|
☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Delaware
|
|
20-2705720
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer
|
|
☒
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Accelerated filer
|
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☐
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|||
Non-accelerated filer
|
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☐ (Do not check if a smaller reporting company)
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Smaller reporting company
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☐
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|
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Emerging growth company
|
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☐
|
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Common stock, $0.0001 par value per share
|
|
136,174,433
|
|
shares
|
|
Class B common stock, $0.0001 par value per share
|
|
12,799,999
|
|
shares
|
|
|
|
|
Part I
|
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Item 1
|
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Item 2
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Item 3
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Item 4
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Part II
|
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Item 1
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Item 1A
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Item 2
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Item 6
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Three months ended
September 30, |
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Nine months ended
September 30, |
||||||||||||
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2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
3,276
|
|
|
$
|
2,966
|
|
|
$
|
8,664
|
|
|
$
|
7,741
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
(1)
|
504
|
|
|
459
|
|
|
1,489
|
|
|
1,320
|
|
||||
Selling and marketing
(1)
|
1,501
|
|
|
1,461
|
|
|
4,558
|
|
|
4,174
|
|
||||
Technology and content
(1)
|
404
|
|
|
350
|
|
|
1,200
|
|
|
1,015
|
|
||||
General and administrative
(1)
|
202
|
|
|
141
|
|
|
597
|
|
|
478
|
|
||||
Amortization of intangible assets
|
71
|
|
|
71
|
|
|
215
|
|
|
204
|
|
||||
Impairment of goodwill
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
||||
Legal reserves, occupancy tax and other
|
(78
|
)
|
|
(1
|
)
|
|
(74
|
)
|
|
23
|
|
||||
Restructuring and related reorganization charges
|
—
|
|
|
4
|
|
|
—
|
|
|
16
|
|
||||
Operating income
|
672
|
|
|
481
|
|
|
618
|
|
|
511
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest income
|
34
|
|
|
9
|
|
|
61
|
|
|
25
|
|
||||
Interest expense
|
(47
|
)
|
|
(44
|
)
|
|
(149
|
)
|
|
(130
|
)
|
||||
Other, net
|
(47
|
)
|
|
(31
|
)
|
|
(101
|
)
|
|
(65
|
)
|
||||
Total other expense, net
|
(60
|
)
|
|
(66
|
)
|
|
(189
|
)
|
|
(170
|
)
|
||||
Income before income taxes
|
612
|
|
|
415
|
|
|
429
|
|
|
341
|
|
||||
Provision for income taxes
|
(81
|
)
|
|
(66
|
)
|
|
(56
|
)
|
|
(22
|
)
|
||||
Net income
|
531
|
|
|
349
|
|
|
373
|
|
|
319
|
|
||||
Net (income) loss attributable to non-controlling interests
|
(6
|
)
|
|
3
|
|
|
16
|
|
|
4
|
|
||||
Net income attributable to Expedia Group, Inc.
|
$
|
525
|
|
|
$
|
352
|
|
|
$
|
389
|
|
|
$
|
323
|
|
|
|
|
|
|
|
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|
||||||||
Earnings per share attributable to Expedia Group, Inc. available to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
3.51
|
|
|
$
|
2.32
|
|
|
$
|
2.59
|
|
|
$
|
2.13
|
|
Diluted
|
3.43
|
|
|
2.23
|
|
|
2.54
|
|
|
2.06
|
|
||||
Shares used in computing earnings per share (000's):
|
|
|
|
|
|
|
|
||||||||
Basic
|
149,482
|
|
|
152,088
|
|
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150,450
|
|
|
151,406
|
|
||||
Diluted
|
153,153
|
|
|
157,760
|
|
|
153,404
|
|
|
156,520
|
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||||
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|
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||||||||
Dividends declared per common share
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$
|
0.32
|
|
|
$
|
0.30
|
|
|
$
|
0.92
|
|
|
$
|
0.86
|
|
(1) Includes stock-based compensation as follows:
|
|
|
|
|
|
|
|
||||||||
Cost of revenue
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
8
|
|
|
$
|
8
|
|
Selling and marketing
|
11
|
|
|
10
|
|
|
34
|
|
|
31
|
|
||||
Technology and content
|
15
|
|
|
14
|
|
|
46
|
|
|
42
|
|
||||
General and administrative
|
25
|
|
|
(19
|
)
|
|
66
|
|
|
23
|
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
531
|
|
|
$
|
349
|
|
|
$
|
373
|
|
|
$
|
319
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustments, net of tax
(1)
|
(14
|
)
|
|
57
|
|
|
(63
|
)
|
|
181
|
|
||||
Unrealized gains on available for sale securities, net of tax
(2)
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
||||
Other comprehensive income (loss), net of tax
|
(14
|
)
|
|
78
|
|
|
(63
|
)
|
|
202
|
|
||||
Comprehensive income
|
517
|
|
|
427
|
|
|
310
|
|
|
521
|
|
||||
Less: Comprehensive income (loss) attributable to non-controlling interests
|
3
|
|
|
10
|
|
|
(29
|
)
|
|
41
|
|
||||
Comprehensive income attributable to Expedia Group, Inc.
|
$
|
514
|
|
|
$
|
417
|
|
|
$
|
339
|
|
|
$
|
480
|
|
(1)
|
Currency translation adjustments include tax expense of
$1 million
and
$6 million
associated with net investment hedges for the
three and nine
months ended
September 30, 2018
and a tax benefit of
$9 million
and
$31 million
for the
three and nine
months ended
September 30, 2017
.
|
(2)
|
Net of tax charges of
$14
million for both of the
three and nine
months ended
September 30, 2017
. Net gains (losses) recognized and reclassified during the
three and nine
months ended
September 30, 2017
were immaterial.
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,920
|
|
|
$
|
2,847
|
|
Restricted cash and cash equivalents
|
186
|
|
|
69
|
|
||
Short-term investments
|
458
|
|
|
468
|
|
||
Accounts receivable, net of allowance of $35 and $31
|
2,294
|
|
|
1,866
|
|
||
Income taxes receivable
|
36
|
|
|
21
|
|
||
Prepaid expenses and other current assets
|
278
|
|
|
269
|
|
||
Total current assets
|
6,172
|
|
|
5,540
|
|
||
Property and equipment, net
|
1,769
|
|
|
1,575
|
|
||
Long-term investments and other assets
|
717
|
|
|
845
|
|
||
Deferred income taxes
|
225
|
|
|
18
|
|
||
Intangible assets, net
|
2,101
|
|
|
2,309
|
|
||
Goodwill
|
8,157
|
|
|
8,229
|
|
||
TOTAL ASSETS
|
$
|
19,141
|
|
|
$
|
18,516
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable, merchant
|
$
|
1,877
|
|
|
$
|
1,838
|
|
Accounts payable, other
|
875
|
|
|
698
|
|
||
Deferred merchant bookings
|
4,795
|
|
|
3,219
|
|
||
Deferred revenue
|
346
|
|
|
326
|
|
||
Income taxes payable
|
175
|
|
|
33
|
|
||
Accrued expenses and other current liabilities
|
695
|
|
|
1,265
|
|
||
Current maturities of long-term debt
|
—
|
|
|
500
|
|
||
Total current liabilities
|
8,763
|
|
|
7,879
|
|
||
Long-term debt, excluding current maturities
|
3,727
|
|
|
3,749
|
|
||
Deferred income taxes
|
250
|
|
|
329
|
|
||
Other long-term liabilities
|
455
|
|
|
408
|
|
||
Redeemable non-controlling interests
|
19
|
|
|
22
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock $.0001 par value
|
—
|
|
|
—
|
|
||
Authorized shares: 1,600,000
|
|
|
|
||||
