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For the years ended december 31 2016 and 2017 the

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For the years ended December 31, 2016 and 2017, the Company made certain investments, in the form of limitedcontribution or other financing arrangements, in several non-U.S. investment entities, with fair values of approximaand US$0.4 billion in 2016 and 2017, respectively (the “Investment”). These investment entities have spent the Invthe equity interest of Qunar that was not held by the Company, through privately negotiated transactions. In accord810, the Company consolidates the financial statements of these investment entities and as such the investmentsconsolidation. The Company accounts for the purchases of the Qunar non-controlling shares as equity transactionscarrying amount of non-controlling interest of Qunar to reflect the decrease in the non-controlling interest’s ownersRMB15.5 billion and RMB2.2 billion in 2016 and 2017 respectively. The difference between the amount of the changcontrolling interest and the consideration paid was recognized in additional paid-in capital of the Company with ambillion and RMB0.6 billion in 2016 and 2017 respectively.The following unaudited pro forma consolidated financial information reflects the results of operations for the yeaif the business combination had occurred on January 1, 2014, and after giving effect to purchase accounting adjustmforma results have been prepared for comparative purposes only and do not purport to be indicative of what operathave been had the acquisitions actually took place on the beginning of the periods presented, and may not be indicoperating results.For the years ended December 31, 2015, 2016 and 2017, other than the business combination of Qunar, the finathe pro forma revenues and net earnings of above mentioned acquisitions were not considered as significant to the805 respectively, either individually or in aggregate.Other than the acquisitions disclosed above, none of other acquisition occurred during the periods presented wabusinesses or financial results. Other immaterial acquisitions in 2015, 2016 and 2017 with total consideration of RMRMB120 million and RMB251 million respectively resulted in goodwill increase of RMB817 million, RMB159 million amillion respectively.Goodwill and other intangible assetsGoodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities aof the Company’s acquisitions of interests in its subsidiaries and consolidated VIEs.Goodwill is not amortized but is reviewed at least annually for impairment or earlier, if an indication of impairmeRecoverability of goodwill is evaluated using a two-step process. In the first step, the fair value of a reporting unit iscarrying value. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporticonsidered not impaired and no further testing is required. If the carrying value of the net assets assigned to a repothe fair value of a reporting unit, the second step of the impairment test is performed in order to determine the impreporting unit’s goodwill. Determining the implied fair value of goodwill requires valuation of a reporting unit’s tangintangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. Ifof a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to thedifference. The Company estimates total fair value of the reporting unit using discounted cash flow analysis, and m

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Term
Summer
Professor
N/A
Tags
Balance Sheet, The Ambassadors, U S Securities and Exchange Commission, Leap year starting on Friday

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