Expedia Group Inc

Previous wording

More recently, inflation and other macroeconomic pressures in the U.S. and the global economy, such as rising interest rates, currency fluctuations and energy price volatility, as well as evolving geopolitical conflicts, have contributed to an increasingly complex business environment. Our future operational results may be subject to volatility, particularly in the short-term, due to the impact of the aforementioned trends. Broad, sustained negative economic impacts could put strain on our suppliers, business and service partners, which increases the risk of credit losses and service level or other disruptions.

Current wording

More recently, inflation and other macroeconomic pressures in the U.S. and the global economy, such as interest rates and currency fluctuations and energy price volatility, as well as evolving geopolitical conflicts, have contributed to an increasingly complex business environment. Our future operational results may be subject to volatility, particularly in the short-term, due to the impact of the aforementioned trends. Broad, sustained negative economic impacts could put strain on our suppliers, business and service partners, which increases the risk of credit losses and service level or other disruptions.

Previous wording

Despite these factors, we have witnessed a healthy but more normalized travel demand environment in the first half of 2024, as consumers continue to prioritize spend on travel and experiences over other discretionary spending.

Current wording

Despite these factors, we have witnessed a healthy but more normalized travel demand environment in the first nine months of 2024, as consumers continue to prioritize spend on travel and experiences over other discretionary spending.

Previous wording

Lodging includes both hotel and alternative accommodations. As a percentage of our total worldwide revenue in the second quarter of 2024, lodging accounted for 80%. Room nights booked grew 9% in the first half of 2024, as compared to growth of 12% in 2023 and 26% in 2022. Average Daily Rates (“ADRs”) booked for Expedia Group declined 2% in first half of 2024 and decreased 2% in 2023 and grew 3% in 2022. While trends are starting to normalize, our lodging business has seen a significant increase in ADRs compared to pre-pandemic levels, which were driven by broader industry trends, a mix shift to Vrbo and high ADR geographies.

Current wording

Lodging includes both hotel and alternative accommodations. As a percentage of our total worldwide revenue in the third quarter of 2024, lodging accounted for 82%. Room nights booked grew 9% in the first nine months of 2024, as compared to growth of 12% in 2023 and 26% in 2022. Average Daily Rates (“ADRs”) booked for Expedia Group declined 2% in the first nine months of 2024 and decreased 2% in 2023 and grew 3% in 2022. While trends are normalizing, our lodging business has seen a significant increase in ADRs compared to pre-pandemic levels, which were driven by broader industry trends, a mix shift to Vrbo and high ADR geographies.

Previous wording

As of June 30, 2024, our global lodging marketplace had over 3.5 million lodging properties available, including over 2.5 million online bookable alternative accommodations listings through Vrbo and over 1 million hotels and alternative accommodations through our other brands.

Current wording

As of September 30, 2024, our global lodging marketplace has over 3.5 million total lodging properties available. Our Vrbo brand has over 2.5 million online bookable alternative accommodations listings. Our other brands have over 1 million hotels and alternative accommodations.

Previous wording

Booked air tickets increased 4% in the first half of 2024, and increased 4% in 2023 and 8% in 2022. As a percentage of our total worldwide revenue in the second quarter of 2024, air accounted for 3%.

Current wording

Booked air tickets increased 5% in the first nine months of 2024, and increased 4% in 2023 and 8% in 2022. As a percentage of our total worldwide revenue in the third quarter of 2024, air accounted for 3%.

Previous wording

Our advertising and media business is principally driven by revenue generated by trivago, a leading hotel metasearch website, and Expedia Group Media Solutions, which is responsible for generating advertising revenue on our global online travel brands. In the first half of 2024, we generated $444 million of advertising and media revenue, an 18% increase from the same period in 2023. As a percentage of our total worldwide revenue in the second quarter of 2024, advertising and media accounted for 6%.

Current wording

Our advertising and media business is principally driven by revenue generated by trivago, a leading hotel metasearch website, and Expedia Group Media Solutions, which is responsible for generating advertising revenue on our global online travel brands.

Previous wording

Since the onset of COVID-19, online travel agencies, including ourselves, have reduced marketing spend on trivago. In 2023, the company adopted its marketing strategy and launched a new logo and visual identity, part of a push to rejuvenate its brand, demonstrate the relevance of its offerings and drive long-term growth.

