UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number:
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
400 1st Avenue
(Address of principal executive office) (Zip Code)
Registrant’s telephone number, including area code:
(
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol |
Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
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Outstanding Shares at November 2, 2020 |
Common Stock, $0.001 par value per share |
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Class B common stock, $0.001 par value per share |
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Tripadvisor, Inc.
Form 10-Q
For the Quarter Ended September 30, 2020
Table of Contents
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Page |
Part I—Financial Information
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Item 1. Unaudited Condensed Financial Statements
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3 |
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4 |
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Unaudited Condensed Consolidated Balance Sheets at September 30, 2020 and December 31, 2019 |
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6 |
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8 |
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Notes to Unaudited Condensed Consolidated Financial Statements |
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9 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. Quantitative and Qualitative Disclosures about Market Risk |
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48 |
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49 |
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
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61 |
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61 |
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61 |
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61 |
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62 |
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63 |
2
PART I – FINANCIAL INFORMATION
Item 1. Unaudited Condensed Consolidated Financial Statements
TRIPADVISOR, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
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Three months ended September 30, |
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Nine months ended September 30, |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenue (Note 3) |
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$ |
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$ |
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$ |
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$ |
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Costs and expenses: |
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Cost of revenue (1)(2) |
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Selling and marketing (2) |
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Technology and content (2) |
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General and administrative (2) |
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Depreciation and amortization |
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Impairment of goodwill (Note 7) |
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— |
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— |
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Restructuring and other related reorganization costs (Note 10) |
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— |
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— |
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— |
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Total costs and expenses: |
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Operating income (loss) |
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Other income (expense): |
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Interest expense |
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Interest income |
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Other income (expense), net (Note 14) |
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— |
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— |
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Total other income (expense), net |
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Income (loss) before income taxes |
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(Provision) benefit for income taxes (Note 9) |
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( |
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( |
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Net income (loss) |
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$ |
( |
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$ |
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$ |
( |
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$ |
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Earnings (loss) per share attributable to common stockholders (Note 4): |
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Basic |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
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Weighted average common shares outstanding (Note 4): |
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Basic |
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Diluted |
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(1) |
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Amortization of acquired technology included in amortization of intangible assets |
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$ |
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$ |
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$ |
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$ |
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Amortization of website development costs included in depreciation |
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$ |
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$ |
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$ |
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$ |
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(2) |
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Cost of revenue |
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$ |
— |
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$ |
— |
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$ |
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$ |
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Selling and marketing |
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$ |
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$ |
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$ |
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$ |
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Technology and content |
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$ |
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$ |
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$ |
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$ |
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General and administrative |
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$ |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
TRIPADVISOR, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2020 |
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2019 |
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2020 |
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2019 |
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Net income (loss) |
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$ |
( |
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$ |
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$ |
( |
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$ |
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Other comprehensive income (loss): |
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Foreign currency translation adjustments, net of tax (1) |
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( |
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Reclassification adjustment for net losses included in net income (loss) |
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— |
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— |
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— |
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Total other comprehensive income (loss), net of tax |
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( |
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( |
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Comprehensive income (loss) |
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$ |
( |
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$ |
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$ |
( |
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$ |
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(1) |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
TRIPADVISOR, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except number of shares and per share amounts)
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September 30, |
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December 31, |
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2020 |
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2019 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents (Note 6) |
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$ |
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$ |
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Accounts receivable and contract assets, net of allowance for credit losses of $ |
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Income taxes receivable |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net of accumulated depreciation of $ |
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Operating lease right-of-use assets |
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Intangible assets, net of accumulated amortization of $ |
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Goodwill (Note 7) |
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Deferred income taxes, net |
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Non-marketable investments (Note 6) |
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Other long-term assets, net of allowance for credit losses of $ |
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TOTAL ASSETS |
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$ |
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$ |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
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$ |
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Deferred merchant payables |
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Deferred revenue (Note 3) |
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Accrued expenses and other current liabilities (Note 10) |
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Total current liabilities |
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Long-term debt (Note 8) |
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— |
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Deferred income taxes, net |
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Other long-term liabilities |
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Total Liabilities |
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Commitments and contingencies (Note 11) |
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Stockholders’ equity: (Note 12) |
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Preferred stock, $ |
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Authorized shares: |
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Shares issued and outstanding: |
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Common stock, $ |
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— |
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— |
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Authorized shares: |
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Shares issued: |
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Shares outstanding: |
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Class B common stock, $ |
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— |
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— |
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Authorized shares: |
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Shares issued and outstanding: |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive income (loss) |
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( |
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( |
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Treasury stock-common stock, at cost, |
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( |
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( |
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Total Stockholders’ Equity |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
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$ |
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$ |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
TRIPADVISOR, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
(in millions, except number of shares)
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Three months ended September 30, 2020 |
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Accumulated |
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Additional |
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other |
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Class B |
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paid-in |
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Retained |
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comprehensive |
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Common stock |
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common stock |
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capital |
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earnings |
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income (loss) |
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Treasury Stock |
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Shares |
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Amount |
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Shares |
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Amount |
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Shares |
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Amount |
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Total |
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Balance as of June 30, 2020 |
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$ |
— |
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$ |
— |
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$ |
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$ |
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$ |
( |
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( |
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$ |
( |
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$ |
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Net income (loss) |
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( |
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Other comprehensive income (loss) |
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Issuance of common stock related to exercises of options and vesting of RSUs |
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— |
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— |
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— |
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Withholding taxes on net share settlements of equity awards |
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( |
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( |
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Stock-based compensation |
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Balance as of September 30, 2020 |
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$ |
— |
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$ |
— |
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$ |
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$ |
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$ |
( |
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( |
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$ |
( |
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$ |
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Nine months ended September 30, 2020 |
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Accumulated |
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Additional |
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other |
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Class B |
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paid-in |
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Retained |
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comprehensive |
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Common stock |
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common stock |
|
|
capital |
|
|
earnings |
|
|
income (loss) |
|
|
Treasury Stock |
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Amount |
|
|
Total |
|
||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 |
|
|
|
|
|
$ |
— |
|
|
|
|
|
|
$ |
— |
|
|
$ |
|
|
|
$ |