OTHER (Notes)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents at September 30, 2020 and December 31, 2019 principally relates to the minimum cash requirement for the Company's travel-related insurance business. The following table reconciles cash and cash equivalents and restricted cash and cash equivalents reported in the Consolidated Balance Sheets to the total amounts shown in the Unaudited Consolidated Statements of Cash Flows (in millions):


	September 30, 2020		December 31, 2019
	(Unaudited)
As included in the Consolidated Balance Sheets:
Cash and cash equivalents	$	11,197	$	6,312
Restricted cash and cash equivalents included in "Prepaid expenses and other current assets, net"	20		20
Total cash and cash equivalents and restricted cash and cash equivalents as shown in the Unaudited Consolidated Statements of Cash Flows	$	11,217	$	6,332

Income Taxes Prepayment and Refund

In the first quarter of 2020, the Company made a prepayment of the Netherlands income taxes of 660 million Euros ($717 million) to earn prepayment discounts. The Company requested a refund of this amount from the Dutch tax authorities and it was received in April 2020.

Restructuring and other Exit Costs

In response to the reduction in the Company's business volumes as a result of the impact of the COVID-19 pandemic (see Note 1), during the nine months ended September 30, 2020, the Company has taken actions at all its brands to reduce the size of its workforce to optimize efficiency and reduce costs.

In August 2020, the Company announced its intention to reduce Booking.com's (including Rentalcars.com) global workforce. In September 2020, the Company commenced some of the intended restructuring actions to reduce Booking.com's workforce in over 40 countries. In October 2020, Booking.com commenced voluntary leaver schemes in the Netherlands, the United Kingdom and Spain and a reduction in force in certain other countries. Reductions in force in certain countries (including the Netherlands and the United Kingdom), where Booking.com continues to be engaged in the process of consulting with its employees, works councils, employee representatives and other relevant organizations, have not yet been completed. The Company is targeting to complete the vast majority of announcements to affected employees by the end of 2020.

During the three and nine months ended September 30, 2020, the Company recorded expenses of $41 million and $75 million, respectively, for the restructuring actions initiated at Booking.com and the other brands, which are included in “Restructuring and other exit costs” in the Unaudited Consolidated Statements of Operations. These expenses are primarily cash-based and consist of employee severance and other one-time termination benefits, and other costs. Noncash expenses recorded during the three and nine months ended September 30, 2020 were $1 million and $3 million, respectively. The Company made cash payments of $50 million during the nine months ended September 30, 2020. At September 30, 2020, restructuring liabilities of $22 million are included in "Accrued expenses and other current liabilities" in the Consolidated Balance Sheet. As of September 30, 2020, the Company has recorded employee severance and other one-time termination costs that meet the requirements for recognition in accordance with the relevant guidance of Accounting Standards Codification ("ASC") 420, Exit or Disposal Cost Obligations or ASC 712, Compensation - Nonretirement Postemployment Benefits, as applicable.

In addition to the restructuring expenses recorded during the nine months ended September 30, 2020 and included in “Restructuring and other exit costs” in the Unaudited Consolidated Statements of Operations, the Company estimates that it will record approximately $100 million of additional restructuring expenses, in the aggregate, during the three months ending December 31, 2020 and in early 2021. The estimates are subject to finalization of the Company’s plans following consultation with employees, works councils, including the Dutch works council, employee representatives and other relevant organizations and the outcome of the voluntary leaver schemes launched by the Company. This estimate may change as the Company finalizes its cost reduction plans. The Company’s evaluation of various alternative courses of action related to leased facilities impacted by the reduction in workforce and other contract terminations and modifications is still in progress and the Company may incur additional costs resulting from such actions.

Government Grants and other Assistance

Certain governments have passed or are considering modifying legislation to help businesses during the COVID-19 pandemic through loans, wage subsidies, tax relief or other financial aid, and some of these governments have extended or are considering extending these programs. The Company has participated in several of these programs, including the Netherlands' wage subsidy program and the United Kingdom's job retention scheme. In addition, in certain countries, such as Singapore and China, the Company is also participating in programs where the government assistance is in the form of wage subsidies and reductions in wage-related employer taxes paid by the Company. During the three and nine months ended September 30, 2020, the Company recognized government grants and other assistance benefits of $22 million and $122 million, respectively. The government grants and other assistance is recorded as a reduction of "Personnel" expense in the Unaudited Consolidated Statements of Operations. At September 30, 2020, the Company has received $95 million and recorded a receivable of $27 million, which is included in “Prepaid expenses and other current assets, net” in the Consolidated Balance Sheet, for payments expected to be received for the programs where it has met the qualifying requirements and it is probable that payment will be received. The majority of this receivable is expected to be received in 2021. In addition, certain governments have extended support for the travel and tourism industry through special programs whereby discounts are extended to travelers through travel service providers or through travel agents for reservations facilitated by them. The Company is participating in Japan's Go To Travel program and Thailand's We Travel Together program.