Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Expedia Group Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss)	15)	(2,728)	572)	398)	371)
Depreciation of property and equipment, including internal-use software and website development	715)	739)	712)	676)	614)
Amortization of stock-based compensation	418)	205)	241)	203)	149)
Amortization of intangible assets	99)	329)	198)	325)	275)
Impairment of goodwill, intangible and other long-term assets	20)	799)	—)	86)	—)
Deferred income taxes	(145)	(488)	(91)	(308)	(103)
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net	105)	2)	(5)	111)	(79)
Realized (gain) loss on foreign currency forwards	16)	(80)	(22)	(31)	(6)
(Gain) loss on minority equity investments, net	29)	142)	(8)	111)	14)
Loss on debt extinguishment	280)	—)	—)	—)	—)
(Gain) loss on sale of business, net	(456)	13)	—)	—)	—)
Provision for credit losses and other, net	32)	135)	(21)	22)	(29)
Accounts receivable	(721)	1,781)	(368)	(282)	(456)
Prepaid expenses and other assets	(224)	(188)	(193)	(29)	(117)
Accounts payable, merchant	777)	(1,320)	224)	(134)	316)
Accounts payable, other, accrued expenses and other liabilities	138)	(400)	254)	196)	257)
Tax payable/receivable, net	10)	(57)	(23)	102)	(31)
Deferred merchant bookings	2,642)	(2,576)	1,342)	489)	593)
Deferred revenue	(2)	(142)	(45)	40)	30)
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions	2,620)	(2,902)	1,191)	382)	593)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities	3,733)	(1,106)	2,195)	1,577)	1,428)
Net cash provided by (used in) operating activities	3,748)	(3,834)	2,767)	1,975)	1,799)
Capital expenditures, including internal-use software and website development	(673)	(797)	(1,160)	(878)	(710)
Purchases of investments	(201)	(685)	(1,346)	(1,803)	(1,811)
Sales and maturities of investments	23)	1,161)	852)	2,137)	1,096)
Cash and restricted cash divested from sale of business, net of proceeds	(60)	(21)	—)	—)	—)
Other, net	(20)	79)	101)	(15)	(157)
Net cash used in investing activities	(931)	(263)	(1,553)	(559)	(1,582)
Revolving credit facility borrowings	—)	2,672)	—)	—)	—)
Revolving credit facility repayments	—)	(2,672)	—)	—)	—)
Proceeds from issuance of long-term debt, net of issuance costs	1,964)	3,945)	1,231)	—)	990)
Payment of long-term debt	(1,706)	(750)	—)	(500)	—)
Debt extinguishment costs	(258)	—)	—)	—)	—)
Payment of Liberty Expedia Exchangeable Debentures	—)	—)	(400)	—)	—)
Net proceeds from issuance of preferred stock and warrants	—)	1,132)	—)	—)	—)
Redemption of preferred stock	(1,236)	—)	—)	—)	—)
Purchases of treasury stock	(165)	(425)	(743)	(923)	(312)
Payment of dividends to common and preferred stockholders	(67)	(123)	(195)	(186)	(176)
Proceeds from exercise of equity awards and employee stock purchase plan	503)	319)	301)	166)	229)
Other, net	(8)	(21)	(19)	(46)	(43)
Net cash provided by (used in) financing activities	(973)	4,077)	175)	(1,489)	688)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	(177)	61)	3)	(139)	146)
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents	1,667)	41)	1,392)	(212)	1,050)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of year	4,138)	4,097)	2,705)	2,917)	1,797)
Cash, cash equivalents and restricted cash and cash equivalents at end of year	5,805)	4,138)	4,097)	2,705)	2,847)

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).

