Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 07, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '8-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
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 Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 294,823,291 | ' |
Entity Public Float | ' | ' | $9,242,186,286 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | |||
REVENUES | ' | ' | ' | |||
Base management fees (1) | $621 | [1] | $581 | [1] | $602 | [1] |
Franchise fees (1) | 666 | [1] | 607 | [1] | 506 | [1] |
Incentive management fees (1) | 256 | [1] | 232 | [1] | 195 | [1] |
Owned, leased, corporate housing, and other revenue (1) | 950 | [1] | 989 | [1] | 1,083 | [1] |
Timeshare sales and services | 0 | 0 | 1,088 | |||
Cost reimbursements (1) | 10,291 | [1] | 9,405 | [1] | 8,843 | [1] |
Revenues | 12,784 | 11,814 | 12,317 | |||
OPERATING COSTS AND EXPENSES | ' | ' | ' | |||
Owned, leased, and corporate housing-direct | 779 | 824 | 943 | |||
Timeshare-direct | 0 | 0 | 929 | |||
Timeshare strategy-impairment charges | 0 | 0 | 324 | |||
Reimbursed costs (1) | 10,291 | [1] | 9,405 | [1] | 8,843 | [1] |
General, administrative, and other (1) | 726 | [1] | 645 | [1] | 752 | [1] |
Costs and Expenses, Total | 11,796 | 10,874 | 11,791 | |||
OPERATING INCOME | 988 | 940 | 526 | |||
Gains (losses) and other income (1) | 11 | [1] | 42 | [1] | -7 | [1] |
Interest expense (1) | -120 | [1] | -137 | [1] | -164 | [1] |
Interest income (1) | 23 | [1] | 17 | [1] | 14 | [1] |
Equity in losses (1) | -5 | [1] | -13 | [1] | -13 | [1] |
INCOME BEFORE INCOME TAXES | 897 | 849 | 356 | |||
Provision for income taxes | -271 | -278 | -158 | |||
NET INCOME | $626 | $571 | $198 | |||
EARNINGS PER SHARE-Basic | ' | ' | ' | |||
Earnings per share (in USD per share) | $2.05 | $1.77 | $0.56 | |||
EARNINGS PER SHARE-Diluted | ' | ' | ' | |||
Earnings per share (in USD per share) | $2 | $1.72 | $0.55 | |||
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $626 | $571 | $198 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | 1 | 4 | -31 |
Other derivative instrument adjustments, net of tax | 0 | -2 | -20 |
Unrealized gains (losses) on available-for-sale securities, net of tax | 5 | 0 | -3 |
Reclassification of (gains) losses, net of tax | -6 | 2 | 8 |
Total other comprehensive income (loss), net of tax | 0 | 4 | -46 |
Comprehensive income | $626 | $575 | $152 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | ||
In Millions, unless otherwise specified | ||||
Current assets | ' | ' | ||
Cash and equivalents | $126 | $88 | ||
Accounts and notes receivable, net (1) | 1,081 | [1] | 1,028 | [1] |
Current deferred taxes, net | 252 | 280 | ||
Prepaid expenses | 67 | 57 | ||
Other | 27 | 22 | ||
Assets held for sale | 350 | 0 | ||
Assets, Current, Total | 1,903 | 1,475 | ||
Property and equipment | 1,543 | 1,539 | ||
Intangible assets | ' | ' | ||
Goodwill | 874 | 874 | ||
Contract acquisition costs and other (1) | 1,131 | [1] | 1,115 | [1] |
Goodwill And Intangible Assets, Net, Total | 2,005 | 1,989 | ||
Equity and cost method investments (1) | 222 | [1] | 216 | [1] |
Notes receivable, net (1) | 142 | [1] | 180 | [1] |
Deferred taxes, net (1) | 647 | [1] | 676 | [1] |
Other (1) | 332 | [1] | 267 | [1] |
Total Assets | 6,794 | 6,342 | ||
Current liabilities | ' | ' | ||
Current portion of long-term debt | 6 | 407 | ||
Accounts payable (1) | 557 | [1] | 569 | [1] |
Accrued payroll and benefits | 817 | 745 | ||
Liability for guest loyalty programs | 666 | 593 | ||
Other (1) | 629 | [1] | 459 | [1] |
Liabilities, Current, Total | 2,675 | 2,773 | ||
Long-term debt | 3,147 | 2,528 | ||
Liability for guest loyalty programs | 1,475 | 1,428 | ||
Other long-term liabilities (1) | 912 | [1] | 898 | [1] |
Shareholders’ deficit | ' | ' | ||
Class A Common Stock | 5 | 5 | ||
Additional paid-in-capital | 2,716 | 2,585 | ||
Retained earnings | 3,837 | 3,509 | ||
Treasury stock, at cost | -7,929 | -7,340 | ||
Accumulated other comprehensive loss | -44 | -44 | ||
Stockholders' Deficit | -1,415 | -1,285 | ||
Liabilities and Deficit, Total | $6,794 | $6,342 | ||
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
OPERATING ACTIVITIES | ' | ' | ' |
Net income | $626 | $571 | $198 |
Adjustments to reconcile to cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 127 | 102 | 144 |
Income taxes | 73 | 224 | 113 |
Timeshare activity, net | 0 | 0 | 175 |
Timeshare strategy-impairment charges | 0 | 0 | 324 |
Liability for guest loyalty program | 99 | 60 | 78 |
Restructuring costs, net | 0 | 0 | -5 |
Working capital changes and other | 215 | 32 | 62 |
Net cash provided by operating activities | 1,140 | 989 | 1,089 |
INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -404 | -437 | -183 |
Dispositions | 0 | 65 | 20 |
Loan advances | -7 | -17 | -26 |
Loan collections | 77 | 155 | 110 |
Equity and cost method investments | -16 | -15 | -83 |
Contract acquisition costs | -61 | -253 | -74 |
Investment in debt security | -65 | 0 | 0 |
Other | -43 | -83 | -11 |
Net cash used in investing activities | -519 | -585 | -247 |
FINANCING ACTIVITIES | ' | ' | ' |
Commercial paper/Credit Facility, net | 311 | 184 | 325 |
Issuance of long-term debt | 345 | 936 | 118 |
Repayment of long-term debt | -407 | -370 | -264 |
Issuance of Class A Common Stock | 199 | 179 | 124 |
Dividends paid | -196 | -191 | -134 |
Purchase of treasury stock | -834 | -1,145 | -1,425 |
Other | -1 | -11 | 11 |
Net cash used in financing activities | -583 | -418 | -1,245 |
INCREASE (DECREASE) IN CASH AND EQUIVALENTS | 38 | -14 | -403 |
CASH AND EQUIVALENTS, beginning of period | 88 | 102 | 505 |
CASH AND EQUIVALENTS, end of period | $126 | $88 | $102 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ (DEFICIT) EQUITY (USD $) | Total | Class A Common Stock | Additional Paid-in-Capital | Retained Earnings | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) | |
In Millions, unless otherwise specified | |||||||
Beginning balance at Dec. 31, 2010 | $1,585 | $5 | $3,644 | $3,286 | ($5,348) | ($2) | |
Beginning balance, shares at Dec. 31, 2010 | 366.9 | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |
Net income | 198 | 0 | 0 | 198 | 0 | 0 | |
Other comprehensive loss | -24 | 0 | 0 | 0 | 0 | -24 | |
Other comprehensive income (loss) | -46 | ' | ' | ' | ' | ' | |
Dividends | -135 | 0 | 0 | -135 | 0 | 0 | |
Employee stock plan issuance | 182 | 0 | 9 | -137 | 310 | 0 | |
Employee stock plan issuance, shares | 9.5 | ' | ' | ' | ' | ' | |
Purchase of treasury stock | -1,425 | 0 | 0 | 0 | -1,425 | 0 | |
Purchase of treasury stock, shares | -43.4 | ' | ' | ' | ' | ' | |
Spin-off of MVW adjustment (1) | [1] | -1,162 | 0 | -1,140 | 0 | 0 | -22 |
Ending balance at Dec. 30, 2011 | -781 | 5 | 2,513 | 3,212 | -6,463 | -48 | |
Ending balance, shares at Dec. 30, 2011 | 333 | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |
Net income | 571 | 0 | 0 | 571 | 0 | 0 | |
Other comprehensive income (loss) | 4 | 0 | 0 | 0 | 0 | 4 | |
Dividends | -158 | 0 | 0 | -158 | 0 | 0 | |
Employee stock plan issuance | 236 | 0 | 69 | -116 | 283 | 0 | |
Employee stock plan issuance, shares | 9.1 | ' | ' | ' | ' | ' | |
Purchase of treasury stock | -1,160 | 0 | 0 | 0 | -1,160 | 0 | |
Purchase of treasury stock, shares | -31.2 | ' | ' | ' | ' | ' | |
Spin-off of MVW adjustment (1) | [1] | 3 | 0 | 3 | 0 | 0 | 0 |
Ending balance at Dec. 28, 2012 | -1,285 | 5 | 2,585 | 3,509 | -7,340 | -44 | |
Ending balance, shares at Dec. 28, 2012 | 310.9 | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |
Net income | 626 | 0 | 0 | 626 | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | |
Dividends | -195 | 0 | 0 | -195 | 0 | 0 | |
Employee stock plan issuance | 269 | 0 | 131 | -103 | 241 | 0 | |
Employee stock plan issuance, shares | 7.1 | ' | ' | ' | ' | ' | |
Purchase of treasury stock | -830 | 0 | 0 | 0 | -830 | 0 | |
Purchase of treasury stock, shares | -20 | ' | ' | ' | ' | ' | |
Ending balance at Dec. 31, 2013 | ($1,415) | $5 | $2,716 | $3,837 | ($7,929) | ($44) | |
Ending balance, shares at Dec. 31, 2013 | 298 | ' | ' | ' | ' | ' | |
[1] | The abbreviation MVW means Marriott Vacations Worldwide Corporation. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Basis of Presentation | |||||||||||
The 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 Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Statements of Income as our “Income Statements,” (iii) our 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 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 recast the business segment information originally included in our 2013 Form 10-K filed on February 20, 2014 to be consistent with the presentation of reportable segments in our Quarterly Report on Form 10-Q for the period ended March 31, 2014. See Footnote No. 14, "Business Segments." | |||||||||||
On November 21, 2011 ("the spin-off date"), we completed a spin-off of our timeshare operations and timeshare development business through a special tax-free dividend to our shareholders of all of the issued and outstanding common stock (the "spin-off") of our wholly owned subsidiary Marriott Vacations Worldwide Corporation ("MVW"). Because of our significant continuing involvement in MVW operations after the spin-off (by virtue of license and other agreements between us and MVW), we continue to include the historical financial results before the spin-off date of our former Timeshare segment in our historical financial results as a component of continuing operations. See Footnote No. 15, "Spin-off," for more information on the spin-off. | |||||||||||
Preparation of financial statements that conform with U.S. generally accepted accounting principles ("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. | |||||||||||
The accompanying Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position at fiscal year-end 2013 and fiscal year-end 2012 and the results of our operations and cash flows for fiscal years 2013, 2012, and 2011. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements. We also reclassified depreciation that third party owners reimburse to us which is included in the "Reimbursed costs" caption of our Income Statements, from the "Depreciation and amortization" caption to the "Working capital changes and other" caption of the Cash Flow Statement for all prior years presented to conform to our 2013 presentation. | |||||||||||
Fiscal Year | |||||||||||
Beginning with our 2013 fiscal year, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 fiscal year began on December 29, 2012 (the day after the end of the 2012 fiscal year) and ended on December 31, 2013. Historically, our fiscal year was a 52-53 week fiscal year that ended on the Friday nearest to December 31. As a result, our 2013 fiscal year had 4 more days than the 2012 and 2011 fiscal years. We have not restated and do not plan to restate historical results. | |||||||||||
The table below shows each completed fiscal year we refer to in this report, the date the fiscal year ended, and the number of days in that fiscal year: | |||||||||||
Fiscal Year | Fiscal Year-End Date | Number of Days | Fiscal Year | Fiscal Year-End Date | Number of Days | ||||||
2013 | December 31, 2013 | 368 | 2008 | January 2, 2009 | 371 | ||||||
2012 | December 28, 2012 | 364 | 2007 | December 28, 2007 | 364 | ||||||
2011 | December 30, 2011 | 364 | 2006 | December 29, 2006 | 364 | ||||||
2010 | December 31, 2010 | 364 | 2005 | December 30, 2005 | 364 | ||||||
2009 | January 1, 2010 | 364 | 2004 | December 31, 2004 | 364 | ||||||
Beginning in 2014, our fiscal years will be the same as the corresponding calendar year (each beginning on January 1 and ending on December 31, and containing 365 or 366 days). | |||||||||||
Revenue Recognition | |||||||||||
Our revenues include: (1) base management and incentive management fees; (2) franchise fees (including licensing fees from MVW after the spin-off of $61 million for 2013, $61 million for 2012 and $4 million for 2011); (3) revenues from lodging properties we own or lease; and (4) cost reimbursements. Management fees are typically composed of a base fee, which is a percentage of the revenues of hotels, and an incentive fee, which is generally based on hotel profitability. Franchise fees are typically composed of initial application fees and continuing royalties generated from our franchise programs, which permit the hotel owners and operators to use certain of our brand names. Cost reimbursements include direct and indirect costs that are reimbursed to us by properties that we manage, franchise, or license. | |||||||||||
Base Management and Incentive Management Fees: We recognize base management fees as revenue when we earn them under the contracts. In interim periods and at year-end, we recognize incentive management fees that would be due as if the contracts were to terminate at that date, exclusive of any termination fees payable or receivable by us. | |||||||||||
Franchise Fee and License Fee Revenue: We recognize franchise fees and license fees as revenue in each accounting period as we earn those fees from the franchisee or licensee under the contracts. | |||||||||||
Owned and Leased Units: We recognize room sales and revenues from other guest services for our owned and leased units when rooms are occupied and when we have rendered the services. | |||||||||||
Cost Reimbursements: We recognize cost reimbursements from managed, franchised, and licensed properties when we incur the related reimbursable costs. These costs primarily consist of payroll and related expenses at managed properties where we are the employer and also include certain operational and administrative costs as provided for in our contracts with the owners. As these costs have no added markup, the revenue and related expense have no impact on either our operating or net income. | |||||||||||
Other Revenue: Includes other third-party licensing fees, branding fees for third-party residential sales and credit card licensing, land rental income, and other revenue. | |||||||||||
Timeshare Revenue Recognition Before the 2011 Spin-off: For periods before the spin-off, our revenues also included revenue from our former Timeshare segment including cost reimbursements revenue and timeshare sales and services revenue, the latter of which included the following types of revenue: | |||||||||||
Timeshare and Fractional Intervals and Condominiums: Before the spin-off, we recognized sales when: (1) we had received a minimum of 10 percent of the purchase price; (2) the purchaser’s period to cancel for a refund had expired; (3) we deemed the receivables to be collectible; and (4) we had attained certain minimum sales and construction levels. We deferred all revenue using the deposit method for sales that did not meet all four of these criteria. For sales that did not qualify for full revenue recognition as the project had progressed beyond the preliminary stages but had not yet reached completion, we deferred all revenue and profit which we then recognized in earnings using the percentage of completion method. | |||||||||||
Timeshare Points-Based Use System Revenue: Before the spin-off, we recognized sales under our points-based use system when the criteria noted in the “Timeshare and Fractional Intervals and Condominiums” caption were met, as we considered these sales to be sales of real estate. | |||||||||||
Timeshare Residential (Stand-Alone Structures): Before the spin-off, we recognized sales under the full accrual method of accounting when we received our proceeds and transferred title at settlement. | |||||||||||
Timeshare Interest Income: Before the spin-off, we reflected interest income from “Loans to timeshare owners” in our 2011 Income Statement in the "Timeshare sales and services" revenue caption of $143 million, consisting of $116 million from securitized loans and $27 million from non-securitized loans. | |||||||||||
Ground Leases | |||||||||||
We are the lessee of land under long-term operating leases that include scheduled increases in minimum rents. We recognize these scheduled rent increases on a straight-line basis over the initial lease term. | |||||||||||
Real Estate Sales | |||||||||||
We reduce gains on sales of real estate by the maximum exposure to loss if we have continuing involvement with the property and do not transfer substantially all of the risks and rewards of ownership. In sales transactions where we retain a management contract, the terms and conditions of the management contract are generally comparable to the terms and conditions of the management contracts obtained directly with third-party owners in competitive bid processes. | |||||||||||
Profit Sharing Plan | |||||||||||
We contribute to a profit sharing plan for the benefit of employees meeting certain eligibility requirements who elect to participate in the plan. Participating employees specify the percentage of salary deferred. We recognized compensation costs from profit sharing of $75 million in 2013, $69 million in 2012, and $91 million in 2011. | |||||||||||
Self-Insurance Programs | |||||||||||
We self-insure for certain levels of property, liability, workers’ compensation and employee medical coverage. We accrue estimated costs of these self-insurance programs at the present value of projected settlements for known and incurred but not reported claims. We use a discount rate of 2.0 percent to determine the present value of the projected settlements, which we consider to be reasonable given our history of settled claims, including payment patterns and the fixed nature of the individual settlements. | |||||||||||
We are subject to a variety of assessments for our insurance activities, including those by state guaranty funds and workers’ compensation second-injury funds. We record our liabilities for these assessments in our Balance Sheets within the other current liabilities line. These liabilities, which are not discounted, totaled $5 million at year-end 2013 and $5 million at year-end 2012. We expect to pay the $5 million liability for assessments as of year-end 2013 by the end of 2014. | |||||||||||
Our Rewards Programs | |||||||||||
Marriott Rewards and The Ritz-Carlton Rewards are our frequent guest loyalty programs. Program members earn points based on the money they spend at our lodging operations, purchases of timeshare interval, fractional ownership, and residential products (through MVW for periods after the spin-off date) and, to a lesser degree, through participation in affiliated partners’ programs, such as those offered by car rental, and credit card companies. Members can redeem points, which we track on their behalf, for stays at most of our lodging operations, airline tickets, airline frequent flyer program miles, rental cars, and a variety of other awards. Points cannot be redeemed for cash. We provide Marriott Rewards and The Ritz-Carlton Rewards as marketing programs to participating properties, with the objective of operating the programs on a break-even basis to us. We sell the points for amounts that we expect will, in the aggregate, equal the costs of point redemptions and program operating costs over time. | |||||||||||
We estimate the value of the future redemption obligation using statistical formulas that project timing of future point redemption based on historical levels, including an estimate of the “breakage” for points that members will never redeem, and an estimate of the points that members will eventually redeem. These judgment factors determine our rewards programs' required liability for outstanding points. That liability totaled $2,141 million at year-end 2013 and $2,021 million at year-end 2012. A ten percent reduction in the estimate of “breakage” would have increased the estimated year-end 2013 liability by $139 million. | |||||||||||
We defer revenue we receive from managed, franchised, and Marriott-owned/leased hotels and program partners. Our management and franchise agreements require that properties reimburse us currently for the costs of operating the rewards programs, including marketing, promotion, communication with, and performing member services for rewards program members. Due to the requirement that properties reimburse us for program operating costs as incurred, we recognize the related cost reimbursements revenues from properties for our rewards programs when we incur and expense such costs. We recognize the component of revenue from program partners that corresponds to program maintenance services over the expected life of the points awarded. When points are redeemed we recognize the amounts we previously deferred as revenue and the corresponding expense relating to the costs of the awards redeemed. | |||||||||||
