Document
false0001324424 0001324424 2020-05-18 2020-05-18 0001324424 exch:XNGS 2020-05-18 2020-05-18


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): May 18, 2020
 
EXPEDIA GROUP, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
 
001-37429
 
20-2705720
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
1111 Expedia Group Way W.
Seattle, Washington 98119
(Address of principal executive offices) (Zip code)
(206) 481-7200
Registrant’s telephone number, including area code
Not Applicable
(Former name or former address if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common stock, $0.0001 par value
EXPE
The Nasdaq Global Select Market
Expedia Group, Inc. 2.500% Senior Notes due 2022
EXPE22
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
 
Emerging growth company
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 








Item 7.01    Regulation FD Disclosure.
Expedia Group, Inc. (the “Company”) is furnishing this Current Report on Form 8-K to recast selected financial data for 2019 and 2018 to reflect a change in segment reporting. In an effort to simplify its organization, the Company has been shifting to a platform operating model, with a global travel supply division and a product and technology platform division that each provide certain services across the Company. In addition, we no longer operate our brands separately, and now manage the Company with a focus on different types of end customers. As a result, effective January 1, 2020, the Company realigned its reportable segments to better reflect its operations. Accordingly, the Company now considers its business to consist of the following reportable segments:

Retail : Our Retail segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com websites throughout the world, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com, CarRentals.com, CruiseShipCenters, Classic Vacations and SilverRail Technologies, Inc.

B2B : Our B2B segment is comprised of our Expedia Business Services organization including Expedia Partner Solutions, which operates private label and co-branded programs to make travel services available to leisure travelers through third-party company branded websites, and Egencia, a full-service travel management company that provides travel services to businesses and their corporate customers.

trivago : Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.

The recasting of previously issued financial information does not represent a restatement of previously issued financial statements and does not affect the Company’s reported total gross bookings, revenue, or adjusted EBITDA for any of the previously reported periods. The information contained in this Form 8-K is being furnished pursuant to Regulation FD in order to provide the financial community with historical financial data that is presented on a basis consistent with the Company’s current reportable segments.
Selected financial data for the 2019 and 2018 quarterly periods, recast to conform to the Company’s new reportable segments, is furnished as Exhibit 99.1 to this Form 8-K. Exhibit 99.1 includes a non-GAAP financial measure. A reconciliation of the measure to the most directly comparable GAAP measure is included as a table to Exhibit 99.1. Beginning with the quarter ending March 31, 2020, the Company’s financial statements will reflect the new reporting structure with prior periods recast accordingly.
NOTE: The information furnished under Item 7.01 (Regulation FD Disclosure) of Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits







SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
EXPEDIA GROUP, INC.
 
 
 
 
By:
/s/ Eric Hart
 
 
Eric Hart
 
 
Chief Financial Officer
Dated: May 18, 2020
 



Exhibit


Exhibit 99.1
Recast Segment Selected Financial Data for the
2019 and 2018 Quarterly Periods

Selected segment financial information for the 2019 and 2018 quarterly periods is presented below. Prior year information has been recast to conform to the current year presentation.

Expedia Group, Inc. (the “Company”) now considers its business to consist of the following reportable segments:

Retail : Our Retail segment, which consists of the aggregation of operating segments, provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com websites throughout the world, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com, CarRentals.com, CruiseShipCenters, Classic Vacations and SilverRail Technologies, Inc.

B2B : Our B2B segment is comprised of our Expedia Business Services organization including Expedia Partner Solutions, which operates private label and co-branded programs to make travel services available to leisure travelers through third-party company branded websites, and Egencia, a full-service travel management company that provides travel services to businesses and their corporate customers.

trivago : Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.
We determined our operating segments based on how our chief operating decision makers manage our business, make operating decisions and evaluate operating performance. Our primary operating metric is adjusted EBITDA. Adjusted EBITDA for our Retail and B2B segments includes allocations of certain expenses, primarily related to our global travel supply organization and the majority of costs from our product and technology platform, as well as facility costs and the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base these allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, information technology and legal expenses to our reportable segments. We include these shared expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change.
Our segment disclosure includes intersegment revenues, which primarily consist of advertising and media services provided by our trivago segment to our Retail segment. These intersegment transactions are recorded by each segment at amounts that approximate fair value as if the transactions were with third parties, and therefore impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation, which is included within Corporate and Eliminations in the tables below.






