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SEC Filings

6-K
TRIVAGO N.V. filed this Form 6-K on 02/06/2019
Entire Document
 

by the German Social Security authorities of €0.3 million in the fourth quarter of 2018 predominantly relating to prior periods. Professional fees and other expenses remained stable compared to the same period in 2017, primarily due to a decrease in losses on receivables by €1.6 million resulting mostly from an adjustment in 2018 to losses recorded in prior periods, and a decrease in office expense of €0.6 million, that were offset by the €1.0 million impairment of an internal-use software in the second quarter of 2018 and an increase in our depreciation expense of €0.6 million. Our legal and consulting expenses decreased by €0.9 million in the twelve months ended December 31, 2018 compared to the same period in 2017, which was offset by an increase in our audit expense. Share-based compensation increased by €3.2 million to €12.0 million in the twelve months ended December 31, 2018, compared to the same periods in 2017.

trivago Campus
We moved into our new campus in Düsseldorf in June 2018. The contractual lease agreements triggered build-to-suit treatment under U.S. GAAP, and the move-in triggered a sale and subsequent leaseback transaction. We have bifurcated our lease payments relating to the premises into a portion that is allocated to the building (a reduction of the financing obligation) and a portion that is allocated to the land on which the building was constructed. The portion of the lease obligations allocated to the land is treated as an operating lease that commenced in July 2015. In connection with this lease, we recorded non-cash land rent expense of €0.5 million in the fourth quarter of 2018, and €1.8 million in the twelve months ended December 31, 2018, in line with the same periods in 2017. Until our move to the campus in June 2018, our non-cash land expense was entirely classified as general and administrative expense. Since our move, we have been allocating these expenses to all of our operating costs, most of it to technology and content expense, as the allocation is based on headcount. Depreciation of the fixed asset commenced upon construction completion, resulting in €0.7 million of depreciation expense for the fourth quarter of 2018 and €1.6 million for the twelve months ended December 31, 2018, of which the majority is recorded as technology and content expense.

Amortization of intangible assets
Amortization of intangible assets remained unchanged at €0.4 million during the fourth quarter of 2018 and decreased by €1.5 million to €1.7 million during the twelve months ended December 31, 2018 compared to the same periods in 2017. These amortization costs relate predominantly to intangible assets recognized by Expedia Group upon the acquisition of a majority stake in trivago in 2013, which were allocated to trivago. The amortization expense decreased for the twelve months ended December 31, 2018 as some of these intangible assets reached the end of their useful lives in the first quarter of 2017.

Share-based compensation
Share-based compensation increased by €1.8 million to €5.5 million in the fourth quarter of 2018 and by €4.7 million to €20.7 million in the twelve months ended December 31, 2018, compared to the same periods in 2017.


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