Global Business Travel Group Files Q3 2024 10-Q

TL;DR

GBTG filed its Q3 10-Q. Financials and operations detailed.

AI Summary

Global Business Travel Group, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter and the first nine months of the fiscal year. Key financial data and business operations for this period are detailed within the report.

Why It Matters

This filing provides investors with an update on Global Business Travel Group's financial performance and operational status for the third quarter of 2024, crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information which can reveal significant performance trends or risks.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2024-11-05 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 0001820872 — Central Index Key (Unique identifier for Global Business Travel Group, Inc. in SEC filings.)

Key Players & Entities

• Global Business Travel Group, Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of the reporting period
• 2024-11-05 (date) — Filing date
• Apollo Strategic Growth Capital (company) — Former company name

FAQ

Key Financial Figures

• $0.0001 — stered Class A common stock, par value $0.0001 per share GBTG The New York Stock Exc

Filing Documents

• gbtg-20240930.htm (10-Q) — 1532KB
• gbtg-20240930xexx311.htm (EX-31.1) — 9KB
• gbtg-20240930xexx312.htm (EX-31.2) — 9KB
• gbtg-20240930xexx321.htm (EX-32.1) — 4KB
• gbtg-20240930xexx322.htm (EX-32.2) — 4KB
• 0001820872-24-000048.txt ( ) — 7741KB
• gbtg-20240930.xsd (EX-101.SCH) — 57KB
• gbtg-20240930_cal.xml (EX-101.CAL) — 72KB
• gbtg-20240930_def.xml (EX-101.DEF) — 295KB
• gbtg-20240930_lab.xml (EX-101.LAB) — 713KB
• gbtg-20240930_pre.xml (EX-101.PRE) — 516KB
• gbtg-20240930_htm.xml (XML) — 997KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 2 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 3 Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 4 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Changes in Total Shareholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 6 Notes to the Consolidated Financial Statements (Unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 40

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3. Defaults Upon Senior Securities 42 Item 4. Mine Safety Disclosures 42 Item 5. Other Information 42 Item 6. Exhibits 43

Signatures

Signatures 44 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements

ITEM 1. Consolidated Financial Statements GLOBAL BUSINESS TRAVEL GROUP, INC. CONSOLIDATED BALANCE SHEETS (in $ millions, except share and per share data) September 30, 2024 December 31, 2023 (Unaudited) Assets Current assets: Cash and cash equivalents $ 524 $ 476 Accounts receivable (net of allowance for credit losses of $ 15 and $ 12 as of September 30, 2024 and December 31, 2023, respectively) 691 726 Due from affiliates 44 42 Prepaid expenses and other current assets 135 116 Total current assets 1,394 1,360 Property and equipment, net 232 232 Equity method investments 14 14 Goodwill 1,236 1,212 Other intangible assets, net 500 552 Operating lease right-of-use assets 62 50 Deferred tax assets 253 281 Other non-current assets 61 50 Total assets $ 3,752 $ 3,751 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 330 $ 302 Due to affiliates 28 39 Accrued expenses and other current liabilities 504 466 Current portion of operating lease liabilities 14 17 Current portion of long-term debt 16 7 Total current liabilities 892 831 Long-term debt, net of unamortized debt discount and debt issuance costs 1,368 1,355 Deferred tax liabilities 5 5 Pension liabilities 176 183 Long-term operating lease liabilities 67 55 Earnout derivative liabilities 91 77 Other non-current liabilities 47 33 Total liabilities 2,646 2,539 Commitments and Contingencies (see note 8) Shareholders' equity: Class A common stock (par value $ 0.0001 ; 3,000,000,000 shares authorized; 477,996,198 and 467,092,817 shares issued, 469,996,198 and 467,092,817 shares outstanding as of September 30, 2024 and December 31, 2023, respectively) — — Additional paid-in capital 2,809 2,748 Accumulated deficit ( 1,559 ) ( 1,437 ) Accumulated other comprehensive loss ( 94 ) ( 103 ) Treasury shares, at cost ( 8,000,000 shares and nil shares as of September 30, 2024 and December 31, 2023, respectively) ( 55 ) — Total equity of the Company's shareholders

