Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 18, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
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 | ' | 292,765,045 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUES | ' | ' |
Base management fees | $155 | $153 |
Franchise fees | 163 | 151 |
Incentive management fees | 71 | 66 |
Owned, leased, and other revenue | 234 | 224 |
Cost reimbursements | 2,670 | 2,548 |
Revenues | 3,293 | 3,142 |
OPERATING COSTS AND EXPENSES | ' | ' |
Owned, leased, and other-direct | 185 | 179 |
Reimbursed costs | 2,670 | 2,548 |
Depreciation and amortization | 36 | 25 |
General, administrative, and other | 148 | 164 |
Costs and Expenses, Total | 3,039 | 2,916 |
OPERATING INCOME | 254 | 226 |
Gains and other income | 0 | 3 |
Interest expense | -30 | -31 |
Interest income | 5 | 3 |
Equity in earnings | 2 | 0 |
INCOME BEFORE INCOME TAXES | 231 | 201 |
Provision for income taxes | -59 | -65 |
NET INCOME | $172 | $136 |
EARNINGS PER SHARE-Basic | ' | ' |
Earnings per share (in USD per share) | $0.58 | $0.44 |
EARNINGS PER SHARE-Diluted | ' | ' |
Earnings per share (in USD per share) | $0.57 | $0.43 |
CASH DIVIDENDS DECLARED PER SHARE (in USD per share) | $0.17 | $0.13 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $172 | $136 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation adjustments | 0 | -13 |
Other derivative instrument adjustments, net of tax | 1 | 7 |
Unrealized gain on available-for-sale securities, net of tax | 1 | 4 |
Reclassification of losses, net of tax | 1 | 0 |
Total other comprehensive income (loss), net of tax | 3 | -2 |
Comprehensive income | $175 | $134 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and equivalents | $184 | $126 |
Accounts and notes receivable, net | 1,035 | 1,081 |
Current deferred taxes, net | 235 | 252 |
Prepaid expenses | 59 | 67 |
Other | 52 | 27 |
Assets held for sale | 0 | 350 |
Assets, Current, Total | 1,565 | 1,903 |
Property and equipment | 1,569 | 1,543 |
Intangible assets | ' | ' |
Goodwill | 874 | 874 |
Contract acquisition costs and other | 1,126 | 1,131 |
Goodwill And Intangible Assets, Net, Total | 2,000 | 2,005 |
Equity and cost method investments | 222 | 222 |
Notes receivable, net | 141 | 142 |
Deferred taxes, net | 627 | 647 |
Other | 541 | 332 |
Total Assets | 6,665 | 6,794 |
Current liabilities | ' | ' |
Current portion of long-term debt | 7 | 6 |
Accounts payable | 616 | 557 |
Accrued payroll and benefits | 732 | 817 |
Liability for guest loyalty programs | 661 | 666 |
Other | 580 | 629 |
Liabilities, Current, Total | 2,596 | 2,675 |
Long-term debt | 3,295 | 3,147 |
Liability for guest loyalty programs | 1,512 | 1,475 |
Other long-term liabilities | 887 | 912 |
Shareholders’ deficit | ' | ' |
Class A Common Stock | 5 | 5 |
Additional paid-in-capital | 2,664 | 2,716 |
Retained earnings | 3,917 | 3,837 |
Treasury stock, at cost | -8,170 | -7,929 |
Accumulated other comprehensive loss | -41 | -44 |
Stockholders' Deficit Attributable to Parent | -1,625 | -1,415 |
Liabilities and Deficit, Total | $6,665 | $6,794 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net income | $172 | $136 |
Adjustments to reconcile to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 36 | 25 |
Share-based compensation | 25 | 30 |
Income taxes | 16 | 33 |
Liability for guest loyalty programs | 30 | 8 |
Working capital changes | -121 | -154 |
Other | 24 | 40 |
Net cash provided by operating activities | 182 | 118 |
INVESTING ACTIVITIES | ' | ' |
Capital expenditures | -61 | -70 |
Dispositions | 292 | 0 |
Loan advances | -3 | -3 |
Loan collections | 9 | 20 |
Equity and cost method investments | -1 | -14 |
Contract acquisition costs | -6 | -14 |
Protea escrow deposit | -192 | 0 |
Other | 4 | -7 |
Net cash provided by (used in) investing activities | 42 | -88 |
FINANCING ACTIVITIES | ' | ' |
Commercial paper/Credit Facility, net | 149 | 722 |
Repayment of long-term debt | -2 | -402 |
Issuance of Class A Common Stock | 57 | 41 |
Dividends paid | -50 | -41 |
Purchase of treasury stock | -320 | -217 |
Net cash (used in) provided by financing activities | -166 | 103 |
INCREASE IN CASH AND EQUIVALENTS | 58 | 133 |
CASH AND EQUIVALENTS, beginning of period | 126 | 88 |
CASH AND EQUIVALENTS, end of period | $184 | $221 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | ||
Mar. 31, 2014 | |||
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. | |||
During the 2014 first quarter, we modified the information that our President and Chief Executive Officer, who is our "chief operating decision maker" ("CODM"), reviews to be consistent with our continent structure. This structure aligns our business around geographic regions and is designed to enable us to operate more efficiently and to accelerate worldwide growth. We changed our operating segments to reflect this continent structure and have revised our prior period business segment information accordingly. See Footnote No. 11, "Business Segments." | |||
Beginning with the 2014 first quarter, we reclassified amounts attributable to depreciation and amortization that we previously reported under the "General, administrative, and other" and "Owned, leased, and other-direct" captions of our Consolidated Statements of Income and presented these amounts in a separate "Depreciation and amortization" caption. We continue to report depreciation amounts that third party owners reimburse to us under "Reimbursed costs" in our Consolidated Statements of Income. In addition, in our Consolidated Statements of Cash Flows, we reclassified depreciation that third party owners reimburse to us from the "Depreciation and amortization" caption to the "Other" caption. We have reclassified the prior period amounts presented to conform to our 2014 first quarter presentation of these items. | |||
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”). The financial statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (“2013 Form 10-K”). Certain terms not otherwise defined in this Form 10-Q have the meanings specified in our 2013 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. | |||
In 2013, 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 ended 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. | |||
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. As shown below, our 2014 first quarter had three fewer days of activity than our 2013 first quarter. Our 2014 calendar year will also have three fewer days of activity than our 2013 fiscal year. | |||
Reporting Period | Date Range | Number of Days | |
2014 first quarter | January 1, 2014 - March 31, 2014 | 90 | |
2013 first quarter | December 29, 2012 - March 31, 2013 | 93 | |
2014 | January 1, 2014 - December 31, 2014 | 365 | |
2013 | December 29, 2012 - December 31, 2013 | 368 | |
Our Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position as of March 31, 2014, and December 31, 2013, the results of our operations for the three months ended March 31, 2014, and March 31, 2013, and cash flows for the three months ended March 31, 2014, and March 31, 2013. 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 | |||
We do not expect that accounting standard updates issued to date and that are effective after March 31, 2014 will have a material effect on our Financial Statements. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
Our effective tax rate decreased from 32.3% to 25.5% for the three months ended March 31, 2014 and included a $21 million favorable resolution of an issue with U.S. federal taxing authorities related to guest marketing. This benefit was partially offset by a $3 million benefit we recognized in the 2013 first quarter, which will not recur in 2014, due to retroactive provisions of the American Taxpayer Relief Act of 2012 and higher income before income taxes in the United States which were taxed at a higher rate. | |
For the 2014 first quarter, our unrecognized tax benefits balance was $14 million, decreasing $20 million from year-end 2013. The unrecognized tax benefits balance included $12 million of tax positions that, if recognized, would impact our effective tax rate. | |
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 participate in the IRS Compliance Assurance Program, which accelerates IRS examination of key transactions with the goal of resolving any issues before the taxpayer files its return. As a result, the audits of our open tax years 2010 through 2012 are complete, 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, while the 2013 and 2014 tax year audits are currently ongoing. Various foreign, state, and local income tax returns are also under examination by the applicable taxing authorities. | |
We paid cash for income taxes, net of refunds of $25 million in the 2014 first quarter and $15 million in the 2013 first quarter. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||
Mar. 31, 2014 | |||
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 $25 million for the 2014 first quarter and $30 million for the 2013 first quarter. Deferred compensation costs related to unvested awards totaled $195 million at March 31, 2014 and $108 million at December 31, 2013. | |||
RSUs | |||
