What are the main financial results reported in this 8-K?

This 8-K primarily announces the financial results for the second quarter ended June 30, 2016. The detailed financial statements, including the balance sheet and statements of operations and cash flows, are included in the press release attached as an exhibit.

What is the key change in reporting methodology announced?

The Priceline Group announced it will revise its non-GAAP reporting starting with guidance for the fourth quarter of 2016. Specifically, it will stop excluding stock-based employee compensation expense and the tax benefit from net operating losses (NOLs) from its non-GAAP net income and adjusted EBITDA calculations.

Why is the company changing its non-GAAP reporting?

The company believes stock-based employee compensation is a regular business expense and that it is appropriate to report it as such. Additionally, the benefit from certain NOLs is becoming a smaller contribution and many of these NOLs are approaching expiration.

How will this change affect the comparability of financial results?

To help investors and analysts adjust, the company will begin implementing the new methodology with its Q4 2016 guidance. It will also re-cast prior period non-GAAP results under the new methodology in its earnings releases to allow for easier comparison of historical and future non-GAAP performance.

BKNG 8-K: Earnings & Results & Regulation FD

Summary

This 8-K filing from The Priceline Group Inc. (now Booking Holdings Inc.) on August 4, 2016, primarily announces the company's financial results for the second quarter ended June 30, 2016. The filing incorporates by reference a press release detailing these results, including unaudited consolidated financial statements. Investors should note that while the financial statements are 'filed,' other information in the press release is considered 'furnished,' meaning it is not subject to the same level of regulatory scrutiny. A significant disclosure within this report pertains to a forthcoming change in the company's non-GAAP reporting methodology, set to take effect with guidance for the fourth quarter of 2016. The Priceline Group intends to cease adjusting non-GAAP net income and adjusted EBITDA for stock-based employee compensation expense and for the tax impact of net operating losses (NOLs) that are nearing expiration. The company states this change aligns its reporting with its view of stock-based compensation as a regular business expense and reflects the diminishing benefit of certain NOLs.

Key Highlights

1The Priceline Group Inc. reported its financial results for the second quarter ended June 30, 2016.
2The filing includes unaudited consolidated financial statements (balance sheet, statements of operations, and cash flows) for the relevant periods.
3The company announced a change in its non-GAAP reporting methodology effective with Q4 2016 guidance.
4Beginning in Q4 2016, the company will stop adjusting non-GAAP figures for stock-based employee compensation expense.
5The company will also discontinue adjusting non-GAAP figures to exclude the income tax expense related to net operating loss (NOL) benefits.
6This shift in non-GAAP reporting is intended to aid investor understanding and reflects the company's management of stock-based compensation as a regular expense and the approaching expiration of a majority of its NOLs.
7The company will provide re-casted prior period non-GAAP results under the new methodology to facilitate comparison.

Booking Holdings Inc. 8-K Report, Financial Results (Aug 4, 2016)

Summary

Key Highlights

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