Shares issued: 231,039 and 228,467
|
|
|
|
||||
Shares outstanding: 136,420 and 138,939
|
|
|
|
||||
Class B common stock $.0001 par value
|
—
|
|
|
—
|
|
||
Authorized shares: 400,000
|
|
|
|
||||
Shares issued and outstanding: 12,800 and 12,800
|
|
|
|
||||
Additional paid-in capital
|
9,476
|
|
|
9,163
|
|
||
Treasury stock - Common stock, at cost
|
(5,439
|
)
|
|
(4,822
|
)
|
||
Shares: 94,619 and 89,528
|
|
|
|
||||
Retained earnings
|
551
|
|
|
331
|
|
||
Accumulated other comprehensive income (loss)
|
(202
|
)
|
|
(149
|
)
|
||
Total Expedia Group, Inc. stockholders’ equity
|
4,386
|
|
|
4,523
|
|
||
Non-redeemable non-controlling interests
|
1,541
|
|
|
1,606
|
|
||
Total stockholders’ equity
|
5,927
|
|
|
6,129
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
19,141
|
|
|
$
|
18,516
|
|
|
Nine months ended
September 30, |
||||||
|
2018
|
|
2017
|
||||
Operating activities:
|
|
|
|
||||
Net income
|
$
|
373
|
|
|
$
|
319
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation of property and equipment, including internal-use software and website development
|
507
|
|
|
449
|
|
||
Amortization of stock-based compensation
|
154
|
|
|
104
|
|
||
Amortization of intangible assets
|
215
|
|
|
204
|
|
||
Impairment of goodwill
|
61
|
|
|
—
|
|
||
Deferred income taxes
|
(281
|
)
|
|
(89
|
)
|
||
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net
|
94
|
|
|
(82
|
)
|
||
Realized gain on foreign currency forwards
|
(34
|
)
|
|
(1
|
)
|
||
Loss on minority equity investments, net
|
100
|
|
|
14
|
|
||
Other
|
27
|
|
|
(24
|
)
|
||
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
||||
Accounts receivable
|
(416
|
)
|
|
(428
|
)
|
||
Prepaid expenses and other assets
|
(12
|
)
|
|
(85
|
)
|
||
Accounts payable, merchant
|
42
|
|
|
259
|
|
||
Accounts payable, other, accrued expenses and other current liabilities
|
171
|
|
|
298
|
|
||
Tax payable/receivable, net
|
141
|
|
|
(29
|
)
|
||
Deferred merchant bookings
|
957
|
|
|
1,018
|
|
||
Deferred revenue
|
21
|
|
|
19
|
|
||
Net cash provided by operating activities
|
2,120
|
|
|
1,946
|
|
||
Investing activities:
|
|
|
|
||||
Capital expenditures, including internal-use software and website development
|
(634
|
)
|
|
(526
|
)
|
||
Purchases of investments
|
(1,714
|
)
|
|
(1,713
|
)
|
||
Sales and maturities of investments
|
1,692
|
|
|
921
|
|
||
Acquisitions, net of cash and restricted cash acquired
|
(40
|
)
|
|
(169
|
)
|
||
Other, net
|
41
|
|
|
8
|
|
||
Net cash used in investing activities
|
(655
|
)
|
|
(1,479
|
)
|
||
Financing activities:
|
|
|
|
||||
Payment of long-term debt
|
(500
|
)
|
|
—
|
|
||
Proceeds from issuance of long-term debt, net of issuance costs
|
—
|
|
|
992
|
|
||
Purchases of treasury stock
|
(620
|
)
|
|
(154
|
)
|
||
Proceeds from issuance of treasury stock
|
31
|
|
|
—
|
|
||
Payment of dividends to stockholders
|
(138
|
)
|
|
(130
|
)
|
||
Proceeds from exercise of equity awards and employee stock purchase plan
|
138
|
|
|
180
|
|
||
Changes in controlled subsidiaries, net
|
(62
|
)
|
|
(4
|
)
|
||
Other, net
|
(3
|
)
|
|
(23
|
)
|
||
Net cash provided by (used in) financing activities
|
(1,154
|
)
|
|
861
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
|
(119
|
)
|
|
142
|
|
||
Net increase in cash, cash equivalents and restricted cash and cash equivalents
|
192
|
|
|
1,470
|
|
||
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period
|
2,917
|
|
|
1,818
|
|
||
Cash, cash equivalents and restricted cash and cash equivalents at end of period
|
$
|
3,109
|
|
|
$
|
3,288
|
|
Supplemental cash flow information
|
|
|
|
||||
Cash paid for interest
|
$
|
196
|
|
|
$
|
162
|
|
Income tax payments, net
|
188
|
|
|
135
|
|
|
Balance at December 31, 2017
|
|
Adjustments
|
|
Balance at January 1, 2018
|
||||||
|
(in millions)
|
||||||||||
Current and long-term assets:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
$
|
1,866
|
|
|
$
|
(40
|
)
|
|
$
|
1,826
|
|
Prepaid expenses and other current assets
|
269
|
|
|
(1
|
)
|
|
268
|
|
|||
Long-term investments and other assets
|
845
|
|
|
(3
|
)
|
|
842
|
|
|||
Current and long-term liabilities:
|
|
|
|
|
|
||||||
Deferred merchant bookings
|
3,219
|
|
|
619
|
|
|
3,838
|
|
|||
Accrued expenses and other current liabilities
|
1,265
|
|
|
(564
|
)
|
|
701
|
|
|||
Deferred income taxes
|
329
|
|
|
(3
|
)
|
|
326
|
|
|||
Stockholders' equity:
|
|
|
|
|
|
||||||
Retained earnings
|
331
|
|
|
(8
|
)
|
|
323
|
|
|
Three months ended
|
|
Nine months ended
|
||||
|
September 30, 2018
|
|
September 30, 2018
|
||||
|
(in millions)
|
||||||
Business Model:
|
|
|
|
||||
Merchant
|
$
|
1,688
|
|
|
$
|
4,554
|
|
Agency
|
876
|
|
|
2,311
|
|
||
Advertising and media
|
302
|
|
|
858
|
|
||
HomeAway
|
410
|
|
|
941
|
|
||
Total revenue
|
$
|
3,276
|
|
|
$
|
8,664
|
|
Service Type:
|
|
|
|
||||
Lodging
|
$
|
2,347
|
|
|
$
|
5,951
|
|
Air
|
209
|
|
|
674
|
|
||
Advertising and media
|
302
|
|
|
858
|
|
||
Other
(1)
|
418
|
|
|
1,181
|
|
||
Total revenue
|
$
|
3,276
|
|
|
$
|
8,664
|
|
(1)
|
Other includes car rental, insurance, destination services, cruise and fee revenue related to our corporate travel business, among other revenue streams, none of which are individually material.
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
(in millions)
|
||||||
Cash and cash equivalents
|
$
|
2,920
|
|
|
$
|
2,847
|
|
Restricted cash and cash equivalents
|
186
|
|
|
69
|
|
||
Restricted cash included within long-term investments and other assets
|
3
|
|
|
1
|
|
||
Total cash, cash equivalents and restricted cash and cash equivalents in the consolidated statement of cash flow
|
$
|
3,109
|
|
|
$
|
2,917
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
||||||
|
(In millions)
|
||||||||||
Assets
|
|
|
|
|
|
||||||
Cash equivalents:
|
|
|
|
|
|
||||||
Money market funds
|
$
|
39
|
|
|
$
|
39
|
|
|
$
|
—
|
|
Time deposits
|
761
|
|
|
—
|
|
|
761
|
|
|||
Derivatives:
|
|
|
|
|
|
||||||
Foreign currency forward contracts
|
23
|
|
|
—
|
|
|
23
|
|
|||
Investments:
|
|
|
|
|
|
||||||
Time deposits
|
458
|
|
|
—
|
|
|
458
|
|
|||
Marketable equity securities
|
161
|
|
|
161
|
|
|
—
|
|
|||
Total assets
|
$
|
1,442
|
|
|
$
|
200
|
|
|
$
|
1,242
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
||||||
|
(In millions)
|
||||||||||
Assets
|
|
|
|
|
|
||||||
Cash equivalents:
|
|
|
|
|
|
||||||
Money market funds
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
—
|
|
Time deposits
|
552
|
|
|
—
|
|
|
552
|
|
|||
Derivatives:
|
|
|
|
|
|
||||||
Foreign currency forward contracts
|
6
|
|
|
—
|
|
|
6
|
|
|||
Investments:
|
|
|
|
|
|
||||||
Time deposits
|
469
|
|
|
—
|
|
|
469
|
|
|||
Marketable equity securities
|
263
|
|
|
263
|
|
|
—
|
|
|||
Total assets
|
$
|
1,306
|
|
|
$
|
279
|
|
|
$
|
1,027
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
(In millions)
|
||||||
7.456% senior notes due 2018
|
$
|
—
|
|
|
$
|
500
|
|
5.95% senior notes due 2020
|
748
|
|
|
748
|
|
||
2.5% (€650 million) senior notes due 2022
|
750
|
|
|
775
|
|
||
4.5% senior notes due 2024
|
496
|
|
|
495
|
|
||
5.0% senior notes due 2026
|
742
|
|
|
741
|
|
||
3.8% senior notes due 2028
|
991
|
|
|
990
|
|
||
Total debt
(1)
|
3,727
|
|
|
4,249
|
|
||
Current maturities of long-term debt
|
—
|
|
|
(500
|
)
|
||
Long-term debt, excluding current maturities
|
$
|
3,727
|
|
|
$
|
3,749
|
|
(1)
|
Net of applicable discounts and debt issuance costs.
