Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36603 | |
Entity Registrant Name | LIBERTY TRIPADVISOR HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-3337365 | |
Entity Address, Address Line One | 12300 Liberty Boulevard | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | 720 | |
Local Phone Number | 875-5200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001606745 | |
Amendment Flag | false | |
Series A | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Series A common stock | |
Trading Symbol | LTRPA | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 72,290,228 | |
Series B | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Series B common stock | |
Trading Symbol | LTRPB | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 3,216,047 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 720 | $ 423 |
Accounts receivable and contract assets, net of allowance for doubtful accounts of $34 million and $33 million, respectively | 97 | 83 |
Income tax receivable | 50 | 50 |
Other current assets | 25 | 23 |
Total current assets | 892 | 579 |
Property and equipment, net | 126 | 132 |
Intangible assets not subject to amortization (note 6): | ||
Goodwill | 2,230 | 2,240 |
Trademarks | 731 | 732 |
Intangible assets not subject to amortization | 2,961 | 2,972 |
Intangible assets subject to amortization, net | 182 | 202 |
Other assets, at cost, net of accumulated amortization | 197 | 201 |
Total assets | 4,358 | 4,086 |
Current liabilities: | ||
Deferred merchant and other payables | 84 | 54 |
Deferred revenue | 38 | 28 |
Accrued liabilities and other current liabilities | 186 | 160 |
Total current liabilities | 308 | 242 |
Long-term debt, including $301 million measured at fair value (note 5) | 1,173 | 532 |
Deferred income tax liabilities | 147 | 180 |
Financial instrument liabilities (note 4) | 339 | 14 |
Preferred stock liability (note 6) | 199 | |
Other liabilities | 337 | 339 |
Total liabilities | 2,503 | 1,307 |
Redeemable preferred stock, $.01 par value. Authorized shares 50,000,000; issued and outstanding 198,079 shares at March 31, 2021 and 325,000 shares at December 31, 2020 (note 6) | 472 | |
Equity: | ||
Additional paid-in capital | 289 | 257 |
Accumulated other comprehensive earnings (loss), net of taxes | (21) | (23) |
Retained earnings | (738) | (278) |
Total stockholders' equity | (469) | (43) |
Noncontrolling interests in equity of subsidiaries | 2,324 | 2,350 |
Total equity | 1,855 | 2,307 |
Commitments and contingencies (note 8) | ||
Total liabilities, redeemable preferred stock and equity | 4,358 | 4,086 |
Series A | ||
Equity: | ||
Common stock value | 1 | 1 |
Series B | ||
Equity: | ||
Common stock value | ||
Series C | ||
Equity: | ||
Common stock value |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts receivables and contract assets, allowance for doubtful accounts | $ 34,000,000 | $ 33,000,000 |
Long-term Debt, Fair Value | 301,000,000 | |
Redeemable preferred stock, par value | $ 0.01 | $ 0.01 |
Redeemable preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Redeemable preferred stock, shares issued | 198,079 | 325,000 |
Redeemable preferred stock, shares outstanding | 198,079 | 325,000 |
Series A | ||
Equity: | ||
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock shares issued | 72,290,228 | 72,227,256 |
Common stock, shares outstanding | 72,290,228 | 72,227,256 |
Series B | ||
Equity: | ||
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock shares issued | 3,216,047 | 2,973,665 |
Common stock, shares outstanding | 3,216,047 | 2,973,665 |
Series C | ||
Equity: | ||
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock shares issued | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements of Operations | ||
Revenue, Product and Service [Extensible List] | us-gaap:ServiceMember | us-gaap:ServiceMember |
Total revenue, net | $ 123 | $ 278 |
Operating costs and expenses: | ||
Operating expense, including stock-based compensation (note 2) | 67 | 88 |
Selling, general and administrative, including stock-based compensation (note 2) | 115 | 182 |
Depreciation and amortization | 38 | 43 |
Restructuring and other related reorganization costs | 9 | |
Total operating costs and expenses | 220 | 322 |
Operating income (loss) | (97) | (44) |
Other income (expense): | ||
Interest expense | (11) | (7) |
Realized and unrealized gains (losses) on financial instruments | (65) | 2 |
Other, net | (2) | (3) |
Total other income (expense) | (78) | (8) |
Earnings (loss) before income taxes | (175) | (52) |
Income tax (expense) benefit | 17 | 14 |
Net earnings (loss) | (158) | (38) |
Less net earnings (loss) attributable to noncontrolling interests | (68) | (19) |
Net earnings (loss) attributable to Liberty TripAdvisor Holdings, Inc. shareholders | (90) | (19) |
Net earnings (loss) available to common shareholders (note 3) | $ (460) | $ (25) |
Basic net earnings (loss) attributable to Series A and Series B Liberty TripAdvisor Holdings, Inc. shareholders per common share (note 3): | $ (6.13) | $ (0.33) |
Diluted net earnings (loss) attributable to Series A and Series B Liberty TripAdvisor Holdings, Inc. shareholders per common share (note 3): | $ (6.13) | $ (0.33) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements of Comprehensive Earnings (Loss) | ||
Net earnings (loss) | $ (158) | $ (38) |
Other comprehensive earnings (loss), net of taxes: | ||
Foreign currency translation adjustments | (12) | (27) |
Credit risk on fair value debt instruments gains (losses) | 4 | |
Other comprehensive earnings (loss) | (8) | (27) |
Comprehensive earnings (loss) | (166) | (65) |
Less comprehensive earnings (loss) attributable to the noncontrolling interests | (78) | (40) |
Comprehensive earnings (loss) attributable to Liberty TripAdvisor Holdings, Inc. shareholders | $ (88) | $ (25) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ (158) | $ (38) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities | ||
Depreciation and amortization | 38 | 43 |
Stock-based compensation | 30 | 27 |
Realized and unrealized (gains) losses on financial instruments, net | 65 | (2) |
Deferred income tax expense (benefit) | (24) | 7 |
Other charges (credits), net | (5) | 1 |
Changes in operating assets and liabilities | ||
Current and other assets | (3) | 5 |
Payables and other liabilities | 37 | (125) |
Net cash provided (used) by operating activities | (20) | (82) |
Cash flows from investing activities: | ||
Capital expended for property and equipment, including internal-use software and website development | (10) | (20) |
Net cash provided (used) by investing activities | (10) | (20) |
Cash flows from financing activities: | ||
Borrowings of debt | 645 | 740 |
Repayments of debt | (352) | |
Repurchase of Series A Preferred Stock | (252) | |
Shares repurchased by subsidiary | (115) | |
Payment of withholding taxes on net share settlements of equity awards | (23) | (14) |
Issuance of redeemable preferred stock | 325 | |
Subsidiary purchase of capped calls | (35) | |
Other financing activities, net | (6) | (10) |
Net cash provided (used) by financing activities | 329 | 574 |
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash | (2) | (1) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 297 | 471 |
Cash, cash equivalents and restricted cash at beginning of period | 423 | 341 |
Cash, cash equivalents and restricted cash at end of period | $ 720 | $ 812 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Equity - USD ($) $ in Millions | Series ACommon Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Earnings (Loss) | Retained Earnings | Noncontrolling Interest in Equity of Subsidiaries | Total |
Balance at beginning of the period at Dec. 31, 2019 | $ 1 | $ 237 | $ (29) | $ 111 | $ 2,981 | $ 3,301 |
Net earnings (loss) | (19) | (19) | (38) | |||
Other comprehensive earnings (loss) | (6) | (21) | (27) | |||
Stock-based compensation | 9 | 24 | 33 | |||
Withholding taxes on net share settlements of stock-based compensation | (14) | (14) | ||||
Shares repurchased by subsidiary | 17 | (132) | (115) | |||
Other, net | (7) | (7) | 5 | (9) | ||
Balance at end of the period at Mar. 31, 2020 | 1 | 242 | (35) | 85 | 2,838 | 3,131 |
Balance at beginning of the period at Dec. 31, 2020 | 1 | 257 | (23) | (278) | 2,350 | 2,307 |
Net earnings (loss) | (90) | (68) | (158) | |||
Other comprehensive earnings (loss) | 2 | (10) | (8) | |||
Stock-based compensation | 9 | 25 | 34 | |||
Withholding taxes on net share settlements of stock-based compensation | (23) | (23) | ||||
Shares issued by subsidiary | (6) | 13 | 7 | |||
Preferred stock adjustment (note 6) | (370) | (370) | ||||
Subsidiary purchase of capped calls, net of tax (note 5) | (6) | (20) | (26) | |||
Preferred stock repurchased with subsidiary shares (note 6) | 58 | 34 | 92 | |||
Balance at end of the period at Mar. 31, 2021 | $ 1 | $ 289 | $ (21) | $ (738) | $ 2,324 | $ 1,855 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Basis of Presentation | |
Basis of Presentation | (1) Basis of Presentation During October 2013, the Board of Directors of Liberty Interactive Corporation and its subsidiaries (“Liberty”) (subsequently renamed Qurate Retail, Inc. (“Qurate Retail”)) authorized a plan to distribute to the stockholders of Liberty’s then-outstanding Liberty Ventures common stock shares of a wholly-owned subsidiary, Liberty TripAdvisor Holdings, Inc. (“TripCo,” “Consolidated TripCo,” the “Company,” “we,” “our” or “us,” unless the context otherwise requires) (the “TripCo Spin-Off”). TripCo does not have any operations outside of its controlling interest in its subsidiary Tripadvisor, Inc. (“Tripadvisor”). Tripadvisor’s financial performance tends to be seasonally highest in the second and third quarters of a given year, which includes the seasonal peak in consumer demand, traveler hotel and rental stays, and travel activities and experiences taken, compared to the first and fourth quarters, which represent seasonal low points. The accompanying (a) condensed consolidated balance sheet as of December 31, 2020, which has been derived from audited financial statements, and (b) the interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results for such periods have been included. Additionally, certain prior period amounts have been reclassified for comparability with the current period presentation. The results of operations for any interim period are not necessarily indicative of results for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2020 as presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company considers (i) recognition and recoverability of goodwill, intangible and long-lived assets and (ii) accounting for income taxes to be its most significant estimates. Some of the Company’s estimates and assumptions required increased judgment and carry a higher degree of variability and volatility as a result of COVID-19 (as defined below). As events continue to evolve and additional information becomes available, the Company’s estimates may change materially in future periods. While we have seen varying degrees of containment of the virus in certain countries and some signs of travel recovery, the degree of containment and the recovery in travel has varied both region-to-region on a global basis, as well as state-to-state