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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 1-36691
Booking Holdings Inc.
(Exact name of registrant as specified in its charter)
| | | | | |
Delaware | 06-1528493 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
800 Connecticut Avenue
Norwalk, Connecticut 06854
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 299-8000
Former name, former address and former fiscal year, if changed since last report: N/A
_____________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Title of Each Class: | | Trading Symbol(s) | | Name of each exchange on which registered: |
Common Stock par value $0.008 per share | | BKNG | | The NASDAQ Global Select Market |
| | | | |
2.375% Senior Notes Due 2024 | | BKNG 24 | | The NASDAQ Stock Market LLC |
0.100% Senior Notes Due 2025 | | BKNG 25 | | The NASDAQ Stock Market LLC |
4.000% Senior Notes Due 2026 | | BKNG 26 | | The NASDAQ Stock Market LLC |
1.800% Senior Notes Due 2027 | | BKNG 27 | | The NASDAQ Stock Market LLC |
3.625% Senior Notes Due 2028 | | BKNG 28A | | The NASDAQ Stock Market LLC |
0.500% Senior Notes Due 2028 | | BKNG 28 | | The NASDAQ Stock Market LLC |
4.250% Senior Notes Due 2029 | | BKNG 29 | | The NASDAQ Stock Market LLC |
4.500% Senior Notes Due 2031 | | BKNG 31 | | The NASDAQ Stock Market LLC |
4.125% Senior Notes Due 2033 | | BKNG 33 | | The NASDAQ Stock Market LLC |
4.750% Senior Notes Due 2034 | | BKNG 34 | | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | | | | | | | |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ |
Smaller reporting company | ☐ | Emerging growth company | ☐ | | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Number of shares of Common Stock outstanding at October 26, 2023:
| | | | | | | | |
Common Stock, par value $0.008 per share | | 34,889,873 |
(Class) | | (Number of Shares) |
Booking Holdings Inc.
Form 10-Q
For the Three Months Ended September 30, 2023
| | | | | |
PART I - FINANCIAL INFORMATION | |
| |
Item 1. Financial Statements | |
| |
Consolidated Balance Sheets at September 30, 2023 (Unaudited) and December 31, 2022 | |
Consolidated Statements of Operations (Unaudited) For the Three and Nine Months Ended September 30, 2023 and 2022 | |
Consolidated Statements of Comprehensive Income (Unaudited) For the Three and Nine Months Ended September 30, 2023 and 2022 | |
Consolidated Statements of Changes in Stockholders' (Deficit) Equity (Unaudited) For the Three and Nine Months Ended September 30, 2023 and 2022 | |
Consolidated Statements of Cash Flows (Unaudited) For the Nine Months Ended September 30, 2023 and 2022 | |
Notes to Unaudited Consolidated Financial Statements | |
| |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
| |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | |
| |
Item 4. Controls and Procedures | |
| |
PART II - OTHER INFORMATION | |
| |
Item 1. Legal Proceedings | |
| |
Item 1A. Risk Factors | |
| |
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities | |
| |
Item 5. Other Information | |
| |
Item 6. Exhibits | |
| |
SIGNATURES | |
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
Booking Holdings Inc.
CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share data)
| | | | | | | | | | | | | | |
| | September 30, 2023 | | December 31, 2022 |
| | (Unaudited) | | |
ASSETS | | | | |
Current assets: | | | | |
Cash and cash equivalents | | $ | 13,294 | | | $ | 12,221 | |
Short-term investments (Available-for-sale debt securities: Amortized cost of $632 and $176, respectively) | | 624 | | | 175 | |
Accounts receivable, net (Allowance for expected credit losses of $116 and $117, respectively) | | 3,447 | | | 2,229 | |
Prepaid expenses, net | | 680 | | | 477 | |
Other current assets | | 434 | | | 696 | |
Total current assets | | 18,479 | | | 15,798 | |
Property and equipment, net | | 733 | | | 669 | |
Operating lease assets | | 643 | | | 645 | |
Intangible assets, net | | 1,660 | | | 1,829 | |
Goodwill | | 2,804 | | | 2,807 | |
Long-term investments (Includes available-for-sale debt securities: Amortized cost of $576 at December 31, 2022) | | 420 | | | 2,789 | |
Other assets, net | | 896 | | | 824 | |
Total assets | | $ | 25,635 | | | $ | 25,361 | |
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | | | | |
Current liabilities: | | | | |
Accounts payable | | $ | 3,020 | | | $ | 2,507 | |
Accrued expenses and other current liabilities | | 4,182 | | | 3,244 | |
Deferred merchant bookings | | 3,717 | | | 2,223 | |
Short-term debt | | 1,913 | | | 500 | |
Total current liabilities | | 12,832 | | | 8,474 | |
Deferred income taxes | | 350 | | | 685 | |
Operating lease liabilities | | 547 | | | 552 | |
Long-term U.S. transition tax liability | | 515 | | | 711 | |
Other long-term liabilities | | 160 | | | 172 | |
Long-term debt | | 11,856 | | | 11,985 | |
Total liabilities | | 26,260 | | | 22,579 | |
Commitments and contingencies (see Note 13) | | | | |
| | | | |
Stockholders' (deficit) equity: | | | | |
Common stock, $0.008 par value, Authorized shares: 1,000,000,000 Issued shares: 64,032,162 and 63,780,528, respectively | | — | | | — | |
Treasury stock: 28,843,826 and 25,917,558 shares, respectively | | (38,944) | | | (30,983) | |
Additional paid-in capital | | 6,996 | | | 6,491 | |
Retained earnings | | 31,608 | | | 27,541 | |
Accumulated other comprehensive loss | | (285) | | | (267) | |
Total stockholders' (deficit) equity | | (625) | | | 2,782 | |
Total liabilities and stockholders' (deficit) equity | | $ | 25,635 | | | $ | 25,361 | |
See Notes to Unaudited Consolidated Financial Statements.
Booking Holdings Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share and per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
Merchant revenues | | $ | 3,945 | | | $ | 2,614 | | | $ | 8,467 | | | $ | 5,413 | |
Agency revenues | | 3,135 | | | 3,203 | | | 7,346 | | | 6,954 | |
Advertising and other revenues | | 261 | | | 235 | | | 768 | | | 674 | |
Total revenues | | 7,341 | | | 6,052 | | | 16,581 | | | 13,041 | |
Operating expenses: | | | | | | | | |
Marketing expenses | | 2,022 | | | 1,795 | | | 5,340 | | | 4,679 | |
Sales and other expenses | | 723 | | | 540 | | | 1,931 | | | 1,344 | |
Personnel, including stock-based compensation of $128, $101, $369, and $302, respectively | | 788 | | | 636 | | | 2,262 | | | 1,867 | |
General and administrative | | 387 | | | 262 | | | 980 | | | 627 | |
Information technology | | 187 | | | 129 | | | 468 | | | 400 | |
Depreciation and amortization | | 129 | | | 109 | | | 370 | | | 327 | |
Restructuring, disposal, and other exit activities | | 2 | | | (2) | | | 4 | | | 40 | |
| | | | | | | | |
Total operating expenses | | 4,238 | | | 3,469 | | | 11,355 | | | 9,284 | |
Operating income | | 3,103 | | | 2,583 | | | 5,226 | | | 3,757 | |
| | | | | | | | |
Interest expense | | (254) | | | (102) | | | (689) | | | (246) | |
Other income (expense), net | | 300 | | | (305) | | | 533 | | | (1,040) | |
| | | | | | | | |
Income before income taxes | | 3,149 | | | 2,176 | | | 5,070 | | | 2,471 | |
Income tax expense | | 638 | | | 510 | | | 1,003 | | | 648 | |
Net income | | $ | 2,511 | | | $ | 1,666 | | | $ | 4,067 | | | $ | 1,823 | |
Net income applicable to common stockholders per basic common share | | $ | 70.62 | | | $ | 42.10 | | | $ | 111.09 | | | $ | 45.20 | |
Weighted-average number of basic common shares outstanding (in 000's) | | 35,570 | | | 39,564 | | | 36,615 | | | 40,326 | |
Net income applicable to common stockholders per diluted common share | | $ | 69.80 | | | $ | 41.98 | | | $ | 110.02 | | | $ | 45.00 | |
Weighted-average number of diluted common shares outstanding (in 000's) | | 35,987 | | | 39,671 | | | 36,971 | | | 40,504 | |
| | | | | | | | |
See Notes to Unaudited Consolidated Financial Statements.
