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Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net

NOTE 7: GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

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

 

 

 

Hotels, Media & Platform

 

 

Experiences & Dining

 

 

Other (2)

 

 

Tripadvisor Core

 

 

Viator

 

 

TheFork

 

 

Total

 

 

 

(in millions)

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

$

407

 

 

$

362

 

 

$

93

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

862

 

Foreign currency translation adjustments

 

 

—

 

 

 

(18

)

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(19

)

Balance as of December 31, 2021

 

$

407

 

 

$

344

 

 

$

92

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

843

 

Foreign currency translation adjustments

 

 

—

 

 

 

(18

)

 

 

(5

)

 

 

—

 

 

 

(1

)

 

 

3

 

 

 

(21

)

Allocation to new segments (1)

 

 

(407

)

 

 

(326

)

 

 

(87

)

 

 

599

 

 

 

120

 

 

 

101

 

 

 

—

 

Balance as of December 31, 2022

 

$

—

 

 

$

—

 

 

$

—

 

 

$

599

 

 

$

119

 

 

$

104

 

 

$

822

 

 

(1)
Refer to “Note 19: Segment and Geographic Information” for information regarding our reportable segment changes in the second quarter of 2022.
(2)
Other consists of the combination of Rentals, Flights & Car, and Cruises, and did not previously constitute a reportable segment.

There were no goodwill impairment charges recognized on our consolidated statements of operations during the years ended December 31, 2022 and 2021, respectively. Refer to “Note 2: Significant Accounting Policies” for discussion regarding the Company’s 2022 interim and annual goodwill impairment assessments. During 2020, the Company recognized a goodwill impairment charge of $3 million, which represented all goodwill previously allocated to our former Tripadvisor China reporting unit. This impairment was driven by strategic operating decisions made by the Company. As of both December 31, 2022 and 2021, accumulated goodwill impairment losses totaled $3 million, which was associated with the Tripadvisor Core segment as of December 31, 2022 and Other as of December 31, 2021.

Intangibles

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

 

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(in millions)

 

Intangible assets with definite lives

 

$

219

 

 

$

237

 

Less: accumulated amortization

 

 

(198

)

 

 

(202

)

Intangible assets with definite lives, net

 

 

21

 

 

 

35

 

Intangible assets with indefinite lives

 

 

30

 

 

 

30

 

Total

 

$

51

 

 

$

65

 

 

Amortization expense for definite-lived intangible assets was $13 million, $20 million, and $26 million, for the years ended December 31, 2022, 2021 and 2020, respectively.

Our indefinite-lived intangible assets relate to trade names and trademarks for the Tripadvisor brand. During the Company's annual indefinite-lived intangible impairment test during the fourth quarter of 2022, a qualitative

assessment was performed. As part of our qualitative assessment we considered, amongst other factors, the amount of excess fair value of our trade names and trademarks to the carrying value of those same assets, changes in estimates, and valuation input assumptions, since our previous quantitative analysis. After considering these factors and the impact that changes in such factors would have on the inputs used in our previous quantitative assessment, we determined that it was more likely than not that our indefinite-lived intangible assets were not impaired as of December 31, 2022.

There were no impairment charges recognized to our consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020 related to our intangible assets.

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

 

 

 

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Weighted Average

 

 

Gross

 

 

 

 

 

Net

 

 

Gross

 

 

 

 

 

Net

 

 

 

Remaining Life

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

 

(in years)

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

 

 

 

 

(in millions)

 

 

(in millions)

 

Trade names and trademarks

 

 

1.7

 

 

$

47

 

 

$

(40

)

 

$

7

 

 

$

55

 

 

$

(43

)

 

$

12

 

Customer lists and supplier relationships

 

 

4.7

 

 

 

95

 

 

 

(87

)

 

 

8

 

 

 

99

 

 

 

(87

)

 

 

12

 

Subscriber relationships

 

 

3.3

 

 

 

34

 

 

 

(33

)

 

 

1

 

 

 

40

 

 

 

(36

)

 

 

4

 

Technology and other

 

 

2.5

 

 

 

43

 

 

 

(38

)

 

 

5

 

 

 

43

 

 

 

(36

)

 

 

7

 

Total

 

 

3.2

 

 

$

219

 

 

$

(198

)

 

$

21

 

 

$

237

 

 

$

(202

)

 

$

35

 

 

Our definite-lived intangible assets are being amortized on a straight-line basis. The straight-line method of amortization is currently our best estimate, or approximates to date, the distribution of the economic use of these intangible assets.

The estimated amortization expense for intangible assets with definite lives for each of the next five years, and the expense thereafter, assuming no subsequent impairment of the underlying assets or change in estimate of remaining lives, is expected to be as follows (in millions):

 

2023

 

$

9

 

2024

 

 

6

 

2025

 

 

3

 

2026

 

 

2

 

2027

 

 

1

 

2028 and thereafter

 

 

—

 

Total

 

$

21