General and administrative

$ 352

$ 363

Costs and expenses:

Cost of revenue

^[1]

Selling and marketing

^[2]

172

157

Technology and content

^[2]

^[2]

Depreciation

Amortization of intangible assets

Total costs and expenses:

310

273

Interest income and other, net

Other income (expense):

Interest expense

(4)

(2)

(2)

Total other expense, net

(4)

Income before income taxes

Provision for income taxes

(11)

(23)

Net income

$ 27

$ 63

Earnings per share attributable to common stockholders (Note 11):

Basic

$ 0.19

$ 0.44

Diluted

$ 0.18

$ 0.43

Weighted average common shares outstanding (Note 11):

Basic

145,445

143,145

Diluted

146,903

145,872

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

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Costs and expenses:
Amortization of intangible assets	$ 8	$ 7
Depreciation	16	14
Amortization adjustment	13	11
Stock-based compensation:
Stock-based compensation	19	16
Selling and Marketing
Stock-based compensation:
Stock-based compensation	4	4
Technology and Content
Stock-based compensation:
Stock-based compensation	9	6
General and Administrative
Stock-based compensation:
Stock-based compensation	6	6
Acquired technology
Costs and expenses:
Amortization of intangible assets	2	2
Website development costs
Costs and expenses:
Depreciation	$ 11	$ 9

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

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Statement Of Income And Comprehensive Income [Abstract]

Net income

$ 27

$ 63

Other comprehensive income (loss):

Foreign currency translation adjustments

^[1]

(28)

Total other comprehensive income (loss)

(28)

Comprehensive income

$ 36

$ 35

[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.

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

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents (Note 4)	$ 653	$ 614
Short-term marketable securities (Note 4)	39	47
Accounts receivable, net of allowance for doubtful accounts of $6 and $6, respectively	244	180
Prepaid expenses and other current assets	28	24
Total current assets	964	865
Long-term marketable securities (Note 4)	17	37
Property and equipment, net of accumulated depreciation of $104 and $88, respectively	252	247
Intangible assets, net of accumulated amortization of $61 and $52, respectively	172	176
Goodwill	737	732
Other long-term assets	72	71
TOTAL ASSETS	2,214	2,128
Current liabilities:
Accounts payable	15	10
Deferred merchant payables	179	105
Deferred revenue	93	64
Current portion of debt (Note 5)	1	1
Taxes payable	10	9
Accrued expenses and other current liabilities (Note 8)	134	123
Total current liabilities	432	312
Deferred income taxes, net	16	15
Other long-term liabilities	192	189
Long-term debt (Note 5)	110	200
Total Liabilities	$ 750	$ 716
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value Authorized shares: 100,000,000 Shares issued and outstanding: 0 and 0
Additional paid-in capital	$ 758	$ 741
Retained earnings	853	826
Accumulated other comprehensive income (loss)	(54)	(63)
Treasury stock-common stock, at cost, 1,417,208 and 1,393,131 shares, respectively	(93)	(92)
Total Stockholders’ Equity	1,464	1,412
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,214	$ 2,128

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Allowance for doubtful accounts	$ 6	$ 6
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	134,295,396	133,836,242
Common stock, shares outstanding	132,878,188	132,443,111
Treasury stock, shares	1,417,208	1,393,131
Property and equipment, accumulated depreciation	$ 104	$ 88
Intangible assets, accumulated amortization	$ 61	$ 52
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

Condensed Consolidated Statement of Changes in Stockholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Millions	Total	Class B Common Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance at Dec. 31, 2015	$ 1,412			$ 741	$ 826	$ (63)	$ (92)
Beginning balance, shares at Dec. 31, 2015	132,443,111	12,799,999	133,836,242				(1,393,131)
Net income	$ 27				27
Other comprehensive income	9					9
Issuance of common stock related to exercises of options and vesting of RSUs	2			2
Issuance of common stock related to exercises of options and vesting of RSUs, shares			459,154
Repurchase of common stock	$ (1)						$ (1)
Repurchase of common stock, shares	(24,077)						(24,077)
Tax benefits on equity awards, net	$ 2			2
Minimum withholding taxes on net share settlements of equity awards	(9)			(9)
Stock-based compensation	22			22
Ending balance at Mar. 31, 2016	$ 1,464			$ 758	$ 853	$ (54)	$ (93)
Ending balance, shares at Mar. 31, 2016	132,878,188	12,799,999	134,295,396				(1,417,208)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities:
Net income	$ 27	$ 63
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment, including amortization of internal-use software and website development	16	14
Amortization of intangible assets	8	7
Stock-based compensation expense	19	16
Deferred tax expense	2	3
Excess tax benefits from stock-based compensation	(4)	(7)
Other, net		2
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable, prepaid expenses and other assets	(65)	(71)
Accounts payable, accrued expenses and other liabilities	14	4
Deferred merchant payables	72	60
Income taxes, net	1	(13)
Deferred revenue	30	21
Net cash provided by operating activities	120	99
Investing activities:
Capital expenditures, including internal-use software and website development	(17)	(31)
Acquisitions, net of cash acquired		(5)
Purchases of marketable securities	(16)	(32)
Sales of marketable securities	33	25
Maturities of marketable securities	11	9
Net cash provided by (used in) investing activities	11	(34)
Financing activities:
Repurchase of common stock	(1)
Proceeds from credit facilities		2
Principal payments on term loan		(10)
Payments to credit facilities	(90)
Proceeds from exercise of stock options	2	8
Payment of minimum withholding taxes on net share settlements of equity awards	(9)	(13)
Excess tax benefits from stock-based compensation	4	7
Other financing activities, net		3
Net cash used in financing activities	(94)	(3)
Effect of exchange rate changes on cash and cash equivalents	2	(12)
Net increase in cash and cash equivalents	39	50
Cash and cash equivalents at beginning of period	614	455
Cash and cash equivalents at end of period	$ 653	505
Supplemental disclosure of non-cash investing and financing activities:
Capitalization of construction in-process related to build to suit lease obligation		4
Capital expenditures incurred but not yet paid primarily related to build to suit lease		$ 8