in the U.S. For example, when COVID-19 cases resurged during the fourth quarter of 2020, government restrictions and mandates were reinstated in certain geographies globally. Tripadvisor does not know the future path or rate of global or regional COVID-19 transmission, nor does it have visibility into when remaining or reinstated restrictions will be lifted, and where additional restrictions may be implemented or reinstated in the future due to resurgence of the virus. Correspondingly, Tripadvisor does not have forward-looking visibility into what the short-term and long-term impacts may be related to consumer demand for travel, usage patterns on its platform, and travel behavior patterns when travel bans and other government restrictions and mandates are fully lifted. In the fourth quarter of 2020, multiple COVID-19 vaccines were approved for widespread distribution throughout various parts of the world, including the United States and in Europe, and in the first quarter of 2021, vaccination distribution programs were initiated around the world. Vaccine programs in Tripadvisor’s largest markets, the U.S. and U.K., appear to be progressing well, and Tripadvisor expects the same for mainland Europe in the near future. Tripadvisor is encouraged by these developments, however the timing of widespread vaccine distributions, efficacy against variants of COVID-19, whether there will be resurgences of the virus and subsequent government restrictions, and whether consumers demand for travel and hospitality services will continue to be negatively impacted remain uncertain. Therefore, the continuing extent of the impact of the COVID-19 pandemic on Tripadvisor’s business, results of operations, liquidity and financial condition remains uncertain and is dependent on future developments that cannot be accurately predicted at this time, such as the continued transmission rate of COVID-19, additional resurgences, if any, the extent and effectiveness of containment actions taken, and the ultimate impact of these and other factors on consumer demand for travel and usage patterns on Tripadvisor’s website. Tripadvisor continues to believe the travel, hospitality, restaurant, and leisure industry, and consequently its business, will continue to be adversely and materially affected while the pandemic continues and travel bans and other government restrictions and mandates continue to remain in place or be reinstated, all of which negatively impact consumer demand, sentiment and discretionary spending patterns. In addition, due to the impact of COVID-19 on Tripadvisor’s business, Tripadvisor did not experience its typical seasonal pattern for revenue and profit during the calendar quarters within the year ended December 31, 2020, which generally has continued in the three months ended March 31, 2021. COVID-19 also contributed significantly to unfavorable working capital trends and material negative operating cash flow during the year ended December 31, 2020, and that trend, although improved since 2020, has continued in the three months ending March 31, 2021. Therefore, it is difficult to predict the seasonality for the upcoming quarters, given the continued uncertainty related to the ultimate extent and duration of the economic and consumer demand impact from COVID-19, the successful widespread distribution of and execution of vaccination programs in Tripadvisor’s key markets, and the shape and timing of a recovery. In addition, significant shifts in Tripadvisor’s business mix or adverse economic conditions could result in future seasonal patterns that are different from historical trends. On March 26, 2020, TripCo issued and sold 325,000 shares of TripCo’s newly-created 8% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”) for a purchase price of $1,000 per share. On March 29, 2021 and April 6, 2021, TripCo repurchased a portion of the Series A Preferred Stock. See further discussion about the Series A Preferred Stock in note 6. Spin-Off of TripCo from Qurate Retail Following the TripCo Spin-Off, Qurate Retail and TripCo operate as separate, publicly traded companies, and neither has any stock ownership, beneficial or otherwise, in the other. In connection with the TripCo Spin-Off, TripCo entered into certain agreements, including the services agreement, the facilities sharing agreement and the tax sharing agreement, with Qurate Retail and/or Liberty Media Corporation (“Liberty Media”) (or certain of their subsidiaries) in order to govern certain of the ongoing relationships between the companies after the TripCo Spin-Off and to provide for an orderly transition. Pursuant to the services agreement (except as described below in respect to Gregory B. Maffei), Liberty Media provides TripCo with general and administrative services including legal, tax, accounting, treasury and investor relations support. TripCo reimburses Liberty Media for direct, out-of-pocket expenses incurred by Liberty Media in providing these services and TripCo pays a services fee to Liberty Media under the services agreement that is subject to adjustment semi-annually, as necessary. In December 2019, TripCo entered into an amendment to the services agreement with Liberty Media in connection with Liberty Media’s entry into a new employment arrangement with Gregory B. Maffei, TripCo’s Chairman, President and Chief Executive Officer. Under the amended services agreement, components of his compensation will either be paid directly to him by each of TripCo, Liberty Broadband Corporation, and Qurate Retail (collectively, the “Service Companies”) or reimbursed to Liberty Media, in each case, based on allocations among Liberty Media and the Service Companies set forth in the amended services agreement, currently set at 5% for the Company. Under the facilities sharing agreement, TripCo shares office space with Liberty Media and related amenities at Liberty Media’s corporate headquarters in Englewood, Colorado. The tax sharing agreement provides for the allocation and indemnification of tax liabilities and benefits between Qurate Retail and TripCo and other agreements related to tax matters. Under these agreements, approximately $1 million was reimbursable to Liberty Media for both of the three months ended March 31, 2021 and 2020. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | (2) Stock-Based Compensation TripCo Equity Awards TripCo has granted to certain of its directors and employees restricted stock units (“RSUs”) and stock options to purchase shares of TripCo common stock (collectively, “Awards”). TripCo measures the cost of employee services received in exchange for an equity classified Award based on the grant-date fair value (“GDFV”) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award, and remeasures the fair value of the Award at each reporting date. TripCo has calculated the GDFV for all of its equity classified Awards and any subsequent remeasurement of its liability classified Awards using the Black-Scholes-Merton model. TripCo estimates the expected term of the Awards based on historical exercise and forfeiture data. The volatility used in the calculation for Awards is based on the historical volatility of TripCo common stock. TripCo uses a zero dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options. Included in the accompanying condensed consolidated statements of operations are the following amounts of stock-based compensation, the majority of which relates to Tripadvisor as discussed below: Three months ended March 31, 2021 2020 amounts in millions Operating expense $ 12 11 Selling, general and administrative expense 18 16 $ 30 27 Stock-based compensation expense related to Tripadvisor was $29 million and $26 million for the three months ended March 31, 2021 and 2020, respectively. TripCo - Outstanding Awards The following tables present the number and weighted average exercise price (“WAEP”) of the Awards to purchase TripCo common stock granted to certain officers, employees and directors of the Company, as well as the weighted average remaining contractual life and aggregate intrinsic value of the Awards. Weighted average remaining Aggregate contractual intrinsic Series A WAEP life value in thousands in years in millions Outstanding at January 1, 2021 1,086 $ 7.78 Granted 27 $ 6.73 Exercised — $ — Forfeited/Cancelled (1) $ 35.05 Outstanding at March 31, 2021 1,112 $ 7.74 5.6 $ 1 Exercisable at March 31, 2021 366 $ 14.33 3.7 $ — Weighted average remaining Aggregate contractual intrinsic Series B WAEP life value in thousands in years in millions Outstanding at January 1, 2021 2,397 $ 21.93 Granted — $ — Exercised — $ — Forfeited/Cancelled — $ — Outstanding at March 31, 2021 2,397 $ 21.93 4.5 $ 39 Exercisable at March 31, 2021 2,397 $ 21.93 4.5 $ 39 During the three months ended March 31, 2021, TripCo granted 154 thousand performance-based RSUs of Series B TripCo common stock to our CEO in connection with his employment agreement. The RSUs had a GDFV of $7.07 per share at the time they were granted. The RSUs cliff vest one year from the month of grant, subject to the satisfaction of certain performance objectives. Performance objectives, which are subjective, are considered in determining the timing and amount of the compensation expense recognized. When the satisfaction of the performance objectives becomes probable, the Company records compensation expense. The probability of satisfying the performance objectives is assessed at the end of each reporting period. As of March 31, 2021, the total unrecognized compensation cost related to unvested Awards was approximately $7.9 million. Such amount will be recognized in the Company's condensed consolidated statements of operations over a weighted average period of approximately 2.2 years. As of March 31, 2021, TripCo reserved 3.5 million shares of Series A and Series B common stock for issuance under exercise privileges of outstanding stock Awards. Tripadvisor Equity Grant Awards The following table presents the number and WAEP of the Awards to purchase Tripadvisor common stock (“TRIP common stock”) granted to certain officers, employees and directors of Tripadvisor. Weighted average TripAdvisor remaining Aggregate stock contractual intrinsic options WAEP life value in thousands in years in millions Outstanding at January 1, 2021 5,615 $ 46.31 Granted 699 $ 45.92 Exercised (628) $ 34.70 Cancelled or expired (94) $ 40.93 Outstanding at March 31, 2021 5,592 $ 47.66 5.6 $ 62 Exercisable at March 31, 2021 3,203 $ 55.64 3.7 $ 22 The weighted average GDFV of options granted was $20.35 for the three months ended March 31, 2021. As of March 31, 2021, the total unrecognized compensation cost related to unvested Tripadvisor stock options was approximately $28 million and will be recognized over a weighted average period of approximately 2.6 years. The total intrinsic value of stock options exercised was $8 million and not material for the three months ended March 31, 2021 and 2020, respectively. Additionally, during the three months ended March 31, 2021, Tripadvisor granted approximately 2 million units, vested and released approximately 2 million units, and had cancellations of less than a million units, which included primarily service-based RSUs, as well as a limited number of market-based restricted stock units (“MSUs”) under the 2018 Stock and Annual Incentive Plan. The RSUs’ fair value was measured based on the quoted price of TRIP common stock at the date of grant. As the MSUs provide for vesting based upon Tripadvisor’s total shareholder return, or “TSR,” performance, the potential outcomes of future stock prices and TSR of Tripadvisor and the Nasdaq Composite Total Return Index, was used to calculate the GDFV of these awards. The weighted average GDFV for RSUs and MSUs granted, vested and released, and cancelled during the three months ended March 31, 2021 was $45.79 per share, $33.94 per share, and $32.14 per share, respectively. As of March 31, 2021, the total unrecognized compensation cost related to Tripadvisor RSUs and MSUs was approximately $212 million and will be recognized over a weighted average period of approximately 2.5 years. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share (EPS) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings (Loss) Per Common Share (EPS) | |