We granted 1.9 million RSUs during the 2014 first quarter 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 performance-based RSUs ("PSUs") during the 2014 first quarter to certain named executive officers and their direct reports, subject to the satisfaction of certain performance conditions over, or at the end of, a three-year vesting period. RSUs, including PSUs, granted in the 2014 first quarter had a weighted average grant-date fair value of $51. | |||
SARs and Stock Options | |||
We granted 0.3 million SARs and 0.1 million stock options to officers and key employees during the 2014 first quarter. 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 2014 first quarter was $17 and the weighted average exercise price was $53. The weighted average grant-date fair value of stock options granted in the 2014 first quarter was $17 and the weighted average exercise price was $53. | |||
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 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 2014 first quarter: | |||
Expected volatility | 30 | % | |
Dividend yield | 1.14 | % | |
Risk-free rate | 2.3 - 2.5% | ||
Expected term (in years) | 7 | ||
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. | |||
Other Information | |||
As of the end of the 2014 first quarter, we had reserved 29 million shares under the Stock Plan, including 9 million shares under the Stock Option Program and the SAR Program. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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 March 31, 2014 | At December 31, 2013 | |||||||||||||||
($ in millions) | Carrying | Fair Value | Carrying | Fair Value | ||||||||||||
Amount | Amount | |||||||||||||||
Senior, mezzanine, and other loans | $ | 141 | $ | 142 | $ | 142 | $ | 145 | ||||||||
Marketable securities and other debt securities | 111 | 111 | 111 | 111 | ||||||||||||
Total long-term financial assets | $ | 252 | $ | 253 | $ | 253 | $ | 256 | ||||||||
Senior Notes | $ | (2,186 | ) | $ | (2,310 | ) | $ | (2,185 | ) | $ | (2,302 | ) | ||||
Commercial paper | (984 | ) | (984 | ) | (834 | ) | (834 | ) | ||||||||
Other long-term debt | (121 | ) | (124 | ) | (123 | ) | (124 | ) | ||||||||
Total long-term financial liabilities | $ | (3,291 | ) | $ | (3,418 | ) | $ | (3,142 | ) | $ | (3,260 | ) | ||||
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 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 2014 first quarter was $111 million. We also have 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 $71 million at the end of the 2014 first 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 $71 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. | ||||||||||||||||
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. 8, "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 2014 first quarter and year-end 2013, we determined that the carrying value of our commercial paper approximated its fair value due to the short maturity. | ||||||||||||||||
See the “Fair Value Measurements” caption of Footnote No. 1, “Summary of Significant Accounting Policies” of our 2013 Form 10-K for more information on the input levels we use in determining fair value. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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: | ||||||||
Three Months Ended | ||||||||
March 31, 2014 | March 31, 2013 | |||||||
(in millions, except per share amounts) | ||||||||
Computation of Basic Earnings Per Share | ||||||||
Net income | $ | 172 | $ | 136 | ||||
Weighted average shares outstanding | 296.1 | 311.8 | ||||||
Basic earnings per share | $ | 0.58 | $ | 0.44 | ||||
Computation of Diluted Earnings Per Share | ||||||||
Net income | $ | 172 | $ | 136 | ||||
Weighted average shares outstanding | 296.1 | 311.8 | ||||||
Effect of dilutive securities | ||||||||
Employee stock option and SARs plans | 3.4 | 4.3 | ||||||
Deferred stock incentive plans | 0.8 | 0.8 | ||||||
Restricted stock units | 3 | 3.1 | ||||||
Shares for diluted earnings per share | 303.3 | 320 | ||||||
Diluted earnings per share | $ | 0.57 | $ | 0.43 | ||||
We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We have excluded the following antidilutive stock options and SARs in our calculation of diluted earnings per share because their exercise prices were greater than the average market prices for the applicable periods: | ||||||||
(a) | for the 2014 first quarter, 0.2 million options and SARs; and | |||||||
(b) | for the 2013 first quarter, 0.4 million options and SARs. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 2014 first quarter and year-end 2013: | ||||||||
At Period End | ||||||||
($ in millions) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Land | $ | 536 | $ | 535 | ||||
Buildings and leasehold improvements | 777 | 786 | ||||||
Furniture and equipment | 777 | 789 | ||||||
Construction in progress | 374 | 338 | ||||||
2,464 | 2,448 | |||||||
Accumulated depreciation | (895 | ) | (905 | ) | ||||
$ | 1,569 | $ | 1,543 | |||||
The following table shows the composition of these property and equipment balances that we recorded as capital leases: | ||||||||
At Period End | ||||||||
($ in millions) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Land | $ | 8 | $ | 8 | ||||
Buildings and leasehold improvements | 57 | 68 | ||||||
Furniture and equipment | 22 | 37 | ||||||
Construction in progress | 1 | 1 | ||||||
88 | 114 | |||||||
Accumulated depreciation | (58 | ) | (83 | ) | ||||
$ | 30 | $ | 31 | |||||
See Footnote No. 12, "Acquisitions and Dispositions" for information on a $10 million impairment charge we recorded on three EDITION hotels in the "Depreciation and amortization" caption of our Income Statement. |
Notes_Receivable
Notes Receivable | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Notes Receivable | ' | |||||||
NOTES RECEIVABLE | ||||||||
The following table shows the composition of our notes receivable balances (net of reserves and unamortized discounts) at the end of the 2014 first quarter and year-end 2013: | ||||||||
At Period End | ||||||||
($ in millions) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Senior, mezzanine, and other loans | $ | 173 | $ | 178 | ||||
Less current portion | (32 | ) | (36 | ) | ||||
$ | 141 | $ | 142 | |||||
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 2014 first quarter: | ||||||||
Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates ($ in millions) | Amount | |||||||
2014 | $ | 32 | ||||||
2015 | 82 | |||||||
2016 | 3 | |||||||
2017 | 3 | |||||||
2018 | 4 | |||||||
Thereafter | 49 | |||||||
Balance at March 31, 2014 | $ | 173 | ||||||
Weighted average interest rate at March 31, 2014 | 4.5 | % | ||||||
Range of stated interest rates at March 31, 2014 | 0 - 8.0% | |||||||
The following table shows the unamortized discounts for our notes receivable at the end of the 2014 first quarter and year-end 2013: | ||||||||
Notes Receivable Unamortized Discounts ($ in millions) | Total | |||||||
Balance at year-end 2013 | $ | 12 | ||||||
Balance at March 31, 2014 | $ | 12 | ||||||
At the end of the 2014 first quarter, our recorded investment in impaired “Senior, mezzanine, and other loans” was $102 million, and we had a $90 million notes receivable reserve representing an allowance for credit losses, leaving $12 million of our investment in impaired loans, for which we had no related allowance for credit losses. At year-end 2013, our recorded investment in impaired “Senior, mezzanine, and other loans” was $99 million, and we had a $90 million notes receivable reserve representing an allowance for credit losses, leaving $9 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 $101 million for the 2014 first quarter and $94 million for the 2013 first quarter. | ||||||||
We had no activity related to our “Senior, mezzanine, and other loans” notes receivable reserve during the 2014 first quarter. We do not have any past due senior, mezzanine, and other loans as of the end of the 2014 first quarter. |
Longterm_Debt
Long-term Debt | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
LONG-TERM DEBT | ||||||||
We provide detail on our long-term debt balances in the following table as of the end of the 2014 first quarter and year-end 2013: | ||||||||
At Period End | ||||||||
($ in millions) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Senior Notes: | ||||||||
Series G, interest rate of 5.8%, face amount of $316, maturing November 10, 2015 | $ | 312 | $ | 312 | ||||
(effective interest rate of 6.6%)(1) | ||||||||
Series H, interest rate of 6.2%, face amount of $289, maturing June 15, 2016 | 289 | 289 | ||||||
(effective interest rate of 6.3%)(1) | ||||||||
Series I, interest rate of 6.4%, face amount of $293, maturing June 15, 2017 | 292 | 292 | ||||||
(effective interest rate of 6.5%)(1) | ||||||||
Series K, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 | 596 | 595 | ||||||
(effective interest rate of 4.4%)(1) | ||||||||
Series L, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 | 349 | 349 | ||||||
(effective interest rate of 3.4%)(1) | ||||||||
Series M, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 | 348 | 348 | ||||||
(effective interest rate of 3.6%)(1) | ||||||||
Commercial paper, average interest rate of 0.3% at March 31, 2014 | 984 | 834 | ||||||
$2,000 Credit Facility | — | — | ||||||
Other | 132 | 180 | ||||||
3,302 | 3,199 | |||||||
Less current portion classified in: | ||||||||
Other current liabilities (liabilities held for sale) | — | (46 | ) | |||||
Current portion of long-term debt | (7 | ) | (6 | ) | ||||
$ | 3,295 | $ | 3,147 | |||||