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
(In millions)
|
||||||
7.456% senior notes due 2018
|
$
|
—
|
|
|
$
|
516
|
|
5.95% senior notes due 2020
|
784
|
|
|
810
|
|
||
2.5% (€650 million) senior notes due 2022
(1)
|
793
|
|
|
828
|
|
||
4.5% senior notes due 2024
|
504
|
|
|
528
|
|
||
5.0% senior notes due 2026
|
767
|
|
|
807
|
|
||
3.8% senior notes due 2028
|
926
|
|
|
969
|
|
(1)
|
Approximately
683 million
Euro as of
September 30, 2018
and
690 million
Euro as of
December 31, 2017
.
|
Declaration Date
|
Dividend
Per Share
|
|
Record Date
|
|
Total Amount
(in millions)
|
|
Payment Date
|
||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
||
February 7, 2018
|
$
|
0.30
|
|
|
March 8, 2018
|
|
$
|
46
|
|
|
March 28, 2018
|
April 24, 2018
|
0.30
|
|
|
May 24, 2018
|
|
45
|
|
|
June 14, 2018
|
||
July 23, 2018
|
0.32
|
|
|
August 23, 2018
|
|
47
|
|
|
September 13, 2018
|
||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
||
February 7, 2017
|
0.28
|
|
|
March 9, 2017
|
|
42
|
|
|
March 30, 2017
|
||
April 26, 2017
|
0.28
|
|
|
May 25, 2017
|
|
43
|
|
|
June 15, 2017
|
||
July 26, 2017
|
0.30
|
|
|
August 24, 2017
|
|
45
|
|
|
September 14, 2017
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
(In millions)
|
||||||
Foreign currency translation adjustments, net of tax
(1)
|
$
|
(202
|
)
|
|
$
|
(142
|
)
|
Net unrealized loss on available for sale securities, net of tax
(2)
|
—
|
|
|
(7
|
)
|
||
Accumulated other comprehensive loss
|
$
|
(202
|
)
|
|
$
|
(149
|
)
|
(1)
|
Foreign currency translation adjustments, net of tax, include foreign currency transaction losses at
September 30, 2018
of
$35 million
(
$45 million
before tax) and
$45 million
(
$71 million
before tax) at
December 31, 2017
associated with our
2.5%
Notes. The 2.5% Notes are Euro-denominated debt designated as hedges of certain of our Euro-denominated net assets. See
Note 4 – Debt
for more information.
|
(2)
|
The net unrealized loss on available for sale securities before tax at December 31, 2017 was
$9 million
, which was reclassified to retained earnings as of January 1, 2018 upon adoption of the relevant new accounting guidance.
|
|
Three months ended
September 30, |
|
Nine months ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(In millions, except share and per share data)
|
||||||||||||||
Net income attributable to Expedia Group, Inc.
|
$
|
525
|
|
|
$
|
352
|
|
|
$
|
389
|
|
|
$
|
323
|
|
Earnings per share attributable to Expedia Group, Inc. available to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
3.51
|
|
|
$
|
2.32
|
|
|
$
|
2.59
|
|
|
$
|
2.13
|
|
Diluted
|
3.43
|
|
|
2.23
|
|
|
2.54
|
|
|
2.06
|
|
||||
Weighted average number of shares outstanding (000's):
|
|
|
|
|
|
|
|
||||||||
Basic
|
149,482
|
|
|
152,088
|
|
|
150,450
|
|
|
151,406
|
|
||||
Dilutive effect of:
|
|
|
|
|
|
|
|
||||||||
Options to purchase common stock
|
2,866
|
|
|
5,009
|
|
|
2,396
|
|
|
4,564
|
|
||||
Other dilutive securities
|
805
|
|
|
663
|
|
|
558
|
|
|
550
|
|
||||
Diluted
|
153,153
|
|
|
157,760
|
|
|
153,404
|
|
|
156,520
|
|
|
Three months ended September 30, 2018
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
HomeAway
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Third-party revenue
|
$
|
2,527
|
|
|
$
|
200
|
|
|
$
|
410
|
|
|
$
|
139
|
|
|
$
|
—
|
|
|
$
|
3,276
|
|
Intersegment revenue
|
—
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
|
—
|
|
||||||
Revenue
|
$
|
2,527
|
|
|
$
|
295
|
|
|
$
|
410
|
|
|
$
|
139
|
|
|
$
|
(95
|
)
|
|
$
|
3,276
|
|
Adjusted EBITDA
|
$
|
837
|
|
|
$
|
31
|
|
|
$
|
209
|
|
|
$
|
19
|
|
|
$
|
(184
|
)
|
|
$
|
912
|
|
Depreciation
|
(88
|
)
|
|
(4
|
)
|
|
(17
|
)
|
|
(12
|
)
|
|
(50
|
)
|
|
(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
|
(21
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
||||||
Operating income (loss)
|
$
|
728
|
|
|
$
|
27
|
|
|
$
|
191
|
|
|
$
|
7
|
|
|
$
|
(281
|
)
|
|
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 September 30, 2017
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
HomeAway
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Third-party revenue
|
$
|
2,314
|
|
|
$
|
221
|
|
|
$
|
305
|
|
|
$
|
126
|
|
|
$
|
—
|
|
|
$
|
2,966
|
|
Intersegment revenue
|
—
|
|
|
117
|
|
|
—
|
|
|
—
|
|
|
(117
|
)
|
|
—
|
|
||||||
Revenue
|
$
|
2,314
|
|
|
$
|
338
|
|
|
$
|
305
|
|
|
$
|
126
|
|
|
$
|
(117
|
)
|
|
$
|
2,966
|
|
Adjusted EBITDA
|
$
|
734
|
|
|
$
|
(8
|
)
|
|
$
|
126
|
|
|
$
|
20
|
|
|
$
|
(163
|
)
|
|
$
|
709
|
|
Depreciation
|
(79
|
)
|
|
(2
|
)
|
|
(11
|
)
|
|
(11
|
)
|
|
(53
|
)
|
|
(156
|
)
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71
|
)
|
|
(71
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(7
|
)
|
||||||
Legal reserves, occupancy tax and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Restructuring and related reorganization charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||
Realized (gain) loss on revenue hedges
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||
Operating income (loss)
|
$
|
664
|
|
|
$
|
(10
|
)
|
|
$
|
115
|
|
|
$
|
9
|
|
|
$
|
(297
|
)
|
|
481
|
|
|
Other expense, net
|
|
|
|
|
|
|
|
|
|
|
(66
|
)
|
|||||||||||
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
415
|
|
|||||||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
(66
|
)
|
|||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
349
|
|
|||||||||||
Net loss attributable to non-controlling interests
|
|
|
|
|
|
|
|
3
|
|
||||||||||||||
Net income attributable to Expedia Group, Inc.
|
|
|
|
|
|
|
|
$
|
352
|
|
|
Nine months ended September 30, 2018
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
HomeAway
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Third-party revenue
|
$
|
6,706
|
|
|
$
|
571
|
|
|
$
|
941
|
|
|
$
|
446
|
|
|
$
|
—
|
|
|
$
|
8,664
|
|
Intersegment revenue
|
—
|
|
|
323
|
|
|
—
|
|
|
—
|
|
|
(323
|
)
|
|
—
|
|
||||||
Revenue
|
$
|
6,706
|
|
|
$
|
894
|
|
|
$
|
941
|
|
|
$
|
446
|
|
|
$
|
(323
|
)
|
|
$
|
8,664
|
|
Adjusted EBITDA
|
$
|
1,721
|
|
|
$
|
(17
|
)
|
|
$
|
266
|
|
|
$
|
76
|
|
|
$
|
(547
|
)
|
|
$
|
1,499
|
|
Depreciation
|
(256
|
)
|
|
(11
|
)
|
|
(46
|
)
|
|
(35
|
)
|
|
(159
|
)
|
|
(507
|
)
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(215
|
)
|
|
(215
|
)
|
||||||
Impairment of goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(61
|
)
|
|
(61
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154
|
)
|
|
(154
|
)
|
||||||
Legal reserves, occupancy tax and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
74
|
|
||||||
Realized (gain) loss on revenue hedges
|
(17
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
||||||
Operating income (loss)
|
$
|
1,448
|
|
|
$
|
(28
|
)
|
|
$
|
219
|
|
|
$
|
41
|
|
|
$
|
(1,062
|
)
|
|
618
|
|
|
Other expense, net
|
|
|
|
|
|
|
|
|
|
|
(189
|
)
|
|||||||||||
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
429
|
|
|||||||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
(56
|
)
|
|||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
373
|
|
|||||||||||
Net loss attributable to non-controlling interests
|
|
|
|
|
|
|
|
16
|
|
||||||||||||||
Net income attributable to Expedia Group, Inc.
