Guarantor and Non-Guarantor Supplemental Financial Information

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Guarantor and Non-Guarantor Supplemental Financial Information

NOTE 23 — Guarantor and Non-Guarantor Supplemental Financial Information

Condensed consolidating financial information of Expedia Group, Inc. (the “Parent”), our subsidiaries that are guarantors of our debt facility and instruments (the “Guarantor Subsidiaries”), and our subsidiaries that are not guarantors of our debt facility and instruments (the “Non-Guarantor Subsidiaries”) is shown below. The debt facility and instruments are guaranteed by certain of our wholly-owned domestic subsidiaries and rank equally in right of payment with all of our existing and future unsecured and unsubordinated obligations. The guarantees are full, unconditional, joint and several with the exception of certain customary automatic subsidiary release provisions. In this financial information, the Parent and Guarantor Subsidiaries account for investments in their wholly-owned subsidiaries using the equity method.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In millions)
Revenue	$	—		$	9,463		$	2,929		$	(325	)	$	12,067
Costs and expenses:
Cost of revenue	—			1,569			616			(22		)	2,163
Selling and marketing	—			4,666			1,772			(303		)	6,135
Technology and content	—			1,247			516			—			1,763
General and administrative	—			557			290			—			847
Amortization of intangible assets	—			117			81			—			198
Legal reserves, occupancy tax and other	—			16			18			—			34
Restructuring and related reorganization charges	—			13			11			—			24
Intercompany (income) expense, net	2			856			(858		)	—			—
Operating income	(2		)	422			483			—			903
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries	702			372			—			(1,074		)	—
Other, net	(176		)	39			9			—			(128		)
Total other income (expense), net	526			411			9			(1,074		)	(128		)
Income before income taxes	524			833			492			(1,074		)	775
Provision for income taxes	41			(129		)	(115		)	—			(203		)
Net income	565			704			377			(1,074		)	572
Net (income) loss attributable to non-controlling interests	—			3			(10		)	—			(7		)
Net income attributable to Expedia Group, Inc.	$	565		$	707		$	367		$	(1,074	)	$	565
Comprehensive income attributable to Expedia Group, Inc.	$	568		$	696		$	359		$	(1,055	)	$	568

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In millions)
Revenue	$	—		$	8,650		$	2,973		$	(400	)	$	11,223
Costs and expenses:
Cost of revenue	—			1,436			550			(21		)	1,965
Selling and marketing	—			4,153			1,993			(379		)	5,767
Technology and content	—			1,143			474			—			1,617
General and administrative	—			515			293			—			808
Amortization of intangible assets	—			174			109			—			283
Impairment of goodwill	—			—			86			—			86
Impairment of intangibles	—			42			—			—			42
Legal reserves, occupancy tax and other	—			(60		)	1			—			(59		)
Intercompany (income) expense, net	—			808			(808		)	—			—
Operating income	—			439			275			—			714
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries	549			209			—			(758		)	—
Other, net	(187		)	(81		)	39			—			(229		)
Total other income, net	362			128			39			(758		)	(229		)
Income before income taxes	362			567			314			(758		)	485
Provision for income taxes	44			(12		)	(119		)	—			(87		)
Net income	406			555			195			(758		)	398
Net loss attributable to non-controlling interests	—			2			6			—			8
Net income attributable to Expedia Group, Inc.	$	406		$	557		$	201		$	(758	)	$	406
Comprehensive income attributable to Expedia Group, Inc.	$	338		$	459		$	103		$	(562	)	$	338

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended December 31, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
	(In millions)
Revenue	$	—		$	7,662		$	2,817		$	(419	)	$	10,060
Costs and expenses:
Cost of revenue	—			1,343			431			(17		)	1,757
Selling and marketing	—			3,715			1,985			(402		)	5,298
Technology and content	—			991			396			—			1,387
General and administrative	—			409			267			—			676
Amortization of intangible assets	—			182			93			—			275
Legal reserves, occupancy tax and other	—			25			—			—			25
Restructuring and related reorganization charges	—			5			12			—			17
Intercompany (income) expense, net	—			695			(695		)	—			—
Operating income	—			297			328			—			625
Other income (expense):
Equity in pre-tax earnings of consolidated subsidiaries	493			336			—			(829		)	—
Other, net	(179		)	(60		)	31			—			(208		)
Total other income (expense), net	314			276			31			(829		)	(208		)
Income before income taxes	314			573			359			(829		)	417
Provision for income taxes	64			(67		)	(42		)	—			(45		)
Net income	378			506			317			(829		)	372
Net loss attributable to non-controlling interests	—			1			5			—			6
Net income attributable to Expedia Group, Inc.	$	378		$	507		$	322		$	(829	)	$	378
Comprehensive income attributable to Expedia Group, Inc.	$	509		$	698		$	564		$	(1,262	)	$	509

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2019

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In millions)
ASSETS
Total current assets	$	443	$	7,416	$	2,588	$	(2,712	)	$	7,735
Investment in subsidiaries	11,345		3,297		—		(14,642		)	—
Intangible assets, net	—		1,414		390		—			1,804
Goodwill	—		6,366		1,761		—			8,127
Other assets, net	—		2,540		1,248		(38		)	3,750
TOTAL ASSETS	$	11,788	$	21,033	$	5,987	$	(17,392	)	$	21,416
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	2,063	$	9,097	$	2,266	$	(2,712	)	$	10,714
Long-term debt, excluding current maturities	4,189		—		—		—			4,189
Other long-term liabilities	—		506		494		(38		)	962
Redeemable non-controlling interests	—		15		—		—			15
Stockholders’ equity	5,536		11,415		3,227		(14,642		)	5,536
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	11,788	$	21,033	$	5,987	$	(17,392	)	$	21,416

