Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2014

The following tables present our segment information for the years ended December 31, 2014, 2013 and 2012.

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

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

	Year ended December 31, 2012
	Hotel		Other		Corporate and unallocated			Total
	(in millions)
Revenue	$	732	$	31	$	—		$	763
Adjusted EBITDA (1)		349		3		—			352
Depreciation		—		—		(20	)		(20	)
Amortization of intangible assets		—		—		(6	)		(6	)
Stock-based compensation		—		—		(30	)		(30	)
Operating income (loss)	$	349	$	3	$	(56	)		296
Other expense, net									(14	)
Income before income taxes									282
Provision for income taxes									(87	)
Net income									195

(1)	Includes allocated general and administrative expenses in our Hotel segment of $87 million, $72 million and $56 million; and in our Other segment of $18 million, $9 million and $6 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Reconciliation of Adjusted EBITDA to Net Income

The following table is a reconciliation of our Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, for the periods presented:

	Year ended December 31,
	2014			2013			2012
	(in millions)
Adjusted EBITDA	$	468		$	379		$	352
Depreciation (1)		(47	)		(30	)		(20	)
OIBA (2)		421			349			332
Amortization of intangible assets		(18	)		(6	)		(6	)
Stock-based compensation		(63	)		(49	)		(30	)
Other expense, net		(18	)		(10	)		(14	)
Provision for income taxes		(96	)		(79	)		(87	)
Net income	$	226		$	205		$	195

(1)	Includes amortization of internal use software and website development costs.

(2)

We define OIBA as net income (loss) plus: (1) provision for income taxes; (2) other income (expense), net; (3) stock-based compensation; (4) amortization of intangible assets; and (5) non-recurring expenses. This operating metric is only used by our management to calculate our annual obligation for our charitable foundation. Refer to “Note 12— Commitments and Contingencies” for a discussion of our charitable foundation.

Summary of Total Revenue by Product

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

	Year ended December 31,
	2014		2013		2012
	(in millions)
Click-based advertising	$	870	$	696	$	588
Display-based advertising		140		119		94
Subscription, transaction and other		236		130		81
Total revenue	$	1,246	$	945	$	763

Summary of Revenue by Geographic Area

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

	Year ended December 31,
	2014		2013		2012
	(in millions)
Revenue
United States	$	593	$	463	$	386
United Kingdom		191		141		110
All other countries		462		341		267
	$	1,246	$	945	$	763

Property and Equipment, Net

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

	December 31,
	2014		2013
	(in millions)
Property and equipment, net
United States	$	170	$	67
All other countries		25		15
	$	195	$	82

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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