Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Expedia Group Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Goodwill	7,171)	7,380)	8,127)	8,120)	8,229)
Intangible assets with indefinite lives	1,166)	1,183)	1,284)	1,400)	1,479)
Customer relationships	565)	638)	658)	659)	665)
Supplier relationships	626)	661)	651)	650)	655)
Domain names	164)	173)	183)	159)	132)
Other	1,016)	1,075)	1,092)	994)	984)
Intangible assets with definite lives, cost	2,371)	2,547)	2,584)	2,462)	2,436)
Accumulated amortization	(2,144)	(2,215)	(2,064)	(1,870)	(1,606)
Intangible assets with definite lives, net	227)	332)	520)	592)	830)
Intangible assets, net	1,393)	1,515)	1,804)	1,992)	2,309)
Goodwill and intangible assets, net	8,564)	8,895)	9,931)	10,112)	10,537)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Expedia Group Inc. goodwill decreased from 2019 to 2020 and from 2020 to 2021.
Intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Expedia Group Inc. intangible assets, net decreased from 2019 to 2020 and from 2020 to 2021.
Goodwill and intangible assets, net	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Expedia Group Inc. goodwill and intangible assets, net decreased from 2019 to 2020 and from 2020 to 2021.

Expedia Group Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported)	21,548)	18,690)	21,416)	18,033)	18,516)
Less: Goodwill	7,171)	7,380)	8,127)	8,120)	8,229)
Total assets (adjusted)	14,377)	11,310)	13,289)	9,913)	10,287)
Adjustment to Total Expedia Group, Inc. Stockholders’ Equity
Total Expedia Group, Inc. stockholders’ equity (as reported)	2,057)	2,532)	3,967)	4,104)	4,522)
Less: Goodwill	7,171)	7,380)	8,127)	8,120)	8,229)
Total Expedia Group, Inc. stockholders’ equity (adjusted)	(5,114)	(4,848)	(4,160)	(4,016)	(3,707)
Adjustment to Net Income (loss) Attributable To Expedia Group, Inc.
Net income (loss) attributable to Expedia Group, Inc. (as reported)	12)	(2,612)	565)	406)	378)
Add: Goodwill impairment charges	14)	799)	—)	86)	—)
Net income (loss) attributable to Expedia Group, Inc. (adjusted)	26)	(1,813)	565)	492)	378)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Expedia Group Inc., Financial Data: Reported vs. Adjusted

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Expedia Group Inc., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net Profit Margin
Reported net profit margin	0.14%	-50.24%	4.68%	3.62%	3.76%
Adjusted net profit margin	0.30%	-34.87%	4.68%	4.38%	3.76%
Total Asset Turnover
Reported total asset turnover	0.40	0.28	0.56	0.62	0.54
Adjusted total asset turnover	0.60	0.46	0.91	1.13	0.98
Financial Leverage
Reported financial leverage	10.48	7.38	5.40	4.39	4.09
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	0.58%	-103.16%	14.24%	9.89%	8.36%
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	0.06%	-13.98%	2.64%	2.25%	2.04%
Adjusted ROA	0.18%	-16.03%	4.25%	4.96%	3.67%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Expedia Group Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Expedia Group Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Expedia Group Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Expedia Group Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Expedia Group, Inc.	12)	(2,612)	565)	406)	378)
Revenue	8,598)	5,199)	12,067)	11,223)	10,060)
Profitability Ratio
Net profit margin¹	0.14%	-50.24%	4.68%	3.62%	3.76%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Expedia Group, Inc.	26)	(1,813)	565)	492)	378)
Revenue	8,598)	5,199)	12,067)	11,223)	10,060)
Profitability Ratio
Adjusted net profit margin²	0.30%	-34.87%	4.68%	4.38%	3.76%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to Expedia Group, Inc. ÷ Revenue
= 100 × 12 ÷ 8,598 = 0.14%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Expedia Group, Inc. ÷ Revenue
= 100 × 26 ÷ 8,598 = 0.30%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Expedia Group Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenue	8,598)	5,199)	12,067)	11,223)	10,060)
Total assets	21,548)	18,690)	21,416)	18,033)	18,516)
Activity Ratio
Total asset turnover¹	0.40	0.28	0.56	0.62	0.54
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue	8,598)	5,199)	12,067)	11,223)	10,060)
Adjusted total assets	14,377)	11,310)	13,289)	9,913)	10,287)
Activity Ratio
Adjusted total asset turnover²	0.60	0.46	0.91	1.13	0.98

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 8,598 ÷ 21,548 = 0.40

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 8,598 ÷ 14,377 = 0.60

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Expedia Group Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets	21,548)	18,690)	21,416)	18,033)	18,516)
Total Expedia Group, Inc. stockholders’ equity	2,057)	2,532)	3,967)	4,104)	4,522)
Solvency Ratio
Financial leverage¹	10.48	7.38	5.40	4.39	4.09
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	14,377)	11,310)	13,289)	9,913)	10,287)
Adjusted total Expedia Group, Inc. stockholders’ equity	(5,114)	(4,848)	(4,160)	(4,016)	(3,707)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Financial leverage = Total assets ÷ Total Expedia Group, Inc. stockholders’ equity
= 21,548 ÷ 2,057 = 10.48

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Expedia Group, Inc. stockholders’ equity
= 14,377 ÷ -5,114 = —

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Expedia Group, Inc.	12)	(2,612)	565)	406)	378)
Total Expedia Group, Inc. stockholders’ equity	2,057)	2,532)	3,967)	4,104)	4,522)
Profitability Ratio
ROE¹	0.58%	-103.16%	14.24%	9.89%	8.36%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Expedia Group, Inc.	26)	(1,813)	565)	492)	378)
Adjusted total Expedia Group, Inc. stockholders’ equity	(5,114)	(4,848)	(4,160)	(4,016)	(3,707)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROE = 100 × Net income (loss) attributable to Expedia Group, Inc. ÷ Total Expedia Group, Inc. stockholders’ equity
= 100 × 12 ÷ 2,057 = 0.58%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to Expedia Group, Inc. ÷ Adjusted total Expedia Group, Inc. stockholders’ equity
= 100 × 26 ÷ -5,114 = —

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Expedia Group, Inc.	12)	(2,612)	565)	406)	378)
Total assets	21,548)	18,690)	21,416)	18,033)	18,516)
Profitability Ratio
ROA¹	0.06%	-13.98%	2.64%	2.25%	2.04%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Expedia Group, Inc.	26)	(1,813)	565)	492)	378)
Adjusted total assets	14,377)	11,310)	13,289)	9,913)	10,287)
Profitability Ratio
Adjusted ROA²	0.18%	-16.03%	4.25%	4.96%	3.67%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income (loss) attributable to Expedia Group, Inc. ÷ Total assets
= 100 × 12 ÷ 21,548 = 0.06%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to Expedia Group, Inc. ÷ Adjusted total assets
= 100 × 26 ÷ 14,377 = 0.18%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Expedia Group Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Expedia Group Inc. (NASDAQ:EXPE)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Expedia Group Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Expedia Group Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)