Delaware | 1-36691 | 06-1528493 | ||||||||||||
(State or other Jurisdiction of
Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
800 Connecticut Avenue | Norwalk | Connecticut | 06854 | |||||||||||
(Address of principal office) | (zip code) |
Title of Each Class: | Trading Symbol | Name of Each Exchange on which Registered: | |||||||||||||||
Common Stock par value $0.008 per share | BKNG | The NASDAQ Global Select Market | |||||||||||||||
0.800% Senior Notes Due 2022 | BKNG 22A | The NASDAQ Stock Market LLC | |||||||||||||||
2.150% Senior Notes Due 2022 | BKNG 22 | The NASDAQ Stock Market LLC | |||||||||||||||
2.375% Senior Notes Due 2024 | BKNG 24 | The NASDAQ Stock Market LLC | |||||||||||||||
1.800% Senior Notes Due 2027 | BKNG 27 | The NASDAQ Stock Market LLC |
Exhibit
Number |
Description | ||||
Press release (which includes a financial and statistical supplement and related information) issued by Booking Holdings Inc. on February 24, 2021 relating to, among other things, its fourth quarter and year ended December 31, 2020 earnings. The consolidated balance sheet at December 31, 2020 and consolidated statements of operations for three and twelve months ended December 31, 2020 and consolidated statement of cash flows for the twelve months ended December 31, 2020 shall be treated as "filed" for the purposes of the Securities and Exchange Act of 1934, as amended, and the remaining information shall be treated as "furnished".
|
|||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
BOOKING HOLDINGS INC. | |||||||||||
By: | /s/ David I. Goulden | ||||||||||
Name: | David I. Goulden | ||||||||||
Title: | Executive Vice President and Chief Financial Officer |
December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 10,562 | $ | 6,312 | ||||||||||
Short-term investments (Available-for-sale debt securities:
Amortized cost of $500 and $998, respectively) |
501 | 998 | ||||||||||||
Accounts receivable, net (Allowance for expected credit losses of $166 and $49, respectively) | 529 | 1,680 | ||||||||||||
Prepaid expenses, net (Allowance for expected credit losses of $22 and $6, respectively) | 337 | 479 | ||||||||||||
Other current assets | 277 | 364 | ||||||||||||
Total current assets | 12,206 | 9,833 | ||||||||||||
Property and equipment, net | 756 | 738 | ||||||||||||
Operating lease assets | 529 | 620 | ||||||||||||
Intangible assets, net | 1,812 | 1,954 | ||||||||||||
Goodwill | 1,895 | 2,913 | ||||||||||||
Long-term investments (Includes available-for-sale debt securities:
Amortized cost of $225 and $2,192, respectively) |
3,759 | 4,477 | ||||||||||||
Other assets, net (Allowance for expected credit losses of $33 at December 31, 2020) | 917 | 867 | ||||||||||||
Total assets | $ | 21,874 | $ | 21,402 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 735 | $ | 1,239 | ||||||||||
Accrued expenses and other current liabilities | 1,382 | 1,578 | ||||||||||||
Deferred merchant bookings | 323 | 1,561 | ||||||||||||
Convertible debt | 985 | 988 | ||||||||||||
Total current liabilities | 3,425 | 5,366 | ||||||||||||
Deferred income taxes | 1,127 | 876 | ||||||||||||
Operating lease liabilities | 366 | 462 | ||||||||||||
Long-term U.S. transition tax liability | 923 | 1,021 | ||||||||||||
Other long-term liabilities | 111 | 104 | ||||||||||||
Long-term debt | 11,029 | 7,640 | ||||||||||||
Total liabilities | 16,981 | 15,469 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Stockholders' equity: | ||||||||||||||
Common stock, $0.008 par value,
Authorized shares: 1,000,000,000 Issued shares: 63,406,451 and 63,179,471, respectively |
— | — | ||||||||||||
Treasury stock, 22,446,897 and 21,762,070 shares, respectively | (24,128) | (22,864) | ||||||||||||
Additional paid-in capital | 5,851 | 5,756 | ||||||||||||
