Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 18, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'MAR | ' |
Entity Registrant Name | 'MARRIOTT INTERNATIONAL INC /MD/ | ' |
Entity Central Index Key | '0001048286 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 299,538,446 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 |
REVENUES | ' | ' | ' | ' |
Base management fees | $150 | $134 | $399 | $469 |
Franchise fees | 175 | 149 | 420 | 503 |
Incentive management fees | 53 | 36 | 142 | 183 |
Owned, leased, corporate housing, and other revenue | 220 | 200 | 681 | 690 |
Cost reimbursements | 2,562 | 2,210 | 6,415 | 7,720 |
Revenues | 3,160 | 2,729 | 8,057 | 9,565 |
OPERATING COSTS AND EXPENSES | ' | ' | ' | ' |
Owned, leased, and corporate housing-direct | 186 | 174 | 572 | 569 |
Reimbursed costs | 2,562 | 2,210 | 6,415 | 7,720 |
General, administrative, and other | 167 | 132 | 439 | 526 |
Costs and Expenses, Total | 2,915 | 2,516 | 7,426 | 8,815 |
OPERATING INCOME | 245 | 213 | 631 | 750 |
Gains and other income | 1 | 36 | 43 | 14 |
Interest expense | -28 | -29 | -96 | -88 |
Interest income | 5 | 3 | 10 | 13 |
Equity in losses | 0 | -1 | -10 | -2 |
INCOME BEFORE INCOME TAXES | 223 | 222 | 578 | 687 |
Provision for income taxes | -63 | -79 | -188 | -212 |
NET INCOME | $160 | $143 | $390 | $475 |
EARNINGS PER SHARE-Basic | ' | ' | ' | ' |
Earnings per share (in USD per share) | $0.53 | $0.45 | $1.19 | $1.55 |
EARNINGS PER SHARE-Diluted | ' | ' | ' | ' |
Earnings per share (in USD per share) | $0.52 | $0.44 | $1.16 | $1.51 |
CASH DIVIDENDS DECLARED PER SHARE (in USD per share) | $0.17 | $0.13 | $0.36 | $0.47 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $160 | $143 | $390 | $475 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustments | 11 | 5 | -1 | -2 |
Other derivative instrument adjustments, net of tax | -6 | 0 | 1 | 0 |
Unrealized gain (loss) on available-for-sale securities, net of tax | 0 | 0 | -1 | 4 |
Reclassification of (gains) losses, net of tax | 0 | -1 | 0 | -7 |
Total other comprehensive loss, net of tax | 5 | 4 | -1 | -5 |
Comprehensive income | $165 | $147 | $389 | $470 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and equivalents | $144 | $88 |
Accounts and notes receivable | 972 | 1,028 |
Current deferred taxes, net | 217 | 280 |
Prepaid expenses | 57 | 57 |
Other | 24 | 22 |
Assets held for sale | 232 | 0 |
Assets, Current, Total | 1,646 | 1,475 |
Property and equipment | 1,489 | 1,539 |
Intangible assets | ' | ' |
Goodwill | 874 | 874 |
Contract acquisition costs and other | 1,115 | 1,115 |
Goodwill And Intangible Assets, Net, Total | 1,989 | 1,989 |
Equity and cost method investments | 228 | 216 |
Notes receivable | 137 | 180 |
Deferred taxes, net | 671 | 676 |
Other | 320 | 267 |
Total Assets | 6,480 | 6,342 |
Current liabilities | ' | ' |
Current portion of long-term debt | 52 | 407 |
Accounts payable | 496 | 569 |
Accrued payroll and benefits | 733 | 745 |
Liability for guest loyalty programs | 583 | 593 |
Other | 558 | 459 |
Liabilities, Current, Total | 2,422 | 2,773 |
Long-term debt | 3,104 | 2,528 |
Liability for guest loyalty programs | 1,450 | 1,428 |
Other long-term liabilities | 913 | 898 |
Shareholders’ deficit | ' | ' |
Class A Common Stock | 5 | 5 |
Additional paid-in-capital | 2,670 | 2,585 |
Retained earnings | 3,763 | 3,509 |
Treasury stock, at cost | -7,798 | -7,340 |
Accumulated other comprehensive loss | -49 | -44 |
Stockholders' Deficit Attributable to Parent | -1,409 | -1,285 |
Liabilities and Deficit, Total | $6,480 | $6,342 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 07, 2012 | Sep. 30, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net income | $390 | $475 |
Adjustments to reconcile to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 100 | 113 |
Income taxes | 154 | 67 |
Liability for guest loyalty programs | -9 | 5 |
Asset impairments and write-offs | 13 | 19 |
Working capital changes and other | 160 | 126 |
Net cash provided by operating activities | 808 | 805 |
INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -316 | -226 |
Dispositions | 65 | 0 |
Loan advances | -2 | -5 |
Loan collections and sales | 126 | 62 |
Equity and cost method investments | -12 | -16 |
Contract acquisition costs | -52 | -36 |
Other | -22 | -88 |
Net cash used in investing activities | -213 | -309 |
FINANCING ACTIVITIES | ' | ' |
Commercial paper/credit facility, net | 110 | 268 |
Issuance of long-term debt | 590 | 345 |
Repayment of long-term debt | -368 | -405 |
Issuance of Class A Common Stock | 81 | 141 |
Dividends paid | -110 | -144 |
Purchase of treasury stock | -884 | -644 |
Other | -11 | -1 |
Net cash used in financing activities | -592 | -440 |
INCREASE IN CASH AND EQUIVALENTS | 3 | 56 |
CASH AND EQUIVALENTS, beginning of period | 102 | 88 |
CASH AND EQUIVALENTS, end of period | $105 | $144 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | ||
Sep. 30, 2013 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
Basis of Presentation | ' | ||
Basis of Presentation | |||
The condensed consolidated financial statements present the results of operations, financial position, and cash flows of Marriott International, Inc. (“Marriott,” and together with its subsidiaries “we,” “us,” or the “Company”). In order to make this report easier to read, we refer throughout to (i) our Condensed Consolidated Financial Statements as our “Financial Statements,” (ii) our Condensed Consolidated Statements of Income as our “Income Statements,” (iii) our Condensed Consolidated Balance Sheets as our “Balance Sheets,” (iv) our properties, brands, or markets in the United States and Canada as “North America” or “North American,” and (v) our properties, brands, or markets outside of the United States and Canada as “international.” In addition, references throughout to numbered "Footnotes" refer to the numbered Notes in these Notes to Condensed Consolidated Financial Statements, unless otherwise noted. | |||
These condensed consolidated Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Although we believe our disclosures are adequate to make the information presented not misleading, you should read the financial statements in this report in conjunction with the consolidated financial statements and notes to those financial statements in our Annual Report on Form 10-K for the fiscal year ended December 28, 2012 (“2012 Form 10-K”). Certain terms not otherwise defined in this Form 10-Q have the meanings specified in our 2012 Form 10-K. | |||
Preparation of financial statements that conform with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates. | |||
Beginning with our 2013 fiscal year, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 fiscal year began on December 29, 2012 (the day after the end of the 2012 fiscal year) and will end on December 31, 2013, and our 2013 quarters include the three month periods ended March 31, June 30, September 30, and December 31, except that the period ended March 31, 2013 also included December 29, 2012 through December 31, 2012. Our future fiscal years will begin on January 1 and end on December 31. Historically, our fiscal year was a 52-53 week fiscal year that ended on the Friday nearest to December 31, and our quarterly reporting cycle included twelve week periods for the first, second, and third quarters and a sixteen week period (or in some cases a seventeen week period) for the fourth quarter. We have not restated and do not plan to restate historical results. | |||
The table below shows the reporting periods as we refer to them in this report, their date ranges, and the number of days in each: | |||
Reporting Period | Date Range | Number of Days | |
2013 third quarter | July 1, 2013 - September 30, 2013 | 92 | |
2012 third quarter | June 16, 2012 - September 7, 2012 | 84 | |
2013 first three quarters | December 29, 2012 - September 30, 2013 | 276 | |
2012 first three quarters | December 31, 2011 - September 7, 2012 | 252 | |
2013 fiscal year | December 29, 2012 - December 31, 2013 | 368 | |
2012 fiscal year | December 31, 2011 - December 28, 2012 | 364 | |
As a result of the change in our calendar, our 2013 third quarter had 8 more days of activity than our 2012 third quarter, and our 2013 first three quarters had 24 more days of activity than our 2012 first three quarters. Compared to the corresponding periods in 2012, our 2013 full fiscal year will have 4 more days and our 2013 fourth quarter will have 20 fewer days. | |||
In our opinion, our Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position as of September 30, 2013, and December 28, 2012, the results of our operations for the 92 days and 276 days ended September 30, 2013, and 84 days and 252 days ended September 7, 2012, and cash flows for the 276 days ended September 30, 2013, and 252 days ended September 7, 2012. Interim results may not be indicative of fiscal year performance because of seasonal and short-term variations. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements. |
New_Accounting_Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Standards | ' |
New Accounting Standards | |
Accounting Standards Update No. 2013-02 - “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU No. 2013-02”) | |
ASU No. 2013-02, which we adopted in our 2013 first quarter, amends existing guidance by requiring disclosure of the changes in the components of accumulated other comprehensive income for the current period and additional information about items reclassified out of accumulated other comprehensive income. Our adoption of this update required additional disclosures but did not have a material impact on our Financial Statements. Please see Footnote No. 10, "Comprehensive Income and Capital Structure" for those additional disclosures. | |
Future Adoption of Accounting Standards | |
Accounting Standards Update No. 2013-11 - “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU No. 2013-11”) | |
ASU No. 2013-11 provides financial statement presentation guidance on whether an unrecognized tax benefit must be presented as either a reduction to a deferred tax asset or separately as a liability. ASU No. 2013-11 will be effective for interim or annual periods beginning after December 15, 2013, which for us will be our 2014 first quarter. We do not believe the adoption of this update will have a material impact on our financial statements. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
We file income tax returns, including returns for our subsidiaries, in various jurisdictions around the world. The Internal Revenue Service ("IRS") has examined our federal income tax returns, and we have settled all issues for tax years through 2009. We participated in the IRS Compliance Assurance Program ("CAP"), which accelerates IRS examination of key transactions with the goal of resolving any issues before the taxpayer files its return, for the 2010 through 2013 tax years. For the 2010 and 2011 tax years, all but one issue, which we are appealing, have been resolved, including all matters that could affect the Company's cash tax benefits related to our spin-off in 2011 of our timeshare operations and timeshare development business. The audit for the 2012 tax year is substantially complete, and we expect that, with the exception of one issue which we will appeal, all issues will be resolved. The audit for the 2013 tax year is currently ongoing. Various foreign, state, and local income tax returns are also under examination by the applicable taxing authorities. | |
At the end of the 2013 third quarter, our unrecognized tax benefits balance was $29 million, unchanged from the end of the 2013 second quarter and year-end 2012. The unrecognized tax benefits balance included $13 million of tax positions that, if recognized, would impact our effective tax rate. | |
As a large taxpayer, the IRS and other taxing authorities continually audit us. We anticipate resolving an international issue which arose in 2011 related to financing activity during the next 12 months for which we have an unrecognized tax benefit of $5 million. | |
On January 2, 2013, the American Taxpayer Relief Act of 2012 (the "Act") was signed into law. Some of the provisions contained in the Act were retroactive, and we recognized a $3 million benefit in the 2013 first three quarters related to the Act. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||
Sep. 30, 2013 | |||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||
Share-Based Compensation | ' | ||
Share-Based Compensation | |||
Under our Stock and Cash Incentive Plan (the “Stock Plan”), we award: (1) stock options (our "Stock Option Program") to purchase our Class A Common Stock (our “common stock”); (2) stock appreciation rights (“SARs”) for our common stock (our “SAR Program”); (3) restricted stock units (“RSUs”) of our common stock; and (4) deferred stock units. We grant awards at exercise prices or strike prices that equal the market price of our common stock on the date of grant. | |||
We recorded share-based compensation expense for award grants of $22 million for the 2013 third quarter, $19 million for the 2012 third quarter, $69 million for the 2013 first three quarters, and $57 million for the 2012 first three quarters. Deferred compensation costs related to unvested awards totaled $137 million at September 30, 2013 and $122 million at December 28, 2012. | |||
RSUs | |||
We granted 2.5 million RSUs during the 2013 first three quarters to certain officers and key employees, and those units vest generally over four years in equal annual installments commencing one year after the grant date. We also granted 0.2 million service and performance RSUs ("S&P RSUs") during the 2013 first three quarters to certain named executive officers. In addition to generally being subject to pro-rata annual vesting conditioned on continued service consistent with the standard form of RSU, these S&P RSUs are also subject to the satisfaction of a performance condition, expressed as an EBITDA goal. RSUs, including S&P RSUs, granted in the 2013 first three quarters had a weighted average grant-date fair value of $37. | |||
SARs and Stock Options | |||