Earnings (Loss) Per Common Share (EPS) | (3) Earnings (Loss) Per Common Share (EPS) Basic earnings (loss) per common share (“EPS”) is computed by dividing net earnings (loss) attributable to common shareholders by the weighted average number of common shares outstanding (“WASO”) for the period. Diluted EPS presents the dilutive effect on a per share basis of potential common shares as if they had been converted at the beginning of the periods presented. Excluded from EPS for the three months ended March 31, 2021 Also excluded from EPS for the three months ended March 31, 2021, because their inclusion would be antidilutive, were 13 million shares that were contingently issuable at the Company’s election pursuant to an exercise of the Put Option (defined and described in note 6), as calculated in accordance with the terms of the Certificate of Designations for the Series A Preferred Stock. Liberty TripAdvisor Holdings Common Stock Three months ended March 31, 2021 2020 number of shares in millions Numerator Net earnings (loss) attributable to Liberty TripAdvisor Holdings, Inc. shareholders $ (90) (19) Less: Series A Preferred Stock carrying value adjustment and transaction costs 370 6 Net earnings (loss) available to common shareholders $ (460) (25) Denominator Basic WASO 75 75 Potentially dilutive shares 2 — Diluted WASO 77 75 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
Assets and Liabilities Measured at Fair Value | |
Assets and Liabilities Measured at Fair Value | (4) Assets and Liabilities Measured at Fair Value For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company does not have any material recurring assets or liabilities measured at fair value that would be considered Level 3. The Company’s assets and liabilities measured at fair value are as follows: March 31, 2021 December 31, 2020 Quoted prices Significant Quoted prices Significant in active other in active other markets for observable markets for observable identical assets inputs identical assets inputs Description Total (Level 1) (Level 2) Total (Level 1) (Level 2) amounts in millions Cash equivalents $ 42 42 — 4 4 — TripCo Exchangeable Senior Debentures due 2051 $ 301 — 301 NA NA NA Financial instrument liabilities $ 339 — 339 14 — 14 On March 9, 2020, TripSPV, a wholly owned subsidiary of the Company, entered into a variable prepaid forward transaction (the “VPF”) with a financial institution with respect to 2.4 million shares of TRIP common stock held by the Company with a forward floor price of $17.25 per share and a forward cap price of $26.84 per share. Pursuant to the terms of the VPF, TripSPV received a prepayment of $34 million on March 17, 2020 (see note 5). As a result of the Repurchase Agreement, as described in note 6, TripCo determined the Series A Preferred Stock required liability treatment and needed to be bifurcated between a debt host and derivative (the “Preferred Stock Derivative”). The Preferred Stock Derivative was recorded at fair value upon the reclassification from temporary equity. Changes in the fair values of the VPF and Preferred Stock Derivative are recognized in realized and unrealized gains (losses) on financial instruments in the condensed consolidated statements of operations. The fair value of the Debentures (as defined in note 5) is based on quoted market prices but the Debentures are not considered to be traded on “active markets.” Accordingly, they are reported in the foregoing table as Level 2 fair value. The fair value of the VPF and Preferred Stock Derivative were derived from a Black-Scholes-Merton model using observable market data as the significant inputs. Other Financial Instruments Other financial instruments not measured at fair value on a recurring basis include trade receivables, trade payables, accrued and other current liabilities, long-term debt (excluding the Debentures). With the exception of debt, the carrying amount approximates fair value due to the short maturity of these instruments as reported on our condensed consolidated balance sheets. The carrying value of a portion of our debt bears interest at a variable rate and therefore is also considered to approximate fair value. See note 5 for a description of the fair value of the Company’s fixed rate debt. Realized and Unrealized Gains (Losses) on Financial Instruments Realized and unrealized gains (losses) on financial instruments are comprised of changes in the fair value of the following: Three months ended March 31, 2021 2020 amounts in millions TripCo Exchangeable Senior Debentures due 2051 (10) — Financial instrument liabilities (55) 1 Tripadvisor foreign currency forward contracts — 1 $ (65) 2 The Company has elected to account for the Debentures using the fair value option. Changes in the fair value of the recognized in the condensed consolidated statement of operations are primarily due to market factors primarily driven by changes in the fair value of the underlying shares of the financial instruments. During the three months ended March 31, 2021, the fair value adjustment recognized in the condensed consolidated statement of operations included approximately $5 million of debt issuance costs related to the Debentures. The Company isolates the portion of the unrealized gain (loss) attributable to the change in the instrument specific credit risk and recognizes such amount in other comprehensive earnings (loss). The change in the fair value of the attributable to changes in the instrument specific credit risk was a gain of $4 million for the three months ended March 31, 2021. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt | |
Debt | (5) Debt Outstanding debt at March 31, 2021 and December 31, 2020 is summarized as follows: March 31, December 31, 2021 2020 amounts in millions TripCo Exchangeable Senior Debentures due 2051 $ 301 — TripCo variable prepaid forward 41 41 Tripadvisor Credit Facilities — — Tripadvisor Senior Notes due 2025 500 500 Tripadvisor Convertible Senior Notes due 2026 345 — Deferred financing costs (14) (9) Total consolidated TripCo debt 1,173 532 Debt classified as current — — Total long-term debt $ 1,173 532 TripCo Exchangeable Senior Debentures due 2051 On March 25, 2021, TripCo issued $300 million aggregate original principal amount of its 0.50% exchangeable senior debentures due 2051 (the “Debentures”). Pursuant to the terms of the offering, on March 31, 2021, the initial purchasers notified the Company of their intention to exercise the option to purchase $30 million aggregate original principal amount of additional Debentures. The additional Debentures were issued on April 5, 2021. Upon an exchange of Debentures, TripCo, at its option, may deliver shares of TRIP common stock or the value thereof in cash or a combination of shares of TRIP common stock and cash. Initially, 14.3299 shares of TRIP common stock are attributable to each $1,000 original principal amount of Debentures, representing an initial exchange price of approximately $69.78 for each share of TRIP common stock. A total of approximately 4.7 million shares of TRIP common stock are attributable to the Debentures. Interest is payable quarterly on March 31, June 30, September 30 and December 31 of each year, commencing June 30, 2021. The Debentures may be redeemed by TripCo, in whole or in part, on or after March 27, 2025. Holders of Debentures also have the right to require TripCo to purchase their Debentures on March 27, 2025. The redemption and purchase price will generally equal 100% of the adjusted principal amount of the Debentures plus accrued and unpaid interest to the redemption date, plus any final period distribution. As of March 31, 2021, a holder of the Debentures does not have the ability to exchange and, accordingly, the Debentures are classified as long-term debt in the consolidated balance sheets. TripCo used a portion of the net proceeds from the sale of the Debentures to fund the cash portion of the purchase price for the repurchase of a portion of the Series A Preferred Stock (see note 6 below). Variable Prepaid Forward In connection with the VPF entered into on March 9, 2020, as described in note 4, TripCo received a prepayment of $34 million on March 17, 2020. The term of the VPF is three years. At maturity, the accreted loan amount due will be approximately $42 million. As of March 31, 2021, 2.4 million shares of TRIP common stock, with a value of approximately $129 million, were pledged as collateral pursuant to the VPF contract. Tripadvisor Credit Facilities Tripadvisor is party to a credit agreement with a group of lenders, initially entered in June 2015 (as amended, the “Credit Agreement”), which, among other things, provides for a $500 million unsecured revolving credit facility (the “2015 Credit Facility”) with a maturity date of May 12, 2024. The 2015 Credit Facility, among other things, requires Tripadvisor to maintain a maximum leverage ratio and contains certain customary affirmative covenants and events of default, including a change of control. Tripadvisor amended its 2015 Credit Facility in May 2020 and December 2020 to, among other things: ● suspend the leverage ratio covenant for quarterly testing of compliance beginning in the second quarter of 2020 until the earlier of (a) the first day after June 30, 2021 through maturity on which borrowings and other revolving credit utilizations under the revolving commitments exceed $200 million, and (b) the election of Tripadvisor, at which time the leverage ratio covenant will be reinstated (the “Leverage Covenant Holiday”); and replace it with a minimum liquidity covenant during the Leverage Covenant Holiday, that requires Tripadvisor to maintain $150 million of unrestricted cash, cash equivalents and short-term investments less deferred merchant payables plus available revolver capacity; ● decrease the aggregate amount of revolving loan commitments available to $500 million from $1.2 billion; ● extend the maturity date of the 2015 Credit Facility from May 12, 2022 to May 12, 2024; and ● secure the obligations under the agreement. During the Leverage Covenant Holiday, any outstanding or future borrowings under the 2015 Credit Facility bear interest at LIBOR plus a 2.25% margin with a LIBOR floor of 1% per annum. Tripadvisor is also required