Booking Holdings Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
Net income | | $ | 2,511 | | | $ | 1,666 | | | $ | 4,067 | | | $ | 1,823 | |
Other comprehensive income (loss), net of tax | | | | | | | | |
Foreign currency translation adjustments | | 4 | | | (127) | | | (22) | | | (235) | |
| | | | | | | | |
Net unrealized gains (losses) on available-for-sale securities | | 2 | | | (12) | | | 4 | | | (12) | |
Total other comprehensive income (loss), net of tax | | 6 | | | (139) | | | (18) | | | (247) | |
Comprehensive income | | $ | 2,517 | | | $ | 1,527 | | | $ | 4,049 | | | $ | 1,576 | |
See Notes to Unaudited Consolidated Financial Statements.
Booking Holdings Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY
(In millions, except share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Common Stock | | Treasury Stock | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss | | Total |
Three Months Ended September 30, 2023 | | Shares (in 000's) | | Amount | | Shares (in 000's) | | Amount | | | | |
| | | | | | | | | | | | | | | | |
Balance, June 30, 2023 | | 64,015 | | | $ | — | | | (27,974) | | | $ | (36,319) | | | $ | 6,848 | | | $ | 29,097 | | | $ | (291) | | | $ | (665) | |
| | | | | | | | | | | | | | | | |
Net income | | — | | | — | | | — | | | — | | | — | | | 2,511 | | | — | | | 2,511 | |
Foreign currency translation adjustments, net of tax | | — | | | — | | | — | | | — | | | — | | | — | | | 4 | | | 4 | |
| | | | | | | | | | | | | | | | |
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 | | 17 | | | — | | | — | | | — | | | 13 | | | — | | | — | | | 13 | |
Repurchase of common stock | | — | | | — | | | (870) | | | (2,625) | | | — | | | — | | | — | | | (2,625) | |
Stock-based compensation and other stock-based payments | | — | | | — | | | — | | | — | | | 135 | | | — | | | — | | | 135 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Balance, September 30, 2023 | | 64,032 | | | $ | — | | | (28,844) | | | $ | (38,944) | | | $ | 6,996 | | | $ | 31,608 | | | $ | (285) | | | $ | (625) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
Nine Months Ended September 30, 2023 | | | | | | | | | | | | | | | | |
Balance, December 31, 2022 | | 63,781 | | | $ | — | | | (25,918) | | | $ | (30,983) | | | $ | 6,491 | | | $ | 27,541 | | | $ | (267) | | | $ | 2,782 | |
| | | | | | | | | | | | | | | | |
Net income | | — | | | — | | | — | | | — | | | — | | | 4,067 | | | — | | | 4,067 | |
Foreign currency translation adjustments, net of tax | | — | | | — | | | — | | | — | | | — | | | — | | | (22) | | | (22) | |
| | | | | | | | | | | | | | | | |
Net unrealized gains on available-for-sale securities, net of tax | | — | | | — | | | — | | | — | | | — | | | — | | | 4 | | | 4 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Exercise of stock options and vesting of restricted stock units and performance share units | | 251 | | | — | | | — | | | — | | | 122 | | | — | | | — | | | 122 | |
Repurchase of common stock | | — | | | — | | | (2,926) | | | (7,961) | | | — | | | — | | | — | | | (7,961) | |
