deductible for tax purposes.

(2)

Identifiable definite-lived intangible assets acquired during 2014 were comprised of trade names of $44 million with a weighted average life of 10 years, customer lists and supplier relationships of $82 million with an approximate weighted average life of 7 years, subscriber relationships of $25 million with a weighted average life of 6 years and developed technology and other of $43 million with an approximate weighted average life of 5 years. The overall weighted-average life of the identifiable definite-lived intangible assets acquired in the purchase of the companies during 2014 was approximately 7 years, and will be amortized on a straight-line basis over their estimated useful lives from acquisition date.

(3)

Includes assets acquired, including cash of $62 million and accounts receivable of $25 million and liabilities assumed, including deferred merchant payables of $76 million, accrued expenses and other current liabilities of $15 million and deferred revenue of $5 million which reflect their respective fair values at acquisition date.

(4)	Subject to adjustment based on indemnification obligations for general representations and warranties of the acquired company stockholders.

2013 Acquisition of Businesses

During the year ended December 31, 2013, we completed six acquisitions for a total purchase price consideration of $40 million, for which the Company paid total cash consideration of $35 million, net of cash acquired of $3 million and approximately $2 million in holdbacks for general representations and warranties of the respective sellers, which have subsequently been paid. The cash consideration was paid primarily from our international subsidiaries. We acquired TinyPost, the developer of a product that enables users to write over photos and turn them into stories, Jetsetter, a members-only private sale site for hotel bookings; CruiseWise, a cruise research and planning site; Niumba, a Spain-based vacation rental site; GateGuru, a mobile app with flight and airport information around the world; Oyster, a hotel review website featuring expert reviews and photos around the world, all of which complemented our existing brands in those areas of the travel ecosystem. The purchase price of our 2013 acquisitions is considered final.

Stock Based Awards and Other Equity Instruments

12 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Based Awards and Other Equity Instruments

NOTE 4: STOCK BASED AWARDS AND OTHER EQUITY INSTRUMENTS

Stock-based Compensation Expense

The following table presents the amount of stock-based compensation related to stock-based awards, primarily stock options and RSUs, on our consolidated statements of operations during the periods presented:

	Year ended December 31,
	2015			2014			2013
	(in millions)
Selling and marketing	$	16		$	13		$	11
Technology and content		28			27			21
General and administrative		28			23			17
Total stock-based compensation expense		72			63			49
Income tax benefit from stock-based compensation expense		(26	)		(24	)		(18	)
Total stock-based compensation expense, net of tax effect	$	46		$	39		$	31

During the years ended December 31, 2015, 2014 and 2013, we capitalized $8 million, $8 million and $5 million, respectively, of stock-based compensation expense as website development costs.

Stock and Incentive Plans

On December 20, 2011, our 2011 Stock and Annual Incentive Plan became effective and we filed Post-Effective Amendment No. 1 on Form S-8 to Registration Statement on Form S-4 (File No. 333-178637) (the “Prior Registration Statement”) with the Securities and Exchange Commission (the “Commission”), registering a total of 17,500,000 shares of our common stock, of which 17,400,000 shares were issuable in connection with grants of equity-based awards under our 2011 Incentive Plan (7,400,000 of which shares were originally registered on the Form S-4 and 10,000,000 of which shares were first registered on the Prior Registration Statement) and 100,000 shares were issuable under our Deferred Compensation Plan for Non-Employee Directors (refer to “Note 13— Employee Benefit Plans” below for information on our Deferred Compensation Plan for Non-Employee Directors).

At our annual meeting of stockholders held on June 28, 2013 (the “Annual Meeting”), our stockholders approved an amendment to our 2011 Stock and Annual Incentive Plan to, among other things, increase the aggregate number of shares of common stock authorized for issuance thereunder by 15,000,000 shares. We refer to our 2011 Stock and Annual Incentive Plan, as amended by the amendment as the “2011 Incentive Plan.”

On September 12, 2014, we filed a Registration Statement on Form S-8 with respect to up to 100,595 shares of our common stock for issuance under the Viator, Inc. 2010 Stock Incentive Plan, as amended (the “Viator Plan”). Pursuant to the Amended and Restated Agreement and Plan of Merger among TripAdvisor LLC; Vineyard Acquisition Corporation and Viator, Inc., dated as of July 24, 2014 (the “Merger Agreement”), Vineyard Acquisition Corporation merged with and into Viator, Inc. with Viator, Inc. surviving as a wholly-owned subsidiary of the Company. In accordance with the Merger Agreement, we assumed certain outstanding options to purchase shares of common stock of Viator granted under the Viator Plan (the “Assumed Options”). As a result of this assumption, the Assumed Options were converted into options to purchase shares of our common stock. We do not intend to grant new equity or equity-based awards under the Viator Plan.

Pursuant to the 2011 Incentive Plan, we may, among other things, grant RSUs, restricted stock, stock options and other stock-based awards to our directors, officers, employees and consultants. The summary of the material terms of the 2011 Incentive Plan is qualified in its entirety by the full text of the 2011 Incentive Plan previously filed.

As of December 31, 2015, the total number of shares available for issuance under the 2011 Incentive Plan is 17,200,758 shares. All shares of common stock issued in respect of the exercise of options or other equity awards since Spin-Off have been issued from authorized, but unissued common stock.

Stock Based Award Activity and Valuation

2015 Stock Option Activity

During the year ended December 31, 2015, we have issued 586,851 of service based non-qualified stock options from the 2011 Incentive Plan. These stock options generally have a term of ten years from the date of grant and generally vest equitably over a four-year requisite service period.

A summary of our stock option activity is presented below:

				Weighted		Weighted
				Average		Average
				Exercise		Remaining		Aggregate
	Options			Price Per		Contractual		Intrinsic
	Outstanding			Share		Life		Value
	(in thousands)					(in years)		(in millions)
Options outstanding at December 31, 2014		8,651		$	44.47
Granted		587			83.78
Exercised (1)		(3,187	)		33.78
Cancelled or expired		(331	)		57.44
Options outstanding at December 31, 2015		5,720		$	53.71		5.6	$	187
Exercisable as of December 31, 2015		2,480		$	36.69		4.3	$	122
Vested and expected to vest after December 31, 2015		5,610		$	53.30		5.6	$	186

(1)

Aggregate intrinsic value represents the difference between the closing stock price of our common stock and the exercise price of outstanding, in-the-money options. Our closing stock price as reported on NASDAQ as of December 31, 2015 was $85.25. The total intrinsic value of stock options exercised for the years ended December 31, 2015, 2014, and 2013 were $149 million, $75 million, and $58 million, respectively.

The fair value of stock option grants has been estimated at the date of grant using the Black–Scholes option pricing model with the following weighted average assumptions for the periods presented:

	December 31,
	2015			2014			2013
Risk free interest rate		1.58	%		1.79	%		1.41	%
Expected term (in years)		5.42			5.80			6.06
Expected volatility		41.79	%		44.04	%		50.78	%
Expected dividend yield	— %			— %			— %

The weighted-average grant date fair value of options granted, excluding assumed acquisition-related options, was $33.02, $46.65, and $28.30 for the years ended December 31, 2015, 2014, and 2013, respectively. The weighted-average grant date fair value of assumed acquisition-related options was $80.31 for the year ended December 31, 2014. Refer to “Note 3— Acquisitions and Dispositions” in the notes to our consolidated financial statements for additional information on our acquisitions. The total fair value of stock options vested for the years ended December 31, 2015, 2014, and 2013 were $36 million, $34 million, and $27 million, respectively.

2015 RSU Activity

During the year ended December 31, 2015, we issued 1,016,626 RSUs under the 2011 Incentive Plan for which the fair value was measured based on the quoted price of our common stock on the date of grant. These RSUs generally vest over a four-year requisite service period.

The following table presents a summary of our RSU activity:

				Weighted
				Average
				Grant-		Aggregate
	RSUs			Date Fair		Intrinsic
	Outstanding			Value Per Share		Value
	(in thousands)					(in millions)
Unvested RSUs outstanding as of December 31, 2014		1,448		$	71.33
Granted		1,017			82.95
Vested and released (1)		(440	)		66.58
Cancelled		(275	)		72.76
Unvested RSUs outstanding as of December 31, 2015		1,750		$	79.02	$	149
Expected to vest after December 31, 2015		1,556		$	78.77	$	133

(1)

Inclusive of 128,341 RSUs withheld to satisfy employee minimum tax withholding requirements due to net share settlement. Potential shares which had been convertible under RSUs that were withheld under net share settlement remain in the authorized but unissued pool under the 2011 Incentive Plan and can be reissued by the Company. Total payments for the employees’ tax obligations to the taxing authorities due to net share settlements are reflected as a financing activity within the consolidated statements of cash flows.

Unrecognized Stock-Based Compensation

A summary of our remaining unrecognized compensation expense, net of estimated forfeitures, and the weighted average remaining amortization period at December 31, 2015 related to our non-vested stock options and RSU awards is presented below (in millions, except per year information):

	Stock
	Options		RSUs
Unrecognized compensation expense (net of forfeitures)	$	56	$	94
Weighted average period remaining (in years)		2.5		2.7

Financial Instruments

12 Months Ended

Dec. 31, 2015

Investments All Other Investments [Abstract]

Financial Instruments

NOTE 5: FINANCIAL INSTRUMENTS

Cash, Cash Equivalents and Marketable Securities

The following tables show our cash and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short and long-term marketable securities as of December 31, 2015 and December 31, 2014 (in millions):

	December 31, 2015
									Cash and		Short-Term		Long-Term
	Amortized		Unrealized		Unrealized		Fair		Cash		Marketable		Marketable
	Cost		Gains		Losses		Value		Equivalents		Securities		Securities
Cash	$	598	$	—	$	—	$	598	$	598	$	—	$	—
Level 1:
Money market funds		11		—		—		11		11		—		—
Level 2:
U.S. agency securities		13		—		—		13		—		9		4
U.S. treasury securities		16		—		—		16		4		12		—
Certificates of deposit		5		—		—		5		—		4		1
Commercial paper		1		—		—		1		—		1		—
Corporate debt securities		54		—		—		54		1		21		32
Subtotal		89		—		—		89		5		47		37
Total	$	698	$	—	$	—	$	698	$	614	$	47	$	37

	December 31, 2014
									Cash and		Short-Term		Long-Term
	Amortized		Unrealized		Unrealized		Fair		Cash		Marketable		Marketable
	Cost		Gains		Losses		Value		Equivalents		Securities		Securities
Cash	$	447	$	—	$	—	$	447	$	447	$	—	$	—
Level 1:
Money market funds		8		—		—		8		8		—		—
Level 2:
U.S. agency securities		38		—		—		38		—		35		3
Certificates of deposit		8		—		—		8		—		8		—
Commercial paper		1		—		—		1		—		1		—
Corporate debt securities		92		—		—		92		—		64		28
Subtotal		139		—		—		139		—		108		31
Total	$	594	$	—	$	—	$	594	$	455	$	108	$	31

Our cash and cash equivalents consist of cash on hand in global financial institutions, money market funds and marketable securities, with maturities of 90 days or less at the date purchased. The remaining maturities of our long-term marketable securities range from one to three years and our short-term marketable securities include maturities that were greater than 90 days at the date purchased and have 12 months or less remaining at December 31, 2015 and 2014, respectively.

We classify our cash equivalents and marketable securities within Level 1 and Level 2 as we value our cash equivalents and marketable securities using quoted market prices (Level 1) or alternative pricing sources (Level 2). The valuation technique we used to measure the fair value of money market funds were derived from quoted prices in active markets for identical assets or liabilities. Fair values for Level 2 investments are considered “Level 2” valuations because they are obtained from independent pricing sources for identical or comparable instruments, rather than direct observations of quoted prices in active markets. Our procedures include controls to ensure that appropriate fair values are recorded, including comparing the fair values obtained from our independent pricing services against fair values obtained from another independent source.

There were no material realized gains or losses related to sales of our marketable securities for the years ended December 31, 2015, 2014, and 2013. We consider any individual investments in an unrealized loss position to be temporary in nature and do not consider any of our investments other-than-temporarily impaired as of December 31, 2015.

Derivative Financial Instruments

Our current forward contracts are not designated as hedges and have current maturities of less than 90 days. Consequently, any gain or loss resulting from the change in fair value was recognized in our consolidated statement of operations. We recorded a net gain of $2 million and $1 million for the years ended December 31, 2015 and 2014, respectively, related to our settled and outstanding forward contracts in our consolidated statements of operations in “Interest income and other, net.” All gains and losses for the year ended December 31, 2013 were not material.

The following table shows the notional principal amounts of our outstanding derivative instruments that are not designated as hedging instruments for the periods presented:

December 31,

2015

December 31,

2014

(in millions)

Foreign exchange-forward contracts (1)(2)

(1)	Derivative contracts address foreign exchange fluctuations for the Euro versus the U.S. Dollar.

(2)

The fair value of our derivatives are not material for all periods presented and are reported as assets in prepaid expenses and other current assets on our consolidated balance sheets. We measure the fair value of our outstanding or unsettled derivatives using Level 2 fair value inputs, as we use a pricing model that takes into account the contract terms as well as current foreign currency exchange rates in active markets.

Concentration of Credit Risk

Counterparties to currency exchange derivatives consist of major international financial institutions. We monitor our positions and the credit ratings of the counterparties involved and, by policy limits, the amount of credit exposure to any one party. While we may be exposed to potential losses due to the credit risk of non-performance by these counterparties, losses are not anticipated and any credit risk amounts associated with our outstanding or unsettled derivative instruments are deemed to be not material for any period presented.

Other Financial Instruments

Other financial instruments not measured at fair value on a recurring basis include trade receivables, trade payables, deferred merchant payables, short-term debt, accrued and other current liabilities and long-term debt. With the exception of long-term debt, the carrying amount approximates fair value because of the short maturity of these instruments as reported on our consolidated balance sheets as of December 31, 2015 and December 31, 2014, respectively. The carrying value of the long-term debt from our 2015 Credit Facility bears interest at a variable rate and therefore is also considered to approximate fair value.

We did not have any Level 3 assets or liabilities at December 31, 2015 or 2014.

Property and Equipment, Net

12 Months Ended

Dec. 31, 2015

Property Plant And Equipment [Abstract]

Property and Equipment, Net

NOTE 6: PROPERTY AND EQUIPMENT, NET

Property and equipment consists of the following for the periods presented:

	December 31, 2015			December 31, 2014
	(in millions)
Capitalized software and website development	$	127		$	104
Building (1)		123			-
Leasehold improvements		32			40
Computer equipment		36			31
Furniture, office equipment and other		17			11
		335			186
Less: accumulated depreciation		(88	)		(77	)
Construction in progress (1)		-			86
Total	$	247		$	195

(1)

These amounts represent construction costs incurred by the landlord and the Company, related to our corporate headquarters in Needham, MA. During the years ended December 31, 2015 and 2014, we capitalized $6 million and $52 million, respectively, in non-cash construction costs which were incurred by the landlord, with a corresponding liability recorded in other long-term liabilities. Upon completion of construction at the end of the second quarter of 2015, this asset was reclassified to a building asset and we began depreciating it over an estimated useful life of 40 years on a straight-line basis. Refer to “Note 12 – Commitments and Contingencies,” for additional information on our corporate headquarters lease.

As of December 31, 2015 and 2014, our recorded capitalized software and website development costs, net of accumulated amortization, were $71 million and $61 million, respectively. For the years ended December 31, 2015 and 2014, we capitalized $52 million and $47 million, respectively, related to software and website development costs. For the years ended December 31, 2015, 2014 and 2013, we recorded amortization of capitalized software and website development costs of $37 million, $30 million and $20 million, respectively, which is included in depreciation expense on our consolidated statements of operations for those years.

During the year ended December 31, 2015, we retired and disposed of property and equipment, primarily capitalized software and website development and leasehold improvements, which were no longer in use and fully depreciated with a total cost of $39 million.

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

NOTE 7: GOODWILL AND INTANGIBLE ASSETS, NET

The following table summarizes our goodwill activity by segment for the periods presented:

	TripAdvisor			Hotel			Other			Consolidated
	(in millions)
Balance as of December 31, 2013	$	502		$	-		$	-		$	502
Acquisitions (1)		253			-			-			253
Other adjustments (2)		(21	)		-			-			(21	)
Allocation to new segments (3)		(734	)		442			292			-
Balance as of December 31, 2014	$	-		$	442		$	292		$	734
Acquisitions (1)		-			1			16			17
Disposition		-			(1	)		-			(1	)
Other adjustments (2)		-			-			(18	)		(18	)
Ending balance as of December 31, 2015	$	-		$	442		$	290		$	732

(1)	The additions to goodwill relate to our business acquisitions. See “Note 3— Acquisitions and Dispositions,” for further information.

(2)	Primarily related to impact of changes in foreign exchange rates to goodwill.

(3)	Reflects initial allocation of goodwill related to our reporting segment changes in the fourth quarter of 2014. See “Note 16—Segment and Geographic Information” for information on our segments.

