Booking Holdings Inc.BKNG
Booking Holdings Inc. Segments Disclosure
SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
See Note 1 for a description of the Company's business. The Company's portfolio of brands is organized into five operating segments. The Company determined its operating segments based on how its chief operating decision maker ("CODM"), who is the Chief Executive Officer and President, manages the business, makes operating decisions, and evaluates operating performance. The operating segments are aggregated into one reportable segment based on the similarity in economic characteristics, other qualitative factors, and the objectives and principles of ASC 280, Segment Reporting.
The CODM reviews revenues and an adjusted measure of earnings before interest, taxes, depreciation, and amortization less additions to property and equipment ("Adjusted EBITDA less Capex") for each operating segment. The following table presents information for the Company's reportable segment. Other segment items include operating expenses such as general and administrative and information technology. See Note 2 for additional information on these expenses.
| Year Ended December 31, | ||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
Total revenues | $ | 26,917 | $ | 23,739 | $ | 21,365 | ||||||||||||||
| Marketing expenses | 8,186 | 7,278 | 6,773 | |||||||||||||||||
| Sales and other expenses | 3,453 | 3,104 | 2,744 | |||||||||||||||||
| Personnel expenses | 3,321 | 3,133 | 2,818 | |||||||||||||||||
| Other segment items | 2,105 | 2,045 | 2,010 | |||||||||||||||||
Segment Adjusted EBITDA less Capex | $ | 9,852 | $ | 8,179 | $ | 7,020 | ||||||||||||||
Decisions to allocate resources to each operating segment are made predominantly through the budgeting and forecasting process. The CODM reviews budget-to-actual variances for revenues and Adjusted EBITDA less Capex to assess performance of the operating segments. The information is also used as a basis for determining compensation for certain employees. Estimates and judgments are made in allocating certain revenues and Adjusted EBITDA less Capex to operating segments due to the integrated nature of the operating segments in the underlying transactions. The allocation process is consistent with the manner in which the CODM assesses the performance of the operating segments. Information on segment assets is not presented as depreciation and amortization is not included in measuring Adjusted EBITDA less Capex.
The following table presents the reconciliation of the Company's segment Adjusted EBITDA less Capex to Income before income taxes:
| Year Ended December 31, | ||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
Segment Adjusted EBITDA less Capex | $ | 9,852 | $ | 8,179 | $ | 7,020 | ||||||||||||||
Additions to property and equipment | 350 | 445 | 395 | |||||||||||||||||
Adjustments related to the Netherlands pension fund matter (1) | 123 | — | (276) | |||||||||||||||||
Adjustments related to fine imposed by the Spanish Competition authority (1) | — | 78 | (530) | |||||||||||||||||
Impact of certain indirect tax matters (1) | (45) | (337) | (62) | |||||||||||||||||
Termination fee related to an acquisition agreement (2) | — | — | (90) | |||||||||||||||||
Depreciation and amortization (3) | (623) | (591) | (504) | |||||||||||||||||
Impairment (3) (4) | (457) | — | — | |||||||||||||||||
Transformation costs (5) | (203) | (34) | — | |||||||||||||||||
Interest expense (3) | (1,617) | (1,295) | (897) | |||||||||||||||||
Interest and dividend income (3) | 921 | 1,114 | 1,020 | |||||||||||||||||
Net gains (losses) on equity securities (6) | 37 | 63 | (131) | |||||||||||||||||
Foreign currency transaction (losses) gains on the remeasurement of certain Euro-denominated debt and accrued interest and gains on debt-related foreign currency derivative instruments (6) | (1,380) | 539 | (163) | |||||||||||||||||
Loss on early extinguishment of debt (7) | (25) | — | — | |||||||||||||||||
Change in fair value of the conversion option related to the convertible senior notes (7) | 163 | (535) | — | |||||||||||||||||
Other (8) | (264) | (334) | (301) | |||||||||||||||||
Income before income taxes | $ | 6,832 | $ | 7,292 | $ | 5,481 | ||||||||||||||
(1) See Note 16 for additional information.
(2) See Note 21 for additional information.
(3) See Consolidated Statements of Operations.
(4) See Note 11 for additional information.
(5) See Note 20 for additional information.
(6) See Note 18 for additional information.
(7) See Note 12 for additional information.
(8) Primarily consists of the expenses of corporate headquarters and certain other functional departments.
Stock-based compensation included in the determination of segment Adjusted EBITDA less Capex was $553 million, $522 million, and $447 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Geographic Information
The Company's revenues from its businesses outside of the U.S. consist of the results of Booking.com and Agoda in their entirety and the results of the KAYAK and OpenTable businesses located outside of the U.S. This classification is independent of where the consumer resides, where the consumer is physically located while using the Company's services, or the location of the travel service provider or restaurant. For example, a reservation made through Booking.com at a hotel in New York by a consumer in the U.S. is part of the results of the Company's businesses outside of the U.S. The Company's geographic information on revenues for the years ended December 31, 2025, 2024, and 2023 is as follows:
| (In millions) | U.S. | Outside of the U.S. (1) | Total Company | |||||||||||||||||
| December 31, 2025 | $ | 2,579 | $ | 24,338 | $ | 26,917 | ||||||||||||||
| December 31, 2024 | 2,485 | 21,254 | 23,739 | |||||||||||||||||
| December 31, 2023 | 2,327 | 19,038 | 21,365 | |||||||||||||||||
(1) Includes $21.7 billion, $18.6 billion, and $17.0 billion for the years ended December 31, 2025, 2024, and 2023, respectively, attributed to an entity domiciled in the Netherlands.
The following table presents information on the Company's property and equipment (excluding capitalized software) and operating lease assets based on location of the assets at December 31, 2025 and 2024:
| U.S. | Outside of the U.S. | Total Company | ||||||||||||||||||||||||||||||
| (In millions) | The Netherlands | United Kingdom | Other | |||||||||||||||||||||||||||||
| December 31, 2025 | $ | 110 | $ | 447 | $ | 131 | $ | 332 | $ | 1,020 | ||||||||||||||||||||||
| December 31, 2024 | 129 | 405 | 168 | 243 | 945 | |||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.