Stock-based compensation and other stock-based payments | | — | | | — | | | — | | | — | | | 383 | | | — | | | — | | | 383 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Balance, September 30, 2023 | | 64,032 | | | $ | — | | | (28,844) | | | $ | (38,944) | | | $ | 6,996 | | | $ | 31,608 | | | $ | (285) | | | $ | (625) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | Common Stock | | Treasury Stock | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss | | |
Three Months Ended September 30, 2022 | | Shares (in 000's) | | Amount | | Shares (in 000's) | | Amount | | | | | Total |
Balance, June 30, 2022 | | 63,766 | | | $ | — | | | (23,618) | | | $ | (26,664) | | | $ | 6,278 | | | $ | 24,640 | | | $ | (252) | | | $ | 4,002 | |
| | | | | | | | | | | | | | | | |
Net income | | — | | | — | | | — | | | — | | | — | | | 1,666 | | | — | | | 1,666 | |
Foreign currency translation adjustments, net of tax | | — | | | — | | | — | | | — | | | — | | | — | | | (127) | | | (127) | |
| | | | | | | | | | | | | | | | |
Net unrealized losses on available-for-sale securities, net of tax | | — | | | — | | | — | | | — | | | — | | | — | | | (12) | | | (12) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Exercise of stock options and vesting of restricted stock units and performance share units | | 8 | | | — | | | — | | | — | | | 2 | | | — | | | — | | | 2 | |
Repurchase of common stock | | — | | | — | | | (1,067) | | | (1,966) | | | — | | | — | | | — | | | (1,966) | |
Stock-based compensation and other stock-based payments | | — | | | — | | | — | | | — | | | 105 | | | — | | | — | | | 105 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Balance, September 30, 2022 | | 63,774 | | | $ | — | | | (24,685) | | | $ | (28,630) | | | $ | 6,385 | | | $ | 26,306 | | | $ | (391) | | | $ | 3,670 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
Nine Months Ended September 30, 2022 | | | | | | | | | | | | | | | | |
Balance, December 31, 2021 | | 63,584 | | | $ | — | | | (22,518) | | | $ | (24,290) | | | $ | 6,159 | | | $ | 24,453 | | | $ | (144) | | | $ | 6,178 | |
Cumulative effect of adoption of accounting standards update | | — | | | — | | | — | | | — | | | (96) | | | 30 | | | — | | | (66) | |
Net income | | — | | | — | | | — | | | — | | | — | | | 1,823 | | | — | | | 1,823 | |
Foreign currency translation adjustments, net of tax | | — | | | — | | | — | | | — | | | — | | | — | | | (235) | | | (235) | |
| | | | | | | | | | | | | | | | |
Net unrealized losses on available-for-sale securities, net of tax | | — | | | — | | | — | | | — | | | — | | | — | | | (12) | | | (12) | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Exercise of stock options and vesting of restricted stock units and performance share units | | 190 | | | — | | | — | | | — | | | 7 | | | — | | | — | | | 7 | |
Repurchase of common stock | | — | | | — | | | (2,167) | | | (4,340) | | | — | | | — | | | — | | | (4,340) | |
Stock-based compensation and other stock-based payments | | — | | | — | | | — | | | — | | | 315 | | | — | | | — | | | 315 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Balance, September 30, 2022 | | 63,774 | | | $ | — | | | (24,685) | | | $ | (28,630) | | | $ | 6,385 | | | $ | 26,306 | | | $ | (391) | | | $ | 3,670 | |
See Notes to Unaudited Consolidated Financial Statements.