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, as described below in this footnote under the heading "Fair Value Measurements." We generally base our calculation of the estimated fair value of a guarantee on the income approach or the market approach, depending on the type of guarantee. For the income approach, we use internally developed discounted cash flow and Monte Carlo simulation models that include the following assumptions, among others: projections of revenues and expenses and related cash flows based on assumed growth rates and demand trends; historical volatility of projected performance; the guaranteed obligations; and applicable discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. For the market approach, we use internal analyses based primarily on market comparable data and our assumptions about market capitalization rates, credit spreads, growth rates, and inflation. | |||||||||||
The offsetting entry for the guarantee liability depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. In most cases, when we do not forecast any funding, we amortize the liability into income on a straight-line basis over the remaining term of the guarantee. On a quarterly basis, we evaluate all material estimated liabilities based on the operating results and the terms of the guarantee. If we conclude that it is probable that we will be required to fund a greater amount than previously estimated, we record a loss unless the advance would be recoverable in the form of a loan. | |||||||||||
Rebates and Allowances | |||||||||||
We participate in various vendor rebate and allowance arrangements as a manager of hotel properties. Three types of programs that are common in the hotel industry are sometimes referred to as “rebates” or “allowances,” including unrestricted rebates, marketing (restricted) rebates, and sponsorships. These arrangements have the primary business purposes of securing favorable pricing for our hotel owners for various products and services and enhancing resources for promotional campaigns that certain vendors co-sponsor. More specifically, unrestricted rebates are funds returned to the buyer, generally based on volumes or quantities of goods purchased. Marketing (restricted) allowances are funds allocated by vendor agreements for certain marketing or other joint promotional initiatives. Sponsorships are funds paid by vendors, generally used by the vendor to gain exposure at meetings and events, which we account for as a reduction of the cost of the event. | |||||||||||
We account for rebates and allowances as adjustments of the prices of the vendors’ products and services. We show vendor costs as reimbursed costs and the reimbursement of those costs to us as cost reimbursements revenue; and accordingly we reflect rebates as a reduction of these line items. | |||||||||||
Cash and Equivalents | |||||||||||
We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents. | |||||||||||
Assets Held for Sale | |||||||||||
We consider properties to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and we expect the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given its current market value. Upon designation of a property as an asset held for sale, we record the property's value at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and we cease depreciation. | |||||||||||
At year-end 2013, we had $350 million classified as "Assets held for sale" and $61 million in liabilities held for sale classified as "Other current liabilities" on our Balance Sheet. See Footnote No. 7, "Acquisitions and Dispositions" for additional information on these planned dispositions. At year-end 2012, we had no assets held for sale and no liabilities held for sale. | |||||||||||
Accounts Receivable | |||||||||||
Our accounts receivable primarily consist of amounts due from hotel owners with whom we have management and franchise agreements and include reimbursements of costs we incurred on behalf of managed and franchised properties. We generally collect these receivables within 30 days. We record an accounts receivable reserve when losses are probable, based on an assessment of historical collection activity and current business conditions. Our accounts receivable reserve was $43 million at year-end 2013 and $32 million at year-end 2012. | |||||||||||
Loan Loss Reserves | |||||||||||
Senior, Mezzanine, and Other Loans | |||||||||||
We may make loans to owners of hotels that we operate or franchise, generally to facilitate the development of a hotel and sometimes to facilitate brand programs or initiatives. We expect the owners to repay the loans in accordance with the loan agreements, or earlier as the hotels mature and capital markets permit. We use metrics such as loan-to-value ratios and debt service coverage, and other information about collateral and from third party rating agencies to assess the credit quality of the loan receivable, both upon entering into the loan agreement and on an ongoing basis as applicable. | |||||||||||
On a regular basis, we individually assess all of these loans for impairment. We use internally generated cash flow projections to determine if we expect the loans to be repaid under the terms of the loan agreements. If we conclude that it is probable a borrower will not repay a loan in accordance with its terms, we consider the loan impaired and begin recognizing interest income on a cash basis. To measure impairment, we calculate the present value of expected future cash flows discounted at the loan’s original effective interest rate or the estimated fair value of the collateral. If the present value or the estimated collateral is less than the carrying value of the loan receivable, we establish a specific impairment reserve for the difference. | |||||||||||
If it is likely that a loan will not be collected based on financial or other business indicators, including our historical experience, our policy is to charge off the loan in the quarter in which we deem it uncollectible. | |||||||||||
Goodwill | |||||||||||
We assess goodwill for potential impairment at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. In evaluating goodwill for impairment, we first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing of the goodwill assigned to the reporting unit is required. However, if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we perform a two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment we will recognize, if any. At year-end 2013 and year-end 2012, we concluded that it was not more likely than not that the fair value of any reporting unit was less than its carrying value. | |||||||||||
In the first step of the two-step goodwill impairment test, we compare the estimated fair value of the reporting unit with its carrying value. If the estimated fair value of the reporting unit exceeds its carrying amount, no further analysis is needed. If, however, the estimated fair value of the reporting unit is less than its carrying amount, we proceed to the second step and calculate the implied fair value of the reporting unit goodwill to determine whether any impairment is required. We calculate the implied fair value of the reporting unit goodwill by allocating the estimated fair value of the reporting unit to all of the unit's assets and liabilities as if the unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in the amount of that excess. In allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit, we use industry and market data, as well as knowledge of the industry and our past experience. | |||||||||||
We calculate the estimated fair value of a reporting unit using the income approach. For the income approach, we use internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and macro general economic condition projections, and our expectations. | |||||||||||
We have had no goodwill impairment charges for the last three fiscal years, and as of the date of each of the most recent detailed tests, the estimated fair value of each of our reporting units exceeded its respective carrying amount by more than 100 percent based on our models and assumptions. | |||||||||||
For additional information on goodwill, including the amounts of goodwill by segment, see Footnote No. 14, “Business Segments.” | |||||||||||
Investments | |||||||||||
We consolidate entities that we control. We account for investments in joint ventures using the equity method of accounting when we exercise significant influence over the venture. If we do not exercise significant influence, we account for the investment using the cost method of accounting. We account for investments in limited partnerships and limited liability companies using the equity method of accounting when we own more than a minimal investment. Our ownership interest in these equity method investments varies generally from 10 percent to 49 percent. See Footnote No. 4, "Fair Value of Financial Instruments" for additional information on available-for-sale securities. When we sell available-for-sale securities, we determine the cost basis of the securities sold using specific identification, meaning that we track our securities individually. | |||||||||||
Valuation of Intangibles and Long-Lived Assets | |||||||||||
We test intangibles and long-lived asset groups for recoverability when changes in circumstances indicate that we may not be able to recover the carrying value; for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. We also test recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and we expect to complete the plan within a year. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect the asset group will generate. If the comparison indicates that we will not be able to recover the carrying value of an asset group, we recognize an impairment loss for the amount by which the carrying value exceeds the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life. | |||||||||||
We calculate the estimated fair value of an intangible asset or asset group using the income approach or the market approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation. | |||||||||||
For information on impairment losses that we recorded in 2011 for long-lived assets, see Footnote No. 15, “Spin-off.” | |||||||||||
Valuation of Investments in Ventures | |||||||||||
We may hold a minority equity interest in ventures established to develop or acquire and own hotel properties. These ventures are generally limited liability companies or limited partnerships. | |||||||||||
We evaluate an investment in a venture for impairment when circumstances indicate that we may not be able to recover the carrying value, for example due to loan defaults, significant under performance relative to historical or projected operating performance, or significant negative industry or economic trends. | |||||||||||
We impair investments we account for using the equity and cost methods of accounting when we determine that there has been an “other-than-temporary” decline in the venture’s estimated fair value compared to its carrying value. Additionally, a venture's commitment to a plan to sell some or all of its assets could cause us to evaluate the recoverability of the venture's individual long-lived assets and possibly the venture itself. | |||||||||||
We calculate the estimated fair value of an investment in a venture using either a market approach or an income approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation. | |||||||||||
For information on an impairment loss that we recorded in 2012 for a cost method investment, see Footnote No. 4, “Fair Value of Financial Instruments.” | |||||||||||
Fair Value Measurements | |||||||||||
We have various financial instruments we must measure at fair value on a recurring basis, including certain marketable securities and derivatives. See Footnote No. 4, “Fair Value of Financial Instruments,” for further information. We also apply the provisions of fair value measurement to various nonrecurring measurements for our financial and nonfinancial assets and liabilities. | |||||||||||
Applicable accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy: | |||||||||||
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. | |||||||||||
Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||
Level 3 includes unobservable inputs that reflect our assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data. | |||||||||||
Derivative Instruments | |||||||||||
We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if, at inception, we expect the derivative to be highly effective in offsetting the underlying hedged cash flows or fair value and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying cash flow hedges, we record changes in fair value in other comprehensive income (“OCI”). We release the derivative’s gain or loss from OCI to match the timing of the underlying hedged items’ effect on earnings. | |||||||||||
We review the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, we release gains and losses from OCI based on the timing of the underlying cash flows or revenue recognized, unless the termination results from the failure of the intended transaction to occur in the expected time frame. Such untimely transactions require us to immediately recognize in earnings the gains and/or losses that we previously recorded in OCI. | |||||||||||
Changes in interest rates, currency exchange rates, and equity securities expose us to market risk. We manage our exposure to these risks by monitoring available financing alternatives, as well as through development and application of credit granting policies. We also use derivative instruments, including cash flow hedges, net investment in non-U.S. operations hedges, fair value hedges, and other derivative instruments, as part of our overall strategy to manage our exposure to market risks. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. See Footnote No. 4, “Fair Value of Financial Instruments,” for additional information. | |||||||||||
Non-U.S. Operations | |||||||||||
The U.S. dollar is the functional currency of our consolidated and unconsolidated entities operating in the United States. The functional currency of our consolidated and unconsolidated entities operating outside of the United States is generally the primary currency of the economic environment in which the entity primarily generates and expends cash. We translate the financial statements of consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars, and we do the same, as needed, for unconsolidated entities whose functional currency is not the U.S. dollar. We translate assets and liabilities at the exchange rate in effect as of the financial statement date, and translate income statement accounts using the weighted average exchange rate for the period. We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders’ equity. We report gains and losses from currency exchange rate changes for intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from non-U.S. currency transactions, currently in operating costs and expenses, and those amounted to losses of $5 million in 2013, $3 million in 2012, and $7 million in 2011. Gains and other income attributable to currency translation adjustment losses, net of gains, from the sale or complete or substantially complete liquidation of investments was zero for 2013 and $1 million for 2012. Gains and other income attributable to currency translation adjustment gains, net of losses, from the sale or complete or substantially complete liquidation of investments was $2 million for 2011. | |||||||||||
Legal Contingencies | |||||||||||
We are subject to various legal proceedings and claims, the outcomes of which are uncertain. We record an accrual for legal contingencies when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the loss. In making such determinations we evaluate, among other things, the probability of an unfavorable outcome and, when we believe it probable that a liability has been incurred, our ability to make a reasonable estimate of the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances. | |||||||||||
Income Taxes | |||||||||||
We record the amounts of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events we have recognized in our Financial Statements or tax returns, using judgment in assessing future profitability and the likely future tax consequences of those events. We base our estimates of deferred tax assets and liabilities on current tax laws, rates and interpretations, and, in certain cases, business plans and other expectations about future outcomes. We develop our estimates of future profitability based on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. | |||||||||||
Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of our deferred tax liabilities or the valuations of our deferred tax assets over time. Our accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. | |||||||||||
For tax positions we have taken or expect to take in a tax return, we apply a more likely than not threshold, under which we must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, in order to continue to recognize the benefit. In determining our provision for income taxes, we use judgment, reflecting our estimates and assumptions, in applying the more likely than not threshold. We recognize accrued interest and penalties for our unrecognized tax benefits as a component of tax expense. | |||||||||||
For information about income taxes and deferred tax assets and liabilities, see Footnote No. 2, “Income Taxes.” | |||||||||||
New Accounting Standards | |||||||||||
We do not expect that accounting standard updates issued to date and that are effective after December 31, 2013 will have a material effect on our Financial Statements. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
INCOME TAXES | |||||||||||||
Our provision for income taxes for the last three fiscal years consists of: | |||||||||||||
($ in millions) | 2013 | 2012 | 2011 | ||||||||||
Current | -U.S. Federal | $ | (139 | ) | $ | 6 | $ | 53 | |||||
-U.S. State | (17 | ) | (8 | ) | — | ||||||||
-Non-U.S. | (44 | ) | (34 | ) | (55 | ) | |||||||
(200 | ) | (36 | ) | (2 | ) | ||||||||
Deferred | -U.S. Federal | (68 | ) | (211 | ) | (116 | ) | ||||||
-U.S. State | (10 | ) | (30 | ) | (10 | ) | |||||||
-Non-U.S. | 7 | (1 | ) | (30 | ) | ||||||||
(71 | ) | (242 | ) | (156 | ) | ||||||||
$ | (271 | ) | $ | (278 | ) | $ | (158 | ) | |||||
Our current tax provision does not reflect the following benefits attributable to us for the vesting or exercise of employee share-based awards: $66 million in 2013, $76 million in 2012, and $55 million in 2011. The preceding table includes tax credits of $3 million in 2013, $3 million in 2012, and $4 million in 2011. We had a tax provision applicable to other comprehensive income of $2 million in 2013 and $5 million in 2012, and a tax benefit applicable to other comprehensive loss of $14 million in 2011. | |||||||||||||
We have made no provision for U.S. income taxes or additional non-U.S. taxes on the cumulative unremitted earnings of non-U.S. subsidiaries ($739 million as of year-end 2013) because we consider these earnings to be indefinitely reinvested. These earnings could become subject to additional taxes if the non-U.S. subsidiaries dividend or loan those earnings to us or to a U.S. affiliate or if we sell our interests in the non-U.S. subsidiaries. We cannot practically estimate the amount of additional taxes that might be payable on the unremitted earnings. | |||||||||||||
We file income tax returns, including returns for our subsidiaries, in various jurisdictions around the world. We conduct business in countries that grant “holidays” from income taxes for 10 to 30 year periods. These holidays expire through 2034. Without these tax “holidays,” we would have incurred the following aggregate income taxes and related earnings per share impacts: $1 million (less than $0.01 per diluted share) in 2013; less than $1 million (less than $0.01 per diluted share) in 2012; and $1 million (less than $0.01 per diluted share) in 2011. | |||||||||||||
In 2011, we recorded an income tax expense of $34 million to write off certain deferred tax assets that we transferred to MVW in conjunction with the spin-off of our timeshare operations and timeshare development business. We impaired these assets because we considered it "more likely than not" that MVW will not be able to realize the value of those deferred tax assets. See Footnote No. 15, “Spin-off” for more information on the transaction. | |||||||||||||
Unrecognized Tax Benefits | |||||||||||||
The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2011 to the end of 2013: | |||||||||||||
($ in millions) | Amount | ||||||||||||
Unrecognized tax benefit at beginning of 2011 | $ | 39 | |||||||||||
Change attributable to tax positions taken during a prior period | (10 | ) | |||||||||||
Change attributable to withdrawal of tax positions previously taken or expected to be taken | (6 | ) | |||||||||||
Change attributable to tax positions taken during the current period | 19 | ||||||||||||
Decrease attributable to lapse of statute of limitations | (3 | ) | |||||||||||
Unrecognized tax benefit at year-end of 2011 | 39 | ||||||||||||
Change attributable to tax positions taken during the current period | 12 | ||||||||||||
Decrease attributable to settlements with taxing authorities | (20 | ) | |||||||||||
Decrease attributable to lapse of statute of limitations | (2 | ) | |||||||||||
Unrecognized tax benefit at year-end of 2012 | 29 | ||||||||||||