to pay a quarterly commitment fee, at an applicable rate of 0.5%, on the daily unused portion of the revolving credit facility for each fiscal quarter during the Leverage Covenant Holiday and also additional fees in connection with the issuance of letters of credit. Tripadvisor may borrow from the 2015 Credit Facility in U.S. dollars, Euros and British pounds. In addition, Tripadvisor’s 2015 Credit Facility includes $15 million of borrowing capacity available for letters of credit and $40 million for Swing Line borrowings on same-day notice. As of March 31, 2021, Tripadvisor had issued $4 million of outstanding letters of credit under the 2015 Credit Facility. As of March 31, 2021 and December 31, 2020, Tripadvisor had no outstanding borrowings under the 2015 Credit Facility. For both the three months ended March 31, 2021 and 2020, Tripadvisor recorded interest expense and commitment fees on its 2015 Credit Facility of $1 million. During the three months ended March 31, 2020, Tripadvisor borrowed $700 million under the 2015 Credit Facility. These funds were drawn down as a precautionary measure to reinforce Tripadvisor’s liquidity position and preserve financial flexibility in light of uncertainty in the global markets resulting from COVID-19 and repaid by Tripadvisor during 2020. The Credit Agreement contains a number of covenants that, among other things, restrict Tripadvisor’s ability to incur additional indebtedness, create liens, enter into sale and leaseback transactions, engage in mergers or consolidations, sell or transfer assets, pay dividends and distributions, make investments, loans or advances, prepay certain subordinated indebtedness, make certain acquisitions, engage in certain transactions with affiliates, amend material agreements governing certain subordinated indebtedness, and change its fiscal year. The Credit Agreement also limits Tripadvisor from repurchasing shares of its common stock and paying dividends, among other restrictions, during the Leverage Covenant Holiday. In addition, to secure the obligations under the Credit Agreement, Tripadvisor and certain subsidiaries have granted security interests and liens in and on, substantially all of their assets as well as pledged shares of certain of Tripadvisor’s subsidiaries. 2025 Senior Notes On July 9, 2020, Tripadvisor completed the sale of $500 million aggregate principal amount of 7.0% Senior Notes due 2025 (the "2025 Senior Notes") pursuant to a purchase agreement, dated July 7, 2020, among Tripadvisor, the guarantors party thereto and the initial purchasers party thereto in a private offering. The 2025 Senior Notes were issued pursuant to an indenture, dated July 9, 2020 (the “2025 Indenture”), among Tripadvisor, the guarantors and Wilmington Trust, National Association, as trustee. The 2025 Indenture provides, among other things, that interest will be payable on the 2025 Senior Notes on January 15 and July 15 of each year, beginning on January 15, 2021, until their maturity date of July 15, 2025. The 2025 Senior Notes are senior unsecured obligations of Tripadvisor and are guaranteed by certain of Tripadvisor’s domestic subsidiaries. Tripadvisor has the option to redeem all or a portion of the 2025 Senior Notes at any time on or after July 15, 2022 at the redemption prices set forth in the 2025 Indenture, plus accrued and unpaid interest, if any. Tripadvisor may also redeem all or any portion of the 2025 Senior Notes at any time prior to July 15, 2022, at a price equal to 100% of the aggregate principal amount thereof plus a make-whole premium and accrued and unpaid interest, if any. In addition, before July 15, 2022, Tripadvisor may redeem up to 40% of the aggregate principal amount of the 2025 Senior Notes with the net proceeds of certain equity offerings at the redemption price set forth in the 2025 Indenture, provided that certain conditions are met. Subject to certain limitations, in the event of a Change of Control Triggering Event (as defined in the 2025 Indenture), Tripadvisor will be required to make an offer to purchase the 2025 Senior Notes at a price equal to 101% of the aggregate principal amount of the 2025 Senior Notes repurchased, plus accrued and unpaid interest, if any, to the date of repurchase. These features have been evaluated as embedded derivatives under GAAP, however, Tripadvisor has concluded they do not meet the requirements to be accounted for separately. As of March 31, 2021, Tripadvisor estimated the fair value of its outstanding 2025 Senior Notes to be approximately $541 million and considered the Senior Notes to be a “Level 2” fair value measurement. The estimated fair value of the 2025 Senior Notes was based on recently reported market transactions and prices for identical or similar financial instruments obtained from a third-party pricing source. The 2025 Indenture contains covenants that, among other things and subject to certain exceptions and qualifications, restrict the ability of Tripadvisor and the ability of certain of its subsidiaries to incur or guarantee additional indebtedness or issue disqualified stock or certain preferred stock; pay dividends and make other distributions or repurchase stock; make certain investments; create or incur liens; sell assets; create restrictions affecting the ability of restricted subsidiaries to make distributions, loans or advances or transfer assets to Tripadvisor or the restricted subsidiaries; enter into certain transactions with Tripadvisor’s affiliates; designate restricted subsidiaries as unrestricted subsidiaries; and merge, consolidate or transfer or sell all or substantially all of Tripadvisor’s assets. 2026 Convertible Senior Notes On March 25, 2021, Tripadvisor sold, pursuant to a purchase agreement $300 million aggregate principal amount of 0.250% Convertible Senior Notes due 2026 (the “2026 Convertible Senior Notes”) in a private offering to qualified institutional buyers. Tripadvisor granted the initial purchasers an over-allotment option that provided the initial purchasers of the 2026 Convertible Senior Notes with the option to purchase an additional $45 million aggregate principal amount of the 2026 Convertible Senior Notes; such over-allotment option was fully exercised and closed on March 25, 2021. In connection with the issuance of the 2026 Convertible Senior Notes, Tripadvisor entered into an Indenture, dated March 25, 2021 (the “2026 Indenture”), among Tripadvisor, the guarantors party thereto and the trustee. The terms of the Notes are governed by the 2026 Indenture. The 2026 Convertible Senior Notes mature on April 1, 2026, unless earlier converted, redeemed or repurchased. The 2026 Convertible Senior Notes are senior unsecured obligations of Tripadvisor, although guaranteed by certain of Tripadvisor’s domestic subsidiaries, with interest payable semiannually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021, at a rate of 0.25% per annum. The 2026 Convertible Senior Notes will be redeemable, in whole or in part, at Tripadvisor’s option at any time, and from time to time, on or after April 1, 2024 and on or before the 30th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2026 Convertible Senior Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of Tripadvisor’s common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date Tripadvisor sends the related redemption notice; and (2) the trading day immediately before the date Tripadvisor sends such notice. In addition, calling any such note for redemption will constitute a make-whole fundamental change with respect to that note, in which case the conversion rate applicable to the conversion of that note will be increased in certain circumstances if it is converted after it is called for redemption. The 2026 Convertible Senior Notes are unconditionally guaranteed, on a joint and several basis, by the guarantors on a senior, unsecured basis. The 2026 Convertible Senior Notes are Tripadvisor’s general senior unsecured obligations and rank equally in right of payment with all of its existing and future senior indebtedness, and senior in right of payment to all of its future subordinated indebtedness. The 2026 Convertible Senior Notes will be effectively subordinated to any of Tripadvisor’s existing and future secured indebtedness, including borrowings under its 2015 Credit Facility and its 2025 Senior Notes, to the extent of the value of the assets securing such indebtedness. Holders may convert their 2026 Convertible Senior Notes under the following conditions at any time prior to the close of business on the business day immediately preceding January 1, 2026 in multiples of $1,000 principal amount, only under the following circumstances: ● during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of TRIP common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; ● during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2026 Convertible Senior Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of TRIP common stock and the conversion rate on each such trading day; or ● upon the occurrence of specified corporate events as described in the 2026 Indenture. In addition, holders may convert their 2026 Convertible Senior Notes, in multiples of $1,000 principal amount, at their option at any time beginning on or after January 1, 2026, and prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date of the 2026 Convertible Senior Notes, without regard to the foregoing circumstances. The initial conversion rate for the 2026 Convertible Senior Notes is 13.5483 shares of TRIP common stock per $1,000 principal amount of 2026 Convertible Senior Notes, which is equivalent to an initial conversion price of approximately $73.81 per share of common stock, or approximately 4.7 million shares of TRIP common stock, subject to adjustment upon the occurrence of certain specified events as set forth in the 2026 Indenture. Upon conversion, Tripadvisor may choose to pay or deliver, as the case may be, cash, shares of TRIP common stock or a combination of cash and shares of TRIP common stock. Tripadvisor accounts for the 2026 Convertible Senior Notes as a liability measured at its amortized cost, and no other features of the 2026 Convertible Senior Notes are bifurcated and recognized as a derivative . The 2026 Convertible Senior Notes are unsecured and do not contain any financial covenants, restrictions on dividends, incurrence of senior debt or other indebtedness, or restrictions on the issuance or repurchase of securities by the Company. As of March 31, 2021, Tripadvisor estimated the fair value of its outstanding 2026 Convertible Senior Notes to be approximately $364 million and considered the 2026 Convertible Senior Notes to be a “Level 2” fair value measurement. The estimated fair value of the 2026 Convertible Senior Notes was based on recently reported market transactions and prices for identical or similar financial instruments obtained from a third-party pricing source. Capped Call Transactions In connection with the issuance of the 2026 Convertible Senior Notes, Tripadvisor entered into privately negotiated capped call transactions (the “Capped Calls”) with certain of the initial purchasers of the 2026 Convertible Senior Notes and/or their respective affiliates and/or other financial