Intangible assets, which were acquired in business combinations and recorded at fair value on the date of purchase, consist of the following for the periods presented:

	December 31,
		2015			2014
	(in millions)
Intangible assets with definite lives	$	198		$	202
Less: accumulated amortization		(52	)		(18	)
Intangible assets with definite lives, net		146			184
Intangible assets with indefinite lives		30			30
Total	$	176		$	214

Amortization expense was $36 million, $18 million, and $6 million, respectively, for the years ended December 31, 2015, 2014 and 2013. Our indefinite-lived assets relate to trade names and trademarks.

There were no impairment charges recognized to our consolidated statement of operations during the years ended December 31, 2015, 2014 and 2013 related to our goodwill or indefinite-lived intangible assets.

The following table presents the components of our intangible assets with definite lives for the periods presented:

			December 31, 2015							December 31, 2014
	Weighted Average		Gross					Net		Gross					Net
	Remaining Life		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	(in years)		Amount		Amortization			Amount		Amount		Amortization			Amount
			(in millions)							(in millions)
Trade names and trademarks		8.5	$	53	$	(9	)	$	44	$	52	$	(5	)	$	47
Customer lists and supplier relationships		5.4		82		(20	)		62		77		(5	)		72
Subscriber relationships		4.8		29		(9	)		20		31		(4	)		27
Technology and other		3.3		34		(14	)		20		42		(4	)		38
Total		6.0	$	198	$	(52	)	$	146	$	202	$	(18	)	$	184

Refer to “Note 3— Acquisitions and Dispositions” above for a discussion of definite lived intangible assets acquired in business combinations during the years ended December 31, 2015 and 2014.

Intangible assets with definite lives are amortized on a straight-line basis. The estimated amortization expense for intangible assets with definite lives for each of the next five years, and the expense thereafter, assuming no subsequent impairment of the underlying assets, is expected to be as follows (in millions):

2016	$	29
2017		28
2018		25
2019		22
2020		17
2021 and thereafter		25
Total	$	146

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

Accrued Expenses and Other Current Liabilities

Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt

NOTE 8: DEBT

The Company’s outstanding debt consisted of the following for the periods presented:

	December 31,		December 31,
	2015		2014
	(in millions)
Short-Term Debt:
Chinese Credit Facilities	$	1	$	38
Term Loan		-		40
Total Short-Term Debt	$	1	$	78

Long-Term Debt:
2015 Credit Facility	$	200	$	-
Term Loan		-		260
Less: Unamortized discount and debt issuance costs		-		(1	)
Total Long-Term Debt	$	200	$	259

2011 Credit Facility

On December 20, 2011, we entered into a credit agreement (the “2011 Credit Facility”), which provided $600 million of borrowing including:


—	a term loan facility in an aggregate principal amount of $400 million with a term of five years due December 2016 (“Term Loan”); and
—	a revolving credit facility in an aggregate principal amount of $200 million available in U.S. dollars, Euros and British pound sterling with a term of five years expiring December 2016.

On June 26, 2015, the entire outstanding principal on our Term Loan in the amount of $290 million was repaid with borrowings from our 2015 Credit Facility (described below) and the 2011 Credit Facility was subsequently terminated. The Company was able to repay the Term Loan debt and terminate the 2011 Credit Facility without premium or penalty. There was no resulting loss on early extinguishment of this debt.

During the years ended December 31, 2015, 2014 and 2013, we recorded total interest and commitment fees on our 2011 Credit Facility of $3 million, $6 million and $8 million, respectively, to interest expense on our consolidated statements of operations. All unpaid interest and commitment fee amounts as of December 31, 2014 were not material.

2015 Credit Facility

On June 26, 2015, we entered into a five year credit agreement with JPMorgan Chase Bank, N.A., as Administrative Agent; J.P. Morgan Europe Limited, as London Agent; Morgan Stanley Bank, N.A.; Bank of America, N.A.; BNP Paribas; SunTrust Bank; Wells Fargo Bank, National Association; Royal Bank of Canada; Barclays Bank PLC; U.S. Bank National Association; Citibank, N.A.; The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Goldman Sachs Bank USA; and Deutsche Bank AG New York Branch (the “2015 Credit Facility”).

The 2015 Credit Facility, among other things, provides for (i) a $1 billion unsecured revolving credit facility, (ii) an interest rate on borrowings and commitment fees based on the Company’s and its subsidiaries’ consolidated leverage ratio and (iii) uncommitted incremental revolving loan and term loan facilities, subject to compliance with a leverage covenant and other conditions. Any overdue amounts under or in respect of the revolving credit facility not paid when due shall bear interest at (i) in the case of principal, the applicable interest rate plus 2.00% per annum, (ii) in the case of interest denominated in Sterling or Euro, the applicable rate plus 2.00% per annum and (iii) in the case of interest denominated in US Dollars, 2.00% per annum plus the Alternate Base Rate plus the interest rate spread applicable to ABR loans. The Company may borrow from the revolving credit facility in U.S dollars, Euros and British pound sterling with a term of five years expiring June 26, 2020.

We immediately borrowed $290 million from this revolving credit facility, which was used to repay all outstanding borrowings pursuant to the 2011 Credit Facility and is recorded in long term liabilities on our consolidated balance sheet as of December 31, 2015. There is no specific repayment date prior to the five-year maturity date for borrowings under this revolving credit facility. During the year ended December 31, 2015, the Company has repaid $90 million of our outstanding borrowings on the 2015 Credit Facility. Based on the Company’s current leverage ratio, our borrowings bear interest at LIBOR plus 125 basis points, or the Eurocurrency Spread. The Company is currently borrowing under a one-month interest period of 1.7% per annum, using a one-month interest period Eurocurrency Spread, which will reset periodically. Interest will be payable on a monthly basis while the Company is borrowing under the one-month interest rate period.

We are also required to pay a quarterly commitment fee, on the daily unused portion of the revolving credit facility for each fiscal quarter and fees in connection with the issuance of letters of credit. Unused revolver capacity is currently subject to a commitment fee of 20.0 basis points, given the Company’s current leverage ratio. The 2015 Credit Facility includes $15 million of borrowing capacity available for letters of credit and $40 million for borrowings on same-day notice. As of December 31, 2015, we had issued $2 million of outstanding letters of credit under the 2015 Credit Facility.

During the year ended December 31, 2015, we recorded total interest and commitment fees on our 2015 Credit Facility of $2 million, respectively, to interest expense on our consolidated statements of operations. All unpaid interest and commitment fee amounts as of December 31, 2015 were not material.

In connection with the 2015 Credit Facility, we incurred lender fees and debt financing costs totaling $3 million, which were capitalized as deferred financing costs and recorded to other long-term assets on the consolidated balance sheet. During the year ended December 31, 2015, amortization expense recorded to interest expense on our consolidated statements of operations was not material. These costs will continue to be amortized over the term of the 2015 Credit Facility using the effective interest rate method.

We may voluntarily repay any outstanding borrowing under the 2015 Credit Facility at any time without premium or penalty, other than customary breakage costs with respect to Eurocurrency loans. Certain wholly-owned domestic subsidiaries of the Company have agreed to guarantee the Company’s obligations under the 2015 Credit Facility.

The 2015 Credit Facility contains a number of covenants that, among other things, restrict our ability to: incur additional indebtedness, create liens, enter into sale and leaseback transactions, engage in mergers or consolidations, sell or transfer assets, pay dividends and distributions, make investments, loans or advances, prepay certain subordinated indebtedness, make certain acquisitions, engage in certain transactions with affiliates, amend material agreements governing certain subordinated indebtedness, and change our fiscal year. The 2015 Credit Facility also requires us to maintain a maximum leverage ratio and contains certain customary affirmative covenants and events of default, including a change of control. If an event of default occurs, the lenders under the 2015 Credit Facility will be entitled to take various actions, including the acceleration of all amounts due under 2015 Credit Facility. As of December 31, 2015, we are in compliance with all of our debt covenants.

The full text of the credit agreement entered into in connection with the 2015 Credit Facility is incorporated by reference in this Annual Report on Form 10-K as Exhibit 10.27 of the Company’s Current Report on Form 8-K filed June 30, 2015.

Chinese Credit Facilities

In addition to our borrowings under the 2015 Credit Facility, we maintain our Chinese Credit Facilities. As of December 31, 2015 and 2014, we had short-term borrowings outstanding of $1 million and $38 million, respectively.

Our Chinese subsidiary is entered into a $30 million, one-year revolving credit facility with Bank of America (the “Chinese Credit Facility—BOA”) that is currently subject to review on a periodic basis with no specific expiration period. Our Chinese Credit Facility—BOA currently bears interest at a 100% of the People’s Bank of China’s base rate which was 4.35% as of December 31, 2015. During the year ended December 31, 2015, the Company made a $22 million repayment of our outstanding borrowings on our Chinese Credit Facilities- BOA. As of December 31, 2015, we had $1 million of outstanding borrowings from the Chinese Credit Facility—BOA.

In addition, our Chinese subsidiary is entered into a RMB 125,000,000 (approximately $20 million) one-year revolving credit facility with J.P. Morgan Chase Bank (“Chinese Credit Facility-JPM”). Our Chinese Credit Facility—JPM currently also bears interest at a rate based on 100% of the People’s Bank of China’s base rate, which was 4.35% as of December 31, 2015. During the year ended December 31, 2015, the Company made a $19 million repayment of our outstanding borrowings on our Chinese Credit Facilities- JPM. As of December 31, 2015, there are no outstanding borrowings under our Chinese Credit Facility – JPM.

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 9: INCOME TAXES

The following table presents a summary of our domestic and foreign income before income taxes:

	Year Ended December 31,
	2015		2014		2013
	(in millions)
Domestic	$	67	$	146	$	129
Foreign		172		176		155
Total	$	239	$	322	$	284

The following table presents a summary of the components of our provision for income taxes:

	Year Ended December 31,
	2015			2014			2013
	(in millions)
Current income tax expense:
Federal	$	48		$	93		$	48
State		8			14			9
Foreign		22			6			17
Current income tax expense		78			113			74
Deferred income tax (benefit) expense:
Federal		(29	)		(12	)		6
State		(2	)		(1	)		1
Foreign		(6	)		(4	)		(2	)
Deferred income tax (benefit) expense:		(37	)		(17	)		5
Provision for income taxes	$	41		$	96		$	79

The significant components of our deferred tax assets and deferred tax liabilities as of December 31, 2015 and 2014 are as follows:

	December 31,
	2015			2014
	(in millions)
Deferred tax assets:
Stock-based compensation	$	40		$	43
Net operating loss carryforwards		31			34
Provision for accrued expenses		12			13
Deferred rent		5			5
Lease financing obligation		33			26
Foreign advertising spend		8			9
Deferred expense related to cost-sharing arrangement		20			-
Charitable contribution carryforward		24			-
Other		4			5
Total deferred tax assets	$	177		$	135
Less: valuation allowance		(17	)		(19	)
Net deferred tax assets	$	160		$	116
Deferred tax liabilities:
Intangible assets	$	(81	)	$	(88	)
Property and equipment		(27	)		(25	)
Prepaid expenses		(4	)		(4	)
Building		(31	)		(26	)
Deferred income related to cost-sharing arrangement		(7	)		-
Other		-			(1	)
Total deferred tax liabilities	$	(150	)	$	(144	)
Net deferred tax asset (liability) (1)	$	10		$	(28	)

(1) Includes non-current deferred tax assets of $25 million and $1 million as of December 31, 2015 and 2014, respectively, reported in "Other long-term assets" on our consolidated balance sheets.

At December 31, 2015, we had federal, state and foreign net operating loss carryforwards (“NOLs”) of approximately $16 million, $13 million and $85 million. If not utilized, the federal and state NOLs will expire at various times between 2020 and 2035 and the foreign NOLs will expire at various times between 2016 and 2033.

At December 31, 2015, we had a valuation allowance of $17 million primarily related to foreign net operating loss carryforwards for which it is more likely than not that the tax benefit will not be realized. This amount represented an overall decrease of $2 million over the amount recorded as of December 31, 2014. The decrease is primarily related to the sale of one of our Chinese subsidiaries that previously had a full valuation allowance. Except for certain deferred tax assets, we expect to realize all of our deferred tax assets based on a strong history of earnings in the US and other jurisdictions, as well as future reversals of taxable temporary differences.

We have not provided for deferred U.S. income taxes on undistributed earnings of our foreign subsidiaries that we have or intend to reinvest permanently outside the United States; the total amount of such earnings as of December 31, 2015 was $759 million. Should we distribute or be treated under certain U.S. tax rules as having distributed earnings of foreign subsidiaries in the form of dividends or otherwise, we may be subject to U.S. income taxes. Due to complexities in tax laws and various assumptions that would have to be made, it is not practicable at this time to estimate the amount of unrecognized deferred U.S. taxes on these earnings.

A reconciliation of the provision for income taxes to the amounts computed by applying the statutory federal income tax rate to income before income taxes is as follows:

	Year Ended December 31,
	2015			2014			2013
	(in millions)
Income tax expense at the federal statutory rate of 35%	$	84		$	113		$	100
Foreign rate differential		(53	)		(49	)		(41	)
State income taxes, net of effect of federal tax benefit		4			13			8
Unrecognized tax benefits and related interest		12			14			9
Change in cost-sharing treatment of stock-based compensation		(13	)		-			-
Non-deductible transaction costs		1			1			-
Change in valuation allowance		5			5			2
Other, net		1			(1	)		1
Provision for income taxes	$	41		$	96		$	79

During 2011, the Singapore Economic Development Board accepted our application to receive a tax incentive under the International Headquarters Award. This incentive provides for a reduced tax rate on qualifying income of 5% as compared to Singapore’s statutory tax rate of 17% and is conditional upon our meeting certain employment and investment thresholds. This agreement has been extended until June 30, 2021 as we have met certain employment and investment thresholds. This benefit resulted in a decrease to the 2015 tax provision of $4 million or added an incremental $0.03 to our Diluted EPS for 2015.

By virtue of previously filed consolidated income tax returns filed with Expedia, we are currently under an IRS audit for the 2009 and 2010 tax years, and have various ongoing state income tax audits. We are separately under examination by the IRS for the 2012 and 2013 tax years and have commenced an employment tax audit with the IRS for the 2013 and 2014 tax years. These audits include questioning of the timing and the amount of income and deductions and the allocation of income among various tax jurisdictions. These examinations may lead to proposed or ordinary course adjustments to our taxes. We are no longer subject to tax examinations by tax authorities for years prior to 2007. As of December 31, 2015, no material assessments have resulted.

During the year ended December 31, 2015, we received notification of a draft proposed adjustment from the IRS for the 2009 and 2010 tax years and we anticipate receiving additional notices of proposed adjustments for the same years. These proposed adjustments are related to transfer pricing with our foreign subsidiaries, and would result in an increase to U.S. taxable income and federal tax expense for 2009 and 2010, subject to interest. Our policy is to review and update tax reserves as facts and circumstances change. Based on our interpretation of the regulations and available case law, we believe the position we have taken with regard to transfer pricing with our foreign subsidiaries is sustainable. We intend to defend our position through IRS administrative and, if necessary, by judicial remedies. As of December 31, 2015, no additional adjustments have been proposed.

In July 2015, the United States Tax Court (the “Court”) issued an opinion favorable to Altera Corporation (“Altera”) with respect to Altera’s litigation with the Internal Revenue Service (“IRS”). This opinion was submitted as a final decision under Tax Court (“T.C.”) Rule 155 during December 2015. The litigation relates to the treatment of stock-based compensation expense in an inter-company cost-sharing arrangement with Altera’s foreign subsidiary. In its opinion, the Court accepted Altera’s position of excluding stock based compensation from its inter-company cost-sharing arrangement. The IRS has the right to appeal the Court decision. At this time, the U.S. Department of the Treasury has not withdrawn the requirement from its regulations to include stock-based compensation in intercompany cost-sharing arrangements. The Company has evaluated the impact of the court case and recorded a tax benefit of $13 million in its consolidated statement of operations for the year ended December 31, 2015. The Company will continue to monitor this matter and related potential impacts to its consolidated financial statements.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (excluding interest and penalties) is as follows:

	December 31,
	2015		2014		2013
	(in millions)
Balance, beginning of year	$	67	$	36	$	24
Increases to tax positions related to the current year		15		13		12
Increases to tax positions related to the prior year		7		18		4
Reductions due to lapsed statute of limitations		-		-		-
Decreases to tax positions related to the prior year		-		-		(4	)
Settlements during current year		-		-		-
Balance, end of year	$	89	$	67	$	36

As of December 31, 2015, we had $89 million of unrecognized tax benefits, net of interest, which is classified as long-term and included in other long-term liabilities on our consolidated balance sheet. The amount of unrecognized tax benefits, if recognized, would reduce income tax expense by $53 million, due to correlative adjustments in other tax jurisdictions. We recognize interest and penalties related to unrecognized tax benefits in income tax expense on our consolidated statement of operations. As of December 31, 2015 and 2014, total gross interest accrued was $6 million and $4 million, respectively. We do not anticipate any material changes in the next year.

Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2015

Payables And Accruals [Abstract]

NOTE 10: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following for the periods presented:

	December 31, 2015		December 31, 2014
	(in millions)
Accrued salary, bonus, and related benefits	$	47	$	41
Accrued marketing costs		43		24
Accrued charitable foundation payments (1)		-		8
Other		33		41
Total	$	123	$	114

(1)	See “Note 12— Commitments and Contingencies” for information regarding costs associated with the Foundation.