Current wording

In the first nine months of 2024, we generated $249 million of third-party revenue from trivago, a 9% decrease from the same period in 2023. Since the onset of COVID-19, online travel agencies, including ourselves, have reduced marketing spend on trivago. In 2023, the company adopted its marketing strategy and launched a new logo and visual identity, part of a push to rejuvenate its brand, demonstrate the relevance of its offerings and drive long-term growth.

Previous wording

We also launched One Key in the United States in 2023, which serves as the unified loyalty program under Brand Expedia, Hotels.com and Vrbo, enabling travelers to cross-earn and cross-redeem rewards across these brands and our range of products such as air, hotels and alternative accommodations. In 2024, we plan to also roll out One Key in the United Kingdom. With greatly improved product driven by the latest in machine learning and artificial intelligence capabilities and One Key, we believe we will continue to drive greater retention, repeat and direct business.

Current wording

We also launched One Key in the United States in 2023, which serves as the unified loyalty program under Brand Expedia, Hotels.com and Vrbo, enabling travelers to cross-earn and cross-redeem rewards across these brands and our range of products such as air, hotels and alternative accommodations. In 2024, we also rolled out One Key in the United Kingdom. With greatly improved product driven by the latest in machine learning and artificial intelligence capabilities and One Key, we believe we will continue to drive greater retention, repeat and direct business.

Previous wording

Legal Proceedings. We are currently involved in five lawsuits brought by or against states, cities and counties over issues involving the payment of hotel occupancy and other taxes. We continue to defend these lawsuits vigorously. With respect to the principal claims in these matters, we believe that the statutes and/or ordinances at issue do not apply to us or the services we provide, namely the facilitation of travel planning and reservations, and, therefore, that we do not owe the taxes that are claimed to be owed. We believe that the statutes and ordinances at issue generally impose occupancy and other taxes on entities that own, operate or control hotels (or similar businesses) or furnish or provide hotel rooms or similar accommodations.

Current wording

Legal Proceedings. We are currently involved in four lawsuits brought by or against states, cities and counties over issues involving the payment of hotel occupancy and other taxes. We continue to defend these lawsuits vigorously. With respect to the principal claims in these matters, we believe that the statutes and/or ordinances at issue do not apply to us or the services we provide, namely the facilitation of travel planning and reservations, and, therefore, that we do not owe the taxes that are claimed to be owed. We believe that the statutes and ordinances at issue generally impose occupancy and other taxes on entities that own, operate or control hotels (or similar businesses) or furnish or provide hotel rooms or similar accommodations.

Previous wording

We have established a reserve for the potential settlement of issues related to hotel occupancy and other tax litigation, consistent with applicable accounting principles and in light of all current facts and circumstances, in the amount of $36 million and $46 million as of June 30, 2024 and December 31, 2023.

Current wording

We have established a reserve for the potential settlement of issues related to hotel occupancy and other tax litigation, consistent with applicable accounting principles and in light of all current facts and circumstances, in the amount of $3 million and $46 million as of September 30, 2024 and December 31, 2023.

Previous wording

Certain jurisdictions, including without limitation the states of New York, New Jersey, North Carolina, Minnesota, Oregon, Rhode Island, Maryland, Pennsylvania, Hawaii, Iowa, Massachusetts, Arizona, Wisconsin, Idaho, Arkansas, Indiana, Maine, Nebraska, Vermont, Mississippi, Virginia, the city of New York, and the District of Columbia, have enacted legislation seeking to tax online travel company services as part of sales or other taxes for hotel and/or other accommodations and/or car rental. In addition, in certain jurisdictions, we have entered into voluntary collection agreements pursuant to which we have agreed to voluntarily collect and remit taxes to state and/or local taxing jurisdictions. We are currently remitting taxes to a number of jurisdictions, including without limitation the states of New York, New Jersey, South Carolina, North Carolina, Minnesota, Georgia, Wyoming, West Virginia, Oregon, Rhode Island, Montana, Maryland, Kentucky, Maine, Pennsylvania, Hawaii, Iowa, Massachusetts, Arizona, Wisconsin, Idaho, Arkansas, Indiana, Nebraska, Vermont, Colorado, Mississippi, Virginia, the city of New York and the District of Columbia, as well as certain other jurisdictions.

