Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37429 | |
Entity Registrant Name | EXPEDIA GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-2705720 | |
Entity Address, Address Line One | 1111 Expedia Group Way W. | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98119 | |
City Area Code | (206) | |
Local Phone Number | 481-7200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock, $0.0001 par value | |
Trading Symbol | EXPE | |
Security Exchange Name | NASDAQ | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001324424 | |
Common stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 142,601,118 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,523,452 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Income Statement [Abstract] | |||
Revenue | $ 2,665 | $ 2,249 | |
Costs and expenses: | |||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | [1] | 414 | 371 |
Selling and marketing | [1] | 1,674 | 1,339 |
Technology and content | [1] | 317 | 270 |
General and administrative | [1] | 184 | 186 |
Depreciation and amortization | 192 | 197 | |
Legal reserves, occupancy tax and other | 5 | 21 | |
Operating loss | (121) | (135) | |
Other income (expense): | |||
Interest income | 43 | 3 | |
Interest expense | (61) | (81) | |
Other, net | 78 | 5 | |
Total other income (expense), net | 60 | (73) | |
Loss before income taxes | (61) | (208) | |
Provision for income taxes | (79) | 85 | |
Net loss | (140) | (123) | |
Net (income) loss attributable to non-controlling interests | (5) | 1 | |
Net loss attributable to Expedia Group, Inc. | $ (145) | $ (122) | |
Earnings (loss) per share attributable to Expedia Group, Inc. available to common stockholders: | |||
Basic (in dollars per share) | $ (0.95) | $ (0.78) | |
Diluted (in dollars per share) | $ (0.95) | $ (0.78) | |
Shares used in computing earnings (loss) per share (000's): | |||
Basic (in shares) | 152,477 | 156,336 | |
Diluted (in shares) | 152,477 | 156,366 | |
[1] (1) Includes stock-based compensation as follows: Cost of revenue $ 3 $ 3 Selling and marketing 20 15 Technology and content 34 27 General and administrative 46 45 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cost of revenue | ||
Stock-based compensation | $ 3 | $ 3 |
Selling and marketing | ||
Stock-based compensation | 20 | 15 |
Technology and content | ||
Stock-based compensation | 34 | 27 |
General and administrative | ||
Stock-based compensation | $ 46 | $ 45 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (140) | $ (123) | |
Currency translation adjustments, net of tax | [1] | 28 | (17) |
Comprehensive loss | (112) | (140) | |
Less: Comprehensive income (loss) attributable to non-controlling interests | 10 | (6) | |
Comprehensive loss attributable to Expedia Group, Inc. | $ (122) | $ (134) | |
[1]Currency translation adjustments include tax benefit of $1 million for the three months ended March 31, 2023 and tax expense of $3 million for the three months ended March 31, 2022 associated with net investment hedges. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Currency translation adjustments, tax expense (benefit) | $ (1) | $ 3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 5,904 | $ 4,096 |
Restricted cash and cash equivalents | 2,483 | 1,755 |
Short-term investments | 44 | 48 |
Accounts receivable, net of allowance of $45 and $40 | 2,523 | 2,078 |
Income taxes receivable | 53 | 40 |
Prepaid expenses and other current assets | 1,119 | 774 |
Total current assets | 12,126 | 8,791 |
Property and equipment, net | 2,260 | 2,210 |
Operating lease right-of-use assets | 353 | 363 |
Long-term investments and other assets | 1,198 | 1,184 |
Deferred income taxes | 703 | 661 |
Intangible assets, net | 1,196 | 1,209 |
Goodwill | 7,150 | 7,143 |
TOTAL ASSETS | 24,986 | 21,561 |
Current liabilities: | ||
Accounts payable, merchant | 1,531 | 1,709 |
Accounts payable, other | 1,010 | 947 |
Deferred merchant bookings | 11,036 | 7,151 |
Deferred revenue | 186 | 163 |
Income taxes payable | 104 | 21 |
Accrued expenses and other current liabilities | 745 | 787 |
Total current liabilities | 14,612 | 10,778 |
Long-term debt | 6,243 | 6,240 |
Deferred income taxes | 35 | 52 |
Operating lease liabilities | 305 | 312 |
Other long-term liabilities | 501 | 451 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 14,938 | 14,795 |
Treasury stock - Common stock and Class B, at cost; Shares 142,289 and 137,783 | (11,341) | (10,869) |
Retained earnings (deficit) | (1,554) | (1,409) |
Accumulated other comprehensive income (loss) | (211) | (234) |
Total Expedia Group, Inc. stockholders’ equity | 1,832 | 2,283 |
Non-redeemable non-controlling interests | 1,458 | 1,445 |
Total stockholders’ equity | 3,290 | 3,728 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 24,986 | 21,561 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance | $ 45 | $ 40 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued (in shares) | 279,097,000 | 278,264,000 |
Common stock, shares outstanding (in shares) | 144,084,000 | 147,757,000 |
Treasury stock (in shares) | 142,289,000 | 137,783,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 12,800,000 | 12,800,000 |
Common stock, shares outstanding (in shares) | 5,523,000 | 5,523,000 |
Treasury stock (in shares) | 7,300,000 | 7,300,000 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Class B common stock | Common stock | Common stock Class B common stock | Additional paid-in capital | Treasury stock - Common and Class B | Retained earnings (deficit) | Accumulated other comprehensive income (loss) | Non-redeemable non-controlling interest |
Beginning balance (in shares) at Dec. 31, 2021 | 274,660,725 | 12,799,999 | |||||||
Beginning balance at Dec. 31, 2021 | $ 3,552 | $ 0 | $ 0 | $ 14,229 | $ (10,262) | $ (1,761) | $ (149) | $ 1,495 | |
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | 131,812,764 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (123) | (122) | (1) | ||||||
Other comprehensive income (loss), net of taxes | (17) | (12) | (5) | ||||||
Proceeds from exercise of equity instruments and employee stock purchase plans (in shares) | 1,668,445 | ||||||||
Proceeds from exercise of equity instruments and employee stock purchase plans | 101 | 101 | |||||||
Treasury stock activity related to vesting of equity instruments (in shares) | 238,675 | ||||||||
Treasury stock activity related to vesting of equity instruments | (47) | $ (47) | |||||||
Other changes in ownership of non-controlling interests | 4 | 4 | |||||||
Stock-based compensation expense | 97 | 97 | |||||||
Ending balance (in shares) at Mar. 31, 2022 | 276,329,170 | 12,799,999 | |||||||
Ending balance at Mar. 31, 2022 | $ 3,567 | $ 0 | $ 0 | 14,431 | $ (10,309) | (1,883) | (161) | 1,489 | |
Treasury stock, ending balance (in shares) at Mar. 31, 2022 | 132,051,439 | ||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 147,757,000 | 5,523,000 | 278,264,235 | 12,799,999 | |||||
Beginning balance at Dec. 31, 2022 | $ 3,728 | $ 0 | $ 0 | 14,795 | $ (10,869) | (1,409) | (234) | 1,445 | |
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | 137,783,000 | 7,300,000 | 137,783,429 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | $ (140) | (145) | 5 | ||||||
Other comprehensive income (loss), net of taxes | 28 | 23 | 5 | ||||||
Proceeds from exercise of equity instruments and employee stock purchase plans (in shares) | 832,904 | ||||||||
Proceeds from exercise of equity instruments and employee stock purchase plans | 29 | 29 | |||||||
Treasury stock activity related to vesting of equity instruments (in shares) | 184,647 | ||||||||
Treasury stock activity related to vesting of equity instruments | $ (21) | $ (21) | |||||||
Common stock repurchases (in shares) | 4,300,000 | 4,321,273 | |||||||
Common stock repurchases | $ (448) | $ (448) | |||||||
Other changes in ownership of non-controlling interests | 3 | 3 | |||||||
Stock-based compensation expense | 114 | 114 | |||||||
Other | $ (3) | (3) | |||||||
Ending balance (in shares) at Mar. 31, 2023 | 144,084,000 | 5,523,000 | 279,097,139 | 12,799,999 | |||||