Change attributable to tax positions taken during the current period | 8 | ||||||||||||
Decrease attributable to settlements with taxing authorities | (2 | ) | |||||||||||
Decrease attributable to lapse of statute of limitations | (1 | ) | |||||||||||
Unrecognized tax benefit at year-end of 2013 | $ | 34 | |||||||||||
These unrecognized tax benefits reflect the following year-over-year changes: (1) a $5 million increase in 2013, primarily due to a U.S. federal tax issue, currently in appeals, offset by a settlement with international taxing authorities; (2) $10 million decrease in 2012, primarily reflecting the changes attributable to settlements with taxing authorities and positions taken during 2012; and (3) no net change in 2011, although 2011 included increases such as positions for our timeshare spin-off, and decreases such as the closing of the 2005-2008 Internal Revenue Service ("IRS") audits, the re-measurement of existing positions, and the lapse of statutes of limitations. | |||||||||||||
Our unrecognized tax benefit balances included $12 million at year-end 2013, $13 million at year-end 2012, and $24 million at year-end 2011 of tax positions that, if recognized, would impact our effective tax rate. | |||||||||||||
The 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, our open tax years under audit are substantially complete while the 2013 tax year audit is currently ongoing. Various foreign, state, and local income tax returns are also under examination by the applicable taxing authorities. It is reasonably possible that we will resolve with taxing authorities an international issue ($5 million) which arose in 2011 related to financing activity and a U.S. federal issue ($21 million), currently in appeals, during the next 12 months for which we have an unrecognized tax balance of $26 million. The U.S. federal amount is offset by a related deferred tax asset. Therefore, the possible resolution of the issue will not have a material impact on our financial statements. | |||||||||||||
Deferred Income Taxes | |||||||||||||
Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as from net operating loss and tax credit carry-forwards. We state those balances at the enacted tax rates we expect will be in effect when we actually pay or recover the taxes. Deferred income tax assets represent amounts available to reduce income taxes we will pay on taxable income in future years. We evaluate our ability to realize these future tax deductions and credits by assessing whether we expect to have sufficient future taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings, and available tax planning strategies to utilize these future deductions and credits. We establish a valuation allowance when we no longer consider it more likely than not that a deferred tax asset will be realized. | |||||||||||||
We had the following total deferred tax assets and liabilities at year-end 2013 and year-end 2012: | |||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | |||||||||||
Deferred tax assets | $ | 926 | $ | 950 | |||||||||
Deferred tax liabilities | (60 | ) | (25 | ) | |||||||||
Net deferred taxes | $ | 866 | $ | 925 | |||||||||
The following table details the composition of our net deferred tax balances at year-end 2013 and year-end 2012: | |||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | |||||||||||
Balance Sheet Caption | |||||||||||||
Current deferred taxes, net | $ | 252 | $ | 280 | |||||||||
Long-term deferred taxes, net | 647 | 676 | |||||||||||
Current liabilities, other | (19 | ) | (13 | ) | |||||||||
Long-term liabilities, other | (14 | ) | (18 | ) | |||||||||
Net deferred taxes | $ | 866 | $ | 925 | |||||||||
The following table shows the tax effect of each type of temporary difference and carry-forward that gave rise to a significant portion of our deferred tax assets and liabilities as of year-end 2013 and year-end 2012: | |||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | |||||||||||
Employee benefits | $ | 340 | $ | 321 | |||||||||
Net operating loss carry-forwards | 293 | 294 | |||||||||||
Tax credits | 273 | 328 | |||||||||||
Reserves | 61 | 63 | |||||||||||
Frequent guest program | 30 | 43 | |||||||||||
Self-insurance | 23 | 19 | |||||||||||
Deferred income | 23 | 4 | |||||||||||
Joint venture interests | (23 | ) | (11 | ) | |||||||||
Property, equipment, and intangible assets | (37 | ) | (14 | ) | |||||||||
Other, net | 48 | 23 | |||||||||||
Deferred taxes | 1,031 | 1,070 | |||||||||||
Less: valuation allowance | (165 | ) | (145 | ) | |||||||||
Net deferred taxes | $ | 866 | $ | 925 | |||||||||
At year-end 2013, we had approximately $40 million of tax credits that expire through 2033 and $233 million of tax credits that do not expire. We recorded $14 million of net operating loss benefits in 2013 and $50 million in 2012. At year-end 2013, we had approximately $1.5 billion of net operating losses, of which $747 million expire through 2033. | |||||||||||||
Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate | |||||||||||||
The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. statutory tax rate | 35 | % | 35 | % | 35 | % | |||||||
U.S. state income taxes, net of U.S. federal tax benefit | 2.6 | 2.6 | 2.3 | ||||||||||
Nondeductible expenses | 0.5 | 0.3 | 1.8 | ||||||||||
Non-U.S. income | (5.7 | ) | (3.9 | ) | (0.9 | ) | |||||||
Change in valuation allowance (1) | 0.3 | (0.2 | ) | 8.9 | |||||||||
Tax credits | (0.4 | ) | (0.4 | ) | (1.0 | ) | |||||||
Other, net | (2.1 | ) | (0.7 | ) | (1.7 | ) | |||||||
Effective rate | 30.2 | % | 32.7 | % | 44.4 | % | |||||||
(1) | Primarily for the 2011 additional impairment of certain deferred tax assets transferred to MVW, as discussed earlier in this footnote. | ||||||||||||
We paid cash for income taxes, net of refunds of $77 million in 2013 and $45 million in 2011, and received $17 million of cash for income tax refunds, net of payments in 2012. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||||||||||||||
Under our Stock and Cash Incentive Plan (the “Stock Plan”), we award: (1) stock options (our "Stock Option Program") to purchase our Class A Common Stock (our “common stock”); (2) stock appreciation rights (“SARs”) for our common stock (our “SAR Program”); (3) restricted stock units (“RSUs”) of our common stock; and (4) deferred stock units. We grant awards at exercise prices or strike prices that equal the market price of our common stock on the date of grant. | |||||||||||||||||||||||||||
For all share-based awards, applicable accounting guidance requires that we measure compensation costs for our share-based payment transactions at fair value on the grant date and that we recognize those costs in our Financial Statements over the vesting period during which the employee provides service ("the service period") in exchange for the award. | |||||||||||||||||||||||||||
During 2013, we granted 2.5 million RSUs, 0.2 million service and performance RSUs, 0.7 million SARs, and 0.1 million stock options. | |||||||||||||||||||||||||||
We recorded share-based compensation expense for award grants of $116 million in 2013, $94 million in 2012, and $103 million in 2011. Deferred compensation costs for unvested awards totaled $108 million at year-end 2013 and $122 million at year-end 2012. As of year-end 2013, we expect to recognize these deferred compensation expenses over a weighted average period of two years. | |||||||||||||||||||||||||||
Under the guidance for share-based compensation, we present the tax benefits and costs resulting from the exercise or vesting of share-based awards as financing cash flows. The exercise of share-based awards resulted in tax benefits of $121 million in 2013 and $71 million in 2012. Due to tax losses in 2011, we recorded no tax benefit in that year. | |||||||||||||||||||||||||||
We received cash from the exercise of Marriott stock options of $199 million in 2013, $179 million in 2012, and $124 million in 2011. | |||||||||||||||||||||||||||
RSUs | |||||||||||||||||||||||||||
We issue Marriott RSUs under the Stock Plan 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 recognize compensation expense for RSUs over the service period equal to the fair market value of the stock units on the date of issuance. Upon vesting, Marriott RSUs convert to shares which we distribute from treasury shares. We also issue service and performance Marriott RSUs ("S&P RSUs") to named executive officers under the Stock Plan. In addition to generally being subject to pro-rata annual vesting conditioned on continued service consistent with the standard form of Marriott RSUs, Marriott S&P RSUs are also subject to the satisfaction of a performance condition, expressed as an EBITDA goal, for a fiscal year during the applicable service vesting period. The following information on RSUs includes S&P RSUs. | |||||||||||||||||||||||||||
We had deferred compensation costs for RSUs of approximately $102 million at year-end 2013 and $111 million at year-end 2012. The weighted average remaining term for RSU grants outstanding at year-end 2013 was two years. | |||||||||||||||||||||||||||
The following table provides additional information on Marriott RSUs for the last three fiscal years: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Share-based compensation expense (in millions) | $ | 101 | $ | 83 | $ | 90 | |||||||||||||||||||||
Weighted average grant-date fair value (per Marriott RSU) | $ | 38 | $ | 35 | $ | 40 | |||||||||||||||||||||
Aggregate intrinsic value of converted and distributed Marriott RSUs (in millions) | $ | 125 | $ | 91 | $ | 113 | |||||||||||||||||||||
The following table shows the 2013 changes in our outstanding Marriott RSU grants and the associated weighted average grant-date fair values: | |||||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||||
Marriott RSUs | Average | ||||||||||||||||||||||||||
(in millions) | Grant-Date | ||||||||||||||||||||||||||
Fair Value (per RSU) | |||||||||||||||||||||||||||
Outstanding at year-end 2012 | 7.4 | $ | 31 | ||||||||||||||||||||||||
Granted during 2013 (2) | 2.7 | 38 | |||||||||||||||||||||||||
Distributed during 2013 | (3.0 | ) | 29 | ||||||||||||||||||||||||
Forfeited during 2013 | (0.3 | ) | 34 | ||||||||||||||||||||||||
Outstanding at year-end 2013 (1) | 6.8 | $ | 35 | ||||||||||||||||||||||||
(1) | Includes 0.2 million Marriott RSUs held by MVW employees. | ||||||||||||||||||||||||||
(2) | Includes 0.2 million S&P RSUs granted to named executive officers. | ||||||||||||||||||||||||||
Stock Options and SARs | |||||||||||||||||||||||||||
We may grant employee stock options to officers and key employees at exercise prices or strike prices that equal the market price of our common stock on the grant date. Non-qualified options generally expire 10 years after the grant date, except those we issued from 1990 through 2000, which expire 15 years after their grant date. Most stock options under the Stock Option Program may be exercised in cumulative installments of one quarter at the end of each of the first four years following the grant date. | |||||||||||||||||||||||||||
We recognized compensation expense for employee stock options of $2 million in 2013, $1 million in 2012, and less than $1 million in 2011. We had deferred compensation costs for employee stock options of $2 million at year-end 2013 and $3 million at year-end 2012. When holders exercise Marriott stock options we issue shares from treasury shares. | |||||||||||||||||||||||||||
The following table shows the 2013 changes in our outstanding Marriott Stock Option Program awards and the associated weighted average exercise prices: | |||||||||||||||||||||||||||
Number of Marriott Stock Options | Weighted Average | ||||||||||||||||||||||||||
(in millions) | Exercise Price (per Option) | ||||||||||||||||||||||||||
Outstanding at year-end 2012 | 9.5 | $ | 19 | ||||||||||||||||||||||||
Granted during 2013 | 0.1 | 39 | |||||||||||||||||||||||||
Exercised during 2013 | (5.0 | ) | 17 | ||||||||||||||||||||||||
Forfeited during 2013 | — | 46 | |||||||||||||||||||||||||
Outstanding at year-end 2013 (1) | 4.6 | $ | 22 | ||||||||||||||||||||||||
(1) | Includes 0.1 million Marriott stock options held by MVW employees. | ||||||||||||||||||||||||||
The following table shows the Marriott stock options issued under the Stock Option Program awards outstanding at year-end 2013, as well as those exercisable on that date (those where the exercise price was less than the market price of our common stock on that date): | |||||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||||
Range of | Number of | Weighted | Weighted | Number of | Weighted | Weighted | |||||||||||||||||||||
Exercise Prices | Stock | Average | Average | Stock | Average | Average | |||||||||||||||||||||
Options | Exercise | Remaining | Options | Exercise | Remaining | ||||||||||||||||||||||
(in millions) | Price (per Option) | Life | (in millions) | Price (per Option) | Life | ||||||||||||||||||||||
(in years) | (in years) | ||||||||||||||||||||||||||
$ | 13 | to | $ | 17 | 2.5 | $ | 16 | 1 | 2.5 | $ | 16 | 1 | |||||||||||||||
18 | to | 22 | 0.6 | 22 | 1 | 0.6 | 22 | 1 | |||||||||||||||||||
23 | to | 46 | 1.5 | 32 | 4 | 1.1 | 30 | 3 | |||||||||||||||||||
13 | to | 46 | 4.6 | 22 | 2 | 4.2 | 21 | 2 | |||||||||||||||||||
The following table shows the number of Marriott stock options we granted in the last three fiscal years and the associated weighted average grant-date fair values and weighted average exercise prices: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Options granted | 96,960 | 255,761 | 19,192 | ||||||||||||||||||||||||
Weighted average grant-date fair value (per option) | $ | 13 | $ | 12 | $ | 15 | |||||||||||||||||||||
Weighted average exercise price (per option) | $ | 39 | $ | 35 | $ | 38 | |||||||||||||||||||||
The following table shows the intrinsic value (the amount by which the market price of the underlying common stock exceeded the aggregate exercise price of the stock option) of all outstanding Marriott stock options and of exercisable Marriott stock options at year-end 2013 and 2012: | |||||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | |||||||||||||||||||||||||
Outstanding stock options | $ | 126 | $ | 169 | |||||||||||||||||||||||
Exercisable stock options | 121 | 168 | |||||||||||||||||||||||||
Marriott stock options exercised during the last three years had total intrinsic values of approximately $131 million in 2013, $158 million in 2012, and $124 million in 2011. | |||||||||||||||||||||||||||
We may grant Marriott SARs to officers and key employees ("Employee SARs") at base values (exercise prices or strike prices) equal to the market price of our common stock on the grant date. Employee SARs 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. We may grant Marriott SARs to directors ("Director SARs") at exercise prices or strike prices equal to the market price of our common stock on the grant date. Director SARs generally expire ten years after the date of grant and vest upon grant; however, they are generally not exercisable until one year after grant. On exercise of Marriott SARs, holders receive the number of shares of our common stock equal to the number of SARs that are being exercised multiplied by the quotient of (a) the final value minus the base value, divided by (b) the final value. | |||||||||||||||||||||||||||
We recognized compensation expense for Employee SARs and Director SARs of $12 million in 2013, $9 million in 2012, and $12 million in 2011. We had deferred compensation costs related to SARs of approximately $4 million in 2013 and $8 million in 2012. Upon the exercise of Marriott SARs, we issue shares from treasury shares. | |||||||||||||||||||||||||||
The following table shows the 2013 changes in our outstanding Marriott SARs and the associated weighted average exercise prices: | |||||||||||||||||||||||||||
Number of SARs | Weighted Average | ||||||||||||||||||||||||||
(in millions) | Exercise Price | ||||||||||||||||||||||||||
Outstanding at year-end 2012 | 6.2 | $ | 31 | ||||||||||||||||||||||||
Granted during 2013 | 0.7 | 39 | |||||||||||||||||||||||||
Exercised during 2013 | (0.5 | ) | 30 | ||||||||||||||||||||||||
Forfeited during 2013 | — | 41 | |||||||||||||||||||||||||
Outstanding at year-end 2013 (1) | 6.4 | $ | 32 | ||||||||||||||||||||||||
(1) | Includes 0.2 million Marriott SARs held by MVW employees. | ||||||||||||||||||||||||||
The following tables show the number of Employee Marriott SARs and Director Marriott SARs we granted in the last three fiscal years, the associated weighted average exercise prices, and the associated weighted average grant-date fair values: | |||||||||||||||||||||||||||
Employee Marriott SARs | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Employee Marriott SARs granted (in millions) | 0.7 | 1 | 0.7 | ||||||||||||||||||||||||
Weighted average exercise price (per SAR) | $ | 39 | $ | 35 | $ | 38 | |||||||||||||||||||||
Weighted average grant-date fair value (per SAR) | $ | 13 | $ | 12 | $ | 14 | |||||||||||||||||||||
Director Marriott SARs | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Director Marriott SARs granted | 5,903 | 5,915 | — | ||||||||||||||||||||||||
Weighted average exercise price (per SAR) | $ | 44 | $ | 39 | $ | — | |||||||||||||||||||||
Weighted average grant-date fair value (per SAR) | $ | 15 | $ | 14 | $ | — | |||||||||||||||||||||
Outstanding Marriott SARs had total intrinsic values of $111 million at year-end 2013 and $37 million at year-end 2012. Exercisable Marriott SARs had total intrinsic values of $82 million at year-end 2013 and $24 million at year-end 2012. Marriott SARs exercised during 2013 had total intrinsic values of $6 million and Marriott SARs exercised in 2012 had total intrinsic values of $2 million. | |||||||||||||||||||||||||||
On the grant date, we use a binomial lattice-based valuation model to estimate the fair value of each SAR and option granted. This valuation model uses a range of possible stock price outcomes over the term of the SAR and option, discounted back to a present value using a risk-free rate. Because of the limitations with closed-form valuation models, such as the Black-Scholes model, we have determined that this more flexible binomial model provides a better estimate of the fair value of our options and SARs because it takes into account employee and non-employee director exercise behavior based on changes in the price of our stock and also allows us to use other dynamic assumptions. | |||||||||||||||||||||||||||
We used the following assumptions to determine the fair value of the SARs and stock options we granted to employees and non-employee directors in 2013 and 2012, and to employees in 2011 (we did not grant SARs to non-employee directors in 2011): | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Expected volatility | 30 - 31% | 31 | % | 32 | % | ||||||||||||||||||||||
Dividend yield | 1.17 | % | 1.01 | % | 0.73 | % | |||||||||||||||||||||
Risk-free rate | 1.8 - 1.9% | 1.7 - 2.0% | 3.4 | % | |||||||||||||||||||||||
Expected term (in years) | 10-Aug | 10-Aug | 8 | ||||||||||||||||||||||||
In making these assumptions, we base expected volatility on the historical movement of Marriott's stock price. We base risk-free rates on the corresponding U.S. Treasury spot rates for the expected duration at the date of grant, which we convert to a continuously compounded rate. The dividend yield assumption takes into consideration both historical levels and expectations of future payout. The weighted average expected terms for SARs and options are an output of our valuation model which utilizes historical data in estimating the period of time that the SARs and options are expected to remain unexercised. We calculate the expected terms for SARs and options for separate groups of retirement eligible and non-retirement eligible employees. Our valuation model also uses historical data to estimate exercise behaviors, which includes determining the likelihood that employees will exercise their SARs and options before expiration at a certain multiple of stock price to exercise price. In recent years, non-employee directors have generally exercised grants in their last year of exercisability. | |||||||||||||||||||||||||||
Deferred Stock Units | |||||||||||||||||||||||||||
We also issue Marriott deferred stock units to non-employee directors. These non-employee director deferred stock units vest within one year and are distributed upon election. | |||||||||||||||||||||||||||
The following table shows the share-based compensation expense, the number of deferred stock units we granted, the weighted average grant-date fair value, and the aggregate intrinsic value for the last three fiscal years for non-employee director Marriott deferred stock units: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Share-based compensation expense (in millions) | $ | 1.4 | $ | 1.2 | $ | 1.1 | |||||||||||||||||||||
Non-employee director deferred stock units granted | 31,000 | 27,000 | 29,000 | ||||||||||||||||||||||||