EXPEDIA GROUP, INC.
HISTORICAL SEGMENT FINANCIALS
2018 to 2019
(in millions)
 
 
2018
 
2019
 
Full Year
 
 
Q1
Q2
Q3
Q4
 
Q1
Q2
Q3
Q4
 
2018
2019
Gross bookings by business model
 
 
 
 
 
 
 
 
 
 
 
 
 
     Agency
 
$
16,046

$
14,821

$
13,663

$
12,602

 
$
17,352

$
16,112

$
14,585

$
11,956

 
$
57,132

$
60,005

     Merchant
 
11,150

11,077

11,013

9,355

 
12,057

12,180

12,342

11,289

 
42,595

47,868

Total
 
$
27,196

$
25,898

$
24,676

$
21,957

 
$
29,409

$
28,292

$
26,927

$
23,245

 
$
99,727

$
107,873

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by segment
 
 
 
 
 
 
 
 
 
 
 
 
 
     Retail
 
$
1,845

$
2,171

$
2,481

$
1,892

 
$
1,901

$
2,333

$
2,613

$
1,961

 
$
8,389

$
8,808

     B2B
 
466

535

595

547

 
556

657

731

635

 
2,143

2,579

     Corporate (Bodybuilding.com)
 




 


24

34

 

58

Expedia Group (excluding trivago)
 
$
2,311

$
2,706

$
3,076

$
2,439

 
$
2,457

$
2,990

$
3,368

$
2,630

 
$
10,532

$
11,445

     trivago
 
319

280

295

190

 
237

251

279

171

 
1,084

938

     Intercompany eliminations
 
(122
)
(106
)
(95
)
(70
)
 
(85
)
(88
)
(89
)
(54
)
 
(393
)
(316
)
Total
 
$
2,508

$
2,880

$
3,276

$
2,559

 
$
2,609

$
3,153

$
3,558

$
2,747

 
$
11,223

$
12,067

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue by business model
 
 
 
 
 
 
 
 
 
 
 
 
 
     Agency
 
$
793

$
955

$
1,128

$
825

 
$
842

$
1,047

$
1,177

$
816

 
$
3,701

$
3,882

     Merchant
 
1,350

1,576

1,770

1,429

 
1,435

1,758

1,980

1,590

 
6,125

6,763

     Advertising, Media & Other
 
365

349

378

305

 
332

348

401

341

 
1,397

1,422

Total
 
$
2,508

$
2,880

$
3,276

$
2,559

 
$
2,609

$
3,153

$
3,558

$
2,747

 
$
11,223

$
12,067

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA by segment(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
     Retail
 
$
217

$
512

$
874

$
485

 
$
195

$
548

$
876

$
502

 
$
2,088

$
2,121

     B2B
 
47

89

123

82

 
72

130

149

96

 
341

447

     Corporate (Unallocated overhead costs)
 
(112
)
(118
)
(116
)
(129
)
 
(115
)
(130
)
(125
)
(149
)
 
(475
)
(519
)
Expedia Group (excluding trivago)
 