Booking Holdings Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
| | | | | | | | | | | | | | |
| | Nine Months Ended September 30, |
| | 2023 | | 2022 |
OPERATING ACTIVITIES: | | | | |
Net income | | $ | 4,067 | | | $ | 1,823 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
Depreciation and amortization | | 370 | | | 327 | |
Provision for expected credit losses and chargebacks | | 224 | | | 179 | |
Deferred income tax benefit | | (409) | | | (246) | |
Net losses on equity securities | | 151 | | | 1,142 | |
Stock-based compensation expense and other stock-based payments | | 369 | | | 302 | |
Operating lease amortization | | 120 | | | 117 | |
| | | | |
Unrealized foreign currency transaction gains related to Euro-denominated debt | | (2) | | | (70) | |
| | | | |
| | | | |
| | | | |
Other | | 3 | | | 40 | |
Changes in assets and liabilities: | | | | |
Accounts receivable | | (1,506) | | | (1,358) | |
Prepaid expenses and other current assets | | 96 | | | (424) | |
Deferred merchant bookings and other current liabilities | | 2,644 | | | 3,591 | |
| | | | |
Long-term assets and liabilities | | (129) | | | (1,042) | |
Net cash provided by operating activities | | 5,998 | | | 4,381 | |
INVESTING ACTIVITIES: | | | | |
Purchase of investments | | (12) | | | (751) | |
Proceeds from sale and maturity of investments | | 1,785 | | | 30 | |
Additions to property and equipment | | (251) | | | (293) | |
Other investing activities | | 3 | | | (14) | |
Net cash provided by (used in) investing activities | | 1,525 | | | (1,028) | |
FINANCING ACTIVITIES: | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from the issuance of long-term debt | | 1,893 | | | — | |
| | | | |
Payment on maturity of debt | | (500) | | | (1,102) | |
Payments for repurchase of common stock | | (7,889) | | | (4,278) | |
| | | | |
Proceeds from exercise of stock options | | 122 | | | 7 | |
Other financing activities | | (45) | | | (3) | |
Net cash used in financing activities | | (6,419) | | | (5,376) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents | | (29) | | | (83) | |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | | 1,075 | | | (2,106) | |
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 | | $ | 13,326 | | | $ | 9,046 | |
SUPPLEMENTAL CASH FLOW INFORMATION: | | | | |
Cash paid during the period for income taxes | | $ | 1,573 | | | $ | 501 | |
Cash paid during the period for interest | | $ | 557 | | | $ | 240 | |
See Notes to Unaudited Consolidated Financial Statements.
Booking Holdings Inc.
Notes to Unaudited Consolidated Financial Statements
1. 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.
2. REVENUE
Disaggregation of Revenue
Geographic Information
The Company's revenues 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 September 30, | | | | | | | | |
2023 | | $ | 633 | | | $ | 6,127 | | | $ | 581 | | | $ | 7,341 | |
2022 | | $ | 606 | | | $ | 4,991 | | | $ | 455 | | | $ | 6,052 | |
| | | | | | | | |
Total revenues for the nine months ended September 30, | | | | | | | | |
2023 | | $ | 1,771 | | | $ | 13,326 | | | $ | 1,484 | | | $ | 16,581 | |
2022 | | $ | 1,675 | | | $ | 10,300 | | | $ | 1,066 | | | $ | 13,041 | |
Revenue by Type of Service
Approximately 89% of the Company's revenues for the three and nine months ended September 30, 2023 and 90% and 88% of the Company's revenues for the three and nine months ended September 30, 2022, respectively, relate to online accommodation reservation services. Revenues 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 September 30, 2023 and December 31, 2022, liabilities of $183 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.
3. 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 nine months ended September 30, 2023 had an aggregate grant-date fair value of $574 million. Restricted stock units and performance share units that vested during the nine months ended September 30, 2023 had an aggregate fair value at vesting of $436 million. At September 30, 2023, there was $748 million 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 1.9 years.