We granted 0.7 million SARs and 0.1 million stock options to officers, key employees, and directors during the 2013 first three quarters. These SARs and options generally expire ten years after the grant date and both vest and may be exercised in cumulative installments of one quarter at the end of each of the first four years following the grant date. The weighted average grant-date fair value of SARs granted in the 2013 first three quarters was $13 and the weighted average exercise price was $39. The weighted average grant-date fair value of stock options granted in the 2013 first three quarters was $13 and the weighted average exercise price was $39. | |||
On the grant date, we use a binomial lattice-based valuation model to estimate the fair value of each SAR and option granted. This valuation model uses a range of possible stock price outcomes over the term of the SAR and option, discounted back to a present value using a risk-free rate. Because of the limitations with closed-form valuation models, such as the Black-Scholes model, we have determined that this more flexible binomial model provides a better estimate of the fair value of our options and SARs because it takes into account employee and non-employee director exercise behavior based on changes in the price of our stock and also allows us to use other dynamic assumptions. | |||
We used the following assumptions to determine the fair value of the SARs and stock options we granted during the 2013 first three quarters: | |||
Expected volatility | 30 - 31% | ||
Dividend yield | 1.17 | % | |
Risk-free rate | 1.8 - 1.9% | ||
Expected term (in years) | 10-Aug | ||
In making these assumptions, we base expected volatility on the historical movement of Marriott's stock price. We base risk-free rates on the corresponding U.S. Treasury spot rates for the expected duration at the date of grant, which we convert to a continuously compounded rate. The dividend yield assumption takes into consideration both historical levels and expectations of future payout. The weighted average expected terms for SARs and options are an output of our valuation model which utilizes historical data in estimating the period of time that the SARs and options are expected to remain unexercised. We calculate the expected terms for SARs and options for separate groups of retirement eligible and non-retirement eligible employees. Our valuation model also uses historical data to estimate exercise behaviors, which includes determining the likelihood that employees will exercise their SARs and options before expiration at a certain multiple of stock price to exercise price. In recent years, non-employee directors have generally exercised grants in their last year of exercisability. | |||
Other Information | |||
As of the end of the 2013 third quarter, we had reserved 34 million shares under the Stock Plan, including 13 million shares under the Stock Option Program and the SAR Program. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. We show the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table: | ||||||||||||||||
At September 30, 2013 | At December 28, 2012 | |||||||||||||||
($ in millions) | Carrying | Fair Value | Carrying | Fair Value | ||||||||||||
Amount | Amount | |||||||||||||||
Cost method investments | $ | 19 | $ | 24 | $ | 21 | $ | 23 | ||||||||
Senior, mezzanine, and other loans | 137 | 138 | 180 | 172 | ||||||||||||
Marketable securities and other debt securities | 106 | 106 | 56 | 56 | ||||||||||||
Total long-term financial assets | $ | 262 | $ | 268 | $ | 257 | $ | 251 | ||||||||
Senior Notes | $ | (2,184 | ) | $ | (2,290 | ) | $ | (1,833 | ) | $ | (2,008 | ) | ||||
Commercial paper | (790 | ) | (790 | ) | (501 | ) | (501 | ) | ||||||||
Other long-term debt | (125 | ) | (131 | ) | (130 | ) | (139 | ) | ||||||||
Other long-term liabilities | (54 | ) | (54 | ) | (69 | ) | (69 | ) | ||||||||
Total long-term financial liabilities | $ | (3,153 | ) | $ | (3,265 | ) | $ | (2,533 | ) | $ | (2,717 | ) | ||||
We estimate the fair value of our cost method investments by applying a cap rate to stabilized earnings (a market approach using Level 3 inputs). During the 2012 third quarter, we determined that a cost method investment was other-than-temporarily impaired and, accordingly, we recorded the investment at its fair value as of the end of the 2012 third quarter ($12 million) and reflected a $7 million loss in the "Gains and other income" caption of our Income Statement. We estimated the fair value of the investment using cash flow projections discounted at risk premiums commensurate with market conditions. We used Level 3 inputs for these discounted cash flow analyses and our assumptions included revenue forecasts, cash flow projections, and timing of the sale of each hotel in the underlying investment. | ||||||||||||||||
We estimate the fair value of our senior, mezzanine, and other loans, including the current portion, by discounting cash flows using risk-adjusted rates, both of which are Level 3 inputs. | ||||||||||||||||
We are required to carry our marketable securities at fair value. Our marketable securities include debt securities of the U.S. Government, its sponsored agencies and other U.S. corporations invested for our self-insurance programs, as well as shares of a publicly traded company, which we value using directly observable Level 1 inputs. The carrying value of these marketable securities at the end of our 2013 third quarter was $38 million. In the 2013 second quarter, we acquired a $65 million mandatorily redeemable preferred equity ownership interest in an entity that owns three hotels that we manage. We account for this investment as a debt security (with an amortized cost of $68 million at the end of the 2013 third quarter, including accrued interest income), and we included it in the "Marketable securities and other debt securities" caption in the preceding table. We estimated the $68 million fair value of this debt security by discounting cash flows using risk-adjusted rates, both of which are Level 3 inputs. The debt security matures in 2015 subject to annual extensions through 2018. We do not intend to sell the debt security and it is not more likely than not that we will be required to sell the investment before recovery of the amortized cost basis, which may be maturity. | ||||||||||||||||
In the 2013 second quarter, we received $22 million in net cash proceeds for the sale of a portion of our shares of a publicly traded company (with an amortized cost of $14 million at the date of sale) and recognized an $8 million gain in the "Gains and other income" caption of our Income Statements. This gain included recognition of unrealized gains that we recorded in other comprehensive income as of the end of the 2013 first quarter. See Footnote No. 10, "Comprehensive Income and Capital Structure" for additional information on the reclassification of these unrealized gains from accumulated other comprehensive income. | ||||||||||||||||
We estimate the fair value of our other long-term debt, including the current portion and excluding leases, using expected future payments discounted at risk-adjusted rates, both of which are Level 3 inputs. We determine the fair value of our senior notes using quoted market prices, which are directly observable Level 1 inputs. As noted in Footnote No. 9, "Long-term Debt," even though our commercial paper borrowings generally have short-term maturities of 30 days or less, we classify outstanding commercial paper borrowings as long-term based on our ability and intent to refinance them on a long-term basis. As we are a frequent issuer of commercial paper, we use pricing from recent transactions as Level 2 inputs in estimating fair value. At the end of the 2013 third quarter and year-end 2012, we determined that the carrying value of our commercial paper approximated its fair value due to the short maturity. Our other long-term liabilities largely consist of guarantees. As noted in Footnote No. 11, "Contingencies," we measure our liability for guarantees at fair value on a nonrecurring basis, that is when we issue or modify a guarantee, using Level 3 internally developed inputs. At the end of the 2013 third quarter and year-end 2012, we determined that the carrying values of our guarantee liabilities approximated their fair values based on Level 3 inputs. | ||||||||||||||||
See the “Fair Value Measurements” caption of Footnote No. 1, “Summary of Significant Accounting Policies” of our 2012 Form 10-K for more information on the input levels we use in determining fair value. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share: | ||||||||||||||||
92 Days Ended | 84 Days Ended | 276 Days Ended | 252 Days Ended | |||||||||||||
30-Sep-13 | 7-Sep-12 | 30-Sep-13 | 7-Sep-12 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Computation of Basic Earnings Per Share | ||||||||||||||||
Net income | $ | 160 | $ | 143 | $ | 475 | $ | 390 | ||||||||
Weighted average shares outstanding | 301.9 | 319.4 | 306.8 | 327 | ||||||||||||
Basic earnings per share | $ | 0.53 | $ | 0.45 | $ | 1.55 | $ | 1.19 | ||||||||
Computation of Diluted Earnings Per Share | ||||||||||||||||
Net income | $ | 160 | $ | 143 | $ | 475 | $ | 390 | ||||||||
Weighted average shares outstanding | 301.9 | 319.4 | 306.8 | 327 | ||||||||||||
Effect of dilutive securities | ||||||||||||||||
Employee stock option and SARs plans | 3.8 | 6 | 4.1 | 6.5 | ||||||||||||
Deferred stock incentive plans | 0.8 | 0.8 | 0.8 | 0.9 | ||||||||||||
Restricted stock units | 3 | 3.1 | 3.1 | 3.1 | ||||||||||||
Shares for diluted earnings per share | 309.5 | 329.3 | 314.8 | 337.5 | ||||||||||||
Diluted earnings per share | $ | 0.52 | $ | 0.44 | $ | 1.51 | $ | 1.16 | ||||||||
We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We determine dilution based on earnings. | ||||||||||||||||
Pursuant to the applicable accounting guidance for calculating earnings per share, we have not included the following stock options and SARs in our calculation of diluted earnings per share because the exercise prices were greater than the average market prices for the applicable periods: | ||||||||||||||||
(a) | for the 2013 third quarter, 0.4 million options and SARs; | |||||||||||||||
(b) | for the 2012 third quarter, 1.0 million options and SARs; | |||||||||||||||
(c) | for the 2013 first three quarters, 0.4 million options and SARs; and | |||||||||||||||
(d) | for the 2012 first three quarters, 1.0 million options and SARs. |
Property_and_Equipment
Property and Equipment | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
The following table shows the composition of our property and equipment balances at the end of the 2013 third quarter and year-end 2012: | ||||||||
At Period End | ||||||||
($ in millions) | September 30, | December 28, | ||||||
2013 | 2012 | |||||||
Land | $ | 550 | $ | 590 | ||||
Buildings and leasehold improvements | 731 | 703 | ||||||
Furniture and equipment | 853 | 854 | ||||||
Construction in progress | 327 | 383 | ||||||
2,461 | 2,530 | |||||||
Accumulated depreciation | (972 | ) | (991 | ) | ||||
$ | 1,489 | $ | 1,539 | |||||
The following table shows the composition of these property and equipment balances that we recorded as capital leases: | ||||||||
At Period End | ||||||||
($ in millions) | September 30, | December 28, | ||||||
2013 | 2012 | |||||||
Land | $ | 31 | $ | 30 | ||||
Buildings and leasehold improvements | 150 | 143 | ||||||
Furniture and equipment | 42 | 38 | ||||||
Construction in progress | 2 | 4 | ||||||
225 | 215 | |||||||
Accumulated depreciation | (89 | ) | (82 | ) | ||||
$ | 136 | $ | 133 | |||||
Notes_Receivable
Notes Receivable | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Notes Receivable | ' | |||||||
Notes Receivable | ||||||||
The following table shows the composition of our notes receivable balances (net of reserves and unamortized discounts) at the end of the 2013 third quarter and year-end 2012: | ||||||||
At Period End | ||||||||
($ in millions) | September 30, | December 28, | ||||||
2013 | 2012 | |||||||
Senior, mezzanine, and other loans | $ | 189 | $ | 242 | ||||
Less current portion | (52 | ) | (62 | ) | ||||
$ | 137 | $ | 180 | |||||
The following table shows the expected future principal payments (net of reserves and unamortized discounts) as well as interest rates for our notes receivable as of the end of the 2013 third quarter: | ||||||||
Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates ($ in millions) | Amount | |||||||
2013 | $ | 23 | ||||||
2014 | 38 | |||||||
2015 | 75 | |||||||
2016 | 4 | |||||||
2017 | 2 | |||||||
Thereafter | 47 | |||||||
Balance at September 30, 2013 | $ | 189 | ||||||
Weighted average interest rate at September 30, 2013 | 4.7 | % | ||||||
Range of stated interest rates at September 30, 2013 | 0 to 8.0% | |||||||
The following table shows the unamortized discounts for our notes receivable at the end of the 2013 third quarter and year-end 2012: | ||||||||
Notes Receivable Unamortized Discounts ($ in millions) | Total | |||||||
Balance at year-end 2012 | $ | 11 | ||||||
Balance at September 30, 2013 | $ | 12 | ||||||
At the end of the 2013 third quarter, our recorded investment in impaired “Senior, mezzanine, and other loans” was $102 million, and we had a $92 million notes receivable reserve representing an allowance for credit losses, leaving $10 million of our investment in impaired loans, for which we had no related allowance for credit losses. At year-end 2012, our recorded investment in impaired “Senior, mezzanine, and other loans” was $93 million, and we had a $79 million notes receivable reserve representing an allowance for credit losses, leaving $14 million of our investment in impaired loans, for which we had no related allowance for credit losses. Our average investment in impaired “Senior, mezzanine, and other loans” totaled $104 million for the 2013 third quarter, $98 million for the 2013 first three quarters, $101 million for the 2012 third quarter, and $99 million for the 2012 first three quarters. | ||||||||
The following table summarizes the activity related to our “Senior, mezzanine, and other loans” notes receivable reserve for the 2013 first three quarters: | ||||||||
($ in millions) | Notes Receivable | |||||||
Reserve | ||||||||
Balance at year-end 2012 | $ | 79 | ||||||
Transfers and other | 13 | |||||||
Balance at September 30, 2013 | $ | 92 | ||||||
We do not have any past due senior, mezzanine, and other loans as of the end of the 2013 third quarter. |
Longterm_Debt
Long-term Debt | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt | ' | |||||||