Retained earnings | 23,288 | 23,232 | ||||||||||||
Accumulated other comprehensive loss | (118) | (191) | ||||||||||||
Total stockholders' equity | 4,893 | 5,933 | ||||||||||||
Total liabilities and stockholders' equity | $ | 21,874 | $ | 21,402 |
Three Months Ended
December 31, |
Year Ended
December 31, |
|||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Agency revenues | $ | 810 | $ | 2,126 | $ | 4,314 | $ | 10,117 | ||||||||||||||||||
Merchant revenues | 376 | 955 | 2,117 | 3,830 | ||||||||||||||||||||||
Advertising and other revenues | 52 | 258 | 365 | 1,119 | ||||||||||||||||||||||
Total revenues | 1,238 | 3,339 | 6,796 | 15,066 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Marketing expenses | 386 | 992 | 2,179 | 4,967 | ||||||||||||||||||||||
Sales and other expenses | 118 | 216 | 755 | 955 | ||||||||||||||||||||||
Personnel, including stock-based compensation of $70, $76, $233 and $308, respectively
|
491 | 562 | 1,944 | 2,248 | ||||||||||||||||||||||
General and administrative | 128 | 201 | 581 | 797 | ||||||||||||||||||||||
Information technology | 80 | 79 | 299 | 285 | ||||||||||||||||||||||
Depreciation and amortization | 114 | 117 | 458 | 469 | ||||||||||||||||||||||
Restructuring and other exit costs | 74 | — | 149 | — | ||||||||||||||||||||||
Impairment of goodwill | — | — | 1,062 | — | ||||||||||||||||||||||
Total operating expenses | 1,391 | 2,167 | 7,427 | 9,721 | ||||||||||||||||||||||
Operating (loss) income | (153) | 1,172 | (631) | 5,345 | ||||||||||||||||||||||
Interest expense | (98) | (62) | (356) | (266) | ||||||||||||||||||||||
Other income (expense), net | 496 | 310 | 1,554 | 879 | ||||||||||||||||||||||
Earnings before income taxes | 245 | 1,420 | 567 | 5,958 | ||||||||||||||||||||||
Income tax expense | 410 | 249 | 508 | 1,093 | ||||||||||||||||||||||
Net (loss) income | $ | (165) | $ | 1,171 | $ | 59 | $ | 4,865 | ||||||||||||||||||
Net (loss) income applicable to common stockholders per basic common share | $ | (4.02) | $ | 28.07 | $ | 1.45 | $ | 112.93 | ||||||||||||||||||
Weighted-average number of basic common shares outstanding (in 000's) | 40,944 | 41,724 | 40,974 | 43,082 | ||||||||||||||||||||||
Net (loss) income applicable to common stockholders per diluted common share | $ | (4.02) | $ | 27.75 | $ | 1.44 | $ | 111.82 | ||||||||||||||||||
Weighted-average number of diluted common shares outstanding (in 000's) | 40,944 | 42,210 | 41,160 | 43,509 |
Year Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||||||||
Net income | $ | 59 | $ | 4,865 | $ | 3,998 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 458 | 469 | 426 | |||||||||||||||||
Provision for expected credit losses and chargebacks | 319 | 138 | 163 | |||||||||||||||||
Deferred income tax expense (benefit) | 213 | 122 | (150) | |||||||||||||||||
Net (gains) losses on marketable equity securities | (1,811) | (745) | 367 | |||||||||||||||||
Stock-based compensation expense and other stock-based payments | 255 | 325 | 331 | |||||||||||||||||
Amortization of debt discount and debt issuance costs | 64 | 58 | 59 | |||||||||||||||||
Operating lease amortization | 184 | 172 | — | |||||||||||||||||
Unrealized foreign currency transaction losses (gains) on Euro-denominated debt | 200 | (7) | — | |||||||||||||||||
Impairment of goodwill | 1,062 | — | — | |||||||||||||||||
Impairment of investment | 100 | — | — | |||||||||||||||||
Other | 2 | 9 | 19 | |||||||||||||||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||||||||||||||
Accounts receivable | 891 | (323) | (319) | |||||||||||||||||
Prepaid expenses and other current assets | 161 | (263) | (201) | |||||||||||||||||
Deferred merchant bookings and other current liabilities | (2,266) | 480 | 635 | |||||||||||||||||