Business Description and Basis of Presentation	3 Months Ended
Business Description and Basis of Presentation	Mar. 31, 2016
Accounting Policies [Abstract]
Business Description and Basis of Presentation	NOTE 1: BUSINESS DESCRIPTION AND BASIS OF PRESENTATION We refer to TripAdvisor, Inc. and our wholly-owned subsidiaries as “TripAdvisor,” “the Company,” “us,” “we” and “our” in these notes to the unaudited condensed consolidated financial statements. 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, flights, cruises, vacation rentals, activities and attractions, and restaurant reservations. Our flagship brand is TripAdvisor. TripAdvisor-branded websites include tripadvisor.com in the United States and localized versions of the website in 47 markets 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 have two reportable segments: Hotel and Non-Hotel. In the first quarter of 2016, we renamed our “Other” reportable segment “Non-Hotel.” This change had no effect on our consolidated financial statements or to previously reported segment information, as there was no change in the composition of our operating or reportable segments. 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 10 — Segment Information,” in these notes to our unaudited condensed consolidated financial statements. We derive the substantial portion of our revenue from our Hotel segment, through the sale of advertising, primarily through click-based advertising and commission-based transactions via our instant booking feature and, to a lesser extent, display-based advertising, subscription-based hotel advertising, room reservations sold through our websites, and from content licensing. Our Non-Hotel segment consists of our Vacation Rentals, Restaurants and Attractions businesses. We derive revenue from our Non-Hotel segment from subscription and commission-based transaction offerings from our Vacation Rental business; destination activities primarily sold through Viator; and online restaurant reservations booked primarily through thefork.com. Basis of Presentation The accompanying unaudited condensed consolidated financial statements present our results of operations, financial position and cash flows on a consolidated basis. The accompanying unaudited condensed 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. All inter-company accounts and transactions have been eliminated in consolidation. One of our subsidiaries that operates in China has a variable interest 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 activity of this affiliate. Our variable interest entity is not material for all periods presented. We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, all adjustments necessary for a fair presentation of the results of the interim period have been included. These adjustments consist of normal recurring items. We prepared the unaudited condensed consolidated financial statements following the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, we have condensed or omitted certain footnotes or other financial information that are normally required by GAAP for annual financial statements. Our interim unaudited condensed consolidated financial statements are not necessarily indicative of results that may be expected for any other interim period or for the full year. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015, previously filed with the SEC. The condensed consolidated balance sheet as of December 31, 2015 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures including notes required by GAAP. Accounting Estimates We use estimates and assumptions in the preparation of our unaudited condensed 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 unaudited condensed 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 unaudited condensed consolidated financial statements include: (i) recognition and recoverability of goodwill, intangible and other long-lived assets; (ii) accounting for income taxes; and (iii) stock-based compensation. 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	3 Months Ended
Significant Accounting Policies	Mar. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES New Accounting Pronouncements Not Yet Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on stock compensation which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. In February 2016, the FASB issued new accounting guidance on leases that is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new guidance will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the effect that the updated standard will have 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. This new guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In March 2016, the FASB issued additional guidance which clarifies principal versus agent considerations and in April 2016, the FASB issued further guidance which clarifies the identification of performance obligations and the implementation guidance for licensing. 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 are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. Recently Adopted Accounting Pronouncements In September 2015, the 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. The Company adopted this guidance in the first quarter of 2016. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. There have been no material changes to our significant accounting policies since December 31, 2015. For additional information about our critical accounting policies and estimates, refer to “Note 2— Significant Accounting Policies”, in the notes to our consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2015.

Stock Based Awards and Other Equity Instruments

3 Months Ended

Mar. 31, 2016

Stock Based Awards and Other Equity Instruments

NOTE 3: STOCK BASED AWARDS AND OTHER EQUITY INSTRUMENTS

Stock-Based Compensation Expense

The following table presents the amount of stock-based compensation expense related to stock-based awards, primarily stock options and restricted stock units (“RSUs”), on our unaudited condensed consolidated statements of operations during the periods presented:

	Three months ended
	March 31,
	2016			2015
	(in millions)
Selling and marketing	$	4		$	4
Technology and content		9			6
General and administrative		6			6
Total stock-based compensation		19			16
Income tax benefit from stock-based compensation		(7	)		(6	)
Total stock-based compensation, net of tax effect	$	12		$	10

Stock-Based Award Activity and Valuation

2016 Stock Option Activity

During the three months ended March 31, 2016, we have issued 629,896 service-based non-qualified stock options under the Company’s 2011 Stock and Annual Incentive Plan, as amended (the “2011 Plan”). These stock options have a term of ten years from the date of grant and vest equitably over a four-year requisite service period.