Other Long-Term Liabilities

12 Months Ended

Dec. 31, 2015

Other Liabilities Noncurrent [Abstract]

Other Long-Term Liabilities

NOTE 11: OTHER LONG-TERM LIABILITIES

Other long-term liabilities consisted of the following for the periods presented:

	December 31, 2015		December 31, 2014
	(in millions)
Unrecognized tax benefits (1)	$	87	$	68
Financing obligation, net of current portion (2)		84		67
Other (3)		18		19
Total	$	189	$	154

(1)	See “Note 9—Income Taxes” for additional information on our unrecognized tax benefits. Amount includes accrued interest related to this liability.

(2)	Refer to “Note 12 – Commitments and Contingencies,” for additional information on our corporate headquarters lease.

(3)	Amounts primarily consist of long term deferred rent balances related to operating leases for office space.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 12: COMMITMENTS AND CONTINGENCIES

We have material commitments and obligations that include office space leases and expected interest on long-term debt, which are not accrued on the consolidated balance sheet at December 31, 2015 but we expect to require future cash outflows.

The following table summarizes our material commitments and obligations as of December 31, 2015:

			By Period
	Total		Less than 1 year		1 to 3 years		3 to 5 years		More than 5 years
	(in millions)
Property leases, net of sublease income (1)	$	250	$	22	$	45	$	44	$	139
Expected interest payments on 2015 Credit Facility (2)		15		3		7		5		—
Total (3)	$	265	$	25	$	52	$	49	$	139

(1)	Estimated future minimum rental payments under operating leases with non-cancelable lease terms, including our corporate headquarters lease in Needham, MA.

(2)

The amounts included as expected interest payments on the 2015 Credit Facility in this table are based on the current effective interest rate and outstanding borrowings as of December 31, 2015, but, could change significantly in the future. Amounts assume that our existing debt is repaid at expiration date and do not assume additional borrowings or refinancings of existing debt. Refer to “Note 8— Debt” for additional information on our 2015 Credit Facility.

(3)

Excluded from the table was $87 million of unrecognized tax benefits, including accrued interest, that we have recorded in other long-term liabilities on our consolidated balance sheet for which we cannot make a reasonably reliable estimate of the amount and period of payment. We do not anticipate any material changes in the next year.

Office Lease Commitments

We have contractual obligations in the form of operating leases for office space for which we record the related expense on a monthly basis. Certain leases contain periodic rent escalation adjustments and renewal options. Rent expense related to such leases is recorded on a straight-line basis. Operating lease obligations expire at various dates with the latest maturity in December 2030. For the years ended December 31, 2015, 2014 and 2013, we recorded rental expense of $19 million, $17 million and $11 million, respectively.

Corporate Headquarters Lease

In June 2013, TripAdvisor LLC (“TA LLC”), our indirect, wholly owned subsidiary, entered into a lease, for a new corporate headquarters (the “Lease”). Pursuant to the Lease, the landlord built an approximately 280,000 square foot rental building in Needham, Massachusetts (the “Premises”), and leased the Premises to TA LLC as our new corporate headquarters for an initial term of 15 years and 7 months or through December 2030. TA LLC also has an option to extend the term of the Lease for two consecutive terms of five years each.

Because we were involved in the construction project and were responsible for paying a portion of the costs of normal finish work and structural elements of the Premises, the Company was deemed for accounting purposes to be the owner of the Premises during the construction period under build to suit lease accounting guidance under GAAP. Therefore, the Company recorded project construction costs during the construction period incurred by the landlord as a construction-in-progress asset and a related construction financing obligation on our consolidated balance sheets. The amounts that the Company has paid or incurred for normal tenant improvements and structural improvements had also been recorded to the construction-in-progress asset.

Upon completion of construction at end of the second quarter of 2015, we evaluated the construction-in-progress asset and construction financing obligation for de-recognition under the criteria for “sale-leaseback” treatment under GAAP. We concluded that we have forms of continued economic involvement in the facility, and therefore did not meet the provisions for sale-leaseback accounting. This determination was based on the Company's continuing involvement with the property in the form of non-recourse financing to the lessor. Therefore, the Lease has been accounted for as a financing obligation. Accordingly, we began depreciating the building asset over its estimated useful life and incurring interest expense related to the financing obligation imputed using the effective interest rate method. We will bifurcate our lease payments pursuant to the Premises into: (i) a portion that is allocated to the building (a reduction to the financing obligation) and; (ii) a portion that is allocated to the land on which the building was constructed. The portion of the lease obligations allocated to the land is treated as an operating lease that commenced in 2013. The financing obligation is considered a long-term finance lease obligation and is recorded to long-term liabilities on our consolidated balance sheet. At the end of the lease term, the carrying value of the building asset and the remaining financing obligation are expected to be equal, at which time we may either surrender the leased asset as settlement of the remaining financing obligation or extend the initial term of the lease for the continued use of the asset. In 2015, the Company recorded $4 million in interest expense, $2 million in depreciation expense and $1 million in rent expense related to the Premises.

Additional United States and International Locations

We also lease an aggregate of approximately 410,000 square feet at approximately 40 other locations across North America, Europe and Asia Pacific, in cities such as, New York, Boston, London, and Beijing, primarily for our sales offices, subsidiary headquarters, and international management teams, pursuant to leases with expiration dates through June 2027.

As of December 31, 2015, future minimum commitments under our corporate headquarters lease and other non-cancelable operating leases for office space with terms of more than one year and contractual sublease income were as follows:

Year	Corporate Headquarters Lease (1)		Other Operating Leases		Sublease Income			Total Lease Commitments (Net of Sublease Income)
	(in millions)
2016	$	9	$	15	$	(2	)	$	22
2017		9		15		(1	)		23
2018		9		14		(1	)		22
2019		9		14		(1	)		22
2020		9		13		—			22
Thereafter		97		42		—			139
Total minimum lease payments	$	142	$	113	$	(5	)	$	250

(1)	Amount includes an $84 million financing obligation, which we have recorded in other long-term liabilities on our consolidated balance sheet at December 31, 2015, related to our corporate headquarters lease.

Charitable Foundation

Excluded from the above table is our obligation to fund the Foundation. Our pledge obligation to the Foundation has been fully satisfied as of December 31, 2015. Our pledge agreement provided for an immediate satisfaction of all future annual contributions, by paying an amount equal to eight multiplied by our prior year contribution to the Foundation, which was calculated as 2% of our annual OIBA (see “Note 16 — Segment and Geographic Information”). We exercised this right under the pledge agreement in December 2015. Consequently, we recorded an expense for the year ended December 31, 2015 in the amount of $67 million for the contribution, which was recorded to general and administrative expense in our consolidated statement of operations. We settled this obligation with treasury shares based on the fair value of our common stock on the date the treasury shares were issued to the Foundation. We do not expect to make any future contributions to the Foundation. The Board of Directors of the Foundation is currently comprised of Stephen Kaufer- President and Chief Executive Officer of the Company, Julie M.B. Bradley- former Chief Financial Officer of the Company and Seth J. Kalvert- Senior Vice President, General Counsel and Secretary of the Company.

Letters of Credit

As of December 31, 2015, we have issued unused letters of credit totaling $2 million, related to our property leases, which includes $1 million delivered to the landlord of our corporate headquarters as security deposit, which amount is subject to increase under certain circumstances.

Off-Balance Sheet Arrangements

We did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K of the SEC, that have, or are reasonably likely to have, a current or future effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources at December 31, 2015.

Legal Proceedings

In the ordinary course of business, we and our subsidiaries are parties to regulatory and legal matters arising out of our operations. These matters may involve claims involving alleged infringement of third-party intellectual property rights (including patent infringement), defamation, taxes, regulatory compliance privacy issues and other claims. Periodically, we review the status of all significant outstanding matters to assess any potential financial exposure. When (i) it is probable that an asset has been impaired or a liability has been incurred and (ii) the amount of the loss can be reasonably estimated, we record the estimated loss in our consolidated financial statements of operations. We provide disclosures in the notes to the consolidated financial statements for loss contingencies that do not meet both of these conditions if there is a reasonable probability that a loss may have been incurred and whether such loss is reasonably estimable. We base accruals made on the best information available at the time which can be highly subjective. Although occasional adverse decisions or settlements may occur, the Company does not believe that the final disposition of any of these matters will have a material adverse effect on the business. However, the final outcome of these matters could vary significantly from our estimates. Finally, there may be claims or actions pending or threatened against us of which we are currently not aware and the ultimate disposition of which could have a material adverse effect on us.

Income Taxes

We are also under audit by the IRS and various other domestic and foreign tax authorities with regards to income tax matters. We have reserved for potential adjustments to our provision for income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities. Although we believe our tax estimates are reasonable, the final determination of audits could be materially different from our historical income tax provisions and accruals. The results of an audit could have a material effect on our financial position, results of operations, or cash flows in the period for which that determination is made.

Additionally, we earn an increasing portion of our income, and accumulate a greater portion of cash flows, in foreign jurisdictions which we consider indefinitely reinvested. Any repatriation of funds currently held in foreign jurisdictions may result in higher effective tax rates and incremental cash tax payments. In addition, there have been proposals to amend U.S. tax laws that would significantly impact the manner in which U.S. companies are taxed on foreign earnings. Although we cannot predict whether or in what form any legislation will pass, if enacted, it could have a material adverse impact on our U.S. tax expense and cash flows. See “Note 9— Income Taxes” above for further information on potential contingencies surrounding income taxes.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2015
Compensation And Retirement Disclosure [Abstract]
Employee Benefit Plans	NOTE 13: EMPLOYEE BENEFIT PLANS Retirement Savings Plan The TripAdvisor Retirement Savings Plan (the “401(k) Plan”), qualifies under Section 401(k) of the Internal Revenue Code. The 401(k) Plan allows participating employees, most of our U.S. employees, to make contributions of a specified percentage of their eligible compensation. Participating employees may contribute up to 50% of their eligible salary on a pre-tax basis, but not more than statutory limits. Employee-participants age 50 and over may also contribute an additional amount of their salary on a pre-tax tax basis up to the IRS Catch-Up Provision Limit, or catch-up contributions. Employees may also contribute into the 401(k) Plan on an after-tax basis up to an annual maximum of 10%. The 401(k) Plan has an automatic enrollment feature at 6% pre-tax. We match 50% of the first 6% of employee contributions to the plan for a maximum employer contribution of 3% of a participant’s eligible earnings. The “catch up contributions”, are not eligible for employer matching contributions. The matching contributions portion of an employee’s account, vests after two years of service. The Plan also permits certain after-tax Roth 401(k) contributions. Additionally, at the end of the 401(k) Plan year, we make a discretionary matching contribution to eligible participants. This additional discretionary matching employer contribution referred to as “true up” is limited to match only contributions up to 3% of eligible compensation. We also have various defined contribution plans for our international employees. Our contribution to the 401(k) Plan and our international defined contribution plans was $7 million, $5 million, and $5 million for the years ended December 31, 2015, 2014 and 2013, respectively, and recorded to our consolidated statements of operations, respectively, for those years. TripAdvisor, Inc. Deferred Compensation Plan for Non-Employee Directors The Company also has a Deferred Compensation Plan for Non-Employee Directors (the “Plan”). Under the Plan, eligible directors who defer their directors’ fees may elect to have such deferred fees (i) applied to the purchase of share units, representing the number of shares of our common stock that could have been purchased on the date such fees would otherwise be payable, or (ii) credited to a cash fund. The cash fund will be credited with interest at an annual rate equal to the weighted average prime or base lending rate of a financial institution selected in accordance with the terms of the Plan and applicable law. Upon termination of service as a director of TripAdvisor, a director will receive (i) with respect to share units, such number of shares of our common stock as the share units represent, and (ii) with respect to the cash fund, a cash payment. Payments upon termination will be made in either one lump sum or up to five annual installments, as elected by the eligible director at the time of the deferral election. Under the 2011 Incentive Plan, 100,000 shares of TripAdvisor common stock are available for issuance to non-employee directors. From the inception of the Plan through December 31, 2015, a total of 557 shares have been reserved for such purpose.

Stockholders' Equity

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity

NOTE 14: STOCKHOLDERS’ EQUITY

Preferred Stock

In addition to common stock, we are authorized to issue up to 100 million preferred shares, with $ 0.001 par value per share, with terms determined by our Board of Directors, without further action by our stockholders. At December 31, 2015, no preferred shares had been issued.

Common Stock and Class B Common Stock

Our authorized common stock consists of 1.6 billion shares of common stock with par value of $0.001 per share, and 400 million shares of Class B common stock with par value of $0.001 per share. Both classes of common stock qualify for and share equally in dividends, if declared by our Board of Directors. Common stock is entitled to one vote per share and Class B common stock is entitled to 10 votes per share on most matters. Holders of TripAdvisor common stock, acting as a single class, are entitled to elect a number of directors equal to 25% percent of the total number of directors, rounded up to the next whole number, which was three directors as of December 31, 2015. Class B common stockholders may, at any time, convert their shares into common stock, on a one for one share basis. Upon conversion, the Class B common stock is retired and is not available for reissue. In the event of liquidation, dissolution, distribution of assets or winding-up of TripAdvisor the holders of both classes of common stock have equal rights to receive all the assets of TripAdvisor after the rights of the holders of the preferred stock have been satisfied. There were 133,836,242 and 132,443,111 shares of common stock issued and outstanding, respectively, at December 31, 2015 and 12,799,999 shares of Class B common stock issued and outstanding at December 31, 2015.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive loss is primarily comprised of accumulated foreign currency translation adjustments, as follows for the periods presented:

	December 31, 2015			December 31, 2014
	(in millions)
Cumulative foreign currency translation adjustments (1)	$	(63	)	$	(31	)
Total accumulated other comprehensive loss	$	(63	)	$	(31	)

(1)	We consider our foreign subsidiary earnings indefinitely reinvested; therefore; deferred taxes are not provided on foreign currency translation adjustments.

Treasury Stock

On February 15, 2013, our Board of Directors authorized the repurchase of $250 million of our shares of common stock under a share repurchase program. The repurchase program has no expiration date but may be suspended or terminated by the Board of Directors at any time. Our Board of Directors will determine the price, timing, amount and method of such repurchases based on its evaluation of market conditions and other factors, and any shares repurchased will be in compliance with applicable legal requirements, at prices determined to be attractive and in the best interests of both the Company and its stockholders.

As of December 31, 2015, we have repurchased 2,120,709 shares of outstanding common stock under the share repurchase program at an aggregate cost of $145 million. We did not repurchase any shares under this share repurchase program during the year ended December 31, 2015. As of December 31, 2015, from the authorized share repurchase program granted by the Board of Directors we have $105 million remaining to repurchase shares of our common stock.

In December 2015, we issued 801,042 treasury shares to the Foundation in settlement of all future pledge obligations. Refer to “Note 12 – Commitments and Contingencies,” for a discussion of the Foundation. We have 1,393,131 treasury shares remaining as of December 31, 2015 with an aggregate cost of $92 million.

Dividends

During the years ended December 31, 2015, 2014 and 2013, our Board of Directors did not declare any dividends on our outstanding common stock and do not expect to pay any dividends for the foreseeable future.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 15: RELATED PARTY TRANSACTIONS Relationship between Expedia and TripAdvisor Upon consummation of the Spin-Off, Expedia was considered a related party under GAAP based on a number of factors, including, among others, common ownership of our shares and those of Expedia. However, we no longer consider Expedia a related party. For purposes of governing certain of the ongoing relationships between us and Expedia at and after the Spin-Off, and to provide for an orderly transition, we and Expedia entered into various agreements at the time of the Spin-Off, which TripAdvisor has satisfied its obligations. However, TripAdvisor continues to be subject to certain post-spin obligations under the Tax Sharing Agreement. Under the Tax Sharing Agreement between us and Expedia, we are generally required to indemnify Expedia for any taxes resulting from the Spin-Off (and any related interest, penalties, legal and professional fees, and all costs and damages associated with related stockholder litigation or controversies) to the extent such amounts resulted from (i) any act or failure to act by us described in the covenants in the tax sharing agreement, (ii) any acquisition of our equity securities or assets or those of a member of our group, or (iii) any failure of the representations with respect to us or any member of our group to be true or any breach by us or any member of our group of any covenant, in each case, which is contained in the separation documents or in the documents relating to the IRS private letter ruling and/or the opinion of counsel. The full text of the Tax Sharing Agreement is incorporated by reference in this Annual Report on Form 10-K as Exhibit 10.2. Refer to “Note 9— Income Taxes” above for information regarding the status of completed and ongoing IRS audits of our consolidated income tax returns with Expedia to date. Relationship between Liberty TripAdvisor Holdings, Inc. and TripAdvisor We consider Liberty TripAdvisor Holdings, Inc. (“LTRIP”) a related party. As of December 31, 2015, LTRIP beneficially owned 18,159,752 shares of our common stock and 12,799,999 shares of our Class B common stock, which shares constituted 13.7% of the outstanding shares of Common Stock and 100% of the outstanding shares of Class B Common Stock. Assuming the conversion of all of LTRIP’s shares of Class B common stock into common stock, LTRIP would beneficially own 21.3% of the outstanding common stock. Because each share of Class B common stock is generally entitled to ten votes per share and each share of common stock is entitled to one vote per share, LTRIP may be deemed to beneficially own equity securities representing approximately 56.1% of our voting power. Refer to “Note 1— Organization and Business Description” above, which describes the evolution of our relationship with LTRIP. We had no related party transactions with LTRIP during the years ended December 31, 2015, 2014 or 2013.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Segment and Geographic Information

Segment and Geographic Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

NOTE 16: SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

Our reporting structure includes two reportable segments: Hotel and Other.