$
152

$
483

$
881

$
438

 
$
152

$
548

$
900

$
449

 
$
1,954

$
2,049

     trivago
 
(28
)
(20
)
31

33

 
24

20

12

29

 
16

85

Total
 
$
124

$
463

$
912

$
471

 
$
176

$
568

$
912

$
478

 
$
1,970

$
2,134

1.
“Adjusted EBITDA” (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization) is a non-GAAP measure as defined by the Securities and Exchange Commission (the “SEC”). Please see the section below titled “Adjusted EBITDA (a Non-GAAP Financial Measure)” for an explanation and definition of this non-GAAP measure, as well as a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP.
Adjusted EBITDA (a Non-GAAP Financial Measure)
This presentation includes a financial measure titled Adjusted EBITDA, which is a supplemental measure to GAAP and is defined by the SEC as a non-GAAP financial measure. Adjusted EBITDA is the primary operating metric by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. Adjusted EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to results prepared in accordance with GAAP. Adjusted EBITDA has certain limitations in that it does not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for this limitation by also providing the most directly comparable GAAP measure and descriptions of the reconciling items and adjustments to derive the non-GAAP measure. Adjusted EBITDA excludes certain items related to transactional tax matters, which may ultimately be





settled in cash, and we urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis, Legal Proceedings sections, as well as the notes to the financial statements, included in the Company’s annual and quarterly reports filed with the Securities and Exchange Commission. The Adjusted EBITDA measure used by the Company may be calculated differently from, and therefore may not be comparable to, a similarly titled measure used by other companies.
Adjusted EBITDA is defined as net income (loss) attributable to Expedia Group adjusted for:
(1) net income (loss) attributable to non-controlling interests;
(2) provision for income taxes;
(3) total other expenses, net;
(4) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans;
(5) acquisition-related impacts, including
(i) amortization of intangible assets and goodwill and intangible asset impairment,
(ii) gains (losses) recognized on changes in the value of contingent consideration arrangements; and
(iii) upfront consideration paid to settle employee compensation plans of the acquiree;
(6) certain other items, including restructuring;
(7) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g. hotel and excise taxes), related to court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings;
(8) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period; and
(9) depreciation.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more meaningful comparison of our performance and projected cash earnings with our historical results from prior periods and to the results of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. In addition, we believe that by excluding certain items, such as stock-based compensation and acquisition-related impacts, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced.






EXPEDIA GROUP, INC.
SEGMENT RECONCILIATIONS TO NET INCOME
 
Three months ended March 31, 2018
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
1,845

 
$
466

 
$
197

 
$

 
$
2,508

Intersegment revenue

 

 
122

 
(122
)
 

Revenue
$
1,845

 
$
466

 
$
319

 
$
(122
)
 
$
2,508

Adjusted EBITDA
$
217

 
$
47

 
$
(28
)
 
$
(112
)
 
$
124

Depreciation
(124
)
 
(24
)
 
(3
)
 
(16
)
 
(167
)
Amortization of intangible assets

 

 

 
(72
)
 
(72
)
Stock-based compensation

 

 

 
(50
)
 
(50
)
Legal reserves, occupancy tax and other

 

 

 
(3
)
 
(3
)
Realized (gain) loss on revenue hedges
2

 
1

 

 

 
3

Operating income (loss)
$
95

 
$
24

 
$
(31
)
 
$
(253
)
 
(165
)
Other expense, net
 
 
 
 
 
 
 
 
(4
)
Loss before income taxes
 
 
 
 
 
 
 
 
(169
)
Provision for income taxes
 
 
 
 
 
 
 
 
20

Net loss
 
 
 
 
 
 
 
 
(149
)
Net loss attributable to non-controlling interests
 
 
 
 
 
12

Net loss attributable to Expedia Group, Inc.
 
 
 
 
 
$
(137
)
 
Three months ended June 30, 2018
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
2,171

 
$
535

 
$
174

 
$

 
$
2,880

Intersegment revenue

 

 
106

 
(106
)
 

Revenue
$
2,171

 
$
535

 
$
280

 
$
(106
)
 
$
2,880

Adjusted EBITDA
$
512

 
$
89

 
$
(20
)
 
$
(118
)
 
$
463

Depreciation
(123
)
 
(25
)
 
(4
)
 
(17
)
 
(169
)
Amortization of intangible assets

 

 

 
(72
)
 
(72
)
Impairment of goodwill

 

 

 
(61
)
 
(61
)
Stock-based compensation

 

 

 
(50
)
 
(50
)
Legal reserves, occupancy tax and other

 

 

 
(1
)
 
(1
)
Realized (gain) loss on revenue hedges
6

 
(5
)
 

 

 
1

Operating income (loss)
$
395

 
$
59

 
$
(24
)
 
$
(319
)
 
111

Other expense, net
 
 
 
 
 
 
 
 
(125
)
Loss before income taxes
 
 
 
 
 
 
 
 
(14
)
Provision for income taxes
 
 
 
 
 
 
 
 
5

Net loss
 
 
 
 
 
 
 
 
(9
)
Net loss attributable to non-controlling interests
 
 
 
 
 
10

Net income attributable to Expedia Group, Inc.
 