A summary of the status and activity for stock option awards relating to our common stock for the three months ended March 31, 2016, 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 January 1, 2016		5,720		$	53.71
Granted		630			63.33
Exercised (1)		(327	)		25.14
Cancelled or expired		(74	)		60.62
Options outstanding at March 31, 2016		5,949		$	56.22		5.9	$	93
Exercisable as of March 31, 2016		3,076		$	41.91		4.8	$	83
Vested and expected to vest after March 31, 2016		5,799		$	55.83		5.8	$	92

(1)

Inclusive of 118,491 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 that had been convertible under stock options that were withheld under net share settlement remain in the authorized but unissued pool under the 2011 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 unaudited condensed consolidated statements of cash flows.

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 The NASDAQ Global Select Market as of March 31, 2016 was $66.50. The total intrinsic value of stock options exercised for the three months ended March 31, 2016 and 2015 was $12 million and $31 million, respectively.

The fair value of stock option grants under the 2011 Plan 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:

	Three months ended
	March 31,
	2016			2015
Risk free interest rate		1.28	%		1.51	%
Expected term (in years)		5.18			5.21
Expected volatility		41.64	%		41.86	%
Expected dividend yield	— %			— %

The weighted-average grant date fair value of options granted was $24.41 and $33.79 for the three months ended March 31, 2016 and 2015, respectively. The total fair value of stock options vested for the three months ended March 31, 2016 and 2015 was $23 million and $25 million, respectively.

2016 RSU Activity

During the three months ended March 31, 2016, we issued 1,503,603 RSUs under the 2011 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 during the three months ended March 31, 2016:

				Weighted
				Average
				Grant-		Aggregate
	RSUs			Date Fair		Intrinsic
	Outstanding			Value Per Share		Value
	(in thousands)					(in millions)
Unvested RSUs outstanding as of January 1, 2016		1,750		$	79.02
Granted		1,504			63.73
Vested and released (1)		(365	)		71.37
Cancelled		(50	)		75.50
Unvested RSUs outstanding as of March 31, 2016		2,839		$	71.95	$	189
Expected to vest after March 31, 2016		2,415		$	72.21	$	161

(1)

Inclusive of 113,117 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 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 unaudited condensed consolidated statements of cash flows.

Unrecognized Stock-Based Compensation

A summary of our remaining unrecognized stock-based compensation expense, net of estimated forfeitures, and the weighted average remaining amortization period at March 31, 2016 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)	$	61	$	157
Weighted average period remaining (in years)		2.7		3.2

Financial Instruments

3 Months Ended

Mar. 31, 2016

Investments All Other Investments [Abstract]

Financial Instruments

NOTE 4: 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 for the periods presented (in millions):

	March 31, 2016
									Cash and		Short-Term		Long-Term
	Amortized		Unrealized		Unrealized		Fair		Cash		Marketable		Marketable
	Cost		Gains		Losses		Value		Equivalents		Securities		Securities
Cash	$	623	$	-	$	-	$	623	$	623	$	-	$	-
Level 1:
Money market funds		29		-		-		29		29		-		-
Level 2:
U.S. agency securities		10		-		-		10		-		10		-
U.S. treasury securities		6		-		-		6		-		6		-
Certificates of deposit		4		-		-		4		-		2		2
Commercial paper		1		-		-		1		1		-		-
Corporate debt securities		36		-		-		36		-		21		15
Subtotal		57		-		-		57		1		39		17
Total	$	709	$	-	$	-	$	709	$	653	$	39	$	17

	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

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 March 31, 2016 and December 31, 2015, 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 three months ended March 31, 2016 and 2015, respectively. Realized gains and losses on the sale of securities are determined by specific identification of each security’s cost basis. 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 March 31, 2016.

Derivative Financial Instruments

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. We do not use derivatives for trading or speculative purposes.

Our current forward contracts are not designated as hedges and have current maturities of less than 90 days. We account for our derivative instruments as either assets or liabilities and carry them at fair value. Consequently, any gain or loss resulting from the change in fair value was recognized in our unaudited condensed consolidated statements of operations. We recorded a net loss of $1 million and a net gain of $3 million for the three months ended March 31, 2016 and 2015, respectively, related to our settled and outstanding forward contracts in our unaudited condensed consolidated statements of operations in “Interest income and other, net.”

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

	Balance Sheet Caption	March 31, 2016
		Fair Value of Derivative (2)				U.S. Dollar Notional
		Asset		Liability
		(in millions)
Foreign exchange-forward contracts (1)	Accrued expenses and other current liabilities	$	-	$	1	$	26

	Balance Sheet Caption	December 31, 2015
		Fair Value of Derivative (2)				U.S. Dollar Notional
		Asset		Liability
		(in millions)
Foreign exchange-forward contracts (1)	Prepaid expenses and other current assets	$	-	$	-	$	25

(1)

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

(2)

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 unaudited condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015, 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 March 31, 2016 and December 31, 2015.

Debt

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Debt

NOTE 5: DEBT

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

	March 31,		December 31,
	2016		2015
	(in millions)
Short-Term Debt:
Chinese Credit Facilities	$	1	$	1
Total Short-Term Debt	$	1	$	1

Long-Term Debt:
2015 Credit Facility	$	110	$	200
Total Long-Term Debt	$	110	$	200

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. Principal payments aggregating $10 million were made during the three months ended March 31, 2015. During the three months ended March 31, 2015, we recorded total interest and commitment fees on our 2011 Credit Facility of $1 million to interest expense on our unaudited condensed consolidated statements of operations.