Net Income (Loss): The company experienced a generally positive net income from 2017 through 2019, with amounts increasing from 371 million to 572 million. However, in 2020, there was a significant loss of 2,728 million, likely indicative of a major adverse event or disruption. By 2021, net income nearly recovered to a positive 15 million, suggesting partial operational recovery.
Depreciation and Amortization: Depreciation of property, equipment, and internal-use software showed a steady, moderate increase over the five-year period, rising from 614 million in 2017 to a peak of 739 million in 2020, before slightly declining to 715 million in 2021. Amortization of stock-based compensation escalated significantly, particularly in 2021, where it nearly doubled compared to 2020, indicating increased stock-based expenses. Amortization of intangible assets declined notably in 2021 after reaching a peak in 2020, which may reflect changes in intangible asset valuations or amortization schedules.
Non-Operating Gains and Losses: The impairment of goodwill and other long-term assets was absent in most years, apart from a significant charge of 799 million in 2020 and a smaller 20 million charge in 2021, aligning with the major loss year. Foreign exchange impacts fluctuated, showing gains and losses inconsistently over the years, reaching a positive 105 million in 2021. Losses on debt extinguishment appeared only in 2021 at 280 million. Gains on sale of business were minimal except for a notable gain of 456 million in 2021, possibly reflecting asset divestitures.
Changes in Working Capital and Operating Assets/Liabilities: Working capital components exhibited marked volatility: Accounts receivable changed from negative adjustments in early years to a large positive movement in 2020, then reverted to negative in 2021. Accounts payable and accrued expenses fluctuated similarly with significant negative adjustments in 2020 and positive changes in 2021. Deferred merchant bookings showed substantial variability, culminating in a large reversal in 2020 and a strong positive adjustment in 2021. These swings reflect operational disruptions and recoveries, consistent with the net income trend.
Cash Flow from Operating Activities: Operating cash flow steadily increased from 2017 to 2019, reaching 2,767 million before sharply declining to a negative 3,834 million in 2020, reflecting the operational challenges of that year. By 2021, cash flow recovered robustly to 3,748 million, indicating restoration of operational cash generation.
Investing Activities: Capital expenditures peaked in 2019 at 1,160 million then decreased notably over the next two years to 673 million in 2021. Purchases of investments decreased substantially, while sales and maturities of investments fluctuated without a clear trend, ending at a minimal 23 million in 2021. Net cash used in investing activities varied, showing a sharp reduction in 2018, then mixed results with a smaller outflow in 2020 and 2021, indicating cautious investment spending during and after the downturn.
Financing Activities: Financing cash flows shifted dramatically over the period. There were no revolving credit borrowings before 2020, when a 2,672 million borrowing and subsequent repayment occurred. Long-term debt issuances increased markedly in 2020 and 2021, accompanied by steady repayments and debt-related costs in 2021. Treasury stock purchases reduced over time, and dividend payments declined steadily each year. Proceeds from equity awards and stock purchase plans increased gradually, with a jump in 2021. Net cash from financing activities showed volatile patterns: a negative outflow in 2018, a positive surge in 2020, followed by a negative outflow in 2021 indicating varied capital structure management strategies.
Cash and Cash Equivalents: Cash balances rose from 2,847 million at the end of 2017 to 5,805 million by the end of 2021. Despite fluctuations, there was a general accumulation of cash over the five years, with notable increases coinciding with periods of positive cash flow recovery post-2020.
Overall Analysis: The financial data indicate a period of growth through 2019, followed by a significant disruption in 2020 that strongly impacted profitability, working capital, and operating cash flows. This disruption appears to have been partially mitigated by 2021, with net income, cash flows, and operational metrics showing recovery signs. Capital expenditures and investments were curtailed in the face of the downturn, while debt issuance and repayment activities increased, possibly in response to liquidity needs. The company managed to increase liquidity overall, as reflected in growing cash reserves by the end of the period. Volatility in non-operating gains, impairment charges, and foreign exchange effects also suggest heightened financial risks during the disruptive year and its aftermath.

Download chart

Expedia Group Inc. (NASDAQ:EXPE)

Cash Flow Statement