Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 27, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-36691 | |
Entity Registrant Name | Booking Holdings Inc. | |
Entity Central Index Key | 0001075531 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-1528493 | |
Entity Address, Address Line One | 800 Connecticut Avenue | |
Entity Address, City or Town | Norwalk | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06854 | |
City Area Code | 203 | |
Local Phone Number | 299-8000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 36,933,652 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock par value $0.008 per share | |
Trading Symbol | BKNG | |
Security Exchange Name | NASDAQ | |
2.375% Senior Notes Due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.375% Senior Notes Due 2024 | |
Trading Symbol | BKNG 24 | |
Security Exchange Name | NASDAQ | |
0.100% Senior Notes Due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.100% Senior Notes Due 2025 | |
Trading Symbol | BKNG 25 | |
Security Exchange Name | NASDAQ | |
4.000% Senior Notes Due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.000% Senior Notes Due 2026 | |
Trading Symbol | BKNG 26 | |
Security Exchange Name | NASDAQ | |
1.800% Senior Notes Due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.800% Senior Notes Due 2027 | |
Trading Symbol | BKNG 27 | |
Security Exchange Name | NASDAQ | |
0.500% Senior Notes Due 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.500% Senior Notes Due 2028 | |
Trading Symbol | BKNG 28 | |
Security Exchange Name | NASDAQ | |
4.250% Senior Notes Due 2029 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.250% Senior Notes Due 2029 | |
Trading Symbol | BKNG 29 | |
Security Exchange Name | NASDAQ | |
4.500% Senior Notes Due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.500% Senior Notes Due 2031 | |
Trading Symbol | BKNG 31 | |
Security Exchange Name | NASDAQ | |
4.750% Senior Notes Due 2034 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.750% Senior Notes Due 2034 | |
Trading Symbol | BKNG 34 | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 14,140 | $ 12,221 |
Short-term investments (Available-for-sale debt securities: Amortized cost of $363 and $176, respectively) | 359 | 175 |
Accounts receivable, net (Allowance for expected credit losses of $93 and $117, respectively) | 2,048 | 2,229 |
Prepaid expenses, net | 655 | 477 |
Other current assets | 430 | 696 |
Total current assets | 17,632 | 15,798 |
Property and equipment, net | 699 | 669 |
Operating lease assets | 622 | 645 |
Intangible assets, net | 1,777 | 1,829 |
Goodwill | 2,816 | 2,807 |
Long-term investments (Includes available-for-sale debt securities: Amortized cost of $374 and $576, respectively) | 806 | 2,789 |
Other assets, net | 854 | 824 |
Total assets | 25,206 | 25,361 |
Current liabilities: | ||
Accounts payable | 2,132 | 2,507 |
Accrued expenses and other current liabilities | 3,584 | 3,244 |
Deferred merchant bookings | 4,500 | 2,223 |
Short-term debt | 854 | 500 |
Total current liabilities | 11,070 | 8,474 |
Deferred income taxes | 368 | 685 |
Operating lease liabilities | 539 | 552 |
Long-term U.S. transition tax liability | 711 | 711 |
Other long-term liabilities | 172 | 172 |
Long-term debt | 11,272 | 11,985 |
Total liabilities | 24,132 | 22,579 |
Commitments and contingencies (see Note 13) | ||
Stockholders' equity: | ||
Common stock, $0.008 par value, Authorized shares: 1,000,000,000 Issued shares: 64,008,335 and 63,780,528, respectively | 0 | 0 |
Treasury stock: 26,796,116 and 25,917,558 shares, respectively | (33,178) | (30,983) |
Additional paid-in capital | 6,712 | 6,491 |
Retained earnings | 27,807 | 27,541 |
Accumulated other comprehensive loss | (267) | (267) |
Total stockholders' equity | 1,074 | 2,782 |
Total liabilities and stockholders' equity | $ 25,206 | $ 25,361 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable, allowance for expected credit losses | $ 93 | $ 117 |
Common stock, par value (in dollars per share) | $ 0.008 | $ 0.008 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 64,008,335 | 63,780,528 |
Treasury stock, shares (in shares) | 26,796,116 | 25,917,558 |
Short-term Investments | ||
Available-for-sale debt securities, amortized cost | $ 363 | $ 176 |
Long-term Investments | ||
Available-for-sale debt securities, amortized cost | $ 374 | $ 576 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Total revenues | $ 3,778 | $ 2,695 |
Operating expenses: | ||
Marketing expenses | 1,517 | 1,147 |
Sales and other expenses | 542 | 339 |
Personnel, including stock-based compensation of $113 and $93, respectively | 722 | 596 |
General and administrative | 289 | 158 |
Information technology | 137 | 134 |
Depreciation and amortization | 120 | 111 |
Restructuring, disposal, and other exit activities | 1 | 36 |
Total operating expenses | 3,328 | 2,521 |
Operating income | 450 | 174 |
Interest expense | (194) | (68) |
Other income (expense), net | 47 | (955) |
Income (loss) before income taxes | 303 | (849) |
Income tax expense (benefit) | 37 | (149) |
Net income (loss) | $ 266 | $ (700) |
Net income (loss) applicable to common stockholders per basic common share (in dollars per share) | $ 7.07 | $ (17.10) |
Weighted-average number of basic common shares outstanding (in shares) | 37,621 | 40,921 |
Net income (loss) applicable to common stockholders per diluted common share (in dollars per share) | $ 7 | $ (17.10) |
Weighted-average number of diluted common shares outstanding (in shares) | 37,983 | 40,921 |
Agency revenues | ||
Total revenues | $ 1,782 | $ 1,450 |
Merchant revenues | ||
Total revenues | 1,752 | 1,050 |
Advertising and other revenues | ||
Total revenues | $ 244 | $ 195 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Stock-based compensation expense | $ 113 | $ 93 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net income (loss) | $ 266 | $ (700) |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments | (2) | (38) |
Net unrealized gains (losses) on available-for-sale securities | 2 | (1) |
Total other comprehensive income (loss), net of tax | 0 | (39) |
Comprehensive income (loss) | $ 266 | $ (739) |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Cumulative Effect of Adoption of Accounting Standards Update | Common Stock | Treasury Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect of Adoption of Accounting Standards Update | Retained Earnings | Retained Earnings Cumulative Effect of Adoption of Accounting Standards Update | Accumulated Other Comprehensive Loss |
Balance (in shares) at Dec. 31, 2021 | 63,584 | (22,518) | |||||||
Balance at Dec. 31, 2021 | $ 6,178 | $ (66) | $ 0 | $ (24,290) | $ 6,159 | $ (96) | $ 24,453 | $ 30 | $ (144) |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | (700) | (700) | |||||||
Foreign currency translation adjustments, net of tax | (38) | (38) | |||||||
Net unrealized gains on available-for-sale securities, net of tax | (1) | (1) | |||||||
Exercise of stock options and vesting of restricted stock units and performance share units (in shares) | 175 | ||||||||
Exercise of stock options and vesting of restricted stock units and performance share units | $ 3 | $ 0 | 3 | ||||||
Repurchase of common stock (in shares) | (487) | (487) | |||||||
Repurchase of common stock | $ (1,100) | $ (1,100) | |||||||
Stock-based compensation and other stock-based payments | 97 | 97 | |||||||
Balance (in shares) at Mar. 31, 2022 | 63,759 | (23,005) | |||||||
Balance at Mar. 31, 2022 | 4,373 | $ 0 | $ (25,390) | 6,163 | 23,783 | (183) | |||
Balance (in shares) at Dec. 31, 2022 | 63,781 | (25,918) | |||||||
Balance at Dec. 31, 2022 | 2,782 | $ 0 | $ (30,983) | 6,491 | 27,541 | (267) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 266 | 266 | |||||||
Foreign currency translation adjustments, net of tax | (2) | (2) | |||||||
Net unrealized gains on available-for-sale securities, net of tax | 2 | 2 | |||||||
Exercise of stock options and vesting of restricted stock units and performance share units (in shares) | 227 | ||||||||
Exercise of stock options and vesting of restricted stock units and performance share units | $ 105 | $ 0 | 105 | ||||||
Repurchase of common stock (in shares) | (878) | (878) | |||||||
Repurchase of common stock | $ (2,195) | $ 0 | $ (2,195) | ||||||
Stock-based compensation and other stock-based payments | 116 | 116 | |||||||
Balance (in shares) at Mar. 31, 2023 | 64,008 | (26,796) | |||||||
Balance at Mar. 31, 2023 | $ 1,074 | $ 0 | $ (33,178) | $ 6,712 | $ 27,807 | $ (267) |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
OPERATING ACTIVITIES: | |||
Net income (loss) | $ 266 | $ (700) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 120 | 111 | |
Provision for expected credit losses and chargebacks | 54 | 55 | |
Deferred income tax benefit | (340) | (216) | |
Net losses on equity securities | [1] | 133 | 987 |
Stock-based compensation expense and other stock-based payments | 113 | 93 | |
Operating lease amortization | 41 | 39 | |
Unrealized foreign currency transaction losses (gains) related to Euro-denominated debt | 26 | (30) | |
Other | 0 | 30 | |
Changes in assets and liabilities: | |||
Accounts receivable | 158 | (326) | |
Prepaid expenses and other current assets | 118 | (56) | |
Deferred merchant bookings and other current liabilities | 2,038 | 1,868 | |
Long-term assets and liabilities | 162 | (160) | |
Net cash provided by operating activities | 2,889 | 1,695 | |
INVESTING ACTIVITIES: | |||
Proceeds from sale and maturity of investments | 1,683 | 0 | |
Additions to property and equipment | (88) | (109) | |
Other investing activities | (9) | (12) | |
Net cash provided by (used in) investing activities | 1,586 | (121) | |
FINANCING ACTIVITIES: | |||
Payment on maturity of debt | (500) | (1,102) | |
Payments for repurchase of common stock | (2,150) | (1,049) | |
Proceeds from exercise of stock options | 105 | 3 | |
Other financing activities | (17) | 9 | |
Net cash used in financing activities | (2,562) | (2,139) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | 8 | (9) | |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 1,921 | (574) | |
Total cash and cash equivalents and restricted cash and cash equivalents, beginning of period | 12,251 | 11,152 | |
Total cash and cash equivalents and restricted cash and cash equivalents, end of period | 14,172 | 10,578 | |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash paid during the period for income taxes | 311 | 98 | |
Cash paid during the period for interest | $ 142 | $ 72 | |
[1]Includes losses of $149 million related to the sale of Meituan. See Note 5 for additional information related to the net losses on equity securities. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Management of Booking Holdings Inc. (the "Company") is responsible for the Unaudited Consolidated Financial Statements included in this document. The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operating results. The Company prepared the Unaudited Consolidated Financial Statements following the requirements of the Securities and Exchange Commission for interim reporting. As permitted under those rules, the Company condensed or omitted certain footnotes or other financial information that are normally required by U.S. GAAP for annual financial statements. These Unaudited Consolidated Financial Statements should be read in combination with the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The Unaudited Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, including acquired businesses from the dates of acquisition. All intercompany accounts and transactions have been eliminated in consolidation. The functional currency of the Company's subsidiaries is generally the respective local currency. For international operations, assets and liabilities are translated into U.S. Dollars at the rate of exchange existing at the balance sheet date. Income statement amounts are translated at monthly average exchange rates applicable for the period. Translation gains and losses are included as a component of "Accumulated other comprehensive loss" in the accompanying Consolidated Balance Sheets. Foreign currency transaction gains and losses are included in "Other income (expense), net" in the Unaudited Consolidated Statements of Operations. Revenues, expenses, assets, and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for any subsequent quarter or the full year. Impact of COVID-19 Even though there have been improvements in the economic and operating conditions for the Company's business since the outset of the COVID-19 pandemic, the Company cannot predict the long-term effects of the pandemic on its business or the travel and restaurant industries as a whole. See Note 2 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the impact of the COVID-19 pandemic. Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements See "Recent Accounting Pronouncements Adopted" and "Other Recent Accounting Pronouncements" in Note 2 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregation of Revenue Geographic Information The Company's revenue from its businesses outside of the U.S. consists of the results of Booking.com, Agoda, and Rentalcars.com in their entirety and the results of the KAYAK and OpenTable businesses located outside of the U.S. This classification is independent of where the consumer resides, where the consumer is physically located while using the Company's services, or the location of the travel service provider or restaurant. For example, a reservation made through Booking.com (which is domiciled in the Netherlands) at a hotel in New York by a consumer in the United States is part of the results of the Company's businesses outside of the U.S. The Company's geographic information on revenues is as follows (in millions): Outside of the U.S. United States The Netherlands Other Total Company Total revenues for the three months ended March 31, 2023 $ 523 $ 2,859 $ 396 $ 3,778 2022 $ 475 $ 1,969 $ 251 $ 2,695 Revenue by Type of Service Approximately 88% and 86% of the Company's revenues for the three months ended March 31, 2023 and 2022, respectively, relate to online accommodation reservation services. Revenue from all other sources of online travel reservation services and advertising and other revenues each individually represent less than 10% of the Company's total revenue for each period. Incentive Programs At March 31, 2023 and December 31, 2022, liabilities of $153 million and $143 million, respectively, were included in "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets for incentives granted to consumers, including referral bonuses, rebates, credits, discounts, and loyalty programs. Deferred Merchant Bookings Cash payments received from travelers in advance of the Company completing its performance obligations are included in "Deferred merchant bookings" in the Company's Consolidated Balance Sheets and are comprised principally of amounts estimated to be payable to travel service providers as well as the Company's estimated future revenue for its commission or margin and fees. The amounts are mostly subject to refunds for cancellations. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company maintains equity incentive plans that include broad-based grants of restricted stock units, performance share units granted to officers and certain other employees, and stock options granted to certain employees. Restricted stock units and performance share units granted by the Company during the three months ended March 31, 2023 had an aggregate grant-date fair value of $555 million. Restricted stock units and performance share units that vested during the three months ended March 31, 2023 had an aggregate fair value at vesting of $401 million. At March 31, 2023, there was $1.0 billion of estimated total future stock-based compensation expense related to unvested restricted stock units and performance share units to be recognized over a weighted-average period of 2.3 years. The following table summarizes the activity in restricted stock units and performance share units for employees and non-employee directors during the three months ended March 31, 2023: Restricted Stock Units Performance Share Units Shares Weighted-average Grant-date Fair Value Shares Weighted-average Grant-date Fair Value Unvested at December 31, 2022 (1) 280,460 $2,070 143,702 $2,294 Granted (2) 158,615 $2,620 51,866 $2,679 Vested (123,150) $1,980 (30,118) $2,327 Performance shares adjustment (3) — — 33,424 $2,412 Forfeited (4,457) $2,225 (5,225) $2,241 Unvested at March 31, 2023 311,468 $2,384 193,649 $2,414 (1) Excludes 14,087 performance share units awarded during the years ended December 31, 2022 and 2021 for which the grant date under Accounting Standards Codification ("ASC") 718, Compensation - Stock Compensation , was not established as of December 31, 2022. Among other conditions, for the grant date to be established, a mutual understanding is required to be reached between the Company and the employee of the key terms and conditions of the award, including the performance targets. The performance targets for each of the annual performance periods under the award are set at the beginning of the respective year. (2) Includes 9,688 performance share units awarded during the years ended December 31, 2022 and 2021 for which the grant date under ASC 718 was established. (3) Probable outcome for performance-based awards is updated based upon changes in actual and forecasted operating results or expected achievement of performance goals, as applicable, and the impact of modifications. The following table summarizes the activity in stock options during the three months ended March 31, 2023: Employee Stock Options Number of Shares Weighted-average Exercise Price Aggregate Weighted-average Remaining Contractual Term Balance, December 31, 2022 120,813 $1,408 $ 73 7.3 Exercised (74,545) $1,411 Forfeited (62) $1,411 Balance, March 31, 2023 46,206 $1,404 $ 58 7.0 Exercisable at March 31, 2023 46,206 $1,404 $ 58 7.0 The aggregate intrinsic value of employee stock options exercised during the three months ended March 31, 2023 was $89 million. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE A reconciliation of the weighted-average number of shares outstanding used in calculating diluted net income (loss) per share is as follows (in thousands): Three Months Ended 2023 2022 Weighted-average number of basic common shares outstanding 37,621 40,921 Weighted-average dilutive stock options, restricted stock units and performance share units 242 — Assumed conversion of convertible senior notes 120 — Weighted-average number of diluted common and common equivalent shares outstanding 37,983 40,921 For the three months ended March 31, 2023 and 2022, 58,079 and 269,653 potential common shares, respectively, related to stock options, restricted stock units, performance share units, and convertible senior notes, as applicable, were excluded from the calculation of dilu ted net income (loss) per share because their effect would have been anti-dilutive for the respective perio d. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The following table summarizes the Company's investments by major security type at March 31, 2023 (in millions): Cost Gross Gross Carrying Value Short-term investments: Debt securities: International government securities $ 38 $ — $ — $ 38 U.S. government securities (1) 145 — (1) 144 Corporate debt securities 180 — (3) 177 Total short-term investments $ 363 $ — $ (4) $ 359 Long-term investments: Debt securities: International government securities $ 41 $ — $ (1) $ 40 U.S. government securities 113 — (2) 111 Corporate debt securities 220 — (3) 217 Total debt securities 374 — (6) 368 Equity securities: Equity securities with readily determinable fair values 715 — (430) 285 Equity securities of private companies 78 259 (184) 153 Total equity securities 793 259 (614) 438 Total long-term investments $ 1,167 $ 259 $ (620) $ 806 (1) Includes investments in U.S. municipal bonds. The following table summarizes the Company's investments by major security type at December 31, 2022 (in millions): Cost Gross Gross Unrealized Losses/Downward Adjustments Carrying Value Short-term investments: Debt securities: International government securities $ 13 $ — $ — $ 13 U.S. government securities (1) 131 — (1) 130 Corporate debt securities 32 — — 32 Total short-term investments $ 176 $ — $ (1) $ 175 Long-term investments: Debt securities: International government securities $ 63 $ — $ (1) $ 62 U.S. government securities (1) 147 — (3) 144 Corporate debt securities 366 — (7) 359 Total debt securities 576 — (11) 565 Equity securities: Equity securities with readily determinable fair values 1,165 1,352 (446) 2,071 Equity securities of private companies 78 259 (184) 153 Total equity securities 1,243 1,611 (630) 2,224 Total long-term investments $ 1,819 $ 1,611 $ (641) $ 2,789 (1) Includes investments in U.S. municipal bonds. The Company has classified its investments in international government securities, U.S. government securities, and corporate debt securities as available-for-sale debt securities. The aggregate unrealized gains and losses on the available-for-sale debt securities, net of tax, are included in "Accumulated other comprehensive loss" in the Consolidated Balance Sheets. At March 31, 2023, the Company's investments in debt securities had an average credit quality of A+/A1/A+ and the Company's long-term investments in available-for-sale debt securities had maturity dates between 1 and 2 years. The Company invests in international government securities with high credit quality. At March 31, 2023, investments in international government securities principally included debt securities issued by the governments of Germany, France, Norway, Sweden, and Canada. Equity securities with readily determinable fair values at March 31, 2023 include the Company's investments in DiDi Global Inc. ("DiDi") and Grab Holdings Limited ("Grab"), with fair values of $150 million and $127 million, respectively. At December 31, 2022, equity securities with readily determinable fair values included the Company's investments in DiDi, Grab, and Meituan, with fair values of $125 million, $136 million, and $1.8 billion, respectively. Equity securities with readily determinable fair values are included in "Long-term investments" in the Consolidated Balance Sheets. Net unrealized gains (losses) related to these investments included in "Other income (expense), net" in the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022 were as follows (in millions): Three Months Ended 2023 2022 DiDi $ 25 $ (97) Grab (9) (153) Meituan — (728) During the three months ended March 31, 2023, the Company sold its entire investment in Meituan for $1.7 billion, resulting in a net loss of $149 million included in "Other income (expense), net" in the Unaudited Consolidated Statement of Operations for the three months ended March 31, 2023. The cost basis of the Company's investment in Meituan was $450 million. The Company's investments in equity securities of private companies at March 31, 2023 and December 31, 2022, includes the investment in Yanolja Co., Ltd. ("Yanolja") which had a carrying value of $122 million at March 31, 2023 and December 31, 2022. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS ` There are three levels of inputs to valuation techniques used to measure fair value: Level 1: Quoted prices in active markets that are accessible by the Company at the measurement date for identical assets and liabilities. Level 2: Inputs that are observable, either directly or indirectly. Such prices may be based upon quoted prices for identical or comparable securities in active markets or inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. Financial assets and liabilities measured at fair value on a recurring basis at March 31, 2023 are classified in the categories described in the table below (in millions): Level 1 Level 2 Total Recurring fair value measurements (1) ASSETS: Cash equivalents and restricted cash equivalents: Money market fund investments $ 13,345 $ — $ 13,345 Certificates of deposit 62 — 62 Short-term investments: International government securities — 38 38 U.S. government securities — 144 144 Corporate debt securities — 177 177 Long-term investments: International government securities — 40 40 U.S. government securities — 111 111 Corporate debt securities — 217 217 Equity securities 285 — 285 Derivatives: Foreign currency exchange derivatives — 43 43 Total assets at fair value $ 13,692 $ 770 $ 14,462 LIABILITIES: Foreign currency exchange derivatives $ — $ 31 $ 31 (1) The Company did not have any Level 3 fair value measurements at March 31, 2023. Financial assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and nonrecurring fair value measurements are classified in the categories described in the table below (in millions): Level 1 Level 2 Level 3 (1) Total Recurring fair value measurements ASSETS: Cash equivalents and restricted cash equivalents: Money market fund investments $ 11,483 $ — $ — $ 11,483 Certificates of deposit 60 — — 60 Short-term investments: International government securities — 13 — 13 U.S. government securities — 130 — 130 Corporate debt securities — 32 — 32 Long-term investments: International government securities — 62 — 62 U.S. government securities — 144 — 144 Corporate debt securities — 359 — 359 Equity securities 2,071 — — 2,071 Derivatives: Foreign currency exchange derivatives — 65 — 65 Total assets at fair value $ 13,614 $ 805 $ — $ 14,419 LIABILITIES: Foreign currency exchange derivatives $ — $ 26 $ — $ 26 Nonrecurring fair value measurements Investment in equity securities of a private company (1) $ — $ — $ 122 $ 122 (1) During the year ended December 31, 2022, the investment in Yanolja was written down to its estimated fair value. Investments See Note 5 for additional information related to the Company's investments. Derivatives The Company reports the fair values of its derivative assets and liabilities on a gross basis in the Consolidated Balance Sheets in "Other current assets" and "Accrued expenses and other current liabilities," respectively. As of March 31, 2023 and December 31, 2022, the Company did not designate any derivatives as hedges for accounting purposes. The table below provides estimated fair values and notional amounts of foreign currency exchange derivatives outstanding at March 31, 2023 and December 31, 2022 (in millions). The notional amount of a foreign currency forward contract is the contracted amount of foreign currency to be exchanged and is not recorded in the balance sheets. March 31, 2023 December 31, 2022 Estimated fair value of derivative assets $ 43 $ 65 Estimated fair value of derivative liabilities $ 31 $ 26 Notional amount: Foreign currency purchases $ 4,300 $ 2,870 Foreign currency sales $ 3,289 $ 2,682 The effect of foreign currency exchange derivatives recorded in "Other income (expense), net" in the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022 is as follows (in millions): Three Months Ended 2023 2022 Losses on foreign currency exchange derivatives $ 17 $ 16 Other Financial Assets and Liabilities At March 31, 2023 and December 31, 2022, the Company's cash consisted of bank deposits. Cash equivalents principally include money market fund investments and certificates of deposit and their carrying value generally approximates the fair value as they are readily convertible to known amounts of cash. Other financial assets and liabilities, including restricted cash, accounts payable, accrued expenses, and deferred merchant bookings, are carried at cost which approximates their fair values because of the short-term nature of these items. Accounts receivable and other financial assets measured at amortized cost are carried at cost less an allowance for expected credit losses to present the net amount expected to be collected (see Note 7). See Note 9 for the estimated fair value of the Company's outstanding senior notes, including the estimated fair value of the Company's convertible senior notes. |
ACCOUNTS RECEIVABLE AND OTHER F
ACCOUNTS RECEIVABLE AND OTHER FINANCIAL ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE AND OTHER FINANCIAL ASSETS | ACCOUNTS RECEIVABLE AND OTHER FINANCIAL ASSETS Accounts receivable in the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022 includes receivables from customers of $1.4 billion and $1.5 billion, respectively, and receivables from payment processors and networks of $601 million and $730 million, respectively. The remaining balance principally relates to receivables from marketing affiliates. In addition, the Company had prepayments to certain accommodation travel service provider customers of $24 million and $29 million included in "Prepaid expenses, net" and $7 million and $5 million included in "Other assets, net" in the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, respectively. The amounts mentioned above are stated on a gross basis, before deducting the allowance for expected credit losses. Significant judgments and assumptions are required to estimate the allowance for expected credit losses and such assumptions may change in future periods, particularly the assumptions related to the business prospects and financial condition of customers and marketing affiliates, also taking into account factors such as the macroeconomic conditions, inflationary pressures, potential recession, and the Company's ability to collect the receivable or recover the prepayment. The following table summarizes the activity of the allowance for expected credit losses on receivables (in millions): Three Months Ended 2023 2022 Balance, beginning of year $ 117 $ 101 Provision charged to earnings 20 30 Write-offs and adjustments (45) (28) Foreign currency translation adjustments 1 (1) Balance, end of period $ 93 $ 102 In addition to the allowance for expected credit losses on receivables, the Company recorded an allowance for expected credit losses on prepayments to certain accommodation travel service provider customers, which are included in "Prepaid expenses, net" and "Other assets, net" in the Consolidated Balance Sheets. The following table summarizes the activity of the allowance for expected credit losses on prepayments to customers (in millions): Three Months Ended 2023 2022 Balance, beginning of year $ 23 $ 47 Provision charged to expense — (3) Write-offs and adjustments (2) (1) Balance, end of period $ 21 $ 43 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL The Company's intangible assets at March 31, 2023 and December 31, 2022 consist of the following (in millions): March 31, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amortization Period Supply and distribution agreements $ 1,393 $ (686) $ 707 $ 1,386 $ (658) $ 728 3 - 20 years Technology 287 (194) 93 287 (185) 102 2 - 7 years Trade names 1,809 (837) 972 1,806 (812) 994 3 - 20 years Other intangible assets 44 (39) 5 43 (38) 5 Up to 20 years Total intangible assets $ 3,533 $ (1,756) $ 1,777 $ 3,522 $ (1,693) $ 1,829 Intangible assets are amortized on a straight-line basis. Amortization expense was $55 million and $56 million for the three months ended March 31, 2023 and 2022, respectively. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Revolving Credit Facility In August 2019, the Company entered into a $2.0 billion five-year unsecured revolving credit facility with a group of lenders. The revolving credit facility contains a maximum leverage ratio covenant, compliance with which is a condition to the Company's ability to borrow thereunder. A 2020 amendment to the credit facility increased the permitted maximum leverage ratio through and including the three months ended March 31, 2023. Under the amendment, the Company may not declare or make any cash distribution or repurchase any of its shares (with certain exceptions including in connection with tax withholding related to shares issued to employees) unless it is in compliance on a pro forma basis with the maximum leverage ratio covenant then in effect. Such restriction ends upon delivery of financial statements required for the three months ending June 30, 2023, or the Company has the ability to terminate this restriction earlier if it demonstrates compliance with the original maximum leverage ratio covenant in the revolving credit facility. At March 31, 2023 and December 31, 2022, there were no borrowings outstanding and $16 million and $14 million, respectively, of letters of credit issued under the revolving credit facility. See Note 12 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for additional information on the revolving credit facility. Outstanding Debt Outstanding debt at March 31, 2023 consists of the following (in millions): March 31, 2023 Outstanding Principal Amount Unamortized Debt Carrying Value Current liabilities: 0.75% Convertible Senior Notes due May 2025 $ 863 $ (9) $ 854 Total current liabilities $ 863 $ (9) $ 854 Long-term debt: 2.375% (€1 Billion) Senior Notes due September 2024 $ 1,086 $ (2) $ 1,084 3.65% Senior Notes due March 2025 500 (1) 499 0.1% (€950 Million) Senior Notes due March 2025 1,032 (3) 1,029 3.6% Senior Notes due June 2026 1,000 (3) 997 4.0% (€750 Million) Senior Notes due November 2026 815 (4) 811 1.8% (€1 Billion) Senior Notes due March 2027 1,086 (2) 1,084 3.55% Senior Notes due March 2028 500 (2) 498 0.5% (€750 Million) Senior Notes due March 2028 815 (4) 811 4.25% (€750 Million) Senior Notes due May 2029 815 (6) 809 4.625% Senior Notes due April 2030 1,500 (8) 1,492 4.5% (€1 Billion) Senior Notes due November 2031 1,086 (6) 1,080 4.75% (€1 Billion) Senior Notes due November 2034 1,086 (8) 1,078 Total long-term debt $ 11,321 $ (49) $ 11,272 Outstanding debt at December 31, 2022 consists of the following (in millions): December 31, 2022 Outstanding Unamortized Debt Carrying Value Current liabilities: 2.75% Senior Notes due March 2023 $ 500 $ — $ 500 Total current liabilities $ 500 $ — $ 500 Long-term debt: 2.375% (€1 Billion) Senior Notes due September 2024 $ 1,067 $ (3) $ 1,064 3.65% Senior Notes due March 2025 500 (1) 499 0.1% (€950 Million) Senior Notes due March 2025 1,014 (3) 1,011 0.75% Convertible Senior Notes due May 2025 863 (9) 854 3.6% Senior Notes due June 2026 1,000 (3) 997 4.0% (€750 Million) Senior Notes due November 2026 800 (3) 797 1.8% (€1 Billion) Senior Notes due March 2027 1,067 (2) 1,065 3.55% Senior Notes due March 2028 500 (2) 498 0.5% (€750 Million) Senior Notes due March 2028 800 (3) 797 4.25% (€750 Million) Senior Notes due May 2029 800 (6) 794 4.625% Senior Notes due April 2030 1,500 (9) 1,491 4.5% (€1 Billion) Senior Notes due November 2031 1,067 (7) 1,060 4.75% (€1 Billion) Senior Notes due November 2034 1,067 (9) 1,058 Total long-term debt $ 12,045 $ (60) $ 11,985 Fair Value of Debt At March 31, 2023 and December 31, 2022, the estimated fair value of the outstanding debt was approximately $12.5 billion and $12.4 billion, respectively, and was considered a "Level 2" fair value measurement (see Note 6). Fair value was estimated based upon actual trades at the end of the reporting period or the most recent trade available as well as the Company's stock price at the end of the reporting period. The estimated fair value of the Company's debt in excess of the outstanding principal amount at March 31, 2023 primarily relates to the conversion premium on the convertible senior notes due in May 2025. As of December 31, 2022, the outstanding principal amount of the Company's debt exceeded the fair value of debt mainly due to the increase in interest rates partially offset by the conversion premium on the convertible senior notes due in May 2025. Convertible Senior Notes In April 2020, the Company issued $863 million aggregate principal amount of convertible senior notes due in May 2025 with an interest rate of 0.75% (the "May 2025 Notes"). The Company paid $19 million in debt issuance costs during the year ended December 31, 2020 related to the issuance. The May 2025 Notes are convertible, subject to certain conditions, into the Company's common stock at a conversion price of $1,886.44 per share. The May 2025 Notes are convertible, at the option of the holder, prior to November 1, 2024, upon the occurrence of specific events, including but not limited to a change in control, or if the closing sales price of the Company's common stock for at least 20 trading days in the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is more than 130% of the conversion price in effect for the notes on the last trading day of the immediately preceding quarter. In the event that all or substantially all of the Company's common stock is acquired on or prior to the maturity of the May 2025 Notes in a transaction in which the consideration paid to holders of the Company's common stock consists of all or substantially all cash, the Company would be required to make additional payments in the form of additional shares of common stock to the holders of the May 2025 Notes in an aggregate value ranging from $0 to $235 million depending upon the date of the transaction and the then current stock price of the Company. Starting on November 1, 2024, holders will have the right to convert all or any portion of the May 2025 Notes, regardless of the Company's stock price. The May 2025 Notes may not be redeemed by the Company prior to maturity. The holders may require the Company to repurchase the May 2025 Notes for cash in certain circumstances. Interest on the May 2025 Notes is payable on May 1 and November 1 of each year. If the note holders exercise their option to convert, the Company delivers cash to repay the principal amount of the notes and delivers shares of common stock or cash, at its option, to satisfy the conversion value in excess of the principal amount. At March 31, 2023 and December 31, 2022, the estimated fair value of the May 2025 Notes was $1.3 billion and $1.2 billion, respectively, and was considered a "Level 2" fair value measurement (see Note 6). For the three months ended March 31, 2023 and 2022, the weighted-average effective interest rate related to the convertible senior notes was 1.2%. From April 1, 2023, based on the closing sales prices of the Company's common stock for the prescribed measurement period during the three months ended March 31, 2023, the May 2025 Notes are convertible at the option of the holder and have been classified as "Short-term debt" in the Consolidated Balance Sheet as of March 31, 2023. Other Senior Notes In March 2023, the Company repaid $500 million on the maturity of the Senior Notes due March 2023. In March 2022, the Company repaid $1.1 billion on the maturity of Senior Notes due March 2022. In addition, the Company paid the applicable accrued and unpaid interest relating to each of these senior notes. Other senior notes had a total carrying value of $11.3 billion and $11.6 billion at March 31, 2023 and December 31, 2022, respectively. Debt discount and debt issuance costs are amortized using the effective interest rate method over the period from the origination date through the stated maturity date. The following table summarizes the interest expenses related to other senior notes (in millions): For the Three Months Ended March 31, 2023 2022 Coupon interest expense $ 92 $ 58 Amortization of debt discount and debt issuance costs 3 3 Total interest expense $ 95 $ 61 The Company designates certain portions of the aggregate principal value of the Euro-denominated debt as a hedge of the foreign currency exposure of the net investment in certain Euro functional currency subsidiaries. For the three months ended March 31, 2023 and 2022, the carrying value of the portion of Euro-denominated debt, designated as a net investment hedge, ranged from $5.9 billion to $6.4 billion and from $5.0 billion to $5.6 billion, respectively. |
TREASURY STOCK
TREASURY STOCK | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
TREASURY STOCK | TREASURY STOCK At December 31, 2022, the Company had a total remaining authorization of $3.9 billion related to a program authorized by the Company's Board of Directors ("the Board") in 2019 to repurchase up to $15.0 billion of the Company's common stock. In the first quarter of 2023, the Board authorized an additional program to repurchase up to $20.0 billion of the Company's common stock. At March 31, 2023, the Company had a total remaining authorization of $21.9 billion to repurchase its common stock. The Company expects to complete repurchases under the two authorizations within the next four years, assuming the Company remains in compliance with the applicable maximum leverage ratio covenant under the credit facility amendment (see Note 9). Additionally, the Board has given the Company the general authorization to repurchase shares of its common stock withheld to satisfy employee withholding tax obligations related to stock-based compensation. The following table summarizes the Company's stock repurchase activities during the three months ended March 31, 2023 and 2022 (in millions, except for shares, which are reflected in thousands): Three Months Ended March 31, 2023 2022 Shares Amount Shares Amount Authorized stock repurchase programs 812 $ 2,022 414 $ 948 General authorization for shares withheld on stock award vesting 66 173 73 152 Total 878 $ 2,195 487 $ 1,100 Stock repurchases of $100 million in March 2023 were settled in April 2023. For the three months ended March 31, 2023 and 2022, the Company remitted employee withholding taxes of $158 million and $131 million, respectively, to the tax authorities, which is different from the aggregate cost of the shares withheld for taxes for each period due to the timing in remitting the taxes. The cash remitted to the tax authorities is included in |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense consists of U.S. and international income taxes, determined using an estimate of the Company's annual effective tax rate, which is based upon the applicable tax rates and tax laws of the countries in which the income is generated. A deferred tax liability is recognized for all taxable temporary differences, and a deferred tax asset is recognized for all deductible temporary differences and operating loss and tax credit carryforwards. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company considers many factors when assessing the likelihood of future realization of the deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future income, tax planning strategies, the carryforward periods available for tax reporting purposes, and other relevant factors. The Company's effective tax rates for the three months ended March 31, 2023 and 2022 were 12.4% and 17.6%, respectively. The Company's 2023 effective tax rate differs from the U.S. federal statutory tax rate of 21%, primarily due to the benefit of the Netherlands Innovation Box Tax (discussed below), partially offset by higher international tax rates and certain non-deductible expenses. The Company's 2022 effective tax rate differed from the U.S. federal statutory tax rate of 21%, primarily due to higher international tax rates, valuation allowance related to certain unrealized losses on equity securities, and certain non-deductible expenses, partially offset by the benefit of the Netherlands Innovation Box Tax. The Company's effective tax rate for the three months ended March 31, 2023 was lower than the three months ended March 31, 2022, primarily due to a lower valuation allowance related to certain unrealized losses on equity securities, lower international tax rates, lower U.S. federal and state tax associated with the Company's international earnings, and certain lower non-deductible expenses, partially offset by a decrease in the benefit of the Netherlands Innovation Box Tax. During the three months ended March 31, 2023 and 2022, a majority of the Company's income was reported in the Netherlands, where Booking.com is based. According to Dutch corporate income tax law, income generated from qualifying innovative activities is taxed at a rate of 9% ("Innovation Box Tax") rather than the Dutch statutory rate of 25.8%. A portion of Booking.com's earnings during the three months ended March 31, 2023 and 2022 qualified for Innovation Box Tax treatment, which had a beneficial impact on the Company's effective tax rates for these periods. The aggregate amount of unrecognized tax benefits for all matters at March 31, 2023 and December 31, 2022 was $58 million and $184 million, respectively. The unrecognized tax benefits, if recognized, would impact the effective tax rate. As of March 31, 2023 and December 31, 2022, total gross interest and penalties accrued was $7 million and $43 million, respectively. The decrease in unrecognized tax benefits, as well as gross interest and penalties, primarily relates to the settlement by Booking.com of certain French tax matters. The majority of unrecognized tax benefits are included in "Other assets, net" and "Accrued expenses and other current liabilities" in the Consolidated Balance Sheet as of March 31, 2023. It is reasonably possible that the balance of gross unrecognized tax benefits could change over the next 12 months. |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT | 3 Months Ended |
