Benzinga | Jun 4, 2021 08:18AM EDT

Booking Holdings Says Co Intends To Return Government Assistance Received Through Netherlands' Wage Subsidy Program

On June 4, 2021, Glenn Fogel, the President and Chief Executive Officer of Booking Holdings Inc. and Booking.com BV announced to employees that Booking Holdings Inc. and its subsidiaries (the "Company") intend to return government assistance received through the Netherlands' wage subsidy program and the various other government aid programs outside the Netherlands in which the Company participated as a result of the impact of the COVID-19 pandemic on the Company's business. While the decision to accept this assistance was made during a period when the Company's business was severely impacted and the timing and pace of the recovery of the travel industry was very uncertain, the Company is now encouraged by the improving booking trends in certain countries in recent months that the Company discussed on its most recent earnings call on May 5, 2021. The Company estimates that the amount to be returned to various governments is approximately $110 million and the amount of government aid that was previously recorded in the income statements for the year ended December 31, 2020 and the three months ended March 31, 2021 (principally as a reduction of personnel expenses) that is expected to be reversed in Q2 2021 is approximately $140 million (pre-tax). This reversal was not included in the commentary the Company provided about Q2 2021 financial results on May 5, 2021.