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Segment Information | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information We have the following reportable segments: B2C (formerly referred to as Retail), B2B, and trivago. Our B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia.com, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. Our B2B segment is primarily comprised of Expedia Partner Solutions, which offers private label and co-branded products to make travel services available to travelers through third-party company branded websites. 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 B2C 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 B2C 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. 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 and nine months ended September 30, 2023 and 2022. 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 September 30, 2023
| B2C |  | B2B |  | trivago |  | Corporate & Eliminations |  | Total
| (In millions)
Third-party revenue | $ | 2,819 |  |  | $ | 995 |  |  | $ | 115 |  |  | $ | — |  |  | $ | 3,929 |
Intersegment revenue | — |  |  | — |  |  | 57 |  |  | (57) |  |  | — |
Revenue | $ | 2,819 |  |  | $ | 995 |  |  | $ | 172 |  |  | $ | (57) |  |  | $ | 3,929 |
Adjusted EBITDA | $ | 1,056 |  |  | $ | 266 |  |  | $ | 18 |  |  | $ | (124) |  |  | $ | 1,216 |
Depreciation | (137) |  |  | (29) |  |  | (2) |  |  | (26) |  |  | (194) |
Amortization of intangible assets | — |  |  | — |  |  | — |  |  | (14) |  |  | (14) |
Impairment of goodwill | — |  |  | — |  |  | — |  |  | (297) |  |  | (297) |
Impairment of intangible assets | — |  |  | — |  |  | — |  |  | (15) |  |  | (15) |
Stock-based compensation | — |  |  | — |  |  | — |  |  | (105) |  |  | (105) |
Realized (gain) loss on revenue hedges | 16 |  |  | — |  |  | — |  |  | — |  |  | 16 |
Operating income (loss) | $ | 935 |  |  | $ | 237 |  |  | $ | 16 |  |  | $ | (581) |  |  | 607 |
Other expense, net |  |  |  |  |  |  |  |  | (163) |
Income before income taxes |  |  |  |  |  |  |  |  | 444 |
Provision for income taxes |  |  |  |  |  |  |  |  | (139) |
Net income |  |  |  |  |  | 305 |
Net loss attributable to non-controlling interests |  |  |  |  |  | 120 |
Net income attributable to Expedia Group, Inc. |  |  |  |  |  | $ | 425 |
| Three months ended September 30, 2022
| B2C |  | B2B |  | trivago |  | Corporate & Eliminations |  | Total
| (In millions)
Third-party revenue | $ | 2,707 |  |  | $ | 788 |  |  | $ | 124 |  |  | $ | — |  |  | $ | 3,619 |
Intersegment revenue | — |  |  | — |  |  | 61 |  |  | (61) |  |  | — |
Revenue | $ | 2,707 |  |  | $ | 788 |  |  | $ | 185 |  |  | $ | (61) |  |  | $ | 3,619 |
Adjusted EBITDA | $ | 943 |  |  | $ | 221 |  |  | $ | 34 |  |  | $ | (119) |  |  | $ | 1,079 |
Depreciation | (126) |  |  | (22) |  |  | (2) |  |  | (26) |  |  | (176) |
Amortization of intangible assets | — |  |  | — |  |  | — |  |  | (23) |  |  | (23) |
Impairment of intangible assets | — |  |  | — |  |  | — |  |  | (52) |  |  | (52) |
Stock-based compensation | — |  |  | — |  |  | — |  |  | (97) |  |  | (97) |
Realized (gain) loss on revenue hedges | 10 |  |  | 6 |  |  | — |  |  | — |  |  | 16 |
Operating income (loss) | $ | 827 |  |  | $ | 205 |  |  | $ | 32 |  |  | $ | (317) |  |  | 747 |
Other expense, net |  |  |  |  |  |  |  |  | (57) |
Income before income taxes |  |  |  |  |  |  |  |  | 690 |
Provision for income taxes |  |  |  |  |  |  |  |  | (214) |
Net income |  |  |  |  |  | 476 |
Net loss attributable to non-controlling interests |  |  |  |  |  | 6 |
Net income attributable to Expedia Group, Inc. |  |  |  |  |  | $ | 482 |
| Nine months ended September 30, 2023
| B2C |  | B2B |  | trivago |  | Corporate & Eliminations |  | Total
| (In millions)
Third-party revenue | $ | 7,155 |  |  | $ | 2,524 |  |  | $ | 273 |  |  | $ | — |  |  | $ | 9,952 |
Intersegment revenue | — |  |  | — |  |  | 154 |  |  | (154) |  |  | — |