(1) | Face amount and effective interest rate are as of March 31, 2014. | |||||||
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. | ||||||||
We are a party to a multicurrency revolving credit agreement (the “Credit Facility”) that provides for $2,000 million of aggregate borrowings to support general corporate needs, including working capital, capital expenditures, share repurchases, and letters of credit. The availability of the Credit Facility also supports our commercial paper program. Borrowings under the Credit Facility generally bear interest at LIBOR (the London Interbank Offered Rate) plus a spread, based on our public debt rating. We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating. While any outstanding commercial paper borrowings and/or borrowings under our Credit Facility generally have short-term maturities, we classify the outstanding borrowings as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis. The Credit Facility expires on July 18, 2018. See the “Cash Requirements and Our Credit Facilities” caption later in this report in the “Liquidity and Capital Resources” section for information on our available borrowing capacity at March 31, 2014. | ||||||||
We show future principal payments for our debt as of the end of the 2014 first quarter in the following table: | ||||||||
Debt Principal Payments ($ in millions) | Amount | |||||||
2014 | $ | 5 | ||||||
2015 | 319 | |||||||
2016 | 297 | |||||||
2017 | 301 | |||||||
2018 | 993 | |||||||
Thereafter | 1,387 | |||||||
Balance at March 31, 2014 | $ | 3,302 | ||||||
We paid cash for interest, net of amounts capitalized, of $11 million in the 2014 first quarter and $21 million in the 2013 first quarter. |
Comprehensive_Income_and_Share
Comprehensive Income and Shareholders' (Deficit) Equity | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
Comprehensive Income and Shareholders' (Deficit) Equity | ' | ||||||||||||||||||||||||||
COMPREHENSIVE INCOME AND SHAREHOLDERS' (DEFICIT) EQUITY | |||||||||||||||||||||||||||
The following table details the accumulated other comprehensive income activity for the 2014 first quarter: | |||||||||||||||||||||||||||
($ 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 2013 | $ | (31 | ) | $ | (19 | ) | $ | 6 | $ | (44 | ) | ||||||||||||||||
Other comprehensive income before reclassifications (1) | — | 1 | 1 | 2 | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1 | — | 1 | |||||||||||||||||||||||
Net other comprehensive income | — | 2 | 1 | 3 | |||||||||||||||||||||||
Balance at March 31, 2014 | $ | (31 | ) | $ | (17 | ) | $ | 7 | $ | (41 | ) | ||||||||||||||||
(1) | We present the portions of other comprehensive income before reclassifications for the 2014 first quarter that relate to unrealized gains on available-for-sale securities net of $1 million of deferred taxes. | ||||||||||||||||||||||||||
The following table details the changes in common shares outstanding and shareholders’ deficit for the 2014 first quarter: | |||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||
298 | Balance at year-end 2013 | $ | (1,415 | ) | $ | 5 | $ | 2,716 | $ | 3,837 | $ | (7,929 | ) | $ | (44 | ) | |||||||||||
— | Net income | 172 | — | — | 172 | — | — | ||||||||||||||||||||
— | Other comprehensive income | 3 | — | — | — | — | 3 | ||||||||||||||||||||
— | Cash dividends ($0.1700 per share) | (50 | ) | — | — | (50 | ) | — | — | ||||||||||||||||||
3.4 | Employee stock plan issuance | 21 | — | (52 | ) | (42 | ) | 115 | — | ||||||||||||||||||
(7.0 | ) | Purchase of treasury stock | (356 | ) | — | — | — | (356 | ) | — | |||||||||||||||||
294.4 | Balance at March 31, 2014 | $ | (1,625 | ) | $ | 5 | $ | 2,664 | $ | 3,917 | $ | (8,170 | ) | $ | (41 | ) | |||||||||||
Contingencies
Contingencies | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 primarily market comparable data and 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 March 31, 2014 in the following table: | ||||||||
($ in millions) | Maximum Potential | Liability for Guarantees | ||||||
Guarantee Type | Amount of Future Fundings | |||||||
Debt service | $ | 77 | $ | 3 | ||||
Operating profit | 92 | 34 | ||||||
Other | 330 | 4 | ||||||
Total guarantees where we are the primary obligor | $ | 499 | $ | 41 | ||||
We included our liability at March 31, 2014 for guarantees for which we are the primary obligor on our Balance Sheet in “Other long-term liabilities.” | ||||||||
Our guarantees listed in the preceding table that will not be in effect until the underlying properties open and we begin to operate the properties or certain other events occur consist of $20 million of debt service guarantees, $12 million of operating profit guarantees, and $315 million of other guarantees. | ||||||||
Other guarantees that were not currently in effect include a "put option" agreement we entered into in the 2014 first quarter with the lenders for a construction loan. In conjunction with entering into a management agreement for the Times Square EDITION hotel in New York City (currently projected to open in 2017), and the hotel's ownership group obtaining acquisition financing and entering into agreements concerning future construction financing for the mixed use project (which includes both the hotel and adjacent retail space), we agreed in the first quarter of 2014 to provide credit support to the lenders through a "put option" agreement. Under this agreement, we granted the lenders the right, upon an uncured event of default by the hotel owner under, and an acceleration of, the mortgage loan, to require us to purchase the hotel component of the property during the first two years after opening for $315 million. The lenders may extend this period for up to three years to complete foreclosure if the loan has been accelerated and certain other conditions are met. We do not expect that the lenders will exercise this "put option." We have no ownership interest in this hotel. | ||||||||
The preceding table does not include the following guarantees: | ||||||||
• | $97 million of guarantees for Senior Living Services lease obligations of $71 million (expiring in 2018) and lifecare bonds of $26 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 $21 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 March 31, 2014. Sunrise previously provided us $5 million of 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 of cash collateral and an $85 million letter of credit issued by Key Bank to secure our exposure under the lease guarantees and certain other obligations of Sunrise. The letter of credit balance was $81 million at the end of the 2014 first quarter, which decreased as a result of lease payments made and lifecare bonds redeemed. 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. | |||||||
• | Lease obligations, for which we became secondarily liable when we acquired the Renaissance Hotel Group in 1997, consisting of annual rent payments of approximately $6 million and total remaining rent payments through the initial term of approximately $34 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 $4 million (€3 million) of which remained at March 31, 2014. 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 $16 million, relate to various letters of credit and several other guarantees. MVW has indemnified us for these obligations. At the end of the 2014 first quarter, we expect these obligations will expire as follows: $1 million in 2014, $3 million in 2017, and $12 million (14 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 March 31, 2014. | |||||||
• | 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 Worldwide ("Oakwood"). Oakwood has indemnified us for the obligations under this guarantee. Our total exposure at the end of the 2014 first quarter for this guarantee is $6 million in future rent payments through the end of the lease in 2019. Our liability for this guarantee had a carrying value of $1 million at March 31, 2014. | |||||||
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 March 31, 2014, 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 $8 million of this commitment in 2014. We do not expect to fund the remaining $2 million of this commitment. | |||||||
• | A commitment to invest up to $22 million of equity for noncontrolling interests in a partnership that plans to purchase or develop limited-service properties in Asia. We expect to fund this commitment as follows: $10 million in 2014 and $12 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: $6 million in 2014 and $5 million in 2015. | |||||||
• | A commitment to invest $18 million in the renovation of a leased hotel. We expect to fund this commitment by the end of 2014. | |||||||
• | 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 seven 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. | |||||||
• | 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 $85 million. We expect to fund these commitments as follows: $78 million in 2014, $5 million in 2015, and $2 million in 2016. The majority of these commitments will be recovered through cost reimbursement charges to properties in our system. | |||||||
• | Several commitments aggregating $35 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. | |||||||
• | A $9 million loan commitment that we extended to the owner of a property to cover the cost of renovation shortfalls which we expect to fund in 2015. The commitment will expire at the end of the 2016 second quarter. | |||||||