The following table summarizes the activity in restricted stock units and performance share units for employees and non-employee directors during the nine months ended September 30, 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) | | 165,427 | | $2,629 | | 51,941 | | $2,679 |
Vested | | (133,767) | | $2,021 | | (30,118) | | $2,327 |
Performance shares adjustment (3) | | | | | | 33,096 | | $2,411 |
Forfeited | | (13,903) | | $2,315 | | (7,141) | | $2,262 |
Unvested at September 30, 2023 | | 298,217 | | $2,391 | | 191,480 | | $2,415 |
(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 nine months ended September 30, 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Employee Stock Options | | Number of Shares | | Weighted-average Exercise Price | | Aggregate Intrinsic Value (in millions) | | Weighted-average Remaining Contractual Term (in years) |
Balance, December 31, 2022 | | 120,813 | | | $1,408 | | $ | 73 | | | 7.3 |
| | | | | | | | |
Exercised | | (86,763) | | | $1,407 | | | | |
Forfeited | | (62) | | | $1,411 | | | | |
| | | | | | | | |
Balance, September 30, 2023 | | 33,988 | | | $1,411 | | $ | 57 | | | 6.6 |
Exercisable at September 30, 2023 | | 33,988 | | | $1,411 | | $ | 57 | | | 6.6 |
The aggregate intrinsic value of employee stock options exercised during the nine months ended September 30, 2023 was $110 million.
4. NET INCOME PER SHARE
The Company computes basic net income per share by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income per share is based upon the weighted-average number of common and common equivalent shares outstanding during the period. Only dilutive common equivalent shares that decrease the net income per share are included in the computation of diluted net income per share.
Common equivalent shares related to stock options, restricted stock units, and performance share units are calculated using the treasury stock method. Performance share units are included in the weighted-average common equivalent shares based on the number of shares that would be issued if the end of the reporting period were the end of the performance period, if the result would be dilutive.
The Company's convertible senior notes have net share settlement features requiring the Company, upon conversion, to settle the principal amount of the debt for cash and the conversion premium for cash or shares of the Company's common stock, at the Company's option. If the conversion prices for the convertible senior notes exceed the Company's average stock price for the period, the convertible senior notes generally have no impact on diluted net income per share. The Company uses the if-converted method for the convertible senior notes in the calculation of diluted net income per share.
A reconciliation of the weighted-average number of shares outstanding used in calculating diluted net income per share is as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
Weighted-average number of basic common shares outstanding | | 35,570 | | | 39,564 | | | 36,615 | | | 40,326 | |
Weighted-average dilutive stock options, restricted stock units, and performance share units | | 231 | | | 107 | | | 211 | | | 149 | |
Assumed conversion of convertible senior notes | | 186 | | | — | | | 145 | | | 29 | |
Weighted-average number of diluted common and common equivalent shares outstanding | | 35,987 | | | 39,671 | | | 36,971 | | | 40,504 | |
| | | | | | | | |
5. INVESTMENTS
The following table summarizes the Company's investments by major security type at September 30, 2023 (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Cost | | Gross Unrealized Gains /Upward Adjustments | | Gross Unrealized Losses /Downward Adjustments | | Carrying Value |
Short-term investments: | | | | | | | | |
Debt securities: | | | | | | | | |
International government securities | | $ | 73 | | | $ | — | | | $ | (1) | | | $ | 72 | |
U.S. government securities (1) | | 185 | | | — | | | (2) | | | 183 | |
Corporate debt securities | | 374 | | | — | | | (5) | | | 369 | |
| | | | | | | | |
Total short-term investments | | $ | 632 | | | $ | — | | | $ | (8) | | | $ | 624 | |
| | | | | | | | |
Long-term investments: | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Equity securities: | | | | | | | | |
Equity securities with readily determinable fair values | | $ | 715 | | | $ | — | | | $ | (424) | | | $ | 291 | |
Equity securities of private companies | | 78 | | | 259 | | | (208) | | | 129 | |
| | | | | | | | |
Total long-term investments | | $ | 793 | | | $ | 259 | | | $ | (632) | | | $ | 420 | |
(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 Unrealized Gains/Upward Adjustments | | 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 September 30, 2023, the Company's investments in debt securities had an average credit quality of AA-/Aa2/A+. The Company invests in international government securities with high credit quality. At September 30, 2023, investments in international government securities principally included debt securities issued by the governments of Germany, France, Norway, Canada, and Sweden.