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 2015 Credit Facility in U.S dollars, Euros and British pound sterling with a term of five years expiring June 26, 2020.

There is no specific repayment date prior to the five-year maturity date for our outstanding borrowings under the 2015 Credit Facility. During the three months ended March 31, 2016, the Company 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 March 31, 2016, we had issued $2 million of outstanding letters of credit under the 2015 Credit Facility.

During the three months ended March 31, 2016, we recorded total interest and commitment fees on our 2015 Credit Facility of $2 million to interest expense on our unaudited condensed consolidated statements of operations. Unpaid interest and commitment fees as of March 31, 2016 were not material.

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 March 31, 2016, we are in compliance with all of our debt covenants.

Chinese Credit Facilities

In addition to our borrowings under the 2015 Credit Facility, we maintain our Chinese Credit Facilities. As of March 31, 2016 and December 31, 2015, we had short-term borrowings outstanding of $1 million.

We are parties to 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 rate based on 100% of the People’s Bank of China’s base rate, which was 4.35% as of March 31, 2016. As of March 31, 2016, we had $1 million of outstanding borrowings from the Chinese Credit Facility—BOA.

We are also parties to 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 bears interest at a rate based on 100% of the People’s Bank of China’s base rate, which was 4.35% as of March 31, 2016. As of March 31, 2016, there are no outstanding borrowings under our Chinese Credit Facility – JPM.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 6: INCOME TAXES Each interim period is considered an integral part of the annual period and, accordingly, we measure our tax expense using an estimated annual effective tax rate. An enterprise is required, at the end of each interim reporting period, to make its best estimate of the annual effective tax rate for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, as adjusted for discrete taxable events that occur during the interim period. Our effective tax rate for the three months ended March 31, 2016 and 2015 was 28.9% and 26.7%, respectively. For the three months ended March 31, 2016, the effective tax rate is less than the federal statutory rate primarily due to earnings in jurisdictions outside the United States, where our effective tax rate is lower, which was partially offset by state income taxes, non-deductible stock compensation and accruals on uncertain tax positions. The change in the effective tax rate for 2016 compared to the 2015 rate was primarily due to a change in jurisdictional earnings. Our policy is to recognize accrued interest and penalties related to unrecognized tax benefits and income tax liabilities as part of our income tax expense. As of March 31, 2016, accrued interest is $4 million, net of federal benefit, and no penalties have been accrued. We do not anticipate any material releases in the next twelve months. By virtue of previously filed consolidated income tax returns filed with Expedia, we are currently under an Internal Revenue Service (“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 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 March 31, 2016, 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 March 31, 2016, 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 IRS. This opinion was submitted as a final decision under Tax Court 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 appealed the Court decision on February 19, 2016. 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 recorded a tax benefit of $13 million in its consolidated statement of operations for the year ended December 31, 2015 and an additional $1 million during the three months ended March 31, 2016. The Company will continue to monitor this matter and related potential impacts to its consolidated financial statements.

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	NOTE 7: STOCKHOLDERS’ EQUITY 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 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. During the three months ended March 31, 2016, we repurchased 24,077 shares of outstanding common stock under the share repurchase program at an aggregate cost of $1 million, or an average share price of $59.85. As of March 31, 2016, we have repurchased 2,144,786 shares of outstanding common stock under the share repurchase program at an aggregate cost of $147 million. As of March 31, 2016, we have a remaining amount from the authorized share repurchase program granted by the Board of Directors of $103 million to repurchase shares of our common stock.

Accrued Expenses and Other Current Liabilities

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.

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+ Details

Accrued Expenses and Other Current Liabilities

3 Months Ended

Mar. 31, 2016

Payables And Accruals [Abstract]

NOTE 8: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

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

	March 31, 2016		December 31, 2015
	(in millions)
Accrued salary, bonus, and related benefits	$	32	$	47
Accrued marketing costs		59		43
Other		43		33
Total	$	134	$	123

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 9: COMMITMENTS AND CONTINGENCIES There have been no material changes to our commitments and contingencies since December 31, 2015. Refer to “Note 12— Commitments and Contingencies,” in the notes to our consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2015. Legal Proceedings In the ordinary course of business, we 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 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 6— Income Taxes” above for further information on potential contingencies surrounding income taxes.

Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

NOTE 10: SEGMENT INFORMATION

Our reporting structure includes two reportable segments: Hotel and Non-Hotel.

Hotel

Our Hotel segment includes revenue generated from services related to hotels, including click-based advertising revenue from making hotel room night reservations available for price comparison and commission-based transactions via our instant booking feature, as well as display-based advertising, subscription-based hotel advertising (or Business Listings), room reservations sold through our websites, and from content licensing. Our Hotel segment also includes click-based advertising revenue from making airline reservations and cruise reservations available for price comparison and booking. Our chief operating decision maker is also the Hotel segment manager.

Non-Hotel

Our Non-Hotel segment consists of the aggregation of three operating segments, our Attractions, Restaurants and Vacation Rentals businesses.

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 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. Thefork.com also helps 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 and cottages. 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 Non-Hotel 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.