institutions (the “Option Counterparties”) at a cost of approximately $35 million. The Capped Calls are separate transactions entered into by Tripadvisor with each Option Counterparty, and are not part of the terms of the 2026 Convertible Senior Notes and will not affect any noteholder’s rights under the 2026 Convertible Senior Notes. Noteholders will not have any rights with respect to the Capped Calls. The Capped Calls cover, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the 2026 Convertible Senior Notes, the number of shares of TRIP common stock initially underlying the 2026 Convertible Senior Notes, or up to approximately 4.7 million shares of TRIP common stock. The Capped Calls are expected generally to reduce potential dilution to the common stock upon any conversion of 2026 Convertible Senior Notes and/or offset any potential cash payments Tripadvisor is required to make in excess of the principal amount of such converted 2026 Convertible Senior Notes, as the case may be, with such reduction and/or offset subject to a cap. The strike price of the Capped Calls is $73.81, while the cap price of the Capped Calls will initially be $107.36 per share of TRIP common stock, which represents a premium of 100% over the last reported sale price of TRIP common stock of $53.68 per share on March 22, 2021, and is subject to certain customary adjustments under the terms of the Capped Calls. The Capped Calls are considered indexed to Tripadvisor’s own stock and are considered equity under GAAP. The Capped Calls are reported as a reduction to additional paid-in-capital and noncontrolling interest in equity of subsidiaries within shareholders’ equity as of March 31, 2021. In addition, Tripadvisor recorded a deferred tax asset of $9 million during the three months ended March 31, 2021, as it made an income tax election allowable under Internal Revenue Service regulations in order to recover the cost of the Capped Calls as interest expense on the condensed consolidated statement of operations over the term of the 2026 Convertible Senior Notes. Debt Covenants As of March 31, 2021, Tripadvisor and TripCo were in compliance with their debt covenants. Recently Adopted Accounting Policies In August 2020, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance which simplifies the accounting for convertible debt instruments by reducing the number of accounting models and embedded conversion features that could be recognized separately from the primary contract. The new accounting guidance requires a convertible debt instrument to be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new accounting guidance requires an entity to use the if-converted method in the diluted earnings per share calculation for convertible instruments. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted, including adoption in any interim period. We early adopted this new guidance in the first quarter of 2021 and there was no impact to any prior periods. |
Redeemable Preferred Stock
Redeemable Preferred Stock | 3 Months Ended |
Mar. 31, 2021 | |
Redeemable Preferred Stock | |
Redeemable preferred stock | (6) Redeemable Preferred Stock On March 15, 2020, TripCo and Gregory B. Maffei entered into an Investment Agreement (the “Investment Agreement”) with Certares Holdings LLC, Certares Holdings (Blockable) LLC and Certares Holdings (Optional) LLC with respect to an investment in TripCo’s Series A Preferred Stock, which was later assigned to Certares LTRIP LLC (“Certares” or the “Purchaser”). Pursuant to the assigned Investment Agreement, On March 22, 2021, TripCo and Certares entered into a stock repurchase agreement (the “Repurchase Agreement”). cash from a portion of the net proceeds of the Debentures (as discussed in note 5), $252 million of which was paid on March 29, 2021 and $29 million of which was paid on April 6, 2021 and was classified as a current liability on the condensed consolidated balance sheet as of March 31, 2021, and (ii) approximately $92 million aggregate value of TRIP common stock, . The price per share of Series A Preferred Stock was determined by multiplying (a) $1,000 by (b) an accretion factor with respect to the TRIP common stock (determined based on the Accretion Factor formula set forth in the Certificate of Designations of the Series A Preferred Stock as modified to use the closing price of a share of TRIP common stock on the date of the pricing of the Debentures instead of using the Reference Stock VWAP (as defined in the Certificate of Designations of the Series A Preferred Stock (the “Certificate of Designations”))). Priority The Series A Preferred Stock ranks senior to the shares of common stock of TripCo, with respect to dividend rights, rights of redemption and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of TripCo. The Series A Preferred Stock has a liquidation value equal to the sum of (i) $1,000, plus (ii) all unpaid dividends (whether or not declared) accrued with respect to such share. Voting and Convertibility Holders of Series A Preferred Stock are not entitled to any voting powers, except as otherwise specified in the Certificate of Designations or as required by Delaware law. Shares of Series A Preferred Stock are not convertible into TripCo common stock. Dividends Dividends on each share of Series A Preferred Stock accrue on a daily basis at a rate of 8.00% of the liquidation value and are payable annually, commencing after March 26, 2020. Dividends on each share of Series A Preferred Stock may be paid, at TripCo’s election, in cash, shares of the Company’s Series A common stock (“LTRPA”), or, at the election of the Purchaser, shares of the Company’s Series C common stock (“LTRPK”), provided, in each case, such shares are listed on a national securities exchange and are actively traded (such LTRPK shares, together with the LTRPA shares, the “Eligible Common Stock”), or a combination of cash and Eligible Common Stock. If a dividend is not declared and paid on the dividend payment date, the dividend amount will be added to the then-applicable liquidation price of the Series A Preferred Stock. Redemption The Company is required to redeem for cash shares of Series A Preferred Stock on the earlier of (i) the first business day after the fifth anniversary of March 26, 2020, or (ii) subject to certain exceptions, a change in control of TripCo. The “Redemption Price” in a mandatory redemption will equal the greater of (i) the sum of the liquidation value on the redemption date, plus all unpaid dividends accrued since the last dividend date, and (ii) the product of the (x) initial liquidation value, multiplied by (y) an accretion factor (determined based on a formula set forth in the Certificate of Designations) with respect to the TRIP common stock, less (z) the aggregate amount of all dividends paid in cash or shares of Eligible Common Stock from March 26, 2020 through the applicable redemption date. Put Right Following March 26, 2021, during certain periods, the Purchaser had the right to cause TripCo to redeem all of the outstanding shares of Series A Preferred Stock at the Redemption Price for, at the election of TripCo, cash, shares of Eligible Common Stock, shares of TRIP common stock or any combination of the foregoing, subject to certain limitations (the “Put Option”). The Company evaluated the Put Option as an embedded derivative and determined it was not required to be bifurcated. As a result of the Repurchase Agreement, Certares has permanently waived the Put Option. TripCo Call Right Pursuant to the Repurchase Agreement, beginning March 27, 2024, TripCo has the option, from time to time, to call and repurchase any and all of the outstanding shares of the Series A Preferred Stock at the optional repurchase price (the "Call Right"), which is the greater of (x) the sum of the liquidation value of a share of Series A Preferred Stock as of the optional repurchase date plus all unpaid dividends accrued on such share from the most recent dividend payment date through such optional repurchase date and (y) (i) the initial liquidation value of such share of Series A Preferred Stock as of the original issue date multiplied by an accretion factor with respect to the TRIP common stock (determined based on the Accretion Factor formula set forth in the Certificate of Designations as modified such that the Reference Stock VWAP is determined as of the date that is two business days prior to the date of TripCo’s notice of repurchase) minus (ii) all dividends paid in cash or shares of Eligible Common Stock on such share through the optional repurchase date. Restriction on transfer of Series A Preferred Stock Subject to exceptions contained in the Investment Agreement and the Repurchase Agreement, the shares of Series A Preferred Stock generally are non-transferable; provided that TripCo has agreed not to unreasonably withhold its consent to certain transfers of up to 49% of the remaining Series A Preferred Shares outstanding following the repurchases from Certares under the Repurchase Agreement (so long as there are no more than six holders of the Series A Preferred Stock at any one time). Any transferee of shares of Series A Preferred Stock must agree to the permanent waiver of the Put Option, to the permanent waiver of the right to appoint the Series A Preferred Threshold Director (as such term is defined in the Certificate of Designations and described in the Repurchase Agreement) and to the Call Right. Lock-up on TRIP common stock Pursuant to the Repurchase Agreement, and subject to the limited exceptions described therein, Certares will be restricted from transferring TRIP common stock for a period of six months commencing on the date of the Repurchase Agreement. Recognition Prior to the partial redemption, as the Series A Preferred Stock was redeemable and the redemption triggers were outside of TripCo’s control, the Company was required to classify the shares outside of permanent equity. The Company calculated the carrying value of the Series A Preferred Stock pursuant to the Redemption Price calculation, and any changes in the carrying value of the Series A Preferred Stock were recorded directly to retained earnings. Immediately prior to the partial redemption, the Company recognized a $410 million decrease to retained earnings related to the value of the Series A Preferred Stock. As a result of the Repurchase Agreement, the Series A Preferred Stock may no longer be settled in shares of TripCo or TRIP common stock and the Purchaser no longer has the ability to participate on the TripCo board purely through ownership of Series A Preferred Stock. Following an evaluation of the accounting impact of these changes, we concluded the Series A Preferred Stock is a debt host with an equity-indexed derivative that is required to be bifurcated. Accordingly, the Series A Preferred Stock was required to be measured at fair value, through retained earnings, in connection with the reclassification from temporary equity to a liability. The fair value of the Series A Preferred Stock was estimated to be $40 million lower than its redemption value and such amount was recorded as an increase to retained earnings. The debt host component is included in the preferred stock liability on the condensed consolidated balance sheet and will be accreted through interest expense to the amount to be paid upon settlement. The Preferred Stock Derivative is included in financial instrument liabilities at fair value in the condensed consolidated balance sheet. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity | |
Stockholders' Equity | (7) Stockholders’ Equity Preferred Stock TripCo’s preferred stock is issuable, from time to time, with such powers, designations, preferences and relative, participating, optional or other rights and qualifications, limitations or restrictions thereof, as shall be stated and expressed in a resolution or resolutions providing for the issue of such preferred stock adopted by TripCo’s Board of Directors. See note 6 for a description of TripCo’s Series A Preferred Stock. Common Stock Series A common stock entitles the holders to one vote per share, Series B common stock entitles the holders to ten votes per share and Series C common stock, except as otherwise required by applicable law, entitles the holder to no voting rights. As of March 31, 2021, no shares of Series C common stock have been issued. All series of TripCo common stock participate on an equal basis with respect to dividends and distributions. Subsidiary Purchases of Common Stock During the three months ended March 31, 2020, Tripadvisor repurchased 4,707,450 shares of its outstanding common stock for $115 million in the aggregate. As of March 31, 2021, Tripadvisor had approximately $75 million remaining available to repurchase shares of its common stock under this share repurchase program. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | (8) Commitments and Contingencies Litigation In the ordinary course of business, the Company and its subsidiaries are parties to legal proceedings and claims arising out of our operations. These matters may relate to claims involving patent and intellectual property rights (including alleged infringement of third-party intellectual property rights), tax matters (including value-added, excise, transient occupancy and accommodation taxes), regulatory compliance (including competition and consumer matters), defamation and other claims. Although it is reasonably possible that the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying consolidated financial statements. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Information | |
Segment Information | (9) Segment Information TripCo, through its ownership interests in Tripadvisor, is primarily engaged in the online commerce industries. TripCo identifies its reportable segments as (A) those operating segments that represent 10% or more of its consolidated annual revenue, annual adjusted operating income before depreciation and amortization (“Adjusted OIBDA”) or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of TripCo’s annual pre-tax earnings. TripCo evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, Adjusted OIBDA, gross margin, and revenue or sales per customer equivalent. In addition, TripCo reviews nonfinancial measures such as unique website visitors, conversion rates and active customers, as appropriate. We have identified the following as reportable segments: ● Hotels, Media & Platform – includes the following revenue sources: (1) Tripadvisor-branded hotels revenue – primarily consisting of hotel auction revenue, subscription-based advertising, hotel sponsored placements revenue; and (2) Tripadvisor-branded display and platform revenue – consisting of display-based advertising revenue. All direct general and administrative costs are included in the applicable segments and business units, however, all corporate general and administrative costs are included in the Hotels, Media & Platform reportable segment. In addition, the Hotels, Media & Platform reportable segment includes all Tripadvisor-related brand advertising expenses (primarily television advertising) and technical infrastructure and other costs supporting the Tripadvisor platform. ● Experiences & Dining – Tripadvisor provides information and services for consumers to research and book tours, activities and experiences in popular travel destinations both through Viator, Tripadvisor’s dedicated Experiences offering, and on Tripadvisor’s website and mobile apps. Tripadvisor generates commissions for each booking transaction it facilitates through its online reservation system. Tripadvisor also provides information and services for consumers to research and book restaurants in popular travel destinations through its dedicated restaurant reservations offering, TheFork, and on Tripadvisor-branded websites and mobile apps. Tripadvisor’s accounting policies are the same as those described in the Company’s Summary of Significant Accounting Policies included in the Annual Report on Form 10-K for the year ended December 31, 2020. Performance Measures Tripadvisor disaggregates revenue from contracts with customers into major products/revenue sources. Tripadvisor has determined that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenue is recognized primarily at a point in time for all reported segments. Three months ended March 31, 2021 2020 amounts in millions Hotels, Media & Platform TripAdvisor-branded hotels $ 74 137 TripAdvisor-branded display and platform 14 32 Total Hotels, Media & Platform 88 169 Experiences & Dining 28 83 Corporate and other 7 26 Total Revenue $ 123 278 The following table provides information about the opening and closing balances of accounts receivable and contract assets from contracts with customers: March 31, 2021 December 31, 2020 amounts in millions Accounts receivable $ 73 70 Contract assets 24 13 Total $ 97 83 Accounts receivable are recognized when the right to consideration becomes unconditional. Contract assets are rights to consideration in exchange for services that Tripadvisor has transferred to a customer when that right is conditional on something other than the passage of time, such as commission payments that are contingent upon the completion of the service by the principal in the transaction. Contract liabilities generally include payments received in advance of performance under the contract, and are realized as revenue as the performance obligation to the customer is satisfied, which Tripadvisor presents as deferred revenue on its consolidated balance sheets. As of January 1, 2021, Tripadvisor had $28 million recorded as deferred revenue on its condensed consolidated balance sheet, of which $11 million was recognized as revenue and $2 million was refunded due to cancellations by travelers during the three months ended March 31, 2021. As of January 1, 2020, Tripadvisor had $62 million recorded as deferred revenue in the condensed consolidated balance sheet, of which $32 million was recognized as revenue and $6 million was refunded due to cancellations by travelers during the three months ended March 31, 2020. The difference between the opening and closing balances of Tripadvisor’s deferred revenue primarily results from the timing differences between when Tripadvisor receives customer payments and the time in which Tripadvisor satisfies its performance obligations. The difference between the opening and closing balances of Tripadvisor’s contract assets primarily results from the timing difference between when Tripadvisor satisfies its performance obligations and the time when the principal completes the service in the transaction. There were no significant changes in contract assets or deferred revenue during the three months ended March 31, 2021 and 2020 related to business combinations, impairments, cumulative catch-ups or other material adjustments. However, to the extent the COVID-19 pandemic continues, Tripadvisor may incur additional significant and unanticipated cancellations by consumers related to future travel, accommodations and tour bookings, which had been reserved by travelers and recorded as deferred revenue as of March 31, 2021 and December 31, 2020 For segment reporting purposes, TripCo defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses (excluding stock-based compensation), adjusted for specifically identified non-recurring transactions. TripCo believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results, and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, equity settled liabilities (including stock-based compensation), separately reported litigation settlements and restructuring and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. TripCo generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices. Adjusted OIBDA is summarized as follows: Three months ended March 31, 2021 2020 amounts in millions Hotels, Media & Platform $ (3) 53 Experiences & Dining (24) (19) Corporate and other (2) 1 Consolidated TripCo $ (29) 35 In addition, we do not report assets, capital expenditures and related depreciation expense by segment as our Chief Operating Decision Maker (“CODM”) does not use this information to evaluate operating segments. Accordingly, we do not regularly provide such information by segment to our CODM. The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes: Three months ended March 31, 2021 2020 amounts in millions Adjusted OIBDA $ (29) 35 Stock-based compensation (30) (27) Depreciation and amortization (38) (43) Restructuring charges — (9) Operating income (loss) (97) (44) Interest expense (11) (7) Realized and unrealized gains (losses), net (65) 2 Other, net (2) (3) Earnings (loss) before income taxes $ (175) (52) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of stock-based compensation expense | Three months ended March 31, 2021 2020 amounts in millions Operating expense $ 12 11 Selling, general and administrative expense 18 16 $ 30 27 |
Series A | |
Schedule of stock-based compensation activity | Weighted average remaining Aggregate contractual intrinsic Series A WAEP life value in thousands in years in millions Outstanding at January 1, 2021 1,086 $ 7.78 Granted 27 $ 6.73 Exercised — $ — Forfeited/Cancelled (1) $ 35.05 Outstanding at March 31, 2021 1,112 $ 7.74 5.6 $ 1 Exercisable at March 31, 2021 366 $ 14.33 3.7 $ — |
Series B | |
Schedule of stock-based compensation activity | Weighted average remaining Aggregate contractual intrinsic Series B WAEP life value in thousands in years in millions Outstanding at January 1, 2021 2,397 $ 21.93 Granted — $ — Exercised — $ — Forfeited/Cancelled — $ — Outstanding at March 31, 2021 2,397 $ 21.93 4.5 $ 39 Exercisable at March 31, 2021 2,397 $ 21.93 4.5 $ 39 |
Tripadvisor | |
Schedule of stock-based compensation activity | Weighted average TripAdvisor remaining Aggregate stock contractual intrinsic options WAEP life value in thousands in years in millions Outstanding at January 1, 2021 5,615 $ 46.31 Granted 699 $ 45.92 Exercised (628) $ 34.70 Cancelled or expired (94) $ 40.93 Outstanding at March 31, 2021 5,592 $ 47.66 5.6 $ 62 Exercisable at March 31, 2021 3,203 $ 55.64 3.7 $ 22 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings (Loss) Per Common Share (EPS) | |
Reconciliation of Basic and Diluted Weighted Average Shares | Liberty TripAdvisor Holdings Common Stock Three months ended March 31, 2021 2020 number of shares in millions Numerator Net earnings (loss) attributable to Liberty TripAdvisor Holdings, Inc. shareholders $ (90) (19) Less: Series A Preferred Stock carrying value adjustment and transaction costs 370 6 Net earnings (loss) available to common shareholders $ (460) (25) Denominator Basic WASO 75 75 Potentially dilutive shares 2 — Diluted WASO 77 75 |