 
 
 
 
$
1






 
Three months ended September 30, 2018
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
2,481

 
$
595

 
$
200

 
$

 
$
3,276

Intersegment revenue

 

 
95

 
(95
)
 

Revenue
$
2,481

 
$
595

 
$
295

 
$
(95
)
 
$
3,276

Adjusted EBITDA
$
874

 
$
123

 
$
31

 
$
(116
)
 
$
912

Depreciation
(125
)
 
(25
)
 
(4
)
 
(17
)
 
(171
)
Amortization of intangible assets

 

 

 
(71
)
 
(71
)
Stock-based compensation

 

 

 
(54
)
 
(54
)
Legal reserves, occupancy tax and other

 

 

 
78

 
78

Realized (gain) loss on revenue hedges
(11
)
 
(11
)
 

 

 
(22
)
Operating income (loss)
$
738

 
$
87

 
$
27

 
$
(180
)
 
672

Other expense, net
 
 
 
 
 
 
 
 
(60
)
Income before income taxes
 
 
 
 
 
 
 
 
612

Provision for income taxes
 
 
 
 
 
 
 
 
(81
)
Net income
 
 
 
 
 
 
 
 
531

Net income attributable to non-controlling interests
 
 
 
 
 
(6
)
Net income attributable to Expedia Group, Inc.
 
 
 
 
 
$
525

 
Three months ended December 31, 2018
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
1,892

 
$
547

 
$
120

 
$

 
$
2,559

Intersegment revenue

 

 
70

 
(70
)
 

Revenue
$
1,892

 
$
547

 
$
190

 
$
(70
)
 
$
2,559

Adjusted EBITDA
$
485

 
$
82

 
$
33

 
$
(129
)
 
$
471

Depreciation
(121
)
 
(27
)
 
(4
)
 
(17
)
 
(169
)
Amortization of intangible assets

 

 

 
(68
)
 
(68
)
Impairment of goodwill

 

 

 
(25
)
 
(25
)
Impairment of intangible assets

 

 

 
(42
)
 
(42
)
Stock-based compensation

 

 

 
(49
)
 
(49
)
Legal reserves, occupancy tax and other

 

 

 
(15
)
 
(15
)
Realized (gain) loss on revenue hedges
(2
)
 
(5
)
 

 

 
(7
)
Operating income (loss)
$
362

 
$
50

 
$
29

 
$
(345
)
 
96

Other expense, net
 
 
 
 
 
 
 
 
(40
)
Income before income taxes
 
 
 
 
 
 
 
 
56

Provision for income taxes
 
 
 
 
 
 
 
 
(31
)
Net income
 
 
 
 
 
 
 
 
25

Net income attributable to non-controlling interests
 
 
 
 
 
(8
)
Net income attributable to Expedia Group, Inc.
 
 
 
 
 
$
17






 
Year ended December 31, 2018
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
8,389

 
$
2,143

 
$
691

 
$

 
$
11,223

Intersegment revenue

 

 
393

 
(393
)
 

Revenue
$
8,389

 
$
2,143

 
$
1,084

 
$
(393
)
 
$
11,223

Adjusted EBITDA
$
2,088

 
$
341

 
$
16

 
$
(475
)
 
$
1,970

Depreciation
(493
)
 
(101
)
 
(15
)
 
(67
)
 
(676
)
Amortization of intangible assets

 

 

 
(283
)
 
(283
)
Impairment of goodwill

 

 

