Item 2.05 Costs Associated with Exit or Disposal Activities.
On August 4, 2020, Booking Holdings Inc. (the "Company") filed a Current Report
on Form 8-K (the "Original 8-K") with the U.S. Securities and Exchange
Commission to announce restructuring actions at Booking.com as a result of the
impact of the COVID-19 pandemic on Booking.com and the travel industry. On
September 10, 2020, October 15, 2020 and November 5, 2020, the Company filed
amendments to the Original 8-K to announce ranges of estimated costs associated
with portions of the restructuring actions available at the time of filing (the
"First, Second and Third Amendments"). This Current Report on Form 8-K/A amends
and supplements the Original 8-K as amended by the First, Second and Third
Amendments to disclose the Company's estimate of certain additional costs
related to the previously announced restructuring actions.
In addition to the approximately $2 million of restructuring expenses related to
leases that the Company expects to record in the financial statements for the
twelve months ended December 31, 2020, the Company estimates that it will record
approximately $20 million to $25 million of additional lease and
facilities-related restructuring expense in 2021 related to reductions in office
facility space as a result of restructuring actions at Booking.com (including
Rentalcars.com). The estimates are subject to changes to the expected timeframes
for exiting the office spaces, the Company's ability to negotiate terminations
or modifications of the lease contracts and/or enter into sublease arrangements
and unanticipated changes to the Company's capacity needs. The estimates may
change as the Company finalizes its cost reduction plans. The Company's
evaluation of various alternative courses of action related to certain other
leases and contract terminations and modifications is still in progress and the
Company may incur additional costs resulting from such actions. This Current
Report on Form 8-K/A supplements and does not supersede the Original 8-K and the
First, Second and Third Amendments. The remainders of the Original 8-K and the
First, Second and Third Amendments are unchanged. Accordingly, this Current
Report on Form 8-K/A should be read in conjunction with the Original 8-K and the
First, Second and Third Amendments.
This Current Report on Form 8-K/A contains forward-looking statements. These
forward-looking statements reflect our views regarding current expectations and
projections about future events and conditions and are based on currently
available information. These forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties and assumptions that
are difficult to predict, including the Risk Factors identified in our most
recently filed quarterly report on Form 10-Q and annual report on Form 10-K;
therefore, our actual results could differ materially from those expressed,
implied or forecast in any such forward-looking statements. Expressions of
future goals and expectations and similar expressions, including "may," "will,"
"should," "could," "aims," "seeks," "expects," "plans," "anticipates,"
"intends," "believes," "estimates," "predicts," "potential," "targets," and
"continue," reflecting something other than historical fact are intended to
identify forward-looking statements. Unless required by law, we undertake no
obligation to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise. However, readers should
carefully review the reports and documents we file or furnish from time to time
with the Securities and Exchange Commission, particularly our annual reports on
Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
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