Hotel

Our Hotel segment includes revenue generated from services related to hotels, including click-based and display-based advertising revenue from making hotel room night reservations available for price comparison and booking, including our instant booking feature, as well as subscription-based hotel products such as Business Listings, transaction-based hotel products such as Jetsetter and Tingo, and other revenue related to hotels. Our Hotel segment also includes advertising revenue from making airline reservations and cruise reservations available for price comparison and booking. Our CODM is also the Hotel segment manager.

Other

Attractions. We provide, primarily through Viator, information and services for researching and booking destination activities around the world. Viator works with local operators to provide travelers with access to tours and activities in popular destinations worldwide, earning a commission for such service. In addition to its consumer-direct business, Viator also provides local experiences to affiliate partners, including some of the world’s top airlines, hotels and travel agencies.

Restaurants. We have several websites that provide online and mobile reservation services that connect restaurants with diners. These websites are primarily focused currently on the European and Australian markets, primarily through Lafourchette or thefork.com (including www.lafourchette.com, www.eltenedor.com, www.iens.nl, www.besttables.com, and www.dimmi.com.au). thefork.com is an online restaurant booking platform with a network of restaurant partners primarily across Europe and Australia. Lafourchette also offers management software solutions helping restaurants to maximize business by providing a flexible online booking, discount and data tool. We generate revenue primarily by charging a fee for each restaurant guest seated through the online reservation systems.

Vacation Rentals. We offer individual property owners and property managers the ability to list their properties available for rental and connect with travelers using a subscription-based fee structure or a free-to-list, commission per booking based option. Our vacation rental inventory currently includes full home rentals, condos, villas, beach rentals, cabins, cottages, and many other accommodation types. These properties are listed across a number of platforms, including TripAdvisor Vacation Rentals, U.S.-based FlipKey and Vacation Home Rentals, and European-based Holiday Lettings and Niumba businesses.

Each operating segment in our Other segment has a segment manager who is directly accountable to and maintains regular contact with our chief operating decision maker to discuss operating activities, financial results, forecasts, and plans for the segment.

Our primary operating metric for evaluating segment performance is Adjusted EBITDA, which is a non-GAAP financial measure. 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 amortization of internal use software and website development; (4) amortization of intangible assets; (5) stock-based compensation and other stock-settled obligations; (6) goodwill, long-lived asset and intangible asset impairments; and (7) other non-recurring expenses.. Such amounts are detailed in our segment reconciliation below. In addition, please see our discussion of Adjusted EBITDA in the section of this Annual Report on Form 10-K entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

The following tables present our segment information for the years ended December 31, 2015, 2014 and 2013. We record depreciation of property and equipment, including amortization of internal-use software and website development, amortization of intangible assets, stock-based compensation and other stock-settled obligations, other income (expense), net, other non-recurring expenses, net, and income taxes, which are excluded from segment operating performance, in Corporate and unallocated. In addition, we do not report our assets or capital expenditures by segment as it would not be meaningful. We also do not regularly provide asset, capital expenditure or depreciation information by segment to our CODM. Our consolidated general and administrative expenses, excluding stock-based compensation costs, are shared by all operating segments. Each operating segment receives an allocated charge based on the segment’s percentage of the Company’s total personnel costs.

	Year ended December 31, 2015
	Hotel		Other			Corporate and unallocated			Total
	(in millions)
Revenue	$	1,263	$	229		$	—		$	1,492
Adjusted EBITDA (1)		472		(6	)		—			466
Depreciation		—		—			(57	)		(57	)
Amortization of intangible assets		—		—			(36	)		(36	)
Stock-based compensation		—		—			(72	)		(72	)
Non-cash charitable contribution (2)		—		—			(67	)		(67	)
Other non-recurring expenses		—		—			(2	)		(2	)
Operating income (loss)	$	472	$	(6	)	$	(234	)		232
Other income, net										7
Income before income taxes										239
Provision for income taxes										(41	)
Net income									$	198

	Year ended December 31, 2014
	Hotel		Other			Corporate and unallocated			Total
	(in millions)
Revenue	$	1,135	$	111		$	—		$	1,246
Adjusted EBITDA (1)(3)		472		(4	)		—			468
Depreciation		—		—			(47	)		(47	)
Amortization of intangible assets		—		—			(18	)		(18	)
Stock-based compensation		—		—			(63	)		(63	)
Operating income (loss)	$	472	$	(4	)	$	(128	)		340
Other expense, net										(18	)
Income before income taxes										322
Provision for income taxes										(96	)
Net income									$	226

	Year ended December 31, 2013
	Hotel		Other			Corporate and unallocated			Total
	(in millions)
Revenue	$	899	$	46		$	—		$	945
Adjusted EBITDA (1)(3)		384		(5	)		—			379
Depreciation		—		—			(30	)		(30	)
Amortization of intangible assets		—		—			(6	)		(6	)
Stock-based compensation		—		—			(49	)		(49	)
Operating income (loss)	$	384	$	(5	)	$	(85	)		294
Other expense, net										(10	)
Income before income taxes										284
Provision for income taxes										(79	)
Net income									$	205

(1)

Includes allocated general and administrative expenses in our Hotel segment of $85 million, $87 million and $72 million; and in our Other segment of $28 million, $18 million and $9 million for the years ended December 31, 2015, 2014 and 2013, respectively.

(2)

Represents a charitable obligation which was settled in Company stock and therefore excluded from Adjusted EBITDA. Refer to “Note 12 – Commitments and Contingencies” for a discussion of the Foundation.

(3)

Hotel segment Adjusted EBITDA includes charitable contributions to the Foundation which were funded in cash of $8 million and $7 million, for the years ended December 31, 2014 and 2013, respectively. Our pledge obligation was calculated at 2.0% of OIBA in 2014 and 2013, which was calculated as follows:

	Year ended December 31,
	2014			2013
	(in millions)
Adjusted EBITDA	$	468		$	379
Depreciation		(47	)		(30	)
OIBA (1)		421			349
Amortization of intangible assets		(18	)		(6	)
Stock-based compensation		(63	)		(49	)
Other expense, net		(18	)		(10	)
Provision for income taxes		(96	)		(79	)
Net income	$	226		$	205

(1)

We defined OIBA as net income (loss) plus: (1) provision for income taxes; (2) other income (expense), net; (3) stock-based compensation; (4) amortization of intangible assets; and (5) non-recurring expenses. This operating metric was only used by our management to calculate our annual obligation to the Foundation.

Revenue and Geographic Information

We derive the substantial portion of our revenue through the sale of advertising, primarily through click-based advertising and, to a lesser extent, display-based advertising. In addition, we earn revenue from a combination of: subscription-based and transaction-based offerings from our Business Listings products; subscription and commission-based offerings from our Vacation Rentals products; room reservations sold through our Jetsetter and Tingo brands; destination activities sold primarily through Viator; and online restaurant reservations booked primarily through Lafourchette, or thefork.com. We also derive revenue from content licensing.

The following table presents revenue by product for the periods presented:

	Year ended December 31,
	2015		2014		2013
	(in millions)
Click-based advertising	$	956	$	870	$	696
Display-based advertising		159		140		119
Subscription, transaction and other		377		236		130
Total revenue	$	1,492	$	1,246	$	945

The following table presents revenue by geographic area, the United States, the United Kingdom and all other countries, based on the geographic location of our websites for the periods presented:

	Year ended December 31,
	2015		2014		2013
	(in millions)
Revenue
United States	$	739	$	593	$	463
United Kingdom		215		191		141
All other countries		538		462		341
Total revenue	$	1,492	$	1,246	$	945

The following table presents property and equipment, net for the United States and all other countries based on the geographic location of the assets for the periods presented:

	December 31,
	2015		2014
	(in millions)
Property and equipment, net
United States	$	217	$	170
All other countries		30		25
Total	$	247	$	195

Other Income And Expenses [Abstract]

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Interest Income and Other, Net

12 Months Ended

Dec. 31, 2015

Interest Income and Other, Net

NOTE 17: INTEREST INCOME AND OTHER, NET

The following table presents the detail of interest income and other, net, for the periods presented:

	Year Ended December 31,
	2015			2014			2013
	(in millions)
Net loss, realized and unrealized, on foreign exchange and foreign currency derivative contracts and other, net	$	(4	)	$	(10	)	$	(2	)
Interest income		1			1			2
Gain on sale of business (1)		20			-			-
Total	$	17		$	(9	)	$	-


(1)	See “Note 3 – Acquisitions and Dispositions” for information regarding our gain on sale of business.

Quarterly Financial Information

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

NOTE 18: QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following table presents selected unaudited financial information for the eight quarters in the period ended December 31, 2015. The results for any quarter are not necessarily indicative of future quarterly results and, accordingly, period to period comparisons should not be relied upon as an indication of future performance.

	Three Months Ended
	March 31		June 30		September 30		December 31
	(in millions, except per share data)
Year ended December 31, 2015
Revenue	$	363	$	405	$	415	$	309
Operating income (loss) (1)		90		79		88		(25	)
Net income		63		58		74		3
Basic earnings per share (2)	$	0.44	$	0.40	$	0.51	$	0.02
Diluted earnings per share (2)	$	0.43	$	0.40	$	0.51	$	0.02
Year ended December 31, 2014
Revenue	$	281	$	323	$	354	$	288
Operating income		96		100		84		60
Net income		68		68		54		36
Basic earnings per share (2)	$	0.48	$	0.48	$	0.38	$	0.25
Diluted earnings per share (2)	$	0.47	$	0.47	$	0.37	$	0.25


(1)	During the fourth quarter of 2015, we recognized an incremental $59 million charge over the third quarter of 2015, related to a non-cash charitable contribution recorded to general and administrative expense on our consolidated statement of operations. Refer to “Note 12 – Commitments and Contingencies” for a discussion of the Foundation.
(2)	Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share may not equal the total computed for the year.

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

Selling and Marketing

Technology and Content

General and Administrative

Cash, Cash Equivalents and Marketable Securities

Cash consists of cash deposits held in global financial institutions.

Fair Value Measurements

Level 1—Valuations are based on quoted prices for identical assets and liabilities in active markets.

Derivative Financial Instruments

We have not entered into any cash flow, fair value or net investment hedges to date as of December 31, 2015.

Accounts Receivable and Allowance for Doubtful Accounts

The following table presents the changes in the allowance for doubtful accounts for the periods presented:

	December 31,
	2015			2014		2013
	(in millions)
Allowance for doubtful accounts:
Balance, beginning of period	$	7		$	3	$	3
Charges (recoveries) to earnings		3			3		1
Write-offs, net of recoveries and other adjustments		(4	)		1		(1	)
Balance, end of period	$	6		$	7	$	3

Property and Equipment, Including Website and Software Development Costs

Leases

Business Combination Valuations and Recoverability of Goodwill and Indefinite-Lived Intangible Assets

Goodwill

Indefinite-Lived Intangible Assets

Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets

Income Taxes

Foreign Currency Translation and Transaction Gains and Losses

Advertising Expense

Stock-Based Compensation

Treasury Stock

Deferred Merchant Payables

Credit Risk and Concentrations

Contingent Liabilities

Comprehensive Income (Loss)

Comprehensive income (loss) currently consists of net income, cumulative foreign currency translation adjustments, and unrealized gains and losses on available-for-sale securities, net of tax.

Earnings Per Share (“EPS”)

Basic Earnings Per Share

Diluted Earnings Per Share

	Year ended December 31,
	2015		2014		2013
Numerator:
Net income	$	198	$	226	$	205
Denominator:
Weighted average shares used to compute Basic EPS		143,836		142,721		142,854
Weighted average effect of dilutive securities:
Stock options		1,839		2,734		2,131
RSUs		292		345		278
Weighted average shares used to compute Diluted EPS		145,967		145,800		145,263
Basic EPS	$	1.38	$	1.58	$	1.44
Diluted EPS	$	1.36	$	1.55	$	1.41

The following potential common shares related to stock options and RSUs were excluded from the calculation of Diluted EPS because their effect would have been anti-dilutive for the periods presented:

	Year ended December 31,
	2015(1)		2014(2)		2013(3)
Stock options		2,142		1,450		2,244
RSUs		562		191		27
Total		2,704		1,641		2,271

(1)

(2)

(3)

New Accounting Pronouncements Not Yet Adopted

Recently Adopted Accounting Pronouncements

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Changes in the Allowance for Doubtful Accounts

The following table presents the changes in the allowance for doubtful accounts for the periods presented:

	December 31,
	2015			2014		2013
	(in millions)
Allowance for doubtful accounts:
Balance, beginning of period	$	7		$	3	$	3
Charges (recoveries) to earnings		3			3		1
Write-offs, net of recoveries and other adjustments		(4	)		1		(1	)
Balance, end of period	$	6		$	7	$	3

Reconciliation of Weighted Average Number of Shares of Common Stock Outstanding

	Year ended December 31,
	2015		2014		2013
Numerator:
Net income	$	198	$	226	$	205
Denominator:
Weighted average shares used to compute Basic EPS		143,836		142,721		142,854
Weighted average effect of dilutive securities:
Stock options		1,839		2,734		2,131
RSUs		292		345		278
Weighted average shares used to compute Diluted EPS		145,967		145,800		145,263
Basic EPS	$	1.38	$	1.58	$	1.44
Diluted EPS	$	1.36	$	1.55	$	1.41

Common Shares Related to Stock Options and RSUs Excluded from Calculated Diluted EPS

The following potential common shares related to stock options and RSUs were excluded from the calculation of Diluted EPS because their effect would have been anti-dilutive for the periods presented:

	Year ended December 31,
	2015(1)		2014(2)		2013(3)
Stock options		2,142		1,450		2,244
RSUs		562		191		27
Total		2,704		1,641		2,271

(1)

(2)

(3)

Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2015

Summary of Purchase Price Allocation Initially Recorded on Consolidated Balance Sheet for All Acquisitions

The following table presents the purchase price allocations recorded on our consolidated balance sheet for all 2015 acquisitions (in millions):

	Total
Goodwill	$	17
Intangible assets (1)		12
Net tangible assets		1
Deferred tax liabilities, net		(2	)
Total purchase price consideration (2)	$	28

(1)

(2)

Subject to adjustment based on indemnification obligations for general representations and warranties of the acquired company stockholders.

2014 Acquisitions

Summary of Purchase Price Allocation Initially Recorded on Consolidated Balance Sheet for All Acquisitions

The following table presents the purchase price allocations recorded on our consolidated balance sheet for all 2014 acquisitions (in millions):

	Total
Goodwill (1)	$	253
Intangible assets (2)		194
Net tangible assets (liabilities) (3)		(7	)
Deferred tax liabilities, net		(40	)
Total purchase price consideration (4)	$	400

(1)	Goodwill in the amount of $5 million is expected to be deductible for tax purposes.

(2)

(3)

(4)	Subject to adjustment based on indemnification obligations for general representations and warranties of the acquired company stockholders.

