Summary
Expedia, Inc. (EXPE) filed a Form 8-K on April 10, 2015, to disclose a change in its reportable segment structure, effective January 1, 2015. This filing provides recast selected financial data for 2014 and 2013 to align with the new segment reporting. The company has reorganized its business into four reportable segments: Core OTA (Online Travel Agencies), trivago (hotel metasearch), Egencia (corporate travel management), and eLong (majority-owned online travel services in China). This change is a result of a continuous review of the company's assets and operations and is intended to provide a clearer view of the business performance across these distinct areas. Importantly, this is a recasting of historical data for reporting consistency and does not represent a restatement of previously issued financial statements, meaning it does not impact reported gross bookings, revenue, or Adjusted EBITDA for prior periods.
Key Highlights
- 1Expedia has realigned its business into four distinct reportable segments: Core OTA, trivago, Egencia, and eLong, effective January 1, 2015.
- 2The Core OTA segment encompasses major brands like Expedia.com, Hotels.com, Hotwire.com, and Travelocity, serving global customers.
- 3The trivago segment focuses on generating advertising revenue through hotel metasearch referrals.
- 4Egencia represents Expedia's managed travel services for corporate clients.
- 5eLong, a majority-owned subsidiary, focuses on online and mobile travel services within China.
- 6This filing provides recast selected financial data for 2014 and 2013 to match the new segment structure.
- 7The segment realignment is for reporting purposes and does not affect previously reported gross bookings, revenue, or Adjusted EBITDA.