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Segment Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Information
NOTE 20 — Segment Information
We have four reportable segments: Core OTA, trivago, Vrbo (previously referred to as our "HomeAway" segment) and Egencia. Our Core OTA 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 brands including: Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com websites throughout the world, Expedia Partner Solutions, Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com, CarRentals.com, Classic Vacations and SilverRail Technologies, Inc. Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch websites. Our Vrbo segment operates an online marketplace for the alternative accommodations industry. Our Egencia segment provides managed travel services to corporate customers worldwide.
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 Core OTA and Egencia segments includes allocations of certain expenses, primarily cost of revenue and facilities. Our Core OTA segment includes the total costs of our global supply organizations and Core OTA and Vrbo include the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change.
Our segment disclosure includes intersegment revenues, which primarily consist of advertising and media services provided by our trivago segment to our Core OTA segment. These intersegment transactions are recorded by each segment at amounts that approximate fair value as if the transactions were between third parties, and therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within Corporate and Eliminations in the table below. In addition, when Vrbo properties are booked through our Core OTA websites and vice versa, the segments split the third-party revenue for management and
segment reporting purposes with the majority of the third-party revenue residing with the website marketing the property or room.
Corporate and Eliminations also includes unallocated corporate functions and expenses as well as Bodybuilding.com subsequent to our acquisition on July 26, 2019. In addition, we record amortization of intangible assets and any related impairment, as well as stock-based compensation expense, restructuring and related reorganization charges, legal reserves, occupancy tax and other, and other items excluded from segment operating performance in Corporate and Eliminations. Such amounts are detailed in our segment reconciliation below.
The following tables present our segment information for 2019, 2018 and 2017. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers. 
 
Year ended December 31, 2019
 
Core OTA
 
trivago
 
Vrbo
 
Egencia
 
Corporate &
Eliminations
 
Total
 
(In millions)
Third-party revenue
$
9,427

 
$
622

 
$
1,340

 
$
620

 
$
58

 
$
12,067

Intersegment revenue
—

 
316

 
—

 
—

 
(316
)
 
—

Revenue
$
9,427

 
$
938

 
$
1,340

 
$
620

 
$
(258
)
 
$
12,067

Adjusted EBITDA
$
2,447

 
$
85

 
$
281

 
$
116

 
$
(795
)
 
$
2,134

Depreciation
(379
)
 
(11
)
 
(100
)
 
(50
)
 
(172
)
 
(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
(21
)
 
—

 
(1
)
 
—

 
—

 
(22
)
Operating income (loss)
$
2,047

 
$
74

 
$
180

 
$
66

 
$
(1,464
)
 
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



 
Year ended December 31, 2018
 
Core OTA
 
trivago
 
Vrbo
 
Egencia
 
Corporate & Eliminations
 
Total
 
(In millions)
Third-party revenue
$
8,760

 
$
691

 
$
1,171

 
$
601

 
$
—

 
$
11,223

Intersegment revenue
—

 
393

 
—

 
—

 
(393
)
 
—

Revenue
$
8,760

 
$
1,084

 
$
1,171

 
$
601

 
$
(393
)
 
$
11,223

Adjusted EBITDA
$
2,305

 
$
16

 
$
288

 
$
107

 
$
(746
)
 
$
1,970

Depreciation
(344
)
 
(15
)
 
(66
)
 
(47
)
 
(204
)
 
(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
(24
)
 
—

 
(1
)
 
—

 
—

 
(25
)
Operating income (loss)
$
1,937

 
$
1

 
$
221

 
$
60

 
$
(1,505
)
 
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


 
Year ended December 31, 2017
 
Core OTA
 
trivago
 
Vrbo
 
Egencia
 
Corporate & Eliminations
 
Total
 
(In millions)
Third-party revenue
$
7,881

 
$
752

 
$
906

 
$
521

 
$
—

 
$
10,060

Intersegment revenue
—

 
414

 
—

 
—

 
(414
)
 