At March 31, 2014, we had $78 million of letters of credit outstanding ($77 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 March 31, 2014, totaled $123 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 Marriott's defense of statute of limitations with respect to Mr. Bond and Mr. Steigman and completed discovery concerning class certification. We opposed plaintiffs' motion for class certification and sought summary judgment on the issue of statute of limitations in 2012. 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. On January 7, 2014, the court denied plaintiffs' motion for class certification, and issued a Scheduling Order for full discovery of the remaining issues in this case. The parties filed a joint motion to modify the Scheduling Order on March 26, 2014. 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 the number of parties for whom the claims may be pursued, 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 | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Business Segments | ' | |||||||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||||||||
We are a diversified global lodging company. During the 2014 first quarter, we modified the information that our President and Chief Executive Officer, who is our CODM, reviews to be consistent with our continent structure. This structure aligns our business around geographic regions and is designed to enable us to operate more efficiently and to accelerate worldwide growth. As a result of modifying our reporting information, we revised our operating segments to eliminate our former Luxury segment, which we allocated between our existing North American Full-Service operating segment, and the following four new operating segments: Asia Pacific, Caribbean and Latin America, Europe, and Middle East and Africa. | ||||||||||||||||||||
Although our North American Full-Service and North American Limited-Service segments meet the applicable accounting criteria to be reportable business segments, our four new operating segments do not meet the criteria for separate disclosure as reportable business segments. Accordingly, we combined our four new operating segments into an "all other" category which we refer to as "International" and have revised our prior period business segment information to conform to our new business segment presentation. | ||||||||||||||||||||
As of the end the 2014 first quarter, our three business segments include the following brands: | ||||||||||||||||||||
• | North American Full-Service: Marriott Hotels, Marriott Conference Centers, JW Marriott, Renaissance Hotels, Renaissance ClubSport, Gaylord Hotels, The Ritz-Carlton (together with residential properties associated with some of The Ritz-Carlton hotels), and Autograph Collection properties located in the United States and Canada; | |||||||||||||||||||
• | North American Limited-Service: Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, and TownePlace Suites properties located in the United States and Canada; | |||||||||||||||||||
• | International: Marriott Hotels, JW Marriott, Renaissance Hotels, Autograph Collection, Courtyard, AC Hotels by Marriott, Fairfield Inn & Suites, Residence Inn, The Ritz-Carlton (together with residential properties associated with some The Ritz-Carlton hotels), Bulgari Hotels & Resorts, EDITION and Marriott Executive Apartments properties located outside the United States and Canada. | |||||||||||||||||||
We evaluate the performance of our business 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 a 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. It also includes license fees we receive from our credit card programs and license fees from MVW. Our CODM monitors assets for the consolidated company but does not use assets by business segment when assessing performance or making business segment resource allocations. | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
($ in millions) | March 31, 2014 | March 31, 2013 | ||||||||||||||||||
North American Full-Service Segment | $ | 2,049 | $ | 2,028 | ||||||||||||||||
North American Limited-Service Segment | 667 | 608 | ||||||||||||||||||
International Segment | 520 | 445 | ||||||||||||||||||
Total segment revenues | 3,236 | 3,081 | ||||||||||||||||||
Other unallocated corporate | 57 | 61 | ||||||||||||||||||
$ | 3,293 | $ | 3,142 | |||||||||||||||||
Net Income (Loss) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
($ in millions) | March 31, 2014 | March 31, 2013 | ||||||||||||||||||
North American Full-Service Segment | $ | 131 | $ | 133 | ||||||||||||||||
North American Limited-Service Segment | 115 | 106 | ||||||||||||||||||
International Segment | 65 | 50 | ||||||||||||||||||
Total segment financial results | 311 | 289 | ||||||||||||||||||
Other unallocated corporate | (55 | ) | (60 | ) | ||||||||||||||||
Interest expense and interest income | (25 | ) | (28 | ) | ||||||||||||||||
Income taxes | (59 | ) | (65 | ) | ||||||||||||||||
$ | 172 | $ | 136 | |||||||||||||||||
As a result of the changes to our operating segments discussed above, we reallocated goodwill among our affected reporting units based on the relative fair value of each remaining or newly identified reporting unit. We also determined that the estimated fair value of each reporting unit exceeded its carrying amount. The following table shows the reclassification of goodwill we previously associated with our former Luxury segment to our North American Full-Service and International segments. | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
($ in millions) | North American | North American | International | Former Luxury | Total | |||||||||||||||
Full-Service | Limited-Service | Segment | Segment | Goodwill | ||||||||||||||||
Segment | Segment | |||||||||||||||||||
Year-end 2013 balance: | ||||||||||||||||||||
Goodwill | $ | 335 | $ | 125 | $ | 298 | $ | 170 | $ | 928 | ||||||||||
Accumulated impairment losses | — | (54 | ) | — | — | (54 | ) | |||||||||||||
$ | 335 | $ | 71 | $ | 298 | $ | 170 | $ | 874 | |||||||||||
Segment reclassifications | $ | 57 | $ | — | $ | 113 | $ | (170 | ) | $ | — | |||||||||
March 31, 2014 balance: | ||||||||||||||||||||
Goodwill | $ | 392 | $ | 125 | $ | 411 | $ | — | $ | 928 | ||||||||||
Accumulated impairment losses | — | (54 | ) | — | — | (54 | ) | |||||||||||||
$ | 392 | $ | 71 | $ | 411 | $ | — | $ | 874 | |||||||||||
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 3 Months Ended | |
Mar. 31, 2014 | ||
Acquisitions and Dispositions [Abstract] | ' | |
Acquisitions and Dispositions | ' | |
ACQUISITIONS AND DISPOSITIONS | ||
2014 Acquisitions | ||
On the first day of our 2014 second quarter, we acquired Protea Hotels' brands and hotel management business ("Protea Hotels") for $193 million (ZAR 2.046 billion) in cash and recognized approximately: $183 million (ZAR 1.931 billion) in intangible assets consisting of deferred contract acquisition costs, a brand intangible, and goodwill; and $10 million (ZAR 115 million) of tangible assets consisting of property and equipment, equity method investments, and other current assets at the acquisition date. At the end of the 2014 first quarter, we transferred $192 million in cash to a third party in the form of an escrow deposit. As part of the transaction, Protea Hospitality Holdings created an independent property ownership company that retained ownership of the hotels Protea Hospitality Holdings formerly owned, and entered into long-term management and lease agreements with Marriott for these hotels. The property ownership company also retained a number of minority interests in other Protea-managed hotels. As a result of the transaction, we added over 100 hotels (over 10,000 rooms) across three brands in South Africa and six other Sub-Saharan African countries to our International segment portfolio and currently manage approximately 45 percent, franchise approximately 39 percent, and lease approximately 16 percent of those rooms. | ||
2014 Dispositions | ||
In the 2014 first quarter, we sold The London EDITION to a third party, received approximately $230 million in cash, and simultaneously entered into definitive agreements to sell The Miami and The New York EDITION hotels that we are currently developing to the same third party. The total sales price for the three EDITION hotels will be approximately $816 million. We expect to sell The Miami EDITION in the second half of 2014 and The New York EDITION in the first half of 2015, when we anticipate that construction will be complete. We will retain long-term management agreements for each of the three hotels sold. 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. In the 2014 first quarter, we evaluated the three hotels for recovery and subsequently recorded a $10 million impairment charge in the "Depreciation and amortization" caption of our Income Statement as our current cost estimates exceed our total fixed sales price. We did not allocate that charge to any of our segments. | ||
In the 2014 first quarter, we sold our right to acquire the landlord’s interest in a leased real estate property and certain attached assets of the property, consisting of $106 million (€77 million) in property and equipment and $48 million (€35 million) in liabilities. We received $62 million (€45 million) in cash and transferred $45 million (€33 million) of related obligations. We continue to operate the property under a long-term management agreement. |