Assets and Liabilities Measur_2
Assets and Liabilities Measured at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Assets and Liabilities Measured at Fair Value | |
Schedule of assets and liabilities measured at fair value | March 31, 2021 December 31, 2020 Quoted prices Significant Quoted prices Significant in active other in active other markets for observable markets for observable identical assets inputs identical assets inputs Description Total (Level 1) (Level 2) Total (Level 1) (Level 2) amounts in millions Cash equivalents $ 42 42 — 4 4 — TripCo Exchangeable Senior Debentures due 2051 $ 301 — 301 NA NA NA Financial instrument liabilities $ 339 — 339 14 — 14 |
Schedule of Realized Gain (Loss) [Table Text Block] | Three months ended March 31, 2021 2020 amounts in millions TripCo Exchangeable Senior Debentures due 2051 (10) — Financial instrument liabilities (55) 1 Tripadvisor foreign currency forward contracts — 1 $ (65) 2 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt | |
Schedule of outstanding debt | March 31, December 31, 2021 2020 amounts in millions TripCo Exchangeable Senior Debentures due 2051 $ 301 — TripCo variable prepaid forward 41 41 Tripadvisor Credit Facilities — — Tripadvisor Senior Notes due 2025 500 500 Tripadvisor Convertible Senior Notes due 2026 345 — Deferred financing costs (14) (9) Total consolidated TripCo debt 1,173 532 Debt classified as current — — Total long-term debt $ 1,173 532 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Information | |
Schedule of disaggregation of revenue | Three months ended March 31, 2021 2020 amounts in millions Hotels, Media & Platform TripAdvisor-branded hotels $ 74 137 TripAdvisor-branded display and platform 14 32 Total Hotels, Media & Platform 88 169 Experiences & Dining 28 83 Corporate and other 7 26 Total Revenue $ 123 278 |
Schedule of contract balances | March 31, 2021 December 31, 2020 amounts in millions Accounts receivable $ 73 70 Contract assets 24 13 Total $ 97 83 |
Schedule of performance measures | Three months ended March 31, 2021 2020 amounts in millions Hotels, Media & Platform $ (3) 53 Experiences & Dining (24) (19) Corporate and other (2) 1 Consolidated TripCo $ (29) 35 |
Reconciliation of consolidated Adjusted OIBDA to operating income and earnings (loss) before income taxes | Three months ended March 31, 2021 2020 amounts in millions Adjusted OIBDA $ (29) 35 Stock-based compensation (30) (27) Depreciation and amortization (38) (43) Restructuring charges — (9) Operating income (loss) (97) (44) Interest expense (11) (7) Realized and unrealized gains (losses), net (65) 2 Other, net (2) (3) Earnings (loss) before income taxes $ (175) (52) |
Basis of Presentation - Descrip
Basis of Presentation - Description of Business (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 26, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 |
Redeemable preferred stock, shares issued | 325,000 | 198,079 | 325,000 | ||
Dividend rate percentage | 8.00% | ||||
Redeemable preferred stock, par value | $ 0.01 | ||||
Shares issued price per share | $ 1,000 | ||||
Liberty Media | |||||
Related Party Transaction, Amounts of Transaction | $ 1 | $ 1 | |||
Liberty Media | CEO | |||||
CEO compensation allocation percentage | 5.00% |
Stock-Based Compensation - Trip
Stock-Based Compensation - TripCo Incentive Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $ 30 | $ 27 |
Operating expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | 12 | 11 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $ 18 | 16 |
2019 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Dividend rate | 0.00% | |
Tripadvisor | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $ 29 | $ 26 |
Stock-Based Compensation - Tr_2
Stock-Based Compensation - TripCo Outstanding Awards (Details) - 2019 Plan $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Additional disclosures | |
Unvested value not yet recognized | $ | $ 7.9 |
Weighted average period the unrecognized compensation cost will be recognized | 2 years 2 months 12 days |
Amount of share reserve | 3,500 |
Stock Options | Series A | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding beginning balance | 1,086 |
Granted | 27 |
Forfeited/Cancelled | (1) |
Outstanding ending balance | 1,112 |
Options exercisable | 366 |
WAEP | |
Weighted average exercise price, options outstanding (in dollars per share) | $ / shares | $ 7.78 |
Weighted average exercise price, options granted (in dollars per share) | $ / shares | 6.73 |
Weighted average exercise price, options forfeited/cancelled (in dollars per share) | $ / shares | 35.05 |
Weighted average exercise price, options outstanding (in dollars per share) | $ / shares | 7.74 |
Weighted average exercise price, options exercisable (in dollars per share) | $ / shares | $ 14.33 |
Weighted average remaining contractual term outstanding | 5 years 7 months 6 days |
Weighted average remaining contractual term exercisable | 3 years 8 months 12 days |
Outstanding, aggregate intrinsic value | $ | $ 1 |
Stock Options | Series B | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding beginning balance | 2,397 |
Outstanding ending balance | 2,397 |
Options exercisable | 2,397 |
WAEP | |
Weighted average exercise price, options outstanding (in dollars per share) | $ / shares | $ 21.93 |
Weighted average exercise price, options outstanding (in dollars per share) | $ / shares | 21.93 |
Weighted average exercise price, options exercisable (in dollars per share) | $ / shares | $ 21.93 |
Weighted average remaining contractual term outstanding | 4 years 6 months |
Weighted average remaining contractual term exercisable | 4 years 6 months |
Outstanding, aggregate intrinsic value | $ | $ 39 |
Exercisable, aggregate intrinsic value | $ | $ 39 |
Performance Based RSUs | Series B | CEO | |
Additional disclosures | |
RSUs granted | 154 |
Weighted average grant date fair value, RSUs and MSUs granted (in dollars per share) | $ / shares | $ 7.07 |
Vesting period | 1 year |
Stock-Based Compensation - Tr_3
Stock-Based Compensation - TripAdvisor Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Additional disclosures | ||
Stock-based compensation | $ 30 | $ 27 |
2019 Plan | ||
Additional disclosures | ||
Weighted average period the unrecognized compensation cost will be recognized | 2 years 2 months 12 days | |
Tripadvisor | ||
Additional disclosures | ||
Stock-based compensation | $ 29 | $ 26 |
Tripadvisor | 2018 Plan | RSUs and MSUs | ||
Additional disclosures | ||
Weighted average period the unrecognized compensation cost will be recognized | 2 years 6 months | |
RSUs and MSUs granted (in shares) | 2,000 | |
RSUs and MSUs vested (in shares) | 2,000 | |
Weighted average grant date fair value, RSUs and MSUs granted (in dollars per share) | $ 45.79 | |
Weighted average grant date fair value, RSUs and MSUs vested (in dollars per share) | 33.94 | |
Weighted average grant date fair value, RSUs and MSUs cancelled (in dollars per share) | $ 32.14 | |
Unrecognized compensation cost, unvested RSUs and MSUs | $ 212 | |
Tripadvisor | 2011 and 2018 Plans | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding beginning balance | 5,615 | |
Granted | 699 | |
Exercised | (628) | |
Cancelled or expired | (94) | |
Outstanding ending balance | 5,592 | |
Options exercisable | 3,203 | |
WAEP | ||
Weighted average exercise price, options outstanding (in dollars per share) | $ 46.31 | |
Weighted average exercise price, options granted (in dollars per share) | 45.92 | |
Weighted average exercise price, options exercised (in dollars per share) | 34.70 | |
Weighted average exercise price, options cancelled or expired (in dollars per share) | 40.93 | |
Weighted average exercise price, options outstanding (in dollars per share) | 47.66 | |
Weighted average exercise price, options exercisable (in dollars per share) | $ 55.64 | |
Weighted average remaining contractual term outstanding | 5 years 7 months 6 days | |
Weighted average remaining contractual term exercisable | 3 years 8 months 12 days | |
Outstanding, aggregate intrinsic value | $ 62 | |
Exercisable, aggregate intrinsic value | $ 22 | |
Additional disclosures | ||
Weighted average grant date fair value, options (in dollars per share) | $ 20.35 | |
Stock options exercised intrinsic value | $ 8 | |
Unrecognized compensation cost, unvested options (in dollars) | $ 28 | |
Weighted average period the unrecognized compensation cost will be recognized | 2 years 7 months 6 days |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (EPS) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator | ||
Net earnings (loss) attributable to Liberty TripAdvisor Holdings, Inc. shareholders | $ (90) | $ (19) |
Less: Series A Preferred Stock carrying value adjustment and transaction costs | 370 | 6 |
Net earnings (loss) available to common shareholders | $ (460) | $ (25) |
Denominator | ||
Basic EPS (In Shares) | 75 | 75 |
Potentially dilutive shares (In Shares) | 2 | |
Diluted EPS (In Shares) | 77 | 75 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2 | |
Stock Options | Maximum | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1 | |
Preferred Stock Put Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13 |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value (Details) $ in Millions | Mar. 09, 2020USD ($)$ / itemshares | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Repayments of long term debt | $ 352 | |||
Forward Contracts | variable prepaid forward | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Forward contract shares indexed | shares | 2.4 | |||
Forward floor price | $ / item | 17.25 | |||
Forward cap price | $ / item | 26.84 | |||
Variable prepaid forward prepayment received | $ 34 | |||
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | $ 42 | $ 4 | ||
Financial instruments liabilities | 339 | 14 | ||
Recurring | TripCo Exchangeable Senior Debentures due 2051 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | 301 | |||
Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 42 | 4 | ||
Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial instruments liabilities | 339 | $ 14 | ||
Recurring | Level 2 | TripCo Exchangeable Senior Debentures due 2051 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | $ 301 |
Assets and Liabilities Measur_4
Assets and Liabilities Measured at Fair Value - Realized and Unrealized Gains (Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments | $ (65) | $ 2 | |
Fair Value, option, credit Risk, gains (losses) on assets | 4 | ||
Debt Issuance Costs, Net | 14 | $ 9 | |
TripCo Exchangeable Senior Debentures due 2051 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, option, credit Risk, gains (losses) on assets | 4 | ||
Debt Issuance Costs, Net | 5 | ||
TripCo Exchangeable Senior Debentures due 2051 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments | (10) | ||
Financial instrument liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments | $ (55) | 1 | |
Tripadvisor Foreign Currency Forward Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized and unrealized gains (losses) on financial instruments | $ 1 |