Weighted average grant-date fair value (per share) | $ | 44 | $ | 39 | $ | 36 | |||||||||||||||||||||
Aggregate intrinsic value of shares distributed (in millions) | $ | 0.7 | $ | 1 | $ | 1.4 | |||||||||||||||||||||
We had 261,000 outstanding non-employee Marriott deferred stock units at year-end 2013, and 245,000 outstanding at year-end 2012. The weighted average grant-date fair value of those outstanding deferred stock units was $22 for 2013 and $27 for 2012. | |||||||||||||||||||||||||||
Adjustments for the Timeshare Spin-off | |||||||||||||||||||||||||||
Effective with the spin-off (see Footnote No. 15, "Spin-off," for further information), each holder of Marriott RSUs, stock options, and SARs on the November 10, 2011 record date for the spin-off received MVW RSUs, MVW stock options and/or MVW SARs, as applicable, consistent with the distribution ratio of one share of MVW common stock for every ten shares of Marriott common stock, with terms and conditions substantially similar to the terms and conditions applicable to the Marriott RSUs, stock options and SARs. In order to preserve the aggregate intrinsic value of the Marriott stock options and SARs those persons held, we adjusted the exercise prices of our awards by using the proportion of the Marriott ex-distribution closing stock price to the sum of the Marriott ex-distribution and MVW when issued closing stock prices on the distribution date. We accounted for these adjustments, which were designed to equalize the fair value of each award before and after spin-off, as modifications to the original awards. Comparing the fair value of the modified awards with the fair value of the original awards immediately before the modification did not yield incremental value. Accordingly, we did not record any incremental compensation expense as a result of the modifications to the awards on the spin-off date. | |||||||||||||||||||||||||||
The equity award adjustments that occurred as a result of the spin-off also did not significantly impact our share-based compensation expense. Deferred compensation costs as of the date of spin-off reflected the unamortized balance of the original grant date fair value of the equity awards held by Marriott employees (regardless of whether those awards are linked to Marriott stock or MVW stock). MVW employees who participated in the Stock Plan before the spin-off continued to hold their Marriott granted awards as non-employees after the spin-off. We do not record any share-based compensation expense for these unvested awards held by MVW employees after the spin-off. | |||||||||||||||||||||||||||
Other Information | |||||||||||||||||||||||||||
At year-end 2013, we reserved 32 million shares under the Stock Plan, including 11 million shares under the Stock Option Program and the SAR Program. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. We show the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table: | ||||||||||||||||
At Year-End 2013 | At Year-End 2012 | |||||||||||||||
($ in millions) | Carrying | Fair Value | Carrying | Fair Value | ||||||||||||
Amount | Amount | |||||||||||||||
Cost method investments | $ | 16 | $ | 17 | $ | 21 | $ | 23 | ||||||||
Senior, mezzanine, and other loans | 142 | 145 | 180 | 172 | ||||||||||||
Marketable securities and other debt securities | 111 | 111 | 56 | 56 | ||||||||||||
Total long-term financial assets | $ | 269 | $ | 273 | $ | 257 | $ | 251 | ||||||||
Senior Notes | $ | (2,185 | ) | $ | (2,302 | ) | $ | (1,833 | ) | $ | (2,008 | ) | ||||
Commercial paper | (834 | ) | (834 | ) | (501 | ) | (501 | ) | ||||||||
Other long-term debt | (123 | ) | (124 | ) | (130 | ) | (139 | ) | ||||||||
Other long-term liabilities | (50 | ) | (50 | ) | (69 | ) | (69 | ) | ||||||||
Total long-term financial liabilities | $ | (3,192 | ) | $ | (3,310 | ) | $ | (2,533 | ) | $ | (2,717 | ) | ||||
We estimate the fair value of our cost method investments by applying a cap rate to stabilized earnings (a market approach using Level 3 inputs). During the 2012 third quarter, we determined that a cost method investment was other-than-temporarily impaired and, accordingly, we recorded the investment at its fair value as of the end of the 2012 third quarter ($12 million) and reflected a $7 million loss in the "Gains (losses) and other income" caption of our Income Statement. We estimated the fair value of the investment using cash flow projections discounted at risk premiums commensurate with market conditions. We used Level 3 inputs for these discounted cash flow analyses and our assumptions included revenue forecasts, cash flow projections, and timing of the sale of each hotel in the underlying investment. | ||||||||||||||||
We estimate the fair value of our senior, mezzanine, and other loans, including the current portion, by discounting cash flows using risk-adjusted rates, both of which are Level 3 inputs. | ||||||||||||||||
We 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 year-end 2013 was $41 million. | ||||||||||||||||
In the 2013 second quarter, we acquired a $65 million mandatorily redeemable preferred equity ownership interest in an entity that owns three hotels that we manage. We account for this investment as a debt security (with an amortized cost of $70 million at year-end 2013, including accrued interest income), and we include it in the "Marketable securities and other debt securities" caption in the preceding table. We estimated the $70 million fair value of this security by discounting cash flows using risk-adjusted rates, both of which are Level 3 inputs. This security matures in 2015 subject to annual extensions through 2018. We do not intend to sell this 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 at maturity. | ||||||||||||||||
In the 2013 second quarter, we received $22 million in net cash proceeds for the sale of a portion of our shares of a publicly traded company (with an amortized cost of $14 million at the date of sale) and recognized an $8 million gain in the "Gains (losses) and other income" caption of our Income Statement. This gain included recognition of unrealized gains that we previously recorded in other comprehensive income. See Footnote No. 12, "Comprehensive Income and Shareholders' (Deficit) Equity" for additional information on the reclassification of these unrealized gains from accumulated other comprehensive income. | ||||||||||||||||
We estimate the fair value of our other long-term debt, including the current portion and excluding leases, using expected future payments discounted at risk-adjusted rates, both of which are Level 3 inputs. We determine the fair value of our senior notes using quoted market prices, which are directly observable Level 1 inputs. As noted in Footnote No. 10, "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 year-end 2013 and year-end 2012, we determined that the carrying value of our commercial paper approximated its fair value due to the short maturity. Our other long-term liabilities largely consist of guarantees. As noted in the "Guarantees" caption of Footnote No. 1, "Summary of Significant Accounting Policies," we measure our liability for guarantees at fair value on a nonrecurring basis that is when we issue or modify a guarantee, using Level 3 internally developed inputs. At year-end 2013 and year-end 2012, we determined that the carrying values of our guarantee liabilities approximated their fair values based on Level 3 inputs. | ||||||||||||||||
See the “Fair Value Measurements” caption of Footnote No. 1, “Summary of Significant Accounting Policies” for more information on the input levels we use in determining fair value. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
EARNINGS PER SHARE | ||||||||||||
The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions, except per share amounts) | ||||||||||||
Computation of Basic Earnings Per Share | ||||||||||||
Net income | $ | 626 | $ | 571 | $ | 198 | ||||||
Weighted average shares outstanding | 305 | 322.6 | 350.1 | |||||||||
Basic earnings per share | $ | 2.05 | $ | 1.77 | $ | 0.56 | ||||||
Computation of Diluted Earnings Per Share | ||||||||||||
Net income | $ | 626 | $ | 571 | $ | 198 | ||||||
Weighted average shares outstanding | 305 | 322.6 | 350.1 | |||||||||
Effect of dilutive securities | ||||||||||||
Employee stock option and SARs plans | 4 | 6.1 | 8 | |||||||||
Deferred stock incentive plans | 0.8 | 0.9 | 0.9 | |||||||||
Restricted stock units | 3.2 | 3.3 | 3.3 | |||||||||
Shares for diluted earnings per share | 313 | 332.9 | 362.3 | |||||||||
Diluted earnings per share | $ | 2 | $ | 1.72 | $ | 0.55 | ||||||
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 2013, 0.4 million options and SARs; | |||||||||||
(b) | for 2012, 1.0 million options and SARs; and | |||||||||||
(c) | for 2011, 4.1 million options and SARs. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
PROPERTY AND EQUIPMENT | ||||||||
The following table shows the composition of our property and equipment balances at year-end 2013 and 2012: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Land | $ | 535 | $ | 590 | ||||
Buildings and leasehold improvements | 786 | 703 | ||||||
Furniture and equipment | 789 | 854 | ||||||
Construction in progress | 338 | 383 | ||||||
2,448 | 2,530 | |||||||
Accumulated depreciation | (905 | ) | (991 | ) | ||||
$ | 1,543 | $ | 1,539 | |||||
The following table shows the composition of these property and equipment balances that we recorded as capital leases: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Land | $ | 8 | $ | 30 | ||||
Buildings and leasehold improvements | 68 | 143 | ||||||
Furniture and equipment | 37 | 38 | ||||||
Construction in progress | 1 | 4 | ||||||
114 | 215 | |||||||
Accumulated depreciation | (83 | ) | (82 | ) | ||||
$ | 31 | $ | 133 | |||||
We record property and equipment at cost, including interest and real estate taxes we incur during development and construction. Interest we capitalized as a cost of property and equipment totaled $31 million in 2013, $27 million in 2012, and $12 million in 2011. We capitalize the cost of improvements that extend the useful life of property and equipment when we incur them. These capitalized costs may include structural costs, equipment, fixtures, floor, and wall coverings. We expense all repair and maintenance costs when we incur them. We compute depreciation using the straight-line method over the estimated useful lives of the assets (three to 40 years), and we amortize leasehold improvements over the shorter of the asset life or lease term. Our depreciation expense totaled $107 million in 2013, $93 million in 2012, and $130 million in 2011 (including reimbursed costs of $48 million in 2013, $45 million in 2012, and $43 million in 2011). We included amortization of assets recorded under capital leases in depreciation expense. | ||||||||
See Footnote No. 15, "Spin-off" for additional information on the $68 million property and equipment impairment charge we recorded in 2011 as part of the Timeshare strategy-impairment charges. |
ACQUISITIONS_AND_DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2013 | |
Acquisitions and Dispositions [Abstract] | ' |
Acquisitions and Dispositions | ' |
ACQUISITIONS AND DISPOSITIONS | |
2013 Acquisition | |
On October 4, 2013, we acquired a North American Full-Service managed property which we plan to renovate for a total of $115 million in cash and recognized the related property and equipment. | |
Planned Acquisition as of Year-End 2013 | |
Late in the 2013 fourth quarter, we entered into a definitive agreement with Protea Hospitality Holdings ("Protea Hospitality") of Cape Town, South Africa to acquire Protea Hotels' brands and hotel management business for approximately $186 million (2.02 billion rand). As part of the transaction, Protea Hospitality will create a property ownership company to retain ownership of the hotels it currently owns, and it will enter into long-term management and lease agreements with Marriott for these hotels. It would also retain a number of minority interests in other Protea-managed hotels. Once the transaction closes, we expect to add over 100 hotels (over 10,000 rooms) across three brands in South Africa and six other Sub-Saharan African countries to our International full-service portfolio. We expect to manage approximately 45 percent of the rooms, franchise approximately 39 percent of the rooms, and lease approximately 16 percent of the rooms. The transaction, which we expect will close at the beginning of the 2014 second quarter, remains subject to regulatory approvals and other customary closing conditions. | |
Planned Dispositions as of Year-End 2013 | |
In the beginning of the 2014 first quarter, we sold The London EDITION to a third party, received approximately $240 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 $815 million, approximately equal to the aggregate estimated development costs of the three hotels. At year-end 2013, we had $244 million in International segment assets related to The London EDITION ($236 million in property and equipment and $8 million in current assets) classified in the "Assets held for sale" caption and $13 million in International segment liabilities classified in liabilities held for sale within the "Other current liabilities" caption of the Balance Sheet. 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 2013 fourth quarter, we entered into an agreement to sell our right to acquire the landlord’s interest in a leased real estate property and certain attached assets of the property. We subsequently reclassified the related $106 million (€77 million) in International segment assets ($105 million (€76 million) in property and equipment and $1 million (€1 million) in current assets) to the "Assets held for sale" caption of the Balance Sheet and $48 million (€35 million) in International segment liabilities to liabilities held for sale within the "Other current liabilities" caption of the Balance Sheet as of year-end 2013. We recognized an impairment loss of $2 million (€2 million) in the "Gains (losses) and other income" caption of our Income Statement as a result of measuring the assets at fair value less costs to sell. After year-end 2013, we sold the right and attached assets for $62 million (€45 million) in cash and the assumption of $45 million (€33 million) of related obligations. We will continue to operate the property under a long-term management agreement. | |
2012 Acquisitions | |
In 2012, we entered into a definitive agreement with Gaylord Entertainment Company (subsequently renamed Ryman Hospitality Properties, Inc.) ("Ryman Hospitality") to acquire the Gaylord brand and hotel management company. On September 25, 2012, Ryman Hospitality's shareholders approved its conversion into a real estate investment trust. On October 1, 2012, we acquired the Gaylord Hotels brand and hotel management company for $210 million in cash and recognized $210 million in intangible assets at the acquisition date, primarily reflecting deferred contract acquisition costs. Ryman Hospitality continues to own the Gaylord hotels, which we manage under the Gaylord brand under long-term management agreements. This transaction added four hotels and approximately 7,800 rooms to our North American Full-Service segment, and included our entering into management agreements for several attractions at the Gaylord Opryland in Nashville, consisting of a showboat, a golf course, and a saloon. As part of the transaction, on December 1, 2012 we also assumed management of another hotel owned by Ryman Hospitality, the Inn at Opryland, with approximately 300 rooms. | |
In the 2012 fourth quarter, we acquired land for $32 million in cash that we expect will be developed into a hotel. Earlier in 2012, we also acquired land and a building we plan to develop into a hotel for $160 million in cash. In conjunction with the latter acquisition, we had also made a cash deposit of $6 million late in 2011. | |
2012 Dispositions | |
In 2012, we completed the sale of our equity interest in a North American Limited-Service joint venture (formerly two joint ventures which were merged before the sale) and we amended certain provisions of the management agreements for the underlying hotel portfolio. As a result of this transaction, we received cash proceeds of $96 million, including $30 million of proceeds which is refundable by us over the term of the management agreements if the hotel portfolio does not meet certain quarterly hotel performance thresholds. To the extent the hotel portfolio meets the quarterly hotel performance thresholds, we will recognize the $30 million of proceeds over the remaining term of the management agreements as base fee revenue. In 2012, we recognized a gain of $41 million, which consisted of: (1) $20 million of gain that we deferred in 2005 because we retained the equity interest following the original sale of land to one of the joint ventures and because there were contingencies for the 2005 transaction that expired with this sale; and (2) $21 million of gain on the sale of the equity interest. We also recognized base management fee revenue totaling $7 million, most of which we had deferred in earlier periods, but which we earned in conjunction with the sale. | |
We also sold our ExecuStay corporate housing business in 2012. Neither the sales price nor the gain we recognized was material to our results of operations and cash flows. The revenues, results of operations, assets, and liabilities of our ExecuStay business also were not material to our financial position, results of operations or cash flows for any of the periods presented, and accordingly we have not reflected ExecuStay as a discontinued operation. | |
2011 Acquisitions | |
In 2011, we contributed approximately $51 million (€37 million) in cash for the intellectual property and associated 50 percent interests in two new joint ventures formed for the operation, management, and development of AC Hotels by Marriott, initially in Europe but eventually in other parts of the world. The hotels are managed by the joint ventures or franchised at the direction of the joint ventures. As we note in Footnote No. 13, “Contingencies,” we have a right and, in some circumstances, an obligation to acquire the remaining interest in the joint ventures over the next seven years. | |
In 2011, we acquired certain assets and a leasehold on a hotel for an initial payment of $34 million (€25 million) in cash plus fixed annual rent. See Footnote No. 17, “Leases,” for more information. As we note in Footnote No. 13, “Contingencies,” we also had a right and, in some circumstances, an obligation to acquire the landlord’s interest in the real estate property and certain attached assets of this hotel for $45 million (€33 million). As discussed in the "Planned Dispositions as of Year-End 2013" caption, after year-end 2013, we sold that right and certain attached assets. | |
2011 Dispositions | |
On November 21, 2011, we completed the spin-off of our timeshare operations and timeshare development business through a special tax-free dividend to our shareholders of all of the issued and outstanding common stock of our then wholly owned subsidiary MVW. The dividend consisted of a pro rata distribution of one share of MVW common stock for every ten shares of Marriott common stock to our shareholders of record at the close of business on November 10, 2011. We recognized no gain or loss as a result of the spin-off. See Footnote No. 15, "Spin-off," for more information. | |
In 2011, we completed a bulk sale of land and developed inventory for net cash proceeds of $17 million and recorded a net gain of $2 million, which we included in the results of our former Timeshare segment. | |
In 2011, we also sold our 11 percent interest in one hotel, concurrently terminated the associated lease agreement, and entered into a long-term management agreement. Cash proceeds totaled $1 million, and we recognized a $2 million loss. We accounted for our sale of the 89 percent interest in 1999 under the financing method and reflected the sales proceeds received in 1999 as long-term debt. In conjunction with the 2011 sale of the remaining 11 percent interest, our assets decreased by $19 million and liabilities decreased by $17 million. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill and Intangible Assets | ' | |||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||
The following table details the composition of our other intangible assets at year-end 2013 and 2012: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Contract acquisition costs and other | $ | 1,554 | $ | 1,512 | ||||
Accumulated amortization | (423 | ) | (397 | ) | ||||
$ | 1,131 | $ | 1,115 | |||||
We capitalize both direct and incremental costs that we incur to acquire management, franchise, and license agreements. We amortize these costs on a straight-line basis over the initial term of the agreements, ranging from 15 to 30 years. Our amortization expense totaled $68 million in 2013, $54 million in 2012, and $57 million in 2011. Our estimated aggregate amortization expense for each of the next five fiscal years is as follows: $59 million for 2014; $59 million for 2015; $59 million for 2016; $59 million for 2017; and $59 million for 2018. | ||||||||
