EXPE

, and additional information about our foreign exchange risk management is included below in

• The company is exposed to currency fluctuations, particularly in the Euro, British pound, Japanese yen, Australian dollar, Brazilian real, and Canadian dollar, which can impact cash flows and the value of assets and liabilities.
• Foreign exchange risk arises from the timing difference between booking and stay for accommodation revenue, as well as the impact of exchange rates on cross-border travel.
• The company uses hedging activities to manage foreign exchange exposure, but notes that ineffective hedging or estimation errors could lead to greater financial volatility.
• Significant credit risk exists with financial institution counterparties, where a default could lead to loss of deposited cash or inability to settle hedging contracts.
• Credit risk also extends to non-financial counterparties like B2B and Vrbo partners, with potential payment delays that may worsen during economic downturns.

Consolidated Financial Statements and Supplementary Data 44