Mar. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT The tables below present the changes in the balances of accumulated other comprehensive loss ("AOCI") by component for the three months ended March 31, 2023 and 2022 (in millions): Foreign currency translation adjustments Net unrealized gains (losses) on available-for-sale securities Total AOCI, net of tax Foreign currency translation Net investment hedges (1) Total, net of tax Before tax Tax Total, net of tax Before tax Tax (2) Before tax Tax Three Months Ended March 31, 2023 Balance, December 31, 2022 $ (579) $ 93 $ 310 $ (81) $ (257) $ (13) $ 3 $ (10) $ (267) Other comprehensive income (loss) ("OCI") for the period 105 (21) (113) 27 (2) 3 (1) 2 — Balance, March 31, 2023 $ (474) $ 72 $ 197 $ (54) $ (259) $ (10) $ 2 $ (8) $ (267) Three Months Ended March 31, 2022 Balance, December 31, 2021 $ (276) $ 67 $ 91 $ (28) $ (146) $ 3 $ (1) $ 2 $ (144) OCI for the period (135) 7 117 (27) (38) (1) — (1) (39) Balance, March 31, 2022 $ (411) $ 74 $ 208 $ (55) $ (184) $ 2 $ (1) $ 1 $ (183) (1) Net investment hedges balance at March 31, 2023 and earlier dates presented above, includes accumulated net losses from fair value adjustments of $35 million ($53 million before tax) associated with previously settled derivatives that were designated as net investment hedges. The remaining balances relate to foreign currency transaction gains (losses) and related tax benefits (expenses) associated with the Company's Euro-denominated debt that is designated as a hedge of the foreign currency exposure of the net investment in certain Euro functional currency subsidiaries (see Note 9). (2) The tax benefits relate to foreign currency translation adjustments to the Company's one-time deemed repatriation tax liability recorded at December 31, 2017 and foreign earnings for periods after December 31, 2017 that are subject to U.S. federal and state income tax, resulting from the enactment of the U.S. Tax Cuts and Jobs Act (the "Tax Act"). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Competition and Consumer Protection Reviews At times, online platforms, including online travel platforms, have been the subject of investigations or inquiries by various national competition authorities ("NCAs") or other governmental authorities regarding competition law matters, consumer protection issues, or other areas of concern. The Company is and has been involved in many such investigations. For example, the Company has been and continues to be involved in investigations related to whether Booking.com's contractual parity arrangements with accommodation providers, sometimes also referred to as "most favored nation" or "MFN" provisions, are anti-competitive because they require accommodation providers to provide Booking.com with room rates, conditions or availability that are at least as favorable as those offered to other online travel companies or through the accommodation provider's website. To resolve and close certain of the investigations, the Company has from time to time made commitments to the investigating authorities regarding future business practices or activities, such as agreeing to narrow the scope of its parity clauses, in order to resolve parity-related investigations. These investigations have resulted in fines and the Company could incur additional fines in the future. In addition, in September 2017, the Swiss Price Surveillance Office opened an investigation into the level of commissions of Booking.com in Switzerland and the investigation is ongoing. If there is an adverse outcome and Booking.com is unsuccessful in any appeal, Booking.com could be required to reduce its commissions in Switzerland. In October 2022, the Comisión Nacional de los Mercados y la Competencia in Spain opened an investigation into whether certain practices by Booking.com may produce adverse effects for hotels and other online travel agencies. If the investigation finds that certain Booking.com practices violated Spanish competition laws, Booking.com may face fines and/or be required to make other commitments. Some authorities are reviewing the online hotel booking sector more generally through market inquiries, and the Company cannot predict the outcome of such inquiries or any resulting impact on its business, results of operations, cash flows, or financial condition. The Company is and has been involved in investigations or inquiries by NCAs or other governmental authorities involving consumer protection matters, including in the United Kingdom and the European Union. The Company has previously made certain voluntary commitments to competition authorities to resolve investigations or inquiries that have included showing prices inclusive of all mandatory taxes and charges, providing information about the effect of money earned on search result rankings on or before the search results page and making certain adjustments to how discounts and statements concerning popularity or availability are shown to consumers. In the future, it is possible new jurisdictions could engage the Company in discussions to implement changes to its business in those countries. The Company is unable to predict what, if any, effect any future similar commitments will have on its business, industry practices or online commerce more generally. To the extent that any other investigations or inquiries result in additional commitments, fines, damages or other remedies, the Company's business, financial condition, and results of operations could be harmed. The Company is unable to predict how any current or future investigations or litigation may be resolved or the long-term impact of any such resolution on its business. For example, competition and consumer-law-related investigations, legislation, or issues could result in private litigation and the Company is currently involved in such litigation. More immediate results could include, among other things, the imposition of fines, payment of damages, commitments to change certain business practices, or reputational damage, any of which could harm the Company's business, results of operations, brands, or competitive position. Tax Matters Between December 2018 and August 2021, the Italian tax authorities issued assessments on Booking.com's Italian subsidiary totaling approximately 251 million Euros ($273 million) for the tax years 2013-2018, asserting that its transfer pricing policies were inadequate. The Company believes Booking.com has been and continues to be in compliance with Italian tax law. In September 2020, the Italian tax authorities approved the opening of a MAP between Italy and the Netherlands for the 2013 tax year and the Italian tax authorities subsequently approved the inclusion of the tax years 2014-2018 in the MAP. Based on the Company's expectation that the Italian assessments for 2013-2018, and any transfer pricing assessments received for subsequent open years will be settled through the MAP process, and after considering potential resolution amounts, 18 million Euros ($19 million) have been reflected in unrecognized tax benefits, the majority of which are reflected in "Other assets, net" in the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022. In December 2019, the Company made a partial prepayment of 10 million Euros ($11 million) of the 2013 assessment to avoid any collection enforcement from the Italian tax authorities pending the appeal phase of the case. The payment, net of a partial reduction for unrecognized tax benefits, is included in "Other assets, net" in the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, and does not constitute an admission that the Company owes the taxes and will be refunded (with interest) to the Company to the extent that the Company prevails. Similarly, during the year ended December 31, 2022, the Company made deposits totaling 64 million Euros ($70 million) for the 2014 through 2018 assessments. The payments are included in "Other assets, net" in the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022. In June 2021, the investigative arm of the Italian tax authorities issued a Tax Audit Report recommending that a formal tax assessment of 154 million Euros ($167 million), plus interest and penalties, be made on Booking.com BV for VAT related to commissions charged to certain Italian accommodation providers from 2013 to 2019. In connection with the Tax Audit Report, the Genoa Public Prosecutor has requested certain Booking.com tax information and related data. The Company is cooperating with that request. While the Company continues to believe that Booking.com has been compliant with applicable VAT laws, recently the Company had discussions with the Italian tax authorities regarding the potential to resolve these matters. As of March 31, 2023 and December 31, 2022, the Company had a liability of 71 million Euros ($77 million) and 44 million Euros ($47 million), respectively, with respect to the potential settlement of the issues raised in the Tax Audit Report as applied to the periods 2013 to 2022, which is included in "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets. In 2018 and 2019, Turkish tax authorities asserted that Booking.com had a permanent establishment in Turkey and issued tax assessments for the years 2012 through 2018 for approximately 845 million Turkish Lira ($44 million), which includes interest and penalties through March 31, 2023. In March 2023, the Turkish government enacted a tax amnesty law. The Company intends to apply the tax amnesty to the tax cases for the years 2012 through 2017. Participation in the tax amnesty program allows for reduced payments to settle and close those cases, and does not constitute an admission that the Company accepts the merits of the assertions set forth by the Turkish tax authorities. In addition, the Company will pay certain tax base increase amounts for the years 2018 through 2022 in accordance with the tax amnesty law, which forestalls any tax audits of these years. As a result, the Company has recorded liabilities for VAT, withholding taxes, and income taxes totaling 210 million Turkish Lira ($11 million) as of March 31, 2023, which are included in "Accrued expenses and other current liabilities" in the Company's Consolidated Balance Sheet. The Company will continue to litigate its 2013 tax year income tax case and all of its 2018 tax year cases. As of March 31, 2023 and December 31, 2022, the Company has paid approximately 149 million Turkish Lira ($8 million) and 118 million Turkish Lira ($6 million), respectively, of the assessments in order to preserve its right to contest the 2018 tax year assessment. Such payment, which is included in "Other assets, net" in the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, does not constitute an admission that the Company owes the taxes and will be refunded to the Company to the extent the Company prevails. The Company is also involved in other tax-related audits, investigations, or litigation relating to income taxes, value-added taxes, travel transaction taxes (e.g., hotel occupancy taxes), and other taxes. Any taxes or assessments in excess of the Company's tax provisions, including the resolution of any tax proceedings or litigation, could have a material adverse impact on the Company's results of operations, cash flows, and financial condition. Other Matters Beginning in 2014, Booking.com received several letters from the Netherlands Pension Fund for the Travel Industry (Reiswerk) ("BPF") claiming that Booking.com is required to participate in the mandatory pension scheme of the BPF with retroactive effect to 1999, which has a higher contribution rate than the pension scheme in which Booking.com is currently participating. BPF instituted legal proceedings against Booking.com and in 2016 the District Court of Amsterdam rejected all of BPF's claims. BPF appealed the decision to the Court of Appeal, and, in May 2019, the Court of Appeal also rejected all of BPF's claims, in each case by ruling that Booking.com does not meet the definition of a travel intermediary for purposes of the mandatory pension scheme. BPF then appealed to the Netherlands Supreme Court. In April 2021, the Supreme Court overturned the previous decision of the Court of Appeal and held that Booking.com meets the definition of a travel intermediary for the purposes of the mandatory pension scheme. The Supreme Court ruled only on the qualification of Booking.com as a travel intermediary for the purposes of the mandatory pension scheme and did not rule on the various other defenses brought forward by the Company against BPF's claims. The Supreme Court referred the matter to another Court of Appeal that will have to assess the other defenses brought forward by the Company. The Company intends to pursue a number of defenses in the subsequent proceedings and may ultimately prevail in whole or in part. While the Company continues to believe that Booking.com is in compliance with its pension obligations and that the Court of Appeal could ultimately rule in favor of Booking.com, given the Supreme Court's decision, the Company believes it is probable that it has incurred a loss related to this matter. The Company is not able to reasonably estimate a loss or a range of loss because there are significant factual and legal questions yet to be determined in the subsequent proceedings. As a result, as of March 31, 2023, the Company has not recorded a liability in connection with a potential adverse ultimate outcome to this litigation. However, if Booking.com were to ultimately lose and all of BPF's claims were to be accepted (including with retroactive effect to 1999), the Company estimates that as of March 31, 2023, the maximum loss, not including any potential interest or penalties, would be approximately 364 million Euros ($395 million). Such estimated potential loss increases as Booking.com continues not to contribute to the BPF and depends on Booking.com's applicable employee compensation after March 31, 2023. From time to time, the Company notifies the competent data protection authority, such as the Dutch data protection authority in accordance with its obligations under the General Data Protection Regulation, of certain incidental and accidental personal data security incidents. Should, for example, the Dutch data protection authority decide these incidents were the result of inadequate technical and organizational security measures or practices, it could decide to impose a fine. The Company has been, is currently, and expects to continue to be, subject to legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of third-party intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and managerial resources, divert management's attention from the Company's business objectives and adversely affect the Company's business, results of operations, financial condition, and cash flows. The Company accrues for certain legal contingencies where it is probable that a loss has been incurred and the amount can be reasonably estimated. Such accrued amounts are not material to the Company's balance sheets and provisions recorded have not been material to the Company's results of operations or cash flows. Other Contractual Obligations and Contingencies The Company had $786 million and $452 million of standby letters of credit and bank guarantees issued on behalf of the Company as of March 31, 2023 and December 31, 2022, respectively, including those issued under the revolving credit facility. These are obtained primarily for regulatory purposes. See Note 9 for information related to letters of credit issued under the revolving credit facility. Booking.com offers partner liability insurance that provides protection to certain accommodation partners ("home partners") in instances where a reservation has been made via Booking.com. The partner liability insurance may provide those home partners (both owners and property managers) coverage up to $1.0 million equivalent per occurrence, subject to limitations and exclusions, against third-party lawsuits claims for bodily injury or third-party personal property damage that occurred during a stay booked through Booking.com. Booking.com retains certain financial risks related to this insurance offering, which is underwritten by third-party insurance companies. |