 
(86
)
 
(86
)
Impairment of intangible assets

 

 

 
(42
)
 
(42
)
Stock-based compensation

 

 

 
(203
)
 
(203
)
Legal reserves, occupancy tax and other

 

 

 
59

 
59

Realized (gain) loss on revenue hedges
(5
)
 
(20
)
 

 

 
(25
)
Operating income (loss)
$
1,590

 
$
220

 
$
1

 
$
(1,097
)
 
714

Other expense, net
 
 
 
 
 
 
 
 
(229
)
Income before income taxes
 
 
 
 
 
 
 
 
485

Provision for income taxes
 
 
 
 
 
 
 
 
(87
)
Net income
 
 
 
 
 
 
 
 
398

Net loss attributable to non-controlling interests
 
 
 
 
 
8

Net income attributable to Expedia Group, Inc.
 
 
 
 
 
$
406

 
Three months ended March 31, 2019
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
1,901

 
$
556

 
$
152

 
$

 
$
2,609

Intersegment revenue

 

 
85

 
(85
)
 

Revenue
$
1,901

 
$
556

 
$
237

 
$
(85
)
 
$
2,609

Adjusted EBITDA
$
195

 
$
72

 
$
24

 
$
(115
)
 
$
176

Depreciation
(128
)
 
(27
)
 
(3
)
 
(18
)
 
(176
)
Amortization of intangible assets

 

 

 
(52
)
 
(52
)
Stock-based compensation

 

 

 
(56
)
 
(56
)
Legal reserves, occupancy tax and other

 

 

 
(10
)
 
(10
)
Restructuring and related reorganization charges

 

 

 
(10
)
 
(10
)
Realized (gain) loss on revenue hedges
(2
)
 
(1
)
 

 

 
(3
)
Operating income (loss)
$
65

 
$
44

 
$
21

 
$
(261
)
 
(131
)
Other expense, net
 
 
 
 
 
 
 
 
(10
)
Loss before income taxes
 
 
 
 
 
 
 
 
(141
)
Provision for income taxes
 
 
 
 
 
 
 
 
41

Net loss
 
 
 
 
 
 
 
 
(100
)
Net income attributable to non-controlling interests
 
 
 
 
 
(3
)
Net loss attributable to Expedia Group, Inc.
 
 
 
 
 
$
(103
)





 
Three months ended June 30, 2019
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
2,333

 
$
657

 
$
163

 
$

 
$
3,153

Intersegment revenue

 

 
88

 
(88
)
 

Revenue
$
2,333

 
$
657

 
$
251

 
$
(88
)
 
$
3,153

Adjusted EBITDA
$
548

 
$
130

 
$
20

 
$
(130
)
 
$
568

Depreciation
(127
)
 
(27
)
 
(3
)
 
(19
)
 
(176
)
Amortization of intangible assets

 

 

 
(52
)
 
(52
)
Stock-based compensation

 

 

 
(59
)
 
(59
)
Legal reserves, occupancy tax and other

 

 

 
(4
)
 
(4
)
Restructuring and related reorganization charges

 

 

 
(4
)
 
(4
)
Realized (gain) loss on revenue hedges
(4
)
 
(4
)
 

 

 
(8
)
Operating income (loss)
$
417

 
$
99

 
$
17

 
$
(268
)
 
265

Other expense, net
 
 
 
 
 
 
 
 
(30
)
Income before income taxes
 
 
 
 
 
 
 
 
235

Provision for income taxes
 
 
 
 
 
 
 
 
(48
)
Net income
 
 
 
 
 
 
 
 
187

Net income attributable to non-controlling interests
 
 
 
 
 
(4
)
Net income attributable to Expedia Group, Inc.
 