Stock Based Awards and Other Equity Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Amount of Stock-Based Compensation Related to Stock-Based Awards, Primarily Stock Options and RSUs

	Year ended December 31,
	2015			2014			2013
	(in millions)
Selling and marketing	$	16		$	13		$	11
Technology and content		28			27			21
General and administrative		28			23			17
Total stock-based compensation expense		72			63			49
Income tax benefit from stock-based compensation expense		(26	)		(24	)		(18	)
Total stock-based compensation expense, net of tax effect	$	46		$	39		$	31

Summary of Stock Option

A summary of our stock option activity is presented below:

				Weighted		Weighted
				Average		Average
				Exercise		Remaining		Aggregate
	Options			Price Per		Contractual		Intrinsic
	Outstanding			Share		Life		Value
	(in thousands)					(in years)		(in millions)
Options outstanding at December 31, 2014		8,651		$	44.47
Granted		587			83.78
Exercised (1)		(3,187	)		33.78
Cancelled or expired		(331	)		57.44
Options outstanding at December 31, 2015		5,720		$	53.71		5.6	$	187
Exercisable as of December 31, 2015		2,480		$	36.69		4.3	$	122
Vested and expected to vest after December 31, 2015		5,610		$	53.30		5.6	$	186

(1)

Weighted-Average Assumptions of Estimated Fair Value of Stock Option Grants

The fair value of stock option grants has been estimated at the date of grant using the Black–Scholes option pricing model with the following weighted average assumptions for the periods presented:

	December 31,
	2015			2014			2013
Risk free interest rate		1.58	%		1.79	%		1.41	%
Expected term (in years)		5.42			5.80			6.06
Expected volatility		41.79	%		44.04	%		50.78	%
Expected dividend yield	— %			— %			— %

Summary of RSU Activity

The following table presents a summary of our RSU activity:

				Weighted
				Average
				Grant-		Aggregate
	RSUs			Date Fair		Intrinsic
	Outstanding			Value Per Share		Value
	(in thousands)					(in millions)
Unvested RSUs outstanding as of December 31, 2014		1,448		$	71.33
Granted		1,017			82.95
Vested and released (1)		(440	)		66.58
Cancelled		(275	)		72.76
Unvested RSUs outstanding as of December 31, 2015		1,750		$	79.02	$	149
Expected to vest after December 31, 2015		1,556		$	78.77	$	133

(1)

Summary of Unrecognized Compensation Expense, Net of Estimated Forfeitures and Weighted Average Period Remaining

	Stock
	Options		RSUs
Unrecognized compensation expense (net of forfeitures)	$	56	$	94
Weighted average period remaining (in years)		2.5		2.7

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Investments All Other Investments [Abstract]

Schedule of Cash, Cash Equivalents and Marketable Securities

	December 31, 2015
									Cash and		Short-Term		Long-Term
	Amortized		Unrealized		Unrealized		Fair		Cash		Marketable		Marketable
	Cost		Gains		Losses		Value		Equivalents		Securities		Securities
Cash	$	598	$	—	$	—	$	598	$	598	$	—	$	—
Level 1:
Money market funds		11		—		—		11		11		—		—
Level 2:
U.S. agency securities		13		—		—		13		—		9		4
U.S. treasury securities		16		—		—		16		4		12		—
Certificates of deposit		5		—		—		5		—		4		1
Commercial paper		1		—		—		1		—		1		—
Corporate debt securities		54		—		—		54		1		21		32
Subtotal		89		—		—		89		5		47		37
Total	$	698	$	—	$	—	$	698	$	614	$	47	$	37

	December 31, 2014
									Cash and		Short-Term		Long-Term
	Amortized		Unrealized		Unrealized		Fair		Cash		Marketable		Marketable
	Cost		Gains		Losses		Value		Equivalents		Securities		Securities
Cash	$	447	$	—	$	—	$	447	$	447	$	—	$	—
Level 1:
Money market funds		8		—		—		8		8		—		—
Level 2:
U.S. agency securities		38		—		—		38		—		35		3
Certificates of deposit		8		—		—		8		—		8		—
Commercial paper		1		—		—		1		—		1		—
Corporate debt securities		92		—		—		92		—		64		28
Subtotal		139		—		—		139		—		108		31
Total	$	594	$	—	$	—	$	594	$	455	$	108	$	31

Fair Value and Notional Principal Amounts of Outstanding or Unsettled Derivative Instruments

The following table shows the notional principal amounts of our outstanding derivative instruments that are not designated as hedging instruments for the periods presented:

December 31,

2015

December 31,

2014

(in millions)

Foreign exchange-forward contracts (1)(2)

(1)	Derivative contracts address foreign exchange fluctuations for the Euro versus the U.S. Dollar.

(2)

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2015

Property Plant And Equipment [Abstract]

Property and Equipment, Net

Property and equipment consists of the following for the periods presented:

	December 31, 2015			December 31, 2014
	(in millions)
Capitalized software and website development	$	127		$	104
Building (1)		123			-
Leasehold improvements		32			40
Computer equipment		36			31
Furniture, office equipment and other		17			11
		335			186
Less: accumulated depreciation		(88	)		(77	)
Construction in progress (1)		-			86
Total	$	247		$	195

(1)

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Changes in Goodwill

The following table summarizes our goodwill activity by segment for the periods presented:

	TripAdvisor			Hotel			Other			Consolidated
	(in millions)
Balance as of December 31, 2013	$	502		$	-		$	-		$	502
Acquisitions (1)		253			-			-			253
Other adjustments (2)		(21	)		-			-			(21	)
Allocation to new segments (3)		(734	)		442			292			-
Balance as of December 31, 2014	$	-		$	442		$	292		$	734
Acquisitions (1)		-			1			16			17
Disposition		-			(1	)		-			(1	)
Other adjustments (2)		-			-			(18	)		(18	)
Ending balance as of December 31, 2015	$	-		$	442		$	290		$	732

(1)	The additions to goodwill relate to our business acquisitions. See “Note 3— Acquisitions and Dispositions,” for further information.

(2)	Primarily related to impact of changes in foreign exchange rates to goodwill.

(3)	Reflects initial allocation of goodwill related to our reporting segment changes in the fourth quarter of 2014. See “Note 16—Segment and Geographic Information” for information on our segments.

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

Intangible assets, which were acquired in business combinations and recorded at fair value on the date of purchase, consist of the following for the periods presented:

	December 31,
		2015			2014
	(in millions)
Intangible assets with definite lives	$	198		$	202
Less: accumulated amortization		(52	)		(18	)
Intangible assets with definite lives, net		146			184
Intangible assets with indefinite lives		30			30
Total	$	176		$	214

Components of Intangible Assets with Definite Lives

The following table presents the components of our intangible assets with definite lives for the periods presented:

			December 31, 2015							December 31, 2014
	Weighted Average		Gross					Net		Gross					Net
	Remaining Life		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	(in years)		Amount		Amortization			Amount		Amount		Amortization			Amount
			(in millions)							(in millions)
Trade names and trademarks		8.5	$	53	$	(9	)	$	44	$	52	$	(5	)	$	47
Customer lists and supplier relationships		5.4		82		(20	)		62		77		(5	)		72
Subscriber relationships		4.8		29		(9	)		20		31		(4	)		27
Technology and other		3.3		34		(14	)		20		42		(4	)		38
Total		6.0	$	198	$	(52	)	$	146	$	202	$	(18	)	$	184

Summary of Estimated Future Amortization Expense Related to Intangible Assets with Definite Lives

2016	$	29
2017		28
2018		25
2019		22
2020		17
2021 and thereafter		25
Total	$	146

Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt

The Company’s outstanding debt consisted of the following for the periods presented:

	December 31,		December 31,
	2015		2014
	(in millions)
Short-Term Debt:
Chinese Credit Facilities	$	1	$	38
Term Loan		-		40
Total Short-Term Debt	$	1	$	78

Long-Term Debt:
2015 Credit Facility	$	200	$	-
Term Loan		-		260
Less: Unamortized discount and debt issuance costs		-		(1	)
Total Long-Term Debt	$	200	$	259

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Summary of Our Domestic and Foreign Income Before Income Taxes

The following table presents a summary of our domestic and foreign income before income taxes:

	Year Ended December 31,
	2015		2014		2013
	(in millions)
Domestic	$	67	$	146	$	129
Foreign		172		176		155
Total	$	239	$	322	$	284

Summary of the Components of Our Provision for Income Taxes

The following table presents a summary of the components of our provision for income taxes:

	Year Ended December 31,
	2015			2014			2013
	(in millions)
Current income tax expense:
Federal	$	48		$	93		$	48
State		8			14			9
Foreign		22			6			17
Current income tax expense		78			113			74
Deferred income tax (benefit) expense:
Federal		(29	)		(12	)		6
State		(2	)		(1	)		1
Foreign		(6	)		(4	)		(2	)
Deferred income tax (benefit) expense:		(37	)		(17	)		5
Provision for income taxes	$	41		$	96		$	79

Summary of Deferred Tax Assets and Deferred Tax Liabilities

The significant components of our deferred tax assets and deferred tax liabilities as of December 31, 2015 and 2014 are as follows:

	December 31,
	2015			2014
	(in millions)
Deferred tax assets:
Stock-based compensation	$	40		$	43
Net operating loss carryforwards		31			34
Provision for accrued expenses		12			13
Deferred rent		5			5
Lease financing obligation		33			26
Foreign advertising spend		8			9
Deferred expense related to cost-sharing arrangement		20			-
Charitable contribution carryforward		24			-
Other		4			5
Total deferred tax assets	$	177		$	135
Less: valuation allowance		(17	)		(19	)
Net deferred tax assets	$	160		$	116
Deferred tax liabilities:
Intangible assets	$	(81	)	$	(88	)
Property and equipment		(27	)		(25	)
Prepaid expenses		(4	)		(4	)
Building		(31	)		(26	)
Deferred income related to cost-sharing arrangement		(7	)		-
Other		-			(1	)
Total deferred tax liabilities	$	(150	)	$	(144	)
Net deferred tax asset (liability) (1)	$	10		$	(28	)

(1) Includes non-current deferred tax assets of $25 million and $1 million as of December 31, 2015 and 2014, respectively, reported in "Other long-term assets" on our consolidated balance sheets.

Reconciliation of the Provision for Income Taxes

A reconciliation of the provision for income taxes to the amounts computed by applying the statutory federal income tax rate to income before income taxes is as follows:

	Year Ended December 31,
	2015			2014			2013
	(in millions)
Income tax expense at the federal statutory rate of 35%	$	84		$	113		$	100
Foreign rate differential		(53	)		(49	)		(41	)
State income taxes, net of effect of federal tax benefit		4			13			8
Unrecognized tax benefits and related interest		12			14			9
Change in cost-sharing treatment of stock-based compensation		(13	)		-			-
Non-deductible transaction costs		1			1			-
Change in valuation allowance		5			5			2
Other, net		1			(1	)		1
Provision for income taxes	$	41		$	96		$	79

Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (excluding interest and penalties) is as follows:

	December 31,
	2015		2014		2013
	(in millions)
Balance, beginning of year	$	67	$	36	$	24
Increases to tax positions related to the current year		15		13		12
Increases to tax positions related to the prior year		7		18		4
Reductions due to lapsed statute of limitations		-		-		-
Decreases to tax positions related to the prior year		-		-		(4	)
Settlements during current year		-		-		-
Balance, end of year	$	89	$	67	$	36

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Payables And Accruals [Abstract]

Details of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following for the periods presented:

	December 31, 2015		December 31, 2014
	(in millions)
Accrued salary, bonus, and related benefits	$	47	$	41
Accrued marketing costs		43		24
Accrued charitable foundation payments (1)		-		8
Other		33		41
Total	$	123	$	114

(1)	See “Note 12— Commitments and Contingencies” for information regarding costs associated with the Foundation.

Other Long-Term Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Other Liabilities Noncurrent [Abstract]

Schedule of Other Long-Term Liabilities

Other long-term liabilities consisted of the following for the periods presented:

	December 31, 2015		December 31, 2014
	(in millions)
Unrecognized tax benefits (1)	$	87	$	68
Financing obligation, net of current portion (2)		84		67
Other (3)		18		19
Total	$	189	$	154

(1)	See “Note 9—Income Taxes” for additional information on our unrecognized tax benefits. Amount includes accrued interest related to this liability.

(2)	Refer to “Note 12 – Commitments and Contingencies,” for additional information on our corporate headquarters lease.

(3)	Amounts primarily consist of long term deferred rent balances related to operating leases for office space.

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Material Commitments and Obligations

The following table summarizes our material commitments and obligations as of December 31, 2015:

			By Period
	Total		Less than 1 year		1 to 3 years		3 to 5 years		More than 5 years
	(in millions)
Property leases, net of sublease income (1)	$	250	$	22	$	45	$	44	$	139
Expected interest payments on 2015 Credit Facility (2)		15		3		7		5		—
Total (3)	$	265	$	25	$	52	$	49	$	139

(1)	Estimated future minimum rental payments under operating leases with non-cancelable lease terms, including our corporate headquarters lease in Needham, MA.

(2)

(3)

Future Minimum Commitments Under Our Corporate Headquarters Lease and Other Non-Cancelable Operating Leases

Year	Corporate Headquarters Lease (1)		Other Operating Leases		Sublease Income			Total Lease Commitments (Net of Sublease Income)
	(in millions)
2016	$	9	$	15	$	(2	)	$	22
2017		9		15		(1	)		23
2018		9		14		(1	)		22
2019		9		14		(1	)		22
2020		9		13		—			22
Thereafter		97		42		—			139
Total minimum lease payments	$	142	$	113	$	(5	)	$	250

(1)	Amount includes an $84 million financing obligation, which we have recorded in other long-term liabilities on our consolidated balance sheet at December 31, 2015, related to our corporate headquarters lease.

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Accumulated Other Comprehensive Loss Primarily Comprised of Accumulated Foreign Currency Translation Adjustments

Accumulated other comprehensive loss is primarily comprised of accumulated foreign currency translation adjustments, as follows for the periods presented:

	December 31, 2015			December 31, 2014
	(in millions)
Cumulative foreign currency translation adjustments (1)	$	(63	)	$	(31	)
Total accumulated other comprehensive loss	$	(63	)	$	(31	)

(1)	We consider our foreign subsidiary earnings indefinitely reinvested; therefore; deferred taxes are not provided on foreign currency translation adjustments.

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Summary of Segment Information

The following tables present our segment information for the years ended December 31, 2015, 2014 and 2013.

	Year ended December 31, 2015
	Hotel		Other			Corporate and unallocated			Total
	(in millions)
Revenue	$	1,263	$	229		$	—		$	1,492
Adjusted EBITDA (1)		472		(6	)		—			466
Depreciation		—		—			(57	)		(57	)
Amortization of intangible assets		—		—			(36	)		(36	)
Stock-based compensation		—		—			(72	)		(72	)
Non-cash charitable contribution (2)		—		—			(67	)		(67	)
Other non-recurring expenses		—		—			(2	)		(2	)
Operating income (loss)	$	472	$	(6	)	$	(234	)		232
Other income, net										7
Income before income taxes										239
Provision for income taxes										(41	)
Net income									$	198

	Year ended December 31, 2014
	Hotel		Other			Corporate and unallocated			Total
	(in millions)
Revenue	$	1,135	$	111		$	—		$	1,246
Adjusted EBITDA (1)(3)		472		(4	)		—			468
Depreciation		—		—			(47	)		(47	)
Amortization of intangible assets		—		—			(18	)		(18	)
Stock-based compensation		—		—			(63	)		(63	)
Operating income (loss)	$	472	$	(4	)	$	(128	)		340
Other expense, net										(18	)
Income before income taxes										322
Provision for income taxes										(96	)
Net income									$	226

	Year ended December 31, 2013
	Hotel		Other			Corporate and unallocated			Total
	(in millions)
Revenue	$	899	$	46		$	—		$	945
Adjusted EBITDA (1)(3)		384		(5	)		—			379
Depreciation		—		—			(30	)		(30	)
Amortization of intangible assets		—		—			(6	)		(6	)
Stock-based compensation		—		—			(49	)		(49	)
Operating income (loss)	$	384	$	(5	)	$	(85	)		294
Other expense, net										(10	)
Income before income taxes										284
Provision for income taxes										(79	)
Net income									$	205

(1)

(2)

(3)

Reconciliation of Adjusted EBITDA to Net Income

	Year ended December 31,
	2014			2013
	(in millions)
Adjusted EBITDA	$	468		$	379
Depreciation		(47	)		(30	)
OIBA (1)		421			349
Amortization of intangible assets		(18	)		(6	)
Stock-based compensation		(63	)		(49	)
Other expense, net		(18	)		(10	)
Provision for income taxes		(96	)		(79	)
Net income	$	226		$	205

(1)

Summary of Total Revenue by Product

The following table presents revenue by product for the periods presented:

	Year ended December 31,
	2015		2014		2013
	(in millions)
Click-based advertising	$	956	$	870	$	696
Display-based advertising		159		140		119
Subscription, transaction and other		377		236		130
Total revenue	$	1,492	$	1,246	$	945

Summary of Revenue by Geographic Area

The following table presents revenue by geographic area, the United States, the United Kingdom and all other countries, based on the geographic location of our websites for the periods presented:

	Year ended December 31,
	2015		2014		2013
	(in millions)
Revenue
United States	$	739	$	593	$	463
United Kingdom		215		191		141
All other countries		538		462		341
Total revenue	$	1,492	$	1,246	$	945

Property and Equipment, Net

The following table presents property and equipment, net for the United States and all other countries based on the geographic location of the assets for the periods presented:

	December 31,
	2015		2014
	(in millions)
Property and equipment, net
United States	$	217	$	170
All other countries		30		25
Total	$	247	$	195

Interest Income and Other, Net (Tables)

12 Months Ended

Dec. 31, 2015

Other Income And Expenses [Abstract]

Summary of Interest Income and Other, Net

The following table presents the detail of interest income and other, net, for the periods presented:

	Year Ended December 31,
	2015			2014			2013
	(in millions)
Net loss, realized and unrealized, on foreign exchange and foreign currency derivative contracts and other, net	$	(4	)	$	(10	)	$	(2	)
Interest income		1			1			2
Gain on sale of business (1)		20			-			-
Total	$	17		$	(9	)	$	-


(1)	See “Note 3 – Acquisitions and Dispositions” for information regarding our gain on sale of business.

Quarterly Financial Information (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

	Three Months Ended
	March 31		June 30		September 30		December 31
	(in millions, except per share data)
Year ended December 31, 2015
Revenue	$	363	$	405	$	415	$	309
Operating income (loss) (1)		90		79		88		(25	)
Net income		63		58		74		3
Basic earnings per share (2)	$	0.44	$	0.40	$	0.51	$	0.02
Diluted earnings per share (2)	$	0.43	$	0.40	$	0.51	$	0.02
Year ended December 31, 2014
Revenue	$	281	$	323	$	354	$	288
Operating income		96		100		84		60
Net income		68		68		54		36
Basic earnings per share (2)	$	0.48	$	0.48	$	0.38	$	0.25
Diluted earnings per share (2)	$	0.47	$	0.47	$	0.37	$	0.25


(1)	During the fourth quarter of 2015, we recognized an incremental $59 million charge over the third quarter of 2015, related to a non-cash charitable contribution recorded to general and administrative expense on our consolidated statement of operations. Refer to “Note 12 – Commitments and Contingencies” for a discussion of the Foundation.
(2)	Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share may not equal the total computed for the year.