Long-term Debt | ||||||||
We provide detail on our long-term debt balances in the following table as of the end of the 2013 third quarter and year-end 2012: | ||||||||
At Period End | ||||||||
($ in millions) | September 30, | December 28, | ||||||
2013 | 2012 | |||||||
Senior Notes: | ||||||||
Series G, interest rate of 5.810%, face amount of $316, maturing November 10, 2015 (effective interest rate of 6.68%)(1) | $ | 311 | $ | 309 | ||||
Series H, interest rate of 6.200%, face amount of $289, maturing June 15, 2016 (effective interest rate of 6.37%)(1) | 289 | 289 | ||||||
Series I, interest rate of 6.375%, face amount of $293, maturing June 15, 2017 (effective interest rate of 6.52%)(1) | 292 | 292 | ||||||
Series J, matured February 15, 2013 | — | 400 | ||||||
Series K, interest rate of 3.000%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.45%)(1) | 595 | 594 | ||||||
Series L, interest rate of 3.250%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.35%)(1) | 349 | 349 | ||||||
Series M, interest rate of 3.375%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.60%)(1) | 348 | — | ||||||
Commercial paper, average interest rate of 0.33% at September 30, 2013 | 790 | 501 | ||||||
$2,000 Credit Facility | — | 15 | ||||||
Other | 182 | 186 | ||||||
3,156 | 2,935 | |||||||
Less current portion | (52 | ) | (407 | ) | ||||
$ | 3,104 | $ | 2,528 | |||||
(1) | Face amount and effective interest rate are as of September 30, 2013. | |||||||
All of our long-term debt was, and to the extent currently outstanding is, recourse to us but unsecured. Other debt in the preceding table includes capital leases, among other items. | ||||||||
In the 2013 first quarter, we made a $411 million cash payment of principal and interest to retire, at maturity, all of our outstanding Series J Notes. | ||||||||
In the 2013 third quarter, we amended and restated our multicurrency revolving credit agreement (the “Credit Facility”) to extend the facility's expiration from June 23, 2016 to July 18, 2018 and increase the facility size from $1,750 million to $2,000 million of aggregate effective borrowings. The material terms of the amended and restated Credit Facility are otherwise unchanged, and the facility continues to support general corporate needs, including working capital, capital expenditures, share repurchases, and letters of credit. The availability of the Credit Facility also supports our commercial paper program. Borrowings under the Credit Facility generally bear interest at LIBOR (the London Interbank Offered Rate) plus a spread, based on our public debt rating. We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating. While any outstanding commercial paper borrowings and/or borrowings under our Credit Facility generally have short-term maturities, we classify the outstanding borrowings as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis. See the “Cash Requirements and Our Credit Facilities” caption later in this report in the “Liquidity and Capital Resources” section for information on our available borrowing capacity at September 30, 2013. | ||||||||
In the 2013 third quarter, we issued $350 million aggregate principal amount of 3.375 percent Series M Notes due 2020 (the "Series M Notes"). We received net proceeds of approximately $345 million from the offering, after deducting the underwriting discount and estimated expenses. We will pay interest on the Series M Notes on April 15 and October 15 of each year, commencing on April 15, 2014. The Notes will mature on October 15, 2020, and we may redeem them, in whole or in part, at our option, under the terms provided in the form of Note. We issued the Series M Notes under an indenture dated as of November 16, 1998 with The Bank of New York Mellon, as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank), as trustee. | ||||||||
We show future principal payments for our debt as of the end of the 2013 third quarter in the following table: | ||||||||
Debt Principal Payments ($ in millions) | Amount | |||||||
2013 | $ | 2 | ||||||
2014 | 52 | |||||||
2015 | 318 | |||||||
2016 | 297 | |||||||
2017 | 301 | |||||||
Thereafter | 2,186 | |||||||
Balance at September 30, 2013 | $ | 3,156 | ||||||
We paid cash for interest, net of amounts capitalized, of $58 million in the 2013 first three quarters and $62 million in the 2012 first three quarters. |
Comprehensive_Income_and_Capit
Comprehensive Income and Capital Structure | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
Comprehensive Income and Capital Structure | ' | ||||||||||||||||||||||||||
Comprehensive Income and Capital Structure | |||||||||||||||||||||||||||
The following table details the accumulated other comprehensive income (loss) activity for the 2013 first three quarters: | |||||||||||||||||||||||||||
($ in millions) | Foreign Currency Translation Adjustments | Other Derivative Instrument Adjustments | Unrealized Gains on Available-For-Sale Securities | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
Balance at year-end 2012 | $ | (32 | ) | $ | (19 | ) | $ | 7 | $ | (44 | ) | ||||||||||||||||
Other comprehensive (loss) income before reclassifications (1) | (2 | ) | — | 4 | 2 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (1 | ) | (6 | ) | (7 | ) | ||||||||||||||||||||
Net other comprehensive loss | (2 | ) | (1 | ) | (2 | ) | (5 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | (34 | ) | $ | (20 | ) | $ | 5 | $ | (49 | ) | ||||||||||||||||
(1) | We present the portions of other comprehensive income (loss) before reclassifications for the 2013 first three quarters that relate to unrealized gains on available-for-sale securities net of $3 million of deferred taxes. | ||||||||||||||||||||||||||
The following table details the effect on net income of significant amounts reclassified out of accumulated other comprehensive loss for the 2013 first three quarters: | |||||||||||||||||||||||||||
($ in millions) | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss Components | 276 Days Ended | Income Statement Line Item Affected | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||
Other derivative instrument adjustments | |||||||||||||||||||||||||||
Other, net | $ | 1 | Net income | ||||||||||||||||||||||||
Unrealized gains on available-for-sale securities | |||||||||||||||||||||||||||
Sale of an available-for-sale security | $ | 10 | Gains and other income | ||||||||||||||||||||||||
10 | Income before income taxes | ||||||||||||||||||||||||||
(4 | ) | Provision for income taxes | |||||||||||||||||||||||||
$ | 6 | Net income | |||||||||||||||||||||||||
The following table details the changes in common shares outstanding and shareholders’ deficit for the 2013 first three quarters: | |||||||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||||||
Common | Total | Class A | Additional | Retained | Treasury Stock, | Accumulated | |||||||||||||||||||||
Shares | Common | Paid-in- | Earnings | at Cost | Other | ||||||||||||||||||||||
Outstanding | Stock | Capital | Comprehensive | ||||||||||||||||||||||||
Loss | |||||||||||||||||||||||||||
310.9 | Balance at year-end 2012 | $ | (1,285 | ) | $ | 5 | $ | 2,585 | $ | 3,509 | $ | (7,340 | ) | $ | (44 | ) | |||||||||||
— | Net income | 475 | — | — | 475 | — | — | ||||||||||||||||||||
— | Other comprehensive loss | (5 | ) | — | — | — | — | (5 | ) | ||||||||||||||||||
— | Cash dividends ($0.4700 per share) | (144 | ) | — | — | (144 | ) | — | — | ||||||||||||||||||
5.1 | Employee stock plan issuance | 179 | — | 85 | (77 | ) | 171 | — | |||||||||||||||||||
(15.6 | ) | Purchase of treasury stock | (629 | ) | — | — | — | (629 | ) | — | |||||||||||||||||
300.4 | Balance at September 30, 2013 | $ | (1,409 | ) | $ | 5 | $ | 2,670 | $ | 3,763 | $ | (7,798 | ) | $ | (49 | ) | |||||||||||
Contingencies
Contingencies | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Contingencies | ' | |||||||
Contingencies | ||||||||
Guarantees | ||||||||
We issue guarantees to certain lenders and hotel owners, chiefly to obtain long-term management contracts. The guarantees generally have a stated maximum funding amount and a term of four to ten years. The terms of guarantees to lenders generally require us to fund if cash flows from hotel operations are inadequate to cover annual debt service or to repay the loan at the end of the term. The terms of the guarantees to hotel owners generally require us to fund if the hotels do not attain specified levels of operating profit. Guarantee fundings to lenders and hotel owners are generally recoverable as loans repayable to us out of future hotel cash flows and/or proceeds from the sale of hotels. We also enter into project completion guarantees with certain lenders in conjunction with hotels that we or our joint venture partners are building. | ||||||||
We measure and record our liability for the fair value of a guarantee on a nonrecurring basis, that is when we issue or modify a guarantee, using Level 3 internally developed inputs. We generally base our calculation of the estimated fair value of a guarantee on the income approach or the market approach, depending on the type of guarantee. For the income approach, we use internally developed discounted cash flow and Monte Carlo simulation models that include the following assumptions, among others: projections of revenues and expenses and related cash flows based on assumed growth rates and demand trends; historical volatility of projected performance; the guaranteed obligations; and applicable discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. For the market approach, we use internal analyses based primarily on market comparable data and our assumptions about market capitalization rates, credit spreads, growth rates, and inflation. We show the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for guarantees for which we are the primary obligor at September 30, 2013 in the following table: | ||||||||
($ in millions) | Maximum Potential | Liability for Guarantees | ||||||
Guarantee Type | Amount of Future Fundings | |||||||
Debt service | $ | 76 | $ | 6 | ||||
Operating profit | 105 | 44 | ||||||
Other | 16 | 1 | ||||||
Total guarantees where we are the primary obligor | $ | 197 | $ | 51 | ||||
We included our liability at September 30, 2013 for guarantees for which we are the primary obligor in our Balance Sheet as follows: $3 million in “Other current liabilities” and $48 million in “Other long-term liabilities.” | ||||||||
Our guarantees listed in the preceding table include $13 million of debt service guarantees, $5 million of operating profit guarantees, and $1 million of other guarantees that will not be in effect until the underlying properties open and we begin to operate the properties or certain other events occur. | ||||||||
The preceding table does not include the following guarantees: | ||||||||
• | $106 million of guarantees for Senior Living Services lease obligations of $78 million (expiring in 2018) and lifecare bonds of $28 million (estimated to expire in 2016), for which we are secondarily liable. Sunrise Senior Living, Inc. (“Sunrise”) is the primary obligor on both the leases and $4 million of the lifecare bonds; HCP, Inc., as successor by merger to CNL Retirement Properties, Inc. (“CNL”), is the primary obligor on $23 million of the lifecare bonds, and Five Star Senior Living is the primary obligor on the remaining $1 million of lifecare bonds. Before we sold the Senior Living Services business in 2003, these were our guarantees of obligations of our then consolidated Senior Living Services subsidiaries. Sunrise and CNL have indemnified us for any fundings we may be called upon to make under these guarantees. Our liability for these guarantees had a carrying value of $3 million at September 30, 2013. In 2011 Sunrise provided us $3 million cash collateral to cover potential exposure under the existing lease and bond obligations for 2012 and 2013. In conjunction with our consent of the extension in 2011 of certain lease obligations for an additional five-year term until 2018, Sunrise provided us an additional $1 million cash collateral and an $85 million letter of credit issued by Key Bank to secure our exposure under the lease guarantees for the continuing leases during the extension term and certain other obligations of Sunrise. During the extension term, Sunrise agreed to make an annual payment to us from the cash flow of the continuing lease facilities, subject to a $1 million annual minimum. In the 2013 first quarter, Sunrise merged with Health Care REIT, Inc., and Sunrise's management business was acquired by an entity formed by affiliates of Kohlberg Kravis Roberts & Co. LP, Beecken Petty O'Keefe & Co., Coastwood Senior Housing Partners LLC, and Health Care REIT. In conjunction with this acquisition, Sunrise funded an additional $2 million cash collateral and certified that the $85 million letter of credit remains in full force and effect. | |||||||
• | Lease obligations, for which we became secondarily liable when we acquired the Renaissance Hotel Group N.V. in 1997, consisting of annual rent payments of approximately $6 million and total remaining rent payments through the initial term of approximately $36 million. Most of these obligations expire by the end of 2020. CTF Holdings Ltd. (“CTF”) had originally provided €35 million in cash collateral in the event that we are required to fund under such guarantees, approximately $5 million (€4 million) of which remained at September 30, 2013. Our exposure for the remaining rent payments through the initial term will decline to the extent that CTF obtains releases from the landlords or these hotels exit the system. Since the time we assumed these guarantees, we have not funded any amounts, and we do not expect to fund any amounts under these guarantees in the future. | |||||||
• | Certain guarantees and commitments relating to the timeshare business, which were outstanding at the time of the 2011 Timeshare spin-off and for which we became secondarily liable as part of the spin-off. These Marriott Vacations Worldwide Corporation ("MVW") payment obligations, for which we currently have a total exposure of $22 million, relate to a project completion guarantee, various letters of credit, and several guarantees. MVW has indemnified us for these obligations. At the end of the 2013 third quarter, we expect these obligations will expire as follows: $1 million in 2013, $5 million in 2014, $3 million in 2017, and $13 million (17 million Singapore Dollars) in 2022. We have not funded any amounts under these obligations, and do not expect to do so in the future. Our liability for these obligations had a carrying value of $2 million at September 30, 2013. | |||||||