Current wording

Certain jurisdictions, including without limitation the states of New York, New Jersey, North Carolina, Minnesota, Oregon, Rhode Island, Maryland, Pennsylvania, Hawaii, Iowa, Massachusetts, Arizona, Wisconsin, Idaho, Arkansas, Indiana, Maine, Nebraska, Vermont, Mississippi, and Virginia, the city of New York, and the District of Columbia, have enacted legislation seeking to tax online travel company services as part of sales or other taxes for hotel and/or other accommodations and/or car rental. In addition, in certain jurisdictions, we have entered into voluntary collection agreements pursuant to which we have agreed to voluntarily collect and remit taxes to state and/or local taxing jurisdictions. We are currently remitting taxes to a number of jurisdictions, including without limitation the states of New York, New Jersey, South Carolina, North Carolina, Minnesota, Georgia, Wyoming, West Virginia, Oregon, Rhode Island, Montana, Maryland, Kentucky, Maine, Pennsylvania, Hawaii, Iowa, Massachusetts, Arizona, Wisconsin, Idaho, Arkansas, Indiana, Nebraska, Vermont, Colorado, Mississippi, and Virginia, the city of New York and the District of Columbia, as well as certain other jurisdictions.

Previous wording

During the three and six months ended June 30, 2024, gross bookings increased 6% and 4%, compared to the same periods in 2023, primarily driven by total lodging gross bookings due to continued strength in our hotel business. The growth in the six months ended June 30, 2024 was partially offset by softness in our Vrbo business. Booked room nights for our lodging business increased 10% and 9% for the three and six months ended June 30, 2024.

Current wording

During the three and nine months ended September 30, 2024, gross bookings increased 7% and 5%, compared to the same periods in 2023, primarily driven by lodging gross bookings due to continued strength in our hotel business. During the third quarter of 2024, we also saw a strong recovery in our air business as well as continued acceleration at Vrbo, which returned to modest growth for the quarter. The growth in the nine months ended September 30, 2024 was partially offset by softness in our Vrbo business earlier in the year. Booked room nights for our lodging business increased 9% for both the three and nine months ended September 30, 2024.

Previous wording

Revenue increased 6% and 7% for the three and six months ended June 30, 2024, compared to the same periods in 2023, on strong growth in our B2B segment resulting from increased lodging revenue.

Current wording

Revenue increased 3% and 6% for the three and nine months ended September 30, 2024, compared to the same periods in 2023, on strong growth in our B2B segment resulting from increased lodging revenue.

Previous wording

Lodging revenue increased 6% and 8% for the three and six months ended June 30, 2024, compared to the same periods in 2023, primarily driven by an increase in room nights stayed mostly in our hotel business.

Current wording

Lodging revenue increased 3% and 6% for the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily driven by an increase in room nights stayed mostly in our hotel business.

Previous wording

Air revenue remained consistent for the three and six months ended June 30, 2024 compared to the same periods in 2023.

Current wording

Air revenue increased for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase in air tickets sold. Air revenue remained consistent for the nine months ended September 30, 2024 compared to the same period in 2023.

Previous wording

Advertising and media revenue increased 14% and 18% for the three and six months ended June 30, 2024, compared to the same periods in 2023, due to an increase at Expedia Group Media Solutions, partially offset by a decline in trivago revenue. All other revenue, which includes car rental, insurance, cruise and activities, remained consistent during the three and six months ended June 30, 2024, compared to the same periods in 2023.

Current wording

Advertising and media revenue increased 12% and 16% for the three and nine months ended September 30, 2024, compared to the same periods in 2023, due to an increase at Expedia Group Media Solutions, partially offset by a decline in trivago revenue. All other revenue, which includes car rental, insurance, cruise and activities, increased during the three ended months September 30, 2024, compared to the same period in 2023 primarily due to an increase in car rental and insurance revenue. All other revenue for the nine months ended September 30, 2024, compared to the same period in 2023, remained consistent.

Previous wording

Merchant revenue increased for the three and six months ended June 30, 2024, compared to the same periods in 2023, was primarily due to an increase in merchant hotel revenue. Agency revenue increased slightly for the three and six months ended June 30, 2024, compared to the same periods in 2023. Advertising, media and other increased for the three and six months ended June 30, 2024, compared to the same periods in 2023, primarily due to an increase in Expedia Media Solutions advertising revenue.