Organization and Business Description - Additional Information (Details)		12 Months Ended
	Dec. 11, 2012 shares	Dec. 31, 2015 Vote / shares Country Brand Segment shares
Description Of Business And Basis Of Presentation [Line Items]
Number of countries with localized versions of website \| Country		46
Number of other media brands with websites \| Brand		23
Number of reportable segment \| Segment		2
Other Segment
Description Of Business And Basis Of Presentation [Line Items]
Number of operating segments \| Segment		3
Common Stock
Description Of Business And Basis Of Presentation [Line Items]
Right to voting		one vote per share
Vote per common stock share \| Vote / shares		1
Class B Common Stock
Description Of Business And Basis Of Presentation [Line Items]
Right to voting		10 votes per share
Vote per common stock share \| Vote / shares		10
Liberty
Description Of Business And Basis Of Presentation [Line Items]
Common stock purchased by Liberty	4,799,848
Beneficially ownership of shares of common stock	18,159,752
Beneficially ownership of shares of Common Stock Class B	12,799,999
Percentage of interest held by related party		100.00%
LTRIP
Description Of Business And Basis Of Presentation [Line Items]
Beneficially ownership of shares of common stock		18,159,752
Percentage taken from outstanding shares of common stock		13.70%
Percentage taken from outstanding shares of Class B Common Stock		100.00%
Percentage of beneficially ownership of shares of common stock		21.30%
Right to voting		one vote per share
Beneficially ownership of equity securities		56.10%
LTRIP \| Common Stock
Description Of Business And Basis Of Presentation [Line Items]
Right to voting		one vote per share
Vote per common stock share \| Vote / shares		1
LTRIP \| Class B Common Stock
Description Of Business And Basis Of Presentation [Line Items]
Beneficially ownership of shares of common stock		12,799,999
Percentage taken from outstanding shares of common stock		100.00%
Right to voting		Ten votes per share
Vote per common stock share \| Vote / shares		10

Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Accounting Policies [Line Items]
Minimum maturities of short-term marketable securities	90 days	90 days
Maximum remaining maturity for short-term marketable securities	12 months	12 months
Maximum maturity period for marketable security	3 years
Weighted Average Maturity	18 months
Minimum maturity at purchase date for a short term marketable security	90 days
Accounts receivable due period	30 days
Minimum probability that the fair value of the reporting unit is less than the carrying amount	50.00%
Foreign exchange losses	$ 4	$ 10	$ 0
Advertising expense	507	341	$ 237
Prepaid marketing expenses	2	5
Prepaid Expense, Current	2
Deferred merchant payables	$ 105	93
Increase (decrease) in other long-term assets		(1)
Increase (decrease) in long-term debt		(1)
Reclassification to Noncurrent Deferred Income Tax
Schedule Of Accounting Policies [Line Items]
Prior period reclassification adjustment		$ 10
Customer Concentration Risk \| Sales \| Expedia and Priceline
Schedule Of Accounting Policies [Line Items]
Customer concentration risk	46.00%	46.00%	47.00%
Customer Concentration Risk \| Sales \| Expedia
Schedule Of Accounting Policies [Line Items]
Customer concentration risk	10.00%	10.00%	10.00%
Customer Concentration Risk \| Sales \| Priceline
Schedule Of Accounting Policies [Line Items]
Customer concentration risk	10.00%	10.00%	10.00%
Credit Concentration Risk \| Accounts Receivable \| Expedia
Schedule Of Accounting Policies [Line Items]
Customer concentration risk	11.00%	15.00%
Stock Options
Schedule Of Accounting Policies [Line Items]
Term of stock options, granted	10 years
Stock options requisite service period	4 years
Stock options vest period	4 years
Restricted Stock Units
Schedule Of Accounting Policies [Line Items]
Stock options vest period	4 years
Minimum
Schedule Of Accounting Policies [Line Items]
Depreciation over the estimated useful lives of assets	3 years
Amortized estimated useful lives of Intangible assets	1 year
Maximum
Schedule Of Accounting Policies [Line Items]
Depreciation over the estimated useful lives of assets	5 years
Amortized estimated useful lives of Intangible assets	12 years
Building
Schedule Of Accounting Policies [Line Items]
Depreciation over the estimated useful lives of assets	40 years

Significant Accounting Policies - Summary of Changes in the Allowance for Doubtful Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance, beginning of period	$ 7	$ 3	$ 3
Charges (recoveries) to earnings	3	3	1
Write-offs, net of recoveries and other adjustments	(4)	1	(1)
Balance, end of period	$ 6	$ 7	$ 3

Significant Accounting Policies - Reconciliation of Weighted Average Number of Shares of Common Stock Outstanding In Calculating EPS (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Numerator:

Weighted average shares used to compute Basic EPS

$ 3

$ 74

$ 58

$ 63

$ 36

$ 54

$ 68

$ 198

$ 226

$ 205

Denominator:

143,836

142,721

142,854

Weighted average effect of dilutive securities:

Stock options

1,839

2,734

2,131

RSUs

292

345

278

Weighted average shares used to compute Diluted EPS

145,967

145,800

145,263

Basic EPS

$ 0.02

^[1]

$ 0.51

^[1]

$ 0.40

^[1]

$ 0.44

^[1]

$ 0.25

^[1]

$ 0.38

^[1]

$ 0.48

^[1]

$ 0.48

^[1]

$ 1.38

$ 1.58

$ 1.44

Diluted EPS

$ 0.02

^[1]

$ 0.51

^[1]

$ 0.40

^[1]

$ 0.43

^[1]

$ 0.25

^[1]

$ 0.37

^[1]

$ 0.47

^[1]

$ 0.47

^[1]

$ 1.36

$ 1.55

$ 1.41

[1]	Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share may not equal the total computed for the year.

Significant Accounting Policies - Common Shares Related to Stock Options and RSUs Excluded from Calculated Diluted EPS (Details) - shares
shares in Thousands

12 Months Ended

Dec. 31, 2015

^[1]

Dec. 31, 2014

^[2]

Dec. 31, 2013

^[3]

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount

2,704

1,641

2,271

Stock Options

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount

2,142

1,450

2,244

Restricted Stock Units

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount

562

191

[1]	These totals do not include 66,666 performance based options and 12,799 performance based RSUs representing the right to acquire 79,465 shares of common stock for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.
[2]	These totals do not include 66,666 performance based options and 44,000 performance based RSUs representing the right to acquire 110,666 shares of common stock for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.
[3]	These totals do not include 155,000 performance based options and 44,000 performance based RSUs representing the right to acquire 199,000 shares of common stock, respectively, for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.

Significant Accounting Policies - Common Shares Related to Stock Options and RSUs Excluded from Calculated Diluted EPS (Parenthetical) (Details) - shares

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount

2,704,000

^[1]

1,641,000

^[2]

2,271,000

^[3]

Stock Options

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount

2,142,000

^[1]

1,450,000

^[2]

2,244,000

^[3]

Performance Based RSUs

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount

12,799

44,000

Performance Shares

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount

79,465

110,666

199,000

Performance Shares | Stock Options

Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount

66,666

155,000

[1]	These totals do not include 66,666 performance based options and 12,799 performance based RSUs representing the right to acquire 79,465 shares of common stock for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.
[2]	These totals do not include 66,666 performance based options and 44,000 performance based RSUs representing the right to acquire 110,666 shares of common stock for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.
[3]	These totals do not include 155,000 performance based options and 44,000 performance based RSUs representing the right to acquire 199,000 shares of common stock, respectively, for which all targets required to trigger vesting had not been achieved; therefore, such awards were excluded from the calculation of weighted average shares used to compute Diluted EPS for those reporting periods.

Acquisitions and Dispositions - Additional Information (Details) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2014 USD ($) shares	Dec. 31, 2015 USD ($) Business	Dec. 31, 2014 USD ($) Business	Dec. 31, 2013 USD ($) Business	Aug. 31, 2015 USD ($)
Acquisitions And Dispositions [Line Items]
Cash consideration paid, net of cash acquired		$ 29	$ 331	$ 35
Disposal group, gain on sale of subsidiary		20
Cash acquired from acquisition			62
One of Chinese Subsidiaries
Acquisitions And Dispositions [Line Items]
Disposal group, percentage of ownership interest sold					100.00%
Disposal group, total consideration					$ 28
Cash held back by the purchaser					3
Disposal group, deconsolidated assets on sale of business					11
Disposal group, cash included in deconsolidated asset					3
Disposal group, deconsolidated liabilities on sale of business					$ 4
Disposal group, gain on sale of subsidiary		20
Series of Individually Immaterial Business Acquisitions
Acquisitions And Dispositions [Line Items]
Acquisition-related costs		$ 1	$ 4	$ 2
Number of business acquired \| Business		3	6	6
Cash consideration paid, net of cash acquired	$ 132	$ 28	$ 199	$ 35
Total purchase price consideration	192		208	40
Cash consideration paid	$ 187	$ 1
Cash acquired from acquisition			7	3
Stock option issued related to acquisition \| shares	100,595
Fair value of stock option issued related to acquisition	$ 5
Unrecognized compensation expense, Stock Options	$ 3
Period of recognition (in years)	3 years
Cash held back on acquisition			$ 2	$ 2
Percentage of consolidated revenue accounted by acquisitions			3.00%
Series of Individually Immaterial Business Acquisitions \| Viator, Inc [Member]
Acquisitions And Dispositions [Line Items]
Cash acquired from acquisition	$ 55
ZeTrip
Acquisitions And Dispositions [Line Items]
Business acquisition percentage of outstanding shares of capital stock		100.00%
Date of acquisition		Jan. 31, 2015
BestTables
Acquisitions And Dispositions [Line Items]
Business acquisition percentage of outstanding shares of capital stock		100.00%
Date of acquisition		Mar. 31, 2015
Dimmi
Acquisitions And Dispositions [Line Items]
Business acquisition percentage of outstanding shares of capital stock		100.00%
Date of acquisition		May 31, 2015
Vacation Home Rentals
Acquisitions And Dispositions [Line Items]
Business acquisition percentage of outstanding shares of capital stock			100.00%
Date of acquisition			May 31, 2014
Tripbod
Acquisitions And Dispositions [Line Items]
Business acquisition percentage of outstanding shares of capital stock			100.00%
Date of acquisition			May 31, 2014
Lafourchette
Acquisitions And Dispositions [Line Items]
Business acquisition percentage of outstanding shares of capital stock			100.00%
Date of acquisition			May 31, 2014
MyTable and Restopolis
Acquisitions And Dispositions [Line Items]
Business acquisition percentage of outstanding shares of capital stock			100.00%
Date of acquisition			Oct. 31, 2014
Iens
Acquisitions And Dispositions [Line Items]
Business acquisition percentage of outstanding shares of capital stock			100.00%
Date of acquisition			Dec. 31, 2014

Acquisitions and Dispositions - Summary of Purchase Price Allocation Initially Recorded on Consolidated Balance Sheet for all Acquisitions (Details) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Series of Individually Immaterial Business Acquisitions

Goodwill

$ 732

$ 734

$ 502

Net tangible assets (liabilities)

Goodwill

253

^[1]

Intangible assets

^[2]

194

^[3]

(7)

^[4]

Deferred tax liabilities, net

(2)

(40)

Total purchase price consideration

^[5]

$ 28

$ 400

[1]	Goodwill in the amount of $5 million is expected to be deductible for tax purposes.
[2]	Identifiable definite-lived intangible assets acquired during 2015 were comprised of trade names of $2 million with a weighted average life of approximately 10 years, customer lists and supplier relationships of $7 million with a weighted average life of approximately 6 years and technology and other of $3 million with a weighted average life of approximately 2 years. The overall weighted-average life of the identifiable definite-lived intangible assets acquired in the purchase of these businesses during 2015 was 6 years, and will be amortized on a straight-line basis over their estimated useful lives from acquisition date.
[3]	Identifiable definite-lived intangible assets acquired during 2014 were comprised of trade names of $44 million with a weighted average life of 10 years, customer lists and supplier relationships of $82 million with an approximate weighted average life of 7 years, subscriber relationships of $25 million with a weighted average life of 6 years and developed technology and other of $43 million with an approximate weighted average life of 5 years. The overall weighted-average life of the identifiable definite-lived intangible assets acquired in the purchase of the companies during 2014 was approximately 7 years, and will be amortized on a straight-line basis over their estimated useful lives from acquisition date.
[4]	Includes assets acquired, including cash of $62 million and accounts receivable of $25 million and liabilities assumed, including deferred merchant payables of $76 million, accrued expenses and other current liabilities of $15 million and deferred revenue of $5 million which reflect their respective fair values at acquisition date.
[5]	Subject to adjustment based on indemnification obligations for general representations and warranties of the acquired company stockholders.

Acquisitions and Dispositions - Summary of Purchase Price Allocation Initially Recorded on Consolidated Balance Sheet for all Acquisitions (Parenthetical) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Goodwill expected to be deductible for tax purposes

$ 5

Cash acquired from acquisition

Assets acquired, accounts receivable

Liabilities assumed, deferred merchant payables

Accrued expenses and other current liabilities assumed

Liabilities assumed, deferred revenue

Series of Individually Immaterial Business Acquisitions

Weighted average life of identifiable definite-lived intangible assets acquired

$ 12

^[1]

$ 194

^[2]

6 years

7 years

Cash acquired from acquisition

$ 7

$ 3

Series of Individually Immaterial Business Acquisitions | Trade Names

Weighted average life of identifiable definite-lived intangible assets acquired

$ 2

$ 44

10 years

Series of Individually Immaterial Business Acquisitions | Customer Lists and Supplier Relationships

Weighted average life of identifiable definite-lived intangible assets acquired

$ 7

$ 82

6 years

7 years

Series of Individually Immaterial Business Acquisitions | Developed Technology and Other

Weighted average life of identifiable definite-lived intangible assets acquired

$ 3

$ 43

2 years

5 years

Series of Individually Immaterial Business Acquisitions | Subscriber Relationships

Weighted average life of identifiable definite-lived intangible assets acquired

$ 25

6 years

[1]

[2]

Stock Based Awards and Other Equity Instruments - Amount of Stock-Based Compensation Related to Stock-Based Awards, Primarily Stock Options and RSUs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 72	$ 63	$ 49
Income tax benefit from stock-based compensation expense	(26)	(24)	(18)
Total stock-based compensation expense, net of tax effect	46	39	31
Selling and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	16	13	11
Technology and Content
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	28	27	21
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 28	$ 23	$ 17

Stock Based Awards and Other Equity Instruments - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	Sep. 12, 2014	Jun. 28, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 20, 2011
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Capitalized stock based compensation for website development costs			$ 8	$ 8	$ 5
Common shares registered for issuance under incentive plan						17,500,000
Common stock share issuance under plan		15,000,000
Number of stock options issued			587,000
Total intrinsic value			$ 149	75	58
Total fair value of stock options vested			$ 36	$ 34	$ 27
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Term of stock options, granted			10 years
Stock options vest period			4 years
Closing stock price			$ 85.25
Weighted-average grant date fair value of options granted			$ 33.02	$ 46.65	$ 28.30
Acquisition Related Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average grant date fair value of options granted				$ 80.31
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vest period			4 years
RSU's issued under incentive plan			1,017,000
2011 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common shares registered for issuance under incentive plan						17,400,000
Common shares previously registered for issuance under incentive plan						7,400,000
Share registered under amendment						10,000,000
Common stock share issuance under plan			17,200,758
2011 Plan \| Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of stock options issued			586,851
Term of stock options, granted			10 years
Stock options vest period			4 years
2011 Plan \| Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options vest period			4 years
RSU's issued under incentive plan			1,016,626
Deferred Compensation Plan for Non Employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common shares registered for issuance under incentive plan						100,000
2010 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock	100,595

Stock Based Awards and Other Equity Instruments - Summary of Stock Option (Details)
$ / shares in Units, shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2015

USD ($)

$ / shares

Options Outstanding

Options Outstanding, Beginning balance | shares

8,651

Options Outstanding, Granted | shares

587

Options Outstanding, Exercised | shares

(3,187)

^[1]

Options Outstanding, Cancelled or expired | shares

(331)

Options Outstanding, Ending balance | shares

5,720

Options Outstanding, Exercisable | shares

2,480

Options Outstanding, Vested and expected to vest | shares

5,610

Weighted Average Exercise Price per share

Options Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares

$ 44.47

Options Granted, Weighted Average Exercise Price | $ / shares

83.78

Options Exercised, Weighted Average Exercise Price | $ / shares

33.78

^[1]

Options Cancelled or expired, Weighted Average Exercise Price | $ / shares

57.44

Options Outstanding, Weighted Average Exercise Price, Ending balance | $ / shares