• | A guarantee for a lease, originally entered into in 2000, for which we became secondarily liable in 2012 as a result of our sale of the ExecuStay corporate housing business to Oakwood. Oakwood has indemnified us for the obligations under this guarantee. Our total exposure at the end of the 2013 third quarter for this guarantee is $11 million in future rent payments if the lease is terminated through 2013 and will be reduced to $6 million if the lease is terminated from 2014 through the end of the lease in 2019. Our liability for this guarantee had a carrying value of $1 million at September 30, 2013. | |||||||
• | A guarantee for two adjoining leases, originally entered into in 2000 and 2006, for which we became secondarily liable in the 2013 third quarter as a result of our assignment of the leases to Accenture LLP. Accenture is the primary obligor and has indemnified us for the obligations under these leases and the guarantee. Our total exposure at the end of the 2013 third quarter is $7 million related to future rent payments through the end of the leases in 2017. | |||||||
In addition to the guarantees described in the preceding paragraphs, in conjunction with financing obtained for specific projects or properties owned by joint ventures in which we are a party, we may provide industry standard indemnifications to the lender for loss, liability, or damage occurring as a result of the actions of the other joint venture owner or our own actions. | ||||||||
Commitments and Letters of Credit | ||||||||
In addition to the guarantees we note in the preceding paragraphs, as of September 30, 2013, we had the following commitments outstanding: | ||||||||
• | A commitment to invest up to $10 million of equity for a noncontrolling interest in a partnership that plans to purchase North American full-service and limited-service properties, or purchase or develop hotel-anchored mixed-use real estate projects. We expect to fund $9 million of this commitment as follows: $7 million in 2014, and $2 million in 2015. We do not expect to fund the remaining $1 million of this commitment. | |||||||
• | A commitment to invest up to $23 million of equity for noncontrolling interests in partnerships that plan to purchase or develop limited-service properties in Asia. We expect to fund $23 million of this commitment as follows: $2 million in 2013, $13 million in 2014, and $8 million in 2015. | |||||||
• | A commitment, with no expiration date, to invest up to $11 million in a joint venture for development of a new property. We expect to fund this commitment as follows: $8 million in 2014 and $3 million in 2015. | |||||||
• | A commitment to invest $20 million in the renovation of a leased hotel. We expect to fund this commitment by the end of 2015. | |||||||
• | We have a right and under certain circumstances an obligation to acquire our joint venture partner’s remaining 45 percent interest in two joint ventures over the next 8 years at a price based on the performance of the ventures. We made a $12 million (€9 million) deposit in conjunction with this contingent obligation in 2011 and $8 million (€6 million) in deposits in 2012. In the 2013 first quarter we acquired an additional five percent noncontrolling interest in each venture, applying $5 million (€4 million) of those deposits. The remaining deposits are refundable to the extent we do not acquire our joint venture partner’s remaining interests. | |||||||
• | We have a right and under certain circumstances an obligation during the next year to acquire, for approximately $45 million (€33 million), the landlord’s interest in the real estate property and attached assets of a hotel that we lease. We have recorded the lease as a capital lease. | |||||||
• | Various commitments for the purchase of information technology hardware, software, as well as accounting, finance, and maintenance services in the normal course of business totaling $116 million. We expect to fund these commitments as follows: $33 million in 2013, $53 million in 2014, $17 million in 2015, and $13 million in 2016. The majority of these commitments will be recovered through cost reimbursement charges to properties in our system. | |||||||
• | Several commitments aggregating $34 million with no expiration date and which we do not expect to fund. | |||||||
• | A commitment to invest up to $10 million under certain circumstances for additional mandatorily redeemable preferred equity ownership interest in an entity that owns three hotels. We may fund this commitment, which expires in 2015 subject to annual extensions through 2018; however, we have not yet determined the amount or timing of any potential funding. | |||||||
• | $5 million loan commitment that we extended to an owner of a lodging property in the 2013 third quarter which will expire in the 2013 fourth quarter. We funded $1 million in the 2013 third quarter, expect to fund $3 million in the 2013 fourth quarter, and do not expect to fund the remaining $1 million. | |||||||
At September 30, 2013, we had $68 million of letters of credit outstanding ($67 million outside the Credit Facility and $1 million under our Credit Facility), the majority of which were for our self-insurance programs. Surety bonds issued as of September 30, 2013, totaled $121 million, the majority of which federal, state and local governments requested in connection with our self-insurance programs. | ||||||||
Legal Proceedings | ||||||||
On January 19, 2010, several former Marriott employees (the "plaintiffs") filed a putative class action complaint against us and the Stock Plan (the "defendants"), alleging that certain equity awards of deferred bonus stock granted to the plaintiffs and other current and former employees for fiscal years 1963 through 1989 are subject to vesting requirements under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), that are in certain circumstances more rapid than those set forth in the awards. The plaintiffs seek damages, class attorneys' fees and interest, with no amounts specified. The action is proceeding in the United States District Court for the District of Maryland (Greenbelt Division) and Dennis Walter Bond Sr. and Michael P. Steigman are the current named plaintiffs. The parties completed limited discovery concerning the issues of statute of limitations and class certification. We opposed Plaintiffs' motion for class certification in October 2012, and we filed a motion for summary judgment on the issue of statute of limitations in December 2012. A hearing on both issues was held on June 7, 2013, after which we submitted a post-hearing supplemental brief and plaintiffs responded. On August 9, 2013, the court denied our motion for summary judgment on the issue of statute of limitations and deferred its ruling on class certification. We moved to amend the court's judgment on our motion for summary judgment in order to certify an interlocutory appeal, which was denied. We and the Stock Plan have denied all liability, and while we intend to vigorously defend against the claims being made by the plaintiffs, we can give you no assurance about the outcome of this lawsuit. We currently cannot estimate the range of any possible loss to the Company because an amount of damages is not claimed, there is uncertainty as to whether a class will be certified and if so as to the size of the class, and the possibility of our prevailing on our statute of limitations defense on appeal may significantly limit any claims for damages. | ||||||||
In March 2012, the Korea Fair Trade Commission ("KFTC") obtained documents from two of our managed hotels in Seoul, Korea in connection with an investigation which we believe is focused on pricing of hotel services within the Seoul region. Since then, the KFTC has conducted additional fact-gathering at those two hotels and also has collected information from another Marriott managed hotel located in Seoul. We understand that the KFTC also has sought documents from numerous other hotels in Seoul and other parts of Korea that we do not operate, own or franchise. We have not yet received a complaint or other legal process. We are cooperating with this investigation. |
Business_Segments
Business Segments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Business Segments | ' | |||||||||||||||
Business Segments | ||||||||||||||||
We are a diversified lodging company with operations in four business segments: | ||||||||||||||||
• | North American Full-Service Lodging, which includes the Marriott Hotels, Marriott Conference Centers, JW Marriott, Renaissance Hotels, Renaissance ClubSport, Gaylord Hotels and Autograph Collection properties located in the United States and Canada; | |||||||||||||||
• | North American Limited-Service Lodging, which includes the Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, and TownePlace Suites properties located in the United States and Canada, and, before its sale in the 2012 second quarter, our Marriott ExecuStay corporate housing business; | |||||||||||||||
• | International Lodging, which includes the Marriott Hotels, JW Marriott, Renaissance Hotels, Autograph Collection, Courtyard, AC Hotels by Marriott, Fairfield Inn & Suites, Residence Inn, and Marriott Executive Apartments properties located outside the United States and Canada; and | |||||||||||||||
• | Luxury Lodging, which includes The Ritz-Carlton, Bulgari Hotels & Resorts, and EDITION properties worldwide (together with residential properties associated with some of The Ritz-Carlton hotels). | |||||||||||||||
We evaluate the performance of our segments based largely on the results of the segment without allocating corporate expenses, income taxes, or indirect general, administrative, and other expenses. We allocate gains and losses, equity in earnings or losses from our joint ventures, and divisional general, administrative, and other expenses to each of our segments. “Other unallocated corporate” represents that portion of our revenues, general, administrative, and other expenses, equity in earnings or losses, and other gains or losses that we do not allocate to our segments. "Other unallocated corporate" includes license fees we receive from our credit card programs and license fees from MVW. | ||||||||||||||||
We aggregate the brands presented within our segments considering their similar economic characteristics, types of customers, distribution channels, the regulatory business environments and operations within each segment and our organizational and management reporting structure. | ||||||||||||||||
Revenues | ||||||||||||||||
($ in millions) | 92 Days Ended | 84 Days Ended | 276 Days Ended | 252 Days Ended | ||||||||||||
30-Sep-13 | 7-Sep-12 | 30-Sep-13 | 7-Sep-12 | |||||||||||||
North American Full-Service Segment | $ | 1,595 | $ | 1,332 | $ | 4,935 | $ | 4,006 | ||||||||
North American Limited-Service Segment | 695 | 612 | 1,970 | 1,735 | ||||||||||||
International Segment | 385 | 321 | 1,131 | 898 | ||||||||||||
Luxury Segment | 416 | 394 | 1,330 | 1,221 | ||||||||||||
Total segment revenues | 3,091 | 2,659 | 9,366 | 7,860 | ||||||||||||
Other unallocated corporate | 69 | 70 | 199 | 197 | ||||||||||||
$ | 3,160 | $ | 2,729 | $ | 9,565 | $ | 8,057 | |||||||||
Net Income (Loss) | ||||||||||||||||
($ in millions) | 92 Days Ended | 84 Days Ended | 276 Days Ended | 252 Days Ended | ||||||||||||
30-Sep-13 | 7-Sep-12 | 30-Sep-13 | 7-Sep-12 | |||||||||||||
North American Full-Service Segment | $ | 96 | $ | 76 | $ | 341 | $ | 275 | ||||||||
North American Limited-Service Segment | 131 | 157 | 372 | 347 | ||||||||||||
International Segment | 39 | 36 | 111 | 117 | ||||||||||||
Luxury Segment | 22 | 20 | 78 | 66 | ||||||||||||
Total segment financial results | 288 | 289 | 902 | 805 | ||||||||||||
Other unallocated corporate | (42 | ) | (41 | ) | (140 | ) | (141 | ) | ||||||||
Interest expense and interest income | (23 | ) | (26 | ) | (75 | ) | (86 | ) | ||||||||
Income taxes | (63 | ) | (79 | ) | (212 | ) | (188 | ) | ||||||||
$ | 160 | $ | 143 | $ | 475 | $ | 390 | |||||||||
Equity in Losses of Equity Method Investees | ||||||||||||||||
($ in millions) | 92 Days Ended | 84 Days Ended | 276 Days Ended | 252 Days Ended | ||||||||||||
30-Sep-13 | 7-Sep-12 | 30-Sep-13 | 7-Sep-12 | |||||||||||||
North American Full-Service Segment | $ | 1 | $ | — | $ | 3 | $ | 1 | ||||||||
North American Limited-Service Segment | — | — | 2 | 1 | ||||||||||||
International Segment | (1 | ) | — | (2 | ) | 2 | ||||||||||
Luxury Segment | — | — | (3 | ) | (11 | ) | ||||||||||
Total segment equity in losses | — | — | — | (7 | ) | |||||||||||
Other unallocated corporate | — | (1 | ) | (2 | ) | (3 | ) | |||||||||
$ | — | $ | (1 | ) | $ | (2 | ) | $ | (10 | ) | ||||||
Assets | ||||||||||||||||
At Period End | ||||||||||||||||
($ in millions) | September 30, | December 28, | ||||||||||||||
2013 | 2012 | |||||||||||||||
North American Full-Service Segment | $ | 1,546 | $ | 1,517 | ||||||||||||
North American Limited-Service Segment | 480 | 492 | ||||||||||||||
International Segment | 1,140 | 1,056 | ||||||||||||||
Luxury Segment | 1,321 | 1,174 | ||||||||||||||
Total segment assets | 4,487 | 4,239 | ||||||||||||||
Other unallocated corporate | 1,993 | 2,103 | ||||||||||||||
$ | 6,480 | $ | 6,342 | |||||||||||||
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 9 Months Ended | |
Sep. 30, 2013 | ||
Acquisitions and Dispositions [Abstract] | ' | |
Acquisitions and Dispositions | ' | |
Acquisitions and Dispositions | ||
2013 Completed Acquisitions | ||
In the 2013 third quarter, we paid a cash deposit of $5 million toward the acquisition of a managed property we plan to renovate. After the 2013 third quarter, we acquired that property for an additional $110 million in cash. | ||
2013 Planned Dispositions | ||