OTHER INCOME (EXPENSE), NET
OTHER INCOME (EXPENSE), NET | 3 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET The components of other income (expense), net were as follows (in millions): Three Months Ended 2023 2022 Interest and dividend income $ 228 $ 3 Net losses on equity securities (1) (133) (987) Foreign currency transaction (losses) gains (2) (53) 30 Other 5 (1) Other income (expense), net $ 47 $ (955) (1) Includes losses of $149 million related to the sale of Meituan. See Note 5 for additional information related to the net losses on equity securities. |
OTHER
OTHER | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
OTHER | OTHER Unaudited Consolidated Statements of Cash Flows: Additional Information Restricted cash and cash equivalents at March 31, 2023 and December 31, 2022 principally relate to the minimum cash requirement for the Company's travel-related insurance business. The following table reconciles cash and cash equivalents and restricted cash and cash equivalents reported in the Consolidated Balance Sheets to the total amounts shown in the Unaudited Consolidated Statements of Cash Flows (in millions): March 31, December 31, (Unaudited) As included in the Consolidated Balance Sheets: Cash and cash equivalents $ 14,140 $ 12,221 Restricted cash and cash equivalents (1) 32 30 Total cash and cash equivalents and restricted cash and cash equivalents as shown in the Unaudited Consolidated Statements of Cash Flows $ 14,172 $ 12,251 (1) Included in "Other current assets" in the Consolidated Balance Sheets. Noncash investing activity related to additions to property and equipment, including stock-based compensation and accrued liabilities, was $18 million for the three months ended March 31, 2023 and 2022. Pending Acquisition In November 2021, the Company entered into an agreement to acquire global flight booking provider Etraveli Group for approximately 1.6 billion Euros ($1.8 billion). Completion of the acquisition is subject to certain closing conditions, including regulatory approvals. Restructuring, Disposal, and Other Exit Activities During the year ended December 31, 2022, the Company transferred certain customer service operations of Booking.com to Majorel Group Luxembourg S.A. resulting in a loss of $36 million included in "Restructuring, disposal, and other exit activities" in the Unaudited Consolidated Statement of Operations for the three months ended March 31, 2022. The assets transferred, with the related liabilities, were classified as held for sale at March 31, 2022. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Management of Booking Holdings Inc. (the "Company") is responsible for the Unaudited Consolidated Financial Statements included in this document. The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operating results. The Company prepared the Unaudited Consolidated Financial Statements following the requirements of the Securities and Exchange Commission for interim reporting. As permitted under those rules, the Company condensed or omitted certain footnotes or other financial information that are normally required by U.S. GAAP for annual financial statements. These Unaudited Consolidated Financial Statements should be read in combination with the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The Unaudited Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries, including acquired businesses from the dates of acquisition. All intercompany accounts and transactions have been eliminated in consolidation. The functional currency of the Company's subsidiaries is generally the respective local currency. For international operations, assets and liabilities are translated into U.S. Dollars at the rate of exchange existing at the balance sheet date. Income statement amounts are translated at monthly average exchange rates applicable for the period. Translation gains and losses are included as a component of "Accumulated other comprehensive loss" in the accompanying Consolidated Balance Sheets. Foreign currency transaction gains and losses are included in "Other income (expense), net" in the Unaudited Consolidated Statements of Operations. Revenues, expenses, assets, and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for any subsequent quarter or the full year. |
Reclassification | Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements See "Recent Accounting Pronouncements Adopted" and "Other Recent Accounting Pronouncements" in Note 2 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. |
Intangible Assets, Goodwill and
Intangible Assets, Goodwill and Other (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Definite-lived intangible assets amortization | Intangible assets are amortized on a straight-line basis. |
Income Taxes (Policies)
Income Taxes (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income tax expense consists of U.S. and international income taxes, determined using an estimate of the Company's annual effective tax rate, which is based upon the applicable tax rates and tax laws of the countries in which the income is generated. A deferred tax liability is recognized for all taxable temporary differences, and a deferred tax asset is recognized for all deductible temporary differences and operating loss and tax credit carryforwards. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company considers many factors when assessing the likelihood of future realization of the deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future income, tax planning strategies, the carryforward periods available for tax reporting purposes, and other relevant factors. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Geographic Information | The Company's geographic information on revenues is as follows (in millions): Outside of the U.S. United States The Netherlands Other Total Company Total revenues for the three months ended March 31, 2023 $ 523 $ 2,859 $ 396 $ 3,778 2022 $ 475 $ 1,969 $ 251 $ 2,695 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Activity of Restricted Stock Units and Performance Share Units | The following table summarizes the activity in restricted stock units and performance share units for employees and non-employee directors during the three months ended March 31, 2023: Restricted Stock Units Performance Share Units Shares Weighted-average Grant-date Fair Value Shares Weighted-average Grant-date Fair Value Unvested at December 31, 2022 (1) 280,460 $2,070 143,702 $2,294 Granted (2) 158,615 $2,620 51,866 $2,679 Vested (123,150) $1,980 (30,118) $2,327 Performance shares adjustment (3) — — 33,424 $2,412 Forfeited (4,457) $2,225 (5,225) $2,241 Unvested at March 31, 2023 311,468 $2,384 193,649 $2,414 (1) Excludes 14,087 performance share units awarded during the years ended December 31, 2022 and 2021 for which the grant date under Accounting Standards Codification ("ASC") 718, Compensation - Stock Compensation , was not established as of December 31, 2022. Among other conditions, for the grant date to be established, a mutual understanding is required to be reached between the Company and the employee of the key terms and conditions of the award, including the performance targets. The performance targets for each of the annual performance periods under the award are set at the beginning of the respective year. (2) Includes 9,688 performance share units awarded during the years ended December 31, 2022 and 2021 for which the grant date under ASC 718 was established. (3) Probable outcome for performance-based awards is updated based upon changes in actual and forecasted operating results or expected achievement of performance goals, as applicable, and the impact of modifications. |
Activity of Stock Options | The following table summarizes the activity in stock options during the three months ended March 31, 2023: Employee Stock Options Number of Shares Weighted-average Exercise Price Aggregate Weighted-average Remaining Contractual Term Balance, December 31, 2022 120,813 $1,408 $ 73 7.3 Exercised (74,545) $1,411 Forfeited (62) $1,411 Balance, March 31, 2023 46,206 $1,404 $ 58 7.0 Exercisable at March 31, 2023 46,206 $1,404 $ 58 7.0 The aggregate intrinsic value of employee stock options exercised during the three months ended March 31, 2023 was $89 million. |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of the weighted-average number of shares outstanding used in calculating diluted net income (loss) per share | A reconciliation of the weighted-average number of shares outstanding used in calculating diluted net income (loss) per share is as follows (in thousands): Three Months Ended 2023 2022 Weighted-average number of basic common shares outstanding 37,621 40,921 Weighted-average dilutive stock options, restricted stock units and performance share units 242 — Assumed conversion of convertible senior notes 120 — Weighted-average number of diluted common and common equivalent shares outstanding 37,983 40,921 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended | |
Mar. 31, 2023 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Investments | The following table summarizes the Company's investments by major security type at March 31, 2023 (in millions): Cost Gross Gross Carrying Value Short-term investments: Debt securities: International government securities $ 38 $ — $ — $ 38 U.S. government securities (1) 145 — (1) 144 Corporate debt securities 180 — (3) 177 Total short-term investments $ 363 $ — $ (4) $ 359 Long-term investments: Debt securities: International government securities $ 41 $ — $ (1) $ 40 U.S. government securities 113 — (2) 111 Corporate debt securities 220 — (3) 217 Total debt securities 374 — (6) 368 Equity securities: Equity securities with readily determinable fair values 715 — (430) 285 Equity securities of private companies 78 259 (184) 153 Total equity securities 793 259 (614) 438 Total long-term investments $ 1,167 $ 259 $ (620) $ 806 (1) Includes investments in U.S. municipal bonds. The following table summarizes the Company's investments by major security type at December 31, 2022 (in millions): Cost Gross Gross Unrealized Losses/Downward Adjustments Carrying Value Short-term investments: Debt securities: International government securities $ 13 $ — $ — $ 13 U.S. government securities (1) 131 — (1) 130 Corporate debt securities 32 — — 32 Total short-term investments $ 176 $ — $ (1) $ 175 Long-term investments: Debt securities: International government securities $ 63 $ — $ (1) $ 62 U.S. government securities (1) 147 — (3) 144 Corporate debt securities 366 — (7) 359 Total debt securities 576 — (11) 565 Equity securities: Equity securities with readily determinable fair values 1,165 1,352 (446) 2,071 Equity securities of private companies 78 259 (184) 153 Total equity securities 1,243 1,611 (630) 2,224 Total long-term investments $ 1,819 $ 1,611 $ (641) $ 2,789 (1) Includes investments in U.S. municipal bonds. | [1] |
Unrealized Gains (Losses) on Investments | Net unrealized gains (losses) related to these investments included in "Other income (expense), net" in the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022 were as follows (in millions): Three Months Ended 2023 2022 DiDi $ 25 $ (97) Grab (9) (153) Meituan — (728) | |
[1]Includes investments in U.S. municipal bonds. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Nonrecurring Fair Value Measurements | Financial assets and liabilities measured at fair value on a recurring basis at March 31, 2023 are classified in the categories described in the table below (in millions): Level 1 Level 2 Total Recurring fair value measurements (1) ASSETS: Cash equivalents and restricted cash equivalents: Money market fund investments $ 13,345 $ — $ 13,345 Certificates of deposit 62 — 62 Short-term investments: International government securities — 38 38 U.S. government securities — 144 144 Corporate debt securities — 177 177 Long-term investments: International government securities — 40 40 U.S. government securities — 111 111 Corporate debt securities — 217 217 Equity securities 285 — 285 Derivatives: Foreign currency exchange derivatives — 43 43 Total assets at fair value $ 13,692 $ 770 $ 14,462 LIABILITIES: Foreign currency exchange derivatives $ — $ 31 $ 31 (1) The Company did not have any Level 3 fair value measurements at March 31, 2023. Financial assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and nonrecurring fair value measurements are classified in the categories described in the table below (in millions): Level 1 Level 2 Level 3 (1) Total Recurring fair value measurements ASSETS: Cash equivalents and restricted cash equivalents: Money market fund investments $ 11,483 $ — $ — $ 11,483 Certificates of deposit 60 — — 60 Short-term investments: International government securities — 13 — 13 U.S. government securities — 130 — 130 Corporate debt securities — 32 — 32 Long-term investments: International government securities — 62 — 62 U.S. government securities — 144 — 144 Corporate debt securities — 359 — 359 Equity securities 2,071 — — 2,071 Derivatives: Foreign currency exchange derivatives — 65 — 65 Total assets at fair value $ 13,614 $ 805 $ — $ 14,419 LIABILITIES: Foreign currency exchange derivatives $ — $ 26 $ — $ 26 Nonrecurring fair value measurements Investment in equity securities of a private company (1) $ — $ — $ 122 $ 122 (1) During the year ended December 31, 2022, the investment in Yanolja was written down to its estimated fair value. |
Fair Value and the Notional Amount of Derivatives and the Effect of Foreign Currency Exchange Derivatives | The table below provides estimated fair values and notional amounts of foreign currency exchange derivatives outstanding at March 31, 2023 and December 31, 2022 (in millions). The notional amount of a foreign currency forward contract is the contracted amount of foreign currency to be exchanged and is not recorded in the balance sheets. March 31, 2023 December 31, 2022 Estimated fair value of derivative assets $ 43 $ 65 Estimated fair value of derivative liabilities $ 31 $ 26 Notional amount: Foreign currency purchases $ 4,300 $ 2,870 Foreign currency sales $ 3,289 $ 2,682 The effect of foreign currency exchange derivatives recorded in "Other income (expense), net" in the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022 is as follows (in millions): Three Months Ended 2023 2022 Losses on foreign currency exchange derivatives $ 17 $ 16 |
ACCOUNTS RECEIVABLE AND OTHER_2
ACCOUNTS RECEIVABLE AND OTHER FINANCIAL ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Activity of the allowance for expected credit losses on receivables | The following table summarizes the activity of the allowance for expected credit losses on receivables (in millions): Three Months Ended 2023 2022 Balance, beginning of year $ 117 $ 101 Provision charged to earnings 20 30 Write-offs and adjustments (45) (28) Foreign currency translation adjustments 1 (1) Balance, end of period $ 93 $ 102 |