Ending balance at Mar. 31, 2023 | $ 3,290 | $ 0 | $ 0 | $ 14,938 | $ (11,341) | $ (1,554) | $ (211) | $ 1,458 | |
Treasury stock, ending balance (in shares) at Mar. 31, 2023 | 142,289,000 | 7,300,000 | 142,289,349 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net loss | $ (140) | $ (123) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation of property and equipment, including internal-use software and website development | 177 | 175 |
Amortization of intangible assets | 15 | 22 |
Amortization of stock-based compensation | 103 | 90 |
Deferred income taxes | (57) | (101) |
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net | (8) | 6 |
Realized (gain) loss on foreign currency forwards, net | (12) | 32 |
Gain on minority equity investments, net | (1) | (21) |
Other, net | 14 | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (456) | (476) |
Prepaid expenses and other assets | (293) | (356) |
Accounts payable, merchant | (178) | (41) |
Accounts payable, other, accrued expenses and other liabilities | 79 | 280 |
Tax payable/receivable, net | 29 | (13) |
Deferred merchant bookings | 3,885 | 3,515 |
Net cash provided by operating activities | 3,157 | 2,991 |
Investing activities: | ||
Capital expenditures, including internal-use software and website development | (233) | (156) |
Sales and maturities of investments | 5 | 200 |
Proceeds from initial exchange of cross-currency interest rate swaps | 0 | 337 |
Payments for initial exchange of cross-currency interest rate swaps | 0 | (337) |
Other, net | 33 | (31) |
Net cash provided by (used in) investing activities | (195) | 13 |
Financing activities: | ||
Payment of long-term debt | 0 | (724) |
Purchases of treasury stock | (469) | (47) |
Proceeds from exercise of equity awards and employee stock purchase plan | 29 | 101 |
Other, net | 3 | 7 |
Net cash used in financing activities | (437) | (663) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | 11 | (11) |
Net increase in cash, cash equivalents and restricted cash and cash equivalents | 2,536 | 2,330 |
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 5,851 | 5,805 |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | 8,387 | 8,135 |
Supplemental cash flow information | ||
Cash paid for interest | 81 | 117 |
Income tax payments, net | $ 34 | $ 26 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Description of Business Expedia Group, Inc. and its subsidiaries provide travel products and services to leisure and corporate travelers in the United States and abroad as well as various media and advertising offerings to travel and non-travel advertisers. These travel products and services are offered through a diversified portfolio of brands including: Brand Expedia®, Hotels.com®, Expedia® Partner Solutions, Vrbo®, trivago®, Orbitz®, Travelocity®, Hotwire®, Wotif®, ebookers®, CheapTickets®, Expedia Group™ Media Solutions, CarRentals.com™ and Expedia Cruises TM . In addition, many of these brands have related international points of sale. We refer to Expedia Group, Inc. and its subsidiaries collectively as “Expedia Group,” the “Company,” “us,” “we” and “our” in these consolidated financial statements. Basis of Presentation These accompanying financial statements present our results of operations, financial position and cash flows on a consolidated basis. The unaudited consolidated financial statements include Expedia Group, Inc., our wholly-owned subsidiaries, and entities we control, or in which we have a variable interest and are the primary beneficiary of expected cash profits or losses. We record our investments in entities that we do not control, but over which we have the ability to exercise significant influence, using the equity method or at fair value. We have eliminated significant intercompany transactions and accounts. We have prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. We have included all adjustments necessary for a fair presentation of the results of the interim period. These adjustments consist of normal recurring items. Our interim unaudited consolidated financial statements are not necessarily indicative of results that may be expected for any other interim period or for the full year. These interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”), previously filed with the Securities and Exchange Commission (“SEC”). trivago is a separately listed company on the Nasdaq Global Select Market and, therefore is subject to its own reporting and filing requirements, which could result in possible differences that are not expected to be material to Expedia Group. Accounting Estimates We use estimates and assumptions in the preparation of our interim unaudited consolidated financial statements in accordance with GAAP. Our estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our interim unaudited consolidated financial statements. These estimates and assumptions also affect the reported amount of net income or loss during any period. Our actual financial results could differ significantly from these estimates. The significant estimates underlying our interim unaudited consolidated financial statements include revenue recognition; recoverability of current and long-lived assets, intangible assets and goodwill; income and transactional taxes, such as potential settlements related to occupancy and excise taxes; loss contingencies; deferred loyalty rewards; stock-based compensation; accounting for derivative instruments and provisions for credit losses, customer refunds and chargebacks. Reclassifications We have reclassified prior period financial statements to conform to the current period presentation. Seasonality We generally experience seasonal fluctuations in the demand for our travel services. For example, traditional leisure travel bookings are generally the highest in the first three quarters as travelers plan and book their spring, summer and winter holiday travel. The number of bookings typically decreases in the fourth quarter. Since revenue for most of our travel services, including merchant and agency hotel, is recognized as the travel takes place rather than when it is booked, revenue typically lags bookings by several weeks for our hotel business and can be several months or more for our alternative accommodations business. Historically, Vrbo has seen seasonally stronger bookings in the first quarter of the year, with the relevant stays occurring during the peak summer travel months. The seasonal revenue impact is exacerbated with respect to income by the nature of our variable cost of revenue and direct sales and marketing costs, which we typically realize in closer alignment to |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Recent Adopted Accounting Policies As of January 1, 2023, we adopted the new guidance related to recognizing and measuring contract assets and contract liabilities from contracts with customers acquired in a business combination. The new guidance requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination as compared to current GAAP where an acquirer generally recognizes such items at fair value on the acquisition date. The adoption of this new guidance had no impact on our consolidated financial statements. Significant Accounting Policies Below are the significant accounting policies with interim disclosure requirements. For a comprehensive description of our accounting policies, refer to our 2022 Form 10-K. Revenue Prepaid Merchant Bookings. We classify payments made to suppliers in advance of Vrbo performance obligations as prepaid merchant bookings included within prepaid and other current assets. Prepaid merchant bookings was $671 million as of March 31, 2023 and $480 million as of December 31, 2022. Deferred Merchant Bookings. We classify cash payments received in advance of our performance obligations as deferred merchant bookings. At December 31, 2022, $6.2 billion of advance cash payments was reported within deferred merchant bookings, $3.4 billion of which was recognized resulting in $518 million of revenue during the three months ended March 31, 2023. At March 31, 2023, the related balance was $10.1 billion. At December 31, 2022, $961 million of deferred loyalty rewards was reported within deferred merchant bookings, $213 million of which was recognized within revenue during the three months ended March 31, 2023. At March 31, 2023, the related balance was $959 million. Deferred Revenue. At December 31, 2022, $163 million was recorded as deferred revenue, $63 million of which was recognized as revenue during the three months ended March 31, 2023. At March 31, 2023, the related balance was $186 million. Practical Expedients and Exemptions. We have used the portfolio approach to account for our loyalty points as the rewards programs share similar characteristics within each program in relation to the value provided to the traveler and their breakage patterns. Using this portfolio approach is not expected to differ materially from applying the guidance to individual contracts. However, we will continue to assess and refine, if necessary, how a portfolio within each rewards program is defined. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Cash, Restricted Cash, and Cash Equivalents Our cash and cash equivalents include cash and liquid financial instruments, including money market funds and term deposit investments, with maturities of three months or less when purchased. Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or our intention to use the cash for a specific purpose. Our restricted cash primarily relates to certain traveler deposits and to a lesser extent collateral for office leases. The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows: March 31, December 31, (in millions) Cash and cash equivalents $ 5,904 $ 4,096 Restricted cash and cash equivalents 2,483 1,755 Total cash, cash equivalents and restricted cash and cash equivalents in the consolidated statements of cash flows $ 8,387 $ 5,851 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 are classified using the fair value hierarchy in the table below: Total Level 1 Level 2 (In millions) Assets Cash equivalents: Money market funds $ 2 $ 2 $ — Term deposits 135 — 135 Derivatives: Foreign currency forward contracts 23 — 23 Cross-currency interest rate swaps 16 — 16 Investments: Term deposits 44 — 44 Equity investments 565 59 506 Total assets $ 785 $ 61 $ 724 Financial assets measured at fair value on a recurring basis as of December 31, 2022 are classified using the fair value hierarchy in the table below: Total Level 1 Level 2 (In millions) Assets Cash equivalents: Money market funds $ 3 $ 3 $ — Term deposits 188 — 188 Derivatives: Foreign currency forward contracts 15 — 15 Cross-currency interest rate swaps 21 — 21 Investments: Term deposits 48 — 48 Equity investments 564 49 515 Total assets $ 839 $ 52 $ 787 We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash equivalents and investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, a Level 2 input. Valuation of the cross-currency interest rate swaps is based on foreign currency exchange rates and the current interest rate curve, Level 2 inputs. We hold term deposit investments with financial institutions. Term deposits with original maturities of less than three months are classified as cash equivalents, those with remaining maturities of less than one year are classified within short-term investments and those with remaining maturities of greater than one year are classified within long-term investments and other assets. As of March 31, 2023 and December 31, 2022, our cash and cash equivalents consisted primarily of term deposits and money market funds with maturities of three months or less and bank account balances. We use foreign currency forward contracts to economically hedge certain merchant revenue exposures, foreign denominated liabilities related to certain of our loyalty programs and our other foreign currency-denominated operating liabilities. As of March 31, 2023, we were party to outstanding forward contracts hedging our liability exposures with a total net notional value of $4.7 billion. We had a net forward asset of $23 million ($38 million gross forward asset) as of March 31, 2023 and a net forward asset of $15 million ($29 million gross forward asset) as of December 31, 2022 recorded in prepaid expenses and other current assets. We recorded $20 million and $(34) million in net gains (losses) from foreign currency forward contracts during the three months ended March 31, 2023 and 2022. On March 2, 2022, we entered into two fixed-to-fixed cross-currency interest rate swaps with an aggregate notional amount of €300 million and maturity dates of February 2026. The swaps were designated as net investment hedges of Euro assets with the objective to protect the U.S. dollar value of our net investments in the Euro foreign operations due to movements in foreign currency. The fair value of the cross-currency interest rate swaps was a $16 million asset as of March 31, 2023 and a $21 million asset as of December 31, 2022, recorded in long-term investments and other assets. The gain recognized in interest expense during the three months ended March 31, 2023 was $1 million. During the three months ended March 31, 2022, the gain recognized in interest expense was nominal. Our equity investments include our marketable equity investment in Despegar, a publicly traded company, which is included in long-term investments and other assets in our consolidated balance sheets. During the three months ended March 31, 2023 and 2022, we recognized gains of approximately $10 million and $23 million within other, net in our consolidated statements of operations related to the fair value changes of this equity investment. In addition, as of March 31, 2023, we have an equity investment related to our approximately 16% ownership interest in GBT JerseyCo Ltd (“GBT”) and a commensurate voting interest in the publicly traded company, Global Business Travel Group, Inc. (“GBTG”). Our shares in GBT are exchangeable on a 1:1 basis for GBTG shares, and as such, we valued our investment based on the GBTG’s share price at the end of the first quarter of 2023, which resulted in a loss of $9 million within other, net in our consolidated statements of operations during the three months ended March 31, 2023. For the three months ended March 31, 2022, we recorded a loss of approximately $2 million related to this investment. Assets Measured at Fair Value on a Non-recurring Basis Our non-financial assets, such as goodwill, intangible assets and property and equipment, as well as equity method investments for which we have not elected the fair value option, are adjusted to fair value when an impairment charge is recognized or the underlying investment is sold. Such fair value measurements are based predominately on Level 3 inputs. We measure our minority investments that do not have readily determinable fair values at cost less impairment, adjusted by observable price changes with changes recorded within other, net on our consolidated statements of operations. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth our outstanding debt: March 31, December 31, (In millions) 6.25% senior notes due 2025 $ 1,037 $ 1,036 5.0% senior notes due 2026 747 746 0% convertible senior notes due 2026 990 989 4.625% senior notes due 2027 745 745 3.8% senior notes due 2028 995 995 3.25% senior notes due 2030 1,237 1,237 2.95% senior notes due 2031 492 492 Long-term debt (1) $ 6,243 $ 6,240 _______________ (1) Net of applicable discounts and debt issuance costs. Long-term Debt Additional information about our $1 billion aggregate principal amount of unsecured 0% convertible senior notes due 2026 (the “Convertible Notes”) and our other outstanding senior notes (collectively the “Senior Notes”), s ee Note 7 – Debt of the Notes to Consolidated Financial Statements in our 2022 Form 10-K. All of our outstanding Senior Notes are senior unsecured obligations issued by Expedia Group and guaranteed by certain domestic Expedia Group subsidiaries. The Senior Notes rank equally in right of payment with all of our existing and future unsecured and unsubordinated obligations of Expedia Group and the guarantor subsidiaries. In addition, the Senior Notes include covenants that limit our ability to (i) create certain liens, (ii) enter into sale/leaseback transactions and (iii) merge or consolidate with or into another entity or transfer substantially all of our assets. The Senior Notes are redeemable in whole or in part, at the option of the holders thereof, upon the occurrence of certain change of control triggering events at a purchase price in cash equal to 101% of the principal plus accrued and unpaid interest. Accrued interest related to the Senior Notes was $48 million and $73 million as of March 31, 2023 and December 31, 2022. Estimated Fair Value. The total estimated fair value of our Senior Notes was approximately $5.0 billion and $4.9 billion as of March 31, 2023 and December 31, 2022. Additionally, the estimated fair value of the Convertible Notes was $895 million and $871 million as of March 31, 2023 and December 31, 2022. The fair value was determined based on quoted market prices in less active markets and is categorized according as Level 2 in the fair value hierarchy. Credit Facility As of March 31, 2023, Expedia Group maintained a $2.5 billion revolving credit facility that matures in April 2027. As of March 31, 2023 and December 31, 2022, we had no revolving credit facility borrowings outstanding. Loans under the revolving credit facility bear interest at a rate equal to an index rate plus a margin (a) in the case of term benchmark loans, ranging from 1.00% to 1.75% per annum, depending on Expedia Group’s credit ratings, and (b) in the case of base rate loans, ranging from 0.00% to 0.75% per annum, depending on Expedia Group’s credit ratings. A fee is payable quarterly in respect of undrawn commitments under the revolving credit facility at a rate ranging from 0.10% to 0.25% per annum, depending on Expedia Group’s credit ratings. The terms of the revolving credit facility require Expedia Group to not exceed a specified maximum consolidated leverage ratio as of the end of each fiscal quarter. The revolving credit facility has a $120 million letter of credit (“LOC”) sublimit, and the amount of LOCs issued under the facility reduced the credit amount available. Outstanding stand-by LOCs issued under the facility were $41 million and $38 million as of March 31, 2023 and December 31, 2022, respectively. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Treasury Stock As of March 31, 2023, the Company’s treasury stock was comprised of approximately 135.0 million common stock and 7.3 million Class B shares. As of December 31, 2022, the Company’s treasury stock was comprised of approximately 130.5 million shares of common stock and 7.3 million Class B shares. Share Repurchases. In 2019, the Board of Directors and the Executive Committee, pursuant to a delegation of authority from the Board, authorized the repurchase of up to 20 million shares of our common stock. During the three months ended March 31, 2023, we repurchased, through open market transactions, 4.3 million shares under these authorizations for the total cost of $448 million, excluding transaction costs, representing an average repurchase price of $103.66 per share. As of March 31, 2023, 13.8 million shares remain authorized for repurchase with no fixed termination date for the repurchases. Subsequent to the end of the first quarter of 2023, we repurchased an additional 1.7 million shares for a total cost of $152 million, excluding transaction costs, representing an average purchase price of $93.04 per share. Stock-based Awards Stock-based compensation expense relates primarily to expense for restricted stock units (“RSUs”), performance stock units (“PSUs”) and stock options. As of March 31, 2023, we had stock-based awards outstanding representing approximately 14 million shares of our common stock, consisting of approximately 11 million RSUs and PSUs and options to purchase approximately 4 million shares of our common stock with a weighted average exercise price of $139.62 and weighted average remaining life of 3.6 years. Annual employee stock-based award grants typically occur during the first quarter of each year and generally vest over four years. During the three months ended March 31, 2023, we granted approximately 5 million RSUs and PSUs. Accumulated Other Comprehensive Income (Loss) |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per ShareBasic earnings per share is calculated using our weighted-average outstanding common shares. The earnings per share amounts are the same for common stock and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards and common stock warrants as determined under the treasury stock method and of our Convertible Notes using the if-converted method. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We determine our provision for income taxes for interim periods using an estimate of our annual effective tax rate. We record any changes affecting the estimated annual effective tax rate in the interim period in which the change occurs, including discrete items. For the three months ended March 31, 2023, the effective tax rate was (128.5%) measured against a pre-tax loss, compared to a 40.9% effective tax rate measured against a pre-tax loss for the three months ended March 31, 2022. The change in the effective tax rate was primarily due to a lower quarter-to-date pre-tax loss and the discrete tax expense effect of the TripAdvisor audit assessment discussed below. We are subject to taxation in the United States and foreign jurisdictions. Our income tax filings are regularly examined by federal, state and foreign tax authorities. During the fourth quarter of 2019, the Internal Revenue Service (“IRS”) issued final adjustments related to transfer pricing with our foreign subsidiaries for our 2011 to 2013 tax years. The adjustments would increase our U.S. taxable income by $696 million, which would result in federal tax of approximately $244 million, subject to interest. We do not agree with the position of the IRS. We have formally filed a protest for our 2011 to 2013 tax years and the case is currently in Appeals. During the fourth quarter of 2022, the IRS issued similar proposed adjustments related to transfer pricing with our foreign subsidiaries for our 2014 to 2016 tax years. The adjustments would increase our U.S. taxable income by $1.232 billion, which would result in federal tax of approximately $431 million, subject to interest, including any offsetting correlative adjustments. We do not agree with the position of the IRS and intend to formally file a protest. We are also under examination by the IRS for our 2017 to 2020 tax years. We believe it is reasonably possible that the audit of the 2011 to 2013 tax years will conclude within the next 12 months. On December 20, 2011, we completed a spin-off of TripAdvisor into a separate publicly-traded corporation. Pursuant to the tax sharing agreement between Expedia Group and TripAdvisor, TripAdvisor is responsible for its potential tax liabilities in connection with any consolidated income tax returns filed as a part of Expedia Group’s consolidated income tax return prior to or in connection with the spin-off. TripAdvisor is required to indemnify Expedia Group for any such taxes, including interest, penalties, legal, and professional fees. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings In the ordinary course of business, we are a party to various lawsuits. Management does not expect these lawsuits to have a material impact on the liquidity, results of operations, or financial condition of Expedia Group. We also evaluate other potential contingent matters, including value-added tax, excise tax, sales tax, transient occupancy or accommodation tax and similar matters. We do not believe that the aggregate amount of liability that could be reasonably possible with respect to these matters would have a material adverse effect on our financial results; however, litigation is inherently uncertain and the actual losses incurred in the event that our legal proceedings were to result in unfavorable outcomes could have a material adverse effect on our business and financial performance. Litigation Relating to Occupancy Taxes. One hundred three lawsuits have been filed by or against cities, counties and states involving hotel occupancy and other taxes. Eight lawsuits are currently active. These lawsuits are in various stages and we continue to defend against the claims made in them vigorously. With respect to the principal claims in these matters, we believe that the statutes or ordinances at issue do not apply to us or the services we provide and, therefore, that we do not owe the taxes that are claimed to be owed. We believe that the statutes or ordinances at issue generally impose occupancy and other taxes on entities that own, operate or control hotels (or similar businesses) or furnish or provide hotel rooms or similar accommodations. To date, forty-nine of these lawsuits have been dismissed. Some of these dismissals have been without prejudice and, generally, allow the governmental entity or entities to seek administrative remedies prior to pursuing further litigation. Thirty-four dismissals were based on a finding that we and the other defendants were not subject to the local tax ordinance or that the local government lacked standing to pursue its claims. As a result of this litigation and other attempts by certain jurisdictions to levy such taxes, we have established a reserve for the potential settlement of issues related to hotel occupancy and other taxes, consistent with applicable accounting principles and in light of all current facts and circumstances, in the amount of $45 million and $44 million as of March 31, 2023 and December 31, 2022, respectively. Our settlement reserve is based on our best estimate of probable losses and the ultimate resolution of these contingencies may be greater or less than the liabilities recorded. An estimate for a reasonably possible loss or range of loss in excess of the amount reserved cannot be made. Changes to the settlement reserve are included within legal reserves, occupancy tax and other in the consolidated statements of operations. Pay-to-Play. Certain jurisdictions may assert that we are required to pay any assessed taxes prior to being allowed to contest or litigate the applicability of the ordinances. This prepayment of contested taxes is referred to as “pay-to-play.” Payment of these amounts is not an admission that we believe we are subject to such taxes and, even when such payments are made, we continue to defend our position vigorously. If we prevail in the litigation, for which a pay-to-play payment was made, the jurisdiction collecting the payment will be required to repay such amounts and also may be required to pay interest. We are in various stages of inquiry or audit with various tax authorities, some of which, including in the City of Los Angeles regarding hotel occupancy taxes, may impose a pay-to-play requirement to challenge an adverse inquiry or audit result in court. Matters Relating to International VAT . We are in various stages of inquiry or audit in multiple European Union jurisdictions regarding the application of VAT to our European Union related transactions. While we believe we comply with applicable VAT laws, rules and regulations in the relevant jurisdictions, the tax authorities may determine that we owe additional taxes. In certain jurisdictions, including the United Kingdom, we may be required to “pay-to-play” any VAT assessment prior to contesting its validity. While we believe that we will be successful based on the merits of our positions with regard to audits in pay-to-play jurisdictions, it is nevertheless reasonably possible that we could be required to pay any assessed amounts in order to contest or litigate the applicability of any assessments and an estimate for a reasonably possible amount of any such payments cannot be made. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have the following reportable segments: B2C (formerly referred to as Retail), B2B, and trivago. Our B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia.com, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. Our B2B segment is comprised of Expedia Partner Solutions, which offers private label and co-branded products to make travel services available to travelers through third-party company branded websites. Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch websites. We determined our operating segments based on how our chief operating decision makers manage our business, make operating decisions and evaluate operating performance. Our primary operating metric is Adjusted EBITDA. Adjusted EBITDA for our B2C and B2B segments includes allocations of certain expenses, primarily related to our global travel supply organization and the majority of costs from our product and technology platform, as well as facility costs and the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, certain information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change. Our segment disclosure includes intersegment revenues, which primarily consist of advertising and media services provided by our trivago segment to our B2C segment. These intersegment transactions are recorded by each segment at amounts that approximate fair value as if the transactions were between third parties, and therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within Corporate and Eliminations in the table below. Corporate and Eliminations also includes unallocated corporate functions and expenses. In addition, we record amortization of intangible assets and any related impairment, as well as stock-based compensation expense, restructuring and related reorganization charges, legal reserves, occupancy tax and other, and other items excluded from segment operating performance in Corporate and Eliminations. Such amounts are detailed in our segment reconciliation below. The following tables present our segment information for the three months ended March 31, 2023 and 2022. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers. Three months ended March 31, 2023 B2C B2B trivago Corporate & Total (In millions) Third-party revenue $ 1,921 $ 668 $ 76 $ — $ 2,665 Intersegment revenue — — 43 (43) — Revenue $ 1,921 $ 668 $ 119 $ (43) $ 2,665 Adjusted EBITDA $ 148 $ 133 $ 20 $ (116) $ 185 Depreciation (126) (25) (1) (25) (177) Amortization of intangible assets — — — (15) (15) Stock-based compensation — — — (103) (103) Legal reserves, occupancy tax and other — — — (5) (5) Realized (gain) loss on revenue hedges (4) (2) — — (6) Operating income (loss) $ 18 $ 106 $ 19 $ (264) (121) Other income, net 60 Loss before income taxes (61) Provision for income taxes (79) Net loss (140) Net income attributable to non-controlling interests (5) Net loss attributable to Expedia Group, Inc. $ (145) Three months ended March 31, 2022 B2C B2B trivago Corporate & Total (In millions) Third-party revenue $ 1,740 $ 432 $ 77 $ — $ 2,249 Intersegment revenue — — 39 (39) — Revenue $ 1,740 $ 432 $ 116 $ (39) $ 2,249 Adjusted EBITDA $ 188 $ 80 $ 25 $ (120) $ 173 Depreciation (128) (20) (2) (25) (175) Amortization of intangible assets — — — (22) (22) Stock-based compensation — — — (90) (90) Legal reserves, occupancy tax and other — — — (21) (21) Operating income (loss) $ 60 $ 60 $ 23 $ (278) (135) Other expense, net (73) Loss before income taxes (208) Provision for income taxes 85 Net loss (123) Net loss attributable to non-controlling interests 1 Net loss attributable to Expedia Group, Inc. $ (122) Revenue by Business Model and Service Type The following table presents revenue by business model and service type: Three months ended 2023 2022 (in millions) Business Model: Merchant $ 1,794 $ 1,485 Agency 666 566 Advertising, media and other 205 198 Total revenue $ 2,665 $ 2,249 Service Type: Lodging $ 2,029 $ 1,610 Air 113 74 Advertising and media 175 166 Other (1) 348 399 Total revenue $ 2,665 $ 2,249 ____________________________ (1) Other includes car rental, insurance, destination services and cruise revenue, among other revenue streams, none of which are individually material. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These accompanying financial statements present our results of operations, financial position and cash flows on a consolidated basis. The unaudited consolidated financial statements include Expedia Group, Inc., our wholly-owned subsidiaries, and entities we control, or in which we have a variable interest and are the primary beneficiary of expected cash profits or losses. We record our investments in entities that we do not control, but over which we have the ability to exercise significant influence, using the equity method or at fair value. We have eliminated significant intercompany transactions and accounts. |
