Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

NOTE 19 — 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 (until its sale on November 1, 2021), 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. During the fourth quarter of 2021, we consolidated our divisional finance teams into one global finance organization, which resulted in the reclassification of expenses from Retail and B2B into our Corporate function. We have reclassified prior period segment information to conform to our current period presentation.

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 2021, 2020 and 2019. 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, 2021
	Retail		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	6,821	$	1,460	$	317	$	—	$	8,598
Intersegment revenue	—		—		106		(106)		—
Revenue	$	6,821	$	1,460	$	423	$	(106)	$	8,598
Adjusted EBITDA	$	1,782	$	110	$	39	$	(454)	$	1,477
Depreciation	(522)		(102)		(10)		(81)		(715)
Amortization of intangible assets	—		—		—		(99)		(99)
Impairment of goodwill	—		—		—		(14)		(14)
Intangible and other long-term asset impairment	—		—		—		(6)		(6)
Stock-based compensation	—		—		—		(418)		(418)
Legal reserves, occupancy tax and other	—		—		—		(1)		(1)
Restructuring and related reorganization charges	—		—		—		(55)		(55)
Realized (gain) loss on revenue hedges	17		—		—		—		17
Operating income (loss)	$	1,277	$	8	$	29	$	(1,128)	186
Other expense, net									(224)
Loss before income taxes									(38)
Provision for income taxes									53
Net income									15
Net income attributable to non-controlling interests									(3)
Net income attributable to Expedia Group, Inc.									12
Preferred stock dividend									(67)
Loss on redemption of preferred stock									(214)
Net loss attributable to Expedia Group, Inc. common stockholders									$	(269)

	Year ended December 31, 2020
	Retail		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	3,993	$	942	$	205	$	59	$	5,199
Intersegment revenue	—		—		75		(75)		—
Revenue	$	3,993	$	942	$	280	$	(16)	$	5,199
Adjusted EBITDA	$	298	$	(190)	$	(14)	$	(462)	$	(368)
Depreciation	(525)		(128)		(12)		(74)		(739)
Amortization of intangible assets	—		—		—		(154)		(154)
Impairment of goodwill	—		—		—		(799)		(799)
Intangible and other long-term asset impairment	—		—		—		(175)		(175)
Stock-based compensation	—		—		—		(205)		(205)
Legal reserves, occupancy tax and other	—		—		—		13		13
Restructuring and related reorganization charges	—		—		—		(231)		(231)
Realized (gain) loss on revenue hedges	(58)		(3)		—		—		(61)
Operating loss	$	(285)	$	(321)	$	(26)	$	(2,087)	(2,719)
Other expense, net									(432)
Loss before income taxes									(3,151)
Provision for income taxes									423
Net loss									(2,728)
Net loss attributable to non-controlling interests									116
Net loss attributable to Expedia Group, Inc.									(2,612)
Preferred stock dividend									(75)
Net loss attributable to Expedia Group, Inc. common stockholders									$	(2,687)

	Year ended December 31, 2019
	Retail		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	8,808	$	2,579	$	622	$	58	$	12,067
Intersegment revenue	—		—		316		(316)		—
Revenue	$	8,808	$	2,579	$	938	$	(258)	$	12,067
Adjusted EBITDA	$	2,171	$	470	$	85	$	(592)	$	2,134
Depreciation	(512)		(110)		(11)		(79)		(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	(8)		(14)		—		—		(22)
Operating income (loss)	$	1,651	$	346	$	74	$	(1,168)	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

Revenue by Business Model and Service Type

The following table presents revenue by business model and service type for the years ended December 31, 2021, 2020 and 2019:

	Year Ended December 31,
	2021		2020		2019
	(In millions)
Business Model
Merchant	$	5,537	$	3,261	$	6,763
Agency	2,307		1,267		3,882
Advertising, media and other	754		671		1,422
Total revenue	$	8,598	$	5,199	$	12,067
Service Type
Lodging	$	6,449	$	4,051	$	8,362
Air	254		105		869
Advertising and media	603		405		1,104
Other(1)	1,292		638		1,732
Total revenue	$	8,598	$	5,199	$	12,067

___________________________________

(1)Other includes car rental, insurance, destination services, cruise and fee revenue related to our corporate travel business prior to our sale of Egencia on November 1, 2021, among other revenue streams, none of which are individually material. Other also includes product revenue of $59 million and $58 million during the years ended December 31, 2020 and 2019 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.

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, 2021, 2020 and 2019. 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,
	2021		2020		2019
	(In millions)
Revenue
United States	$	6,569	$	3,511	$	6,869
All other countries	2,029		1,688		5,198
	$	8,598	$	5,199	$	12,067

The following table presents property and equipment, net for the United States and all other countries, as of December 31, 2021 and 2020:

	As of December 31,
	2021		2020
	(In millions)
Property and equipment, net
United States	$	2,056	$	2,114
All other countries	124		143
	$	2,180	$	2,257