Fair Value Measurements

12 Months Ended

Dec. 31, 2024

Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 are classified using the fair value hierarchy in the table below:


	Total		Level 1		Level 2
	(In millions)
Assets
Cash equivalents:
Money market funds	$	113	$	113	$	—

Term deposits and certificates of deposit	163		—		163


Commercial paper	2		—		2


Derivatives:

Cross-currency interest rate swaps	25		—		25
Investments:
Equity investments	895		895		—
Corporate debt securities	354		—		354
U.S. treasury securities	70		—		70
Asset-backed securities	62		—		62
Term deposits and certificates of deposit	3		—		3
U.S. agency securities	8		—		8
Non-U.S. government securities	3		—		3
Commercial paper	2		—		2
Total assets	$	1,700	$	1,008	$	692

Liabilities
Derivatives:
Foreign currency forward contracts	$	2	$	—	$	2

Financial assets measured at fair value on a recurring basis as of December 31, 2023 are classified using the fair value hierarchy in the table below:


	Total		Level 1		Level 2
	(In millions)
Assets
Cash equivalents:
Money market funds	$	168	$	168	$	—

Term deposits	71		—		71
Derivatives:

Cross-currency interest rate swaps	8		—		8
Investments:
Term deposits	28		—		28
Equity investments	584		584		—
Total assets	$	859	$	752	$	107
Liabilities
Derivatives:
Foreign currency forward contracts	$	9	$	—	$	9

We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash equivalents and investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, a Level 2 input. Valuation of the cross-currency interest rate swaps is based on foreign currency exchange rates and the current interest rate curve, Level 2 inputs.

We hold term deposit investments with financial institutions. Term deposits with original maturities of less than three

months are classified as cash equivalents. Those with remaining maturities of less than one year are classified within short-term investments and those with remaining maturities of greater than one year are classified within long-term investments and other assets.

As of December 31, 2024 and 2023, our cash and cash equivalents consisted primarily of term deposits, certificates of deposits, and money market funds with maturities of three months or less and bank account balances.

We primarily invest in investment grade corporate debt securities, U.S. treasury securities, and asset-backed securities, all of which are classified as available-for-sale. As of December 31, 2024, we had $300 million of short-term and $202 million of long-term available-for-sale investments, which generally mature within four years. The amortized cost basis of the investments approximated their fair value with gross unrealized gains and gross unrealized losses of less than $1 million. We review our debt securities on a regular basis for impairment. During 2024, we did not recognize an allowance for credit-related losses on any of our investments.

We use foreign currency forward contracts to economically hedge certain merchant revenue exposures, foreign denominated liabilities related to certain of our loyalty programs and our other foreign currency-denominated operating liabilities. As of December 31, 2024, we were party to outstanding forward contracts hedging our liability exposures with a total net notional value of $3.9 billion. As of December 31, 2024 and 2023, we had net forward liability of $2 million ($42 million gross forward liability) and $9 million ($28 million gross forward liability) recorded in accrued expenses and other current liabilities. We recorded $33 million, $24 million and $66 million in net losses from foreign currency forward contracts in 2024, 2023 and 2022.

On March 2, 2022, we entered into two fixed-to-fixed cross-currency interest rate swaps with an aggregate notional amount of €300 million, and maturity dates of February 2026. The swaps were designated as net investment hedges of Euro assets with the objective to protect the U.S. dollar value of our net investments in the Euro foreign operations due to movements in foreign currency. The fair value of the cross-currency interest rate swaps was an $25 million asset as of December 31, 2024 and a $8 million asset as of December 31, 2023, recorded in long-term investments and other assets. The gain recognized in interest expense was $5 million during the years ended December 31, 2024, 2023 and 2022.

Our equity investments include our marketable equity investment in Despegar, a publicly traded company, which is included in long-term investments and other assets in our consolidated balance sheets. During the years ended December 31, 2024, 2023, and 2022, we recognized gains (losses) of approximately $94 million, $42 million and $(45) million, respectively, within other, net in our consolidated statements of operations related to the fair value changes of this equity investments.