—

Revenue
$
7,881

 
$
1,166

 
$
906

 
$
521

 
$
(414
)
 
$
10,060

Adjusted EBITDA
$
2,057

 
$
5

 
$
202

 
$
95

 
$
(646
)
 
$
1,713

Depreciation
(310
)
 
(9
)
 
(40
)
 
(41
)
 
(214
)
 
(614
)
Amortization of intangible assets
—

 
—

 
—

 
—

 
(275
)
 
(275
)
Stock-based compensation
—

 
—

 
—

 
—

 
(149
)
 
(149
)
Legal reserves, occupancy tax and other
—

 
—

 
—

 
—

 
(25
)
 
(25
)
Restructuring and related reorganization charges
—

 
—

 
—

 
—

 
(17
)
 
(17
)
Realized (gain) loss on revenue hedges
(8
)
 
—

 
—

 
—

 
—

 
(8
)
Operating income (loss)
$
1,739

 
$
(4
)
 
$
162

 
$
54

 
$
(1,326
)
 
625

Other income, net
 
 
 
 
 
 
 
 
 
 
(208
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
417

Provision for income taxes
 
 
 
 
 
 
 
 
 
 
(45
)
Net income
 
 
 
 
 
 
 
 
 
 
372

Net loss attributable to non-controlling interests
 
 
 
 
 
 
 
 
 
 
6

Net income attributable to Expedia Group, Inc.
 
 
 
 
 
 
 
 
 
 
$
378




Revenue by Business Model and Service Type
The following table presents revenue by business model and service type for the years ended December 31, 2019, 2018 and 2017:
 
Year Ended December 31,
 
2019
 
2018
 
2017 (1)
 
(In millions)
Business Model
 
 
 
 
 
Merchant
$
6,459

 
$
5,950

 
$
5,394

Agency
3,165

 
3,010

 
2,687

Advertising and media
1,103

 
1,092

 
1,073

Vrbo
1,340

 
1,171

 
906

Total revenue
$
12,067

 
$
11,223

 
$
10,060

Service Type
 
 
 
 
 
Lodging
$
8,472

 
$
7,712

 
$
6,851

Air
869

 
881

 
784

Advertising and media
1,103

 
1,092

 
1,073

Other(2)
1,623

 
1,538

 
1,352

Total revenue
$
12,067

 
$
11,223

 
$
10,060

___________________________________

(1)
Results for 2019 and 2018 are presented under the new revenue recognition accounting guidance, which we adopted on January 1, 2018 using the modified retrospective method. Therefore, 2017 results have not been adjusted and continued to be reported under the accounting standards in effect for that period.
(2)
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. Other also includes product revenue of $58 million during the year ended December 31, 2019 related to our acquisition of Bodybuilding.com.
Our Core OTA segment generates revenue from the merchant, agency and advertising and media business models as well as all service types. trivago segment revenue is primarily generated through advertising and media. All Vrbo revenue is included within the lodging service type. Our Egencia segment generates revenue from similar business models and service types to Core OTA applied to the corporate traveler with the majority being agency revenue.

Geographic Information
The following table presents revenue by geographic area, the United States and all other countries, based on the geographic location of our websites or points of sale with the exception of trivago, which has all been allocated to Germany, the location of its corporate headquarters, for the years ended December 31, 2019, 2018 and 2017. No sales to an individual country other than the United States accounted for more than 10% of revenue for the presented years.
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(In millions)
Revenue
 
 
 
 
 
United States
$
6,869

 
$
6,202

 
$
5,542

All other countries
5,198

 
5,021

 
4,518

 
$
12,067

 
$
11,223

 
$
10,060


The following table presents property and equipment, net for the United States and all other countries, as of December 31, 2019 and 2018:
 
As of December 31,
 
2019
 
2018
 
(In millions)
Property and equipment, net
 
 
 
United States
$
2,038

 
$
1,571

All other countries
160

 
306

 
$
2,198

 
$
1,877