Policies
Policies | 3 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Fiscal Period | ' | ||
In 2013, 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 ended 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. | |||
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. As shown below, our 2014 first quarter had three fewer days of activity than our 2013 first quarter. Our 2014 calendar year will also have three fewer days of activity than our 2013 fiscal year. | |||
Reporting Period | Date Range | Number of Days | |
2014 first quarter | January 1, 2014 - March 31, 2014 | 90 | |
2013 first quarter | December 29, 2012 - March 31, 2013 | 93 | |
2014 | January 1, 2014 - December 31, 2014 | 365 | |
2013 | December 29, 2012 - December 31, 2013 | 368 | |
New Accounting Pronouncements | ' | ||
New Accounting Standards | |||
We do not expect that accounting standard updates issued to date and that are effective after March 31, 2014 will have a material effect on our Financial Statements. | |||
Earnings Per Share Dilutive Securities | ' | ||
We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. | |||
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 primarily market comparable data and assumptions about market capitalization rates, credit spreads, growth rates, and inflation. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
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. As shown below, our 2014 first quarter had three fewer days of activity than our 2013 first quarter. Our 2014 calendar year will also have three fewer days of activity than our 2013 fiscal year. | |||
Reporting Period | Date Range | Number of Days | |
2014 first quarter | January 1, 2014 - March 31, 2014 | 90 | |
2013 first quarter | December 29, 2012 - March 31, 2013 | 93 | |
2014 | January 1, 2014 - December 31, 2014 | 365 | |
2013 | December 29, 2012 - December 31, 2013 | 368 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||
Mar. 31, 2014 | |||
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 2014 first quarter: | |||
Expected volatility | 30 | % | |
Dividend yield | 1.14 | % | |
Risk-free rate | 2.3 - 2.5% | ||
Expected term (in years) | 7 | ||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
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 March 31, 2014 | At December 31, 2013 | |||||||||||||||
($ in millions) | Carrying | Fair Value | Carrying | Fair Value | ||||||||||||
Amount | Amount | |||||||||||||||
Senior, mezzanine, and other loans | $ | 141 | $ | 142 | $ | 142 | $ | 145 | ||||||||
Marketable securities and other debt securities | 111 | 111 | 111 | 111 | ||||||||||||
Total long-term financial assets | $ | 252 | $ | 253 | $ | 253 | $ | 256 | ||||||||
Senior Notes | $ | (2,186 | ) | $ | (2,310 | ) | $ | (2,185 | ) | $ | (2,302 | ) | ||||
Commercial paper | (984 | ) | (984 | ) | (834 | ) | (834 | ) | ||||||||
Other long-term debt | (121 | ) | (124 | ) | (123 | ) | (124 | ) | ||||||||
Total long-term financial liabilities | $ | (3,291 | ) | $ | (3,418 | ) | $ | (3,142 | ) | $ | (3,260 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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: | ||||||||
Three Months Ended | ||||||||
March 31, 2014 | March 31, 2013 | |||||||
(in millions, except per share amounts) | ||||||||
Computation of Basic Earnings Per Share | ||||||||
Net income | $ | 172 | $ | 136 | ||||
Weighted average shares outstanding | 296.1 | 311.8 | ||||||
Basic earnings per share | $ | 0.58 | $ | 0.44 | ||||
Computation of Diluted Earnings Per Share | ||||||||
Net income | $ | 172 | $ | 136 | ||||
Weighted average shares outstanding | 296.1 | 311.8 | ||||||
Effect of dilutive securities | ||||||||
Employee stock option and SARs plans | 3.4 | 4.3 | ||||||
Deferred stock incentive plans | 0.8 | 0.8 | ||||||
Restricted stock units | 3 | 3.1 | ||||||
Shares for diluted earnings per share | 303.3 | 320 | ||||||
Diluted earnings per share | $ | 0.57 | $ | 0.43 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 2014 first quarter and year-end 2013: | ||||||||
At Period End | ||||||||
($ in millions) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Land | $ | 536 | $ | 535 | ||||
Buildings and leasehold improvements | 777 | 786 | ||||||
Furniture and equipment | 777 | 789 | ||||||
Construction in progress | 374 | 338 | ||||||
2,464 | 2,448 | |||||||
Accumulated depreciation | (895 | ) | (905 | ) | ||||
$ | 1,569 | $ | 1,543 | |||||
The following table shows the composition of these property and equipment balances that we recorded as capital leases: | ||||||||
At Period End | ||||||||
($ in millions) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Land | $ | 8 | $ | 8 | ||||
Buildings and leasehold improvements | 57 | 68 | ||||||
Furniture and equipment | 22 | 37 | ||||||
Construction in progress | 1 | 1 | ||||||
88 | 114 | |||||||
Accumulated depreciation | (58 | ) | (83 | ) | ||||
$ | 30 | $ | 31 | |||||
Notes_Receivable_Tables
Notes Receivable (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |||||||
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 2014 first quarter: | ||||||||
Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates ($ in millions) | Amount | |||||||
2014 | $ | 32 | ||||||
2015 | 82 | |||||||
2016 | 3 | |||||||
2017 | 3 | |||||||
2018 | 4 | |||||||
Thereafter | 49 | |||||||
Balance at March 31, 2014 | $ | 173 | ||||||
Weighted average interest rate at March 31, 2014 | 4.5 | % | ||||||
Range of stated interest rates at March 31, 2014 | 0 - 8.0% | |||||||
Notes Receivable Unamortized Discounts | ' | |||||||
The following table shows the unamortized discounts for our notes receivable at the end of the 2014 first quarter and year-end 2013: | ||||||||
Notes Receivable Unamortized Discounts ($ in millions) | Total | |||||||
Balance at year-end 2013 | $ | 12 | ||||||
Balance at March 31, 2014 | $ | 12 | ||||||
Notes Receivable | ' | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | |||||||
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 2014 first quarter and year-end 2013: | ||||||||
At Period End | ||||||||
($ in millions) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Senior, mezzanine, and other loans | $ | 173 | $ | 178 | ||||
Less current portion | (32 | ) | (36 | ) | ||||
$ | 141 | $ | 142 | |||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 2014 first quarter and year-end 2013: | ||||||||
At Period End | ||||||||
($ in millions) | March 31, | December 31, | ||||||
2014 | 2013 | |||||||
Senior Notes: | ||||||||
Series G, interest rate of 5.8%, face amount of $316, maturing November 10, 2015 | $ | 312 | $ | 312 | ||||
(effective interest rate of 6.6%)(1) | ||||||||
Series H, interest rate of 6.2%, face amount of $289, maturing June 15, 2016 | 289 | 289 | ||||||
(effective interest rate of 6.3%)(1) | ||||||||
Series I, interest rate of 6.4%, face amount of $293, maturing June 15, 2017 | 292 | 292 | ||||||
(effective interest rate of 6.5%)(1) | ||||||||
Series K, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 | 596 | 595 | ||||||
(effective interest rate of 4.4%)(1) | ||||||||
Series L, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 | 349 | 349 | ||||||
(effective interest rate of 3.4%)(1) | ||||||||
Series M, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 | 348 | 348 | ||||||
(effective interest rate of 3.6%)(1) | ||||||||
Commercial paper, average interest rate of 0.3% at March 31, 2014 | 984 | 834 | ||||||
$2,000 Credit Facility | — | — | ||||||
Other | 132 | 180 | ||||||
3,302 | 3,199 | |||||||
Less current portion classified in: | ||||||||
Other current liabilities (liabilities held for sale) | — | (46 | ) | |||||
Current portion of long-term debt | (7 | ) | (6 | ) | ||||
$ | 3,295 | $ | 3,147 | |||||
(1) | Face amount and effective interest rate are as of March 31, 2014. | |||||||
Debt Principal Payments (Net of Unamortized Discounts) | ' | |||||||
We show future principal payments for our debt as of the end of the 2014 first quarter in the following table: | ||||||||
Debt Principal Payments ($ in millions) | Amount | |||||||
2014 | $ | 5 | ||||||
2015 | 319 | |||||||
2016 | 297 | |||||||
2017 | 301 | |||||||
2018 | 993 | |||||||
Thereafter | 1,387 | |||||||
Balance at March 31, 2014 | $ | 3,302 | ||||||
Comprehensive_Income_and_Share1
Comprehensive Income and Shareholders' (Deficit) Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) Activity | ' | ||||||||||||||||||||||||||
The following table details the accumulated other comprehensive income activity for the 2014 first quarter: | |||||||||||||||||||||||||||
($ 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 2013 | $ | (31 | ) | $ | (19 | ) | $ | 6 | $ | (44 | ) | ||||||||||||||||
Other comprehensive income before reclassifications (1) | — | 1 | 1 | 2 | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 1 | — | 1 | |||||||||||||||||||||||
Net other comprehensive income | — | 2 | 1 | 3 | |||||||||||||||||||||||
Balance at March 31, 2014 | $ | (31 | ) | $ | (17 | ) | $ | 7 | $ | (41 | ) | ||||||||||||||||
(1) | We present the portions of other comprehensive income before reclassifications for the 2014 first quarter that relate to unrealized gains on available-for-sale securities net of $1 million of deferred taxes. | ||||||||||||||||||||||||||
