Booking Holdings(BKNG) - 2022 Q4 - Annual Report

Debt and Financing - The company's outstanding aggregate principal amount of debt was $12.5 billion at December 31, 2022, compared to$11.1 billion at December 31, 2021[190] - The company issued senior notes for an aggregate principal amount of 3.5 billion Euros in November 2022, with interest rates ranging from 4.0% to 4.75% and maturity dates from November 2026 to November 2034[212] - The company's convertible senior notes are more sensitive to equity market price volatility than changes in interest rates, with their fair value likely increasing as the market price of the company's shares increases[190] Share Repurchases - The company repurchased shares of its common stock for an aggregate cost of $6.7 billion during the year ended December 31, 2022, and had a remaining authorized amount of$3.9 billion for stock repurchases at December 31, 2022[213] Cash and Investments - The company's cash, cash equivalents, and short-term and long-term investments totaled $15.2 billion at December 31, 2022, with approximately$9.3 billion held by international subsidiaries[210] Expenses - Marketing expenses increased significantly in 2022 compared to 2021 due to the recovery in travel demand, but marketing expenses as a percentage of total gross bookings decreased slightly[196] - Personnel expenses, excluding stock-based compensation, increased 6% in 2022 compared to 2021, driven by a $139 million increase in salary expense and a$66 million increase in bonus expense accruals[198] Tax and Valuation - The company's effective tax rate was higher in 2022 compared to 2021, primarily due to lower benefits from the Netherlands Innovation Box Tax and higher valuation allowances against deferred tax assets[177] Obligations - The company had lease obligations of $867 million and non-cancellable purchase obligations of$378 million at December 31, 2022, with $143 million payable within the next twelve months[214] Foreign Currency and Derivatives - The company's foreign currency transaction gains for the year ended December 31, 2022 included$46 million related to Euro-denominated debt and accrued interest, offset by $52 million in losses on derivative contracts[205] - The company uses derivative financial instruments to mitigate potential future market exposure but does not engage in speculative trading or leveraged derivatives[220] Operating Activities and Working Capital - Net cash provided by operating activities for 2021 was$2.8 billion, driven by net income of $1.2 billion,$1.4 billion from non-cash adjustments, and a $269 million favorable net change in working capital[217] - Accounts receivable increased by$1.0 billion in 2021, primarily due to higher business volumes[217] - Deferred merchant bookings and other current liabilities increased by $1.5 billion in 2021, reflecting growth in business volumes[217] - Non-cash items included net losses on equity securities, deferred income tax benefits, depreciation and amortization, stock-based compensation, and operating lease amortization[217] Market Risk Assessment - The company evaluates market risk by assessing near-term and long-term fluctuations in interest rates and foreign currency exchange rates[220]