Revenue | $ | 7,155 |  |  | $ | 2,524 |  |  | $ | 427 |  |  | $ | (154) |  |  | $ | 9,952 |
Adjusted EBITDA | $ | 1,857 |  |  | $ | 605 |  |  | $ | 51 |  |  | $ | (365) |  |  | $ | 2,148 |
Depreciation | (393) |  |  | (81) |  |  | (4) |  |  | (77) |  |  | (555) |
Amortization of intangible assets | — |  |  | — |  |  | — |  |  | (44) |  |  | (44) |
Impairment of goodwill | — |  |  | — |  |  | — |  |  | (297) |  |  | (297) |
Impairment of intangible assets | — |  |  | — |  |  | — |  |  | (15) |  |  | (15) |
Stock-based compensation | — |  |  | — |  |  | — |  |  | (314) |  |  | (314) |
Legal reserves, occupancy tax and other | — |  |  | — |  |  | — |  |  | (6) |  |  | (6) |
Realized (gain) loss on revenue hedges | 18 |  |  | (6) |  |  | — |  |  | — |  |  | 12 |
Operating income (loss) | $ | 1,482 |  |  | $ | 518 |  |  | $ | 47 |  |  | $ | (1,118) |  |  | 929 |
Other expense, net |  |  |  |  |  |  |  |  | (82) |
Income before income taxes |  |  |  |  |  |  |  |  | 847 |
Provision for income taxes |  |  |  |  |  |  |  |  | (295) |
Net income |  |  |  |  |  |  |  |  | 552 |
Net loss attributable to non-controlling interests |  |  |  |  |  | 113 |
Net income attributable to Expedia Group, Inc. |  |  |  |  |  | $ | 665 |
| Nine months ended September 30, 2022
| B2C |  | B2B |  | trivago |  | Corporate & Eliminations |  | Total
| (In millions)
Third-party revenue | $ | 6,867 |  |  | $ | 1,870 |  |  | $ | 312 |  |  | $ | — |  |  | $ | 9,049 |
Intersegment revenue | — |  |  | — |  |  | 143 |  |  | (143) |  |  | — |
Revenue | $ | 6,867 |  |  | $ | 1,870 |  |  | $ | 455 |  |  | $ | (143) |  |  | $ | 9,049 |
Adjusted EBITDA | $ | 1,713 |  |  | $ | 457 |  |  | $ | 92 |  |  | $ | (362) |  |  | $ | 1,900 |
Depreciation | (381) |  |  | (62) |  |  | (7) |  |  | (77) |  |  | (527) |
Amortization of intangible assets | — |  |  | — |  |  | — |  |  | (66) |  |  | (66) |
Impairment of intangible assets | — |  |  | — |  |  | — |  |  | (81) |  |  | (81) |
Stock-based compensation | — |  |  | — |  |  | — |  |  | (280) |  |  | (280) |
Legal reserves, occupancy tax and other | — |  |  | — |  |  | — |  |  | (23) |  |  | (23) |
Realized (gain) loss on revenue hedges | 25 |  |  | 9 |  |  | — |  |  | — |  |  | 34 |
Operating income (loss) | $ | 1,357 |  |  | $ | 404 |  |  | $ | 85 |  |  | $ | (889) |  |  | 957 |
Other expense, net |  |  |  |  |  |  |  |  | (602) |
Income before income taxes |  |  |  |  |  |  |  |  | 355 |
Provision for income taxes |  |  |  |  |  |  |  |  | (187) |
Net income |  |  |  |  |  |  |  |  | 168 |
Net loss attributable to non-controlling interests |  |  |  |  |  | 7 |
Net income attributable to Expedia Group, Inc. |  |  |  |  |  | $ | 175 |
Revenue by Business Model and Service Type The following table presents revenue by business model and service type:
| Three months ended September 30, |  | Nine months ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (in millions)
Business Model: |  |  |  |  |  |  |
Merchant | $ | 2,739 |  |  | $ | 2,427 |  |  | $ | 6,833 |  |  | $ | 6,037 |
Agency | 918 |  |  | 935 |  |  | 2,408 |  |  | 2,309 |
Advertising, media and other | 272 |  |  | 257 |  |  | 711 |  |  | 703 |
Total revenue | $ | 3,929 |  |  | $ | 3,619 |  |  | $ | 9,952 |  |  | $ | 9,049 |
Service Type: |  |  |  |  |  |  |
Lodging | $ | 3,233 |  |  | $ | 2,881 |  |  | $ | 7,960 |  |  | $ | 6,891 |
Air | 100 |  |  | 100 |  |  | 324 |  |  | 269 |
Advertising and media | 240 |  |  | 222 |  |  | 616 |  |  | 601 |
Other(1) | 356 |  |  | 416 |  |  | 1,052 |  |  | 1,288 |
Total revenue | $ | 3,929 |  |  | $ | 3,619 |  |  | $ | 9,952 |  |  | $ | 9,049 |
____________________________ (1)Other includes car rental, insurance, activities and cruise revenue, among other revenue streams, none of which are individually material. Our B2C 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.

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