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (1) Business Description and Basis of Presentation Global Business Travel Group, Inc. ("GBTG"), and its consolidated subsidiaries (GBTG together with its consolidated subsidiaries, the "Company"), including GBT JerseyCo Limited ("GBT JerseyCo"), is a leading software and services company in travel, expense and meetings & events. The Company provides a full suite of differentiated, technology-enabled solutions to business travelers and clients, suppliers of travel content (such as airlines, hotels, ground transportation providers and aggregators) and third-party travel agencies. The Company manages end-to-end logistics of business travel and provides a link between businesses and their employees, travel suppliers, and other industry participants. GBTG is a Delaware corporation and tax resident in the United States of America ("U.S."). The Company has one reportable segment. Potential Acquisition of CWT On March 24, 2024, GBTG entered into an Agreement and Plan of Merger (the "Merger Agreement") with CWT Holdings, LLC, a Delaware limited liability company ("CWT"), pursuant to which, among other things, GBTG will acquire CWT. The transaction values CWT at approximately $ 570 million on a cash-free and debt-free basis, subject to certain assumptions and purchase price adjustments. At the closing of the transaction, GBTG expects to fund the acquisition with a combination of cash and an aggregate of approximately 72 million shares of its Class A common stock, par value $ 0.0001 per share ("Class A common stock"), at a price of $ 6.00 per share as purchase consideration. The transaction is expected to be completed in the first quarter of 2025, subject to the satisfaction of customary closing conditions, including the receipt of certain regulatory approvals. Basis of Presentation The Company's consolidated financial statements include the accounts of GBTG, its wholly-owned subsidiaries and entities controll

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, supplier revenue, allowance for credit losses, depreciable lives of property and equipment, acquisition purchase price allocations including valuation of acquired intangible assets and goodwill and contingent consideration, valuation of operating lease right-of-use ("ROU") assets, impairment of goodwill, other intangible assets, long-lived assets, capitalized client incentives and investments in equity method investments, valuation allowances on deferred income taxes, valuation of pensions, interest rate swaps, cross currency interest rate swaps, earnout shares and contingent liabilities. Actual results could differ materially from those estimates. (2) Recently Issued Accounting Pronouncements Accounting Pronouncements - Adopted The Company did not adopt any new accounting pronouncements during the nine months ended September 30, 2024. Accounting Pronouncements - Not Yet Adopted There were no new accounting standards or pronouncements that were issued during the nine months ended September 30, 2024 that the Company expects to have a material impact on its consolidated financial statements. However, the Company has yet to adopt the following accounting standard updates ("ASU") issued by the Financial Accounting Standards Board (the "FASB"). Segment Reporting In November 2023, the FASB issued ASU No. 2023-07, " Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures " which expands the segment reporting disclosures and primarily requires disclosures on (i) significant segment expenses that are regularly provided to the chief operating d

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) conditions. In April 2024, the SEC issued an order staying the Climate Rules pending completion of a judicial review of certain petitions challenging their validity. The Company is currently evaluating the impact of the Climate Rules on its consolidated financial statements. (3) Revenue from Contracts with Customers The Company disaggregates revenue based on (i) Travel Revenue which includes all revenue relating to servicing a transaction, which can be an air, hotel, car rental, rail or other travel-related booking or reservation, and (ii) Product and Professional Services Revenue which includes all revenue relating to using the Company's platform, products and value-added services. The following table presents the Company's disaggregated revenue by nature of service. Sales and usage-based taxes are excluded from revenue. Three months ended September 30, Nine months ended September 30, (in $ millions) 2024 2023 2024 2023 Travel revenue $ 478 $ 455 $ 1,476 $ 1,401 Product and professional services revenue $ 119 116 356 340 Total revenue $ 597 $ 571 $ 1,832 $ 1,741 Payments from customers are generally received within 30 - 60 days of invoicing or from their contractual date agreed under the terms of contract. Contract Balances Contract assets represent the Company's right to consideration in exchange for services transferred to a customer when that right is conditioned on the Company's future performance obligations. Contract liabilities represent the Company's obligation to transfer services to a customer for which the Company has received consideration (or the amount is due) from the customer. The opening and closing balances of the Company's accounts receivable, net, and contract liabilities are as follows: Contract liabilities (in $ millions) Accounts receivable, net Client incentives, net (non-current) Deferred revenue (current) Balance as of September 30, 2024 $ 690 $ 19 $ 35 Balance a

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (4) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of: (in $ millions) September 30, 2024 December 31, 2023 Prepaid technology costs $ 44 $ 36 Prepaid travel expenses 35 13 Value added and similar taxes receivables 9 10 Income tax receivable 7 12 Other prepayments and receivables 40 45 Prepaid expenses and other current assets $ 135 $ 116 (5) Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of: (in $ millions) September 30, 2024 December 31, 2023 Accrued payroll and related costs $ 177 $ 184 Accrued operating expenses 172 160 Client deposits 63 53 Deferred revenue 35 19 Accrued interest payable 22 5 Accrued restructuring costs (see note 6) 18 30 Value added and similar taxes payable 10 12 Other payables 7 3 Accrued expenses and other current liabilities $ 504 $ 466 (6) Restructuring, Exit and Related Charges Employee Severance Cost From time-to-time, the Company takes initiatives to reduce costs, exit from non-profitable business components and geographical regions and/or improve operational efficiency. During the three months ended September 30, 2024 and 2023, the Company has incurred costs related to employee severance of $ 2 million and $ 12 million, respectively. During the nine months ended September 30, 2024 and 2023, the Company has incurred costs related to employee severance of $ 8 million and $ 40 million, respectively. Such costs are included within restructu