On July 30, 2013, we entered into a non-binding letter of intent ("LOI") to sell the London, Miami and New York EDITION-branded hotels for approximately $800 million. If the transaction goes forward, we expect the sale of the London EDITION to occur in the 2013 fourth quarter and the sale of the Miami EDITION and New York EDITION to occur after construction is complete, with the company retaining long-term management agreements for each hotel. The London EDITION opened on September 12, 2013, and we subsequently reclassified the related $232 million in Luxury segment assets ($225 million in property and equipment and $7 million in current assets) to the "Assets held for sale" caption and $9 million in Luxury segment liabilities to liabilities held for sale within the "Other current liabilities" caption of the Balance Sheet as of the end of the 2013 third quarter. We did not recognize a gain or loss in the 2013 third quarter as a result of this reclassification. We did not reclassify the Miami EDITION or the New York EDITION assets and liabilities as held for sale because the hotels are under construction and not available for immediate sale in their present condition. |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Variable Interest Entities | ' |
Variable Interest Entities | |
Under the applicable accounting guidance for the consolidation of variable interest entities, we analyze our variable interests, including loans, guarantees, and equity investments, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analysis to determine if we must consolidate a variable interest entity as its primary beneficiary. | |
In the 2013 second quarter, we purchased a $65 million mandatorily redeemable preferred equity ownership interest in an entity that owns three hotels, which we also manage. Please see Footnote No. 5, "Fair Value of Financial Instruments" for further information on the purchase and Footnote No. 11, "Contingencies" for information on the commitment we entered into as part of this transaction. Based on qualitative and quantitative analyses, we concluded that the entity in which we invested is a variable interest entity because it is capitalized primarily with debt. We did not consolidate the entity because we do not have the power to direct the activities that most significantly impact the entity's economic performance. Inclusive of our contingent future funding commitment, our maximum exposure to loss at the end of the 2013 third quarter is $78 million. | |
In conjunction with the transaction with CTF that we describe more fully in our Annual Report on Form 10-K for 2007 in Footnote No. 8, “Acquisitions and Dispositions,” under the caption “2005 Acquisitions,” we manage hotels on behalf of tenant entities that are 100 percent owned by CTF, which lease the hotels from third-party owners. Due to certain provisions in the management agreements, we account for these contracts as operating leases. At September 30, 2013, we managed four hotels on behalf of three tenant entities. The entities have minimal equity and minimal assets, consisting of hotel working capital and furniture, fixtures, and equipment. As part of the 2005 transaction, CTF placed money in a trust account to cover cash flow shortfalls and to meet rent payments. In turn, we released CTF from its guarantees fully for two of these properties and partially for the other two properties. The trust account was fully depleted prior to year-end 2011. The tenant entities are variable interest entities because the holder of the equity investment at risk, CTF, lacks the ability through voting rights to make key decisions about the entities’ activities that have a significant effect on the success of the entities. We do not consolidate the entities because we do not have the power to direct the activities that most significantly impact the entities' economic performance. We are liable for rent payments (totaling $6 million) for two of the four hotels if there are cash flow shortfalls, and these two hotels have lease terms of less than one year. In addition, as of the end of the 2013 third quarter we are liable for rent payments of up to an aggregate cap of $6 million for the two other hotels if there are cash flow shortfalls. Our maximum exposure to loss is limited to the rent payments and certain other tenant obligations under the lease, for which we are secondarily liable. |
Policies
Policies | 9 Months Ended | ||
Sep. 30, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Fiscal Period | ' | ||
Beginning with our 2013 fiscal year, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 fiscal year began on December 29, 2012 (the day after the end of the 2012 fiscal year) and will end on December 31, 2013, and our 2013 quarters include the three month periods ended March 31, June 30, September 30, and December 31, except that the period ended March 31, 2013 also included December 29, 2012 through December 31, 2012. Our future fiscal years will begin on January 1 and end on December 31. Historically, our fiscal year was a 52-53 week fiscal year that ended on the Friday nearest to December 31, and our quarterly reporting cycle included twelve week periods for the first, second, and third quarters and a sixteen week period (or in some cases a seventeen week period) for the fourth quarter. We have not restated and do not plan to restate historical results. | |||
The table below shows the reporting periods as we refer to them in this report, their date ranges, and the number of days in each: | |||
Reporting Period | Date Range | Number of Days | |
2013 third quarter | July 1, 2013 - September 30, 2013 | 92 | |
2012 third quarter | June 16, 2012 - September 7, 2012 | 84 | |
2013 first three quarters | December 29, 2012 - September 30, 2013 | 276 | |
2012 first three quarters | December 31, 2011 - September 7, 2012 | 252 | |
2013 fiscal year | December 29, 2012 - December 31, 2013 | 368 | |
2012 fiscal year | December 31, 2011 - December 28, 2012 | 364 | |
As a result of the change in our calendar, our 2013 third quarter had 8 more days of activity than our 2012 third quarter, and our 2013 first three quarters had 24 more days of activity than our 2012 first three quarters. Compared to the corresponding periods in 2012, our 2013 full fiscal year will have 4 more days and our 2013 fourth quarter will have 20 fewer days. | |||
New Accounting Pronouncements | ' | ||
New Accounting Standards | |||
Accounting Standards Update No. 2013-02 - “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU No. 2013-02”) | |||
ASU No. 2013-02, which we adopted in our 2013 first quarter, amends existing guidance by requiring disclosure of the changes in the components of accumulated other comprehensive income for the current period and additional information about items reclassified out of accumulated other comprehensive income. Our adoption of this update required additional disclosures but did not have a material impact on our Financial Statements. Please see Footnote No. 10, "Comprehensive Income and Capital Structure" for those additional disclosures. | |||
Earnings Per Share Dilutive Securities | ' | ||
We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We determine dilution based on earnings. | |||
Guarantees | ' | ||
We measure and record our liability for the fair value of a guarantee on a nonrecurring basis, that is when we issue or modify a guarantee, using Level 3 internally developed inputs. We generally base our calculation of the estimated fair value of a guarantee on the income approach or the market approach, depending on the type of guarantee. For the income approach, we use internally developed discounted cash flow and Monte Carlo simulation models that include the following assumptions, among others: projections of revenues and expenses and related cash flows based on assumed growth rates and demand trends; historical volatility of projected performance; the guaranteed obligations; and applicable discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. For the market approach, we use internal analyses based primarily on market comparable data and our assumptions about market capitalization rates, credit spreads, growth rates, and inflation. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||
Schedule of Reporting Period Information | ' | ||
The table below shows the reporting periods as we refer to them in this report, their date ranges, and the number of days in each: | |||
Reporting Period | Date Range | Number of Days | |
2013 third quarter | July 1, 2013 - September 30, 2013 | 92 | |
2012 third quarter | June 16, 2012 - September 7, 2012 | 84 | |
2013 first three quarters | December 29, 2012 - September 30, 2013 | 276 | |
2012 first three quarters | December 31, 2011 - September 7, 2012 | 252 | |
2013 fiscal year | December 29, 2012 - December 31, 2013 | 368 | |
2012 fiscal year | December 31, 2011 - December 28, 2012 | 364 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||
Assumptions for Stock Options and SARs | ' | ||
We used the following assumptions to determine the fair value of the SARs and stock options we granted during the 2013 first three quarters: | |||
Expected volatility | 30 - 31% | ||
Dividend yield | 1.17 | % | |
Risk-free rate | 1.8 - 1.9% | ||
Expected term (in years) | 10-Aug | ||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities | ' | |||||||||||||||
We show the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table: | ||||||||||||||||
At September 30, 2013 | At December 28, 2012 | |||||||||||||||
($ in millions) | Carrying | Fair Value | Carrying | Fair Value | ||||||||||||
Amount | Amount | |||||||||||||||
Cost method investments | $ | 19 | $ | 24 | $ | 21 | $ | 23 | ||||||||
Senior, mezzanine, and other loans | 137 | 138 | 180 | 172 | ||||||||||||
Marketable securities and other debt securities | 106 | 106 | 56 | 56 | ||||||||||||
Total long-term financial assets | $ | 262 | $ | 268 | $ | 257 | $ | 251 | ||||||||
Senior Notes | $ | (2,184 | ) | $ | (2,290 | ) | $ | (1,833 | ) | $ | (2,008 | ) | ||||
Commercial paper | (790 | ) | (790 | ) | (501 | ) | (501 | ) | ||||||||
Other long-term debt | (125 | ) | (131 | ) | (130 | ) | (139 | ) | ||||||||
Other long-term liabilities | (54 | ) | (54 | ) | (69 | ) | (69 | ) | ||||||||
Total long-term financial liabilities | $ | (3,153 | ) | $ | (3,265 | ) | $ | (2,533 | ) | $ | (2,717 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share | ' | |||||||||||||||
The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share: | ||||||||||||||||
92 Days Ended | 84 Days Ended | 276 Days Ended | 252 Days Ended | |||||||||||||
30-Sep-13 | 7-Sep-12 | 30-Sep-13 | 7-Sep-12 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
Computation of Basic Earnings Per Share | ||||||||||||||||
Net income | $ | 160 | $ | 143 | $ | 475 | $ | 390 | ||||||||
Weighted average shares outstanding | 301.9 | 319.4 | 306.8 | 327 | ||||||||||||
Basic earnings per share | $ | 0.53 | $ | 0.45 | $ | 1.55 | $ | 1.19 | ||||||||
Computation of Diluted Earnings Per Share | ||||||||||||||||
Net income | $ | 160 | $ | 143 | $ | 475 | $ | 390 | ||||||||
Weighted average shares outstanding | 301.9 | 319.4 | 306.8 | 327 | ||||||||||||
Effect of dilutive securities | ||||||||||||||||
Employee stock option and SARs plans | 3.8 | 6 | 4.1 | 6.5 | ||||||||||||
Deferred stock incentive plans | 0.8 | 0.8 | 0.8 | 0.9 | ||||||||||||
Restricted stock units | 3 | 3.1 | 3.1 | 3.1 | ||||||||||||
Shares for diluted earnings per share | 309.5 | 329.3 | 314.8 | 337.5 | ||||||||||||
Diluted earnings per share | $ | 0.52 | $ | 0.44 | $ | 1.51 | $ | 1.16 | ||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Composition of our Property and Equipment Balances | ' | |||||||
The following table shows the composition of our property and equipment balances at the end of the 2013 third quarter and year-end 2012: | ||||||||
At Period End | ||||||||
($ in millions) | September 30, | December 28, | ||||||
2013 | 2012 | |||||||
Land | $ | 550 | $ | 590 | ||||
Buildings and leasehold improvements | 731 | 703 | ||||||
Furniture and equipment | 853 | 854 | ||||||
Construction in progress | 327 | 383 | ||||||
2,461 | 2,530 | |||||||
Accumulated depreciation | (972 | ) | (991 | ) | ||||
$ | 1,489 | $ | 1,539 | |||||
The following table shows the composition of these property and equipment balances that we recorded as capital leases: | ||||||||
At Period End | ||||||||
($ in millions) | September 30, | December 28, | ||||||
2013 | 2012 | |||||||
Land | $ | 31 | $ | 30 | ||||
Buildings and leasehold improvements | 150 | 143 | ||||||
Furniture and equipment | 42 | 38 | ||||||
Construction in progress | 2 | 4 | ||||||
225 | 215 | |||||||
Accumulated depreciation | (89 | ) | (82 | ) | ||||
$ | 136 | $ | 133 | |||||
Notes_Receivable_Tables
Notes Receivable (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Composition of our Notes Receivable Balances (Net of Reserves and Unamortized Discounts) | ' | |||||||
The following table shows the composition of our notes receivable balances (net of reserves and unamortized discounts) at the end of the 2013 third quarter and year-end 2012: | ||||||||
At Period End | ||||||||
($ in millions) | September 30, | December 28, | ||||||
2013 | 2012 | |||||||
Senior, mezzanine, and other loans | $ | 189 | $ | 242 | ||||
Less current portion | (52 | ) | (62 | ) | ||||
$ | 137 | $ | 180 | |||||
Notes Receivable Principal Payments (Net of Reserves and Unamortized Discounts) and Interest Rates | ' | |||||||
The following table shows the expected future principal payments (net of reserves and unamortized discounts) as well as interest rates for our notes receivable as of the end of the 2013 third quarter: | ||||||||
Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates ($ in millions) | Amount | |||||||
2013 | $ | 23 | ||||||
2014 | 38 | |||||||
2015 | 75 | |||||||
2016 | 4 | |||||||
2017 | 2 | |||||||
Thereafter | 47 | |||||||
Balance at September 30, 2013 | $ | 189 | ||||||
Weighted average interest rate at September 30, 2013 | 4.7 | % | ||||||
Range of stated interest rates at September 30, 2013 | 0 to 8.0% | |||||||
Notes Receivable Unamortized Discounts | ' | |||||||
The following table shows the unamortized discounts for our notes receivable at the end of the 2013 third quarter and year-end 2012: | ||||||||
Notes Receivable Unamortized Discounts ($ in millions) | Total | |||||||
Balance at year-end 2012 | $ | 11 | ||||||
Balance at September 30, 2013 | $ | 12 | ||||||
Notes Receivable Reserves | ' | |||||||
The following table summarizes the activity related to our “Senior, mezzanine, and other loans” notes receivable reserve for the 2013 first three quarters: | ||||||||