Current wording

Merchant revenue increased for the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to an increase in merchant hotel revenue. Agency revenue increased for the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to an increase in agency lodging and air revenue. Advertising, media and other increased for the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to an increase in Expedia Media Solutions advertising revenue.

Previous wording

Cost of revenue decreased $45 million and $101 million during the three and six months ended June 30, 2024, compared to the same periods in 2023, primarily due to lower costs from initiatives to drive transactional efficiencies.

Current wording

Cost of revenue decreased $24 million and $125 million during the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to lower costs from ongoing initiatives to drive transactional efficiencies.

Previous wording

Selling and marketing - direct increased $214 million and $377 million during the three and six months ended June 30, 2024, compared to the same period in 2023, primarily driven by an increase in B2B partner commissions to support strong growth and, to a lesser extent, a ramp in marketing spend at Vrbo. Selling and marketing - indirect costs remained largely consistent period over period.

Current wording

Selling and marketing - direct increased $184 million and $561 million during the three and nine months ended September 30, 2024, compared to the same period in 2023, primarily driven by an increase in B2B partner commissions to support strong growth and, to a lesser extent, a ramp in marketing spend at Vrbo and international markets to drive improving growth and global market expansion. Selling and marketing - indirect costs increased during the three and nine months ended September 30, 2024, compared to the same period in 2023, primarily driven by an increase in average salaries.

Previous wording

General and administrative expense decreased $14 million and $12 million during the three and six months ended June 30, 2024 as compared to the same periods in 2023 due to lower personnel costs in connection with previously announced cost saving initiatives.

Current wording

Technology and content expense decreased $20 million and $9 million during the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to lower personnel costs in connection with previously announced cost saving initiatives, partially offset by higher stock-based compensation.

Previous wording

Depreciation increased $6 million and $24 million during the three and six months ended June 30, 2024, compared to the same periods in 2023 primarily as a result of increased depreciation related to capitalized website development costs. Amortization of intangible assets remained consistent during the three and six months ended June 30, 2024 as compared to the same periods in 2023.

Current wording

Depreciation increased $3 million and $27 million during the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily as a result of increased depreciation related to capitalized website development costs. Amortization of intangible assets remained consistent during the three and nine months ended September 30, 2024 as compared to the same periods in 2023.

Previous wording

Legal reserves, occupancy tax and other for the three and six months ended June 30, 2024, primarily included a $30 million charge related to digital service taxes for fiscal years 2022 and 2023 retroactively enacted by Canada in June 2024, partially offset by net reductions to our reserve related to hotel occupancy and other taxes. In addition, the six months ended June 30, 2024 also included our donation of $20 million as part of a public-private partnership project to revitalize public parks along the Elliot Bay waterfront in Seattle. During the six months ended June 30, 2023, the charges primarily included changes to our reserve related to other taxes.

Current wording

Legal reserves, occupancy tax and other for the three months ended September 30, 2024, primarily included $92 million charge related to an Italian VAT settlement reserve, partially offset by net reductions to our reserve of $33 million related to hotel occupancy and other taxes due to the favorable resolution of a tax related case. Legal reserves, occupancy tax and other for the nine months ended September 30, 2024 also included a $30 million charge related to digital service taxes for fiscal years 2022 and 2023 retroactively enacted by Canada in June 2024 and our donation of $20 million as part of a public-private partnership project to revitalize public parks along the Elliot Bay waterfront in Seattle, partially offset by an additional net reduction of to our reserve of $9 million for the favorable resolution of another tax related case. During the nine months ended September 30, 2023, the charges primarily included changes to our reserve related to other taxes.

Previous wording

In February 2024, we committed to restructuring actions to recalibrate resources as most of the Company’s organizational and technological transformation is now completed, which have resulted in headcount reductions. As a result, we recognized $18 million and $66 million in restructuring and related reorganization charges during the three and six months ended June 30, 2024, which were predominately related to employee severance, stock-based compensation and benefits costs. Based on current plans which are subject to change, we expect total reorganization charges in the remainder of 2024 in the range of approximately $10 million to $20 million. These costs could be higher or lower should we make additional decisions in future periods that impact our reorganization efforts.