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) non-recurring expenses. Adjusted EBITDA is the primary metric by which management evaluates the performance of its business and on which internal budgets are based. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis. We believe by excluding certain non-cash expenses, such as stock-based compensation, stock-settled obligations, asset impairments, and non-recurring expenses, Adjusted EBITDA corresponds more closely to the cash that operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced.

The following tables present our segment information for the three months ended March 31, 2016 and 2015. 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, capital expenditures and related depreciation expense by segment as our chief operating decision maker does not evaluate operating segments using this information. We also do not regularly provide such information by segment to our chief operating decision maker. 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.

	Three months ended March 31, 2016
	Hotel		Non-Hotel			Corporate and Unallocated			Total
	(in millions)
Revenue	$	303	$	49		$	-		$	352
Adjusted EBITDA (1)	106			(21	)		-			85
Depreciation		-		-			(16	)		(16	)
Amortization of intangible assets		-		-			(8	)		(8	)
Stock-based compensation		-		-			(19	)		(19	)
Operating income (loss)	$	106	$	(21	)	$	(43	)		42
Other expense, net										(4	)
Income before income taxes										38
Provision for income taxes										(11	)
Net income										27

	Three months ended March 31, 2015
	Hotel		Non-Hotel			Corporate and Unallocated			Total
	(in millions)
Revenue	$	320	$	43		$	-		$	363
Adjusted EBITDA (1)	132			(5	)		-			127
Depreciation		-		-			(14	)		(14	)
Amortization of intangible assets		-		-			(7	)		(7	)
Stock-based compensation		-		-			(16	)		(16	)
Operating income (loss)	$	132	$	(5	)	$	(37	)		90
Other expense, net										(4	)
Income before income taxes										86
Provision for income taxes										(23	)
Net income										63



(1)	Includes allocated general and administrative expenses in our Hotel segment of $22 million and $20 million; and in our Non-Hotel segment of $9 million and $6 million for the three months ended March 31, 2016 and 2015, respectively.

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.

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+ Details

Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 11: EARNINGS PER SHARE

Basic Earnings Per Share Attributable to Common Stockholders

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 Attributable to Common Stockholders

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:

	Three months ended March 31,
	2016		2015
Numerator:
Net income	$	27	$	63
Denominator:
Weighted average shares used to compute Basic EPS		145,445		143,145
Weighted average effect of dilutive securities:
Stock options		1,185		2,417
RSUs		273		310
Weighted average shares used to compute Diluted EPS		146,903		145,872
Basic EPS	$	0.19	$	0.44
Diluted EPS	$	0.18	$	0.43

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

	Three months ended March 31,
	2016(1)		2015(1)
Stock options		2,871		2,141
RSUs		887		840
Total		3,758		2,981

(1)

These totals do not include 12,799 performance based RSUs and 66,666 performance based options for the three months ended March 31, 2016 and 2015, respectively, representing the right to acquire the equivalent number of shares of common stock for which all targets required to trigger vesting have 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.

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 12: RELATED PARTY TRANSACTIONS We consider Liberty TripAdvisor Holdings, Inc. (“LTRIP”) a related party. As of March 31, 2016, 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. 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 56.0% of our voting power. We had no related party transactions with LTRIP during the three months ended March 31, 2016 and 2015.

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.

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements present our results of operations, financial position and cash flows on a consolidated basis. The accompanying unaudited condensed 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. All inter-company accounts and transactions have been eliminated in consolidation. One of our subsidiaries that operates in China has a variable interest 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 activity of this affiliate. Our variable interest entity is not material for all periods presented. We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, all adjustments necessary for a fair presentation of the results of the interim period have been included. These adjustments consist of normal recurring items. We prepared the unaudited condensed consolidated financial statements following the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, we have condensed or omitted certain footnotes or other financial information that are normally required by GAAP for annual financial statements. Our interim unaudited condensed consolidated financial statements are not necessarily indicative of results that may be expected for any other interim period or for the full year. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015, previously filed with the SEC. The condensed consolidated balance sheet as of December 31, 2015 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures including notes required by GAAP.
Accounting Estimates	Accounting Estimates We use estimates and assumptions in the preparation of our unaudited condensed 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 unaudited condensed 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 unaudited condensed consolidated financial statements include: (i) recognition and recoverability of goodwill, intangible and other long-lived assets; (ii) accounting for income taxes; and (iii) stock-based compensation.
Seasonality	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.
New Accounting Pronouncements Not Yet Adopted	New Accounting Pronouncements Not Yet Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance on stock compensation which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures. In February 2016, the FASB issued new accounting guidance on leases that is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new guidance will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the effect that the updated standard will have 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. This new guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In March 2016, the FASB issued additional guidance which clarifies principal versus agent considerations and in April 2016, the FASB issued further guidance which clarifies the identification of performance obligations and the implementation guidance for licensing. 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 are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosures.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In September 2015, the 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. The Company adopted this guidance in the first quarter of 2016. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. There have been no material changes to our significant accounting policies since December 31, 2015. For additional information about our critical accounting policies and estimates, refer to “Note 2— Significant Accounting Policies”, in the notes to our consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2015.