Changes in Shareholders' Deficit | ' | ||||||||||||||||||||||||||
The following table details the changes in common shares outstanding and shareholders’ deficit for the 2014 first quarter: | |||||||||||||||||||||||||||
(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 | |||||||||||||||||||||||||||
298 | Balance at year-end 2013 | $ | (1,415 | ) | $ | 5 | $ | 2,716 | $ | 3,837 | $ | (7,929 | ) | $ | (44 | ) | |||||||||||
— | Net income | 172 | — | — | 172 | — | — | ||||||||||||||||||||
— | Other comprehensive income | 3 | — | — | — | — | 3 | ||||||||||||||||||||
— | Cash dividends ($0.1700 per share) | (50 | ) | — | — | (50 | ) | — | — | ||||||||||||||||||
3.4 | Employee stock plan issuance | 21 | — | (52 | ) | (42 | ) | 115 | — | ||||||||||||||||||
(7.0 | ) | Purchase of treasury stock | (356 | ) | — | — | — | (356 | ) | — | |||||||||||||||||
294.4 | Balance at March 31, 2014 | $ | (1,625 | ) | $ | 5 | $ | 2,664 | $ | 3,917 | $ | (8,170 | ) | $ | (41 | ) | |||||||||||
Contingencies_Tables
Contingencies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, 2014 in the following table: | ||||||||
($ in millions) | Maximum Potential | Liability for Guarantees | ||||||
Guarantee Type | Amount of Future Fundings | |||||||
Debt service | $ | 77 | $ | 3 | ||||
Operating profit | 92 | 34 | ||||||
Other | 330 | 4 | ||||||
Total guarantees where we are the primary obligor | $ | 499 | $ | 41 | ||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Revenues | ' | |||||||||||||||||||
Revenues | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
($ in millions) | March 31, 2014 | March 31, 2013 | ||||||||||||||||||
North American Full-Service Segment | $ | 2,049 | $ | 2,028 | ||||||||||||||||
North American Limited-Service Segment | 667 | 608 | ||||||||||||||||||
International Segment | 520 | 445 | ||||||||||||||||||
Total segment revenues | 3,236 | 3,081 | ||||||||||||||||||
Other unallocated corporate | 57 | 61 | ||||||||||||||||||
$ | 3,293 | $ | 3,142 | |||||||||||||||||
Net Income (Loss) | ' | |||||||||||||||||||
Net Income (Loss) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
($ in millions) | March 31, 2014 | March 31, 2013 | ||||||||||||||||||
North American Full-Service Segment | $ | 131 | $ | 133 | ||||||||||||||||
North American Limited-Service Segment | 115 | 106 | ||||||||||||||||||
International Segment | 65 | 50 | ||||||||||||||||||
Total segment financial results | 311 | 289 | ||||||||||||||||||
Other unallocated corporate | (55 | ) | (60 | ) | ||||||||||||||||
Interest expense and interest income | (25 | ) | (28 | ) | ||||||||||||||||
Income taxes | (59 | ) | (65 | ) | ||||||||||||||||
$ | 172 | $ | 136 | |||||||||||||||||
Goodwill | ' | |||||||||||||||||||
Goodwill | ||||||||||||||||||||
($ in millions) | North American | North American | International | Former Luxury | Total | |||||||||||||||
Full-Service | Limited-Service | Segment | Segment | Goodwill | ||||||||||||||||
Segment | Segment | |||||||||||||||||||
Year-end 2013 balance: | ||||||||||||||||||||
Goodwill | $ | 335 | $ | 125 | $ | 298 | $ | 170 | $ | 928 | ||||||||||
Accumulated impairment losses | — | (54 | ) | — | — | (54 | ) | |||||||||||||
$ | 335 | $ | 71 | $ | 298 | $ | 170 | $ | 874 | |||||||||||
Segment reclassifications | $ | 57 | $ | — | $ | 113 | $ | (170 | ) | $ | — | |||||||||
March 31, 2014 balance: | ||||||||||||||||||||
Goodwill | $ | 392 | $ | 125 | $ | 411 | $ | — | $ | 928 | ||||||||||
Accumulated impairment losses | — | (54 | ) | — | — | (54 | ) | |||||||||||||
$ | 392 | $ | 71 | $ | 411 | $ | — | $ | 874 | |||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | |
Forecast | ||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Change in length of period from corresponding year-earlier period | '3 days | ' | ' | '3 days |
Fiscal period duration | '90 days | '93 days | '368 days | '365 days |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes [Line Items] | ' | ' |
Effective income tax rate | 25.50% | 32.30% |
Income tax expense (benefit) recognized due to retroactive provisions in American Taxpayer Relief Act of 2012 | ' | ($3) |
Unrecognized tax benefits | 14 | ' |
Unrecognized tax benefits, period increase (decrease) | -20 | ' |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | 12 | ' |
Net cash payments (receipts) for income tax (refunds) | 25 | 15 |
US Federal Tax Issue | ' | ' |
Income Taxes [Line Items] | ' | ' |
Change in unrecognized tax benefits, amount of unrecorded benefit | $21 | ' |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation expense | $25 | $30 | ' |
Deferred compensation costs related to unvested awards | $195 | ' | $108 |
Shares reserved under the Stock Plan | 29 | ' | ' |
RSUs and Performance-based RSUs | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock awards, weighted average grant-date fair value (in USD per share) | $51 | ' | ' |
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) | 1.9 | ' | ' |
Stock awards, vesting period | '4 years | ' | ' |
Stock awards, percentage of award vesting and becoming exercisable annually | 25.00% | ' | ' |
Performance-based 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 awards, vesting period | '3 years | ' | ' |
Employee stock option and SARs plans | ' | ' | ' |
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 | 9 | ' | ' |
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) | 0.3 | ' | ' |
Stock awards, percentage of award vesting and becoming exercisable annually | 25.00% | ' | ' |
Stock awards, weighted average grant-date fair value (in USD per share) | $17 | ' | ' |
Stock awards, weighted average exercise price (in USD per share) | $53 | ' | ' |
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) | $17 | ' | ' |
Stock awards, options, weighted average exercise price (in USD per share) | $53 | ' | ' |
Assumptions_for_SARs_and_Stock
Assumptions for SARs and Stock Options Granted (Detail) (Employee stock option and SARs plans) | 3 Months Ended |
Mar. 31, 2014 | |
Employee stock option and SARs plans | ' |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' |
Expected volatility | 30.00% |
Dividend yield | 1.14% |
Risk-free rate, minimum | 2.30% |
Risk-free rate, maximum | 2.50% |
Expected term (in years) | '7 years |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Fair Value, Inputs, Level 1 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Carrying value of our marketable securities | 111 |
Commercial Paper | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Commercial paper, maturity term (generally 30 days or less) | '30 days |
Mandatorily Redeemable Preferred Equity Ownership Interest | Debt Securities | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Held-to-maturity securities | 65 |
Number of hotels | 3 |
Held-to-maturity securities, amortized cost basis | 71 |
Held-to-maturity securities, fair value | 71 |
Carrying_Values_and_Fair_Value
Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Senior, mezzanine, and other loans | $141 | $142 |
Carrying Amount | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Senior, mezzanine, and other loans | 141 | 142 |
Marketable securities and other debt securities | 111 | 111 |
Total long-term financial assets | 252 | 253 |
Senior Notes | -2,186 | -2,185 |
Commercial paper | -984 | -834 |
Other long-term debt | -121 | -123 |
Total long-term financial liabilities | -3,291 | -3,142 |
Fair Value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Senior, mezzanine, and other loans | 142 | 145 |
Marketable securities and other debt securities | 111 | 111 |
Total long-term financial assets | 253 | 256 |
Senior Notes | -2,310 | -2,302 |
Commercial paper | -984 | -834 |
Other long-term debt | -124 | -124 |
Total long-term financial liabilities | ($3,418) | ($3,260) |
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 | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Computation of Basic Earnings Per Share | ' | ' |
Net income | $172 | $136 |
Weighted average shares outstanding | 296.1 | 311.8 |
Basic earnings per share (in USD per share) | $0.58 | $0.44 |
Computation of Diluted Earnings Per Share | ' | ' |
Net income | $172 | $136 |
Weighted average shares outstanding | 296.1 | 311.8 |
Effect of dilutive securities | ' | ' |
Shares for diluted earnings per share | 303.3 | 320 |
Diluted earnings per share (in USD per share) | $0.57 | $0.43 |
Employee stock option and SARs plans | ' | ' |
Effect of dilutive securities | ' | ' |
Effect of dilutive securities | 3.4 | 4.3 |
Deferred stock incentive plans | ' | ' |
Effect of dilutive securities | ' | ' |
Effect of dilutive securities | 0.8 | 0.8 |
Restricted stock units | ' | ' |
Effect of dilutive securities | ' | ' |
Effect of dilutive securities | 3 | 3.1 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Employee stock option and SARs plans) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Employee stock option and SARs plans | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Securities not included in the calculation of diluted earnings per share (in shares) | 0.2 | 0.4 |
Composition_of_our_Property_an
Composition of our Property and Equipment Balances (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2015 |
In Millions, unless otherwise specified | Land | Land | Buildings and leasehold improvements | Buildings and leasehold improvements | Furniture and equipment | Furniture and equipment | Construction in progress | Construction in progress | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Capital Lease Obligations | Other unallocated corporate | Forecast | ||
