10-K/APeriod: FY2017

Expedia Group, Inc. Annual Report (Amendment), Year Ended Dec 31, 2017

Filed February 14, 2018For Securities:EXPE

Summary

Expedia Group, Inc. (EXPE) in its 2017 10-K filing reported that its management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2017. Furthermore, an independent audit by Ernst & Young LLP confirmed that Expedia maintained effective internal control over financial reporting in all material respects as of the same date, based on the COSO framework. There were no changes in internal control over financial reporting during the fourth quarter of 2017 that materially affected or were likely to affect these controls. These assurances regarding the effectiveness of internal controls and disclosure procedures are crucial for investors as they indicate a robust framework for reliable financial reporting. The independent auditor's unqualified opinion adds a layer of confidence in the company's financial statements and operational integrity, suggesting a lower risk of material misstatements or financial reporting irregularities.

Financial Highlights

55 data points
Beta

Revenue

$10.06B

82.5% Gross Margin

Net Income

$378.00M

3.8% Net Margin

EPS (Diluted)

$2.42

Total Assets

$18.52B

Cash & Equivalents

$2.85B

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$10.06B
Cost of Revenue$1.76B
Gross Profit$8.30B
Operating Income$625.00M
Interest Expense$182.00M
Net Income$378.00M
EPS (Basic)$2.49
EPS (Diluted)$2.42
Shares Outstanding (Basic)151.62M
Shares Outstanding (Diluted)156.38M

Key Highlights

  • 1Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of December 31, 2017.
  • 2Ernst & Young LLP audited Expedia's internal control over financial reporting and issued an unqualified opinion.
  • 3The company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on the COSO criteria.
  • 4There were no changes in internal control over financial reporting during the quarter ended December 31, 2017, that materially affected these controls.
  • 5The audit of internal controls was performed in accordance with PCAOB standards.
  • 6The independent auditor's report confirms the reliability of Expedia's financial reporting processes for external purposes.
  • 7The filing includes certifications from the Chairman and Senior Executive pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Frequently Asked Questions

This section is critical for investors as it details the company's systems for ensuring the accuracy and reliability of its financial reporting. An effective internal control system reduces the risk of material errors or fraud in financial statements, thereby increasing investor confidence in the reported financial information.

It means that management, after evaluating the company's internal control system against established criteria (COSO framework), concluded it was operating effectively. The independent auditor, Ernst & Young LLP, performed their own audit and concurred with management's assessment, providing reasonable assurance that the company's financial reporting is reliable and prepared in accordance with U.S. GAAP.

Yes, the filing explicitly states that internal controls are designed to provide reasonable, not absolute, assurance. They cannot guarantee that all errors or instances of fraud will be prevented or detected. Projections of effectiveness to future periods are also subject to the risk that controls may become inadequate due to changing conditions or a decline in compliance.

No, the filing states that there were no changes to Expedia's internal control over financial reporting during the quarter ended December 31, 2017, that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.