Stock Based Awards and Other Equity Instruments (Tables)

3 Months Ended

Mar. 31, 2016

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

	Three months ended
	March 31,
	2016			2015
	(in millions)
Selling and marketing	$	4		$	4
Technology and content		9			6
General and administrative		6			6
Total stock-based compensation		19			16
Income tax benefit from stock-based compensation		(7	)		(6	)
Total stock-based compensation, net of tax effect	$	12		$	10

Summary of Stock Option

A summary of the status and activity for stock option awards relating to our common stock for the three months ended March 31, 2016, 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 January 1, 2016		5,720		$	53.71
Granted		630			63.33
Exercised (1)		(327	)		25.14
Cancelled or expired		(74	)		60.62
Options outstanding at March 31, 2016		5,949		$	56.22		5.9	$	93
Exercisable as of March 31, 2016		3,076		$	41.91		4.8	$	83
Vested and expected to vest after March 31, 2016		5,799		$	55.83		5.8	$	92

(1)

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

	Three months ended
	March 31,
	2016			2015
Risk free interest rate		1.28	%		1.51	%
Expected term (in years)		5.18			5.21
Expected volatility		41.64	%		41.86	%
Expected dividend yield	— %			— %

Summary of RSU Activity

The following table presents a summary of our RSU activity during the three months ended March 31, 2016:

				Weighted
				Average
				Grant-		Aggregate
	RSUs			Date Fair		Intrinsic
	Outstanding			Value Per Share		Value
	(in thousands)					(in millions)
Unvested RSUs outstanding as of January 1, 2016		1,750		$	79.02
Granted		1,504			63.73
Vested and released (1)		(365	)		71.37
Cancelled		(50	)		75.50
Unvested RSUs outstanding as of March 31, 2016		2,839		$	71.95	$	189
Expected to vest after March 31, 2016		2,415		$	72.21	$	161

(1)

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

	Stock
	Options		RSUs
Unrecognized compensation expense (net of forfeitures)	$	61	$	157
Weighted average period remaining (in years)		2.7		3.2

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Investments All Other Investments [Abstract]

Schedule of Cash, Cash Equivalents and Marketable Securities

	March 31, 2016
									Cash and		Short-Term		Long-Term
	Amortized		Unrealized		Unrealized		Fair		Cash		Marketable		Marketable
	Cost		Gains		Losses		Value		Equivalents		Securities		Securities
Cash	$	623	$	-	$	-	$	623	$	623	$	-	$	-
Level 1:
Money market funds		29		-		-		29		29		-		-
Level 2:
U.S. agency securities		10		-		-		10		-		10		-
U.S. treasury securities		6		-		-		6		-		6		-
Certificates of deposit		4		-		-		4		-		2		2
Commercial paper		1		-		-		1		1		-		-
Corporate debt securities		36		-		-		36		-		21		15
Subtotal		57		-		-		57		1		39		17
Total	$	709	$	-	$	-	$	709	$	653	$	39	$	17

	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

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

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

	Balance Sheet Caption	March 31, 2016
		Fair Value of Derivative (2)				U.S. Dollar Notional
		Asset		Liability
		(in millions)
Foreign exchange-forward contracts (1)	Accrued expenses and other current liabilities	$	-	$	1	$	26

	Balance Sheet Caption	December 31, 2015
		Fair Value of Derivative (2)				U.S. Dollar Notional
		Asset		Liability
		(in millions)
Foreign exchange-forward contracts (1)	Prepaid expenses and other current assets	$	-	$	-	$	25

(1)

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

(2)

Debt (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Debt

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

	March 31,		December 31,
	2016		2015
	(in millions)
Short-Term Debt:
Chinese Credit Facilities	$	1	$	1
Total Short-Term Debt	$	1	$	1

Long-Term Debt:
2015 Credit Facility	$	110	$	200
Total Long-Term Debt	$	110	$	200

Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2016

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:

	March 31, 2016		December 31, 2015
	(in millions)
Accrued salary, bonus, and related benefits	$	32	$	47
Accrued marketing costs		59		43
Other		43		33
Total	$	134	$	123

Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Summary of Segment Information

The following tables present our segment information for the three months ended March 31, 2016 and 2015.

	Three months ended March 31, 2016
	Hotel		Non-Hotel			Corporate and Unallocated			Total
	(in millions)
Revenue	$	303	$	49		$	-		$	352
Adjusted EBITDA (1)	106			(21	)		-			85
Depreciation		-		-			(16	)		(16	)
Amortization of intangible assets		-		-			(8	)		(8	)
Stock-based compensation		-		-			(19	)		(19	)
Operating income (loss)	$	106	$	(21	)	$	(43	)		42
Other expense, net										(4	)
Income before income taxes										38
Provision for income taxes										(11	)
Net income										27

	Three months ended March 31, 2015
	Hotel		Non-Hotel			Corporate and Unallocated			Total
	(in millions)
Revenue	$	320	$	43		$	-		$	363
Adjusted EBITDA (1)	132			(5	)		-			127
Depreciation		-		-			(14	)		(14	)
Amortization of intangible assets		-		-			(7	)		(7	)
Stock-based compensation		-		-			(16	)		(16	)
Operating income (loss)	$	132	$	(5	)	$	(37	)		90
Other expense, net										(4	)
Income before income taxes										86
Provision for income taxes										(23	)
Net income										63



(1)	Includes allocated general and administrative expenses in our Hotel segment of $22 million and $20 million; and in our Non-Hotel segment of $9 million and $6 million for the three months ended March 31, 2016 and 2015, respectively.