The following table details the carrying amount of our goodwill at year-end 2013 and 2012: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Goodwill | $ | 928 | $ | 928 | ||||
Accumulated impairment losses | (54 | ) | (54 | ) | ||||
$ | 874 | $ | 874 | |||||
NOTES_RECEIVABLE
NOTES RECEIVABLE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Notes Receivable | ' | |||||||
NOTES RECEIVABLE | ||||||||
The following table shows the composition of our notes receivable balances (net of reserves and unamortized discounts) at year-end 2013 and 2012: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Senior, mezzanine, and other loans | $ | 178 | $ | 242 | ||||
Less current portion | (36 | ) | (62 | ) | ||||
$ | 142 | $ | 180 | |||||
We classify notes receivable due within one year as current assets in the caption “Accounts and notes receivable” in our Balance Sheets. | ||||||||
The following table shows the expected future principal payments (net of reserves and unamortized discounts) as well as interest rates and unamortized discounts for our notes receivable as of year-end 2013: | ||||||||
Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates ($ in millions) | Amount | |||||||
2014 | $ | 36 | ||||||
2015 | 85 | |||||||
2016 | 4 | |||||||
2017 | 3 | |||||||
2018 | 5 | |||||||
Thereafter | 45 | |||||||
Balance at year-end 2013 | $ | 178 | ||||||
Weighted average interest rate at year-end 2013 | 4.6 | % | ||||||
Range of stated interest rates at year-end 2013 | 0 to 8.0% | |||||||
The following table shows the unamortized discounts for our notes receivable as of year-end 2013 and 2012: | ||||||||
Notes Receivable Unamortized Discounts ($ in millions) | Amount | |||||||
Balance at year-end 2012 | $ | 11 | ||||||
Balance at year-end 2013 | $ | 12 | ||||||
Senior, Mezzanine, and Other Loans | ||||||||
Generally, all of the loans we make have similar characteristics in that they are loans to owners and operators of hotels and hospitality properties. We reflect interest income for “Senior, mezzanine, and other loans” in the “Interest income” caption in our Income Statements. At year-end 2013, our recorded investment in impaired “Senior, mezzanine, and other loans” was $99 million. 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. At year-end 2012, our recorded investment in impaired “Senior, mezzanine, and other loans” was $93 million, and we had a $79 million notes receivable reserve representing an allowance for credit losses, leaving $14 million of our investment in impaired loans, for which we had no related allowance for credit losses. Our average investment in impaired “Senior, mezzanine, and other loans” totaled $96 million during 2013, $94 million during 2012, and $89 million during 2011. | ||||||||
The following table summarizes the activity for our “Senior, mezzanine, and other loans” notes receivable reserve for 2011, 2012, and 2013: | ||||||||
($ in millions) | Notes Receivable | |||||||
Reserve | ||||||||
Balance at year-end 2010 | $ | 74 | ||||||
Additions | 2 | |||||||
Write-offs | (7 | ) | ||||||
Transfers and other | 9 | |||||||
Balance at year-end 2011 | 78 | |||||||
Additions | 2 | |||||||
Reversals | (1 | ) | ||||||
Write-offs | (1 | ) | ||||||
Transfers and other | 1 | |||||||
Balance at year-end 2012 | 79 | |||||||
Reversals | (2 | ) | ||||||
Transfers and other | 13 | |||||||
Balance at year-end 2013 | $ | 90 | ||||||
Past due senior, mezzanine, and other loans totaled zero at year-end 2013 and $7 million at year-end 2012. |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
LONG-TERM DEBT | ||||||||
We provide detail on our long-term debt balances at year-end 2013 and 2012 in the following table: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Senior Notes: | ||||||||
Series G, interest rate of 5.8%, face amount of $316, maturing November 10, 2015 | $ | 312 | $ | 309 | ||||
(effective interest rate of 6.7%)(1) | ||||||||
Series H, interest rate of 6.2%, face amount of $289, maturing June 15, 2016 | 289 | 289 | ||||||
(effective interest rate of 6.4%)(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 J, matured February 15, 2013 | — | 400 | ||||||
Series K, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 | 595 | 594 | ||||||
(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 | — | ||||||
(effective interest rate of 3.6%)(1) | ||||||||
Commercial paper, average interest rate of 0.4% at December 31, 2013 | 834 | 501 | ||||||
$2,000 Credit Facility | — | 15 | ||||||
Other | 180 | 186 | ||||||
3,199 | 2,935 | |||||||
Less current portion classified in: | ||||||||
Other current liabilities (liabilities held for sale) | (46 | ) | — | |||||
Current portion of long-term debt | (6 | ) | (407 | ) | ||||
$ | 3,147 | $ | 2,528 | |||||
(1) | Face amount and effective interest rate are as of year-end 2013. | |||||||
All of our long-term debt was, and to the extent currently outstanding is, recourse to us but unsecured. Other debt in the preceding table includes capital leases, among other items. | ||||||||
In the 2013 third quarter, we issued $350 million aggregate principal amount of 3.4 percent Series M Notes due 2020 (the "Series M Notes"). We received net proceeds of approximately $345 million from the offering, after deducting the underwriting discount and estimated expenses. We will pay interest on the Series M Notes on April 15 and October 15 of each year, commencing on April 15, 2014. The Notes will mature on October 15, 2020, and we may redeem them, in whole or in part, at our option. | ||||||||
In 2012, we issued $350 million aggregate principal amount of 3.3 percent Series L Notes due 2022 (the "Series L Notes"). We received net proceeds of approximately $346 million from the offering, after deducting the underwriting discount and estimated expenses. We pay interest on the Series L Notes on March 15 and September 15 of each year, and we made our first interest payment on March 15, 2013. The Notes will mature on September 15, 2022, and we may redeem them, in whole or in part, at our option. | ||||||||
In 2012, we also issued $600 million aggregate principal amount of 3.0 percent Series K Notes due 2019 (the "Series K Notes") in two offerings, one for $400 million and a follow on for $200 million. We received total net proceeds of approximately $590 million from these offerings, after deducting underwriting discounts and estimated expenses. We pay interest on the Series K Notes on March 1 and September 1 of each year, and we made our first interest payment on September 1, 2012. The Notes will mature on March 1, 2019, and we may redeem them, in whole or in part, at our option. | ||||||||
We issued the Series M Notes, Series L Notes, and the Series K Notes under an indenture dated as of November 16, 1998 with The Bank of New York Mellon, as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank), as trustee. | ||||||||
In the 2013 first quarter, we made a $411 million cash payment of principal and interest to retire, at maturity, all of our outstanding Series J Notes. In 2012, we made a $356 million cash payment of principal and interest to retire, at maturity, all of our outstanding Series F Notes. | ||||||||
We are party to a multicurrency revolving credit agreement (the “Credit Facility”) that provides for $2,000 million of aggregate borrowings to support general corporate needs, including working capital, capital expenditures, and letters of credit. The Credit Facility expires on July 18, 2018. The availability of the Credit Facility also supports our commercial paper program. Borrowings under the Credit Facility generally bear interest at LIBOR (the London Interbank Offered Rate) plus a spread, based on our public debt rating. We also pay quarterly fees on the Credit Facility at a rate also based on our public debt rating. While any outstanding commercial paper borrowings and/or borrowings under our Credit Facility generally have short-term maturities, we classify the outstanding borrowings as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis. | ||||||||
We show future principal payments (net of unamortized discounts) for our debt in the following table: | ||||||||
Debt Principal Payments (net of unamortized discounts) ($ in millions) | Amount | |||||||
2014 | $ | 52 | ||||||
2015 | 319 | |||||||
2016 | 297 | |||||||
2017 | 301 | |||||||
2018 | 843 | |||||||
Thereafter | 1,387 | |||||||
Balance at year-end 2013 | $ | 3,199 | ||||||
We paid cash for interest, net of amounts capitalized, of $83 million in 2013, $83 million in 2012, and $130 million in 2011. |
SELFINSURANCE_RESERVE_FOR_LOSS
SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Self-Insurance Reserve for Losses and Loss Adjustment Expenses Disclosure [Abstract] | ' | |||||||
Self-Insurance Reserve for Losses and Loss Adjustment Expenses | ' | |||||||
SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES | ||||||||
The following table summarizes the activity in our self-insurance reserve for losses and loss adjustment expenses for the last two fiscal years: | ||||||||
($ in millions) | 2013 | 2012 | ||||||
Balance at beginning of year | $ | 342 | $ | 330 | ||||
Less: reinsurance recoverable | (5 | ) | (5 | ) | ||||
Net balance at beginning of year | 337 | 325 | ||||||
Incurred related to: | ||||||||
Current year | 116 | 108 | ||||||
Prior year | 8 | (11 | ) | |||||
Total incurred | 124 | 97 | ||||||
Paid related to: | ||||||||
Current year | (25 | ) | (28 | ) | ||||
Prior year | (79 | ) | (57 | ) | ||||
Total paid | (104 | ) | (85 | ) | ||||
Net balance at end of year | 357 | 337 | ||||||
Add: reinsurance recoverable | 5 | 5 | ||||||
Balance at end of year | $ | 362 | $ | 342 | ||||
Our provision for incurred losses relating to the current year increased by $8 million over 2012 primarily due to an increase in medical benefit costs and growth in business activity. Our provision for incurred losses relating to prior years increased by $8 million in 2013 and decreased by $11 million in 2012 as a result of changes in estimates from insured events from prior years due to changes in underwriting experience and frequency and severity trends. Our year-end 2013 self-insurance reserve of $362 million consisted of a current portion of $120 million and long-term portion of $242 million. Our year-end 2012 self-insurance reserve of $342 million consisted of a current portion of $103 million and long-term portion of $239 million. |
COMPREHENSIVE_INCOME_AND_SHARE
COMPREHENSIVE INCOME AND SHAREHOLDERS’ (DEFICIT) EQUITY | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Comprehensive Income and Shareholders' (Deficit) Equity | ' | |||||||||||||||
COMPREHENSIVE INCOME AND SHAREHOLDERS’ (DEFICIT) EQUITY | ||||||||||||||||
The following table details the accumulated other comprehensive income (loss) activity for 2013, 2012, and 2011: | ||||||||||||||||
($ in millions) | Foreign Currency Translation Adjustments | Other Derivative Instrument Adjustments (1) | Unrealized Gains (Losses) on Available-For-Sale Securities (2) | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at year-end 2010 | $ | (4 | ) | $ | 2 | $ | — | $ | (2 | ) | ||||||
Other comprehensive loss before reclassifications | (31 | ) | (20 | ) | (3 | ) | (54 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | (2 | ) | — | 10 | 8 | |||||||||||
Net other comprehensive (loss) income | (33 | ) | (20 | ) | 7 | (46 | ) | |||||||||
Balance at year-end 2011 | $ | (37 | ) | $ | (18 | ) | $ | 7 | $ | (48 | ) | |||||
Other comprehensive income (loss) before reclassifications | 4 | (2 | ) | — | 2 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1 | 1 | — | 2 | ||||||||||||
Net other comprehensive income (loss) | 5 | (1 | ) | — | 4 | |||||||||||
Balance at year-end 2012 | $ | (32 | ) | $ | (19 | ) | $ | 7 | $ | (44 | ) | |||||
Other comprehensive income before reclassifications | 1 | — | 5 | 6 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | (6 | ) | (6 | ) | ||||||||||
Net other comprehensive loss | 1 | — | (1 | ) | — | |||||||||||
Balance at year-end 2013 | $ | (31 | ) | $ | (19 | ) | $ | 6 | $ | (44 | ) | |||||
(1) | We present the portions of other comprehensive income (loss) before reclassifications that relate to other derivative instrument adjustments net of deferred taxes of $1 million for 2012 and deferred tax benefits of $14 million for 2011. | |||||||||||||||
(2) | We present the portions of other comprehensive income (loss) before reclassifications that relate to unrealized gains (losses) on available-for-sale securities net of deferred taxes of $2 million for 2013 and $4 million for 2012. | |||||||||||||||
The following table details the effect on net income of significant amounts reclassified out of accumulated other comprehensive loss for 2013: | ||||||||||||||||
($ in millions) | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||||||||||||||
Accumulated Other Comprehensive Loss Components | 2013 | Income Statement Line(s) Item Affected | ||||||||||||||
Other derivative instrument adjustments | ||||||||||||||||
Gains (losses) on cash flow hedges | ||||||||||||||||
Foreign exchange contracts | $ | 3 | Base management and franchise fees | |||||||||||||
Interest rate contracts | (5 | ) | Interest expense | |||||||||||||
(2 | ) | Income before income taxes | ||||||||||||||
2 | Provision for income taxes | |||||||||||||||
Other, net | $ | — | Net income | |||||||||||||
Unrealized gains on available-for-sale securities | ||||||||||||||||
Sale of an available-for-sale security | $ | 10 | Gains and other income | |||||||||||||
10 | Income before income taxes | |||||||||||||||
(4 | ) | Provision for income taxes | ||||||||||||||
$ | 6 | Net income | ||||||||||||||
Our restated certificate of incorporation authorizes 800 million shares of our common stock, with a par value of $.01 per share and 10 million shares of preferred stock, without par value. At year-end 2013, we had 298 million of these authorized shares of our common stock and no preferred stock outstanding. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Contingencies | ' | |||||||
CONTINGENCIES | ||||||||
Guarantees | ||||||||
We issue guarantees to certain lenders and hotel owners, chiefly to obtain long-term management contracts. The guarantees generally have a stated maximum funding amount and a term of four to ten years. The terms of guarantees to lenders generally require us to fund if cash flows from hotel operations are inadequate to cover annual debt service or to repay the loan at the end of the term. The terms of the guarantees to hotel owners generally require us to fund if the hotels do not attain specified levels of operating profit. Guarantee fundings to lenders and hotel owners are generally recoverable as loans repayable to us out of future hotel cash flows and/or proceeds from the sale of hotels. We also enter into project completion guarantees with certain lenders in conjunction with hotels that we or our joint venture partners are building. | ||||||||
We show the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for guarantees for which we are the primary obligor at year-end 2013 in the following table: | ||||||||
($ in millions) | Maximum Potential | Liability for Guarantees | ||||||
Guarantee Type | Amount of Future Fundings | |||||||
Debt service | $ | 83 | $ | 4 | ||||
Operating profit | 99 | 40 | ||||||
Other | 17 | 2 | ||||||
Total guarantees where we are the primary obligor | $ | 199 | $ | 46 | ||||
We included our liability at year-end 2013 for guarantees for which we are the primary obligor in our Balance Sheet as follows: $2 million in “Other current liabilities” and $44 million in the “Other long-term liabilities.” | ||||||||
Our guarantees listed in the preceding table include $20 million of debt service guarantees, $11 million of operating profit guarantees, and $1 million of other guarantees that will not be in effect until the underlying properties open and we begin to operate the properties or certain other events occur. | ||||||||
The preceding table does not include the following guarantees: | ||||||||
• | $102 million of guarantees for Senior Living Services lease obligations of $75 million (expiring in 2018) and lifecare bonds of $27 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 $22 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 year-end 2013. In 2011 Sunrise provided us with $3 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 cash collateral and an $85 million letter of credit issued by Key Bank to secure our exposure under the lease guarantees for the continuing leases during the extension term and certain other obligations of Sunrise. During the extension term, Sunrise agreed to make an annual payment to us from the cash flow of the continuing lease facilities, subject to a $1 million annual minimum. In the 2013 first quarter, Sunrise merged with Health Care REIT, Inc., and Sunrise's management business was acquired by an entity formed by affiliates of Kohlberg Kravis Roberts & Co. LP, Beecken Petty O'Keefe & Co., Coastwood Senior Housing Partners LLC, and Health Care REIT. In conjunction with this acquisition, Sunrise funded an additional $2 million cash collateral and certified that the $85 million letter of credit remains in full force and effect. | |||||||
• | Lease obligations, for which we became secondarily liable when we acquired the Renaissance Hotel Group N.V. in 1997, consisting of annual rent payments of approximately $6 million and total remaining rent payments through the initial term of approximately $35 million. Most of these obligations expire by the end of 2020. CTF Holdings Ltd. (“CTF”) had originally provided €35 million in cash collateral in the event that we are required to fund under such guarantees, approximately $5 million (€4 million) of which remained at year-end 2013. Our exposure for the remaining rent payments through the initial term will decline to the extent that CTF obtains releases from the landlords or these hotels exit the system. Since the time we assumed these guarantees, we have not funded any amounts, and we do not expect to fund any amounts under these guarantees in the future. | |||||||
• | Certain guarantees and commitments relating to the timeshare business, which were outstanding at the time of the 2011 Timeshare spin-off and for which we became secondarily liable as part of the spin-off. These MVW payment obligations, for which we currently have a total exposure of $17 million, relate to various letters of credit and several other guarantees. MVW has indemnified us for these obligations. At year-end 2013, we expect these obligations will expire as follows: $2 million in 2014, $3 million in 2017, and $12 million (16 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 year-end 2013. See Footnote No. 15 "Spin-off," for more information on the spin-off of our timeshare operations and timeshare development business. | |||||||
• | 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 year-end 2013 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 year-end 2013. | |||||||
• | A guarantee for two adjoining leases, originally entered into in 2000 and 2006, for which we became secondarily liable in the 2013 third quarter as a result of our assignment of the leases to Accenture LLP. Accenture is the primary obligor and has indemnified us for the obligations under these leases and the guarantee. Our total exposure at year-end 2013 is $6 million related to future rent payments through the end of the leases in 2017. After year-end 2013, we were released from this guarantee and are no longer secondarily liable. | |||||||
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, at year-end 2013, we had the following commitments outstanding: | ||||||||
• | A commitment to invest up to $10 million of equity for a noncontrolling interest in a partnership that plans to purchase North American full-service and limited-service properties, or purchase or develop hotel-anchored mixed-use real estate projects. We expect to fund $8 million of this commitment as follows: $6 million in 2014 and $2 million in 2015. We do not expect to fund the remaining $2 million of this commitment. | |||||||
• | A commitment to invest up to $23 million of equity for noncontrolling interests in partnerships that plan to purchase or develop limited-service properties in Asia. We expect to fund this commitment as follows: $15 million in 2014 and $8 million in 2015. | |||||||
• | A commitment, with no expiration date, to invest up to $11 million in a joint venture for development of a new property. We expect to fund this commitment as follows: $8 million in 2014 and $3 million in 2015. | |||||||
• | A commitment to invest $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 2013, we acquired an additional five percent noncontrolling interest in each venture, applying $5 million (€4 million) of those deposits. The remaining deposits are refundable to the extent we do not acquire our joint venture partner’s remaining interests. | |||||||