|
|
|
|
|
|
|
|
$
|
389
|
|
|
Nine months ended September 30, 2017
|
||||||||||||||||||||||
|
Core OTA
|
|
trivago
|
|
HomeAway
|
|
Egencia
|
|
Corporate &
Eliminations |
|
Total
|
||||||||||||
|
(In millions)
|
||||||||||||||||||||||
Third-party revenue
|
$
|
6,022
|
|
|
$
|
621
|
|
|
$
|
714
|
|
|
$
|
384
|
|
|
$
|
—
|
|
|
$
|
7,741
|
|
Intersegment revenue
|
—
|
|
|
331
|
|
|
—
|
|
|
—
|
|
|
(331
|
)
|
|
—
|
|
||||||
Revenue
|
$
|
6,022
|
|
|
$
|
952
|
|
|
$
|
714
|
|
|
$
|
384
|
|
|
$
|
(331
|
)
|
|
$
|
7,741
|
|
Adjusted EBITDA
|
$
|
1,523
|
|
|
$
|
14
|
|
|
$
|
171
|
|
|
$
|
76
|
|
|
$
|
(474
|
)
|
|
$
|
1,310
|
|
Depreciation
|
(226
|
)
|
|
(6
|
)
|
|
(27
|
)
|
|
(30
|
)
|
|
(160
|
)
|
|
(449
|
)
|
||||||
Amortization of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(204
|
)
|
|
(204
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
(104
|
)
|
||||||
Legal reserves, occupancy tax and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
(23
|
)
|
||||||
Restructuring and related reorganization charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
(16
|
)
|
||||||
Realized (gain) loss on revenue hedges
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Operating income (loss)
|
$
|
1,294
|
|
|
$
|
8
|
|
|
$
|
144
|
|
|
$
|
46
|
|
|
$
|
(981
|
)
|
|
511
|
|
|
Other expense, net
|
|
|
|
|
|
|
|
|
|
|
(170
|
)
|
|||||||||||
Income before income taxes
|
|
|
|
|
|
|
|
|
|
|
341
|
|
|||||||||||
Provision for income taxes
|
|
|
|
|
|
|
|
|
|
|
(22
|
)
|
|||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
319
|
|
|||||||||||
Net loss attributable to non-controlling interests
|
|
|
|
|
|
|
|
4
|
|
||||||||||||||
Net income attributable to Expedia Group, Inc.
|
|
|
|
|
|
|
|
$
|
323
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
2,503
|
|
|
$
|
869
|
|
|
$
|
(96
|
)
|
|
$
|
3,276
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue
|
—
|
|
|
362
|
|
|
147
|
|
|
(5
|
)
|
|
504
|
|
|||||
Selling and marketing
|
—
|
|
|
1,096
|
|
|
496
|
|
|
(91
|
)
|
|
1,501
|
|
|||||
Technology and content
|
—
|
|
|
287
|
|
|
117
|
|
|
—
|
|
|
404
|
|
|||||
General and administrative
|
—
|
|
|
129
|
|
|
73
|
|
|
—
|
|
|
202
|
|
|||||
Amortization of intangible assets
|
—
|
|
|
44
|
|
|
27
|
|
|
—
|
|
|
71
|
|
|||||
Legal reserves, occupancy tax and other
|
—
|
|
|
(78
|
)
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
|||||
Intercompany (income) expense, net
|
—
|
|
|
239
|
|
|
(239
|
)
|
|
—
|
|
|
—
|
|
|||||
Operating income
|
—
|
|
|
424
|
|
|
248
|
|
|
—
|
|
|
672
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in pre-tax earnings of consolidated subsidiaries
|
560
|
|
|
204
|
|
|
—
|
|
|
(764
|
)
|
|
—
|
|
|||||
Other, net
|
(46
|
)
|
|
(13
|
)
|
|
(1
|
)
|
|
—
|
|
|
(60
|
)
|
|||||
Total other income (expense), net
|
514
|
|
|
191
|
|
|
(1
|
)
|
|
(764
|
)
|
|
(60
|
)
|
|||||
Income before income taxes
|
514
|
|
|
615
|
|
|
247
|
|
|
(764
|
)
|
|
612
|
|
|||||
Provision for income taxes
|
11
|
|
|
(55
|
)
|
|
(37
|
)
|
|
—
|
|
|
(81
|
)
|
|||||
Net income
|
525
|
|
|
560
|
|
|
210
|
|
|
(764
|
)
|
|
531
|
|
|||||
Net (income) loss attributable to non-controlling interests
|
—
|
|
|
1
|
|
|
(7
|
)
|
|
—
|
|
|
(6
|
)
|
|||||
Net income attributable to Expedia Group, Inc.
|
$
|
525
|
|
|
$
|
561
|
|
|
$
|
203
|
|
|
$
|
(764
|
)
|
|
$
|
525
|
|
Comprehensive income attributable to Expedia Group, Inc.
|
$
|
514
|
|
|
$
|
545
|
|
|
$
|
186
|
|
|
$
|
(731
|
)
|
|
$
|
514
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
2,227
|
|
|
$
|
857
|
|
|
$
|
(118
|
)
|
|
$
|
2,966
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue
|
—
|
|
|
348
|
|
|
116
|
|
|
(5
|
)
|
|
459
|
|
|||||
Selling and marketing
|
—
|
|
|
1,012
|
|
|
562
|
|
|
(113
|
)
|
|
1,461
|
|
|||||
Technology and content
|
—
|
|
|
250
|
|
|
100
|
|
|
—
|
|
|
350
|
|
|||||
General and administrative
|
—
|
|
|
72
|
|
|
69
|
|
|
—
|
|
|
141
|
|
|||||
Amortization of intangible assets
|
—
|
|
|
45
|
|
|
26
|
|
|
—
|
|
|
71
|
|
|||||
Legal reserves, occupancy tax and other
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Restructuring and related reorganization charges
|
—
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
4
|
|
|||||
Intercompany (income) expense, net
|
—
|
|
|
205
|
|
|
(205
|
)
|
|
—
|
|
|
—
|
|
|||||
Operating income
|
—
|
|
|
295
|
|
|
186
|
|
|
—
|
|
|
481
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in pre-tax earnings of consolidated subsidiaries
|
380
|
|
|
162
|
|
|
—
|
|
|
(542
|
)
|
|
—
|
|
|||||
Other, net
|
(44
|
)
|
|
(32
|
)
|
|
10
|
|
|
—
|
|
|
(66
|
)
|
|||||
Total other income (expense), net
|
336
|
|
|
130
|
|
|
10
|
|
|
(542
|
)
|
|
(66
|
)
|
|||||
Income before income taxes
|
336
|
|
|
425
|
|
|
196
|
|
|
(542
|
)
|
|
415
|
|
|||||
Provision for income taxes
|
16
|
|
|
(43
|
)
|
|
(39
|
)
|
|
—
|
|
|
(66
|
)
|
|||||
Net income
|
352
|
|
|
382
|
|
|
157
|
|
|
(542
|
)
|
|
349
|
|
|||||
Net loss attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Net income attributable to Expedia Group, Inc.
|
$
|
352
|
|
|
$
|
382
|
|
|
$
|
160
|
|
|
$
|
(542
|
)
|
|
$
|
352
|
|
Comprehensive income attributable to Expedia Group, Inc.
|
$
|
417
|
|
|
$
|
462
|
|
|
$
|
261
|
|
|
$
|
(723
|
)
|
|
$
|
417
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
6,643
|
|
|
$
|
2,348
|
|
|
$
|
(327
|
)
|
|
$
|
8,664
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue
|
—
|
|
|
1,094
|
|
|
410
|
|
|
(15
|
)
|
|
1,489
|
|
|||||
Selling and marketing
|
—
|
|
|
3,256
|
|
|
1,614
|
|
|
(312
|
)
|
|
4,558
|
|
|||||
Technology and content
|
—
|
|
|
847
|
|
|
353
|
|
|
—
|
|
|
1,200
|
|
|||||
General and administrative
|
—
|
|
|
375
|
|
|
222
|
|
|
—
|
|
|
597
|
|
|||||
Amortization of intangible assets
|
—
|
|
|
134
|
|
|
81
|
|
|
—
|
|
|
215
|
|
|||||
Impairment of goodwill
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
61
|
|
|||||
Legal reserves, occupancy tax and other
|
—
|
|
|
(75
|
)
|
|
1
|
|
|
—
|
|
|
(74
|
)
|
|||||
Intercompany (income) expense, net
|
—
|
|
|
654
|
|
|
(654
|
)
|
|
—
|
|
|
—
|
|
|||||
Operating income
|
—
|
|
|
358
|
|
|
260
|
|
|
—
|
|
|
618
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in pre-tax earnings (loss) of consolidated subsidiaries
|
501
|
|
|
223
|
|
|
—
|
|
|
(724
|
)
|
|
—
|
|
|||||
Other, net
|
(146
|
)
|
|
(22
|
)
|
|
(21
|
)
|
|
—
|
|
|
(189
|
)
|
|||||
Total other income (expense), net
|
355
|
|
|
201
|
|
|
(21
|
)
|
|
(724
|
)
|
|
(189
|
)
|
|||||
Income before income taxes
|
355
|
|
|
559
|
|
|
239
|
|
|
(724
|
)
|
|
429
|
|
|||||
Provision for income taxes
|
34
|
|
|
(54
|
)
|
|
(36
|
)
|
|
—
|
|
|
(56
|
)
|
|||||
Net income
|
389
|
|
|
505
|
|
|
203
|
|
|
(724
|
)
|
|
373
|
|
|||||
Net loss attributable to non-controlling interests
|
—
|
|
|
2
|
|
|
14
|
|
|
—
|
|
|
16
|
|
|||||
Net income attributable to Expedia Group, Inc.
