8-K/AFinancial Events

Booking Holdings Inc. 8-K/A Report, Exit or Disposal Costs (Nov 5, 2020)

Filed November 5, 2020For Securities:BKNG

Summary

Booking Holdings Inc. (BKNG) filed an 8-K/A amendment on November 4, 2020, to update information regarding restructuring actions initiated at Booking.com due to the COVID-19 pandemic. This filing specifically addresses updated cost estimates for employment termination and related costs for Booking.com and Rentalcars.com. The company now estimates total employment-related costs for this restructuring to be approximately $140 million, an increase from previous disclosures. Of this total, approximately $40 million has already been recorded in the nine months ended September 30, 2020, with an additional $100 million expected to be recorded in the fourth quarter of 2020 and early 2021. These figures are subject to finalization of plans and consultations. The company reiterates its expectation that the workforce reduction will be up to approximately 25% of the Booking.com workforce. The evaluation of costs related to leased facilities and other contract modifications is ongoing, with potential for additional future costs not yet estimated.

Key Highlights

  • 1Booking Holdings estimates total employment termination and related costs for Booking.com's restructuring actions (including Rentalcars.com) to be approximately $140 million.
  • 2An additional $100 million in employment termination costs are expected to be recorded in Q4 2020 and early 2021.
  • 3The company has already recorded approximately $40 million in restructuring expenses for the nine months ended September 30, 2020.
  • 4The workforce reduction at Booking.com is still expected to be up to approximately 25% compared to the start of the restructuring activities.
  • 5Estimates are subject to finalization of employee consultations, works councils, and voluntary leaver schemes.
  • 6The company is still evaluating costs related to leased facilities and contract terminations, which could result in additional future restructuring costs.
  • 7This 8-K/A filing supplements, rather than supersedes, previous 8-K filings related to these restructuring actions.

Frequently Asked Questions

This filing serves to amend and supplement previous 8-K filings regarding restructuring actions at Booking.com. It provides an updated estimate of employment termination and related costs associated with these actions, which were necessitated by the impact of the COVID-19 pandemic on the travel industry.

The company now estimates the total costs associated with employment termination and related costs for the restructuring actions at Booking.com (including Rentalcars.com) to be approximately $140 million. This includes costs already recognized and those expected to be recognized in the near future.

The company expects to record approximately $100 million of additional employment termination and related costs during the three months ending December 31, 2020, and in early 2021. The remaining $40 million was recorded in the nine months ended September 30, 2020.

Yes, the company is still evaluating alternative actions related to leased facilities and other contract terminations. Costs resulting from these actions have not yet been estimated, and additional future costs may be incurred.