Debt - Outstanding debt (Detail
Debt - Outstanding debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Financing | ||
Deferred financing costs | $ (14) | $ (9) |
Total consolidated TripCo debt | 1,173 | 532 |
Total long-term debt | 1,173 | 532 |
TripCo Exchangeable Senior Debentures due 2051 | ||
Debt Financing | ||
Carrying amount of debt | 301 | |
Deferred financing costs | (5) | |
variable prepaid forward | ||
Debt Financing | ||
Carrying amount of debt | 41 | 41 |
Tripadvisor | Tripadvisor Senior Notes due 2025 | ||
Debt Financing | ||
Carrying amount of debt | 500 | $ 500 |
Tripadvisor | Tripadvisor Convertible Senior Notes due 2026 | ||
Debt Financing | ||
Carrying amount of debt | $ 345 |
Debt - TripCo Exchangeable Seni
Debt - TripCo Exchangeable Senior Debentures due 2051 (Details) $ / shares in Units, shares in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)$ / sharesshares | Mar. 25, 2021USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument, convertible, principal amount | shares | 4.7 | |
TripCo Exchangeable Senior Debentures due 2051 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 30,000,000 | $ 300,000,000 |
Interest rate | 0.50% | |
Debt Instrument, convertible, conversion ratio | 14.3299 | |
Conversion to common Stock | $ 1,000 | |
Debt Instrument, convertible, conversion price | $ / shares | $ 69.78 | |
Debt Instrument, redemption price, percentage | 100.00% |
Debt - TripAdvisor Credit Facil
Debt - TripAdvisor Credit Facilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 17, 2020 | May 31, 2020 | May 04, 2020 | Jun. 30, 2015 | |
Debt Financing | |||||||
Interest expense | $ 11 | $ 7 | |||||
Debt Issuance Costs, Net | 14 | $ 9 | |||||
Tripadvisor | Tripadvisor Credit Facilities | |||||||
Debt Financing | |||||||
Maximum borrowing capacity | $ 500 | $ 1,200 | $ 500 | ||||
Leverage ratio compliance testing | $ 200 | ||||||
Minimum liquidity covenant amount | $ 150 | ||||||
Borrowings outstanding on line of credit | 700 | ||||||
Interest expense | $ 1 | $ 1 | |||||
Tripadvisor | Tripadvisor Credit Facilities | Minimum | |||||||
Debt Financing | |||||||
Commitment fee | 0.50% | ||||||
Tripadvisor | Tripadvisor Credit Facilities | LIBOR | |||||||
Debt Financing | |||||||
Variable rate basis | LIBOR | ||||||
Margin | 2.25% | ||||||
Floor rate (as a percent) | 1.00% | ||||||
Tripadvisor | Letter of Credit | |||||||
Debt Financing | |||||||
Maximum borrowing capacity | $ 15 | ||||||
Borrowings outstanding on line of credit | 4 | $ 0 | |||||
Tripadvisor | Same-day notice borrowings | |||||||
Debt Financing | |||||||
Maximum borrowing capacity | $ 40 |
Debt - TripCo Debt (Details)
Debt - TripCo Debt (Details) - USD ($) shares in Millions, $ in Millions | Mar. 09, 2020 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Financing | ||||
Repayments of long term debt | $ 352 | |||
variable prepaid forward | ||||
Debt Financing | ||||
Carrying amount of debt | $ 41 | $ 41 | ||
variable prepaid forward | Forward Contracts | ||||
Debt Financing | ||||
Variable prepaid forward prepayment received | $ 34 | |||
Derivative contract term | 3 years | |||
Accreted loan total at maturity | $ 42 | |||
Common stock pledged as collateral | 2.4 | |||
Value of common stock pledged as collateral. | $ 129 |
Debt - TripAdvisor Senior Notes
Debt - TripAdvisor Senior Notes (Details) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2021USD ($)$ / shares | Mar. 31, 2021USD ($)$ / shares | Mar. 31, 2020USD ($) | Mar. 25, 2021USD ($) | Jul. 09, 2020USD ($) | |
Debt Instrument [Line Items] | |||||
Borrowings of debt | $ 645,000,000 | $ 740,000,000 | |||
Long-term debt fair value | $ 301,000,000 | $ 301,000,000 | |||
Tripadvisor | Tripadvisor Senior Notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 500,000,000 | ||||
Interest rate | 7.00% | ||||
Unpaid interest price | 100.00% | ||||
Redemption percentage with certain equity offerings maximum | 40.00% | ||||
Aggregate redemption price in the event of a Change of Control Triggering Event | 101.00% | ||||
Tripadvisor | Tripadvisor Senior Notes due 2025 | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt fair value | 541,000,000 | $ 541,000,000 | |||
Tripadvisor | Tripadvisor Convertible Senior Notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 300,000,000 | ||||
Interest rate | 0.25% | ||||
Conversion to common Stock | $ 1,000 | $ 1,000 | |||
Debt Instrument, convertible, threshold trading days | 20 | ||||
Debt Instrument, convertible, threshold consecutive trading days | 30 | ||||
Debt Instrument, convertible, threshold percentage of stock price trigger | 130.00% | ||||
Debt Instrument, convertible, conversion ratio | 13.5483 | ||||
Debt Instrument, convertible, conversion price | $ / shares | $ 73.81 | $ 73.81 | |||
Debt Instrument, convertible, number of equity instruments | 4,700,000 | ||||
Borrowings of debt | $ 340,000,000 | ||||
Payments of debt issuance costs | $ 5,000,000 | ||||
Debt Instrument Term | 5 years | ||||
Interest rate | 0.60% | 0.60% | |||
Tripadvisor | Tripadvisor Convertible Senior Notes due 2026 | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt fair value | $ 364,000,000 | $ 364,000,000 | |||
Tripadvisor | Tripadvisor Convertible Senior Notes due 2026 | Quarterly Period | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, convertible, threshold trading days | 20 | ||||
Debt Instrument, convertible, threshold consecutive trading days | 30 | ||||
Debt Instrument, convertible, threshold percentage of stock price trigger | 130.00% | ||||
Tripadvisor | Tripadvisor Convertible Senior Notes due 2026 | Measurement Period | |||||
Debt Instrument [Line Items] | |||||
Conversion to common Stock | $ 1,000 | $ 1,000 | |||
Debt Instrument, convertible, threshold percentage of stock price trigger | 98.00% | ||||
Debt Instrument, Convertible, threshold consecutive trading day period | 5 days | ||||
Debt instrument, convertible, consecutive business days immediately following threshold consecutive trading days | 5 days | ||||
Tripadvisor | Convertible Senior Notes Over Allotment Option | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 45,000,000 |
Debt - Capped Call Transactions
Debt - Capped Call Transactions (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)$ / shares$ / itemshares | Mar. 22, 2021$ / shares | |
Debt Instrument [Line Items] | ||
Debt instrument, convertible, principal amount | shares | 4.7 | |
Tripadvisor | Capped Call Transactions | ||
Debt Instrument [Line Items] | ||
Capped call tranaction cost | $ | $ 35 | |
Debt instrument, convertible, principal amount | shares | 4.7 | |
Strike price per share | $ / shares | $ 73.81 | |
Cap price for convertible debt instrument | $ / item | 107.36 | |
Debt instrument, convertible, capped call transactions, percentage of common stock sale price | 100.00% | |
Share Price | $ / shares | $ 53.68 | |
Deferred tax asset | $ | $ 9 |
Redeemable Preferred Stock (Det
Redeemable Preferred Stock (Details) | Apr. 06, 2021USD ($)shares | Mar. 29, 2021USD ($)shares | Mar. 26, 2020$ / sharesshares | Mar. 31, 2021USD ($)itemshares | Dec. 31, 2020shares |
Redeemable preferred stock, shares issued | shares | 325,000 | 198,079 | 325,000 | ||
Shares issued price per share | $ / shares | $ 1,000 | ||||
Call right, reference stock V W A P | 2 | ||||
Threshold percentage of redeemable preferred shares | 49.00% | ||||
Maximum number of holders of redeemable preferred stock | item | 6 | ||||
Redemption price per share | $ / shares | $ 1,000 | ||||
Dividend rate percentage | 8.00% | ||||
Series A Preferred Stock | |||||
Redeemable preferred stock shares repurchased | shares | 10,665 | 126,921 | 137,586 | ||
Proceeds from issuance of debt | $ 281,000,000 | ||||
Redeemable preferred stock, net proceeds of debentures | $ 29,000,000 | $ 252,000,000 | |||
Common stock used for repurchase | $ 92,000,000 | ||||
Shares issued during period, shares | shares | 1,713,859 | ||||
Repurchase price, multiplier | $ 1,000 | ||||
Percentage of redeemable preferred stock repurchased during the period. | 42.00% | ||||
Payments for repurchase of Redeemable preferred stock | $ 373,000,000 | ||||
Series A Preferred Stock | Retained Earnings | |||||
Preferred stock change in carrying value | 410,000,000 | ||||
Preferred stock fair value adjustment | $ 40,000,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) | 3 Months Ended | |
Mar. 31, 2021Voteshares | Dec. 31, 2020shares | |
Series A | ||
Class of Stock [Line Items] | ||
Number of votes | Vote | 1 | |
Common stock shares issued | shares | 72,290,228 | 72,227,256 |
Series B | ||
Class of Stock [Line Items] | ||
Number of votes | Vote | 10 | |
Common stock shares issued | shares | 3,216,047 | 2,973,665 |
Series C | ||
Class of Stock [Line Items] | ||
Number of votes | Vote | 0 | |
Common stock shares issued | shares | 0 | 0 |
Stockholders' Equity - Subsidia
Stockholders' Equity - Subsidiary Purchases of Common Stock (Details) - Tripadvisor - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||
Treasury shares acquired | 4,707,450 | |
Payment for shares repurchased | $ 115 | |
Stock repurchase remaining amount authorized | $ 75 |
Segment Information - Disaggreg
Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 123 | $ 278 |
Operating Segments | Hotel, Media & Platform | ||
Segment Reporting Information [Line Items] | ||
Revenue | 88 | 169 |
Operating Segments | Tripadvisor-branded hotels | ||
Segment Reporting Information [Line Items] | ||
Revenue | 74 | 137 |
Operating Segments | Tripadvisor-branded display and platform | ||
Segment Reporting Information [Line Items] | ||
Revenue | 14 | 32 |
Operating Segments | Experiences & Dining | ||
Segment Reporting Information [Line Items] | ||
Revenue | 28 | 83 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 7 | $ 26 |
Segment Information - Contract
Segment Information - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Jan. 01, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | |
Segment Information | |||||
Accounts receivable | $ 73 | $ 70 | |||
Contract assets | 24 | 13 | |||
Total | 97 | 83 | |||
Deferred revenue | $ 28 | $ 62 | |||
Contract with Customer, Liability, Current | 38 | $ 28 | |||
Contract with customer revenue recognized | 11 | $ 32 | |||
Amount of revenue refunded | $ 2 | $ 6 |
Segment Information - Performan
Segment Information - Performance Measures and Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segments | ||
Adjusted OIBDA | $ (29) | $ 35 |
Operating Segments | Hotel, Media & Platform | ||
Segments | ||
Adjusted OIBDA | (3) | 53 |
Operating Segments | Experiences & Dining | ||
Segments | ||
Adjusted OIBDA | (24) | (19) |
Corporate and other | ||
Segments | ||
Adjusted OIBDA | $ (2) | $ 1 |
Segment Information - Adjusted
Segment Information - Adjusted OIBDA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Information | ||
Adjusted OIBDA | $ (29) | $ 35 |
Stock-based compensation | (30) | (27) |
Depreciation and amortization | (38) | (43) |
Restructuring charges | (9) | |
Operating income (loss) | (97) | (44) |
Interest expense | (11) | (7) |
Realized and unrealized (gains) losses on financial instruments, net | (65) | 2 |
Other, net | (2) | (3) |
Earnings (loss) before income taxes | $ (175) | $ (52) |