 
 
 
 
$
183

 
Three months ended September 30, 2019
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
2,613

 
$
731

 
$
190

 
$
24

 
$
3,558

Intersegment revenue

 

 
89

 
(89
)
 

Revenue
$
2,613

 
$
731

 
$
279

 
$
(65
)
 
$
3,558

Adjusted EBITDA
$
876

 
$
149

 
$
12

 
$
(125
)
 
$
912

Depreciation
(128
)
 
(27
)
 
(3
)
 
(20
)
 
(178
)
Amortization of intangible assets

 

 

 
(50
)
 
(50
)
Stock-based compensation

 

 

 
(60
)
 
(60
)
Legal reserves, occupancy tax and other

 

 

 
(11
)
 
(11
)
Restructuring and related reorganization charges

 

 

 
(2
)
 
(2
)
Realized (gain) loss on revenue hedges
4

 
(6
)
 

 

 
(2
)
Operating income (loss)
$
752

 
$
116

 
$
9

 
$
(268
)
 
609

Other expense, net
 
 
 
 
 
 
 
 
(48
)
Income before income taxes
 
 
 
 
 
 
 
 
561

Provision for income taxes
 
 
 
 
 
 
 
 
(154
)
Net income
 
 
 
 
 
 
 
 
407

Net loss attributable to non-controlling interests
 
 
 
 
 
2

Net income attributable to Expedia Group, Inc.
 
 
 
 
 
$
409






 
Three months ended December 31, 2019
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
1,961

 
$
635

 
$
117

 
$
34

 
$
2,747

Intersegment revenue

 

 
54

 
(54
)
 

Revenue
$
1,961

 
$
635

 
$
171

 
$
(20
)
 
$
2,747

Adjusted EBITDA
$
502

 
$
96

 
$
29

 
$
(149
)
 
$
478

Depreciation
(129
)
 
(29
)
 
(2
)
 
(22
)
 
(182
)
Amortization of intangible assets

 

 

 
(44
)
 
(44
)
Stock-based compensation

 

 

 
(66
)
 
(66
)
Legal reserves, occupancy tax and other

 

 

 
(9
)
 
(9
)
Restructuring and related reorganization charges

 

 

 
(8
)
 
(8
)
Realized (gain) loss on revenue hedges
(6
)
 
(3
)
 

 

 
(9
)
Operating income (loss)
$
367

 
$
64

 
$
27

 
$
(298
)
 
160

Other expense, net
 
 
 
 
 
 
 
 
(40
)
Income before income taxes
 
 
 
 
 
 
 
 
120

Provision for income taxes
 
 
 
 
 
 
 
 
(42
)
Net income
 
 
 
 
 
 
 
 
78

Net income attributable to non-controlling interests
 
 
 
 
 
(2
)
Net income attributable to Expedia Group, Inc.
 
 
 
 
 
$
76

 
Year ended December 31, 2019
 
Retail
 
B2B
 
trivago
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
8,808

 
$
2,579

 
$
622

 
$
58

 
$
12,067

Intersegment revenue

 

 
316

 
(316
)
 

Revenue
$
8,808

 
$
2,579

 
$
938

 
$
(258
)
 
$
12,067

Adjusted EBITDA
$
2,121

 
$
447

 
$
85

 
$
(519
)
 
$
2,134

Depreciation
(512
)
 
(110
)
 
(11
)
 
(79
)
 
(712
)
Amortization of intangible assets

 

 

 
(198
)
 
(198
)
Stock-based compensation

 

 

 
(241
)
 
(241
)
Legal reserves, occupancy tax and other

 

 

 
(34
)
 
(34
)
Restructuring and related reorganization charges

 

 

 
(24
)
 
(24
)
Realized (gain) loss on revenue hedges
(8
)
 
(14
)
 

 

 
(22
)
Operating income (loss)
$
1,601

 
$
323

 
$
74

 
$
(1,095
)
 
903

Other expense, net
 
 
 
 
 
 
 
 
(128
)
Income before income taxes
 
 
 
 
 
 
 
 
775

Provision for income taxes
 
 
 
 
 
 
 
 
(203
)
Net income
 
 
 
 
 
 
 
 
572

Net income attributable to non-controlling interests
 
 
 
 
 
(7
)
Net income attributable to Expedia Group, Inc.
 
 
 
 
 
$
565