53.71

Options Exercisable, Weighted Average Exercise Price | $ / shares

36.69

Options Vested and expected to vest, Weighted Average Exercise Price | $ / shares

$ 53.30

Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value

Options Outstanding, Weighted Average Remaining Contractual Life

5 years 7 months 6 days

Options Exercisable, Weighted Average Remaining Contractual Life

4 years 3 months 18 days

Options Vested and expected to vest, Weighted Average Remaining Contractual Life

5 years 7 months 6 days

Options Outstanding, Aggregate Intrinsic Value | $

$ 187

Options Exercisable, Aggregate Intrinsic Value | $

122

Options Vested and expected to vest, Aggregate Intrinsic Value | $

$ 186

[1]

Stock Based Awards and Other Equity Instruments - Summary of Stock Option (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2015 shares
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options non converted into shares due to net share settlement	1,978,692

Stock Based Awards and Other Equity Instruments - Weighted-Average Assumptions of Estimated Fair Value of Stock Option Grants (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk free interest rate	1.58%	1.79%	1.41%
Expected term (in years)	5 years 5 months 1 day	5 years 9 months 18 days	6 years 22 days
Expected volatility	41.79%	44.04%	50.78%

Stock Based Awards and Other Equity Instruments - Summary of RSU Activity (Details)
$ / shares in Units, shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2015

USD ($)

$ / shares

RSUs outstanding

RSU outstanding, vested and expected to vest

5,610

Aggregate Intrinsic Value

Options Vested and expected to vest, Aggregate Intrinsic Value | $

$ 186

Restricted Stock Units

RSUs outstanding

Unvested RSUs outstanding, Beginning balance

1,448

Unvested RSUs, Granted

1,017

Unvested RSUs, Vested and released

(440)

^[1]

Unvested RSUs, Cancelled

(275)

Unvested RSUs outstanding, Ending balance

1,750

RSU outstanding, vested and expected to vest

1,556

Weighted Average Grant-Date Fair Value Per Share

Unvested RSUs outstanding, Weighted Average Grant-Date Fair Value Per Share, Beginning balance | $ / shares

$ 71.33

Weighted Average Grant-Date Fair Value Per Share, Granted | $ / shares

82.95

Weighted Average Grant-Date Fair Value Per Share, Vested and released | $ / shares

66.58

^[1]

Weighted Average Grant-Date Fair Value Per Share, Cancelled | $ / shares

72.76

Unvested RSUs outstanding, Weighted Average Grant-Date Fair Value Per Share, Ending balance | $ / shares

79.02

Weighted Average Grant-Date Fair Value Per Share, Expected to vest | $ / shares

$ 78.77

Aggregate Intrinsic Value

Unvested RSUs outstanding, Aggregate Intrinsic Value | $

$ 149

Options Vested and expected to vest, Aggregate Intrinsic Value | $

$ 133

[1]

Stock Based Awards and Other Equity Instruments - Summary of RSU Activity (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2015 shares
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs withheld to satisfy minimum tax withholding requirements	128,341

Stock Based Awards and Other Equity Instruments - Summary of Unrecognized Compensation Expense, Net of Estimated Forfeitures and Weighted Average Period Remaining (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense (net of forfeitures), Stock Options	$ 56
Period of recognition (in years)	2 years 6 months
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Period of recognition (in years)	2 years 8 months 12 days
Unrecognized compensation expense (net of forfeitures), RSUs	$ 94

Financial Instruments - Schedule of Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 614	$ 455
Short-Term Marketable Securities	47	108
Long-Term Marketable Securities	37	31
Cash	598	447
Cash, cash equivalents and marketable securities, Amortized Cost	698	594
Cash, cash equivalents and marketable securities, Fair Value	698	594
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	11	8
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	89	139
Fair Value	89	139
Cash and cash equivalents	5
Short-Term Marketable Securities	47	108
Long-Term Marketable Securities	37	31
Level 2 \| U.S. Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	13	38
Fair Value	13	38
Short-Term Marketable Securities	9	35
Long-Term Marketable Securities	4	3
Level 2 \| US treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	16
Fair Value	16
Cash and cash equivalents	4
Short-Term Marketable Securities	12
Level 2 \| Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	5	8
Fair Value	5	8
Short-Term Marketable Securities	4	8
Long-Term Marketable Securities	1
Level 2 \| Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	1	1
Fair Value	1	1
Short-Term Marketable Securities	1	1
Level 2 \| Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	54	92
Fair Value	54	92
Cash and cash equivalents	1
Short-Term Marketable Securities	21	64
Long-Term Marketable Securities	$ 32	$ 28

Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Investments Debt And Equity Securities [Abstract]
Financial instruments including money market funds maturities period	90 days	90 days
Maximum maturities period of long-term marketable securities	3 years	3 years
Minimum maturities period of long-term marketable securities	1 year	1 year
Maximum remaining maturity for short-term marketable securities	12 months	12 months
Minimum maturities of short-term marketable securities	90 days	90 days
Derivative Instruments Not Designated as Hedging Instruments, Description of Terms	Our current forward contracts are not designated as hedges and have current maturities of less than 90 days
Net gain related to forward contracts	$ 2	$ 1

Financial Instruments - Fair Value and Notional Principal Amounts of Outstanding or Unsettled Derivative Instruments (Details) - USD ($)

Dec. 31, 2015

Dec. 31, 2014

Not Designated as Hedging Instrument | Foreign Exchange-forward Contracts

Derivatives Fair Value [Line Items]

Foreign exchange-forward contracts

^[1],[2]

$ 25,000,000

$ 20,000,000

[1]

Derivative contracts address foreign exchange fluctuations for the Euro versus the U.S. Dollar.

[2]

Property and Equipment, Net - Components of Property and Equipment (Details) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Less: accumulated depreciation

$ 335

$ 186

(88)

(77)

Construction in progress

^[1]

Total

247

195

Capitalized Software and Website Development

127

104

Total

Building

^[1]

123

Leasehold Improvements

Computer Equipment

Furniture, Office Equipment and Other

$ 17

$ 11

[1]

Property and Equipment, Net - Components of Property and Equipment (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Other Long-Term Liabilities
Property Plant And Equipment [Line Items]
Capitalization of construction in-process related to build to suit lease obligation	$ 6	$ 52
Building
Property Plant And Equipment [Line Items]
Property Plant And Equipment Useful Life	40 years

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property Plant And Equipment [Line Items]
Property and equipment, net	$ 247	$ 195
Depreciation of property and equipment, including amortization of internal-use software and website development	57	47	$ 30
Capitalized Software and Website Development
Property Plant And Equipment [Line Items]
Property and equipment, net	71	61
Capitalized computer software and website development costs	52	47
Depreciation of property and equipment, including amortization of internal-use software and website development	37	$ 30	$ 20
Property and equipment, dispositions	$ 39

Goodwill and Intangible Assets, Net - Summary of Changes in Goodwill (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

$ 734

$ 502

^[1]

253

Disposition

(1)

Other adjustments

^[2]

(18)

(21)

Ending balance

732

734

TripAdvisor Segment

502

Allocation to new segments

^[1]

253

Other adjustments

^[2]

(21)

^[3]

(734)

Hotel Segment

442

Allocation to new segments

^[1]

Disposition

(1)

^[3]

442

Ending balance

442

Other Segment

292

Allocation to new segments

^[1]

Other adjustments

^[2]

(18)

^[3]

292

Ending balance

$ 290

$ 292

[1]	The additions to goodwill relate to our business acquisitions. See “Note 3— Acquisitions and Dispositions,” for further information.
[2]	Primarily related to impact of changes in foreign exchange rates to goodwill.
[3]	Reflects initial allocation of goodwill related to our reporting segment changes in the fourth quarter of 2014.

Goodwill and Intangible Assets, Net - Summary of Intangible Assets Acquired in Business Combinations (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets with definite lives	$ 198	$ 202
Less: accumulated amortization	(52)	(18)
Intangible assets with definite lives, net	146	184
Intangible assets with indefinite lives	30	30
Total	$ 176	$ 214

Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 36,000,000	$ 18,000,000	$ 6,000,000
Goodwill, Impairment Loss	0	0	0
Indefinite-lived intangible assets, Impairment Loss	$ 0	$ 0	$ 0

Goodwill and Intangible Assets, Net - Components of Intangible Assets with Definite Lives (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (in years)	6 years
Gross Carrying Amount	$ 198	$ 202
Accumulated Amortization	(52)	(18)
Intangible assets with definite lives, net	$ 146	184
Trade Names and Trademarks
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (in years)	8 years 6 months
Gross Carrying Amount	$ 53	52
Accumulated Amortization	(9)	(5)
Intangible assets with definite lives, net	$ 44	47
Customer Lists and Supplier Relationships
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (in years)	5 years 4 months 24 days
Gross Carrying Amount	$ 82	77
Accumulated Amortization	(20)	(5)
Intangible assets with definite lives, net	$ 62	72
Subscriber Relationships
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (in years)	4 years 9 months 18 days
Gross Carrying Amount	$ 29	31
Accumulated Amortization	(9)	(4)
Intangible assets with definite lives, net	$ 20	27
Technology and Other
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (in years)	3 years 3 months 18 days
Gross Carrying Amount	$ 34	42
Accumulated Amortization	(14)	(4)
Intangible assets with definite lives, net	$ 20	$ 38

Goodwill and Intangible Assets, Net - Summary of Estimated Future Amortization Expense Related to Intangible Assets with Definite Lives (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]
2016	$ 29
2017	28
2018	25
2019	22
2020	17
2021 and thereafter	25
Intangible assets with definite lives, net	$ 146	$ 184

Debt - Summary of Total Outstanding Debt (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Short-Term Debt:
Short-Term Debt	$ 1	$ 78
Long-Term Debt:
Long-Term Debt	200	259
Less: Unamortized discount and debt issuance costs		(1)
Term Loan
Short-Term Debt:
Short-Term Debt		40
Long-Term Debt:
Long-Term Debt		260
2015 Credit Facility
Long-Term Debt:
2015 Credit Facility	200
Chinese Credit Facilities
Short-Term Debt:
Chinese Credit Facilities	$ 1	$ 38

Debt - Two Thousand Eleven Credit Facility - Additional Information (Details) - USD ($)			12 Months Ended
	Jun. 26, 2015	Dec. 20, 2011	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total interest and commitments fees			$ 10,000,000	$ 9,000,000	$ 10,000,000
Term Loan
Debt Instrument [Line Items]
Term Loan Facility, principal amount		$ 400,000,000
Period of Term Loan Facility		5 years
Borrowings, maturity date		Dec. 31, 2016
Principal amount repaid	$ 290,000,000
Gains (losses) on extinguishment of debt	$ 0
2011 Credit Facility
Debt Instrument [Line Items]
Maximum borrowing limits		$ 600,000,000
Total interest and commitments fees			$ 3,000,000	$ 6,000,000	$ 8,000,000
2011 Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing capacity under Credit Facility		$ 200,000,000
Credit facility, expiration period		5 years
Credit facility, maturity date		Dec. 31, 2016

Debt - Two Thousand Fifteen Credit Facility - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jun. 26, 2015
Debt Instrument [Line Items]
Total interest and commitments fees	$ 10,000,000	$ 9,000,000	$ 10,000,000
Letter of Credit
Debt Instrument [Line Items]
Letters of credit outstanding amount	2,000,000
2015 Credit Facility
Debt Instrument [Line Items]
Total interest and commitments fees	$ 2,000,000
2015 Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing capacity under Credit Facility				$ 1,000,000,000
Interest rate description	Any overdue amounts under or in respect of the revolving credit facility not paid when due shall bear interest at (i) in the case of principal, the applicable interest rate plus 2.00% per annum, (ii) in the case of interest denominated in Sterling or Euro, the applicable rate plus 2.00% per annum and (iii) in the case of interest denominated in US Dollars, 2.00% per annum plus the Alternate Base Rate plus the interest rate spread applicable to ABR loans.
Basis spread on variable rate	2.00%
Credit facility, maturity date	Jun. 26, 2020
Credit facility, expiration period	5 years
Amount borrowed	$ 290,000,000
Principal amount repaid	90,000,000
Lender fees and debt financing costs	$ 3,000,000
2015 Credit Facility \| Revolving Credit Facility \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Borrowings, interest rate description	borrowings bear interest at LIBOR plus 125 basis points
Borrowings, interest rate	1.70%
2015 Credit Facility \| Revolving Credit Facility \| Euro
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
2015 Credit Facility \| Revolving Credit Facility \| US Dollars
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
2015 Credit Facility \| Term Loan And Revolving Credit Facility
Debt Instrument [Line Items]
Line Of Credit Facility Unused Capacity Commitment Fee Percentage	0.20%
2015 Credit Facility \| Letter of Credit
Debt Instrument [Line Items]
Borrowing capacity under Credit Facility	$ 15,000,000
Letters of credit outstanding amount	2,000,000
2015 Credit Facility \| Borrowings On Same Day Notice
Debt Instrument [Line Items]
Borrowing capacity under Credit Facility	$ 40,000,000

Debt - Chinese Credit Facilities - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2015 CNY (¥)
Debt Instrument [Line Items]
Repayments of outstanding borrowings	$ 90
Chinese Credit Facilities
Debt Instrument [Line Items]
Outstanding borrowings	1	$ 38
Repayments of outstanding borrowings	41	$ 3	$ 15
Chinese Credit Facilities \| Chinese Credit Facility Boa
Debt Instrument [Line Items]
Outstanding borrowings	1
Borrowing capacity under Credit Facility	$ 30
Period of credit facility	1 year
Line of credit rate basis	100.00%
Line of credit, interest rate basis	4.35%			4.35%
Interest rate description	Chinese Credit Facility—BOA currently bears interest at a 100% of the People’s Bank of China’s base rate which was 4.35% as of December 31, 2015.
Repayments of outstanding borrowings	$ 22
Chinese Credit Facilities \| Chinese Credit Facility JPM
Debt Instrument [Line Items]
Outstanding borrowings	0
Borrowing capacity under Credit Facility	$ 20			¥ 125,000,000
Period of credit facility	1 year
Line of credit rate basis	100.00%
Line of credit, interest rate basis	4.35%			4.35%
Interest rate description	Chinese Credit Facility—JPM currently also bears interest at a rate based on 100% of the People’s Bank of China’s base rate, which was 4.35% as of December 31, 2015.
Repayments of outstanding borrowings	$ 19

Income Taxes - Summary of Our Domestic and Foreign Income Before Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Domestic	$ 67	$ 146	$ 129
Foreign	172	176	155
Income before income taxes	$ 239	$ 322	$ 284

Income Taxes - Summary of the Components of Our Provision for Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current income tax expense:
Federal	$ 48	$ 93	$ 48
State	8	14	9
Foreign	22	6	17
Current income tax expense	78	113	74
Deferred income tax (benefit) expense:
Federal	(29)	(12)	6
State	(2)	(1)	1
Foreign	(6)	(4)	(2)
Deferred income tax (benefit) expense:	(37)	(17)	5
Provision for income taxes	$ 41	$ 96	$ 79

Income Taxes - Summary of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Deferred tax assets:

Net operating loss carryforwards

$ 40

$ 43

Provision for accrued expenses

Deferred rent

Lease financing obligation

Foreign advertising spend

Deferred expense related to cost-sharing arrangement

Charitable contribution carryforward

Total deferred tax assets

177

135

Less: valuation allowance

(17)

(19)

Net deferred tax assets

160

116

Deferred tax liabilities:

Intangible assets

(81)

(88)

Property and equipment

(27)

(25)

Prepaid expenses

(4)

Building

(31)

(26)

Deferred income related to cost-sharing arrangement

(7)

Total deferred tax liabilities

(1)

(150)

(144)

Net deferred tax assets

^[1]

$ 10

Net deferred tax (liabilities)

^[1]

$ (28)

[1]	Includes non-current deferred tax assets of $25 million and $1 million as of December 31, 2015 and 2014, respectively, reported in "Other long-term assets" on our consolidated balance sheets.