Activity of the allowance for expected credit losses on prepayments to customers | The following table summarizes the activity of the allowance for expected credit losses on prepayments to customers (in millions): Three Months Ended 2023 2022 Balance, beginning of year $ 23 $ 47 Provision charged to expense — (3) Write-offs and adjustments (2) (1) Balance, end of period $ 21 $ 43 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | The Company's intangible assets at March 31, 2023 and December 31, 2022 consist of the following (in millions): March 31, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amortization Period Supply and distribution agreements $ 1,393 $ (686) $ 707 $ 1,386 $ (658) $ 728 3 - 20 years Technology 287 (194) 93 287 (185) 102 2 - 7 years Trade names 1,809 (837) 972 1,806 (812) 994 3 - 20 years Other intangible assets 44 (39) 5 43 (38) 5 Up to 20 years Total intangible assets $ 3,533 $ (1,756) $ 1,777 $ 3,522 $ (1,693) $ 1,829 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | Outstanding debt at March 31, 2023 consists of the following (in millions): March 31, 2023 Outstanding Principal Amount Unamortized Debt Carrying Value Current liabilities: 0.75% Convertible Senior Notes due May 2025 $ 863 $ (9) $ 854 Total current liabilities $ 863 $ (9) $ 854 Long-term debt: 2.375% (€1 Billion) Senior Notes due September 2024 $ 1,086 $ (2) $ 1,084 3.65% Senior Notes due March 2025 500 (1) 499 0.1% (€950 Million) Senior Notes due March 2025 1,032 (3) 1,029 3.6% Senior Notes due June 2026 1,000 (3) 997 4.0% (€750 Million) Senior Notes due November 2026 815 (4) 811 1.8% (€1 Billion) Senior Notes due March 2027 1,086 (2) 1,084 3.55% Senior Notes due March 2028 500 (2) 498 0.5% (€750 Million) Senior Notes due March 2028 815 (4) 811 4.25% (€750 Million) Senior Notes due May 2029 815 (6) 809 4.625% Senior Notes due April 2030 1,500 (8) 1,492 4.5% (€1 Billion) Senior Notes due November 2031 1,086 (6) 1,080 4.75% (€1 Billion) Senior Notes due November 2034 1,086 (8) 1,078 Total long-term debt $ 11,321 $ (49) $ 11,272 Outstanding debt at December 31, 2022 consists of the following (in millions): December 31, 2022 Outstanding Unamortized Debt Carrying Value Current liabilities: 2.75% Senior Notes due March 2023 $ 500 $ — $ 500 Total current liabilities $ 500 $ — $ 500 Long-term debt: 2.375% (€1 Billion) Senior Notes due September 2024 $ 1,067 $ (3) $ 1,064 3.65% Senior Notes due March 2025 500 (1) 499 0.1% (€950 Million) Senior Notes due March 2025 1,014 (3) 1,011 0.75% Convertible Senior Notes due May 2025 863 (9) 854 3.6% Senior Notes due June 2026 1,000 (3) 997 4.0% (€750 Million) Senior Notes due November 2026 800 (3) 797 1.8% (€1 Billion) Senior Notes due March 2027 1,067 (2) 1,065 3.55% Senior Notes due March 2028 500 (2) 498 0.5% (€750 Million) Senior Notes due March 2028 800 (3) 797 4.25% (€750 Million) Senior Notes due May 2029 800 (6) 794 4.625% Senior Notes due April 2030 1,500 (9) 1,491 4.5% (€1 Billion) Senior Notes due November 2031 1,067 (7) 1,060 4.75% (€1 Billion) Senior Notes due November 2034 1,067 (9) 1,058 Total long-term debt $ 12,045 $ (60) $ 11,985 |
Summary of Interest Expense | For the Three Months Ended March 31, 2023 2022 Coupon interest expense $ 92 $ 58 Amortization of debt discount and debt issuance costs 3 3 Total interest expense $ 95 $ 61 |
TREASURY STOCK (Tables)
TREASURY STOCK (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Stock Repurchase Activity | The following table summarizes the Company's stock repurchase activities during the three months ended March 31, 2023 and 2022 (in millions, except for shares, which are reflected in thousands): Three Months Ended March 31, 2023 2022 Shares Amount Shares Amount Authorized stock repurchase programs 812 $ 2,022 414 $ 948 General authorization for shares withheld on stock award vesting 66 173 73 152 Total 878 $ 2,195 487 $ 1,100 |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Changes in the Balances of Accumulated Other Comprehensive Loss | The tables below present the changes in the balances of accumulated other comprehensive loss ("AOCI") by component for the three months ended March 31, 2023 and 2022 (in millions): Foreign currency translation adjustments Net unrealized gains (losses) on available-for-sale securities Total AOCI, net of tax Foreign currency translation Net investment hedges (1) Total, net of tax Before tax Tax Total, net of tax Before tax Tax (2) Before tax Tax Three Months Ended March 31, 2023 Balance, December 31, 2022 $ (579) $ 93 $ 310 $ (81) $ (257) $ (13) $ 3 $ (10) $ (267) Other comprehensive income (loss) ("OCI") for the period 105 (21) (113) 27 (2) 3 (1) 2 — Balance, March 31, 2023 $ (474) $ 72 $ 197 $ (54) $ (259) $ (10) $ 2 $ (8) $ (267) Three Months Ended March 31, 2022 Balance, December 31, 2021 $ (276) $ 67 $ 91 $ (28) $ (146) $ 3 $ (1) $ 2 $ (144) OCI for the period (135) 7 117 (27) (38) (1) — (1) (39) Balance, March 31, 2022 $ (411) $ 74 $ 208 $ (55) $ (184) $ 2 $ (1) $ 1 $ (183) (1) Net investment hedges balance at March 31, 2023 and earlier dates presented above, includes accumulated net losses from fair value adjustments of $35 million ($53 million before tax) associated with previously settled derivatives that were designated as net investment hedges. The remaining balances relate to foreign currency transaction gains (losses) and related tax benefits (expenses) associated with the Company's Euro-denominated debt that is designated as a hedge of the foreign currency exposure of the net investment in certain Euro functional currency subsidiaries (see Note 9). (2) The tax benefits relate to foreign currency translation adjustments to the Company's one-time deemed repatriation tax liability recorded at December 31, 2017 and foreign earnings for periods after December 31, 2017 that are subject to U.S. federal and state income tax, resulting from the enactment of the U.S. Tax Cuts and Jobs Act (the "Tax Act"). |
OTHER INCOME (EXPENSE), NET (Ta
OTHER INCOME (EXPENSE), NET (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Components of other income (expense), net | The components of other income (expense), net were as follows (in millions): Three Months Ended 2023 2022 Interest and dividend income $ 228 $ 3 Net losses on equity securities (1) (133) (987) Foreign currency transaction (losses) gains (2) (53) 30 Other 5 (1) Other income (expense), net $ 47 $ (955) (1) Includes losses of $149 million related to the sale of Meituan. See Note 5 for additional information related to the net losses on equity securities. |
OTHER (Tables)
OTHER (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Reconciliation of Cash and Cash Equivalents and Restricted Cash and Cash Equivalents | The following table reconciles cash and cash equivalents and restricted cash and cash equivalents reported in the Consolidated Balance Sheets to the total amounts shown in the Unaudited Consolidated Statements of Cash Flows (in millions): March 31, December 31, (Unaudited) As included in the Consolidated Balance Sheets: Cash and cash equivalents $ 14,140 $ 12,221 Restricted cash and cash equivalents (1) 32 30 Total cash and cash equivalents and restricted cash and cash equivalents as shown in the Unaudited Consolidated Statements of Cash Flows $ 14,172 $ 12,251 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3,778 | $ 2,695 |
Online accommodation reservation services | Revenue Benchmark | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 88% | 86% |
Other sources of online travel reservation services and advertising and other revenues | Revenue Benchmark | Product Concentration Risk | Maximum | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 10% | 10% |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 523 | $ 475 |
The Netherlands | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,859 | 1,969 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 396 | $ 251 |
REVENUE - Incentive Programs (D
REVENUE - Incentive Programs (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued expenses and other current liabilities | Incentives Programs | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Liabilities for incentives granted to customers | $ 153 | $ 143 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate grant-date fair value of performance share units and restricted stock units granted during the period | $ 555 |
Aggregate fair value of performance share units and restricted stock units vested during the period | 401 |
Restricted Stock Units and Performance Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized estimated compensation expense, unvested share-based awards | $ 1,000 |
Total future compensation cost related to unvested share-based awards, expected period of recognition | 2 years 3 months 18 days |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Share-Based Compensation Activity (Details) - $ / shares | 3 Months Ended | 24 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | |||
Restricted Stock Units | ||||
Shares | ||||
Unvested, beginning of period (in shares) | 280,460 | |||
Granted (in shares) | 158,615 | |||
Vested (in shares) | (123,150) | |||
Forfeited (in shares) | (4,457) | |||
Unvested, end of period (in shares) | 311,468 | 280,460 | ||
Weighted-average Grant-date Fair Value | ||||
Unvested, beginning of period (in dollars per share) | $ 2,070 | |||
Granted (in dollars per share) | 2,620 | |||
Vested (in dollars per share) | 1,980 | |||
Forfeited (in dollars per share) | 2,225 | |||
Unvested, end of period (in dollars per share) | $ 2,384 | $ 2,070 | ||
Performance Share Units | ||||
Shares | ||||
Unvested, beginning of period (in shares) | [1] | 143,702 | ||
Granted (in shares) | [2] | 51,866 | ||
Vested (in shares) | (30,118) | |||
Performance shares adjustment (in shares) | [3] | 33,424 | ||
Forfeited (in shares) | (5,225) | |||
Unvested, end of period (in shares) | 193,649 | 143,702 | [1] | |
Weighted-average Grant-date Fair Value | ||||
Unvested, beginning of period (in dollars per share) | [1] | $ 2,294 | ||
Granted (in dollars per share) | [2] | 2,679 | ||
Vested (in dollars per share) | 2,327 | |||
Performance shares adjustment (in dollars per share) | [3] | 2,412 | ||
Forfeited (in dollars per share) | 2,241 | |||
Unvested, end of period (in dollars per share) | $ 2,414 | $ 2,294 | [1] | |
Performance Share Units 2021 and 2022 Grants | Performance Share Units | ||||
Weighted-average Grant-date Fair Value | ||||
Performance share units awarded during the period where a grant date was not yet established. (in shares) | 14,087 | |||
Performance share units awarded during the period where a grant date was established. (in shares) | 9,688 | |||
[1]Excludes 14,087 performance share units awarded during the years ended December 31, 2022 and 2021 for which the grant date under Accounting Standards Codification ("ASC") 718, Compensation - Stock Compensation , was not established as of December 31, 2022. Among other conditions, for the grant date to be established, a mutual understanding is required to be reached between the Company and the employee of the key terms and conditions of the award, including the performance targets. The performance targets for each of the annual performance periods under the award are set at the beginning of the respective year. |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Weighted-average Remaining Contractual Term | ||
Intrinsic value of options exercised during the period | $ 89 | |
Stock Options | ||
Number of Shares | ||
Balance, beginning of period (in shares) | 120,813 | |
Exercised (in shares) | (74,545) | |
Forfeited (in shares) | (62) | |
Balance, end of period (in shares) | 46,206 | 120,813 |
Exercisable (in shares) | 46,206 | |
Weighted-average Exercise Price | ||
Balance, beginning of period (in dollars per share) | $ 1,408 | |
Exercised (in dollars per share) | 1,411 | |
Forfeited (in dollars per share) | 1,411 | |
Balance, end of period (in dollars per share) | 1,404 | $ 1,408 |
Exercisable (in dollars per share) | $ 1,404 | |
Aggregate Intrinsic Value | ||
Balance | $ 58 | $ 73 |
Exercisable | $ 58 | |
Weighted-average Remaining Contractual Term | ||
Balance | 7 years | 7 years 3 months 18 days |
Exercisable | 7 years |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Weighted-average number of basic common shares outstanding (in shares) | 37,621,000 | 40,921,000 |
Weighted-average dilutive stock options, restricted stock units and performance share units (in shares) | 242,000 | 0 |
Assumed conversion of convertible senior notes (in shares) | 120,000 | 0 |
Weighted-average number of diluted common and common equivalent shares outstanding (in shares) | 37,983,000 | 40,921,000 |
Anti-dilutive potential common shares (in shares) | 58,079 | 269,653 |
INVESTMENTS - Summary of Invest
INVESTMENTS - Summary of Investments by Major Security Type (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | ||
Debt securities: | ||||
Cost | $ 363 | $ 176 | ||
Gross Unrealized Gains /Upward Adjustments | 0 | 0 | ||
Gross Unrealized Losses /Downward Adjustments | (4) | (1) | ||
Carrying Value | 359 | 175 | ||
Equity securities: | ||||
Cost | 1,167 | 1,819 | ||
Gross Unrealized Gains /Upward Adjustments | 259 | 1,611 | ||
Gross Unrealized Losses /Downward Adjustments | (620) | (641) | ||
Carrying Value | 806 | 2,789 | ||
Short-term Investments | ||||
Debt securities: | ||||
Cost | 363 | 176 | ||
Long-term Investments | ||||
Debt securities: | ||||
Cost | 374 | 576 | ||
Gross Unrealized Gains/Upward Adjustments | 0 | 0 | ||
Gross Unrealized Losses/Downward Adjustments | (6) | (11) | ||
Carrying Value | 368 | 565 | ||
Equity securities: | ||||
Cost | 793 | 1,243 | ||
Gross Unrealized Gains /Upward Adjustments | 259 | 1,611 | ||
Gross Unrealized Losses /Downward Adjustments | (614) | (630) | ||
Carrying Value | 438 | 2,224 | ||
International government securities | Short-term Investments | ||||
Debt securities: | ||||
Cost | 38 | 13 | ||
Gross Unrealized Gains/Upward Adjustments | 0 | 0 | ||
Gross Unrealized Losses/Downward Adjustments | 0 | 0 | ||
Carrying Value | 38 | 13 | ||
International government securities | Long-term Investments | ||||
Debt securities: | ||||
Cost | 41 | 63 | ||
Gross Unrealized Gains/Upward Adjustments | 0 | 0 | ||
Gross Unrealized Losses/Downward Adjustments | (1) | (1) | ||
Carrying Value | 40 | 62 | ||
U.S. government securities | Short-term Investments | ||||
Debt securities: | ||||
Cost | [1] | 145 | 131 | |
Gross Unrealized Gains/Upward Adjustments | [1] | 0 | 0 | |
Gross Unrealized Losses/Downward Adjustments | [1] | (1) | (1) | |
Carrying Value | [1] | 144 | 130 | |
U.S. government securities | Long-term Investments | ||||
Debt securities: | ||||
Cost | 113 | 147 | [1] | |
Gross Unrealized Gains/Upward Adjustments | 0 | 0 | [1] | |
Gross Unrealized Losses/Downward Adjustments | (2) | (3) | [1] | |
Carrying Value | 111 | 144 | [1] | |
Corporate debt securities | Short-term Investments | ||||
Debt securities: | ||||
Cost | 180 | 32 | ||
Gross Unrealized Gains/Upward Adjustments | 0 | 0 | ||
Gross Unrealized Losses/Downward Adjustments | (3) | 0 | ||
Carrying Value | 177 | 32 | ||
Corporate debt securities | Long-term Investments | ||||
Debt securities: | ||||
Cost | 220 | 366 | ||
Gross Unrealized Gains/Upward Adjustments | 0 | 0 | ||
Gross Unrealized Losses/Downward Adjustments | (3) | (7) | ||
Carrying Value | 217 | 359 | ||
Equity securities with readily determinable fair values | Long-term Investments | ||||
Equity securities: | ||||
Cost | 715 | 1,165 | ||
Gross Unrealized Gains /Upward Adjustments | 0 | 1,352 | ||
Gross Unrealized Losses /Downward Adjustments | (430) | (446) | ||
Carrying Value | 285 | 2,071 | ||
Equity securities of private companies | Long-term Investments | ||||
Equity securities: | ||||
Cost | 78 | 78 | ||