|
$
|
389
|
|
|
$
|
507
|
|
|
$
|
217
|
|
|
$
|
(724
|
)
|
|
$
|
389
|
|
Comprehensive income attributable to Expedia Group, Inc.
|
$
|
339
|
|
|
$
|
435
|
|
|
$
|
147
|
|
|
$
|
(582
|
)
|
|
$
|
339
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
5,874
|
|
|
$
|
2,202
|
|
|
$
|
(335
|
)
|
|
$
|
7,741
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue
|
—
|
|
|
1,018
|
|
|
315
|
|
|
(13
|
)
|
|
1,320
|
|
|||||
Selling and marketing
|
—
|
|
|
2,919
|
|
|
1,577
|
|
|
(322
|
)
|
|
4,174
|
|
|||||
Technology and content
|
—
|
|
|
737
|
|
|
278
|
|
|
—
|
|
|
1,015
|
|
|||||
General and administrative
|
—
|
|
|
292
|
|
|
186
|
|
|
—
|
|
|
478
|
|
|||||
Amortization of intangible assets
|
—
|
|
|
137
|
|
|
67
|
|
|
—
|
|
|
204
|
|
|||||
Legal reserves, occupancy tax and other
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|||||
Restructuring and related reorganization charges
|
—
|
|
|
5
|
|
|
11
|
|
|
—
|
|
|
16
|
|
|||||
Intercompany (income) expense, net
|
—
|
|
|
591
|
|
|
(591
|
)
|
|
—
|
|
|
—
|
|
|||||
Operating income
|
—
|
|
|
152
|
|
|
359
|
|
|
—
|
|
|
511
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in pre-tax earnings of consolidated subsidiaries
|
403
|
|
|
331
|
|
|
—
|
|
|
(734
|
)
|
|
—
|
|
|||||
Other, net
|
(128
|
)
|
|
(77
|
)
|
|
35
|
|
|
—
|
|
|
(170
|
)
|
|||||
Total other income (expense), net
|
275
|
|
|
254
|
|
|
35
|
|
|
(734
|
)
|
|
(170
|
)
|
|||||
Income before income taxes
|
275
|
|
|
406
|
|
|
394
|
|
|
(734
|
)
|
|
341
|
|
|||||
Provision for income taxes
|
48
|
|
|
9
|
|
|
(79
|
)
|
|
—
|
|
|
(22
|
)
|
|||||
Net income
|
323
|
|
|
415
|
|
|
315
|
|
|
(734
|
)
|
|
319
|
|
|||||
Net loss attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|||||
Net income attributable to Expedia Group, Inc.
|
$
|
323
|
|
|
$
|
415
|
|
|
$
|
319
|
|
|
$
|
(734
|
)
|
|
$
|
323
|
|
Comprehensive income attributable to Expedia Group, Inc.
|
$
|
480
|
|
|
$
|
624
|
|
|
$
|
551
|
|
|
$
|
(1,175
|
)
|
|
$
|
480
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Total current assets
|
$
|
392
|
|
|
$
|
5,990
|
|
|
$
|
2,411
|
|
|
$
|
(2,621
|
)
|
|
$
|
6,172
|
|
Investment in subsidiaries
|
10,595
|
|
|
3,378
|
|
|
—
|
|
|
(13,973
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
—
|
|
|
1,620
|
|
|
481
|
|
|
—
|
|
|
2,101
|
|
|||||
Goodwill
|
—
|
|
|
6,390
|
|
|
1,767
|
|
|
—
|
|
|
8,157
|
|
|||||
Other assets, net
|
—
|
|
|
1,757
|
|
|
801
|
|
|
153
|
|
|
2,711
|
|
|||||
TOTAL ASSETS
|
$
|
10,987
|
|
|
$
|
19,135
|
|
|
$
|
5,460
|
|
|
$
|
(16,441
|
)
|
|
$
|
19,141
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Total current liabilities
|
$
|
1,333
|
|
|
$
|
8,197
|
|
|
$
|
1,854
|
|
|
$
|
(2,621
|
)
|
|
$
|
8,763
|
|
Long-term debt, excluding current maturities
|
3,727
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,727
|
|
|||||
Other long-term liabilities
|
—
|
|
|
273
|
|
|
279
|
|
|
153
|
|
|
705
|
|
|||||
Redeemable non-controlling interests
|
—
|
|
|
8
|
|
|
11
|
|
|
—
|
|
|
19
|
|
|||||
Stockholders’ equity
|
5,927
|
|
|
10,657
|
|
|
3,316
|
|
|
(13,973
|
)
|
|
5,927
|
|
|||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
10,987
|
|
|
$
|
19,135
|
|
|
$
|
5,460
|
|
|
$
|
(16,441
|
)
|
|
$
|
19,141
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Total current assets
|
$
|
359
|
|
|
$
|
3,493
|
|
|
$
|
2,263
|
|
|
$
|
(575
|
)
|
|
$
|
5,540
|
|
Investment in subsidiaries
|
10,265
|
|
|
4,249
|
|
|
—
|
|
|
(14,514
|
)
|
|
—
|
|
|||||
Intangible assets, net
|
—
|
|
|
1,736
|
|
|
573
|
|
|
—
|
|
|
2,309
|
|
|||||
Goodwill
|
—
|
|
|
6,366
|
|
|
1,863
|
|
|
—
|
|
|
8,229
|
|
|||||
Other assets, net
|
5
|
|
|
1,677
|
|
|
775
|
|
|
(19
|
)
|
|
2,438
|
|
|||||
TOTAL ASSETS
|
$
|
10,629
|
|
|
$
|
17,521
|
|
|
$
|
5,474
|
|
|
$
|
(15,108
|
)
|
|
$
|
18,516
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Total current liabilities
|
$
|
751
|
|
|
$
|
6,798
|
|
|
$
|
905
|
|
|
$
|
(575
|
)
|
|
$
|
7,879
|
|
Long-term debt, excluding current maturities
|
3,749
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,749
|
|
|||||
Other long-term liabilities
|
—
|
|
|
494
|
|
|
262
|
|
|
(19
|
)
|
|
737
|
|
|||||
Redeemable non-controlling interests
|
—
|
|
|
9
|
|
|
13
|
|
|
—
|
|
|
22
|
|
|||||
Stockholders’ equity
|
6,129
|
|
|
10,220
|
|
|
4,294
|
|
|
(14,514
|
)
|
|
6,129
|
|
|||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
10,629
|
|
|
$
|
17,521
|
|
|
$
|
5,474
|
|
|
$
|
(15,108
|
)
|
|
$
|
18,516
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidated
|
||||||||
|
(In millions)
|
||||||||||||||
Operating activities:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
1,509
|
|
|
$
|
611
|
|
|
$
|
2,120
|
|
Investing activities:
|
|
|
|
|
|
|
|
||||||||
Capital expenditures, including internal-use software and website development
|
—
|
|
|
(533
|
)
|
|
(101
|
)
|
|
(634
|
)
|
||||
Purchases of investments
|
—
|
|
|
(1,714
|
)
|
|
—
|
|
|
(1,714
|
)
|
||||
Sales and maturities of investments
|
—
|
|
|
1,618
|
|
|
74
|
|
|
1,692
|
|
||||
Acquisitions, net of cash and restricted cash acquired
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
(40
|
)
|
||||
Transfers (to) from related parties
|
—
|
|
|
(60
|
)
|
|
60
|
|
|
—
|
|
||||
Other, net
|
—
|
|
|
39
|
|
|
2
|
|
|
41
|
|
||||
Net cash provided by (used in) investing activities
|
—
|
|
|
(690
|
)
|
|
35
|
|
|
(655
|
)
|
||||
Financing activities:
|
|
|
|
|
|
|
|
||||||||
Payment of long-term debt
|
(500
|
)
|
|
—
|
|
|
—
|
|
|
(500
|
)
|
||||
Purchases of treasury stock
|
(620
|
)
|
|
—
|
|
|
—
|
|
|
(620
|
)
|
||||
Payment of dividends to stockholders
|
(138
|
)
|
|
—
|
|
|
—
|
|
|
(138
|
)
|
||||
Proceeds from exercise of equity awards and employee stock purchase plan
|
138
|
|
|
—
|
|
|
—
|
|
|
138
|
|
||||
Transfers (to) from related parties
|
1,092
|
|
|
(666
|
)
|
|
(426
|
)
|
|
—
|
|
||||
Other, net
|
28
|
|
|
1
|
|
|
(63
|
)
|
|
(34
|
)
|
||||
Net cash used in financing activities
|
—
|
|
|
(665
|
)
|
|
(489
|
)
|
|
(1,154
|
)
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
|
—
|
|
|
(55
|
)
|
|
(64
|
)
|
|
(119
|
)
|
||||
Net increase in cash, cash equivalents and restricted cash and cash equivalents
|
—
|
|
|
99
|
|
|
93
|
|
|
192
|
|
||||
Cash, cash equivalents and restricted cash and cash equivalents at beginning of the period
|
—
|
|
|
1,321
|
|
|
1,596
|
|
|
2,917
|
|
||||
Cash, cash equivalents and restricted cash and cash equivalents at end of the period
|
$
|
—
|
|
|
$
|
1,420
|
|
|
$
|
1,689
|
|
|
$
|
3,109
|
|
|
Parent
|
|
Guarantor
Subsidiaries
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidated
|
||||||||
|
(In millions)
|
||||||||||||||
Operating activities:
