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SEC Filings

20-F
TRIVAGO N.V. filed this Form 20-F on 03/06/2018
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In June 2015, we signed a contract to build our new corporate headquarters in Düsseldorf, Germany. The Company was deemed to be the owner of the premises during the construction period under build-to-suit lease accounting guidance under ASC 840. Therefore, a construction-in-progress asset and a related construction financing obligation were recorded on our consolidated balance sheets. The building assets are included in construction in process and will begin depreciating when the costs incurred related to the build out of the headquarters are complete and the normal tenant improvements are ready for their intended use, which is expected to be in 2018.
During 2017, we have incurred costs for special tenant building requests associated with the construction of the new corporate headquarter, which are included in construction in process. We will begin depreciating when the costs incurred related to the build out of the headquarters are complete and the normal tenant improvements are ready for their intended use.
We establish assets and liabilities for the present value of estimated future costs to return certain of our leased facilities to their original condition under the authoritative accounting guidance for asset retirement obligations. Such assets are depreciated over the lease period and the recorded liabilities are accreted to the future value of the estimated restoration costs. As of December 31, 2017, an asset retirement obligation asset of €1.0 million is included within leasehold improvements, gross of accumulated depreciation of €0.3 million, and a liability of €1.0 million for the cost to decommission the physical space of our current operating leases for office space once we move into our new corporate headquarter in mid 2018.

7.Goodwill and intangible assets, net
The following table presents our goodwill and intangible assets as of December 31, 2016 and 2017:

As of December 31,
(in thousands)
2016

 
2017

Goodwill
490,503

 
490,455

Intangible assets with definite lives, net
6,552

 
3,794

Intangible assets with indefinite lives
169,500

 
169,500

Total
666,555

 
663,749

Impairment Assessments
As of December 31, 2016 and 2017, we had no accumulated impairment losses of goodwill or indefinite-lived intangible assets.
Goodwill
The following table presents the changes in goodwill by reporting segment:
(in thousands)
 
Developed Europe
 
Americas
 
Rest of World
 
Total
Balance as of January 1, 2016
 
215,208

 
192,663

 
82,489

 
490,360

Foreign exchange translation
 
63

 
56

 
24

 
143

Balance as of December 31, 2016
 
215,271

 
192,719

 
82,513

 
490,503

 
 
 
 
 
 
 
 
 
Balance as of January 1, 2017
 
215,271

 
192,719

 
82,513

 
490,503

Foreign exchange translation
 
(77
)
 
(69
)
 
(29
)
 
(175
)
Acquisition of Tripl
 
110

 
98

 
42

 
250

Deconsolidation of myhotelshop
 
(54
)
 
(48
)
 
(21
)
 
(123
)
Balance as of December 31, 2017
 
215,250

 
192,700

 
82,505

 
490,455

Indefinite-lived Intangible Assets
Our indefinite-lived intangible assets relate principally to trade names, trademarks and domain names.
Intangible Assets with Definite Lives
The following table presents the components of our intangible assets with definite lives as of December 31, 2016 and 2017:
(in thousands)
 
December 31, 2016
 
December 31, 2017

 
Cost
 
(Accumulated Amortization)
 
Net
 
Cost
 
(Accumulated Amortization)
 
Net
Customer relationships
 
38

 
(15
)
 
23

 
34

 
(5
)
 
29

Partner relationships
 
34,220

 
(32,610
)
 
1,610

 
34,254

 
(34,224
)
 
30

Technology
 
59,780

 
(59,780
)
 

 
60,190

 
(59,831
)
 
359

Non-compete agreement
 
10,800

 
(5,881
)
 
4,919

 
10,800

 
(7,424
)
 
3,376

Total
 
104,838

 
(98,286
)
 
6,552

 
105,278

 
(101,484
)
 
3,794

Amortization expense was €30.0 million for the year ended December 31, 2015, €13.9 million for the year ended December 31, 2016 and €3.2 million for the year ended December 31, 2017. The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2017, assuming no subsequent impairment of the underlying assets, is as follows:
(in thousands)
 
Amortization

2018
 
1,711

2019
 
1,701

2020
 
382

2021
 

Total
 
3,794


8.Debt - credit facility
We maintain a €50.0 million uncommitted credit facility with an interest rate of LIBOR, floored at zero, plus 1% per annum, which is guaranteed by Expedia, that may be terminated at any time by the lender. As of December 31, 2016 and December 31, 2017 we had no borrowings outstanding on the consolidated balance sheet.


F-23