Gross Unrealized Gains /Upward Adjustments | 259 | 259 | ||
Gross Unrealized Losses /Downward Adjustments | (184) | (184) | ||
Carrying Value | $ 153 | $ 153 | ||
[1]Includes investments in U.S. municipal bonds. |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | |||
Proceeds from sale and maturity of investments | $ 1,683 | $ 0 | |
Minimum | |||
Schedule of Investments [Line Items] | |||
Term of available-for-sale debt securities (in years) | 1 year | ||
Maximum | |||
Schedule of Investments [Line Items] | |||
Term of available-for-sale debt securities (in years) | 2 years | ||
Equity securities with readily determinable fair values | Long-term Investments | |||
Schedule of Investments [Line Items] | |||
Equity securities, fair value | $ 285 | $ 2,071 | |
Cost | 715 | 1,165 | |
Equity securities of private companies | Long-term Investments | |||
Schedule of Investments [Line Items] | |||
Investment in equity securities without readily determinable FV | 153 | 153 | |
Meituan | |||
Schedule of Investments [Line Items] | |||
Equity securities, fair value | 1,800 | ||
Unrealized gain (loss) equity securities | 0 | (728) | |
Proceeds from sale and maturity of investments | 1,700 | ||
Net loss on equity securities | 149 | ||
Meituan | Equity securities with readily determinable fair values | Long-term Investments | |||
Schedule of Investments [Line Items] | |||
Cost | 450 | ||
DiDi | |||
Schedule of Investments [Line Items] | |||
Equity securities, fair value | 150 | 125 | |
Unrealized gain (loss) equity securities | 25 | (97) | |
Grab | |||
Schedule of Investments [Line Items] | |||
Equity securities, fair value | 127 | 136 | |
Unrealized gain (loss) equity securities | (9) | $ (153) | |
Yanolja | Equity securities of private companies | |||
Schedule of Investments [Line Items] | |||
Investment in equity securities without readily determinable FV | $ 122 | $ 122 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2023 | [1] | Dec. 31, 2022 | |
Recurring Basis | ||||
ASSETS: | ||||
Assets at fair value | $ 14,462 | $ 14,419 | ||
Recurring Basis | Money market fund investments | Cash Equivalents and Restricted Cash Equivalents | ||||
ASSETS: | ||||
Assets at fair value | 13,345 | 11,483 | ||
Recurring Basis | Certificates of deposit | Cash Equivalents and Restricted Cash Equivalents | ||||
ASSETS: | ||||
Assets at fair value | 62 | 60 | ||
Recurring Basis | International government securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 38 | 13 | ||
Recurring Basis | International government securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 40 | 62 | ||
Recurring Basis | U.S. government securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 144 | 130 | ||
Recurring Basis | U.S. government securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 111 | 144 | ||
Recurring Basis | Corporate debt securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 177 | 32 | ||
Recurring Basis | Corporate debt securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 217 | 359 | ||
Recurring Basis | Equity securities with readily determinable fair values | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 285 | 2,071 | ||
Recurring Basis | Not Designated as Hedging Instrument | Foreign currency exchange derivatives | ||||
ASSETS: | ||||
Assets at fair value | 43 | 65 | ||
LIABILITIES: | ||||
Liabilities at fair value | 31 | 26 | ||
Nonrecurring Basis | Equity securities of private companies | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 122 | ||
Level 1 | Recurring Basis | ||||
ASSETS: | ||||
Assets at fair value | 13,692 | 13,614 | ||
Level 1 | Recurring Basis | Money market fund investments | Cash Equivalents and Restricted Cash Equivalents | ||||
ASSETS: | ||||
Assets at fair value | 13,345 | 11,483 | ||
Level 1 | Recurring Basis | Certificates of deposit | Cash Equivalents and Restricted Cash Equivalents | ||||
ASSETS: | ||||
Assets at fair value | 62 | 60 | ||
Level 1 | Recurring Basis | International government securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
Level 1 | Recurring Basis | International government securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
Level 1 | Recurring Basis | U.S. government securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
Level 1 | Recurring Basis | U.S. government securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
Level 1 | Recurring Basis | Corporate debt securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
Level 1 | Recurring Basis | Corporate debt securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
Level 1 | Recurring Basis | Equity securities with readily determinable fair values | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 285 | 2,071 | ||
Level 1 | Recurring Basis | Not Designated as Hedging Instrument | Foreign currency exchange derivatives | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
LIABILITIES: | ||||
Liabilities at fair value | 0 | 0 | ||
Level 1 | Nonrecurring Basis | Equity securities of private companies | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 2 | Recurring Basis | ||||
ASSETS: | ||||
Assets at fair value | 770 | 805 | ||
Level 2 | Recurring Basis | Money market fund investments | Cash Equivalents and Restricted Cash Equivalents | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
Level 2 | Recurring Basis | Certificates of deposit | Cash Equivalents and Restricted Cash Equivalents | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
Level 2 | Recurring Basis | International government securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 38 | 13 | ||
Level 2 | Recurring Basis | International government securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 40 | 62 | ||
Level 2 | Recurring Basis | U.S. government securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 144 | 130 | ||
Level 2 | Recurring Basis | U.S. government securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 111 | 144 | ||
Level 2 | Recurring Basis | Corporate debt securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 177 | 32 | ||
Level 2 | Recurring Basis | Corporate debt securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 217 | 359 | ||
Level 2 | Recurring Basis | Equity securities with readily determinable fair values | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | 0 | 0 | ||
Level 2 | Recurring Basis | Not Designated as Hedging Instrument | Foreign currency exchange derivatives | ||||
ASSETS: | ||||
Assets at fair value | 43 | 65 | ||
LIABILITIES: | ||||
Liabilities at fair value | $ 31 | 26 | ||
Level 2 | Nonrecurring Basis | Equity securities of private companies | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | Money market fund investments | Cash Equivalents and Restricted Cash Equivalents | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | Certificates of deposit | Cash Equivalents and Restricted Cash Equivalents | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | International government securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | International government securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | U.S. government securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | U.S. government securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | Corporate debt securities | Short-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | Corporate debt securities | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | Equity securities with readily determinable fair values | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
Level 3 | Recurring Basis | Not Designated as Hedging Instrument | Foreign currency exchange derivatives | ||||
ASSETS: | ||||
Assets at fair value | [2] | 0 | ||
LIABILITIES: | ||||
Liabilities at fair value | [2] | 0 | ||
Level 3 | Nonrecurring Basis | Equity securities of private companies | Long-term Investments | ||||
ASSETS: | ||||
Assets at fair value | [2] | $ 122 | ||
[1]The Company did not have any Level 3 fair value measurements at March 31, 2023.[2]During the year ended December 31, 2022, the investment in Yanolja was written down to its estimated fair value. |
FAIR VALUE MEASUREMENTS - Notio
FAIR VALUE MEASUREMENTS - Notional Amount of Foreign Currency Exchange Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Losses on foreign currency exchange derivatives | $ 17 | $ 16 | ||
Recurring Basis | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Assets at fair value | 14,462 | [1] | $ 14,419 | |
Recurring Basis | Level 2 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Assets at fair value | 770 | [1] | 805 | |
Foreign currency exchange derivatives | Not Designated as Hedging Instrument | Foreign currency purchases | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | 4,300 | 2,870 | ||
Foreign currency exchange derivatives | Not Designated as Hedging Instrument | Foreign currency sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | 3,289 | 2,682 | ||
Foreign currency exchange derivatives | Not Designated as Hedging Instrument | Recurring Basis | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Assets at fair value | 43 | [1] | 65 | |
Liabilities at fair value | 31 | [1] | 26 | |
Foreign currency exchange derivatives | Not Designated as Hedging Instrument | Recurring Basis | Level 2 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Assets at fair value | 43 | [1] | 65 | |
Liabilities at fair value | $ 31 | [1] | $ 26 | |
[1]The Company did not have any Level 3 fair value measurements at March 31, 2023. |
ACCOUNTS RECEIVABLE AND OTHER_3
ACCOUNTS RECEIVABLE AND OTHER FINANCIAL ASSETS - Summary of the Activity of the Allowance for Expected Credit Losses on Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | $ 117 | $ 101 |
Provision charged to earnings | 20 | 30 |
Write-offs and adjustments | (45) | (28) |
Foreign currency translation adjustments | 1 | (1) |
Balance, end of period | $ 93 | $ 102 |
ACCOUNTS RECEIVABLE AND OTHER_4
ACCOUNTS RECEIVABLE AND OTHER FINANCIAL ASSETS - Summary of the Activity of the Allowance for Expected Credit Losses on Prepayments to Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Contract With Customer, Asset, Prepayments To Customers, Allowance for Credit Loss [Abstract] | ||
Balance, beginning of year | $ 23 | $ 47 |
Provision charged to expense | 0 | (3) |
Write-offs and adjustments | (2) | (1) |
Balance, end of period | $ 21 | $ 43 |
ACCOUNTS RECEIVABLE AND OTHER_5
ACCOUNTS RECEIVABLE AND OTHER FINANCIAL ASSETS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables from customers | $ 1,400 | $ 1,500 |
Receivables from payment processors and networks | 601 | 730 |
Prepaid expenses, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Prepayments to customers | 24 | 29 |
Other assets, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Prepayments to customers | $ 7 | $ 5 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finite-lived intangible assets | |||
Gross Carrying Amount | $ 3,533 | $ 3,522 | |
Accumulated Amortization | (1,756) | (1,693) | |
Net Carrying Amount | 1,777 | 1,829 | |
Amortization expense | 55 | $ 56 | |
Cumulative impairment charges | 2,000 | 2,000 | |
Supply and distribution agreements | |||
Finite-lived intangible assets | |||
Gross Carrying Amount | 1,393 | 1,386 | |
Accumulated Amortization | (686) | (658) | |
Net Carrying Amount | $ 707 | 728 | |
Supply and distribution agreements | Minimum | |||
Finite-lived intangible assets | |||
Amortization Period | 3 years | ||
Supply and distribution agreements | Maximum | |||
Finite-lived intangible assets | |||
Amortization Period | 20 years | ||
Technology | |||
Finite-lived intangible assets | |||
Gross Carrying Amount | $ 287 | 287 | |
Accumulated Amortization | (194) | (185) | |
Net Carrying Amount | $ 93 | 102 | |
Technology | Minimum | |||
Finite-lived intangible assets | |||
Amortization Period | 2 years | ||
Technology | Maximum | |||
Finite-lived intangible assets | |||
Amortization Period | 7 years | ||
Trade names | |||
Finite-lived intangible assets | |||
Gross Carrying Amount | $ 1,809 | 1,806 | |
Accumulated Amortization | (837) | (812) | |
Net Carrying Amount | $ 972 | 994 | |
Trade names | Minimum | |||
Finite-lived intangible assets | |||
Amortization Period | 3 years | ||
Trade names | Maximum | |||
Finite-lived intangible assets | |||
Amortization Period | 20 years | ||
Other intangible assets | |||
Finite-lived intangible assets | |||
Gross Carrying Amount | $ 44 | 43 | |
Accumulated Amortization | (39) | (38) | |
Net Carrying Amount | $ 5 | $ 5 | |
Other intangible assets | Maximum | |||
Finite-lived intangible assets | |||
Amortization Period | 20 years |
DEBT - Schedule of Outstanding
DEBT - Schedule of Outstanding Debt (Details) € in Millions, $ in Millions | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Apr. 30, 2020 USD ($) |
Debt Instrument | |||||
Carrying Value | $ 854 | $ 500 | |||
Carrying Value | 11,272 | 11,985 | |||
Senior Notes | |||||
Debt Instrument | |||||
Outstanding Principal Amount | 11,321 | 12,045 | |||
Unamortized Debt Discount and Debt Issuance Cost | (49) | (60) | |||
Carrying Value | 11,272 | 11,985 | |||
Senior Notes | |||||
Debt Instrument | |||||
Outstanding Principal Amount | 863 | 500 | |||
Unamortized Debt Discount and Debt Issuance Cost | (9) | 0 | |||
Carrying Value | $ 854 | $ 500 | |||
0.75% Convertible Senior Notes due May 2025 | Convertible Debt | |||||
Debt Instrument | |||||
Stated interest rate | 0.75% | 0.75% | 0.75% | ||
Aggregate principal amount | $ 863 | ||||
Outstanding Principal Amount | $ 863 | ||||
Unamortized Debt Discount and Debt Issuance Cost | (9) | ||||
Carrying Value | $ 854 | ||||
0.75% Convertible Senior Notes due May 2025 | Convertible Debt | |||||
Debt Instrument | |||||
Stated interest rate | 0.75% | 0.75% | |||
Outstanding Principal Amount | $ 863 | ||||
Unamortized Debt Discount and Debt Issuance Cost | (9) | ||||
Carrying Value | $ 854 | ||||
2.75% Senior Notes due March 2023 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 2.75% | 2.75% | |||
Outstanding Principal Amount | $ 500 | ||||
Unamortized Debt Discount and Debt Issuance Cost | 0 | ||||
Carrying Value | $ 500 | ||||
2.375% (€1 Billion) Senior Notes due September 2024 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 2.375% | 2.375% | 2.375% | 2.375% | |
Aggregate principal amount | € | € 1,000 | € 1,000 | |||
Outstanding Principal Amount | $ 1,086 | $ 1,067 | |||
Unamortized Debt Discount and Debt Issuance Cost | (2) | (3) | |||
Carrying Value | $ 1,084 | $ 1,064 | |||
3.65% Senior Notes due March 2025 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 3.65% | 3.65% | 3.65% | 3.65% | |
Outstanding Principal Amount | $ 500 | $ 500 | |||
Unamortized Debt Discount and Debt Issuance Cost | (1) | (1) | |||
Carrying Value | $ 499 | $ 499 | |||
0.1% (€950 Million) Senior Notes due March 2025 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 0.10% | 0.10% | 0.10% | 0.10% | |
Aggregate principal amount | € | € 950 | € 950 | |||
Outstanding Principal Amount | $ 1,032 | $ 1,014 | |||
Unamortized Debt Discount and Debt Issuance Cost | (3) | (3) | |||
Carrying Value | $ 1,029 | $ 1,011 | |||
3.6% Senior Notes due June 2026 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 3.60% | 3.60% | 3.60% | 3.60% | |
Outstanding Principal Amount | $ 1,000 | $ 1,000 | |||
Unamortized Debt Discount and Debt Issuance Cost | (3) | (3) | |||