• | We had a right and under certain circumstances an obligation to acquire, for approximately $45 million (€33 million), the landlord’s interest in the real estate property and certain attached assets of a hotel that we lease. After year-end 2013, we sold that right and certain attached assets. See Footnote No. 7, "Acquisitions and Dispositions" for additional information on the sale and reclassification of the capital lease to assets held for sale as of year-end 2013. | |||||||
• | 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 $152 million. We expect to fund these commitments as follows: $107 million in 2014, $32 million in 2015, and $13 million in 2016. The majority of these commitments will be recovered through cost reimbursement charges to properties in our system. | |||||||
• | Several commitments aggregating $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 "put option" agreement we entered into after year-end 2013 with the lenders of a construction loan. On January 14, 2014, 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 to provide credit support to the lenders through a "put option" agreement. Under this agreement, we have 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. While we cannot assure you that the lenders will not exercise this "put option," we believe that the likelihood of any exercise is remote. We do not have an ownership interest in this EDITION hotel. | |||||||
At year-end 2013, we had $80 million of letters of credit outstanding ($79 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 year-end 2013, totaled $122 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. 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 | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
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 business segment information originally presented in our 2013 Form 10-K filed on February 20, 2014 to conform to our new business segment presentation. | ||||||||||||||||
Our three business segments include the following brands: | ||||||||||||||||
• | North American Full-Service, which includes the 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, which includes the Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, and TownePlace Suites properties, located in the United States and Canada, and, before its sale in the 2012 second quarter, our Marriott ExecuStay corporate housing business; and | |||||||||||||||
• | International, which includes the 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 of The Ritz-Carlton hotels), Bulgari Hotels & Resorts, EDITION, and Marriott Executive Apartments properties located outside the United States and Canada. | |||||||||||||||
In addition, before the spin-off, our former Timeshare segment consisted of the timeshare operations and timeshare development business that we transferred to MVW in conjunction with the spin-off. We continue to include our former Timeshare segment's historical financial results for periods before the spin-off in our historical financial results as a component of continuing operations as reflected in the tables that follow. See Footnote No. 15, "Spin-off" for more information on the spin-off. | ||||||||||||||||
We evaluate the performance of our segments based largely on the results of the segment without allocating corporate expenses, income taxes, or indirect general, administrative, and other expenses. We allocate gains and losses, equity in earnings or losses from our joint ventures, and divisional general, administrative, and other expenses to each of our segments. “Other unallocated corporate” represents that portion of our revenues, general, administrative, and other expenses, equity in earnings or losses, and other gains or losses that we do not allocate to our segments. "Other unallocated corporate" includes license fees we receive from our credit card programs and license fees from MVW, after the spin-off. | ||||||||||||||||
Revenues | ||||||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||||||
North American Full-Service Segment | $ | 7,978 | $ | 7,276 | $ | 6,773 | ||||||||||
North American Limited-Service Segment | 2,583 | 2,456 | 2,350 | |||||||||||||
International Segment | 1,957 | 1,794 | 1,636 | |||||||||||||
Former Timeshare Segment | — | — | 1,438 | |||||||||||||
Total segment revenues | 12,518 | 11,526 | 12,197 | |||||||||||||
Other unallocated corporate | 266 | 288 | 120 | |||||||||||||
$ | 12,784 | $ | 11,814 | $ | 12,317 | |||||||||||
Net Income | ||||||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||||||
North American Full-Service Segment | $ | 490 | $ | 442 | $ | 374 | ||||||||||
North American Limited-Service Segment | 479 | 472 | 382 | |||||||||||||
International Segment | 228 | 251 | 215 | |||||||||||||
Former Timeshare Segment | — | — | (217 | ) | ||||||||||||
Total segment financial results | 1,197 | 1,165 | 754 | |||||||||||||
Other unallocated corporate | (203 | ) | (196 | ) | (291 | ) | ||||||||||
Interest expense and interest income(1) | (97 | ) | (120 | ) | (107 | ) | ||||||||||
Income taxes | (271 | ) | (278 | ) | (158 | ) | ||||||||||
$ | 626 | $ | 571 | $ | 198 | |||||||||||
(1) | The $164 million of interest expense shown on the Income Statement for year-end 2011 includes $43 million that we allocated to our former Timeshare segment. | |||||||||||||||
Depreciation and Amortization | ||||||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||||||
North American Full-Service Segment | $ | 57 | $ | 46 | $ | 50 | ||||||||||
North American Limited-Service Segment | 21 | 16 | 23 | |||||||||||||
International Segment | 42 | 33 | 35 | |||||||||||||
Former Timeshare Segment | — | — | 29 | |||||||||||||
Total segment depreciation and amortization | 120 | 95 | 137 | |||||||||||||
Other unallocated corporate | 7 | 7 | 7 | |||||||||||||
$ | 127 | $ | 102 | $ | 144 | |||||||||||
Goodwill | ||||||||||||||||
($ in millions) | North American | North American | International | Total | ||||||||||||
Full-Service | Limited-Service | Segment | Goodwill | |||||||||||||
Segment | Segment | |||||||||||||||
Year-end 2011 balance: | ||||||||||||||||
Goodwill | $ | 392 | $ | 126 | $ | 411 | $ | 929 | ||||||||
Accumulated impairment losses | — | (54 | ) | — | (54 | ) | ||||||||||
$ | 392 | $ | 72 | $ | 411 | $ | 875 | |||||||||
Year-end 2012 balance: | ||||||||||||||||
Goodwill | $ | 392 | $ | 125 | $ | 411 | $ | 928 | ||||||||
Accumulated impairment losses | — | (54 | ) | — | (54 | ) | ||||||||||
$ | 392 | $ | 71 | $ | 411 | $ | 874 | |||||||||
Year-end 2013 balance: | ||||||||||||||||
Goodwill | $ | 392 | $ | 125 | $ | 411 | $ | 928 | ||||||||
Accumulated impairment losses | — | (54 | ) | — | (54 | ) | ||||||||||
$ | 392 | $ | 71 | $ | 411 | $ | 874 | |||||||||
Capital Expenditures | ||||||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||||||
North American Full-Service Segment | $ | 253 | $ | 257 | $ | 25 | ||||||||||
North American Limited-Service Segment | 8 | 19 | 11 | |||||||||||||
International Segment | 93 | 96 | 75 | |||||||||||||
Former Timeshare Segment | — | — | 13 | |||||||||||||
Total segment capital expenditures | 354 | 372 | 124 | |||||||||||||
Other unallocated corporate | 50 | 65 | 59 | |||||||||||||
$ | 404 | $ | 437 | $ | 183 | |||||||||||
Segment expenses include selling expenses directly related to the operations of the businesses, aggregating $49 million in 2013, $53 million in 2012, and $354 million in 2011 (approximately 82 percent of which were for our former Timeshare segment for the period before the spin-off). | ||||||||||||||||
Our Financial Statements include the following related to operations located outside the United States for our segments: | ||||||||||||||||
1 | Revenues of $2,149 million in 2013, $1,912 million in 2012, and $1,945 million in 2011; | |||||||||||||||
2 | Segment financial results of $269 million in 2013, $283 million in 2012, and $172 million in 2011. The 2013 segment financial results consisted of segment income of $91 million from Asia, $84 million from the Americas (excluding the United States), $50 million from Continental Europe, $26 million from the United Kingdom and Ireland, and $18 million from the Middle East and Africa; and | |||||||||||||||
3 | Fixed assets of $238 million in 2013 and $491 million in 2012. We include fixed assets located outside the United States at year-end 2013 and year-end 2012 in the “Property and equipment” caption in our Balance Sheets. Also, we had $341 million of fixed assets in 2013 classified in the "Assets held for sale" caption in our Balance Sheet. See Footnote No. 7, "Acquisitions and Dispositions" for more information. |
SPINOFF
SPIN-OFF | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Spin-off Disclosure [Abstract] | ' | |||
Spin-off | ' | |||
SPIN-OFF | ||||
On November 21, 2011, we completed a spin-off of our timeshare operations and timeshare development business through a special tax-free dividend to our shareholders of all of the issued and outstanding common stock of our then wholly owned subsidiary MVW. Marriott shareholders of record as of the close of business on November 10, 2011 received one share of MVW common stock for every ten shares of Marriott common stock. Neither we nor our shareholders recognize income, gain, or loss for federal income tax purposes as a result of the distribution of MVW common stock, except in the case of our shareholders for cash they received in lieu of fractional shares. As a result of the spin-off, MVW is an independent company whose common shares are listed on the New York Stock Exchange under symbol "VAC," and we no longer beneficially own any shares of MVW. | ||||
In connection with the spin-off, we entered into several agreements with MVW, and, in some cases, certain of its subsidiaries, that govern our post-spin-off relationship with MVW, including a Separation and Distribution Agreement, two License Agreements for the use of Marriott and Ritz-Carlton marks and intellectual property, an Employee Benefits and Other Employment Matters Allocation Agreement, a Tax Sharing and Indemnification Agreement, a Marriott Rewards Affiliation Agreement, and a Non-Competition Agreement. Under license agreements with us, MVW is both the exclusive developer and operator of timeshare, fractional, and related products under the Marriott brand and the exclusive developer of fractional and related products under The Ritz-Carlton brand. Under the license agreements we receive license fees consisting of a fixed annual fee of $50 million plus two percent of the gross sales price paid to MVW for initial developer sales of interest in vacation ownership units and residential real estate units and one percent of the gross sales price paid to MVW for resales of interests in vacation ownership units and residential real estate units, in each case that are identified with or use the Marriott or Ritz-Carlton marks. The license fee also includes a periodic inflation adjustment. | ||||
Following the spin-off, we no longer consolidate MVW's financial results as part of our financial reporting. However, because of our significant continuing involvement in MVW operations after the spin-off (by virtue of the license and other agreements between us and MVW), we continue to include our former Timeshare segment's historical financial results for periods before the spin-off in our historical financial results as a component of continuing operations. | ||||
Our shareholders' equity decreased by $1,162 million as a result of the spin-off of MVW. We show in the following table the components of the decrease, which was primarily noncash and principally consisted of the net book value of the net assets we contributed to MVW in the spin-off: | ||||
($ in millions) | 2011 | |||
Cash and equivalents | $ | 52 | ||
Accounts and notes receivable | 247 | |||
Inventory | 982 | |||
Other current assets | 293 | |||
Property and equipment and other | 284 | |||
Loans to timeshare owners | 987 | |||
Other current liabilities | (533 | ) | ||
Current portion of long-term debt | (122 | ) | ||
Long-term debt | (773 | ) | ||
Other long-term liabilities | (255 | ) | ||
SPIN-OFF OF MVW | $ | 1,162 | ||
In 2011, we recognized $34 million of transaction-related expenses for the spin-off. During the 2011 fourth quarter before the spin-off we also received net cash proceeds of: (1) approximately $122 million from a $300 million secured warehouse credit facility that MVW put in place to provide short-term financing for receivables originated in connection with the sale of timeshare interests, and (2) $38 million from our sale to third-party investors of preferred stock that a subsidiary of MVW issued to us. This distribution of approximately $160 million in cash before completion of the spin-off had no impact on our earnings. | ||||
Before the spin-off, management assessed the Timeshare segment's intended use of excess undeveloped land and built inventory and the then current market conditions for those assets. On September 8, 2011, management approved a plan for our former Timeshare segment to accelerate cash flow through the monetization of certain excess undeveloped land in the U.S., Mexico, and the Bahamas over the next 18 to 24 months and to accelerate sales of excess built luxury fractional and residential inventory over the next three years. As a result, under the guidance for accounting for the impairment or disposal of long-lived assets, because the nominal cash flows from the planned land sales and the estimated fair values of the land and excess built luxury inventory were less than their respective carrying values, we recorded a pre-tax noncash impairment charge of $324 million ($234 million after-tax) in our 2011 Income Statement under the "Timeshare strategy-impairment charges" caption which we allocated to our former Timeshare segment. The pre-tax noncash impairment charge consisted of a $256 million inventory impairment and a $68 million property and equipment impairment. | ||||
We estimated the fair value of the land by using recent comparable sales data for the land parcels, which we determined were Level 3 inputs. We estimated the fair value of the excess built luxury fractional and residential inventory using cash flow projections discounted at risk premiums commensurate with the market conditions of the related projects. We used Level 3 inputs for these discounted cash flow analyses and our assumptions included: growth rate and sales pace projections, additional sales incentives such as pricing discounts, and marketing and sales cost estimates. | ||||
See Footnote No. 18, "Timeshare Strategy-Impairment Charges" of the Notes to our Financial Statements in our 2011 Form 10-K for more information on these charges. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||
Variable Interest Entities | ' | |||
VARIABLE INTEREST ENTITIES | ||||
Under the applicable accounting guidance for the consolidation of variable interest entities, we analyze our variable interests, including loans, guarantees, and equity investments, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analysis to determine if we must consolidate a variable interest entity as its primary beneficiary. | ||||
Variable interest entities related to our timeshare note securitizations | ||||
Before the spin-off, we periodically securitized, without recourse, through special purpose entities, notes receivable originated by our former Timeshare segment in connection with the sale of timeshare interval and fractional products. These securitizations provided funding for us and transferred the economic risks and substantially all the benefits of the loans to third parties. In a securitization, various classes of debt securities that the special purpose entities issued were generally collateralized by a single tranche of transferred assets, which consisted of timeshare notes receivable. We serviced the notes receivable. With each securitization, we retained a portion of the securities, subordinated tranches, interest-only strips, subordinated interests in accrued interest and fees on the securitized receivables or, in some cases, overcollateralization and cash reserve accounts. As a result of our involvement with these entities in 2011 before the spin-off, we recognized $116 million of interest income, partially offset by $39 million of interest expense to investors and $3 million in debt issuance cost amortization. | ||||
We show our cash flows to and from the timeshare notes securitization variable interest entities in the following table for 2011 before the spin-off: | ||||
($ in millions) | 2011 | |||
Cash inflows: | ||||
Proceeds from securitization | $ | 122 | ||
Principal receipts | 188 | |||
Interest receipts | 112 | |||
Total | 422 | |||
Cash outflows: | ||||
Principal to investors | (185 | ) | ||
Repurchases | (64 | ) | ||
Interest to investors | (39 | ) | ||
Total | (288 | ) | ||
Net Cash Flows | $ | 134 | ||
Under the terms of our timeshare note securitizations, we had the right at our option to repurchase defaulted mortgage notes at the outstanding principal balance. The transaction documents typically limited such repurchases to 10 to 20 percent of the transaction’s initial mortgage balance. We voluntarily repurchased $43 million of defaulted notes and $21 million of other non-defaulted notes during 2011. | ||||
Other variable interest entities | ||||
In the 2013 second quarter, we purchased a $65 million mandatorily redeemable preferred equity ownership interest in an entity that owns three hotels, which we also manage. See Footnote No. 4, "Fair Value of Financial Instruments" for further information on the purchase and Footnote No. 13, "Contingencies" for information on the commitment we entered into as part of this transaction. Based on qualitative and quantitative analyses, we concluded that the entity in which we invested is a variable interest entity because it is capitalized primarily with debt. We did not consolidate the entity because we do not have the power to direct the activities that most significantly impact the entity's economic performance. Inclusive of our contingent future funding commitment, our maximum exposure to loss at year-end 2013 is $80 million. | ||||
In conjunction with the transaction with CTF that we describe more fully in our Annual Report on Form 10-K for 2007 in Footnote No. 8, “Acquisitions and Dispositions,” under the caption “2005 Acquisitions,” we manage hotels on behalf of tenant entities that are 100 percent owned by CTF, which lease the hotels from third-party owners. Due to certain provisions in the management agreements, we account for these contracts as operating leases. At year-end 2013, we managed four hotels on behalf of three tenant entities. The entities have minimal equity and minimal assets, consisting of hotel working capital and furniture, fixtures, and equipment. As part of the 2005 transaction, CTF placed money in a trust account to cover cash flow shortfalls and to meet rent payments. In turn, we released CTF from its guarantees fully for two of these properties and partially for the other two properties. The trust account was fully depleted prior to year-end 2011. The tenant entities are variable interest entities because the holder of the equity investment at risk, CTF, lacks the ability through voting rights to make key decisions about the entities’ activities that have a significant effect on the success of the entities. We do not consolidate the entities because we do not have the power to direct the activities that most significantly impact the entities' economic performance. We are liable for rent payments (totaling $5 million) for two of the four hotels if there are cash flow shortfalls. These two hotels have lease terms of less than one year. In addition, as of year-end 2013 we are liable for rent payments of up to an aggregate cap of $4 million for the two other hotels if there are cash flow shortfalls. Our maximum exposure to loss is limited to the rent payments and certain other tenant obligations under the lease, for which we are secondarily liable. |
LEASES
LEASES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Leases | ' | |||||||||||
LEASES | ||||||||||||
We have summarized below our future obligations under operating leases at year-end 2013: | ||||||||||||
($ in millions) | Minimum Lease | |||||||||||
Payments | ||||||||||||
Fiscal Year | ||||||||||||
2014 | $ | 134 | ||||||||||
2015 | 130 | |||||||||||
2016 | 118 | |||||||||||
2017 | 103 | |||||||||||
2018 | 86 | |||||||||||
Thereafter | 583 | |||||||||||
Total minimum lease payments where we are the primary obligor | $ | 1,154 | ||||||||||
Most leases have initial terms of up to 20 years and contain one or more renewal options, generally for five- or 10-year periods. These leases provide for minimum rentals and additional rentals based on our operations of the leased property. The total minimum lease payments above include $264 million of obligations of our consolidated subsidiaries that are non-recourse to us. | ||||||||||||
The foregoing table does not reflect $4 million in aggregate minimum lease payments, for which we are secondarily liable, relating to the CTF leases further discussed in Footnote No. 16, “Variable Interest Entities.” | ||||||||||||