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
1,316
|
|
|
$
|
630
|
|
|
$
|
1,946
|
|
Investing activities:
|
|
|
|
|
|
|
|
||||||||
Capital expenditures, including internal-use software and website development
|
—
|
|
|
(379
|
)
|
|
(147
|
)
|
|
(526
|
)
|
||||
Purchases of investments
|
—
|
|
|
(1,157
|
)
|
|
(556
|
)
|
|
(1,713
|
)
|
||||
Sales and maturities of investments
|
—
|
|
|
758
|
|
|
163
|
|
|
921
|
|
||||
Acquisitions, net of cash and restricted cash acquired
|
—
|
|
|
(168
|
)
|
|
(1
|
)
|
|
(169
|
)
|
||||
Transfers (to) from related parties
|
—
|
|
|
(5
|
)
|
|
5
|
|
|
—
|
|
||||
Other, net
|
—
|
|
|
2
|
|
|
6
|
|
|
8
|
|
||||
Net cash used in investing activities
|
—
|
|
|
(949
|
)
|
|
(530
|
)
|
|
(1,479
|
)
|
||||
Financing activities:
|
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of long-term debt, net of issuance costs
|
992
|
|
|
—
|
|
|
—
|
|
|
992
|
|
||||
Purchases of treasury stock
|
(154
|
)
|
|
—
|
|
|
—
|
|
|
(154
|
)
|
||||
Payment of dividends to stockholders
|
(130
|
)
|
|
—
|
|
|
—
|
|
|
(130
|
)
|
||||
Proceeds from exercise of equity awards and employee stock purchase plan
|
180
|
|
|
—
|
|
|
—
|
|
|
180
|
|
||||
Transfers (to) from related parties
|
(883
|
)
|
|
763
|
|
|
120
|
|
|
—
|
|
||||
Other, net
|
(5
|
)
|
|
(13
|
)
|
|
(9
|
)
|
|
(27
|
)
|
||||
Net cash provided by financing activities
|
—
|
|
|
750
|
|
|
111
|
|
|
861
|
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
|
—
|
|
|
39
|
|
|
103
|
|
|
142
|
|
||||
Net increase in cash, cash equivalents and restricted cash and cash equivalents
|
—
|
|
|
1,156
|
|
|
314
|
|
|
1,470
|
|
||||
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period
|
—
|
|
|
442
|
|
|
1,376
|
|
|
1,818
|
|
||||
Cash, cash equivalents and restricted cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
1,598
|
|
|
$
|
1,690
|
|
|
$
|
3,288
|
|
•
|
It requires us to make an assumption because information was not available at the time or it included matters that were highly uncertain at the time we were making the estimate; and
|
•
|
Changes in the estimate or different estimates that we could have selected may have had a material impact on our financial condition or results of operations.
|
•
|
City and County of San Francisco, California Litigation.
On August 29, 2018, the California Supreme Court denied the City of San Francisco’s petition for review. On September 13, 2018, the City of San Francisco refunded all
$78 million
in “pay-to-play” amounts previously paid by Expedia Group companies (including Orbitz), along with
$19 million
in accumulated interest, thereby effectively ending the case.
|
•
|
Pine Bluff, Arkansas Litigation.
On August 2, 2018, the Arkansas Supreme Court denied the online travel company defendants’ petition for writ of prohibition or certiorari seeking to bar the trial court from continuing to exercise jurisdiction over the case, or holding any further proceedings. On August 24, 2018, the plaintiffs filed a motion to dismiss the defendants’ appeal as premature. On October 4, 2018, the Arkansas Supreme Court deferred ruling on the plaintiffs’ motion to dismiss the defendants’ appeal, combining it with defendants’ appeal on the merits. The motion and appeal remain pending.
|
•
|
Arizona Cities Litigation.
On September 6, 2018, the Arizona Court of Appeals affirmed in part and reversed in part the Arizona Tax Court’s decision. The parties have filed petitions for writ of certiorari seeking leave to the Arizona Supreme Court, which remains pending.
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Gross Bookings
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core OTA
|
$
|
20,217
|
|
|
$
|
18,456
|
|
|
10
|
%
|
|
$
|
62,399
|
|
|
$
|
56,519
|
|
|
10
|
%
|
trivago
(1)
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
||||
HomeAway
(2)
|
2,496
|
|
|
2,013
|
|
|
24
|
%
|
|
9,257
|
|
|
6,833
|
|
|
35
|
%
|
||||
Egencia
|
1,963
|
|
|
1,728
|
|
|
14
|
%
|
|
6,114
|
|
|
5,293
|
|
|
16
|
%
|
||||
Total gross bookings
|
$
|
24,676
|
|
|
$
|
22,197
|
|
|
11
|
%
|
|
$
|
77,770
|
|
|
$
|
68,645
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue Margin
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core OTA
|
12.5
|
%
|
|
12.5
|
%
|
|
|
|
10.7
|
%
|
|
10.7
|
%
|
|
|
||||||
trivago
(1)
|
N/A
|
|
|
N/A
|
|
|
|
|
N/A
|
|
|
N/A
|
|
|
|
||||||
HomeAway
(2)
|
16.4
|
%
|
|
15.1
|
%
|
|
|
|
10.2
|
%
|
|
10.4
|
%
|
|
|
||||||
Egencia
|
7.1
|
%
|
|
7.3
|
%
|
|
|
|
7.3
|
%
|
|
7.2
|
%
|
|
|
||||||
Total revenue margin
|
13.3
|
%
|
|
13.4
|
%
|
|
|
|
11.1
|
%
|
|
11.3
|
%
|
|
|
(1)
|
trivago, which is comprised of a hotel metasearch business that differs from our transaction-based websites, does not have associated gross bookings or revenue margin. However, third-party revenue from trivago is included in revenue used to calculate total revenue margin.
|
(2)
|
HomeAway gross bookings include on-platform and reported transactions from all HomeAway brands, with the exception of BedandBreakfast.com and TopRural (which, if included would collectively add less than an estimated 2% to gross bookings). Gross bookings for Stayz, Bookabach and Travelmob (which collectively represent less than 10% of total on-platform transactions) represent our best estimates, including gross bookings for Stayz and Bookabach that remain off-platform while we transfer those brands to HomeAway platform brands, which started during the second quarter of 2018.
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Revenue by Segment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Core OTA
|
$
|
2,527
|
|
|
$
|
2,314
|
|
|
9
|
%
|
|
$
|
6,706
|
|
|
$
|
6,022
|
|
|
11
|
%
|
trivago (Third-party revenue)
|
200
|
|
|
221
|
|
|
(10
|
)%
|
|
571
|
|
|
621
|
|
|
(8
|
)%
|
||||
HomeAway
|
410
|
|
|
305
|
|
|
35
|
%
|
|
941
|
|
|
714
|
|
|
32
|
%
|
||||
Egencia
|
139
|
|
|
126
|
|
|
10
|
%
|
|
446
|
|
|
384
|
|
|
16
|
%
|
||||
Total revenue
|
$
|
3,276
|
|
|
$
|
2,966
|
|
|
10
|
%
|
|
$
|
8,664
|
|
|
$
|
7,741
|
|
|
12
|
%
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Revenue by Service Type
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lodging
|
$
|
2,347
|
|
|
$
|
2,102
|
|
|
12
|
%
|
|
$
|
5,951
|
|
|
$
|
5,246
|
|
|
13
|
%
|
Air
|
209
|
|
|
189
|
|
|
11
|
%
|
|
674
|
|
|
608
|
|
|
11
|
%
|
||||
Advertising and media
(1)
|
302
|
|
|
299
|
|
|
1
|
%
|
|
858
|
|
|
858
|
|
|
—
|
%
|
||||
Other
|
418
|
|
|
376
|
|
|
11
|
%
|
|
1,181
|
|
|
1,029
|
|
|
15
|
%
|
||||
Total revenue
|
$
|
3,276
|
|
|
$
|
2,966
|
|
|
10
|
%
|
|
$
|
8,664
|
|
|
$
|
7,741
|
|
|
12
|
%
|
(1)
|
Includes third-party revenue from trivago as well as our transaction-based websites.