($ in millions) | Notes Receivable | |||||||
Reserve | ||||||||
Balance at year-end 2012 | $ | 79 | ||||||
Transfers and other | 13 | |||||||
Balance at September 30, 2013 | $ | 92 | ||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
We provide detail on our long-term debt balances in the following table as of the end of the 2013 third quarter and year-end 2012: | ||||||||
At Period End | ||||||||
($ in millions) | September 30, | December 28, | ||||||
2013 | 2012 | |||||||
Senior Notes: | ||||||||
Series G, interest rate of 5.810%, face amount of $316, maturing November 10, 2015 (effective interest rate of 6.68%)(1) | $ | 311 | $ | 309 | ||||
Series H, interest rate of 6.200%, face amount of $289, maturing June 15, 2016 (effective interest rate of 6.37%)(1) | 289 | 289 | ||||||
Series I, interest rate of 6.375%, face amount of $293, maturing June 15, 2017 (effective interest rate of 6.52%)(1) | 292 | 292 | ||||||
Series J, matured February 15, 2013 | — | 400 | ||||||
Series K, interest rate of 3.000%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.45%)(1) | 595 | 594 | ||||||
Series L, interest rate of 3.250%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.35%)(1) | 349 | 349 | ||||||
Series M, interest rate of 3.375%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.60%)(1) | 348 | — | ||||||
Commercial paper, average interest rate of 0.33% at September 30, 2013 | 790 | 501 | ||||||
$2,000 Credit Facility | — | 15 | ||||||
Other | 182 | 186 | ||||||
3,156 | 2,935 | |||||||
Less current portion | (52 | ) | (407 | ) | ||||
$ | 3,104 | $ | 2,528 | |||||
(1) | Face amount and effective interest rate are as of September 30, 2013. | |||||||
Debt Principal Payments (Net of Unamortized Discounts) | ' | |||||||
We show future principal payments for our debt as of the end of the 2013 third quarter in the following table: | ||||||||
Debt Principal Payments ($ in millions) | Amount | |||||||
2013 | $ | 2 | ||||||
2014 | 52 | |||||||
2015 | 318 | |||||||
2016 | 297 | |||||||
2017 | 301 | |||||||
Thereafter | 2,186 | |||||||
Balance at September 30, 2013 | $ | 3,156 | ||||||
Comprehensive_Income_and_Capit1
Comprehensive Income and Capital Structure (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) Activity | ' | ||||||||||||||||||||||||||
The following table details the accumulated other comprehensive income (loss) activity for the 2013 first three quarters: | |||||||||||||||||||||||||||
($ in millions) | Foreign Currency Translation Adjustments | Other Derivative Instrument Adjustments | Unrealized Gains on Available-For-Sale Securities | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
Balance at year-end 2012 | $ | (32 | ) | $ | (19 | ) | $ | 7 | $ | (44 | ) | ||||||||||||||||
Other comprehensive (loss) income before reclassifications (1) | (2 | ) | — | 4 | 2 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (1 | ) | (6 | ) | (7 | ) | ||||||||||||||||||||
Net other comprehensive loss | (2 | ) | (1 | ) | (2 | ) | (5 | ) | |||||||||||||||||||
Balance at September 30, 2013 | $ | (34 | ) | $ | (20 | ) | $ | 5 | $ | (49 | ) | ||||||||||||||||
(1) | We present the portions of other comprehensive income (loss) before reclassifications for the 2013 first three quarters that relate to unrealized gains on available-for-sale securities net of $3 million of deferred taxes. | ||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||||
The following table details the effect on net income of significant amounts reclassified out of accumulated other comprehensive loss for the 2013 first three quarters: | |||||||||||||||||||||||||||
($ in millions) | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss Components | 276 Days Ended | Income Statement Line Item Affected | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||
Other derivative instrument adjustments | |||||||||||||||||||||||||||
Other, net | $ | 1 | Net income | ||||||||||||||||||||||||
Unrealized gains on available-for-sale securities | |||||||||||||||||||||||||||
Sale of an available-for-sale security | $ | 10 | Gains and other income | ||||||||||||||||||||||||
10 | Income before income taxes | ||||||||||||||||||||||||||
(4 | ) | Provision for income taxes | |||||||||||||||||||||||||
$ | 6 | Net income | |||||||||||||||||||||||||
Changes in Shareholders' Deficit | ' | ||||||||||||||||||||||||||
The following table details the changes in common shares outstanding and shareholders’ deficit for the 2013 first three quarters: | |||||||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||||||
Common | Total | Class A | Additional | Retained | Treasury Stock, | Accumulated | |||||||||||||||||||||
Shares | Common | Paid-in- | Earnings | at Cost | Other | ||||||||||||||||||||||
Outstanding | Stock | Capital | Comprehensive | ||||||||||||||||||||||||
Loss | |||||||||||||||||||||||||||
310.9 | Balance at year-end 2012 | $ | (1,285 | ) | $ | 5 | $ | 2,585 | $ | 3,509 | $ | (7,340 | ) | $ | (44 | ) | |||||||||||
— | Net income | 475 | — | — | 475 | — | — | ||||||||||||||||||||
— | Other comprehensive loss | (5 | ) | — | — | — | — | (5 | ) | ||||||||||||||||||
— | Cash dividends ($0.4700 per share) | (144 | ) | — | — | (144 | ) | — | — | ||||||||||||||||||
5.1 | Employee stock plan issuance | 179 | — | 85 | (77 | ) | 171 | — | |||||||||||||||||||
(15.6 | ) | Purchase of treasury stock | (629 | ) | — | — | — | (629 | ) | — | |||||||||||||||||
300.4 | Balance at September 30, 2013 | $ | (1,409 | ) | $ | 5 | $ | 2,670 | $ | 3,763 | $ | (7,798 | ) | $ | (49 | ) | |||||||||||
Contingencies_Tables
Contingencies (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings | ' | |||||||
We show the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for guarantees for which we are the primary obligor at September 30, 2013 in the following table: | ||||||||
($ in millions) | Maximum Potential | Liability for Guarantees | ||||||
Guarantee Type | Amount of Future Fundings | |||||||
Debt service | $ | 76 | $ | 6 | ||||
Operating profit | 105 | 44 | ||||||
Other | 16 | 1 | ||||||
Total guarantees where we are the primary obligor | $ | 197 | $ | 51 | ||||
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Revenues | ' | |||||||||||||||
Revenues | ||||||||||||||||
($ in millions) | 92 Days Ended | 84 Days Ended | 276 Days Ended | 252 Days Ended | ||||||||||||
30-Sep-13 | 7-Sep-12 | 30-Sep-13 | 7-Sep-12 | |||||||||||||
North American Full-Service Segment | $ | 1,595 | $ | 1,332 | $ | 4,935 | $ | 4,006 | ||||||||
North American Limited-Service Segment | 695 | 612 | 1,970 | 1,735 | ||||||||||||
International Segment | 385 | 321 | 1,131 | 898 | ||||||||||||
Luxury Segment | 416 | 394 | 1,330 | 1,221 | ||||||||||||
Total segment revenues | 3,091 | 2,659 | 9,366 | 7,860 | ||||||||||||
Other unallocated corporate | 69 | 70 | 199 | 197 | ||||||||||||
$ | 3,160 | $ | 2,729 | $ | 9,565 | $ | 8,057 | |||||||||
Net Income (Loss) | ' | |||||||||||||||
Net Income (Loss) | ||||||||||||||||
($ in millions) | 92 Days Ended | 84 Days Ended | 276 Days Ended | 252 Days Ended | ||||||||||||
30-Sep-13 | 7-Sep-12 | 30-Sep-13 | 7-Sep-12 | |||||||||||||
North American Full-Service Segment | $ | 96 | $ | 76 | $ | 341 | $ | 275 | ||||||||
North American Limited-Service Segment | 131 | 157 | 372 | 347 | ||||||||||||
International Segment | 39 | 36 | 111 | 117 | ||||||||||||
Luxury Segment | 22 | 20 | 78 | 66 | ||||||||||||
Total segment financial results | 288 | 289 | 902 | 805 | ||||||||||||
Other unallocated corporate | (42 | ) | (41 | ) | (140 | ) | (141 | ) | ||||||||
Interest expense and interest income | (23 | ) | (26 | ) | (75 | ) | (86 | ) | ||||||||
Income taxes | (63 | ) | (79 | ) | (212 | ) | (188 | ) | ||||||||
$ | 160 | $ | 143 | $ | 475 | $ | 390 | |||||||||
Equity in Losses of Equity Method Investees | ' | |||||||||||||||
Equity in Losses of Equity Method Investees | ||||||||||||||||
($ in millions) | 92 Days Ended | 84 Days Ended | 276 Days Ended | 252 Days Ended | ||||||||||||
30-Sep-13 | 7-Sep-12 | 30-Sep-13 | 7-Sep-12 | |||||||||||||
North American Full-Service Segment | $ | 1 | $ | — | $ | 3 | $ | 1 | ||||||||
North American Limited-Service Segment | — | — | 2 | 1 | ||||||||||||
International Segment | (1 | ) | — | (2 | ) | 2 | ||||||||||
Luxury Segment | — | — | (3 | ) | (11 | ) | ||||||||||
Total segment equity in losses | — | — | — | (7 | ) | |||||||||||
Other unallocated corporate | — | (1 | ) | (2 | ) | (3 | ) | |||||||||
$ | — | $ | (1 | ) | $ | (2 | ) | $ | (10 | ) | ||||||
Assets | ' | |||||||||||||||
Assets | ||||||||||||||||
At Period End | ||||||||||||||||
($ in millions) | September 30, | December 28, | ||||||||||||||
2013 | 2012 | |||||||||||||||
North American Full-Service Segment | $ | 1,546 | $ | 1,517 | ||||||||||||
North American Limited-Service Segment | 480 | 492 | ||||||||||||||
International Segment | 1,140 | 1,056 | ||||||||||||||
Luxury Segment | 1,321 | 1,174 | ||||||||||||||
Total segment assets | 4,487 | 4,239 | ||||||||||||||
Other unallocated corporate | 1,993 | 2,103 | ||||||||||||||
$ | 6,480 | $ | 6,342 | |||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 4 Months Ended | 12 Months Ended | 4 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Sep. 07, 2012 | Jun. 15, 2012 | Mar. 23, 2012 | Sep. 07, 2012 | Sep. 30, 2013 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
Lower Limit | Lower Limit | Upper Limit | Upper Limit | Scenario, Forecast | Scenario, Forecast | ||||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duration of fiscal period | '92 days | '84 days | '84 days | '84 days | '252 days | '276 days | '364 days | '112 days | '364 days | '119 days | '371 days | ' | '368 days |
Change in length of period from corresponding year-earlier period (increase in all periods except for fourth quarter) | '8 days | ' | ' | ' | ' | '24 days | ' | ' | ' | ' | ' | '20 days | '4 days |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
issue | |
Income Taxes [Line Items] | ' |
Number of unresolved issues related to IRS income tax examination for 2010 | 1 |
Unrecognized tax benefits | $29 |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | 13 |
Income tax expense (benefit) recognized due to retroactive provisions in American Taxpayer Relief Act of 2012 | -3 |
International Issue Relating to Financing Activity | ' |
Income Taxes [Line Items] | ' |
Unrecognized tax benefits | $5 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 | Dec. 28, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Share-based compensation expense | $22 | $19 | $57 | $69 | ' |
Deferred compensation costs related to unvested awards | $137 | ' | ' | $137 | $122 |
Shares reserved under the Stock Plan | 34 | ' | ' | 34 | ' |
RSUs and Service and Performance RSUs | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock awards, weighted average grant-date fair value (in USD per share) | ' | ' | ' | $37 | ' |
Restricted Stock Units | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock awards, granted to certain officers, key employees and, for SARS, directors (in shares) | ' | ' | ' | 2.5 | ' |
Stock awards, vesting period | ' | ' | ' | '4 years | ' |
Stock awards, percentage of award vesting and becoming exercisable annually | ' | ' | ' | 25.00% | ' |
Service and Performance RSUs | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock awards, granted to certain officers, key employees and, for SARS, directors (in shares) | ' | ' | ' | 0.2 | ' |
Stock Option Program and Stock Appreciation Right Program | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock awards, vesting period | ' | ' | ' | '4 years | ' |
Stock awards, expiration | ' | ' | ' | '10 years | ' |
Shares reserved under the Stock Plan | 13 | ' | ' | 13 | ' |
Stock Appreciation Rights | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock awards, granted to certain officers, key employees and, for SARS, directors (in shares) | ' | ' | ' | 0.7 | ' |
Stock awards, percentage of award vesting and becoming exercisable annually | ' | ' | ' | 25.00% | ' |
Stock awards, weighted average grant-date fair value (in USD per share) | ' | ' | ' | $13 | ' |
Stock awards, weighted average exercise price (in USD per share) | ' | ' | ' | $39 | ' |
Employee Stock Option | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock awards, percentage of award vesting and becoming exercisable annually | ' | ' | ' | 25.00% | ' |
Stock awards, options granted to certain officers, key employees, and directors (in shares) | ' | ' | ' | 0.1 | ' |
Stock awards, options, weighted average grant-date fair value (in USD per share) | ' | ' | ' | $13 | ' |
Stock awards, options, weighted average exercise price (in USD per share) | ' | ' | ' | $39 | ' |
Assumptions_for_SARs_and_Stock
Assumptions for SARs and Stock Options Granted (Detail) (Stock Option Program and Stock Appreciation Right Program) | 9 Months Ended |
Sep. 30, 2013 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' |
Expected volatility, minimum | 30.00% |
Expected volatility, maximum | 31.00% |
Dividend yield | 1.17% |
Risk-free rate, minimum | 1.80% |
Risk-free rate, maximum | 1.90% |
Lower Limit | ' |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' |
Expected term (in years) | '8 years |
Upper Limit | ' |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' |
Expected term (in years) | '10 years |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 07, 2012 |
Fair Value, Inputs, Level 1 | Commercial Paper | Mandatorily Redeemable Preferred Equity Ownership Interest | Mandatorily Redeemable Preferred Equity Ownership Interest | Single Investment Other Than Temporarily Impaired | ||
Debt Securities | Debt Securities | Fair Value, Inputs, Level 3 | ||||
hotel | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value of one of our cost method investments | ' | ' | ' | ' | ' | $12 |
Other than temporary impairment of one of our cost method investments | ' | ' | ' | ' | ' | 7 |
Carrying value of our marketable securities | ' | 38 | ' | ' | ' | ' |
Held-to-maturity securities | ' | ' | ' | 65 | ' | ' |
Number of hotels | ' | ' | ' | 3 | ' | ' |
Held-to-maturity securities, amortized cost basis | ' | ' | ' | ' | 68 | ' |
Held-to-maturity securities, fair value | ' | ' | ' | ' | 68 | ' |
Proceeds from sale of investment | 22 | ' | ' | ' | ' | ' |
Amortized cost basis | 14 | ' | ' | ' | ' | ' |
Realized gain from sale of investment | $8 | ' | ' | ' | ' | ' |
Commercial paper, maturity term (generally 30 days or less) | ' | ' | '30 days | ' | ' | ' |