Current wording

In February 2024, we committed to restructuring actions to recalibrate resources as most of the Company’s organizational and technological transformation is now completed, which have resulted in headcount reductions. As a result, we recognized $6 million and $72 million in restructuring and related reorganization charges during the three and nine months ended September 30, 2024, which were predominately related to employee severance, stock-based compensation and benefits costs. Based on current plans which are subject to change, we expect total reorganization charges in the remainder of 2024 to be in the range of approximately $5 million to $10 million. These costs could be higher or lower should we make additional decisions in future periods that impact our reorganization efforts.

Previous wording

During the three and six months ended June 30, 2024, the increase in operating income in the current year periods was primarily due to growth in revenue in excess of operating costs, partially offset by the legal reserve, occupancy and other charges as well as the restructuring charges discussed above.

Current wording

During the three and nine months ended September 30, 2024, the increase in operating income in the current year periods was primarily due to lower impairment charges in the current periods, partially offset by the legal reserve, occupancy and other charges as well as the restructuring charges discussed above.

Previous wording

Our B2C segment Adjusted EBITDA remained consistent during the three months ended June 30, 2024, compared to the same period in 2023. Our B2C segment Adjusted EBITDA increased during the six months ended June 30, 2024, compared to the same period in 2023, as a result of continued revenue growth and transactional efficiencies. Our B2B segment experienced an improvement in Adjusted EBITDA during the three and six months ended June 30, 2024, compared to the same periods in 2023, primarily as a result of strong revenue growth. Our trivago segment Adjusted EBITDA decreased during the three and six months ended June 30, 2024, compared to the same periods in 2023, as a result of revenue declines as well as increase in marketing costs.

Current wording

Our B2C segment Adjusted EBITDA decreased slightly during the three months ended September 30, 2024, compared to the same period in 2023, due to slight revenue declines as well as an increase in marketing spend. Our B2C segment Adjusted EBITDA increased slightly during the nine months ended September 30, 2024, compared to the same period in 2023, as a result of revenue growth. Our B2B segment experienced an improvement in Adjusted EBITDA during the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily as a result of strong revenue growth. Our trivago segment Adjusted EBITDA decreased during the three and nine months ended September 30, 2024, compared to the same periods in 2023, as a result of revenue declines resulting from headwinds in its performance marketing channels. The quarter-to-date period was impacted by lower marketing costs while the year-to-date period was impacted by an increase in marketing costs.

Previous wording

Interest income increased for the three and six months ended June 30, 2024, compared to the same periods in 2023, as a result of higher rates of return. Interest expense remained consistent for the three and six months ended June 30, 2024, compared to the same periods in 2023.

Current wording

Interest income increased for the three and nine months ended September 30, 2024, compared to the same periods in 2023, as a result of higher rates of return. Interest expense remained consistent for the three and nine months ended September 30, 2024, compared to the same periods in 2023.

Previous wording

During the six months ended June 30, 2023, we recognized a $67 million gain, which together with amounts recorded in a prior period, represented the estimate of an indemnification reimbursement due to Expedia Group from TripAdvisor. During the three and six months ended June 30, 2024, we recognized a $6 million gain related to an indemnification receivable for additional interest due to the IRS. See “Provision for Income Taxes” below for the corresponding charge to income tax expense.

Current wording

During the nine months ended September 30, 2023, we recognized a $67 million gain, which together with amounts recorded in a prior period, represented the estimate of an indemnification reimbursement due to Expedia Group from TripAdvisor. During the nine months ended September 30, 2024, we recognized a $6 million gain related to an indemnification receivable for additional interest due to the IRS. See “Provision for Income Taxes” below for the corresponding charge to income tax expense.

Previous wording

For the three months ended June 30, 2024, the effective tax rate was 23.3%, compared to 16.7% for the three months ended June 30, 2023. The change in the effective tax rate quarter over quarter was primarily due to other discrete items recorded in the prior year quarter.

Current wording

For the three months ended September 30, 2024, the effective tax rate was 21.7%, compared to 31.2% for the three months ended September 30, 2023. The change in the effective tax rate was primarily due to a nondeductible goodwill impairment and nondeductible mark-to-market charges recorded in the prior year period.

Previous wording

For the six months ended June 30, 2024, the effective tax rate was 28.3%, compared to 38.7% for the six months ended June 30, 2023. The change in the effective tax rate period over period was due to prior period discrete tax effects of the TripAdvisor audit assessment as discussed further in Note 8 – Income Taxes in the notes to the consolidated financial statements.