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Reconciliation of Weighted Average Number of Shares of Common Stock Outstanding

	Three months ended March 31,
	2016		2015
Numerator:
Net income	$	27	$	63
Denominator:
Weighted average shares used to compute Basic EPS		145,445		143,145
Weighted average effect of dilutive securities:
Stock options		1,185		2,417
RSUs		273		310
Weighted average shares used to compute Diluted EPS		146,903		145,872
Basic EPS	$	0.19	$	0.44
Diluted EPS	$	0.18	$	0.43

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

	Three months ended March 31,
	2016(1)		2015(1)
Stock options		2,871		2,141
RSUs		887		840
Total		3,758		2,981

(1)

Business Description and Basis of Presentation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2016 Market Brand Segment
Accounting Policies [Abstract]
Number of markets with localized versions of website \| Market	47
Number of other media brands with websites \| Brand	23
Number of reportable segment \| Segment	2

Stock Based Awards and Other Equity Instruments - Amount of Stock-Based Compensation Expense Related to Stock-Based Awards, Primarily Stock Options and RSUs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 19	$ 16
Income tax benefit from stock-based compensation	(7)	(6)
Total stock-based compensation, net of tax effect	12	10
Selling and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	4	4
Technology and Content
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	9	6
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 6	$ 6

Stock Based Awards and Other Equity Instruments - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of stock options issued	630,000
RSU
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSU's issued under incentive plan	1,504,000
2011 Plan \| Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of stock options issued	629,896
Term of stock options, granted	10 years
Stock awards vest period	4 years
Closing stock price	$ 66.50
Total intrinsic value	$ 12	$ 31
Weighted-average grant date fair value of options granted	$ 24.41	$ 33.79
Total fair value of stock options vested	$ 23	$ 25
2011 Plan \| RSU
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock awards vest period	4 years
RSU's issued under incentive plan	1,503,603

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

3 Months Ended

Mar. 31, 2016

USD ($)

$ / shares

Options Outstanding

Options Outstanding, Beginning balance | shares

5,720

Options Outstanding, Granted | shares

630

Options Outstanding, Exercised | shares

(327)

^[1]

Options Outstanding, Cancelled or expired | shares

(74)

Options Outstanding, Ending balance | shares

5,949

Options Outstanding, Exercisable | shares

3,076

Options Outstanding, Vested and expected to vest | shares

5,799

Weighted Average Exercise Price per share

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

$ 53.71

Options Granted, Weighted Average Exercise Price | $ / shares

63.33

Options Exercised, Weighted Average Exercise Price | $ / shares

25.14

^[1]

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

60.62

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

56.22

Options Exercisable, Weighted Average Exercise Price | $ / shares

41.91

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

$ 55.83

Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value

Options Outstanding, Weighted Average Remaining Contractual Life

5 years 10 months 24 days

Options Exercisable, Weighted Average Remaining Contractual Life

4 years 9 months 18 days

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

5 years 9 months 18 days

Options Outstanding, Aggregate Intrinsic Value | $

$ 93

Options Exercisable, Aggregate Intrinsic Value | $

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

$ 92

[1]

Stock Based Awards and Other Equity Instruments - Summary of Stock Option (Parenthetical) (Details)	3 Months Ended
	Mar. 31, 2016 shares
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options non converted into shares due to net share settlement	118,491

Stock Based Awards and Other Equity Instruments - Weighted-Average Assumptions of Estimated Fair Value of Stock Option Grants (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk free interest rate	1.28%	1.51%
Expected term (in years)	5 years 2 months 5 days	5 years 2 months 16 days
Expected volatility	41.64%	41.86%
Expected dividend yield	0.00%	0.00%

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

3 Months Ended

Mar. 31, 2016

USD ($)

$ / shares

RSUs outstanding

Unvested RSUs outstanding, Beginning balance | shares

1,750

Unvested RSUs, Granted | shares

1,504

Unvested RSUs, Vested and released | shares

(365)

^[1]

Unvested RSUs, Cancelled | shares

(50)

Unvested RSUs outstanding, Ending balance | shares

2,839

RSUs outstanding, vested and expected to vest | shares

2,415

Weighted Average Grant-Date Fair Value Per Share

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

$ 79.02

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

63.73

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

71.37

^[1]

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

75.50

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

71.95

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

$ 72.21

Aggregate Intrinsic Value

Unvested RSUs outstanding, Aggregate Intrinsic Value | $

$ 189

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

$ 161

[1]

Stock Based Awards and Other Equity Instruments - Summary of RSU Activity (Parenthetical) (Details)	3 Months Ended
	Mar. 31, 2016 shares
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs withheld to satisfy minimum tax withholding requirements	113,117

Stock Based Awards and Other Equity Instruments - Summary of Unrecognized Stock-Based Compensation Expense, Net of Estimated Forfeitures and Weighted Average Period Remaining (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense (net of forfeitures), Stock Options	$ 61
Period of recognition (in years)	2 years 8 months 12 days
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Period of recognition (in years)	3 years 2 months 12 days
Unrecognized compensation expense (net of forfeitures), RSUs	$ 157

