Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

Note 11 – Segment Information

We have the following reportable segments: Retail, B2B, and trivago. Our Retail segment, which consists of the aggregation of operating segments, provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia.com and Hotels.com in the United States and localized Expedia and Hotels.com websites throughout the world, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com, CarRentals.com and Expedia Cruises. Our B2B segment is comprised of our Expedia Business Services organization including Expedia Partner Solutions, which offers private label and co-branded products to make travel services available to travelers through third-party company branded websites, and Egencia, a full-service travel management company that provides travel services to businesses and their corporate customers. Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch websites.

We determined our operating segments based on how our chief operating decision makers manage our business, make operating decisions and evaluate operating performance. Our primary operating metric is Adjusted EBITDA. Adjusted EBITDA for our Retail and B2B segments includes allocations of certain expenses, primarily related to our global travel supply organization and the majority of costs from our product and technology platform, as well as facility costs and the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such

as accounting, human resources, certain 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 Retail 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.

Corporate and Eliminations also includes unallocated corporate functions and expenses as well as Bodybuilding.com through its sale in May 2020. 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 the three months ended March 31, 2021 and 2020. 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.

	Three months ended March 31, 2021
	Retail		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	1,025	$	184	$	37	$	—	$	1,246
Intersegment revenue	—		—		9		(9)		—
Revenue	$	1,025	$	184	$	46	$	(9)	$	1,246
Adjusted EBITDA	$	94	$	(60)	$	(4)	$	(88)	$	(58)
Depreciation	(133)		(28)		(3)		(18)		(182)
Amortization of intangible assets	—		—		—		(27)		(27)
Stock-based compensation	—		—		—		(83)		(83)
Legal reserves, occupancy tax and other	—		—		—		1		1
Restructuring and related reorganization charges	—		—		—		(29)		(29)
Realized (gain) loss on revenue hedges	9		—		—		—		9
Operating loss	$	(30)	$	(88)	$	(7)	$	(244)	(369)
Other expense, net									(381)
Loss before income taxes									(750)
Provision for income taxes									169
Net loss									(581)
Net loss attributable to non-controlling interests									3
Net loss attributable to Expedia Group, Inc.									(578)
Preferred stock dividend									(28)
Net loss attributable to Expedia Group, Inc. common stockholders									$	(606)

	Three months ended March 31, 2020
	Retail		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	1,582	$	485	$	103	$	39	$	2,209
Intersegment revenue	—		—		51		(51)		—
Revenue	$	1,582	$	485	$	154	$	(12)	$	2,209
Adjusted EBITDA	$	22	$	26	$	(1)	$	(123)	$	(76)
Depreciation	(128)		(32)		(3)		(22)		(185)
Amortization of intangible assets	—		—		—		(44)		(44)
Impairment of goodwill	—		—		—		(765)		(765)
Impairment of intangible assets	—		—		—		(121)		(121)
Stock-based compensation	—		—		—		(55)		(55)
Legal reserves, occupancy tax and other	—		—		—		21		21
Restructuring and related reorganization charges	—		—		—		(75)		(75)
Realized (gain) loss on revenue hedges	9		(3)		—		—		6
Operating income (loss)	$	(97)	$	(9)	$	(4)	$	(1,184)	(1,294)
Other expense, net									(185)
Income before income taxes									(1,479)
Provision for income taxes									82
Net income									(1,397)
Net loss attributable to non-controlling interests									96
Net income attributable to Expedia Group, Inc.									$	(1,301)

Revenue by Business Model and Service Type

The following table presents revenue by business model and service type:

	Three months ended March 31,
	2021		2020
	(in millions)
Business Model:
Merchant	$	796	$	1,340
Agency	323		562
Advertising, media and other	127		307
Total revenue	$	1,246	$	2,209
Service Type:
Lodging	$	903	$	1,542
Air	50		109
Advertising and media	88		203
Other(1)	205		355
Total revenue	$	1,246	$	2,209

(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. Other also includes product revenue of $39 million during the three months ended March 30, 2020 related to Bodybuilding.com, which was sold in May 2020.

Our Retail and B2B segments generate revenue from the merchant, agency and advertising, media and other business models as well as all service types. trivago segment revenue is generated through advertising and media.