Accounting Estimates | Accounting Estimates We use estimates and assumptions in the preparation of our interim unaudited consolidated financial statements in accordance with GAAP. Our estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our interim unaudited consolidated financial statements. These estimates and assumptions also affect the reported amount of net income or loss during any period. Our actual financial results could differ significantly from these estimates. The significant estimates underlying our interim unaudited consolidated financial statements include revenue recognition; recoverability of current and long-lived assets, intangible assets and goodwill; income and transactional taxes, such as potential settlements related to occupancy and excise taxes; loss contingencies; deferred loyalty rewards; stock-based compensation; accounting for derivative instruments and provisions for credit losses, customer refunds and chargebacks. |
Reclassifications | ReclassificationsWe have reclassified prior period financial statements to conform to the current period presentation. |
Seasonality | Seasonality We generally experience seasonal fluctuations in the demand for our travel services. For example, traditional leisure travel bookings are generally the highest in the first three quarters as travelers plan and book their spring, summer and winter holiday travel. The number of bookings typically decreases in the fourth quarter. Since revenue for most of our travel services, including merchant and agency hotel, is recognized as the travel takes place rather than when it is booked, revenue typically lags bookings by several weeks for our hotel business and can be several months or more for our alternative accommodations business. Historically, Vrbo has seen seasonally stronger bookings in the first quarter of the year, with the relevant stays occurring during the peak summer travel months. The seasonal revenue impact is exacerbated with respect to income by the nature of our variable cost of revenue and direct sales and marketing costs, which we typically realize in closer alignment to |
Recent Adopted Accounting Policies | Recent Adopted Accounting Policies As of January 1, 2023, we adopted the new guidance related to recognizing and measuring contract assets and contract liabilities from contracts with customers acquired in a business combination. The new guidance requires acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination as compared to current GAAP where an acquirer generally recognizes such items at fair value on the acquisition date. The adoption of this new guidance had no impact on our consolidated financial statements. |
Revenue | RevenuePrepaid Merchant Bookings. We classify payments made to suppliers in advance of Vrbo performance obligations as prepaid merchant bookings included within prepaid and other current assets.Deferred Merchant Bookings. We classify cash payments received in advance of our performance obligations as deferred merchant bookings. Practical Expedients and Exemptions. We have used the portfolio approach to account for our loyalty points as the rewards programs share similar characteristics within each program in relation to the value provided to the traveler and their breakage patterns. Using this portfolio approach is not expected to differ materially from applying the guidance to individual contracts. However, we will continue to assess and refine, if necessary, how a portfolio within each rewards program is defined. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Cash, Restricted Cash and Cash Equivalents | Cash, Restricted Cash, and Cash Equivalents Our cash and cash equivalents include cash and liquid financial instruments, including money market funds and term deposit investments, with maturities of three months or less when purchased. |
Accounts Receivable and Allowances | Accounts Receivable and AllowancesAccounts receivable are generally due within thirty days and are recorded net of an allowance for expected uncollectible amounts. We consider accounts outstanding longer than the contractual payment terms as past due. The risk characteristics we generally review when analyzing our accounts receivable pools primarily include the type of receivable (for example, credit card vs hotel collect), collection terms and historical or expected credit loss patterns. For each pool, we make estimates of expected credit losses for our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history continually updated for new collections data, the credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions and other factors that may affect our ability to collect from customers. The provision for estimated credit losses is recorded as cost of revenue in our consolidated statements of operations. |
Fair Value Measurements | We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash equivalents and investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, a Level 2 input. Valuation of the cross-currency interest rate swaps is based on foreign currency exchange rates and the current interest rate curve, Level 2 inputs. We use foreign currency forward contracts to economically hedge certain merchant revenue exposures, foreign denominated liabilities related to certain of our loyalty programs and our other foreign currency-denominated operating liabilities. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows: March 31, December 31, (in millions) Cash and cash equivalents $ 5,904 $ 4,096 Restricted cash and cash equivalents 2,483 1,755 Total cash, cash equivalents and restricted cash and cash equivalents in the consolidated statements of cash flows $ 8,387 $ 5,851 |
Schedule of Restrictions on Cash and Cash Equivalents | The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows: March 31, December 31, (in millions) Cash and cash equivalents $ 5,904 $ 4,096 Restricted cash and cash equivalents 2,483 1,755 Total cash, cash equivalents and restricted cash and cash equivalents in the consolidated statements of cash flows $ 8,387 $ 5,851 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 are classified using the fair value hierarchy in the table below: Total Level 1 Level 2 (In millions) Assets Cash equivalents: Money market funds $ 2 $ 2 $ — Term deposits 135 — 135 Derivatives: Foreign currency forward contracts 23 — 23 Cross-currency interest rate swaps 16 — 16 Investments: Term deposits 44 — 44 Equity investments 565 59 506 Total assets $ 785 $ 61 $ 724 Financial assets measured at fair value on a recurring basis as of December 31, 2022 are classified using the fair value hierarchy in the table below: Total Level 1 Level 2 (In millions) Assets Cash equivalents: Money market funds $ 3 $ 3 $ — Term deposits 188 — 188 Derivatives: Foreign currency forward contracts 15 — 15 Cross-currency interest rate swaps 21 — 21 Investments: Term deposits 48 — 48 Equity investments 564 49 515 Total assets $ 839 $ 52 $ 787 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt Outstanding | The following table sets forth our outstanding debt: March 31, December 31, (In millions) 6.25% senior notes due 2025 $ 1,037 $ 1,036 5.0% senior notes due 2026 747 746 0% convertible senior notes due 2026 990 989 4.625% senior notes due 2027 745 745 3.8% senior notes due 2028 995 995 3.25% senior notes due 2030 1,237 1,237 2.95% senior notes due 2031 492 492 Long-term debt (1) $ 6,243 $ 6,240 _______________ (1) Net of applicable discounts and debt issuance costs. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Information | The following tables present our segment information for the three months ended March 31, 2023 and 2022. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers. Three months ended March 31, 2023 B2C B2B trivago Corporate & Total (In millions) Third-party revenue $ 1,921 $ 668 $ 76 $ — $ 2,665 Intersegment revenue — — 43 (43) — Revenue $ 1,921 $ 668 $ 119 $ (43) $ 2,665 Adjusted EBITDA $ 148 $ 133 $ 20 $ (116) $ 185 Depreciation (126) (25) (1) (25) (177) Amortization of intangible assets — — — (15) (15) Stock-based compensation — — — (103) (103) Legal reserves, occupancy tax and other — — — (5) (5) Realized (gain) loss on revenue hedges (4) (2) — — (6) Operating income (loss) $ 18 $ 106 $ 19 $ (264) (121) Other income, net 60 Loss before income taxes (61) Provision for income taxes (79) Net loss (140) Net income attributable to non-controlling interests (5) Net loss attributable to Expedia Group, Inc. $ (145) Three months ended March 31, 2022 B2C B2B trivago Corporate & Total (In millions) Third-party revenue $ 1,740 $ 432 $ 77 $ — $ 2,249 Intersegment revenue — — 39 (39) — Revenue $ 1,740 $ 432 $ 116 $ (39) $ 2,249 Adjusted EBITDA $ 188 $ 80 $ 25 $ (120) $ 173 Depreciation (128) (20) (2) (25) (175) Amortization of intangible assets — — — (22) (22) Stock-based compensation — — — (90) (90) Legal reserves, occupancy tax and other — — — (21) (21) Operating income (loss) $ 60 $ 60 $ 23 $ (278) (135) Other expense, net (73) Loss before income taxes (208) Provision for income taxes 85 Net loss (123) Net loss attributable to non-controlling interests 1 Net loss attributable to Expedia Group, Inc. $ (122) |
Schedule of Revenue by Services | The following table presents revenue by business model and service type: Three months ended 2023 2022 (in millions) Business Model: Merchant $ 1,794 $ 1,485 Agency 666 566 Advertising, media and other 205 198 Total revenue $ 2,665 $ 2,249 Service Type: Lodging $ 2,029 $ 1,610 Air 113 74 Advertising and media 175 166 Other (1) 348 399 Total revenue $ 2,665 $ 2,249 ____________________________ |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Prepaid merchant bookings | $ 671 | $ 480 |
Deferred merchant bookings | 11,036 | 7,151 |
Deferred revenue | 186 | 163 |
Deferred Merchant Bookings | ||
Disaggregation of Revenue [Line Items] | ||
Deferred merchant bookings | 10,100 | 6,200 |
Deferred merchant bookings recognized during period | 3,400 | |
Revenue recognized during period | 518 | |
Deferred Loyalty Rewards | ||
Disaggregation of Revenue [Line Items] | ||
Deferred merchant bookings | 959 | 961 |
Revenue recognized during period | 213 | |
Deferred Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized during period | 63 | |
Deferred revenue | $ 186 | $ 163 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 5,904 | $ 4,096 | ||
Restricted cash and cash equivalents | 2,483 | 1,755 | ||
Total cash, cash equivalents and restricted cash and cash equivalents in the consolidated statements of cash flows | $ 8,387 | $ 5,851 | $ 8,135 | $ 5,805 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Accounts Receivable and Allowances (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |
Expense for allowance for expected uncollectible amounts | $ 12 |
Write-offs | $ 7 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investments: | ||
Total assets | $ 785 | $ 839 |
Foreign currency forward contracts | ||
Derivatives: | ||
Derivatives: | 23 | 15 |
Cross-currency interest rate swaps | ||
Derivatives: | ||
Derivatives: | 16 | 21 |
Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | 2 | 3 |
Term deposits | ||
Cash equivalents: | ||
Cash equivalents: | 135 | 188 |
Investments: | ||
Investments: | 44 | 48 |
Equity investments | ||
Investments: | ||
Investments: | 565 | 564 |
Level 1 | ||
Investments: | ||
Total assets | 61 | 52 |
Level 1 | Foreign currency forward contracts | ||
Derivatives: | ||
Derivatives: | 0 | 0 |
Level 1 | Cross-currency interest rate swaps | ||
Derivatives: | ||
Derivatives: | 0 | 0 |
Level 1 | Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | 2 | 3 |
Level 1 | Term deposits | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Investments: | ||
Investments: | 0 | 0 |
Level 1 | Equity investments | ||
Investments: | ||
Investments: | 59 | 49 |
Level 2 | ||
Investments: | ||
Total assets | 724 | 787 |
Level 2 | Foreign currency forward contracts | ||
Derivatives: | ||
Derivatives: | 23 | 15 |
Level 2 | Cross-currency interest rate swaps | ||
Derivatives: | ||
Derivatives: | 16 | 21 |
Level 2 | Money market funds | ||
Cash equivalents: | ||
Cash equivalents: | 0 | 0 |
Level 2 | Term deposits | ||
Cash equivalents: | ||
Cash equivalents: | 135 | 188 |
Investments: | ||
Investments: | 44 | 48 |
Level 2 | Equity investments | ||
Investments: | ||
Investments: | $ 506 | $ 515 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 02, 2022 EUR (€) instrument | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Net gains (losses) from foreign currency forward contracts | $ 20 | $ (34) | |||
Gain (loss) on minority equity investments, net | 1 | 21 | |||
Carrying value of cost method investments | $ 330 | 330 | $ 330 | ||
Cumulative unrealized upward adjustments | 2 | 2 | |||
Cumulative unrealized downward adjustments | $ 105 | 105 | |||
Nonrecurring Basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment losses related to a minority investment | $ 0 | 0 | |||
Global Business Travel Group | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity interest maintained | 16% | ||||
Exchange ratio | 1 | ||||
Despegar.com | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain (loss) on minority equity investments, net | $ 10 | 23 | |||
Global Business Travel Group | Equity investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain (loss) on minority equity investments, net | (9) | (2) | |||
Foreign currency forward contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional amount of derivatives | $ 4,700 | 4,700 | |||
Foreign currency forward contracts | 23 | 23 | 15 | ||
Gross forward asset | 38 | 38 | 29 | ||
Cross-currency interest rate swaps | Designated as Hedging Instrument | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional amount of derivatives | € | € 300,000,000 | ||||
Fixed-to fixed cross currency interest rate swaps entered into | instrument | 2 | ||||
Fair value of derivative, asset | $ 16 | 16 | $ 21 | ||
Gain on derivative recognized in interest expense | $ 1 | $ 0 |
Debt - Long Term Debt Outstandi
Debt - Long Term Debt Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 6,243 | $ 6,240 |
6.25% senior notes due 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 6.25% | 6.25% |
Long-term debt | $ 1,037 | $ 1,036 |
5.0% senior notes due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 5% | 5% |
Long-term debt | $ 747 | $ 746 |
0% convertible senior notes due 2026 | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 0% | 0% |
Long-term debt | $ 990 | $ 989 |
4.625% senior notes due 2027 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 4.625% | 4.625% |
Long-term debt | $ 745 | $ 745 |
3.8% senior notes due 2028 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 3.80% | 3.80% |
Long-term debt | $ 995 | $ 995 |
3.25% senior notes due 2030 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 3.25% | 3.25% |
Long-term debt | $ 1,237 | $ 1,237 |
2.95% senior notes due 2031 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, interest rate | 2.95% | 2.95% |
Long-term debt | $ 492 | $ 492 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Convertible Debt | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes | $ 895,000,000 | $ 871,000,000 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 101% | |
Accrued interest related to senior notes | $ 48,000,000 | 73,000,000 |
Senior Notes | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Fair value of senior notes | 5,000,000,000 | $ 4,900,000,000 |