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Revenue by Business Model
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Merchant
|
$
|
1,688
|
|
|
$
|
1,559
|
|
|
8
|
%
|
|
$
|
4,554
|
|
|
$
|
4,111
|
|
|
11
|
%
|
Agency
|
876
|
|
|
803
|
|
|
9
|
%
|
|
2,311
|
|
|
2,058
|
|
|
12
|
%
|
||||
Advertising and media
|
302
|
|
|
299
|
|
|
1
|
%
|
|
858
|
|
|
858
|
|
|
—
|
%
|
||||
HomeAway
|
410
|
|
|
305
|
|
|
35
|
%
|
|
941
|
|
|
714
|
|
|
32
|
%
|
||||
Total revenue
|
$
|
3,276
|
|
|
$
|
2,966
|
|
|
10
|
%
|
|
$
|
8,664
|
|
|
$
|
7,741
|
|
|
12
|
%
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Customer operations
|
$
|
223
|
|
|
$
|
203
|
|
|
10
|
%
|
|
$
|
661
|
|
|
$
|
579
|
|
|
14
|
%
|
Credit card processing
|
136
|
|
|
129
|
|
|
6
|
%
|
|
394
|
|
|
389
|
|
|
2
|
%
|
||||
Data center, cloud and other
|
145
|
|
|
127
|
|
|
15
|
%
|
|
434
|
|
|
352
|
|
|
23
|
%
|
||||
Total cost of revenue
|
$
|
504
|
|
|
$
|
459
|
|
|
10
|
%
|
|
$
|
1,489
|
|
|
$
|
1,320
|
|
|
13
|
%
|
% of revenue
|
15.4
|
%
|
|
15.5
|
%
|
|
|
|
17.2
|
%
|
|
17.0
|
%
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Direct costs
|
$
|
1,228
|
|
|
$
|
1,224
|
|
|
—
|
%
|
|
$
|
3,731
|
|
|
$
|
3,485
|
|
|
7
|
%
|
Indirect costs
|
273
|
|
|
237
|
|
|
15
|
%
|
|
827
|
|
|
689
|
|
|
20
|
%
|
||||
Total selling and marketing
|
$
|
1,501
|
|
|
$
|
1,461
|
|
|
3
|
%
|
|
$
|
4,558
|
|
|
$
|
4,174
|
|
|
9
|
%
|
% of revenue
|
45.8
|
%
|
|
49.3
|
%
|
|
|
|
52.6
|
%
|
|
53.9
|
%
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Personnel and overhead
|
$
|
194
|
|
|
$
|
165
|
|
|
18
|
%
|
|
$
|
590
|
|
|
$
|
487
|
|
|
21
|
%
|
Depreciation and amortization of technology assets
|
127
|
|
|
113
|
|
|
12
|
%
|
|
370
|
|
|
325
|
|
|
14
|
%
|
||||
Other
|
83
|
|
|
72
|
|
|
16
|
%
|
|
240
|
|
|
203
|
|
|
18
|
%
|
||||
Total technology and content
|
$
|
404
|
|
|
$
|
350
|
|
|
15
|
%
|
|
$
|
1,200
|
|
|
$
|
1,015
|
|
|
18
|
%
|
% of revenue
|
12.3
|
%
|
|
11.8
|
%
|
|
|
|
13.8
|
%
|
|
13.1
|
%
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Personnel and overhead
|
$
|
128
|
|
|
$
|
115
|
|
|
11
|
%
|
|
$
|
383
|
|
|
$
|
326
|
|
|
18
|
%
|
Professional fees and other
|
74
|
|
|
26
|
|
|
182
|
%
|
|
214
|
|
|
152
|
|
|
40
|
%
|
||||
Total general and administrative
|
$
|
202
|
|
|
$
|
141
|
|
|
43
|
%
|
|
$
|
597
|
|
|
$
|
478
|
|
|
25
|
%
|
% of revenue
|
6.1
|
%
|
|
4.8
|
%
|
|
|
|
6.9
|
%
|
|
6.2
|
%
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Amortization of intangible assets
|
$
|
71
|
|
|
$
|
71
|
|
|
1
|
%
|
|
$
|
215
|
|
|
$
|
204
|
|
|
5
|
%
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||
Legal reserves, occupancy tax and other
|
$
|
(78
|
)
|
|
$
|
(1
|
)
|
|
N/A
|
|
$
|
(74
|
)
|
|
$
|
23
|
|
|
N/A
|
% of revenue
|
(2.4
|
)%
|
|
(0.1
|
)%
|
|
|
|
(0.8
|
)%
|
|
0.3
|
%
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Operating income
|
$
|
672
|
|
|
$
|
481
|
|
|
39
|
%
|
|
$
|
618
|
|
|
$
|
511
|
|
|
21
|
%
|
% of revenue
|
20.5
|
%
|
|
16.2
|
%
|
|
|
|
7.1
|
%
|
|
6.6
|
%
|
|
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Core OTA
|
$
|
837
|
|
|
$
|
734
|
|
|
14
|
%
|
|
$
|
1,721
|
|
|
$
|
1,523
|
|
|
13
|
%
|
trivago
|
31
|
|
|
(8
|
)
|
|
N/A
|
|
|
(17
|
)
|
|
14
|
|
|
N/A
|
|
||||
HomeAway
|
209
|
|
|
126
|
|
|
66
|
%
|
|
266
|
|
|
171
|
|
|
55
|
%
|
||||
Egencia
|
19
|
|
|
20
|
|
|
(8
|
)%
|
|
76
|
|
|
76
|
|
|
—
|
%
|
||||
Unallocated overhead costs (Corporate)
|
(184
|
)
|
|
(163
|
)
|
|
13
|
%
|
|
(547
|
)
|
|
(474
|
)
|
|
15
|
%
|
||||
Total Adjusted EBITDA
(1)
|
$
|
912
|
|
|
$
|
709
|
|
|
29
|
%
|
|
$
|
1,499
|
|
|
$
|
1,310
|
|
|
14
|
%
|
(1)
|
Adjusted EBITDA is a non-GAAP measure. See "Definition and Reconciliation of Adjusted EBITDA" below for more information.
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Interest income
|
$
|
34
|
|
|
$
|
9
|
|
|
269
|
%
|
|
$
|
61
|
|
|
$
|
25
|
|
|
147
|
%
|
Interest expense
|
(47
|
)
|
|
(44
|
)
|
|
6
|
%
|
|
(149
|
)
|
|
(130
|
)
|
|
14
|
%
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
($ in millions)
|
||||||||||||||
Foreign exchange rate gains (losses), net
|
$
|
(6
|
)
|
|
$
|
(21
|
)
|
|
$
|
1
|
|
|
$
|
(47
|
)
|
Losses on minority equity investments, net
|
(39
|
)
|
|
(9
|
)
|
|
(100
|
)
|
|
(14
|
)
|
||||
Other
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(4
|
)
|
||||
Total other, net
|
$
|
(47
|
)
|
|
$
|
(31
|
)
|
|
$
|
(101
|
)
|
|
$
|
(65
|
)
|
|
Three months ended September 30,
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||||||||
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Provision for income taxes
|
$
|
81
|
|
|
$
|
66
|
|
|
23
|
%
|
|
$
|
56
|
|
|
$
|
22
|
|
|
151
|
%
|
Effective tax rate
|
13.3
|
%
|
|
15.9
|
%
|
|
|
|
13.1
|
%
|
|
6.6
|
%
|
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net income attributable to Expedia Group, Inc.