The following table details the composition of rent expense for operating leases for the last three years: | ||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||
Minimum rentals | $ | 159 | $ | 188 | $ | 240 | ||||||
Additional rentals | 56 | 62 | 66 | |||||||||
$ | 215 | $ | 250 | $ | 306 | |||||||
Our future obligation under capital leases at year-end 2013 was $53 million with a present value of net minimum lease payments of $51 million. In conjunction with the sale of our right to acquire the landlord’s interest in a leased real estate property and certain attached assets of the property after year-end 2013, $46 million of the $51 million originally classified in the “Long-term debt” caption was reclassified to liabilities held for sale within the "Other current liabilities" caption of the accompanying Balance Sheet as of year-end 2013. See Footnote No. 7, "Acquisitions and Dispositions" for more information. Accordingly, the “Long-term debt” caption in the accompanying Balance Sheets includes the remaining $5 million for year-end 2013 and $50 million for year-end 2012 that represents the present value of net minimum lease payments for capital leases. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||
Related Party Transactions | ' | |||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||
Equity Method Investments | ||||||||||||
We have equity method investments in entities that own properties for which we provide management and/or franchise services and receive fees. We also have equity method investments in entities that provide management and/or franchise service to hotels and receive fees. In addition, in some cases we provide loans, preferred equity or guarantees to these entities. We generally own between 10 and 49 percent of these equity method investments. Undistributed earnings attributable to our equity method investments represented approximately $2 million of our consolidated retained earnings at year-end 2013. | ||||||||||||
The following tables present financial data resulting from transactions with these related parties: | ||||||||||||
Income Statement Data | ||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||
Base management fees | $ | 17 | $ | 26 | $ | 37 | ||||||
Incentive management fees | 1 | 5 | — | |||||||||
Cost reimbursements | 236 | 315 | 383 | |||||||||
Owned, leased, corporate housing, and other | 1 | 3 | 8 | |||||||||
Total revenue | $ | 255 | $ | 349 | $ | 428 | ||||||
General, administrative, and other | $ | (5 | ) | $ | — | $ | (5 | ) | ||||
Reimbursed costs | (236 | ) | (315 | ) | (383 | ) | ||||||
Gains and other income | — | 43 | 4 | |||||||||
Interest expense-capitalized | — | 1 | 2 | |||||||||
Interest income | 4 | 3 | 3 | |||||||||
Equity in losses | (5 | ) | (13 | ) | (13 | ) | ||||||
Balance Sheet Data | ||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||||||
Current assets-accounts and notes receivable | $ | 22 | $ | 18 | ||||||||
Contract acquisition costs and other | 20 | 21 | ||||||||||
Equity and cost method investments | 207 | 195 | ||||||||||
Deferred taxes, net asset | 16 | 17 | ||||||||||
Other | 16 | 20 | ||||||||||
Current liabilities: | ||||||||||||
Other | (13 | ) | (2 | ) | ||||||||
Other long-term liabilities | (2 | ) | (2 | ) | ||||||||
Summarized information for the entities in which we have equity method investments is as follows: | ||||||||||||
Income Statement Data | ||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||
Sales | $ | 721 | $ | 902 | $ | 1,215 | ||||||
Net income (loss) | $ | 15 | $ | (4 | ) | $ | (58 | ) | ||||
Balance Sheet Summary | ||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||||||
Assets (primarily comprised of hotel real estate managed by us) | $ | 1,832 | $ | 1,486 | ||||||||
Liabilities | $ | 1,482 | $ | 1,245 | ||||||||
RELATIONSHIP_WITH_MAJOR_CUSTOM
RELATIONSHIP WITH MAJOR CUSTOMER | 12 Months Ended |
Dec. 31, 2013 | |
Relationship with Major Customer Disclosure [Abstract] | ' |
Relationship With Major Customer | ' |
RELATIONSHIP WITH MAJOR CUSTOMER | |
Host Hotels & Resorts, Inc., formerly known as Host Marriott Corporation, and its affiliates (“Host”) owned or leased 66 lodging properties at year-end 2013 and 124 lodging properties at year-end 2012 that we operated under long-term agreements. Over the last three years, we recognized revenues of $1,957 million in 2013, $2,226 million in 2012, and $2,210 million in 2011 from those lodging properties, and included those revenues in our North American Full-Service, North American Limited-Service, and International segments. | |
Host is also a partner in certain unconsolidated partnerships that own lodging properties that we operate under long-term agreements. Host was affiliated with ten such properties at year-end 2013, ten such properties at year-end 2012, and five such properties at year-end 2011. We recognized revenues of $87 million in 2013, $75 million in 2012, and $59 million in 2011 from those lodging properties, and included those revenues in our North American Full-Service and International segments. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Basis of Presentation | ' | ||||||||||
Basis of Presentation | |||||||||||
The 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 Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Statements of Income as our “Income Statements,” (iii) our 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 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 recast the business segment information originally included in our 2013 Form 10-K filed on February 20, 2014 to be consistent with the presentation of reportable segments in our Quarterly Report on Form 10-Q for the period ended March 31, 2014. See Footnote No. 14, "Business Segments." | |||||||||||
On November 21, 2011 ("the spin-off date"), we completed a spin-off of our timeshare operations and timeshare development business through a special tax-free dividend to our shareholders of all of the issued and outstanding common stock (the "spin-off") of our wholly owned subsidiary Marriott Vacations Worldwide Corporation ("MVW"). Because of our significant continuing involvement in MVW operations after the spin-off (by virtue of license and other agreements between us and MVW), we continue to include the historical financial results before the spin-off date of our former Timeshare segment in our historical financial results as a component of continuing operations. See Footnote No. 15, "Spin-off," for more information on the spin-off. | |||||||||||
Preparation of financial statements that conform with U.S. generally accepted accounting principles ("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. | |||||||||||
The accompanying Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position at fiscal year-end 2013 and fiscal year-end 2012 and the results of our operations and cash flows for fiscal years 2013, 2012, and 2011. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements. We also reclassified depreciation that third party owners reimburse to us which is included in the "Reimbursed costs" caption of our Income Statements, from the "Depreciation and amortization" caption to the "Working capital changes and other" caption of the Cash Flow Statement for all prior years presented to conform to our 2013 presentation. | |||||||||||
Fiscal Year | ' | ||||||||||
Fiscal Year | |||||||||||
Beginning with our 2013 fiscal year, we changed our financial reporting cycle to a calendar year-end reporting cycle and an end-of-month quarterly reporting cycle. Accordingly, our 2013 fiscal year began on December 29, 2012 (the day after the end of the 2012 fiscal year) and ended on December 31, 2013. Historically, our fiscal year was a 52-53 week fiscal year that ended on the Friday nearest to December 31. As a result, our 2013 fiscal year had 4 more days than the 2012 and 2011 fiscal years. We have not restated and do not plan to restate historical results. | |||||||||||
The table below shows each completed fiscal year we refer to in this report, the date the fiscal year ended, and the number of days in that fiscal year: | |||||||||||
Fiscal Year | Fiscal Year-End Date | Number of Days | Fiscal Year | Fiscal Year-End Date | Number of Days | ||||||
2013 | December 31, 2013 | 368 | 2008 | January 2, 2009 | 371 | ||||||
2012 | December 28, 2012 | 364 | 2007 | December 28, 2007 | 364 | ||||||
2011 | December 30, 2011 | 364 | 2006 | December 29, 2006 | 364 | ||||||
2010 | December 31, 2010 | 364 | 2005 | December 30, 2005 | 364 | ||||||
2009 | January 1, 2010 | 364 | 2004 | December 31, 2004 | 364 | ||||||
Beginning in 2014, our fiscal years will be the same as the corresponding calendar year (each beginning on January 1 and ending on December 31, and containing 365 or 366 days). | |||||||||||
Revenue Recognition | ' | ||||||||||
Revenue Recognition | |||||||||||
Our revenues include: (1) base management and incentive management fees; (2) franchise fees (including licensing fees from MVW after the spin-off of $61 million for 2013, $61 million for 2012 and $4 million for 2011); (3) revenues from lodging properties we own or lease; and (4) cost reimbursements. Management fees are typically composed of a base fee, which is a percentage of the revenues of hotels, and an incentive fee, which is generally based on hotel profitability. Franchise fees are typically composed of initial application fees and continuing royalties generated from our franchise programs, which permit the hotel owners and operators to use certain of our brand names. Cost reimbursements include direct and indirect costs that are reimbursed to us by properties that we manage, franchise, or license. | |||||||||||
Base Management and Incentive Management Fees: We recognize base management fees as revenue when we earn them under the contracts. In interim periods and at year-end, we recognize incentive management fees that would be due as if the contracts were to terminate at that date, exclusive of any termination fees payable or receivable by us. | |||||||||||
Franchise Fee and License Fee Revenue: We recognize franchise fees and license fees as revenue in each accounting period as we earn those fees from the franchisee or licensee under the contracts. | |||||||||||
Owned and Leased Units: We recognize room sales and revenues from other guest services for our owned and leased units when rooms are occupied and when we have rendered the services. | |||||||||||
Cost Reimbursements: We recognize cost reimbursements from managed, franchised, and licensed properties when we incur the related reimbursable costs. These costs primarily consist of payroll and related expenses at managed properties where we are the employer and also include certain operational and administrative costs as provided for in our contracts with the owners. As these costs have no added markup, the revenue and related expense have no impact on either our operating or net income. | |||||||||||
Other Revenue: Includes other third-party licensing fees, branding fees for third-party residential sales and credit card licensing, land rental income, and other revenue. | |||||||||||
Timeshare Revenue Recognition Before the 2011 Spin-off: For periods before the spin-off, our revenues also included revenue from our former Timeshare segment including cost reimbursements revenue and timeshare sales and services revenue, the latter of which included the following types of revenue: | |||||||||||
Timeshare and Fractional Intervals and Condominiums: Before the spin-off, we recognized sales when: (1) we had received a minimum of 10 percent of the purchase price; (2) the purchaser’s period to cancel for a refund had expired; (3) we deemed the receivables to be collectible; and (4) we had attained certain minimum sales and construction levels. We deferred all revenue using the deposit method for sales that did not meet all four of these criteria. For sales that did not qualify for full revenue recognition as the project had progressed beyond the preliminary stages but had not yet reached completion, we deferred all revenue and profit which we then recognized in earnings using the percentage of completion method. | |||||||||||
Timeshare Points-Based Use System Revenue: Before the spin-off, we recognized sales under our points-based use system when the criteria noted in the “Timeshare and Fractional Intervals and Condominiums” caption were met, as we considered these sales to be sales of real estate. | |||||||||||
Timeshare Residential (Stand-Alone Structures): Before the spin-off, we recognized sales under the full accrual method of accounting when we received our proceeds and transferred title at settlement. | |||||||||||
Timeshare Interest Income: Before the spin-off, we reflected interest income from “Loans to timeshare owners” in our 2011 Income Statement in the "Timeshare sales and services" revenue caption | |||||||||||
Ground Leases | ' | ||||||||||
Ground Leases | |||||||||||
We are the lessee of land under long-term operating leases that include scheduled increases in minimum rents. We recognize these scheduled rent increases on a straight-line basis over the initial lease term. | |||||||||||
Real Estate Sales | ' | ||||||||||
Real Estate Sales | |||||||||||
We reduce gains on sales of real estate by the maximum exposure to loss if we have continuing involvement with the property and do not transfer substantially all of the risks and rewards of ownership. In sales transactions where we retain a management contract, the terms and conditions of the management contract are generally comparable to the terms and conditions of the management contracts obtained directly with third-party owners in competitive bid processes. | |||||||||||
Profit Sharing Plan | ' | ||||||||||
Profit Sharing Plan | |||||||||||
We contribute to a profit sharing plan for the benefit of employees meeting certain eligibility requirements who elect to participate in the plan. Participating employees specify the percentage of salary deferred. | |||||||||||
Self-Insurance Programs | ' | ||||||||||
Self-Insurance Programs | |||||||||||
We self-insure for certain levels of property, liability, workers’ compensation and employee medical coverage. We accrue estimated costs of these self-insurance programs at the present value of projected settlements for known and incurred but not reported claims. We use a discount rate of 2.0 percent to determine the present value of the projected settlements, which we consider to be reasonable given our history of settled claims, including payment patterns and the fixed nature of the individual settlements. | |||||||||||
We are subject to a variety of assessments for our insurance activities, including those by state guaranty funds and workers’ compensation second-injury funds. We record our liabilities for these assessments in our Balance Sheets within the other current liabilities line. | |||||||||||
Our Rewards Programs | ' | ||||||||||
Our Rewards Programs | |||||||||||
Marriott Rewards and The Ritz-Carlton Rewards are our frequent guest loyalty programs. Program members earn points based on the money they spend at our lodging operations, purchases of timeshare interval, fractional ownership, and residential products (through MVW for periods after the spin-off date) and, to a lesser degree, through participation in affiliated partners’ programs, such as those offered by car rental, and credit card companies. Members can redeem points, which we track on their behalf, for stays at most of our lodging operations, airline tickets, airline frequent flyer program miles, rental cars, and a variety of other awards. Points cannot be redeemed for cash. We provide Marriott Rewards and The Ritz-Carlton Rewards as marketing programs to participating properties, with the objective of operating the programs on a break-even basis to us. We sell the points for amounts that we expect will, in the aggregate, equal the costs of point redemptions and program operating costs over time. | |||||||||||
We estimate the value of the future redemption obligation using statistical formulas that project timing of future point redemption based on historical levels, including an estimate of the “breakage” for points that members will never redeem, and an estimate of the points that members will eventually redeem. These judgment factors determine our rewards programs' required liability for outstanding points. That liability totaled $2,141 million at year-end 2013 and $2,021 million at year-end 2012. A ten percent reduction in the estimate of “breakage” would have increased the estimated year-end 2013 liability by $139 million. | |||||||||||
We defer revenue we receive from managed, franchised, and Marriott-owned/leased hotels and program partners. Our management and franchise agreements require that properties reimburse us currently for the costs of operating the rewards programs, including marketing, promotion, communication with, and performing member services for rewards program members. Due to the requirement that properties reimburse us for program operating costs as incurred, we recognize the related cost reimbursements revenues from properties for our rewards programs when we incur and expense such costs. We recognize the component of revenue from program partners that corresponds to program maintenance services over the expected life of the points awarded. When points are redeemed we recognize the amounts we previously deferred as revenue and the corresponding expense relating to the costs of the awards redeemed. | |||||||||||
Guarantees | ' | ||||||||||
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, as described below in this footnote under the heading "Fair Value Measurements." We generally base our calculation of the estimated fair value of a guarantee on the income approach or the market approach, depending on the type of guarantee. For the income approach, we use internally developed discounted cash flow and Monte Carlo simulation models that include the following assumptions, among others: projections of revenues and expenses and related cash flows based on assumed growth rates and demand trends; historical volatility of projected performance; the guaranteed obligations; and applicable discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. For the market approach, we use internal analyses based primarily on market comparable data and our assumptions about market capitalization rates, credit spreads, growth rates, and inflation. | |||||||||||
The offsetting entry for the guarantee liability depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. In most cases, when we do not forecast any funding, we amortize the liability into income on a straight-line basis over the remaining term of the guarantee. On a quarterly basis, we evaluate all material estimated liabilities based on the operating results and the terms of the guarantee. If we conclude that it is probable that we will be required to fund a greater amount than previously estimated, we record a loss unless the advance would be recoverable in the form of a loan. | |||||||||||
Rebates and Allowances | ' | ||||||||||
Rebates and Allowances | |||||||||||
We participate in various vendor rebate and allowance arrangements as a manager of hotel properties. Three types of programs that are common in the hotel industry are sometimes referred to as “rebates” or “allowances,” including unrestricted rebates, marketing (restricted) rebates, and sponsorships. These arrangements have the primary business purposes of securing favorable pricing for our hotel owners for various products and services and enhancing resources for promotional campaigns that certain vendors co-sponsor. More specifically, unrestricted rebates are funds returned to the buyer, generally based on volumes or quantities of goods purchased. Marketing (restricted) allowances are funds allocated by vendor agreements for certain marketing or other joint promotional initiatives. Sponsorships are funds paid by vendors, generally used by the vendor to gain exposure at meetings and events, which we account for as a reduction of the cost of the event. | |||||||||||
We account for rebates and allowances as adjustments of the prices of the vendors’ products and services. We show vendor costs as reimbursed costs and the reimbursement of those costs to us as cost reimbursements revenue; and accordingly we reflect rebates as a reduction of these line items. | |||||||||||
Cash and Equivalents | ' | ||||||||||
Cash and Equivalents | |||||||||||
We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents. | |||||||||||
Assets Held for Sale | ' | ||||||||||
Assets Held for Sale | |||||||||||
We consider properties to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and we expect the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given its current market value. Upon designation of a property as an asset held for sale, we record the property's value at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and we cease depreciation. | |||||||||||