Long-term assets and liabilities | 194 | (435) | 10 | |||||||||||||||||
Net cash provided by operating activities | 85 | 4,865 | 5,338 | |||||||||||||||||
INVESTING ACTIVITIES: | ||||||||||||||||||||
Purchase of investments | (74) | (672) | (2,686) | |||||||||||||||||
Proceeds from sale and maturity of investments | 2,997 | 8,099 | 5,616 | |||||||||||||||||
Additions to property and equipment | (286) | (368) | (442) | |||||||||||||||||
Acquisitions and other investments, net of cash acquired | — | (9) | (273) | |||||||||||||||||
Net cash provided by investing activities | 2,637 | 7,050 | 2,215 | |||||||||||||||||
FINANCING ACTIVITIES: | ||||||||||||||||||||
Proceeds from revolving credit facility and short-term borrowings | — | 400 | 25 | |||||||||||||||||
Repayments of revolving credit facility and short-term borrowings | — | (425) | — | |||||||||||||||||
Proceeds from the issuance of long-term debt | 4,108 | — | — | |||||||||||||||||
Payments for conversion of debt | (1,244) | — | (1,487) | |||||||||||||||||
Payments for repurchase of common stock | (1,303) | (8,187) | (5,971) | |||||||||||||||||
Other financing activities | (33) | (8) | 2 | |||||||||||||||||
Net cash provided by (used in) financing activities | 1,528 | (8,220) | (7,431) | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | — | (8) | (40) | |||||||||||||||||
Net increase in cash and cash equivalents and restricted cash and cash equivalents | 4,250 | 3,687 | 82 | |||||||||||||||||
Total cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 6,332 | 2,645 | 2,563 | |||||||||||||||||
Total cash and cash equivalents and restricted cash and cash equivalents, end of period | $ | 10,582 | $ | 6,332 | $ | 2,645 | ||||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||||||||||
Cash paid during the period for income taxes | $ | 319 | $ | 1,074 | $ | 1,169 | ||||||||||||||
Cash paid during the period for interest | $ | 278 | $ | 221 | $ | 219 | ||||||||||||||
Non-cash operating and financing activity for an acquisition | $ | — | $ | — | $ | 51 | ||||||||||||||
Non-cash investing and financing activity for an acquisition | $ | — | $ | — | $ | 59 |
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA |
Three Months Ended
December 31, |
Year Ended
December 31, |
|||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Net (loss) income | $ | (165) | $ | 1,171 | $ | 59 | $ | 4,865 | |||||||||||||||||||||
(a) | Adjustment to personnel expenses | — | — | — | 66 | ||||||||||||||||||||||||
(b) | Depreciation and amortization | 114 | 117 | 458 | 469 | ||||||||||||||||||||||||
(c) | Impairment of goodwill | — | — | 1,062 | — | ||||||||||||||||||||||||
(b) | Interest and dividend income | (5) | (39) | (54) | (152) | ||||||||||||||||||||||||
(b) | Interest expense | 98 | 62 | 356 | 266 | ||||||||||||||||||||||||
(d) | Net gains on marketable equity securities | (553) | (326) | (1,811) | (745) | ||||||||||||||||||||||||
(e) | Impairment of investment | — | — | 100 | — | ||||||||||||||||||||||||
(f) | Remeasurement losses (gains) on certain Euro-denominated debt | 61 | 47 | 200 | (7) | ||||||||||||||||||||||||
(b) | Income tax expense | 410 | 249 | 508 | 1,093 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | (38) | $ | 1,282 | $ | 879 | $ | 5,855 | |||||||||||||||||||||
Adjusted EBITDA as a % of Total Revenues | (3.1) | % | 38.4 | % | 12.9 | % | 38.9 | % |
RECONCILIATION OF NET (LOSS) INCOME TO NON-GAAP NET (LOSS) INCOME AND NON-GAAP NET (LOSS) INCOME PER DILUTED COMMON SHARE |
Three Months Ended
December 31, |
Year Ended
December 31, |
|||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Net (loss) income | $ | (165) | $ | 1,171 | $ | 59 | $ | 4,865 | |||||||||||||||||||||
(a) | Adjustment to personnel expenses | — | — | — | 66 | ||||||||||||||||||||||||
