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SEC Filings

20-F
TRIVAGO N.V. filed this Form 20-F on 03/06/2018
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compensation of €12.2 million, or 77.2%, which was due to the fluctuations in the fair value accounting treatment of awards which were classified as liability awards in the prior periods. Professional fees and other increased by €2.6 million, or 32.5%, as we continued to invest in projects related to visual content, hotel description and profiling to improve the quality of our product, which incurred higher website development expenses. In addition, depreciation of technology assets increased by €0.1 million, or 2.6% in the year ended December 31, 2017 compared to the year ended December 31, 2016.
Technology and content expense for the year ended December 31, 2016 increased by €23.0 million, or 80.1%, compared to the year ended December 31, 2015, primarily due to an increase of €11.3 million, or 251.1% in share-based compensation driven by fluctuations in the fair value accounting treatment of awards which were classified as liability awards in the prior periods, and an increase in personnel-related costs of €7.0 million, or 41.2%, to support key technology projects primarily for our corporate technology function, which resulted in an increase in headcount from 381 employees as of December 31, 2015 to 499 employees as of December 31, 2016. In addition, depreciation of technology assets increased by €2.5 million, or 178.6%, and professional fees and other expenses increased by €2.2 million, or 37.9%, in the year ended December 31, 2016.
General and administrative
General and administrative expense consists primarily of professional fees for external services including legal, tax and accounting, personnel-related costs, including those of our executive leadership, finance, legal and human resource functions, shared services costs calculated and allocated by Expedia to us, and other costs including other overhead costs, depreciation and share-based compensation.
 
Year ended December 31, 
 
% Change
(in millions)
2015
 
 
2016
 
 
2017
 
 
2016 vs 2015

 
2017 vs 2016

Personnel
 
5.4

 
 
9.8

 
 
15.3

 
81.5
%
 
56.1
 %
Share-based compensation
 
6.0

 
 
26.3

 
 
8.8

 
338.3
%
 
(66.5
)%
Related party shared services allocation
 
2.8

 
 
4.2

 
 
0.1

 
50.0
%
 
(97.6
)%
Professional fees and other
 
3.9

 
 
15.3

 
 
23.2

 
292.3
%
 
51.6
 %
Total general and administrative
 
18.1

 
 
55.6

 
 
47.4

 
207.2
%
 
(14.7
)%
% of total revenue
 
3.7
%
 
 
7.4
%
 
 
4.6
%
 
 
 
 
General and administrative expense for the year ended December 31, 2017 decreased by €8.2 million, or 14.7%, compared to the year ended December 31, 2016, primarily due to a decrease of €17.5 million of share-based compensation expense mainly driven by fluctuations in the fair value accounting treatment of awards which were classified as liability awards in the prior periods. Professional fees and other for the year ended December 31, 2017 increased by €7.9 million, or 51.6% compared to the year ended December 31, 2016, mainly driven by an increase of €7.0 million in legal and consulting fees, including audit and financial consultancy fees. At the same time, legal, tax, and other service costs performed by Expedia on our behalf that were pushed down to us declined by €4.1 million. Personnel-related costs for the year ended December 31, 2017 increased by €5.5 million, or 56.1%, compared to the year ended December 31, 2016, primarily driven by an increase in headcount in our Human Resources and Finance departments from 187 employees as of December 31, 2016 to 291 employees as of December 31, 2017 as we continued to build up internal expertise in these areas.
General and administrative expense for the year ended December 31, 2016 increased by €37.5 million, or 207.2%, compared to the year ended December 31, 2015, primarily due to an increase in share-based compensation expense of €20.3 million, which was primarily driven by fluctuations in the fair value accounting treatment of liability classified awards granted in prior periods. Professional fees and other for the year ended December 31, 2016 increased by €11.4 million, or 292.3%, compared to the year ended December 31, 2015, a significant portion of which was due to an increase of €5.1 million in professional fees incurred primarily in conjunction with the preparation of the registration statement filed with the SEC on December 5, 2016 in

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