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2018

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(In millions)
ASSETS
Total current assets	$	402	$	5,261	$	2,137	$	(2,603	)	$	5,197
Investment in subsidiaries	10,615		3,425		—		(14,040		)	—
Intangible assets, net	—		1,520		472		—			1,992
Goodwill	—		6,366		1,754		—			8,120
Other assets, net	—		1,840		913		(29		)	2,724
TOTAL ASSETS	$	11,017	$	18,412	$	5,276	$	(16,672	)	$	18,033
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total current liabilities	$	1,649	$	7,396	$	1,618	$	(2,603	)	$	8,060
Long-term debt, excluding current maturities	3,717		—		—		—			3,717
Other long-term liabilities	—		320		284		(29		)	575
Redeemable non-controlling interests	—		17		13		—			30
Stockholders’ equity	5,651		10,679		3,361		(14,040		)	5,651
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	11,017	$	18,412	$	5,276	$	(16,672	)	$	18,033

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	—		$	2,113		$	654		$	2,767
Investing activities:
Capital expenditures, including internal-use software and website development	—			(1,058		)	(102		)	(1,160		)
Purchases of investments	—			(1,280		)	(66		)	(1,346		)
Sales and maturities of investments	—			816			36			852
Acquisitions, net of cash and restricted cash acquired	—			80			—			80
Transfers (to) from related parties	(351		)	296			55			—
Other, net	—			21			—			21
Net cash used in investing activities	(351		)	(1,125		)	(77		)	(1,553		)
Financing activities:
Proceeds from issuance of long-term debt, net of debt issuance costs	1,231			—			—			1,231
Payment of Liberty Expedia Exchangeable Debentures	—			(400		)	—			(400		)
Purchases of treasury stock	(743		)	—			—			(743		)
Payment of dividends to stockholders	(195		)	—			—			(195		)
Proceeds from exercise of equity awards and employee stock purchase plan	301			—			—			301
Changes in controlled subsidiaries, net	—			(17		)	(11		)	(28		)
Transfers (to) from related parties	(242		)	443			(201		)	—
Other, net	(1		)	11			(1		)	9
Net cash provided by (used in) financing activities	351			37			(213		)	175
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents	—			8			(5		)	3
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	—			1,033			359			1,392
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year	—			1,190			1,515			2,705
Cash, cash equivalents, and restricted cash and cash equivalents at end of year	$	—		$	2,223		$	1,874		$	4,097

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	—		$	1,248		$	727		$	1,975
Investing activities:
Capital expenditures, including internal-use software and website development	—			(752		)	(126		)	(878		)
Purchases of investments	—			(1,720		)	(83		)	(1,803		)
Sales and maturities of investments	—			2,063			74			2,137
Acquisitions, net of cash and restricted cash acquired	—			(53		)	—			(53		)
Transfers (to) from related parties	—			(86		)	86			—
Other, net	—			35			3			38
Net cash used in investing activities	—			(513		)	(46		)	(559		)
Financing activities:
Payment of long-term debt	(500		)	—			—			(500		)
Purchases of treasury stock	(923		)	—			—			(923		)
Proceeds from issuance of treasury stock	31			—			—			31
Payment of dividends to stockholders	(186		)	—			—			(186		)
Proceeds from exercise of equity awards and employee stock purchase plan	166			—			—			166
Changes in controlled subsidiaries, net	—			—			(62		)	(62		)
Transfers (to) from related parties	1,415			(785		)	(630		)	—
Other, net	(3		)	(10		)	(2		)	(15		)
Net cash used in financing activities	—			(795		)	(694		)	(1,489		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	—			(71		)	(68		)	(139		)
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents	—			(131		)	(81		)	(212		)
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year	—			1,321			1,596			2,917
Cash, cash equivalents, and restricted cash and cash equivalents at end of year	$	—		$	1,190		$	1,515		$	2,705

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended December 31, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
	(In millions)
Operating activities:
Net cash provided by operating activities	$	—		$	1,312		$	533		$	1,845
Investing activities:
Capital expenditures, including internal-use software and website development	—			(546		)	(164		)	(710		)
Purchases of investments	—			(1,222		)	(589		)	(1,811		)
Sales and maturities of investments	—			875			221			1,096
Acquisitions, net of cash acquired	—			(168		)	(1		)	(169		)
Transfers (to) from related parties	—			(5		)	5			—
Other, net	—			7			6			13
Net cash used in investing activities	—			(1,059		)	(522		)	(1,581		)
Financing activities:
Proceeds from issuance of long-term debt, net of debt issuance costs	990			—			—			990
Purchases of treasury stock	(312		)	—			—			(312		)
Payment of dividends to stockholders	(176		)	—			—			(176		)
Proceeds from exercise of equity awards and employee stock purchase plan	228			—			1			229
Changes in controlled subsidiaries, net	—			—			(18		)	(18		)
Transfers (to) from related parties	(725		)	605			120			—
Other, net	(5		)	(15		)	(5		)	(25		)
Net cash provided by financing activities	—			590			98			688
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	—			36			111			147
Net increase in cash, cash equivalents, and restricted cash and cash equivalents	—			879			220			1,099
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of year	—			442			1,376			1,818
Cash, cash equivalents, and restricted cash and cash equivalents at end of year	$	—		$	1,321		$	1,596		$	2,917