Recast of Certain Prior Period Non-GAAP Results Exhibit 99.1
| The Priceline Group Inc. | Three Months Ended | Year Ended | |||||||||||||||||||||||||||
| (In thousands, except per share data) | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | December 31, | ||||||||||||||||||||||
| 2015 | 2015 | 2015 | 2015 | 2016 | 2016 | 2015 | |||||||||||||||||||||||
| Reconciliation of Operating Income to Non-GAAP Operating Income | |||||||||||||||||||||||||||||
| Operating Income | $ | 433,969 | $ | 678,331 | $ | 1,488,707 | $ | 657,900 | $ | 550,318 | $ | 732,407 | $ | 3,258,907 | |||||||||||||||
| (a) | Adjustment to exclude favorable impact of travel transaction tax judgments, rulings and settlements | (16,404 | ) | — | (13,655 | ) | — | — | — | (30,059 | ) | ||||||||||||||||||
| (b) | Amortization of intangible assets | 43,328 | 42,653 | 42,229 | 42,767 | 42,385 | 43,041 | 170,977 | |||||||||||||||||||||
| Non-GAAP Operating income | $ | 460,893 | $ | 720,984 | $ | 1,517,281 | $ | 700,667 | $ | 592,703 | $ | 775,448 | $ | 3,399,825 | |||||||||||||||
| % of Non-GAAP Gross profit * | 27.8 | % | 34.4 | % | 51.7 | % | 37.3 | % | 29.3 | % | 31.9 | % | 39.7 | % | |||||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA | |||||||||||||||||||||||||||||
| Net Income | $ | 333,327 | $ | 517,032 | $ | 1,196,732 | $ | 504,269 | $ | 374,424 | $ | 580,638 | $ | 2,551,360 | |||||||||||||||
| (a) | Adjustment to exclude favorable impact of travel transaction tax judgments, rulings and settlements | (16,404 | ) | — | (13,655 | ) | — | — | — | (30,059 | ) | ||||||||||||||||||
| (c) | Depreciation & amortization | 65,002 | 67,674 | 69,054 | 70,764 | 72,871 | 77,712 | 272,494 | |||||||||||||||||||||
| (d) | Interest income | (11,596 | ) | (13,037 | ) | (14,682 | ) | (16,414 | ) | (20,347 | ) | (21,292 | ) | (55,729 | ) | ||||||||||||||
| (d) | Interest expense | 33,479 | 41,547 | 41,436 | 43,767 | 46,894 | 50,290 | 160,229 | |||||||||||||||||||||
| (e) | Loss on extinguishment of convertible debt | 3 | — | — | — | — | — | 3 | |||||||||||||||||||||
| (f) | Impairment of cost-method investments | — | — | — | — | 50,350 | 12,858 | — | |||||||||||||||||||||
| (g) | Income tax expense | 73,916 | 131,345 | 259,438 | 112,261 | 86,069 | 111,910 | 576,960 | |||||||||||||||||||||
| Adjusted EBITDA | $ | 477,727 | $ | 744,561 | $ | 1,538,323 | $ | 714,647 | $ | 610,261 | $ | 812,116 | $ | 3,475,258 | |||||||||||||||
| % of Non-GAAP Gross profit * | 28.9 | % | 35.6 | % | 52.4 | % | 38.0 | % | 30.2 | % | 33.4 | % | 40.6 | % | |||||||||||||||
| Reconciliation of Net Income to Non-GAAP Net Income | |||||||||||||||||||||||||||||
| Net Income | $ | 333,327 | $ | 517,032 | $ | 1,196,732 | $ | 504,269 | $ | 374,424 | $ | 580,638 | $ | 2,551,360 | |||||||||||||||
| (a) | Adjustment to exclude favorable impact of travel transaction tax judgments, rulings and settlements | (16,404 | ) | — | (13,655 | ) | — | — | — | (30,059 | ) | ||||||||||||||||||
| (b) | Amortization of intangible assets | 43,328 | 42,653 | 42,229 | 42,767 | 42,385 | 43,041 | 170,977 | |||||||||||||||||||||
| (e) | Debt discount amortization related to convertible debt | 15,775 | 15,575 | 15,703 | 15,832 | 15,962 | 16,093 | 62,885 | |||||||||||||||||||||
| (e) | Loss on extinguishment of convertible debt | 3 | — | — | — | — | — | 3 | |||||||||||||||||||||
| (f) | Impairment of cost-method investments | — | — | — | — | 50,350 | 12,858 | — | |||||||||||||||||||||
| (h) | Tax impact of Non-GAAP adjustments | (16,203 | ) | (21,816 | ) | (16,150 | ) | (22,222 | ) | (22,140 | ) | (22,255 | ) | (76,391 | ) | ||||||||||||||
| Non-GAAP Net Income | $ | 359,826 | $ | 553,444 | $ | 1,224,859 | $ | 540,646 | $ | 460,981 | $ | 630,375 | $ | 2,678,775 | |||||||||||||||
| Reconciliation of GAAP to Non-GAAP Net Income Per Share | |||||||||||||||||||||||||||||
| GAAP weighted average number of diluted common shares outstanding | 52,406 | 52,038 | 51,130 | 50,403 | 50,129 | 50,059 | 51,593 | ||||||||||||||||||||||
| Non-GAAP Net income per diluted common share | $ | 6.87 | $ | 10.64 | $ | 23.96 | $ | 10.73 | $ | 9.20 | $ | 12.59 | $ | 51.92 | |||||||||||||||
| Notes: | |||||||||||||||||||||||||||||
| * | Non-GAAP gross profit is unchanged from figures previously reported. | ||||||||||||||||||||||||||||
| (a) | Adjustment for travel transaction taxes (including estimated interest and penalties) principally related to a favorable ruling in the State of Hawaii is recorded in Cost of revenues. | ||||||||||||||||||||||||||||
| (b) | Amortization of intangible assets is recorded in Depreciation and amortization. | ||||||||||||||||||||||||||||
| (c) | Depreciation and amortization are excluded from Net income to calculate Adjusted EBITDA. | ||||||||||||||||||||||||||||
| (d) | Interest income and Interest expense are excluded from Net income to calculate Adjusted EBITDA. | ||||||||||||||||||||||||||||
| (e) | Non-cash interest expense related to the amortization of debt discount and loss on early extinguishment of convertible debt are recorded in Interest expense and Foreign currency transactions and other, respectively. | ||||||||||||||||||||||||||||
| (f) | Impairment of cost-method investments is recorded in Other income (expense) and principally relates to our investment in Hotel Urbano. | ||||||||||||||||||||||||||||
| (g) | Income tax expense is excluded from Net income to calculate Adjusted EBITDA. | ||||||||||||||||||||||||||||
| (h) | Reflects the tax impact of non-GAAP adjustments. | ||||||||||||||||||||||||||||
| For a more detailed discussion of the adjustments described above, please see the section in our most recent earnings press release entitled "Non-GAAP Financial Measures" which provides a definition and information about the use of non-GAAP financial measures. | |||||||||||||||||||||||||||||