LEASES

12 Months Ended

Dec. 31, 2024

The Company has operating and finance leases for office space, data centers, and computer equipment.

The Company recognized the following related to its leases in its Consolidated Balance Sheets:


	Classification in Consolidated Balance Sheets	December 31,
(in millions)		2024		2023
Operating lease assets	Operating lease assets	$	559	$	705
Operating lease liabilities:
Current operating lease liabilities	Accrued expenses and other current liabilities	$	122	$	152
Non-current operating lease liabilities	Operating lease liabilities	483		599
Total operating lease liabilities		$	605	$	751




Finance lease assets	Property and equipment, net	$	35	$	70
Finance lease liabilities:
Current finance lease liabilities	Accrued expenses and other current liabilities	$	26	$	34
Non-current finance lease liabilities	Other long-term liabilities	7		34
Total finance lease liabilities		$	33	$	68

The Company recognized the following costs related to its leases in its Consolidated Statements of Operations:


		Year Ended December 31,
(in millions)	Classification in Consolidated Statements of Operations	2024		2023		2022

Finance lease cost	Depreciation and amortization	$	37	$	28	$	9

Operating lease cost	General and administrative and Information technology	174		180		160
Variable lease cost	General and administrative and Information technology	78		82		45
Other		4		(4)		(5)
Total lease cost		$	293	$	286	$	209

As of December 31, 2024, the future lease payments for operating and finance leases are as follows:


(in millions)	Operating Leases		Finance Leases
2025	$	142	$	27
2026	99		7
2027	80		—
2028	60		—
2029	50		—
Thereafter	291		—
Total future lease payments	722		34
Less: Imputed interest	(117)		(1)
Total lease liabilities	$	605	$	33

Supplemental cash flow information related to operating and finance leases is as follows:


	Year Ended December 31,
(in millions)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	184	$	172	$	175

Financing cash flows from finance leases	36		31		9
Operating lease assets obtained in exchange for new operating lease liabilities	75		200		392
Finance lease assets obtained in exchange for new finance lease liabilities	2		44		50

"Operating lease amortization" presented in the operating activities section of the Consolidated Statements of Cash Flows reflects the portion of the operating lease cost from the amortization of the operating lease assets.

At December 31, 2024 and 2023 the weighted-average lease term and discount rate for operating and finance leases are as follows:


	December 31,
(in millions)	2024		2023
Operating leases:
Weighted-average remaining lease term	9.2 years		8.7 years
Weighted-average discount rate	3.9	%	4.0	%
Finance leases:
Weighted-average remaining lease term	1.2 years		2.1 years
Weighted-average discount rate	3.5	%	3.1	%

In 2022, the Company entered into a sale and leaseback transaction whereby the Company transferred ownership of Booking.com's headquarters building in the Netherlands and related land lease rights to a subsidiary of Deka Immobilien Investment GmbH for an aggregate consideration of approximately $601 million. The Company concurrently entered into an agreement to lease the building from the purchaser for an initial term of 16.5 years, with up to five renewal options of five years each. The initial annual base rent under the lease was $26 million, which will increase annually based on the consumer price index, subject to a specified ceiling. The lease commenced in December 2022 and has been classified by the Company as an operating lease. The Company recognized a gain of $240 million on the sale and leaseback transaction, which was recorded in "Other operating expenses" in the Consolidated Statement of Operations for the year ended December 31, 2022.

LEASES