Carrying_Values_and_Fair_Value
Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Senior, mezzanine, and other loans | $137 | $180 |
Other long-term liabilities | -913 | -898 |
Carrying Amount | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cost method investments | 19 | 21 |
Senior, mezzanine, and other loans | 137 | 180 |
Marketable securities and other debt securities | 106 | 56 |
Total long-term financial assets | 262 | 257 |
Senior Notes | -2,184 | -1,833 |
Commercial paper | -790 | -501 |
Other long-term debt | -125 | -130 |
Other long-term liabilities | -54 | -69 |
Total long-term financial liabilities | -3,153 | -2,533 |
Fair Value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cost method investments | 24 | 23 |
Senior, mezzanine, and other loans | 138 | 172 |
Marketable securities and other debt securities | 106 | 56 |
Total long-term financial assets | 268 | 251 |
Senior Notes | -2,290 | -2,008 |
Commercial paper | -790 | -501 |
Other long-term debt | -131 | -139 |
Other long-term liabilities | -54 | -69 |
Total long-term financial liabilities | ($3,265) | ($2,717) |
Reconciliation_of_the_Earnings
Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 |
Computation of Basic Earnings Per Share | ' | ' | ' | ' |
Net income | $160 | $143 | $390 | $475 |
Weighted average shares outstanding | 301.9 | 319.4 | 327 | 306.8 |
Basic earnings per share (in USD per share) | $0.53 | $0.45 | $1.19 | $1.55 |
Computation of Diluted Earnings Per Share | ' | ' | ' | ' |
Net income | $160 | $143 | $390 | $475 |
Weighted average shares outstanding | 301.9 | 319.4 | 327 | 306.8 |
Effect of dilutive securities | ' | ' | ' | ' |
Shares for diluted earnings per share | 309.5 | 329.3 | 337.5 | 314.8 |
Diluted earnings per share (in USD per share) | $0.52 | $0.44 | $1.16 | $1.51 |
Employee stock option and SARs plans | ' | ' | ' | ' |
Effect of dilutive securities | ' | ' | ' | ' |
Effect of dilutive securities | 3.8 | 6 | 6.5 | 4.1 |
Deferred stock incentive plans | ' | ' | ' | ' |
Effect of dilutive securities | ' | ' | ' | ' |
Effect of dilutive securities | 0.8 | 0.8 | 0.9 | 0.8 |
Restricted stock units | ' | ' | ' | ' |
Effect of dilutive securities | ' | ' | ' | ' |
Effect of dilutive securities | 3 | 3.1 | 3.1 | 3.1 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Stock Option Program and Stock Appreciation Right Program, AntiDilutive Due to Exercise Price Greater Than Market Price) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 |
Stock Option Program and Stock Appreciation Right Program | AntiDilutive Due to Exercise Price Greater Than Market Price | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Securities not included in the calculation of diluted earnings per share (in shares) | 0.4 | 1 | 1 | 0.4 |
Composition_of_our_Property_an
Composition of our Property and Equipment Balances (Detail) (USD $) | Sep. 30, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $2,461 | $2,530 |
Accumulated depreciation | -972 | -991 |
Property and equipment, net | 1,489 | 1,539 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 550 | 590 |
Buildings and leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 731 | 703 |
Furniture and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 853 | 854 |
Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 327 | 383 |
Capital Lease Obligations | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 225 | 215 |
Accumulated depreciation | -89 | -82 |
Property and equipment, net | 136 | 133 |
Capital Lease Obligations | Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 31 | 30 |
Capital Lease Obligations | Buildings and leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 150 | 143 |
Capital Lease Obligations | Furniture and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 42 | 38 |
Capital Lease Obligations | Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $2 | $4 |
Composition_of_our_Notes_Recei
Composition of our Notes Receivable Balances (Net of Reserves) (Detail) (USD $) | Sep. 30, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Senior, mezzanine, and other loans | $189 | $242 |
Current notes receivable | -52 | -62 |
Notes receivable, noncurrent | $137 | $180 |
Notes_Receivable_Principal_Pay
Notes Receivable Principal Payments (Net of Reserves and Unamortized Discounts) and Interest Rates (Detail) (USD $) | Sep. 30, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
2013 | $23 | ' |
2014 | 38 | ' |
2015 | 75 | ' |
2016 | 4 | ' |
2017 | 2 | ' |
Thereafter | 47 | ' |
Senior, mezzanine, and other loans | $189 | $242 |
Weighted average interest rate at September 30, 2013 | 4.70% | ' |
Range of stated interest rates at September 30, 2013, minimum | 0.00% | ' |
Range of stated interest rates at September 30, 2013, maximum | 8.00% | ' |
Notes_Receivable_Unamortized_D
Notes Receivable Unamortized Discounts (Detail) (USD $) | Sep. 30, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Notes receivable, unamortized discounts, balance | $12 | $11 |
Activity_Related_to_Senior_mez
Activity Related to "Senior, mezzanine, and other loans" Notes Receivable Reserve (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' |
Beginning balance | $79 |
Transfers and other | 13 |
Ending balance | $92 |
Notes_Receivable_Additional_In
Notes Receivable - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 | Dec. 28, 2012 | |
Receivables [Abstract] | ' | ' | ' | ' | ' |
Investment in impaired loans | $102,000,000 | ' | ' | $102,000,000 | $93,000,000 |
Notes receivable reserve representing an allowance for credit losses | 92,000,000 | ' | ' | 92,000,000 | 79,000,000 |
Investment in impaired loans with no related allowance for credit losses | 10,000,000 | ' | ' | 10,000,000 | 14,000,000 |
Average investment in impaired loans | 104,000,000 | 101,000,000 | 99,000,000 | 98,000,000 | ' |
Notes receivable, past due | $0 | ' | ' | $0 | ' |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 28, 2012 | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
$2,000 Credit Facility | $0 | ' | $15,000,000 | ||
Other | 182,000,000 | ' | 186,000,000 | ||
Long-term debt | 3,156,000,000 | ' | 2,935,000,000 | ||
Less current portion | -52,000,000 | ' | -407,000,000 | ||
Long-term debt, noncurrent | 3,104,000,000 | ' | 2,528,000,000 | ||
Line of credit facility, maximum borrowing capacity | 2,000,000,000 | 1,750,000,000 | ' | ||
Series G, Senior Notes 5.810% Due November 10, 2015 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 311,000,000 | [1] | ' | 309,000,000 | [1] |
Debt instrument, stated interest rate | 5.81% | ' | ' | ||
Senior Notes, face amount | 316,000,000 | ' | ' | ||
Senior Notes, effective interest rate | 6.68% | ' | ' | ||
Series H, Senior Notes 6.200% Due June 15, 2016 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 289,000,000 | [1] | ' | 289,000,000 | [1] |
Debt instrument, stated interest rate | 6.20% | ' | ' | ||
Senior Notes, face amount | 289,000,000 | ' | ' | ||
Senior Notes, effective interest rate | 6.37% | ' | ' | ||
Series I, Senior Notes 6.375% Due June 15, 2017 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 292,000,000 | [1] | ' | 292,000,000 | [1] |
Debt instrument, stated interest rate | 6.38% | ' | ' | ||
Senior Notes, face amount | 293,000,000 | ' | ' | ||
Senior Notes, effective interest rate | 6.52% | ' | ' | ||
Series J, Matured February 15, 2013 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 0 | ' | 400,000,000 | ||
Series K, Senior Notes 3.000% Due March 1, 2019 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 595,000,000 | [1] | ' | 594,000,000 | [1] |
Debt instrument, stated interest rate | 3.00% | ' | ' | ||
Senior Notes, face amount | 600,000,000 | ' | ' | ||
Senior Notes, effective interest rate | 4.45% | ' | ' | ||
Series L, Senior Notes 3.250% Due September 15, 2022 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 349,000,000 | [1] | ' | 349,000,000 | [1] |
Debt instrument, stated interest rate | 3.25% | ' | ' | ||
Senior Notes, face amount | 350,000,000 | ' | ' | ||
Senior Notes, effective interest rate | 3.35% | ' | ' | ||
Series M Senior Notes 3.375% Due October 15, 2020 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 348,000,000 | [1] | ' | 0 | [1] |
Debt instrument, stated interest rate | 3.38% | ' | ' | ||
Senior Notes, face amount | 350,000,000 | ' | ' | ||
Senior Notes, effective interest rate | 3.60% | ' | ' | ||
Commercial Paper | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Commercial paper, average interest rate of 0.33% at September 30, 2013 | $790,000,000 | ' | $501,000,000 | ||
Long-term debt, average interest rate | 0.33% | ' | ' | ||
[1] | Face amount and effective interest rate are as of September 30, 2013. |
Longterm_Debt_Additional_Infor
Long-term Debt - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | |||
Sep. 07, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | |
Series J, Matured February 15, 2013 | Series M Senior Notes 3.375% Due October 15, 2020 | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Payment made to retire debt at maturity | ' | ' | ' | $411,000,000 | ' |
Line of credit facility, maximum borrowing capacity | ' | 2,000,000,000 | 1,750,000,000 | ' | ' |
Senior Notes, face amount | ' | ' | ' | ' | 350,000,000 |
Debt instrument, stated interest rate | ' | ' | ' | ' | 3.38% |
Proceeds from debt, net of issuance costs | ' | ' | ' | ' | 345,000,000 |
Cash paid for interest, net of amounts capitalized | $62,000,000 | $58,000,000 | ' | ' | ' |
Debt_Principal_Payments_Net_of
Debt Principal Payments (Net of Unamortized Discounts) (Detail) (USD $) | Sep. 30, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2013 | $2 | ' |
2014 | 52 | ' |
2015 | 318 | ' |
2016 | 297 | ' |
2017 | 301 | ' |
Thereafter | 2,186 | ' |
Long-term debt | $3,156 | $2,935 |
Comprehensive_Income_and_Capit2
Comprehensive Income and Capital Structure Accumulated Other Comprehensive Income Activity (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | |
Balance at year-end 2012 | ($44) | |
Other comprehensive (loss) income before reclassifications | 2 | [1] |
Amounts reclassified from accumulated other comprehensive loss | -7 | |
Net other comprehensive loss | -5 | |
Balance at September 30, 2013 | -49 | |
Other comprehensive income (loss), before reclassifications, unrealized gains on available-for-sale securities, deferred tax | 3 | |
Foreign Currency Translation Adjustments | ' | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | |
Balance at year-end 2012 | -32 | |
Other comprehensive (loss) income before reclassifications | -2 | [1] |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Net other comprehensive loss | -2 | |
Balance at September 30, 2013 | -34 | |
Other Derivative Instrument Adjustments | ' | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | |
Balance at year-end 2012 | -19 | |
Other comprehensive (loss) income before reclassifications | 0 | [1] |
Amounts reclassified from accumulated other comprehensive loss | -1 | |
Net other comprehensive loss | -1 | |
Balance at September 30, 2013 | -20 | |
Unrealized Gains on Available-For-Sale Securities | ' | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | |
Balance at year-end 2012 | 7 | |
Other comprehensive (loss) income before reclassifications | 4 | [1] |
Amounts reclassified from accumulated other comprehensive loss | -6 | |
Net other comprehensive loss | -2 | |
Balance at September 30, 2013 | $5 | |
[1] | We present the portions of other comprehensive income (loss) before reclassifications for the 2013 first three quarters that relate to unrealized gains on available-for-sale securities net of $3 million of deferred taxes. |
Reclassification_out_of_Accumu
Reclassification out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Gains and other income | $1 | $36 | $43 | $14 |
Income before income taxes | 223 | 222 | 578 | 687 |
Provision for income taxes | -63 | -79 | -188 | -212 |
NET INCOME | 160 | 143 | 390 | 475 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | Other derivative instrument adjustments | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
NET INCOME | ' | ' | ' | 1 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | Unrealized gains on available-for-sale securities | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Gains and other income | ' | ' | ' | 10 |
Income before income taxes | ' | ' | ' | 10 |
Provision for income taxes | ' | ' | ' | -4 |
NET INCOME | ' | ' | ' | $6 |
Changes_in_Shareholders_Defici
Changes in Shareholders' Deficit (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 28, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Class A Common Stock | Class A Common Stock | Additional Paid-in-Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Loss | |||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at year-end 2012 | ' | ' | ' | ($1,285) | $5 | $5 | $2,585 | $3,509 | ($7,340) | ($44) |
Balance at year-end 2012, shares | ' | ' | ' | 310.9 | ' | ' | ' | ' | ' | ' |
Net income | 160 | 143 | 390 | 475 | ' | ' | ' | 475 | ' | ' |
Other comprehensive loss | 5 | 4 | -1 | -5 | ' | ' | ' | ' | ' | -5 |
Cash dividends ($0.4700 per share) | ' | ' | ' | -144 | ' | ' | ' | -144 | ' | ' |
Employee stock plan issuance | ' | ' | ' | 179 | ' | ' | 85 | -77 | 171 | ' |
Employee stock plan issuance, shares | ' | ' | ' | 5.1 | ' | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | ' | ' | -629 | ' | ' | ' | ' | -629 | ' |
Purchase of treasury stock, shares | ' | ' | ' | -15.6 | ' | ' | ' | ' | ' | ' |
Balance at September 30, 2013 | ($1,409) | ' | ' | ($1,409) | $5 | $5 | $2,670 | $3,763 | ($7,798) | ($49) |
Balance at September 30, 2013, shares | 300.4 | ' | ' | 300.4 | ' | ' | ' | ' | ' | ' |
Cash dividends, per share | ' | ' | ' | $0.47 | ' | ' | ' | ' | ' | ' |
Contingencies_Guarantees_Detai
Contingencies - Guarantees (Details) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 30, 2011 | Dec. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 09, 2005 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Lease Obligations and Debt Securities Payable | Property Lease Guarantee | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Other Current Liabilities | Other Long Term Liabilities | |