Equity securities with readily determinable fair values at September 30, 2023 include the Company's investments in Grab Holdings Limited ("Grab") and DiDi Global Inc. ("DiDi"), 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 Grab, DiDi, and Meituan, with fair values of $136 million, $125 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 and nine months ended September 30, 2023 and 2022 were as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
| | | | | | | | |
Grab | | $ | 5 | | | $ | 4 | | | $ | 14 | | | $ | (190) | |
DiDi | | 9 | | | (44) | | | 2 | | | (123) | |
Meituan | | — | | | (294) | | | — | | | (629) | |
During the nine months ended September 30, 2023, the Company sold its entire investment in Meituan for $1.7 billion, resulting in a loss of $149 million included in "Other income (expense), net" in the Unaudited Consolidated Statement of Operations for the nine months ended September 30, 2023. The cost basis of the Company's investment in Meituan was $450 million.
Investments in equity securities without readily determinable fair values are measured at cost less impairment, if any. Such investments are also required to be measured at fair value as of the date of certain observable transactions for the identical or a similar investment of the same issuer. The Company's investments in equity securities of private companies at September 30, 2023 and December 31, 2022, include $51 million originally invested in Yanolja Co., Ltd. ("Yanolja"). The Company evaluated its investment in Yanolja for impairment as of June 30, 2023 and 2022 and recognized impairment charges of $24 million and $184 million during the nine months ended September 30, 2023 and 2022, respectively (see Note 6). The carrying value of the Company's investment in Yanolja was $98 million and $122 million as of September 30, 2023 and December 31, 2022, respectively.
6. 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 September 30, 2023 and nonrecurring fair value measurements are classified in the categories described in the table below (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Level 1 | | Level 2 | | Level 3 | | Total |
| | | | | | | | |
Recurring fair value measurements | | | | | | | | |
ASSETS: | | | | | | | | |
Cash equivalents and restricted cash equivalents: | | | | | | | | |
Money market fund investments | | $ | 12,105 | | | $ | — | | | $ | — | | | $ | 12,105 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Certificates of deposit | | 79 | | | — | | | — | | | 79 | |
Short-term investments: | | | | | | | | |
International government securities | | — | | | 72 | | | — | | | 72 | |
U.S. government securities | | — | | | 183 | | | — | | | 183 | |
Corporate debt securities | | — | | | 369 | | | — | | | 369 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Long-term investments: | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Equity securities | | 291 | | | — | | | — | | | 291 | |
Derivatives: | | | | | | | | |
Foreign currency exchange derivatives | | — | | | 52 | | | — | | | 52 | |
Total assets at fair value | | $ | 12,475 | | | $ | 676 | | | $ | — | | | $ | 13,151 | |
| | | | | | | | |
LIABILITIES: | | | | | | | | |
Foreign currency exchange derivatives | | $ | — | | | $ | 102 | | | $ | — | | | $ | 102 | |
| | | | | | | | |
Nonrecurring fair value measurements | | | | | | | | |
Investment in equity securities of a private company (1) | | $ | — | | | $ | — | | | $ | 98 | | | $ | 98 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
(1) During the three months ended June 30, 2023, the investment in Yanolja was written down to its estimated fair value (see Note 5).
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 | | 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.
Investments in private companies measured using Level 3 inputs
The Company's investments measured using Level 3 inputs primarily consist of investments in privately-held companies that are classified as equity securities without readily determinable fair values. Fair values of privately held securities are estimated using a variety of valuation methodologies, including both the market and income approaches. The Company uses valuation techniques appropriate for the type of investment and the information available about the investee as of the valuation date to determine fair value. While observable financing transactions of the investee are generally considered the best indication of the enterprise value, considering factors such as the proximity in timing of the financing transaction to the valuation date, the Company may also use the calibration process and other valuation techniques to supplement this data, including the income approach. Calibration is the process of using observed transactions in the investee company's own instruments to ensure that the valuation techniques that will be employed to value the investment on subsequent measurement dates begin with assumptions that are consistent with the observed transactions.