Financial Instruments - Schedule of Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 653	$ 614
Short-Term Marketable Securities	39	47
Long-Term Marketable Securities	17	37
Cash	623	598
Cash, cash equivalents and marketable securities, Amortized Cost	709	698
Cash, cash equivalents and marketable securities, Fair Value	709	698
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash equivalents	29	11
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	57	89
Fair Value	57	89
Cash and cash equivalents	1	5
Short-Term Marketable Securities	39	47
Long-Term Marketable Securities	17	37
Level 2 \| U.S. Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	10	13
Fair Value	10	13
Short-Term Marketable Securities	10	9
Long-Term Marketable Securities		4
Level 2 \| US treasury securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	6	16
Fair Value	6	16
Cash and cash equivalents		4
Short-Term Marketable Securities	6	12
Level 2 \| Certificates of Deposit
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	4	5
Fair Value	4	5
Short-Term Marketable Securities	2	4
Long-Term Marketable Securities	2	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
Cash and cash equivalents	1
Short-Term Marketable Securities		1
Level 2 \| Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized Cost	36	54
Fair Value	36	54
Cash and cash equivalents		1
Short-Term Marketable Securities	21	21
Long-Term Marketable Securities	$ 15	$ 32

Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
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
Net (loss) gain related to forward contracts	$ (1)	$ 3
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

Financial Instruments - Fair Value and Notional Principal Amounts of Outstanding or Unsettled Derivative Instruments (Details) - Prepaid Expenses and Other Current Assets - Not Designated as Hedging Instrument - Foreign Exchange-forward Contracts - USD ($)

Mar. 31, 2016

Dec. 31, 2015

Derivatives Fair Value [Line Items]

Fair Value of Derivative, Liability

^[1],[2]

$ 1,000,000

Foreign exchange-forward contracts

^[1]

$ 26,000,000

$ 25,000,000

[1]	Derivative contracts address foreign exchange fluctuations for the Euro versus the U.S. Dollar.
[2]	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.

Debt - Summary of Total Outstanding Debt (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Short-Term Debt:
Short-Term Debt	$ 1	$ 1
Long-Term Debt:
Long-Term Debt	110	200
Chinese Credit Facilities
Short-Term Debt:
Chinese Credit Facilities	1	1
2015 Credit Facility
Long-Term Debt:
2015 Credit Facility	$ 110	$ 200

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

The carrying value as of the balance sheet date of the noncurrent portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

Debt - Two Thousand Eleven Credit Facility - Additional Information (Details) - USD ($)			3 Months Ended
	Jun. 26, 2015	Dec. 20, 2011	Mar. 31, 2016	Mar. 31, 2015
Debt Instrument [Line Items]
Principal payments on long-term debt				$ 10,000,000
Total interest and commitments fees			$ 4,000,000	2,000,000
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
2011 Credit Facility
Debt Instrument [Line Items]
Maximum borrowing limits		$ 600,000,000
Total interest and commitments fees				$ 1,000,000
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 ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jun. 26, 2015
Debt Instrument [Line Items]
Total interest and commitments fees	$ 4,000,000	$ 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
Principal amount repaid	$ 90,000,000
Line Of Credit Facility Unused Capacity Commitment Fee Percentage	0.20%
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 \| GBP or 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 \| 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) - Chinese Credit Facilities $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2016 CNY (¥)	Dec. 31, 2015 USD ($)
Debt Instrument [Line Items]
Outstanding borrowings	$ 1		$ 1
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 rate based on 100% of the People’s Bank of China’s base rate, which was 4.35% as of March 31, 2016
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 bears interest at a rate based on 100% of the People’s Bank of China’s base rate, which was 4.35% as of March 31, 2016.

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Effective tax rate	28.90%	26.70%
Accrued interest	$ 4,000,000
Accrued penalties	0
Tax benefit from subsidiary	$ 1,000,000		$ 13,000,000

Stockholders' Equity - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2016	Feb. 15, 2013
Equity [Abstract]
Authorized the repurchase of shares of common stock			$ 250,000,000
Repurchase of common stock, shares	2,144,786	24,077
Aggregate cost of shares repurchased, common stock	$ 147,000,000	$ 1,000,000
Average price of shares repurchased, common stock		$ 59.85
Remaining authorized share repurchased amount	$ 103,000,000	$ 103,000,000

Accrued Expenses and Other Current Liabilities - Details of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Payables And Accruals [Abstract]
Accrued salary, bonus, and related benefits	$ 32	$ 47
Accrued marketing costs	59	43
Other	43	33
Total	$ 134	$ 123

Segment Information - Additional Information (Details)	3 Months Ended
Segment Information - Additional Information (Details)	Mar. 31, 2016 Segment
Segment Reporting Information [Line Items]
Number of reportable segment	2
Non-Hotel Segment
Segment Reporting Information [Line Items]
Number of Operating Segments	3

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

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Amortization of intangible assets

$ 352

$ 363

Adjusted EBITDA

^[1]

127

Depreciation

(16)

(14)

(8)

(7)

Stock-based compensation

(19)

(16)

Income before income taxes

Other expense, net

(4)

Provision for income taxes

(11)

(23)

Net income

Operating Segments | Hotel Segment

303

320

Adjusted EBITDA

^[1]

106

132

Operating Segments | Non-Hotel Segment

106

132

Adjusted EBITDA

^[1]

(21)

(5)

Corporate and Unallocated

(21)

(5)

Amortization of intangible assets

Depreciation

(16)

(14)

(8)

(7)

Stock-based compensation

(19)

(16)

$ (43)

$ (37)

[1]	Includes allocated general and administrative expenses in our Hotel segment of $22 million and $20 million; and in our Non-Hotel segment of $9 million and $6 million for the three months ended March 31, 2016 and 2015, respectively.

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

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

General and administrative expenses

^[1]

$ 37

$ 33

Operating Segments | Hotel Segment

General and administrative expenses

Operating Segments | Non-Hotel Segment