Land | Land | Buildings and leasehold improvements | Buildings and leasehold improvements | Furniture and equipment | Furniture and equipment | Construction in progress | Construction in progress | EDITION Hotels | Other unallocated corporate | |||||||||||||
Depreciation and Amortization | EDITION Hotels | |||||||||||||||||||||
hotel | ||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, gross | $2,464 | $2,448 | $536 | $535 | $777 | $786 | $777 | $789 | $374 | $338 | $88 | $114 | $8 | $8 | $57 | $68 | $22 | $37 | $1 | $1 | ' | ' |
Accumulated depreciation | -895 | -905 | ' | ' | ' | ' | ' | ' | ' | ' | -58 | -83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 1,569 | 1,543 | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' |
Number of hotels | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 |
Composition_of_our_Notes_Recei
Composition of our Notes Receivable Balances (Net of Reserves) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Senior, mezzanine, and other loans | $173 | $178 |
Current notes receivable | -32 | -36 |
Notes receivable, noncurrent | $141 | $142 |
Notes_Receivable_Principal_Pay
Notes Receivable Principal Payments (Net of Reserves and Unamortized Discounts) and Interest Rates (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
2014 | $32 | ' |
2015 | 82 | ' |
2016 | 3 | ' |
2017 | 3 | ' |
2018 | 4 | ' |
Thereafter | 49 | ' |
Senior, mezzanine, and other loans | $173 | $178 |
Weighted average interest rate at March 31, 2014 | 4.50% | ' |
Range of stated interest rates at March 31, 2014, minimum | 0.00% | ' |
Range of stated interest rates at March 31, 2014, maximum | 8.00% | ' |
Notes_Receivable_Unamortized_D
Notes Receivable Unamortized Discounts (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Notes receivable, unamortized discounts, balance | $12 | $12 |
Notes_Receivable_Additional_In
Notes Receivable - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2014 | Sep. 07, 2012 | Dec. 31, 2013 | |
Receivables [Abstract] | ' | ' | ' |
Investment in impaired loans | $102,000,000 | ' | $99,000,000 |
Notes receivable reserve representing an allowance for credit losses | 90,000,000 | ' | 90,000,000 |
Investment in impaired loans with no related allowance for credit losses | 12,000,000 | ' | 9,000,000 |
Average investment in impaired loans | 101,000,000 | 94,000,000 | ' |
Activity for the period related to Senior, mezzanine, and other loans | 0 | ' | ' |
Notes receivable, past due | $0 | ' | ' |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ||
$2,000 Credit Facility | $0 | $0 | ||
Other | 132,000,000 | 180,000,000 | ||
Long-term debt | 3,302,000,000 | 3,199,000,000 | ||
Other current liabilities (liabilities held for sale) | 0 | -46,000,000 | ||
Current portion of long-term debt | -7,000,000 | -6,000,000 | ||
Long-term debt, noncurrent | 3,295,000,000 | 3,147,000,000 | ||
Multicurrency revolving credit agreement, aggregate effective borrowings | 2,000,000,000 | ' | ||
Series G, Senior Notes 5.810% Due November 10, 2015 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Senior Notes | 312,000,000 | [1] | 312,000,000 | [1] |
Debt instrument, stated interest rate | 5.80% | ' | ||
Senior Notes, face amount | 316,000,000 | ' | ||
Senior Notes, effective interest rate | 6.60% | ' | ||
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 | 6.30% | ' | ||
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 | 6.40% | ' | ||
Senior Notes, face amount | 293,000,000 | ' | ||
Senior Notes, effective interest rate | 6.50% | ' | ||
Series K, Senior Notes 3.000% Due March 1, 2019 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Senior Notes | 596,000,000 | [1] | 595,000,000 | [1] |
Debt instrument, stated interest rate | 3.00% | ' | ||
Senior Notes, face amount | 600,000,000 | ' | ||
Senior Notes, effective interest rate | 4.40% | ' | ||
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 | 3.40% | ' | ||
Series M Senior Notes 3.375% Due October 15, 2020 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Senior Notes | 348,000,000 | [1] | 348,000,000 | [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 0.3% at March 31, 2014 | $984,000,000 | $834,000,000 | ||
Long-term debt, average interest rate | 0.30% | ' | ||
[1] | Face amount and effective interest rate are as of March 31, 2014. |
Longterm_Debt_Additional_Infor
Long-term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Multicurrency revolving credit agreement, aggregate effective borrowings | $2,000,000,000 | ' |
Cash paid for interest, net of amounts capitalized | $11,000,000 | $21,000,000 |
Debt_Principal_Payments_Net_of
Debt Principal Payments (Net of Unamortized Discounts) (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $5 | ' |
2015 | 319 | ' |
2016 | 297 | ' |
2017 | 301 | ' |
2018 | 993 | ' |
Thereafter | 1,387 | ' |
Long-term debt | $3,302 | $3,199 |
Comprehensive_Income_and_Share2
Comprehensive Income and Shareholders' (Deficit) Equity Accumulated Other Comprehensive Income Activity (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | |
Balance at year-end 2013 | ($44) | |
Other comprehensive income before reclassifications | 2 | [1] |
Amounts reclassified from accumulated other comprehensive loss | 1 | |
Net other comprehensive income | 3 | |
Balance at March 31, 2014 | -41 | |
Other comprehensive income (loss), before reclassifications, unrealized gains on available-for-sale securities, deferred tax | 1 | |
Foreign Currency Translation Adjustments | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | |
Balance at year-end 2013 | -31 | |
Other comprehensive income before reclassifications | 0 | [1] |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Net other comprehensive income | 0 | |
Balance at March 31, 2014 | -31 | |
Other Derivative Instrument Adjustments | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | |
Balance at year-end 2013 | -19 | |
Other comprehensive income before reclassifications | 1 | [1] |
Amounts reclassified from accumulated other comprehensive loss | 1 | |
Net other comprehensive income | 2 | |
Balance at March 31, 2014 | -17 | |
Unrealized Gains on Available-For-Sale Securities | ' | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | |
Balance at year-end 2013 | 6 | |
Other comprehensive income before reclassifications | 1 | [1] |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Net other comprehensive income | 1 | |
Balance at March 31, 2014 | $7 | |
[1] | We present the portions of other comprehensive income before reclassifications for the 2014 first quarter that relate to unrealized gains on available-for-sale securities net of $1 million of deferred taxes. |
Changes_in_Shareholders_Defici
Changes in Shareholders' Deficit (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
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 2013 | ($1,415) | ' | $5 | $5 | $2,716 | $3,837 | ($7,929) | ($44) |
Balance at year-end 2013, shares | 298 | ' | ' | ' | ' | ' | ' | ' |
Net income | 172 | 136 | ' | ' | ' | 172 | ' | ' |
Other comprehensive income | 3 | -2 | ' | ' | ' | ' | ' | 3 |
Cash dividends ($0.1700 per share) | -50 | ' | ' | ' | ' | -50 | ' | ' |
Employee stock plan issuance | 21 | ' | ' | ' | -52 | -42 | 115 | ' |
Employee stock plan issuance, shares | 3.4 | ' | ' | ' | ' | ' | ' | ' |
Purchase of treasury stock | -356 | ' | ' | ' | ' | ' | -356 | ' |
Purchase of treasury stock, shares | -7 | ' | ' | ' | ' | ' | ' | ' |
Balance at March 31, 2014 | ($1,625) | ' | $5 | $5 | $2,664 | $3,917 | ($8,170) | ($41) |
Balance at March 31, 2014, shares | 294.4 | ' | ' | ' | ' | ' | ' | ' |
Cash dividends, per share (in USD per share) | $0.17 | ' | ' | ' | ' | ' | ' | ' |
Contingencies_Guarantees_Detai
Contingencies - Guarantees (Details) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 30, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 30, 2011 | Mar. 31, 2014 | Dec. 30, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 09, 2005 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Lease Obligations and Debt Securities Payable | Property Lease Guarantee | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | New York City EDITION Hotel | |
USD ($) | ExecuStay | USD ($) | Debt service | Operating profit | Other guarantees | Not Yet In Effect Condition | Not Yet In Effect Condition | Not Yet In Effect Condition | USD ($) | Sunrise Senior Living Inc | 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 2019 | Primary Obligor | ||
USD ($) | USD ($) | USD ($) | USD ($) | Debt service | Operating profit | Other guarantees | USD ($) | USD ($) | Expiration in 2014 | Expiration in 2017 | Expiration in 2022 | Expiration in 2022 | Sunrise Senior Living Inc | 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. | USD ($) | Sunrise Senior Living Inc | CNL Retirement Properties Inc | Five Star Senior Living | Property Lease Guarantee | Other guarantees | |||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | SGD | USD ($) | USD ($) | Key Bank | Key Bank | USD ($) | EUR (€) | EUR (€) | USD ($) | USD ($) | USD ($) | ExecuStay | USD ($) | ||||||||||||
Letter of Credit | Letter of Credit | USD ($) | ||||||||||||||||||||||||||||