In connection with our disposition of Egencia (our former corporate travel arm) in 2021, we became an indirect holder of minority interest in GBT JerseyCo Ltd. (“GBT”), doing business as American Express Global Business Travel, and entered into a 10-year lodging supply agreement. In May 2022, GBT completed a deSPAC business combination with Apollo Strategic Growth Capital. This combination resulted in a newly publicly traded company, Global Business Travel Group, Inc. (“GBTG”), which together with GBT’s pre-combination shareholders owned all of GBT. Post combination, we had minority ownership interest in GBT and a commensurate voting interest in GBTG. In July 2023, GBTG simplified its organizational structure, and we exchanged our previously held GBT shares for an equal number of GBTG shares with no change to our ownership interest. Our previous GBT shares were exchangeable on a 1:1 basis for GBTG shares, and as such, we valued our investment based on the GBTG’s share price. As of December 31, 2024 and 2023, we have an approximately 16% ownership interest in GBTG. During the years ended December 31, 2024, 2023, and 2022, we recognized gains (losses) of approximately $217 million, $(26) million and $(300) million within other, net in our consolidated statements of operations related to the fair value changes of this equity investment.

Assets Measured at Fair Value on a Non-recurring Basis

Our non-financial assets, such as goodwill, intangible assets and property and equipment, are adjusted to fair value when an impairment charge is recognized or the underlying investment is sold. Such fair value measurements are based predominately on Level 3 inputs. We measure our minority investments that do not have readily determinable fair values at cost less impairment, adjusted by observable price changes with changes recorded within other, net on our consolidated statements of operations.

Goodwill. During 2023, we recognized a goodwill impairment charge of $297 million related to our trivago segment. This impairment charge resulted from trivago’s strategic shift which included intensifying its brand marketing investments with an anticipated decrease in profitability. As a result, we concluded that sufficient indicators existed that to require us to perform an interim quantitative assessment of goodwill for our trivago segment as of September 30, 2023, in which we compared the fair value of the reporting unit to its carrying value. The fair value estimate for the reporting unit was based on a blended analysis of the present value of future discounted cash flows and market value approach, Level 3 inputs. The significant estimates used in the discounted cash flows model included our weighted average cost of capital, projected cash flows and the long-term rate of growth. Our assumptions were based on the actual historical performance of the reporting unit and considered the weakening of

operating results, and implied risk premiums based on market prices of our equity and debt as of the assessment date. Our significant estimates in the market approach model included identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment and assessing comparable revenue and earnings multiples in estimating the fair value of the reporting unit. The excess of the reporting unit's carrying value over our estimate of the fair value was recorded as the goodwill impairment charge in the third quarter of 2023. As of December 31, 2023, our trivago segment had no goodwill remaining.

Intangible Assets. During 2024, we recognized intangible asset impairment charges of $147 million related to indefinite-lived trade names, of which $114 million related to our B2C segment and $33 million related to our trivago segment. The B2C indefinite-lived trade name impairment charges were recorded during the fourth quarter of 2024 as part of our annual impairment test and resulted from changes in estimated future revenues of one of our B2C brands. The trivago indefinite-lived trade name impairment charge was recognized during the third quarter of 2024 and resulted from a decline in trivago revenue in the current year as well as trivago’s share price decline, which reduced its total market capitalization relative to its net assets. These indefinite-lived trade name assets were classified as Level 3 measurements and valued using the relief-from-royalty method, which included unobservable inputs, including projected revenues, weighted average cost of capital and royalty rates. The royalty rates for our impairments in 2024 ranged from 2.5% to 4%.

During 2023, we recognized intangible asset impairment charges of $129 million related to indefinite-lived trade names that resulted from changes in estimated future revenues of the related brands, of which $114 million related to our B2C segment and $15 million related to our trivago segment. The royalty rates for our impairments ranged from 3% to 4%. During 2022, we recognized intangible impairment charges of $81 million related to an indefinite-lived trade name within our trivago segment that resulted from changes in the weighted average cost of capital.

Minority Investments without Readily Determinable Fair Values. As of December 31, 2024 and 2023, the carrying values of our minority investments without readily determinable fair values totaled $293 million and $330 million. During 2024, we sold a minority investment for $15 million and recognized an immaterial gain on the transaction. In addition, during 2024, we recorded $22 million of losses related to a minority investment, resulting from a valuation using an option pricing model that utilizes judgmental inputs such as discounts for lack of marketability and estimated exit event timing. During 2023 and 2022, we had no material gains or losses recognized related to these minority investments. As of December 31, 2024, total cumulative adjustments made to the initial cost basis of these investments included $127 million in unrealized downward adjustments (including impairments).