0% convertible senior notes due 2026 | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Senior unsecured notes principal amount | $ 1,000,000,000 | |
Debt, interest rate | 0% | 0% |
New Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Letters of credit issued under the credit facility | $ 41,000,000 | $ 38,000,000 |
New Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 2,500,000,000 | |
New Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 1% | |
Commitment fee, percent | 0.10% | |
New Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Minimum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 0% | |
New Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 1.75% | |
Commitment fee, percent | 0.25% | |
New Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Maximum | Base Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 0.75% | |
New Revolving Credit Facility | Line of Credit | Foreign Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility borrowings outstanding | $ 0 | $ 0 |
New Revolving Credit Facility | Line of Credit | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 120,000,000 |
Stockholders_ Equity - Treasury
Stockholders’ Equity - Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
May 04, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock (in shares) | 142,289,000 | 137,783,000 | ||
Authorized share repurchase (up to) (in shares) | 20,000,000 | |||
Common stock repurchases (in shares) | 4,300,000 | |||
Treasury stock, value, acquired, cost method | $ 448 | |||
Average repurchase price per share (in dollars per share) | $ 103.66 | |||
Number of shares authorized and remaining under the repurchase program (in shares) | 13,800,000 | |||
Subsequent Event | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchases (in shares) | 1,700,000 | |||
Treasury stock, value, acquired, cost method | $ 152 | |||
Average repurchase price per share (in dollars per share) | $ 93.04 | |||
Common stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock (in shares) | 135,000,000 | 130,500,000 | ||
Class B Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock (in shares) | 7,300,000 | 7,300,000 |
Stockholders_ Equity - Stock-ba
Stockholders’ Equity - Stock-based Awards (Details) shares in Millions | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Equity [Abstract] | |
Stock-based awards, shares outstanding (in shares) | 14 |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, number (in shares) | 11 |
Number of options outstanding (in shares) | 4 |
Options, weighted average exercise price (dollars per share) | $ / shares | $ 139.62 |
Weighted average remaining contractual term | 3 years 7 months 6 days |
Vesting period | 4 years |
Granted in period (in shares) | 5 |
Stockholders_ Equity - Accumula
Stockholders’ Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Cross-currency interest rate swaps | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation (losses) gains, net of tax | $ 12 | $ 16 |
Foreign currency translation (losses) gains, before tax | 16 | 21 |
2.5% senior notes due 2022 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Foreign currency translation (losses) gains, net of tax | 7 | 7 |
Foreign currency translation (losses) gains, before tax | $ 10 | $ 10 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding stock awards excluded from calculation of diluted earnings per share (in shares) | 14 | 12 |
Convertible Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding stock awards excluded from calculation of diluted earnings per share (in shares) | 4 | 4 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2019 | |
Income Tax Examination [Line Items] | ||||
Income tax expense (benefit) rate | 128.50% | (40.90%) | ||
IRS | ||||
Income Tax Examination [Line Items] | ||||
Possible increase in U.S. taxable income | $ 1,232 | $ 696 | ||
Possible additional federal tax expense | $ 431 | $ 244 | ||
Liability adjustment for tax expense | $ 123 | |||
Tax provision | $ 69 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - Litigation relating to occupancy tax $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) lawsuit | Dec. 31, 2022 USD ($) | |
Commitment And Contingencies [Line Items] | ||
Number of lawsuits filed | 103 | |
Number of lawsuits currently active | 8 | |
Number of lawsuits dismissed to date | 49 | |
Number of dismissals based on finding that defendant was not subject to local hotel occupancy tax or the local government lacked standing to pursue claims | 34 | |
Reserve for legal contingencies | $ | $ 45 | $ 44 |
Segment Information (Detail)
Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 2,665 | $ 2,249 |
Adjusted EBITDA | 185 | 173 |
Depreciation | (177) | (175) |
Amortization of intangible assets | (15) | (22) |
Stock-based compensation | (103) | (90) |
Legal reserves, occupancy tax and other | (5) | (21) |
Realized (gain) loss on revenue hedges | (6) | |
Operating income (loss) | (121) | (135) |
Other income, net | 60 | (73) |
Loss before income taxes | (61) | (208) |
Provision for income taxes | (79) | 85 |
Net loss | (140) | (123) |
Net (income) loss attributable to non-controlling interests | (5) | 1 |
Net loss attributable to Expedia Group, Inc. | (145) | (122) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
Intersegment revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | (43) | (39) |
Corporate & Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (43) | (39) |
Adjusted EBITDA | (116) | (120) |
Depreciation | (25) | (25) |
Amortization of intangible assets | (15) | (22) |
Stock-based compensation | (103) | (90) |
Legal reserves, occupancy tax and other | (5) | (21) |
Realized (gain) loss on revenue hedges | 0 | |
Operating income (loss) | (264) | (278) |
B2C | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,921 | 1,740 |
B2C | Intersegment revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
B2C | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,921 | 1,740 |
Adjusted EBITDA | 148 | 188 |
Depreciation | (126) | (128) |
Amortization of intangible assets | 0 | 0 |
Stock-based compensation | 0 | 0 |
Legal reserves, occupancy tax and other | 0 | 0 |
Realized (gain) loss on revenue hedges | (4) | |
Operating income (loss) | 18 | 60 |
B2B | ||
Segment Reporting Information [Line Items] | ||
Revenue | 668 | 432 |
B2B | Intersegment revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
B2B | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 668 | 432 |
Adjusted EBITDA | 133 | 80 |
Depreciation | (25) | (20) |
Amortization of intangible assets | 0 | 0 |
Stock-based compensation | 0 | 0 |
Legal reserves, occupancy tax and other | 0 | 0 |
Realized (gain) loss on revenue hedges | (2) | |
Operating income (loss) | 106 | 60 |
trivago | ||
Segment Reporting Information [Line Items] | ||
Revenue | 76 | 77 |
trivago | Intersegment revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 43 | 39 |
trivago | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 119 | 116 |
Adjusted EBITDA | 20 | 25 |
Depreciation | (1) | (2) |
Amortization of intangible assets | 0 | 0 |
Stock-based compensation | 0 | 0 |
Legal reserves, occupancy tax and other | 0 | 0 |
Realized (gain) loss on revenue hedges | 0 | |
Operating income (loss) | $ 19 | $ 23 |
Segment Information - Revenue b
Segment Information - Revenue by Business Model and Service Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 2,665 | $ 2,249 |
Lodging | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,029 | 1,610 |
Air | ||
Segment Reporting Information [Line Items] | ||
Revenue | 113 | 74 |
Advertising and media | ||
Segment Reporting Information [Line Items] | ||
Revenue | 175 | 166 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 348 | 399 |
Merchant | Sales Channel, Through Intermediary | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,794 | 1,485 |
Agency | Sales Channel, Through Intermediary | ||
Segment Reporting Information [Line Items] | ||
Revenue | 666 | 566 |
Advertising, media and other | Sales Channel, Through Intermediary | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 205 | $ 198 |