USD ($) | ExecuStay | USD ($) | Debt service | Operating profit | Not Yet In Effect Condition | Not Yet In Effect Condition | Not Yet In Effect Condition | USD ($) | Sunrise Senior Living Inc | Sunrise Senior Living Inc | MVW Spin-off | MVW Spin-off | MVW Spin-off | MVW Spin-off | MVW Spin-off | MVW Spin-off | Property Lease Guarantee | Property Lease Guarantee | Property Lease Guarantee | Property Lease Guarantee | Property Lease Guarantee | Property Lease Guarantee | Property Lease Guarantee | Debt Securities Payable | Debt Securities Payable | Debt Securities Payable | Debt Securities Payable | Lease is Terminated by End of 2013 | Lease is Terminated After End of 2013 | Primary Obligor | Primary Obligor | ||
USD ($) | USD ($) | USD ($) | Debt service | Operating profit | Other guarantees | USD ($) | USD ($) | USD ($) | Expiration in 2013 | Expiration in 2014 | Expiration in 2020 | Expiration in 2022 | Expiration in 2022 | Sunrise Senior Living Inc | Sunrise Senior Living Inc | Sunrise Senior Living Inc | Renaissance Hotel Group N.V. | Renaissance Hotel Group N.V. | Renaissance Hotel Group N.V. | Accenture | USD ($) | Sunrise Senior Living Inc | CNL Retirement Properties Inc | Five Star Senior Living | Property Lease Guarantee | Property Lease Guarantee | USD ($) | USD ($) | |||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | SGD | USD ($) | USD ($) | Key Bank | USD ($) | EUR (€) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | ExecuStay | ExecuStay | ||||||||||||||
Letter of Credit | lease | USD ($) | USD ($) | ||||||||||||||||||||||||||||||
USD ($) | |||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding guarantees, minimum term | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding guarantees, maximum term | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability for guarantees | ' | ' | ' | $51 | $6 | $44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3 | $48 |
Maximum potential amount of future fundings | ' | ' | ' | 197 | 76 | 105 | 13 | 5 | 1 | 106 | ' | ' | 22 | 1 | 5 | 3 | 13 | 17 | 78 | ' | ' | ' | ' | ' | ' | 28 | 4 | 23 | 1 | 11 | 6 | ' | ' |
Guarantee obligations, carrying value | ' | 3 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash collateral in the event funding is required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of operating lease extension | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash collateralized for lease guarantee for period from 2014 until 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit provided by Sunrise, amount available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral for continuing lease obligation contingency, future minimum annual payments due from 2014 until 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional cash collateralized during the period for guarantee obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual rent payments, approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining rent payments, approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36 | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee obligations, cash collateralized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | € 4 | € 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingencies_Commitments_and_
Contingencies - Commitments and Letters of Credit (Detail) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 |
USD ($) | EUR (€) | USD ($) | Line of Credit Facility | Outside Effective Credit Facility | Real Estate Investment | Real Estate Investment | Real Estate Investment | Information Technology Hardware, Software, Accounting, Finance, and Maintenance Services | Renovation of Leased Hotel | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Commitments | Lodging Property | Full Service and Limited Service | Full Service and Limited Service | Limited Service | Limited Service | Debt Securities | Debt Securities | |
USD ($) | USD ($) | USD ($) | EUR (€) | Upper Limit | USD ($) | USD ($) | Group 4 | Group 4 | Group 4 | Group 4 | Group 4 | Group 4 | USD ($) | USD ($) | Equity Investment for Non Controlling Interest in Partnership Commitment | Equity Investment for Non Controlling Interest in Partnership Commitment | Equity Investment for Non Controlling Interest in Partnership Commitment | Equity Investment for Non Controlling Interest in Partnership Commitment | Mandatorily Redeemable Preferred Equity Ownership Interest | Mandatorily Redeemable Preferred Equity Ownership Interest | ||||
USD ($) | Entity | Entity | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | Upper Limit | USD ($) | Upper Limit | hotel | USD ($) | ||||||||||||
USD ($) | USD ($) | |||||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | $23 | ' | $10 |
Investment commitments expected to be funded by 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | 23 | ' | ' | ' |
Investment commitments expected to be funded in 2013 | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Investment commitments expected to be funded in 2014 | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | 13 | ' | ' | ' |
Investment commitments expected to be funded in 2015 | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 8 | ' | ' | ' |
Investment commitments not expected to be funded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34 | ' | 1 | ' | ' | ' | ' | ' |
Acquisition interests in joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest purchase contingency, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits in conjunction with contingent obligation to acquire the interest in joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 6 | 12 | 9 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage ownership interest acquired from joint venture partner | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of deposit used for contingent joint venture interest acquisition | 5 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years to acquire remaining interest | ' | ' | ' | ' | ' | '1 year | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments | ' | ' | ' | ' | ' | ' | ' | ' | 116 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2013 | ' | ' | ' | ' | ' | ' | ' | ' | 33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2014 | ' | ' | ' | ' | ' | 45 | 33 | ' | 53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2015 | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2016 | ' | ' | ' | ' | ' | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of hotels included in investment commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
Loan commitment, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' |
Loan commitment, amount funded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Loan commitment, amount expected to be funded in the remainder of 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Loan commitment, amount not expected to be funded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | 68 | 1 | 67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surety bonds issued | ' | ' | $121 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum_Potential_Amount_of_Fu
Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings (Detail) (Primary Obligor, USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | $197 |
Liability for Guarantees | 51 |
Debt service | ' |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | 76 |
Liability for Guarantees | 6 |
Operating profit | ' |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | 105 |
Liability for Guarantees | 44 |
Other | ' |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | 16 |
Liability for Guarantees | $1 |
Contingencies_Legal_Proceeding
Contingencies - Legal Proceedings (Details) (Pricing Investigation by Korea Fair Trade Commission) | Mar. 31, 2012 |
hotel | |
Pricing Investigation by Korea Fair Trade Commission | ' |
Loss Contingencies [Line Items] | ' |
Number of hotels included in pricing investigation, managed by Company | 2 |
Business_Segment_Additional_In
Business Segment - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
segment | |
Segment Reporting [Abstract] | ' |
Number of business segments | 4 |
Business_Segments_Revenues_Det
Business Segments - Revenues (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | $3,160 | $2,729 | $8,057 | $9,565 |
Total segment | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 3,091 | 2,659 | 7,860 | 9,366 |
Other unallocated corporate | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 69 | 70 | 197 | 199 |
North American Full-Service Segment | Total segment | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 1,595 | 1,332 | 4,006 | 4,935 |
North American Limited-Service Segment | Total segment | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 695 | 612 | 1,735 | 1,970 |
International Segment | Total segment | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | 385 | 321 | 898 | 1,131 |
Luxury Segment | Total segment | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Revenues | $416 | $394 | $1,221 | $1,330 |
Business_Segments_Net_Income_L
Business Segments - Net Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Interest expense and interest income | ($23) | ($26) | ($86) | ($75) |
Provision for income taxes | -63 | -79 | -188 | -212 |
Net income | 160 | 143 | 390 | 475 |
Total segment | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment financial results | 288 | 289 | 805 | 902 |
Other unallocated corporate | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment financial results | -42 | -41 | -141 | -140 |
North American Full-Service Segment | Total segment | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment financial results | 96 | 76 | 275 | 341 |
North American Limited-Service Segment | Total segment | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment financial results | 131 | 157 | 347 | 372 |
International Segment | Total segment | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment financial results | 39 | 36 | 117 | 111 |
Luxury Segment | Total segment | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment financial results | $22 | $20 | $66 | $78 |
Business_Segments_Equity_in_Lo
Business Segments - Equity in Losses of Equity Method Investees (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Equity in losses of equity method investees | $0 | ($1) | ($10) | ($2) |
Total segment | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Equity in losses of equity method investees | 0 | 0 | -7 | 0 |
Other unallocated corporate | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Equity in losses of equity method investees | 0 | -1 | -3 | -2 |
North American Full-Service Segment | Total segment | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Equity in losses of equity method investees | 1 | 0 | 1 | 3 |
North American Limited-Service Segment | Total segment | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Equity in losses of equity method investees | 0 | 0 | 1 | 2 |
International Segment | Total segment | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Equity in losses of equity method investees | -1 | 0 | 2 | -2 |
Luxury Segment | Total segment | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Equity in losses of equity method investees | $0 | $0 | ($11) | ($3) |
Business_Segments_Assets_Detai
Business Segments - Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Assets | $6,480 | $6,342 |
Total segment | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Assets | 4,487 | 4,239 |
Other unallocated corporate | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Assets | 1,993 | 2,103 |
North American Full-Service Segment | Total segment | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Assets | 1,546 | 1,517 |
North American Limited-Service Segment | Total segment | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Assets | 480 | 492 |
International Segment | Total segment | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Assets | 1,140 | 1,056 |
Luxury Segment | Total segment | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Assets | $1,321 | $1,174 |
Acquisitions_and_Dispositions_
Acquisitions and Dispositions - Acquisitions (Detail) (USD $) | 3 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Oct. 31, 2013 |
Subsequent Event | ||
Business Acquisition [Line Items] | ' | ' |
Acquisition, cash deposit | $5 | ' |
Acquisition, cash paid | ' | $110 |
Acquisitions_and_Dispositions_1
Acquisitions and Dispositions - Dispositions (Detail) (USD $) | Jul. 30, 2013 | Sep. 30, 2013 |
Luxury Segment | ||
London EDITION Hotel | ||
Long Lived Assets Held-for-sale [Line Items] | ' | ' |
Assets held-for-sale | $800,000,000 | ' |
Assets, reclassified | ' | 232,000,000 |
Assets, property, plant and equipment, reclassified | ' | 225,000,000 |
Assets, current assets, reclassified | ' | 7,000,000 |
Liabilities, reclassified | ' | 9,000,000 |
Gain (loss) recognized from reclassification to held-for-sale | ' | $0 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | ||||||
Sep. 30, 2013 | Dec. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
CTF Entity | CTF Entity | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Debt Securities | Debt Securities | Maximum | |
Entity | CTF Entity | CTF Entity | CTF Entity | Mandatorily Redeemable Preferred Equity Ownership Interest | Mandatorily Redeemable Preferred Equity Ownership Interest | CTF Entity | ||
hotel | Entity | Liability Exposure for Rent Payments | Partial Liability Exposure for Rent Payments | hotel | ||||
hotel | Secondarily Liable | Secondarily Liable | ||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Held-to-maturity securities | ' | ' | ' | ' | ' | $65,000,000 | ' | ' |
Number of hotels | ' | ' | ' | ' | ' | 3 | ' | ' |
Maximum exposure to loss | ' | ' | ' | ' | ' | ' | 78,000,000 | ' |
Percent of tenant entities owned by CTF | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Number of hotels managed | ' | ' | 4 | ' | ' | ' | ' | ' |
Number of tenant entities to whom hotel management services provided | ' | ' | 3 | ' | ' | ' | ' | ' |
Number of properties fully released from guarantees with CTF | 2 | ' | ' | ' | ' | ' | ' | ' |
Number of properties partially released from guarantees with CTF | 2 | ' | ' | ' | ' | ' | ' | ' |
CTF trust account | ' | 0 | ' | ' | ' | ' | ' | ' |
Number of hotels liable cash flow shortfalls | 2 | ' | ' | ' | ' | ' | ' | ' |
Operating leases, term | ' | ' | ' | ' | ' | ' | ' | '1 year |
Future lease payment | ' | ' | ' | $6,000,000 | $6,000,000 | ' | ' | ' |
Number of additional hotels liable cash flow shortfalls | 2 | ' | ' | ' | ' | ' | ' | ' |