Name: Expedia Group Inc. (NASDAQ:EXPE) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

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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).

The financial trajectory from 2017 through 2021 is characterized by a period of steady growth, a severe operational contraction in 2020, and a robust recovery in 2021. The most significant volatility is observed in operating cash flows, which shifted from a peak of 2,767 million US dollars in 2019 to a deficit of 3,834 million US dollars in 2020, before rebounding to 3,748 million US dollars in 2021.

Operating Activities and Earnings Volatility: Net income remained positive and grew between 2017 and 2019, peaking at 572 million US dollars. However, 2020 saw a substantial loss of 2,728 million US dollars, coinciding with a massive outflow in changes in operating assets and liabilities. This was primarily driven by a negative swing in deferred merchant bookings, which fell by 2,576 million US dollars in 2020. The 2021 recovery was marked by a return to a positive net income of 15 million US dollars and a significant surge in deferred merchant bookings to 2,642 million US dollars, which served as a primary driver for the recovery in net cash provided by operating activities.
Investing Activity and Capital Allocation: Net cash used in investing activities remained consistently negative throughout the period. Capital expenditures for property, equipment, and software peaked in 2019 at 1,160 million US dollars before trending downward to 673 million US dollars by 2021. Investment strategies shifted over time; significant purchases of investments occurred in 2017 and 2018, while 2021 saw a marked reduction in investment purchases to 201 million US dollars, reflecting a more conservative allocation of capital during the recovery phase.
Financing Strategies and Liquidity Management: Financing activities were utilized as a critical liquidity bridge during the operational crisis of 2020. To offset operating losses, 4,077 million US dollars were provided via financing, largely through the issuance of long-term debt (3,945 million US dollars) and preferred stock and warrants (1,132 million US dollars). In 2021, the strategy shifted toward deleveraging and capital restructuring, evidenced by 1,706 million US dollars in long-term debt payments and the redemption of preferred stock totaling 1,236 million US dollars. Share buybacks also decelerated, moving from a peak of 923 million US dollars in 2018 to 165 million US dollars in 2021.

The overall liquidity position strengthened over the five-year period. Despite the extreme volatility of 2020, the cash, cash equivalents, and restricted cash balance grew from 2,847 million US dollars at the end of 2017 to 5,805 million US dollars by the end of 2021. This increase was supported by strategic debt issuance during the downturn and a strong operational rebound in the final year of the period.

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