(c) | Impairment of goodwill | — | — | 1,062 | — | ||||||||||||||||||||||||
(d) | Net gains on marketable equity securities | (553) | (326) | (1,811) | (745) | ||||||||||||||||||||||||
(e) | Impairment of investment | — | — | 100 | — | ||||||||||||||||||||||||
(f) | Remeasurement losses (gains) on certain Euro-denominated debt | 61 | 47 | 200 | (7) | ||||||||||||||||||||||||
(g) | Amortization of intangible assets | 41 | 43 | 167 | 175 | ||||||||||||||||||||||||
(h) | Debt discount amortization related to convertible debt | 11 | 11 | 49 | 45 | ||||||||||||||||||||||||
(i) | Income taxes on convertible notes held for investment | — | — | 15 | 21 | ||||||||||||||||||||||||
(j) | Impact of Tax Act | — | (3) | (8) | (49) | ||||||||||||||||||||||||
(k) | French and Italian unrecognized tax benefits | — | — | 64 | — | ||||||||||||||||||||||||
(l) |
Tax impact of Non-GAAP adjustments
|
582 | 40 | 297 | 92 | ||||||||||||||||||||||||
Non-GAAP Net (loss) income | $ | (23) | $ | 984 | $ | 194 | $ | 4,463 | |||||||||||||||||||||
Weighted-average number of diluted common shares outstanding (in 000's) | 40,944 | 42,210 | 41,160 | 43,509 | |||||||||||||||||||||||||
Non-GAAP Net (loss) income per diluted common share | $ | (0.57) | $ | 23.30 | $ | 4.71 | $ | 102.57 |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW |
Year Ended
December 31, |
|||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 85 | $ | 4,865 | $ | 5,338 | ||||||||||||||||||||
(m) | Additions to property and equipment | (286) | (368) | (442) | ||||||||||||||||||||||
Free cash flow | $ | (201) | $ | 4,497 | $ | 4,896 | ||||||||||||||||||||
Free cash flow as a % of Total Revenues | (3.0) | % | 29.8 | % | 33.8 | % |
Notes:
|
|||||
(a) |
Adjustment to correct an immaterial error related to the nonpayment of prior-period wage-related tax on compensation paid to certain highly-compensated former employees in the year of separation which is recorded in Personnel expenses.
|
||||
(b) |
Amounts are excluded from Net (loss) income to calculate Adjusted EBITDA.
|
||||
(c) | Impairment of goodwill related to our OpenTable and KAYAK reporting unit is recorded in Operating expenses and excluded from Net (loss) income to calculate Non-GAAP Net (loss) income and Adjusted EBITDA. | ||||
(d) |
Net gains on marketable equity securities are recorded in Other income (expense), net and excluded from Net (loss) income to calculate Non-GAAP Net (loss) income and Adjusted EBITDA.
|
||||
(e) | Impairment of investment in Didi Chuxing equity securities are recorded in Other income (expense), net and excluded from Net (loss) income to calculate Non-GAAP Net (loss) income and Adjusted EBITDA. | ||||
(f) |
Adjustment for foreign currency transaction gains or losses on our Euro-denominated debt that is not designated as a hedging instrument for accounting purposes is recorded in Other income (expense), net and excluded from Net (loss) income to calculate Non-GAAP Net (loss) income and Adjusted EBITDA.
|
||||
(g) |
Amortization of intangible assets is recorded in Depreciation and amortization and excluded from Net (loss) income to calculate Non-GAAP Net (loss) income.
|
||||
(h) |
Non-cash interest expense related to the amortization of debt discount is recorded in Interest expense and is excluded from Net (loss) income to calculate Non-GAAP Net (loss) income.
|
||||
(i) |
Reclassification of income taxes related to convertible notes held for investment that matured in the 2nd quarter of 2020 and the 3rd quarter of 2019, and were reclassified from Accumulated other comprehensive loss to Income tax expense.
|
||||
(j) |
Benefit for U.S. Federal tax credits resulting from the Tax Act and an adjustment to the one-time deemed repatriation liability resulting from the Tax Act.