USD ($) | USD ($) | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding guarantees, minimum term | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding guarantees, maximum term | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability for guarantees | ' | ' | ' | $41 | $3 | $34 | $4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum potential amount of future fundings | ' | ' | ' | 499 | 77 | 92 | 330 | 20 | 12 | 315 | 97 | ' | 16 | 1 | 3 | 12 | 14 | 71 | ' | ' | ' | ' | ' | ' | 26 | 4 | 21 | 1 | 6 | 315 |
Guarantor obligations, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years |
Guarantor obligations, extended term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Guarantee obligations, carrying value | ' | 3 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash collateral in the event funding is required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 for five years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit provided by Sunrise, amount available at period end | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral for continuing lease obligation contingency, future minimum annual payments due from 2014 until 2018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual rent payments, approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining rent payments, approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34 | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee obligations, cash collateralized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4 | € 3 | € 35 | ' | ' | ' | ' | ' | ' |
Contingencies_Commitments_and_
Contingencies - Commitments and Letters of Credit (Detail) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 30, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | EUR (€) | USD ($) | Line of Credit Facility | Outside Effective Credit Facility | Real Estate Investment | Real Estate Investment | Renovation of Leased Hotel | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Information Technology Hardware, Software, Accounting, Finance, and Maintenance Services | Commitments | Lodging Property | Full Service and Limited Service | Full Service and Limited Service | Limited Service | Limited Service | Debt Securities | |
USD ($) | USD ($) | USD ($) | Upper Limit | USD ($) | Entity | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | 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 | ||||
USD ($) | USD ($) | Upper Limit | USD ($) | Upper Limit | USD ($) | ||||||||||||||||
USD ($) | USD ($) | hotel | |||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment commitments | ' | ' | ' | ' | ' | ' | $11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | $22 | $10 |
Investment commitments expected to be funded by 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' |
Investment commitments expected to be funded in 2014 | ' | ' | ' | ' | ' | 6 | ' | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' |
Investment commitments expected to be funded in 2015 | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' |
Investment commitments not expected to be funded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | 2 | ' | ' | ' | ' |
Acquisition interests in joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent acquisition period | ' | ' | ' | ' | ' | ' | ' | ' | '7 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85 | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78 | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Number of hotels included in investment commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 |
Loan commitment, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | 78 | 1 | 77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surety bonds issued | ' | ' | $123 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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_Segments_Additional_I
Business Segments - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
segment | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 6 |
Number of operating segments related to reorganization | 4 |
Number of business segments | 3 |
Business_Segments_Revenues_Det
Business Segments - Revenues (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | $3,293 | $3,142 |
Total segment | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 3,236 | 3,081 |
Other unallocated corporate | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 57 | 61 |
North American Full-Service Segment | Total segment | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 2,049 | 2,028 |
North American Limited-Service Segment | Total segment | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 667 | 608 |
International Segment | Total segment | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | $520 | $445 |
Business_Segments_Net_Income_L
Business Segments - Net Income (Loss) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Interest expense and interest income | ($25) | ($28) |
Provision for income taxes | -59 | -65 |
Net income | 172 | 136 |
Total segment | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Segment financial results | 311 | 289 |
Other unallocated corporate | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Segment financial results | -55 | -60 |
North American Full-Service Segment | Total segment | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Segment financial results | 131 | 133 |
North American Limited-Service Segment | Total segment | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Segment financial results | 115 | 106 |
International Segment | Total segment | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Segment financial results | $65 | $50 |
Business_Segments_Goodwill_Det
Business Segments - Goodwill (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Goodwill, gross | $928 | $928 |
Accumulated impairment losses | -54 | -54 |
Goodwill | 874 | 874 |
Reclassifications | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill | ' | 0 |
North American Full-Service Segment | Total segment | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill, gross | 392 | 335 |
Accumulated impairment losses | 0 | 0 |
Goodwill | 392 | 335 |
North American Full-Service Segment | Reclassifications | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill | ' | 57 |
North American Limited-Service Segment | Total segment | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill, gross | 125 | 125 |
Accumulated impairment losses | -54 | -54 |
Goodwill | 71 | 71 |
North American Limited-Service Segment | Reclassifications | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill | ' | 0 |
International Segment | Total segment | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill, gross | 411 | 298 |
Accumulated impairment losses | 0 | 0 |
Goodwill | 411 | 298 |
International Segment | Reclassifications | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill | ' | 113 |
Former Luxury Segment | Total segment | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill, gross | 0 | 170 |
Accumulated impairment losses | 0 | 0 |
Goodwill | 0 | 170 |
Former Luxury Segment | Reclassifications | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Goodwill | ' | ($170) |
Acquisitions_and_Dispositions_
Acquisitions and Dispositions - Acquisitions (Detail) | 3 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Apr. 02, 2014 | Apr. 02, 2014 |
USD ($) | USD ($) | Protea Hospitality Holdings | Protea Hospitality Holdings | |
Subsequent Event | Subsequent Event | |||
USD ($) | ZAR | |||
room | ||||
country | ||||
brand | ||||
hotel | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Cash paid for acquisition | ' | ' | $193 | 2,046 |
Intangible assets including goodwill | ' | ' | 183 | 1,931 |
Tangible assets | ' | ' | 10 | 115 |
Protea escrow deposit | $192 | $0 | ' | ' |
Number of hotels acquired | ' | ' | 100 | 100 |
Number of hotel rooms acquired | ' | ' | 10,000 | 10,000 |
Number of hotel brands | ' | ' | 3 | 3 |
Number of countries in which entity operates | ' | ' | 7 | 7 |
Percent of hotel rooms managed | ' | ' | 45.00% | 45.00% |
Percent of hotel rooms franchised | ' | ' | 39.00% | 39.00% |
Percent of hotel rooms leased | ' | ' | 16.00% | 16.00% |
Acquisitions_and_Dispositions_1
Acquisitions and Dispositions - Dispositions (Details) | 3 Months Ended | 18 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Mar. 31, 2014 |
USD ($) | USD ($) | International Segment | International Segment | Other unallocated corporate | Other unallocated corporate | Other unallocated corporate | |
Right to Acquire Landlord's Interest in Real Estate Property and Attached Assets | Right to Acquire Landlord's Interest in Real Estate Property and Attached Assets | London EDITION Hotel | Forecast | Depreciation and Amortization | |||
USD ($) | EUR (€) | USD ($) | EDITION Hotels | EDITION Hotels | |||
USD ($) | USD ($) | ||||||
hotel | |||||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of property | $292 | $0 | ' | ' | $230 | ' | ' |
Number of hotels | ' | ' | ' | ' | ' | 3 | ' |
Impairment of long-lived assets | ' | ' | ' | ' | ' | ' | 10 |
Expected proceeds from sale of property | ' | ' | ' | ' | ' | 816 | ' |
Assets, sold | ' | ' | 106 | 77 | ' | ' | ' |
Liabilities, sold | ' | ' | 48 | 35 | ' | ' | ' |
Cash proceeds from sale of rights to acquire property and attached assets | ' | ' | 62 | 45 | ' | ' | ' |
Noncash proceeds from sale of rights to acquire property and attached assets | ' | ' | $45 | € 33 | ' | ' | ' |