As of June 30, 2023 and 2022, the Company evaluated its investment in Yanolja for impairment using a combination of the market approach and the income approach in estimating the fair value of the investment as of those dates, and recognized impairment charges. The market approach estimates value using prices and other relevant information generated by market transactions involving comparable companies. The income approach estimates value based on the expectation of future cash flows that a company will generate. These future cash flows are discounted to their present values using a discount rate based on a company's weighted-average cost of capital adjusted to reflect the risks inherent in its cash flows. The key unobservable inputs and ranges used for the June 2023 impairment evaluation, primarily using the income approach, include the weighted average cost of capital (10.5%-14.5%) and the terminal EBITDA multiple (14x-16x). The key unobservable inputs and ranges used for the June 2022 impairment evaluation include, for the market approach, percentage decrease in the calibrated EBITDA multiple (36%) and for the income approach, the weighted average cost of capital (10%-14%) and the terminal EBITDA multiple (14x-16x). Significant changes in any of these inputs in isolation would result in significantly different fair value measurements. A change in the assumption used for EBITDA multiples would result in a directionally similar change in the fair
value, and a change in the assumption used for weighted average cost of capital would result in a directionally opposite change in the fair value.
The determination of the fair values of investments, where the Company is a minority shareholder and has access to limited information from the investee, reflects numerous assumptions that are subject to various risks and uncertainties, including key assumptions regarding the investee's expected growth rates and operating margin, as well as other key assumptions with respect to matters outside of the Company's control, such as discount rates and market comparables. It requires significant judgments and estimates and actual results could be materially different than those judgments and estimates utilized in the fair value estimate. Future events and changing market conditions may lead the Company to re-evaluate the assumptions reflected in the valuation which may result in a need to recognize additional impairment charges.
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 September 30, 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 September 30, 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.
| | | | | | | | | | | | | | |
| | September 30, 2023 | | December 31, 2022 |
Estimated fair value of derivative assets | | $ | 52 | | | $ | 65 | |
Estimated fair value of derivative liabilities | | $ | 102 | | | $ | 26 | |
| | | | |
Notional amount: | | | | |
Foreign currency purchases | | $ | 4,475 | | | $ | 2,870 | |
Foreign currency sales | | $ | 3,957 | | | $ | 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 and nine months ended September 30, 2023 and 2022 is as follows (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
Losses on foreign currency exchange derivatives | | $ | 56 | | | $ | 58 | | | $ | 140 | | | $ | 114 | |
Other Financial Assets and Liabilities
At September 30, 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.
7. ACCOUNTS RECEIVABLE AND OTHER FINANCIAL ASSETS
Accounts receivable in the Consolidated Balance Sheets at September 30, 2023 and December 31, 2022 includes receivables from customers of $2.5 billion and $1.5 billion, respectively, and receivables from payment processors and networks of $909 million and $730 million, respectively. The remaining balance principally relates to receivables from marketing affiliates. 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):
| | | | | | | | | | | | | | |
| | Nine Months Ended September 30, |
| | 2023 | | 2022 |
Balance, beginning of year | | $ | 117 | | | $ | 101 | |
Provision charged to earnings | | 103 | | | 104 | |
Write-offs and adjustments | | (103) | | | (75) | |
Foreign currency translation adjustments | | (1) | | | (11) | |
Balance, end of period | | $ | 116 | | | $ | 119 | |
8. INTANGIBLE ASSETS AND GOODWILL
The Company's intangible assets at September 30, 2023 and December 31, 2022 consist of the following (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| September 30, 2023 | | December 31, 2022 | | |
| Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Amortization Period |
Trade names | $ | 1,805 | | | $ | (883) | | | $ | 922 | | | $ | 1,806 | | | $ | (812) | | | $ | 994 | | | 3 - 20 years |
Supply and distribution agreements | 1,383 | | | (723) | | | 660 | | | 1,386 | | | (658) | | | 728 | | | 3 - 20 years |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Technology and other intangible assets | 327 | | | (249) | | | |