Current wording

For the nine months ended September 30, 2024, the effective tax rate was 23.5%, compared to 34.8% for the nine months ended September 30, 2023. The change in the effective tax rate was due to discrete tax effects of the TripAdvisor audit assessment recorded in the prior year period, as discussed further in Note 8 – Income Taxes in the notes to the consolidated financial statements.

Previous wording

We are subject to taxation in the United States and foreign jurisdictions. Our income tax filings are regularly examined by federal, state, and foreign tax authorities. For the tax years 2011 to 2013 and 2014 to 2016, the IRS issued final adjustments related to transfer pricing with our foreign subsidiaries. The 2011 to 2013 adjustments would result in federal income tax of approximately $244 million, subject to interest. The 2014 to 2016 adjustments would result in federal income tax of approximately $431 million, subject to interest. We do not agree with these adjustments and will continue to vigorously defend our position through administrative procedures. We are also under examination by the IRS for 2017 through 2020.

Current wording

We are subject to taxation in the United States and foreign jurisdictions. Our income tax filings are regularly examined by federal, state, and foreign tax authorities. For tax years 2011 to 2013 and 2014 to 2016, the IRS issued final adjustments related to transfer pricing with our foreign subsidiaries. The 2011 to 2013 adjustments would result in federal income tax of approximately $244 million, subject to interest. The 2014 to 2016 adjustments would result in federal income tax of approximately $431 million, subject to interest. We do not agree with these adjustments and will continue to vigorously defend our position through administrative procedures. We are also under examination by the IRS for tax years 2017 to 2020.

Previous wording

In December 2021, the OECD released model rules introducing a 15% global minimum tax rate for large multinational corporations (“Pillar Two”). Certain countries in which we operate have enacted legislation consistent with the OECD model rules effective beginning in 2024. We considered the applicable tax laws in relevant jurisdictions and there is no material impact to our tax provision for the six months ended June 30, 2024. The Company will continue to evaluate the potential impact of Pillar Two on future reporting periods.

Current wording

In December 2021, the OECD released model rules introducing a 15% global minimum tax rate for large multinational corporations (“Pillar Two”). Certain countries in which we operate have enacted legislation consistent with the OECD model rules effective beginning in 2024. We considered the applicable tax laws in relevant jurisdictions and concluded there is no material impact to our tax provision for the nine months ended September 30, 2024. The Company will continue to evaluate the potential impact of Pillar Two on future reporting periods.

Previous wording

Our principal sources of liquidity are typically cash flows generated from operations, cash available under our credit facility as well as our cash and cash equivalents and short-term investment balances, which were $6.3 billion and $4.3 billion at June 30, 2024 and December 31, 2023. As of June 30, 2024, the total cash and cash equivalents and short-term investments held outside the United States was $839 million ($716 million in wholly-owned foreign subsidiaries and $123 million in majority-owned subsidiaries). Our revolving credit facility with aggregate commitments of $2.5 billion was essentially untapped at June 30, 2024.

Current wording

Our principal sources of liquidity are typically cash flows generated from operations, cash available under our credit facility as well as our cash and cash equivalents and short-term investment balances, which were $4.9 billion and $4.3 billion at September 30, 2024 and December 31, 2023. As of September 30, 2024, the total cash and cash equivalents and short-term investments held outside the United States was $633 million ($512 million in wholly-owned foreign subsidiaries and $121 million in majority-owned subsidiaries). Our revolving credit facility with aggregate commitments of $2.5 billion was essentially untapped at September 30, 2024.

Previous wording

For the six months ended June 30, 2024, net cash provided by operating activities remained consistent with net cash provided by operating activities in the prior year period.

Current wording

For the nine months ended September 30, 2024, net cash provided by operating activities remained consistent with net cash provided by operating activities in the prior year period.

Previous wording

For the six months ended June 30, 2024, we had net cash used in investing activities of $449 million compared to $388 million in the prior year period. The change was primarily due to higher uses of cash for the settlement of currency forward contract losses in the current year period as well as higher net purchases of investments in the current period, partially offset by lower current period capital expenditures.

Current wording

For the nine months ended September 30, 2024, we had net cash used in investing activities of $901 million compared to $635 million in the prior year period. The change was primarily due to net purchases of investments in the current period compared to sales of investments in the prior year period, partially offset by lower current period capital expenditures.