Income Taxes - Summary of Deferred Tax Assets and Deferred Tax Liabilities (Parenthetical) (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Deferred tax assets, noncurrent	$ 25	$ 1

Income Taxes - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012
Income Taxes [Line Items]
Valuation allowance related to net operating loss carryforwards	$ 17
Foreign net operating loss carryforwards		$ 2
Undistributed earnings of foreign subsidiaries	$ 759
Income tax expense at federal statutory rate	35.00%
Tax benefit from subsidiary	$ 13
Unrecognized tax benefits	89	67		$ 36	$ 24
Unrecognized tax benefits that would impact effective tax rate	53
Total gross interest and penalties accrued	$ 6	$ 4
Singapore
Income Taxes [Line Items]
Income tax expense at federal statutory rate			5.00%
Singapore's statutory tax rate			17.00%
Tax incentive agreement expiration date	Jun. 30, 2021
Decrease to the 2015 tax provision	$ 4
Increase in Diluted EPS	$ 0.03
Federal
Income Taxes [Line Items]
Operating loss carryforwards	$ 16
Expiration date of NOLs	Between 2020 and 2035
State
Income Taxes [Line Items]
Operating loss carryforwards	$ 13
Expiration date of NOLs	Between 2020 and 2035
Foreign
Income Taxes [Line Items]
Operating loss carryforwards	$ 85
Expiration date of NOLs	Between 2016 and 2033

Income Taxes - Reconciliation of the Provision for Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]
Income tax expense at the federal statutory rate of 35%	$ 84	$ 113	$ 100
Foreign rate differential	(53)	(49)	(41)
State income taxes, net of effect of federal tax benefit	4	13	8
Unrecognized tax benefits and related interest	12	14	9
Change in cost-sharing treatment of stock-based compensation	(13)
Non-deductible transaction costs	1	1
Change in valuation allowance	5	5	2
Other, net	1	(1)	1
Provision for income taxes	$ 41	$ 96	$ 79

Income Taxes - Reconciliation of the Provision for Income Taxes (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2015
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]
Income tax expense at federal statutory rate	35.00%

Income Taxes - Reconciliation of the Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Balance, beginning of year	$ 67	$ 36	$ 24
Increases to tax positions related to the current year	15	13	12
Increases to tax positions related to the prior year	7	18	4
Decreases to tax positions related to the prior year			(4)
Balance, end of year	$ 89	$ 67	$ 36

Accrued Expenses and Other Current Liabilities - Details of Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Payables And Accruals [Abstract]

Accrued salary, bonus, and related benefits

$ 47

$ 41

Accrued marketing costs

Accrued charitable foundation payments

^[1]

Other Liabilities Noncurrent [Abstract]

Total

$ 123

$ 114

[1]	See “Note 12— Commitments and Contingencies” for information regarding costs associated with the Foundation.

Other Long-Term Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Unrecognized tax benefits

^[1]

$ 87

$ 68

Financing obligation, net of current portion

^[2]

Total other long term liabilities

^[3]

$ 189

$ 154

[1]	See “Note 9—Income Taxes” for additional information on our unrecognized tax benefits. Amount includes accrued interest related to this liability.
[2]	Refer to “Note 12 – Commitments and Contingencies,” for additional information on our corporate headquarters lease.
[3]	Amounts primarily consist of long term deferred rent balances related to operating leases for office space.

Commitments and Contingencies - Material Contractual Obligations, Commercial Commitments and Outstanding Debt (Details) $ in Millions	Dec. 31, 2015 USD ($)
Commitment And Contingencies [Line Items]
Property leases, Total	$ 250
Property leases, Less than 1 year	22
Property leases, 1 to 3 years	45
Property leases, 3 to 5 years	44
Property leases, More than 5 years	139
Contractual Obligation, Total	265
Contractual Obligation, Less than 1 year	25
Contractual Obligation, 1 to 3 years	52
Contractual Obligation, 3 to 5 years	49
Contractual Obligation, More than 5 years	139
Expected Interest Payments on 2015 Credit Facility
Commitment And Contingencies [Line Items]
Contractual Obligation, Total	15
Contractual Obligation, Less than 1 year	3
Contractual Obligation, 1 to 3 years	7
Contractual Obligation, 3 to 5 years	$ 5

Commitments and Contingencies - Material Contractual Obligations, Commercial Commitments and Outstanding Debt (Parenthetical) (Details) $ in Millions	Dec. 31, 2015 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Unrecognized tax benefits	$ 87

Commitments and Contingencies - Additional Information (Details)
$ in Millions

1 Months Ended

3 Months Ended

12 Months Ended

Jun. 30, 2013

ft²

Dec. 31, 2015

USD ($)

Dec. 31, 2015

USD ($)

ft²

Location

Dec. 31, 2014

USD ($)

Dec. 31, 2013

USD ($)

Total interest and commitments fees

Rental expense

$ 19

$ 17

$ 11

Lease expiration date

Dec. 01, 2030

Leased area | ft²

280,000

$ 10

Leased location | Location

$ 57

$ 47

$ 30

Contribution expense

^[1]

$ 67

Percent of OIBA for Charitable Foundation

2.00%

Letter of Credit

Letters of credit outstanding amount

$ 2

General and Administrative

North America And Europe And Asia Pacific

Contribution expense

$ 59

$ 67

Lease expiration date

Jun. 01, 2027

Leased area | ft²

410,000

Corporate HQ Building

Total interest and commitments fees

Lease expiration date

Dec. 01, 2030

Initial term of Lease

15 years 7 months

Extended Lease Term

5 years

$ 4

Commitments And Contingencies Disclosure [Abstract]

Rent expenses

Security deposits

$ 1

[1]	Represents a charitable obligation which was settled in Company stock and therefore excluded from Adjusted EBITDA. Refer to “Note 12 – Commitments and Contingencies” for a discussion of the Foundation.

Commitments and Contingencies - Future Minimum Commitments Under Our corporate Headquarters Lease and Other Non-Cancelable Operating Leases (Details) $ in Millions	Dec. 31, 2015 USD ($)
Commitment And Contingencies [Line Items]
2016	$ 22
Thereafter	139
Property leases, Total	250
2016	(2)
2017	(1)
2018	(1)
2019	(1)
Total minimum lease payments	(5)
2016	22
2017	23
2018	22
2019	22
2020	22
Thereafter	139
Total minimum lease payments	250
Corporate Headquarters Lease
Commitment And Contingencies [Line Items]
2016	9
2017	9
2018	9
2019	9
2020	9
Thereafter	97
Property leases, Total	142
Other Operating Leases
Commitment And Contingencies [Line Items]
2016	15
2017	15
2018	14
2019	14
2020	13
Thereafter	42
Property leases, Total	$ 113

Commitments and Contingencies - Future Minimum Commitments Under Our corporate Headquarters Lease and Other Non-Cancelable Operating Leases (Parenthetical) (Details) - USD ($)
$ in Millions

Dec. 31, 2015

Dec. 31, 2014

Other long-term liabilities under financial obligation

^[1]

$ 84

$ 67

[1]	Refer to “Note 12 – Commitments and Contingencies,” for additional information on our corporate headquarters lease.

Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Automatic enrollment feature pre-tax	6.00%
Maximum employer contribution	50.00%
Maximum employee contributions percentage to receive 50% matching	6.00%
Employer match, percent	3.00%
Contributions vested with the employees	2 years
Contributions to plans	$ 7	$ 5	$ 5
Director
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Common stock reserved for issuance to non-employee directors	557
Director \| 2011 Plan
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Common stock reserved for issuance to non-employee directors	100,000
Maximum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
No of installments for payments upon termination	Payments upon termination will be made in either one lump sum or up to five annual installments, as elected by the eligible director at the time of the deferral election
Pre-tax basis
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Maximum annual employee contribution, percent	50.00%
After-tax basis
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items]
Maximum annual employee contribution, percent	10.00%

Stockholders' Equity - Additional Information (Details)	1 Months Ended	12 Months Ended
Stockholders' Equity - Additional Information (Details)	Dec. 31, 2015 USD ($) Vote / shares $ / shares shares	Dec. 31, 2015 USD ($) Vote / shares Directors $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2013 USD ($) $ / shares shares	Feb. 15, 2013 USD ($)	Dec. 31, 2012 shares
Schedule Of Capitalization Equity [Line Items]
Preferred stock, shares authorized	100,000,000	100,000,000	100,000,000
Preferred stock, par value \| $ / shares	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0	0
Common stock, shares authorized	1,600,000,000	1,600,000,000	1,600,000,000
Common stock, par value \| $ / shares	$ 0.001	$ 0.001	$ 0.001
Percentage of directors elected by common stock holders	25.00%	25.00%
Number of directors \| Directors		3
Conversion of Class B common stock		100.00%
Common stock, shares issued	133,836,242	133,836,242	132,315,465
Common stock, shares outstanding	132,443,111	132,443,111	130,121,292
Authorized the repurchase of shares of common stock \| $					$ 250,000,000
Repurchase of common stock, shares		2,120,709
Aggregate cost of shares repurchased, common stock \| $		$ 145,000,000		$ 145,000,000
Remaining authorized share repurchased amount \| $	$ 105,000,000	$ 105,000,000
Issuance of treasury stock as charitable contribution, Shares (Note 12)	801,042
Treasury stock, shares	1,393,131	1,393,131	2,194,173
Aggregate cost of treasury stock \| $	$ 92,000,000	$ 92,000,000	$ 145,000,000
Dividend declared on common stock \| $ / shares		$ 0	$ 0	$ 0
Class B Common Stock
Schedule Of Capitalization Equity [Line Items]
Common stock, shares authorized	400,000,000	400,000,000	400,000,000
Common stock, par value \| $ / shares	$ 0.001	$ 0.001	$ 0.001
Right to voting		10 votes per share
Vote per common stock share \| Vote / shares	10	10
Common stock, shares issued	12,799,999	12,799,999	12,799,999
Common stock, shares outstanding	12,799,999	12,799,999	12,799,999	12,799,999		12,799,999
Common Stock
Schedule Of Capitalization Equity [Line Items]
Common stock, shares authorized	1,600,000,000	1,600,000,000
Common stock, par value \| $ / shares	$ 0.001	$ 0.001
Right to voting		one vote per share
Vote per common stock share \| Vote / shares	1	1
Common stock, shares outstanding	133,836,242	133,836,242	132,315,465	131,537,798		130,060,138

Stockholders' Equity - Accumulated Other Comprehensive Loss Primarily Comprised of Accumulated Foreign Currency Translation (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income Loss [Line Items]
Total accumulated other comprehensive loss	$ (63)	$ (31)
Cumulative Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Total accumulated other comprehensive loss	$ (63)	$ (31)

Related Party Transactions - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Class B Common Stock
Related Party Transaction [Line Items]
Right to voting	10 votes per share
LTRIP
Related Party Transaction [Line Items]
Beneficially ownership of shares of common stock	18,159,752
Percentage taken from outstanding shares of common stock	13.70%
Percentage of beneficially ownership of shares of common stock class B	21.30%
Right to voting	one vote per share
Beneficially ownership of equity securities	56.10%
Related party transactions	$ 0	$ 0	$ 0
LTRIP \| Class B Common Stock
Related Party Transaction [Line Items]
Beneficially ownership of shares of common stock	12,799,999
Percentage taken from outstanding shares of common stock	100.00%
Right to voting	Ten votes per share

Segment and Geographic Information - Additional Information (Details)	12 Months Ended
	Dec. 31, 2015 Segment
Segment Reporting [Abstract]
Number of reportable segment	2

Segment and Geographic Information - Summary of Segment Information (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

$ 309

$ 415

$ 405

$ 363

$ 288

$ 354

$ 323

$ 281

$ 1,492

$ 1,246

$ 945

^[1]

466

468

^[2]

379

^[2]

(57)

(47)

(30)

(36)

(18)

(6)

Non-cash charitable contribution

(72)

(63)

(49)

^[3]

(67)

Other non-recurring expenses

(2)

Income before income taxes

(25)

^[4]

100

232

340

294

Other income, net

(18)

(10)

239

322

284

Provision for income taxes

(41)

(96)

(79)

Operating Segments | Hotel Segment

$ 3

$ 74

$ 58

$ 63

$ 36

$ 54

$ 68

198

226

205

1,263

1,135

899

^[1]

472

^[2]

384

^[2]

Operating Segments | Other Segment

472

384

229

111

^[1]

(6)

(4)

^[2]

(5)

^[2]

Corporate and Unallocated

(6)

(4)

(5)

(57)

(47)

(30)

(36)

(18)

(6)

Non-cash charitable contribution

(72)

(63)

(49)

^[3]

(67)

Other non-recurring expenses

(2)

$ (234)

$ (128)

$ (85)

[1]	Includes allocated general and administrative expenses in our Hotel segment of $85 million, $87 million and $72 million; and in our Other segment of $28 million, $18 million and $9 million for the years ended December 31, 2015, 2014 and 2013, respectively.
[2]	(1) Hotel segment Adjusted EBITDA includes charitable contributions to the Foundation which were funded in cash of $8 million and $7 million, for the years ended December 31, 2014 and 2013, respectively. Our pledge obligation was calculated at 2.0% of OIBA in 2014 and 2013, which was calculated as follows:
[3]	Represents a charitable obligation which was settled in Company stock and therefore excluded from Adjusted EBITDA. Refer to “Note 12 – Commitments and Contingencies” for a discussion of the Foundation.
[4]	During the fourth quarter of 2015, we recognized an incremental $59 million charge over the third quarter of 2015, related to a non-cash charitable contribution recorded to general and administrative expense on our consolidated statement of operations. Refer to “Note 12 – Commitments and Contingencies” for a discussion of the Foundation.

Segment and Geographic Information - Summary of Segment Information (Parenthetical) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

General and administrative expenses

^[1]

$ 210

$ 128

$ 98

Percent of OIBA for Charitable Foundation

2.00%

Hotel Segment

Amounts of charitable contributions funded

$ 8

$ 7

Percent of OIBA for Charitable Foundation

2.00%

Operating Segments | Hotel Segment

General and administrative expenses

$ 85

$ 87

$ 72

Operating Segments | Other Segment

General and administrative expenses

$ 28

$ 18

$ 9

[1]	Includes stock-based compensation expense as follows:

Segment and Geographic Information - Reconciliation of Adjusted EBITDA to Net Income (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Segment Reporting [Abstract]

^[1]

$ 466

$ 468

^[2]

$ 379

^[2]

(57)

(47)

(30)

OIBA

^[3]

421

349

(36)

(18)

(6)

Provision for income taxes

(72)

(63)

(49)

Other expense, net

(18)

(10)

(41)

(96)

(79)

$ 3

$ 74

$ 58

$ 63

$ 36

$ 54

$ 68

$ 198

$ 226

$ 205

[1]	Includes allocated general and administrative expenses in our Hotel segment of $85 million, $87 million and $72 million; and in our Other segment of $28 million, $18 million and $9 million for the years ended December 31, 2015, 2014 and 2013, respectively.
[2]	(1) Hotel segment Adjusted EBITDA includes charitable contributions to the Foundation which were funded in cash of $8 million and $7 million, for the years ended December 31, 2014 and 2013, respectively. Our pledge obligation was calculated at 2.0% of OIBA in 2014 and 2013, which was calculated as follows:
[3]	(1) We defined OIBA as net income (loss) plus: (1) provision for income taxes; (2) other income (expense), net; (3) stock-based compensation; (4) amortization of intangible assets; and (5) non-recurring expenses. This operating metric was only used by our management to calculate our annual obligation to the Foundation.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Segment and Geographic Information - Summary of Total Revenue by Product (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue from External Customer [Line Items]
Total revenue	$ 309	$ 415	$ 405	$ 363	$ 288	$ 354	$ 323	$ 281	$ 1,492	$ 1,246	$ 945
Click-based advertising
Revenue from External Customer [Line Items]
Total revenue									956	870	696
Display-based advertising
Revenue from External Customer [Line Items]
Total revenue									159	140	119
Subscription, transaction and other
Revenue from External Customer [Line Items]
Total revenue									$ 377	$ 236	$ 130

Segment and Geographic Information - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue	$ 309	$ 415	$ 405	$ 363	$ 288	$ 354	$ 323	$ 281	$ 1,492	$ 1,246	$ 945
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue									739	593	463
United Kingdom
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue									215	191	141
All Other Countries
Revenues From External Customers And Long Lived Assets [Line Items]
Total revenue									$ 538	$ 462	$ 341

Segment and Geographic Information - Property and Equipment, Net (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Revenues From External Customers And Long Lived Assets [Line Items]
Property and equipment, net	$ 247	$ 195
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Property and equipment, net	217	170
All Other Countries
Revenues From External Customers And Long Lived Assets [Line Items]
Property and equipment, net	$ 30	$ 25

Interest Income and Other, Net - Summary of Interest Income and Other, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Income And Expenses [Abstract]
Net loss, realized and unrealized, on foreign exchange and foreign currency derivative contracts and other, net	$ (4)	$ (10)	$ (2)
Interest income	1	1	$ 2
Gain on sale of business	20
Total	$ 17	$ (9)

Quarterly Financial Information - Summary of Selected Unaudited Financial Information (Detail) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Year ended December 31, 2015

$ 309

$ 415

$ 405

$ 363

$ 288

$ 354

$ 323

$ 281

$ 1,492

$ 1,246

$ 945

Operating income (loss)

(25)

^[1]

100

232

340

294

Diluted earnings per share

$ 3

$ 74

$ 58

$ 63

$ 36

$ 54

$ 68

$ 198

$ 226

$ 205

Basic earnings per share

$ 0.02

^[2]

$ 0.51

^[2]

$ 0.40

^[2]

$ 0.44

^[2]

$ 0.25

^[2]

$ 0.38

^[2]

$ 0.48

^[2]

$ 0.48

^[2]

$ 1.38

$ 1.58

$ 1.44

$ 0.02

^[2]

$ 0.51

^[2]

$ 0.40

^[2]

$ 0.43

^[2]

$ 0.25

^[2]

$ 0.37

^[2]

$ 0.47

^[2]

$ 0.47

^[2]

$ 1.36

$ 1.55

$ 1.41

[1]	During the fourth quarter of 2015, we recognized an incremental $59 million charge over the third quarter of 2015, related to a non-cash charitable contribution recorded to general and administrative expense on our consolidated statement of operations. Refer to “Note 12 – Commitments and Contingencies” for a discussion of the Foundation.
[2]	Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share may not equal the total computed for the year.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.