Carrying Value | $ 997 | $ 997 | |||
4.0% (€750 Million) Senior Notes due November 2026 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 4% | 4% | 4% | 4% | |
Aggregate principal amount | € | € 750 | € 750 | |||
Outstanding Principal Amount | $ 815 | $ 800 | |||
Unamortized Debt Discount and Debt Issuance Cost | (4) | (3) | |||
Carrying Value | $ 811 | $ 797 | |||
1.8% (€1 Billion) Senior Notes due March 2027 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 1.80% | 1.80% | 1.80% | 1.80% | |
Aggregate principal amount | € | € 1,000 | € 1,000 | |||
Outstanding Principal Amount | $ 1,086 | $ 1,067 | |||
Unamortized Debt Discount and Debt Issuance Cost | (2) | (2) | |||
Carrying Value | $ 1,084 | $ 1,065 | |||
3.55% Senior Notes due March 2028 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 3.55% | 3.55% | 3.55% | 3.55% | |
Outstanding Principal Amount | $ 500 | $ 500 | |||
Unamortized Debt Discount and Debt Issuance Cost | (2) | (2) | |||
Carrying Value | $ 498 | $ 498 | |||
0.5% (€750 Million) Senior Notes due March 2028 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 0.50% | 0.50% | 0.50% | 0.50% | |
Aggregate principal amount | € | € 750 | € 750 | |||
Outstanding Principal Amount | $ 815 | $ 800 | |||
Unamortized Debt Discount and Debt Issuance Cost | (4) | (3) | |||
Carrying Value | $ 811 | $ 797 | |||
4.25% (€750 Million) Senior Notes due May 2029 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 4.25% | 4.25% | 4.25% | 4.25% | |
Aggregate principal amount | € | € 750 | € 750 | |||
Outstanding Principal Amount | $ 815 | $ 800 | |||
Unamortized Debt Discount and Debt Issuance Cost | (6) | (6) | |||
Carrying Value | $ 809 | $ 794 | |||
4.625% Senior Notes due April 2030 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 4.625% | 4.625% | 4.625% | 4.625% | |
Outstanding Principal Amount | $ 1,500 | $ 1,500 | |||
Unamortized Debt Discount and Debt Issuance Cost | (8) | (9) | |||
Carrying Value | $ 1,492 | $ 1,491 | |||
4.5% (€1 Billion) Senior Notes due November 2031 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 4.50% | 4.50% | 4.50% | 4.50% | |
Aggregate principal amount | € | € 1,000 | € 1,000 | |||
Outstanding Principal Amount | $ 1,086 | $ 1,067 | |||
Unamortized Debt Discount and Debt Issuance Cost | (6) | (7) | |||
Carrying Value | $ 1,080 | $ 1,060 | |||
4.75% (€1 Billion) Senior Notes due November 2034 | Senior Notes | |||||
Debt Instrument | |||||
Stated interest rate | 4.75% | 4.75% | 4.75% | 4.75% | |
Aggregate principal amount | € | € 1,000 | € 1,000 | |||
Outstanding Principal Amount | $ 1,086 | $ 1,067 | |||
Unamortized Debt Discount and Debt Issuance Cost | (8) | (9) | |||
Carrying Value | $ 1,078 | $ 1,058 |
DEBT - Summary of Interest Expe
DEBT - Summary of Interest Expenses Related To Other Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument | ||
Coupon interest expense | $ 92 | $ 58 |
Amortization of debt discount and debt issuance costs | 3 | 3 |
Total interest expense | $ 95 | $ 61 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Apr. 30, 2020 USD ($) day $ / shares | Aug. 31, 2019 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | |
Level 2 | ||||||||
Debt Instrument | ||||||||
Estimated fair value of outstanding debt | $ 12,500,000,000 | $ 12,500,000,000 | $ 12,400,000,000 | |||||
2.75% Senior Notes due March 2023 | Senior Notes | ||||||||
Debt Instrument | ||||||||
Stated interest rate | 2.75% | |||||||
Senior Notes Due March 2022 | Senior Notes | ||||||||
Debt Instrument | ||||||||
Repayments of senior debt | $ 1,100,000,000 | |||||||
Convertible Debt | ||||||||
Debt Instrument | ||||||||
Weighted-average effective interest rate | 1.20% | 1.20% | ||||||
Convertible Debt | 0.75% Convertible Senior Notes due May 2025 | ||||||||
Debt Instrument | ||||||||
Aggregate principal amount | $ 863,000,000 | |||||||
Stated interest rate | 0.75% | 0.75% | ||||||
Payments of debt issuance costs | $ 19,000,000 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 1,886.44 | |||||||
Ratio of closing share price to conversion price as a condition for conversion of the convertible notes, minimum (Percentage) | 130% | |||||||
Convertible Debt | 0.75% Convertible Senior Notes due May 2025 | Level 2 | ||||||||
Debt Instrument | ||||||||
Estimated fair value of outstanding debt | 1,300,000,000 | $ 1,300,000,000 | $ 1,200,000,000 | |||||
Senior Notes | ||||||||
Debt Instrument | ||||||||
Carrying value of long-term debt | 11,300,000,000 | 11,300,000,000 | 11,600,000,000 | |||||
Senior Notes | 2.75% Senior Notes due March 2023 | ||||||||
Debt Instrument | ||||||||
Repayments of senior debt | 500,000,000 | |||||||
Minimum | Euro-Denominated Debt | Designated as Hedging Instrument | ||||||||
Debt Instrument | ||||||||
Carrying value of the portions of euro-denominated debt designated as a net investment hedge | 5,900,000,000 | $ 5,000,000,000 | ||||||
Minimum | Convertible Debt | 0.75% Convertible Senior Notes due May 2025 | ||||||||
Debt Instrument | ||||||||
Minimum and maximum consecutive days the closing sales price of common stock must exceed a specified percentage of conversion price to trigger conversion feature of note (in days) | day | 20 | |||||||
Additional payment to debt holder, settled In shares, aggregate value | $ 0 | |||||||
Maximum | Euro-Denominated Debt | Designated as Hedging Instrument | ||||||||
Debt Instrument | ||||||||
Carrying value of the portions of euro-denominated debt designated as a net investment hedge | 6,400,000,000 | $ 5,600,000,000 | ||||||
Maximum | Convertible Debt | 0.75% Convertible Senior Notes due May 2025 | ||||||||
Debt Instrument | ||||||||
Minimum and maximum consecutive days the closing sales price of common stock must exceed a specified percentage of conversion price to trigger conversion feature of note (in days) | day | 30 | |||||||
Additional payment to debt holder, settled In shares, aggregate value | $ 235,000,000 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument | ||||||||
Revolving credit facility, maximum borrowing capacity | $ 2,000,000,000 | |||||||
Revolving credit facility, term | 5 years | |||||||
Long-term line of credit | 0 | 0 | 0 | |||||
Letter of Credit | ||||||||
Debt Instrument | ||||||||
Letters of credit issued | $ 16,000,000 | $ 16,000,000 | $ 14,000,000 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) shares in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Remaining authorization to repurchase common stock | $ 21,900,000,000 | $ 21,900,000,000 | |||
Stock repurchase program, expected time to complete (in years) | 4 years | ||||
Authorized stock repurchase programs (in shares) | 878 | 487 | |||
Authorized stock repurchase programs | $ 2,195,000,000 | $ 1,100,000,000 | |||
General authorization for shares withheld on stock award vesting (in shares) | 66 | 73 | |||
General authorization for shares withheld on stock award vesting | $ 173,000,000 | $ 152,000,000 | |||
Treasury stock repurchased but unsettled by period end amount | 100,000,000 | ||||
Payments related to tax withholding for share-based compensation | 158,000,000 | $ 131,000,000 | |||
2019 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Remaining authorization to repurchase common stock | $ 3,900,000,000 | ||||
Amount of common stock repurchases authorized | $ 15,000,000,000 | ||||
2023 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Amount of common stock repurchases authorized | $ 20,000,000,000 | $ 20,000,000,000 | |||
Common Stock Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized stock repurchase programs (in shares) | 812 | 414 | |||
Authorized stock repurchase programs | $ 2,022,000,000 | $ 948,000,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | |||
Effective tax rate, percent | 12.40% | 17.60% | |
Federal statutory tax rate, percent | 21% | 21% | |
Unrecognized tax benefits | $ 58 | $ 184 | |
Unrecognized tax benefits, income tax penalties and interest accrued | $ 7 | $ 43 | |
Tax and Customs Administration, Netherlands | |||
Income Tax Contingency [Line Items] | |||
Federal statutory tax rate, percent | 25.80% | 25.80% | |
Effective income tax rate at innovation box tax rate, percent | 9% | 9% |
CHANGES IN ACCUMULATED OTHER _3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Total AOCI, net of tax | |||
Balance | $ 2,782 | $ 6,178 | |
Total other comprehensive income (loss), net of tax | 0 | (39) | |
Balance | 1,074 | 4,373 | |
Foreign currency translation | |||
Before tax | |||
Balance | (579) | (276) | |
OCI for the period | 105 | (135) | |
Balance | (474) | (411) | |
Tax (expense) benefit | |||
Balance | [1] | 93 | 67 |
OCI for the period | [1] | (21) | 7 |
Balance | [1] | 72 | 74 |
Net Investment Hedges | |||
Before tax | |||
Balance | [2] | 310 | 91 |
OCI for the period | [2] | (113) | 117 |
Balance | [2] | 197 | 208 |
Tax (expense) benefit | |||
Balance | [2] | (81) | (28) |
OCI for the period | [2] | 27 | (27) |
Balance | [2] | (54) | (55) |
Foreign currency translation adjustments | |||
Total AOCI, net of tax | |||
Balance | (257) | (146) | |
Total other comprehensive income (loss), net of tax | (2) | (38) | |
Balance | (259) | (184) | |
Foreign currency translation adjustments | Net Investment Hedging | Foreign Currency Forward | |||
Before tax | |||
Balance | (53) | (53) | |
Balance | (53) | (53) | |
Total AOCI, net of tax | |||
Balance | (35) | (35) | |
Balance | (35) | (35) | |
Net unrealized gains (losses) on available-for-sale securities | |||
Before tax | |||
Balance | (13) | 3 | |
OCI for the period | 3 | (1) | |
Balance | (10) | 2 | |
Tax (expense) benefit | |||
Balance | 3 | (1) | |
OCI for the period | (1) | 0 | |
Balance | 2 | (1) | |
Total AOCI, net of tax | |||
Balance | (10) | 2 | |
Total other comprehensive income (loss), net of tax | 2 | (1) | |
Balance | (8) | 1 | |
Total AOCI | |||
Total AOCI, net of tax | |||
Balance | (267) | (144) | |
Balance | $ (267) | $ (183) | |
[1]The tax benefits relate to foreign currency translation adjustments to the Company's one-time deemed repatriation tax liability recorded at December 31, 2017 and foreign earnings for periods after December 31, 2017 that are subject to U.S. federal and state income tax, resulting from the enactment of the U.S. Tax Cuts and Jobs Act (the "Tax Act").[2]Net investment hedges balance at March 31, 2023 and earlier dates presented above, includes accumulated net losses from fair value adjustments of $35 million ($53 million before tax) associated with previously settled derivatives that were designated as net investment hedges. The remaining balances relate to foreign currency transaction gains (losses) and related tax benefits (expenses) associated with the Company's Euro-denominated debt that is designated as a hedge of the foreign currency exposure of the net investment in certain Euro functional currency subsidiaries (see Note 9). |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ₺ in Millions, € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | 24 Months Ended | 33 Months Ended | |||||||||||
Jun. 30, 2021 USD ($) | Jun. 30, 2021 EUR (€) | Dec. 31, 2019 USD ($) | Dec. 31, 2019 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2019 USD ($) | Dec. 31, 2019 TRY (₺) | Aug. 31, 2021 USD ($) | Aug. 31, 2021 EUR (€) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Mar. 31, 2023 TRY (₺) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 TRY (₺) | |
Commitments and Contingencies | |||||||||||||||
Unrecognized tax benefits | $ 184 | $ 58 | |||||||||||||
Partner liability insurance maximum coverage per occurrence | 1 | ||||||||||||||
Standby Letters of Credit | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Letters of credit and bank guarantees issued | 452 | 786 | |||||||||||||
Italian Tax Audit | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Unrecognized tax benefits | 19 | 19 | € 18 | € 18 | |||||||||||
Italian Tax Audit | Tax Years 2013 Through 2018 | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Tax Assessments | $ 273 | € 251 | |||||||||||||
Italian Tax Audit | Tax Year 2013 | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Payment required to appeal a litigation matter or avoid collection enforcement | $ 11 | € 10 | |||||||||||||
Italian Tax Audit | Tax Years 2014 Through 2018 | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Payment required to appeal a litigation matter or avoid collection enforcement | 70 | € 64 | |||||||||||||
Italian Tax Audit | Tax Years 2013 through 2019 | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Recommended tax assessment | $ 167 | € 154 | |||||||||||||
Italian Tax Audit | Tax Years 2013 Through 2022 | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Loss contingency accrual, current | 47 | 77 | 71 | € 44 | |||||||||||
Turkish Tax Audit | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Loss contingency accrual, current | 11 | ₺ 210 | |||||||||||||
Prepaid assessments required to appeal a litigation matter | $ 6 | 8 | ₺ 149 | ₺ 118 | |||||||||||
Turkish Tax Audit | Tax Years 2012 Through 2018 | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Tax Assessments | $ 44 | ₺ 845 | |||||||||||||
Pension-related litigation | |||||||||||||||
Commitments and Contingencies | |||||||||||||||
Estimated reasonably possible loss in excess of amount accrued | $ 395 | € 364 |
OTHER INCOME (EXPENSE), NET (De
OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Schedule of Investments [Line Items] | |||
Interest and dividend income | $ 228 | $ 3 | |
Net losses on equity securities | [1] | (133) | (987) |
Foreign currency transaction (losses) gains | [2] | (53) | 30 |
Other | 5 | (1) | |
Other income (expense), net | 47 | (955) | |
Foreign currency transaction (losses) gains related to Euro-denominated debt | (26) | $ 30 | |
Meituan | |||
Schedule of Investments [Line Items] | |||
Net loss on equity securities | $ 149 | ||
[1]Includes losses of $149 million related to the sale of Meituan. See Note 5 for additional information related to the net losses on equity securities.[2]Foreign currency transaction (losses) gains include losses of $26 million and gains of $30 million for the three months ended March 31, 2023 and 2022, respectively, related to Euro-denominated debt and accrued interest that were not designated as net investment hedges (see Note 9). |
OTHER - Reconciliation of Cash
OTHER - Reconciliation of Cash and Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |||||
Cash and cash equivalents | $ 14,140 | $ 12,221 | |||
Restricted cash and cash equivalents | [1] | 32 | 30 | ||
Total cash and cash equivalents and restricted cash and cash equivalents as shown in the Unaudited Consolidated Statements of Cash Flows | $ 14,172 | $ 12,251 | $ 10,578 | $ 11,152 | |
[1]Included in "Other current assets" in the Consolidated Balance Sheets. |
OTHER - Narrative (Details)
OTHER - Narrative (Details) $ in Millions, € in Billions | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2021 USD ($) | Nov. 30, 2021 EUR (€) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||
Noncash investing activity related to additions to property and equipment, including stock-based compensation and accrued liabilities | $ 18 | $ 18 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Business Acquisition [Line Items] | ||||
Loss on transaction | $ 36 | |||
Etraveli Group | ||||
Business Acquisition [Line Items] | ||||
Purchase price of pending business acquisition prior to closing | $ 1,800 | € 1.6 |