Previous wording

For the six months ended June 30, 2024, net cash used in financing activities primarily included $1.2 billion of cash paid to acquire shares, including the repurchased shares under the authorization discussed below and for treasury stock activity related to the vesting of equity instruments, partially offset by $48 million of proceeds from the exercise of options and employee stock purchase plans. For the six months ended June 30, 2023, net cash used in financing activities primarily included $1.1 billion of cash paid to acquire shares, including the repurchased shares under prior authorizations and for treasury stock activity related to the vesting of equity instruments, partially offset by $40 million of proceeds from the exercise of options and employee stock purchase plans.

Current wording

For the nine months ended September 30, 2024, net cash used in financing activities primarily included $1.6 billion of cash paid to acquire shares, including the repurchased shares under the authorization discussed below and for treasury stock activity related to the vesting of equity instruments, partially offset by $77 million of proceeds from the exercise of options and employee stock purchase plans. For the nine months ended September 30, 2023, net cash used in financing activities primarily included $1.7 billion of cash paid to acquire shares, including the repurchased shares under repurchase programs and for treasury stock activity related to the vesting of equity instruments, partially offset by $53 million of proceeds from the exercise of options and employee stock purchase plans.

Previous wording

In October 2023, the Executive Committee of the Board of Directors, pursuant to a delegation of authority from the Board, authorized an additional program to repurchase up to $5 billion of our common stock (“2023 Share Repurchase Program”). During the six months ended June 30, 2024, we repurchased, through open market transactions, 8.1 million shares under 2023 Share Repurchase Program for a total cost of approximately $1.1 billion, excluding transaction costs and excise tax due under the Inflation Reduction Act of 2022. As of June 30, 2024, $3.8 billion remain authorized for repurchase under the 2023 Share Repurchase Program. Our 2023 Share Repurchase Programs does not have fixed expiration dates and does not obligate the Company to acquire any specific number of shares. Under the program, shares may be repurchased in the open market or in privately negotiated transactions. The timing, manner, price and amount of any repurchases will be subject to the discretion of the Company and depend on a variety of factors, including the market price of Expedia Group’s common stock, general market and economic conditions, regulatory requirements and other business considerations.

Current wording

In October 2023, the Executive Committee of the Board of Directors, pursuant to a delegation of authority from the Board, authorized an additional program to repurchase up to $5 billion of our common stock (“2023 Share Repurchase Program”). During the nine months ended September 30, 2024, we repurchased, through open market transactions, 11.2 million shares under 2023 Share Repurchase Program for a total cost of approximately $1.5 billion, excluding transaction costs and excise tax due under the Inflation Reduction Act of 2022. As of September 30, 2024, $3.4 billion remain authorized for repurchase under the 2023 Share Repurchase Program. Our 2023 Share Repurchase Programs does not have fixed expiration dates and does not obligate the Company to acquire any specific number of shares. Under the program, shares may be repurchased in the open market or in privately negotiated transactions. The timing, manner, price and amount of any repurchases will be subject to the discretion of the Company and depend on a variety of factors, including the market price of Expedia Group’s common stock, general market and economic conditions, regulatory requirements and other business considerations.

Previous wording

Foreign exchange rate changes resulted in a decrease of our cash and restricted cash balances denominated in foreign currency during the six months ended June 30, 2024 of $81 million compared to $10 million increase in the prior year period reflecting a net depreciation in foreign currencies relative to the U.S. dollar in the current period and net appreciations in the prior year period.

Current wording

Foreign exchange rate changes resulted in a decrease of our cash and restricted cash balances denominated in foreign currency during the nine months ended September 30, 2024 of $11 million compared to $53 million decrease in the prior year period reflecting higher net depreciation in foreign currencies relative to the U.S. dollar in the prior year period.

Previous wording

(1)Current liabilities include intercompany payables with non-guarantors of $916 million as of June 30, 2024 and $804 million as of December 31, 2023.

Current wording

(1)Current liabilities include intercompany payables with non-guarantors of $1.2 billion as of September 30, 2024 and $804 million as of December 31, 2023.

Previous wording

(2)Operating income includes net intercompany income with non-guarantors of $194 million for the six months ended June 30, 2024 and $152 million for the year ended December 31, 2023.

Current wording

(2)Operating income includes net intercompany income with non-guarantors of $471 million for the nine months ended September 30, 2024 and $152 million for the year ended December 31, 2023.