|
||||
(k) | Unrecognized tax benefits related to French and Italian tax matters and is excluded from Net (loss) income to calculate Non-GAAP Net (loss) income. | ||||
(l) |
Reflects the tax impact of Non-GAAP adjustments above and changes in tax estimates which are excluded from Net (loss) income to calculate Non-GAAP Net (loss) income.
|
||||
(m) |
Additions to property and equipment are included in the calculation of Free cash flow.
|
||||
For a more detailed discussion of the adjustments described above, please see the section in our press release entitled "Non-GAAP Financial Measures" which provides a definition and information about the use of non-GAAP financial measures.
|
Units Sold | 4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | 4Q20 | |||||||||||||||||||||||||||||||||||||||||||||||
Room Nights
|
171 | 217 | 213 | 223 | 191 | 124 | 28 | 127 | 76 | |||||||||||||||||||||||||||||||||||||||||||||||
Year/Year Growth/ (Decline) | 13.0 | % | 10.3 | % | 11.8 | % | 11.0 | % | 11.8 | % | (42.8) | % | (86.7) | % | (43.1) | % | (60.4) | % | ||||||||||||||||||||||||||||||||||||||
Rental Car Days | 15 | 18 | 21 | 21 | 16 | 12 | 2 | 9 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
Year/Year (Decline)/Growth | (0.6) | % | (1.3) | % | 1.2 | % | 8.5 | % | 11.9 | % | (36.4) | % | (90.4) | % | (55.6) | % | (52.2) | % | ||||||||||||||||||||||||||||||||||||||
Airline Tickets | 2 | 2 | 2 | 2 | 2 | 2 | 1 | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
Year/Year (Decline)/Growth | (1.3) | % | 4.4 | % | 2.4 | % | (2.5) | % | 11.3 | % | (8.0) | % | (69.7) | % | (9.3) | % | 4.0 | % | ||||||||||||||||||||||||||||||||||||||
Gross Bookings(2)
|
4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | 4Q20 | |||||||||||||||||||||||||||||||||||||||||||||||
Agency | $ | 15,230 | $ | 19,678 | $ | 18,638 | $ | 18,118 | $ | 14,218 | $ | 8,320 | $ | 1,535 | $ | 9,521 | $ | 5,098 | ||||||||||||||||||||||||||||||||||||||
Merchant | 4,322 | 5,732 | 6,401 | 7,163 | 6,495 | 4,073 | 771 | 3,861 | 2,215 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 19,552 | $ | 25,410 | $ | 25,039 | $ | 25,281 | $ | 20,713 | $ | 12,393 | $ | 2,306 | $ | 13,382 | $ | 7,313 | ||||||||||||||||||||||||||||||||||||||
Gross Bookings Year/Year Growth/(Decline) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency | 1.4 | % | (4.4) | % | (2.4) | % | (4.8) | % | (6.6) | % | (57.7) | % | (91.8) | % | (47.4) | % | (64.1) | % | ||||||||||||||||||||||||||||||||||||||
Merchant | 45.8 | % | 29.3 | % | 33.2 | % | 36.5 | % | 50.3 | % | (28.9) | % | (88.0) | % | (46.1) | % | (65.9) | % | ||||||||||||||||||||||||||||||||||||||
Total | 8.7 | % | 1.6 | % | 4.8 | % | 4.1 | % | 5.9 | % | (51.2) | % | (90.8) | % | (47.1) | % | (64.7) | % | ||||||||||||||||||||||||||||||||||||||
Constant Currency | 13 | % | 8 | % | 10 | % | 7 | % | 7 | % | (50) | % | (91) | % | (48) | % | (65) | % | ||||||||||||||||||||||||||||||||||||||
4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | 4Q20 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 3,213 | $ | 2,837 | $ | 3,850 | $ | 5,040 | $ | 3,339 | $ | 2,288 | $ | 630 | $ | 2,640 | $ | 1,238 | ||||||||||||||||||||||||||||||||||||||
Year/Year Growth/(Decline) | 16.3 | % | (3.1) | % | 8.9 | % | 3.9 | % | 3.9 | % | (19.3) | % | (83.7) | % | (47.6) | % | (62.9) | % | ||||||||||||||||||||||||||||||||||||||
Constant Currency | 21 | % | 3 | % | 14 | % | 7 | % | 5 | % | (17) | % | (83) | % | (49) | % | (63) | % |