|
|
$
|
525
|
|
|
$
|
352
|
|
|
$
|
389
|
|
|
$
|
323
|
|
Net (income) loss attributable to non-controlling interests
|
|
6
|
|
|
(3
|
)
|
|
(16
|
)
|
|
(4
|
)
|
||||
Provision for income taxes
|
|
81
|
|
|
66
|
|
|
56
|
|
|
22
|
|
||||
Total other expense, net
|
|
60
|
|
|
66
|
|
|
189
|
|
|
170
|
|
||||
Operating income
|
|
672
|
|
|
481
|
|
|
618
|
|
|
511
|
|
||||
Gain (loss) on revenue hedges related to revenue recognized
|
|
22
|
|
|
(9
|
)
|
|
18
|
|
|
3
|
|
||||
Restructuring and related reorganization charges
|
|
—
|
|
|
4
|
|
|
—
|
|
|
16
|
|
||||
Legal reserves, occupancy tax and other
|
|
(78
|
)
|
|
(1
|
)
|
|
(74
|
)
|
|
23
|
|
||||
Stock-based compensation
|
|
54
|
|
|
7
|
|
|
154
|
|
|
104
|
|
||||
Amortization of intangible assets
|
|
71
|
|
|
71
|
|
|
215
|
|
|
204
|
|
||||
Impairment of goodwill
|
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
||||
Depreciation
|
|
171
|
|
|
156
|
|
|
507
|
|
|
449
|
|
||||
Adjusted EBITDA
|
|
$
|
912
|
|
|
$
|
709
|
|
|
$
|
1,499
|
|
|
$
|
1,310
|
|
|
|
Nine months ended September 30,
|
|
|
||||||||
|
|
2018
|
|
2017
|
|
$ Change
|
||||||
|
|
(In millions)
|
||||||||||
Cash provided by (used in):
|
|
|
|
|
|
|
||||||
Operating activities
|
|
$
|
2,120
|
|
|
$
|
1,946
|
|
|
$
|
174
|
|
Investing activities
|
|
(655
|
)
|
|
(1,479
|
)
|
|
824
|
|
|||
Financing activities
|
|
(1,154
|
)
|
|
861
|
|
|
(2,015
|
)
|
|||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents
|
|
(119
|
)
|
|
142
|
|
|
(261
|
)
|
Declaration Date
|
|
Dividend
Per Share
|
|
Record Date
|
|
Total Amount
(in millions)
|
|
Payment Date
|
||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
||||
February 7, 2018
|
|
$
|
0.30
|
|
|
March 8, 2018
|
|
$
|
46
|
|
|
March 28, 2018
|
April 24, 2018
|
|
0.30
|
|
|
May 24, 2018
|
|
45
|
|
|
June 14, 2018
|
||
July 23, 2018
|
|
0.32
|
|
|
August 23, 2018
|
|
47
|
|
|
September 13, 2018
|
||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
||||
February 7, 2017
|
|
0.28
|
|
|
March 9, 2017
|
|
42
|
|
|
March 30, 2017
|
||
April 26, 2017
|
|
0.28
|
|
|
May 25, 2017
|
|
43
|
|
|
June 15, 2017
|
||
July 26, 2017
|
|
0.30
|
|
|
August 24, 2017
|
|
45
|
|
|
September 14, 2017
|
Period
|
|
Total Number of
Shares Purchased
|
|
Average Price
Paid Per Share
|
|
Total Number of
Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs
|
|
Maximum
Number of
Shares that
May Yet Be
Purchased
Under Plans or
Programs
|
|||||
|
|
(In thousands, expect per share data)
|
|||||||||||
July 1-31, 2018
|
|
333
|
|
|
$
|
124.95
|
|
|
333
|
|
|
15,909
|
|
August 1-31, 2018
|
|
394
|
|
|
131.39
|
|
|
394
|
|
|
15,515
|
|
|
September 1-30, 2018
|
|
767
|
|
|
128.93
|
|
|
767
|
|
|
14,748
|
|
|
Total
|
|
1,494
|
|
|
|
|
1,494
|
|
|
|
Exhibit
No.
|
Exhibit Description
|
Filed
Herewith
|
|
Incorporated by Reference
|
|
|
|
Form
|
SEC File No.
|
Exhibit
|
Filing Date
|
||
10.1
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
31.3
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
32.2
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
32.3
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
101
|
The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, formatted in XBRL: (i) Consolidated Statements of Operations, (ii) Consolidated Statements of Comprehensive Income (Loss), (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements.
|
X
|
|
|
|
|
October 25, 2018
|
Expedia Group, Inc.
|
|
|
|
|
|
By:
|
/s/ Alan Pickerill
|
|
|
Alan Pickerill
|
|
|
Chief Financial Officer
|
EXPEDIA GROUP, INC.,
|
|
by:
|
|
|
/s/ Robert Dzielak
|
|
Name: Robert Dzielak
Title: Chief Legal Officer and Secretary
|
EXPEDIA, INC.,
|
|
by:
|
|
|
/s/ Robert Dzielak
|
|
Name: Robert Dzielak
Title: Chief Legal Officer and Secretary
|
TRAVELSCAPE, LLC,
|
|
by:
|
|
|
/s/ Robert Dzielak
|
|
Name: Robert Dzielak
Title: Chief Legal Officer and Secretary
|
HOTWIRE, INC.,
|
|
by:
|
|
|
/s/ Robert Dzielak
|
|
Name: Robert Dzielak
Title: Chief Legal Officer and Secretary
|
JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent and London Agent,
|
|
by:
|
|
|
/s/ Peter B. Thauer
|
|
Name: Peter B. Thauer
Title: Managing Director
|
BANK OF AMERICA, N.A., as a Lender and an Issuing Bank
|
|
by:
|
|
|
/s/ Jonathan Tristan
|
|
Name: Jonathan Tristan
Title: Vice President
|
Name of Institution: BNP Paribas
|
|
by:
|
|
|
/s/ Raquel Latuff
|
|
Name: Raquel Latuff
Title: Managing Director
|
Name of Institution: BNP Paribas
|
|
by:
|
|
|
/s/ Melissa Dyld
|
|
Name: Melissa Dyld
Title: Director
|
Mizuho Bank, Ltd.
|
|
by:
|
|
|
/s/ Raymond Ventura
|
|
Name: Raymond Ventura
Title: Managing Director
|
Name of Institution: HSBC Bank USA, National Association
|
|
by:
|
|
|
/s/ Mire K. Levy
|
|
Name: Mire K. Levy
Title: Vice President
|
MUFG Bank, Ltd.
|
|
by:
|
|
|
/s/ Ola Anderssen
|
|
Name: Ola Anderssen
Title: Director
|
Royal Bank of Canada
|
|
by:
|
|
|
/s/ Andra Bosneaga
|
|
Name: Andra Bosneaga
Title: Vice-President
|
Name of Institution: SUMITOMO MITSUI BANKING CORPORATION
|
|
by:
|
|
|
/s/ James D. Weinstein
|
|
Name: James D. Weinstein
Title: Managing Director
|
Name of Institution: U.S. Bank National Association
|
|
by:
|
|
|
/s/ Lukas Coleman
|
|
Name: Lukas Coleman
Title: Vice President
|
Name of Institution: THE BANK OF NOVA SCOTIA
|
|
by:
|
|
|
/s/ Michael Grad
|
|
Name: Michael Grad
Title: Director
|
Name of Institution: GOLDMAN SACHS BANK USA
|
|
by:
|
|
|
/s/ Jamie Minieri
|
|
Name: Jamie Minieri
Title: Authorized Signatory
|
Name of Institution: Standard Chartered Bank
|
|
by:
|
|
|
/s/ Daniel Mattern
|
|
Name: Daniel Mattern
Title: Associate Director
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Expedia Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a.
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
October 25, 2018
|
|
/s/ BARRY DILLER
|
|
|
|
Barry Diller
|
|
|
|
Chairman and Senior Executive
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Expedia Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a.
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
October 25, 2018
|
|
/s/ MARK D. OKERSTROM
|
|
|
|
Mark D. Okerstrom
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Expedia Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a.
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
October 25, 2018
|
|
/s/ ALAN PICKERILL
|
|
|
|
Alan Pickerill
|
|
|
|
Chief Financial Officer
|
1.
|
the Quarterly Report on Form 10-Q of the Company for the quarter ended
September 30, 2018
(the “Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
October 25, 2018
|
|
/s/ BARRY DILLER
|
|
|
|
Barry Diller
|
|
|
|
Chairman and Senior Executive
|
1.
|
the Quarterly Report on Form 10-Q of the Company for the quarter ended
September 30, 2018
(the “Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
October 25, 2018
|
|
/s/ MARK D. OKERSTROM
|
|
|
|
Mark D. Okerstrom
|
|
|
|
Chief Executive Officer
|
1.
|
the Quarterly Report on Form 10-Q of the Company for the quarter ended
September 30, 2018
(the “Report”) which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
October 25, 2018
|
|
/s/ ALAN PICKERILL
|
|
|
|
Alan Pickerill
|
|
|
|
Chief Financial Officer
|