Accounts Receivable | ' | ||||||||||
Accounts Receivable | |||||||||||
Our accounts receivable primarily consist of amounts due from hotel owners with whom we have management and franchise agreements and include reimbursements of costs we incurred on behalf of managed and franchised properties. We generally collect these receivables within 30 days. We record an accounts receivable reserve when losses are probable, based on an assessment of historical collection activity and current business conditions. | |||||||||||
Loan Loss Reserves | ' | ||||||||||
Loan Loss Reserves | |||||||||||
Senior, Mezzanine, and Other Loans | |||||||||||
We may make loans to owners of hotels that we operate or franchise, generally to facilitate the development of a hotel and sometimes to facilitate brand programs or initiatives. We expect the owners to repay the loans in accordance with the loan agreements, or earlier as the hotels mature and capital markets permit. We use metrics such as loan-to-value ratios and debt service coverage, and other information about collateral and from third party rating agencies to assess the credit quality of the loan receivable, both upon entering into the loan agreement and on an ongoing basis as applicable. | |||||||||||
On a regular basis, we individually assess all of these loans for impairment. We use internally generated cash flow projections to determine if we expect the loans to be repaid under the terms of the loan agreements. If we conclude that it is probable a borrower will not repay a loan in accordance with its terms, we consider the loan impaired and begin recognizing interest income on a cash basis. To measure impairment, we calculate the present value of expected future cash flows discounted at the loan’s original effective interest rate or the estimated fair value of the collateral. If the present value or the estimated collateral is less than the carrying value of the loan receivable, we establish a specific impairment reserve for the difference. | |||||||||||
If it is likely that a loan will not be collected based on financial or other business indicators, including our historical experience, our policy is to charge off the loan in the quarter in which we deem it uncollectible. | |||||||||||
Goodwill | ' | ||||||||||
Goodwill | |||||||||||
We assess goodwill for potential impairment at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. In evaluating goodwill for impairment, we first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing of the goodwill assigned to the reporting unit is required. However, if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we perform a two-step goodwill impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment we will recognize, if any. At year-end 2013 and year-end 2012, we concluded that it was not more likely than not that the fair value of any reporting unit was less than its carrying value. | |||||||||||
In the first step of the two-step goodwill impairment test, we compare the estimated fair value of the reporting unit with its carrying value. If the estimated fair value of the reporting unit exceeds its carrying amount, no further analysis is needed. If, however, the estimated fair value of the reporting unit is less than its carrying amount, we proceed to the second step and calculate the implied fair value of the reporting unit goodwill to determine whether any impairment is required. We calculate the implied fair value of the reporting unit goodwill by allocating the estimated fair value of the reporting unit to all of the unit's assets and liabilities as if the unit had been acquired in a business combination. If the carrying value of the reporting unit’s goodwill exceeds the implied fair value of the goodwill, we recognize an impairment loss in the amount of that excess. In allocating the estimated fair value of the reporting unit to all of the assets and liabilities of the reporting unit, we use industry and market data, as well as knowledge of the industry and our past experience. | |||||||||||
We calculate the estimated fair value of a reporting unit using the income approach. For the income approach, we use internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and macro general economic condition projections, and our expectations. | |||||||||||
Investments | ' | ||||||||||
Investments | |||||||||||
We consolidate entities that we control. We account for investments in joint ventures using the equity method of accounting when we exercise significant influence over the venture. If we do not exercise significant influence, we account for the investment using the cost method of accounting. We account for investments in limited partnerships and limited liability companies using the equity method of accounting when we own more than a minimal investment. Our ownership interest in these equity method investments varies generally from 10 percent to 49 percent. See Footnote No. 4, "Fair Value of Financial Instruments" for additional information on available-for-sale securities. When we sell available-for-sale securities, we determine the cost basis of the securities sold using specific identification, meaning that we track our securities individually. | |||||||||||
Valuation of Intangibles and Long-Lived Assets | ' | ||||||||||
Valuation of Intangibles and Long-Lived Assets | |||||||||||
We test intangibles and long-lived asset groups for recoverability when changes in circumstances indicate that we may not be able to recover the carrying value; for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. We also test recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and we expect to complete the plan within a year. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect the asset group will generate. If the comparison indicates that we will not be able to recover the carrying value of an asset group, we recognize an impairment loss for the amount by which the carrying value exceeds the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life. | |||||||||||
We calculate the estimated fair value of an intangible asset or asset group using the income approach or the market approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation. | |||||||||||
For information on impairment losses that we recorded in 2011 for long-lived assets, see Footnote No. 15, “Spin-off.” | |||||||||||
Valuation of Investments in Ventures | ' | ||||||||||
Valuation of Investments in Ventures | |||||||||||
We may hold a minority equity interest in ventures established to develop or acquire and own hotel properties. These ventures are generally limited liability companies or limited partnerships. | |||||||||||
We evaluate an investment in a venture for impairment when circumstances indicate that we may not be able to recover the carrying value, for example due to loan defaults, significant under performance relative to historical or projected operating performance, or significant negative industry or economic trends. | |||||||||||
We impair investments we account for using the equity and cost methods of accounting when we determine that there has been an “other-than-temporary” decline in the venture’s estimated fair value compared to its carrying value. Additionally, a venture's commitment to a plan to sell some or all of its assets could cause us to evaluate the recoverability of the venture's individual long-lived assets and possibly the venture itself. | |||||||||||
We calculate the estimated fair value of an investment in a venture using either a market approach or an income approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation. | |||||||||||
For information on an impairment loss that we recorded in 2012 for a cost method investment, see Footnote No. 4, “Fair Value of Financial Instruments.” | |||||||||||
Fair Value Measurements | ' | ||||||||||
Fair Value Measurements | |||||||||||
We have various financial instruments we must measure at fair value on a recurring basis, including certain marketable securities and derivatives. See Footnote No. 4, “Fair Value of Financial Instruments,” for further information. We also apply the provisions of fair value measurement to various nonrecurring measurements for our financial and nonfinancial assets and liabilities. | |||||||||||
Applicable accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy: | |||||||||||
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. | |||||||||||
Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||
Level 3 includes unobservable inputs that reflect our assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data. | |||||||||||
Derivative Instruments | ' | ||||||||||
Derivative Instruments | |||||||||||
We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if, at inception, we expect the derivative to be highly effective in offsetting the underlying hedged cash flows or fair value and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying cash flow hedges, we record changes in fair value in other comprehensive income (“OCI”). We release the derivative’s gain or loss from OCI to match the timing of the underlying hedged items’ effect on earnings. | |||||||||||
We review the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, we release gains and losses from OCI based on the timing of the underlying cash flows or revenue recognized, unless the termination results from the failure of the intended transaction to occur in the expected time frame. Such untimely transactions require us to immediately recognize in earnings the gains and/or losses that we previously recorded in OCI. | |||||||||||
Changes in interest rates, currency exchange rates, and equity securities expose us to market risk. We manage our exposure to these risks by monitoring available financing alternatives, as well as through development and application of credit granting policies. We also use derivative instruments, including cash flow hedges, net investment in non-U.S. operations hedges, fair value hedges, and other derivative instruments, as part of our overall strategy to manage our exposure to market risks. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. See Footnote No. 4, “Fair Value of Financial Instruments,” for additional information. | |||||||||||
Non-U.S. Operations | ' | ||||||||||
Non-U.S. Operations | |||||||||||
The U.S. dollar is the functional currency of our consolidated and unconsolidated entities operating in the United States. The functional currency of our consolidated and unconsolidated entities operating outside of the United States is generally the primary currency of the economic environment in which the entity primarily generates and expends cash. We translate the financial statements of consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars, and we do the same, as needed, for unconsolidated entities whose functional currency is not the U.S. dollar. We translate assets and liabilities at the exchange rate in effect as of the financial statement date, and translate income statement accounts using the weighted average exchange rate for the period. We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders’ equity. We report gains and losses from currency exchange rate changes for intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from non-U.S. currency transactions, currently in operating costs and expenses | |||||||||||
Legal Contingencies | ' | ||||||||||
Legal Contingencies | |||||||||||
We are subject to various legal proceedings and claims, the outcomes of which are uncertain. We record an accrual for legal contingencies when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the loss. In making such determinations we evaluate, among other things, the probability of an unfavorable outcome and, when we believe it probable that a liability has been incurred, our ability to make a reasonable estimate of the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances. | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | |||||||||||
We record the amounts of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events we have recognized in our Financial Statements or tax returns, using judgment in assessing future profitability and the likely future tax consequences of those events. We base our estimates of deferred tax assets and liabilities on current tax laws, rates and interpretations, and, in certain cases, business plans and other expectations about future outcomes. We develop our estimates of future profitability based on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. | |||||||||||
Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of our deferred tax liabilities or the valuations of our deferred tax assets over time. Our accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. | |||||||||||
For tax positions we have taken or expect to take in a tax return, we apply a more likely than not threshold, under which we must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, in order to continue to recognize the benefit. In determining our provision for income taxes, we use judgment, reflecting our estimates and assumptions, in applying the more likely than not threshold. We recognize accrued interest and penalties for our unrecognized tax benefits as a component of tax expense. | |||||||||||
For information about income taxes and deferred tax assets and liabilities, see Footnote No. 2, “Income Taxes.” | |||||||||||
New Accounting Standards | ' | ||||||||||
New Accounting Standards | |||||||||||
We do not expect that accounting standard updates issued to date and that are effective after December 31, 2013 will have a material effect on our Financial Statements. | |||||||||||
Cost Method Investments | ' | ||||||||||
We estimate the fair value of our cost method investments by applying a cap rate to stabilized earnings (a market approach using Level 3 inputs). | |||||||||||
Earnings Per Share Dilutive Securities | ' | ||||||||||
We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. | |||||||||||
Variable Interest Entity | ' | ||||||||||
Under the applicable accounting guidance for the consolidation of variable interest entities, we analyze our variable interests, including loans, guarantees, and equity investments, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analysis to determine if we must consolidate a variable interest entity as its primary beneficiary. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Schedule of Fiscal Years | ' | ||||||||||
The table below shows each completed fiscal year we refer to in this report, the date the fiscal year ended, and the number of days in that fiscal year: | |||||||||||
Fiscal Year | Fiscal Year-End Date | Number of Days | Fiscal Year | Fiscal Year-End Date | Number of Days | ||||||
2013 | December 31, 2013 | 368 | 2008 | January 2, 2009 | 371 | ||||||
2012 | December 28, 2012 | 364 | 2007 | December 28, 2007 | 364 | ||||||
2011 | December 30, 2011 | 364 | 2006 | December 29, 2006 | 364 | ||||||
2010 | December 31, 2010 | 364 | 2005 | December 30, 2005 | 364 | ||||||
2009 | January 1, 2010 | 364 | 2004 | December 31, 2004 | 364 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
The (Provision for) Benefit from Income Taxes | ' | ||||||||||||
Our provision for income taxes for the last three fiscal years consists of: | |||||||||||||
($ in millions) | 2013 | 2012 | 2011 | ||||||||||
Current | -U.S. Federal | $ | (139 | ) | $ | 6 | $ | 53 | |||||
-U.S. State | (17 | ) | (8 | ) | — | ||||||||
-Non-U.S. | (44 | ) | (34 | ) | (55 | ) | |||||||
(200 | ) | (36 | ) | (2 | ) | ||||||||
Deferred | -U.S. Federal | (68 | ) | (211 | ) | (116 | ) | ||||||
-U.S. State | (10 | ) | (30 | ) | (10 | ) | |||||||
-Non-U.S. | 7 | (1 | ) | (30 | ) | ||||||||
(71 | ) | (242 | ) | (156 | ) | ||||||||
$ | (271 | ) | $ | (278 | ) | $ | (158 | ) | |||||
Unrecognized Tax Benefits Reconciliation | ' | ||||||||||||
The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2011 to the end of 2013: | |||||||||||||
($ in millions) | Amount | ||||||||||||
Unrecognized tax benefit at beginning of 2011 | $ | 39 | |||||||||||
Change attributable to tax positions taken during a prior period | (10 | ) | |||||||||||
Change attributable to withdrawal of tax positions previously taken or expected to be taken | (6 | ) | |||||||||||
Change attributable to tax positions taken during the current period | 19 | ||||||||||||
Decrease attributable to lapse of statute of limitations | (3 | ) | |||||||||||
Unrecognized tax benefit at year-end of 2011 | 39 | ||||||||||||
Change attributable to tax positions taken during the current period | 12 | ||||||||||||
Decrease attributable to settlements with taxing authorities | (20 | ) | |||||||||||
Decrease attributable to lapse of statute of limitations | (2 | ) | |||||||||||
Unrecognized tax benefit at year-end of 2012 | 29 | ||||||||||||
Change attributable to tax positions taken during the current period | 8 | ||||||||||||
Decrease attributable to settlements with taxing authorities | (2 | ) | |||||||||||
Decrease attributable to lapse of statute of limitations | (1 | ) | |||||||||||
Unrecognized tax benefit at year-end of 2013 | $ | 34 | |||||||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
We had the following total deferred tax assets and liabilities at year-end 2013 and year-end 2012: | |||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | |||||||||||
Deferred tax assets | $ | 926 | $ | 950 | |||||||||
Deferred tax liabilities | (60 | ) | (25 | ) | |||||||||
Net deferred taxes | $ | 866 | $ | 925 | |||||||||
The following table details the composition of our net deferred tax balances at year-end 2013 and year-end 2012: | |||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | |||||||||||
Balance Sheet Caption | |||||||||||||
Current deferred taxes, net | $ | 252 | $ | 280 | |||||||||
Long-term deferred taxes, net | 647 | 676 | |||||||||||
Current liabilities, other | (19 | ) | (13 | ) | |||||||||
Long-term liabilities, other | (14 | ) | (18 | ) | |||||||||
Net deferred taxes | $ | 866 | $ | 925 | |||||||||
The following table shows the tax effect of each type of temporary difference and carry-forward that gave rise to a significant portion of our deferred tax assets and liabilities as of year-end 2013 and year-end 2012: | |||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | |||||||||||
Employee benefits | $ | 340 | $ | 321 | |||||||||
Net operating loss carry-forwards | 293 | 294 | |||||||||||
Tax credits | 273 | 328 | |||||||||||
Reserves | 61 | 63 | |||||||||||
Frequent guest program | 30 | 43 | |||||||||||
Self-insurance | 23 | 19 | |||||||||||
Deferred income | 23 | 4 | |||||||||||
Joint venture interests | (23 | ) | (11 | ) | |||||||||
Property, equipment, and intangible assets | (37 | ) | (14 | ) | |||||||||
Other, net | 48 | 23 | |||||||||||
Deferred taxes | 1,031 | 1,070 | |||||||||||
Less: valuation allowance | (165 | ) | (145 | ) | |||||||||
Net deferred taxes | $ | 866 | $ | 925 | |||||||||
Reconciliation of the U.S. Statutory Tax Rate to Our Effective Income Tax Rate for Continuing Operations | ' | ||||||||||||
The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. statutory tax rate | 35 | % | 35 | % | 35 | % | |||||||
U.S. state income taxes, net of U.S. federal tax benefit | 2.6 | 2.6 | 2.3 | ||||||||||
Nondeductible expenses | 0.5 | 0.3 | 1.8 | ||||||||||
Non-U.S. income | (5.7 | ) | (3.9 | ) | (0.9 | ) | |||||||
Change in valuation allowance (1) | 0.3 | (0.2 | ) | 8.9 | |||||||||
Tax credits | (0.4 | ) | (0.4 | ) | (1.0 | ) | |||||||
Other, net | (2.1 | ) | (0.7 | ) | (1.7 | ) | |||||||
Effective rate | 30.2 | % | 32.7 | % | 44.4 | % | |||||||
(1) | Primarily for the 2011 additional impairment of certain deferred tax assets transferred to MVW, as discussed earlier in this footnote. |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||
Additional Information on RSUs | ' | ||||||||||||||||||||||||||
The following table provides additional information on Marriott RSUs for the last three fiscal years: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Share-based compensation expense (in millions) | $ | 101 | $ | 83 | $ | 90 | |||||||||||||||||||||
Weighted average grant-date fair value (per Marriott RSU) | $ | 38 | $ | 35 | $ | 40 | |||||||||||||||||||||
Aggregate intrinsic value of converted and distributed Marriott RSUs (in millions) | $ | 125 | $ | 91 | $ | 113 | |||||||||||||||||||||
Changes in Outstanding Restricted Stock Unit Grants | ' | ||||||||||||||||||||||||||
The following table shows the 2013 changes in our outstanding Marriott RSU grants and the associated weighted average grant-date fair values: | |||||||||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||||||||
Marriott RSUs | Average | ||||||||||||||||||||||||||
(in millions) | Grant-Date | ||||||||||||||||||||||||||
Fair Value (per RSU) | |||||||||||||||||||||||||||
Outstanding at year-end 2012 | 7.4 | $ | 31 | ||||||||||||||||||||||||
Granted during 2013 (2) | 2.7 | 38 | |||||||||||||||||||||||||
Distributed during 2013 | (3.0 | ) | 29 | ||||||||||||||||||||||||
Forfeited during 2013 | (0.3 | ) | 34 | ||||||||||||||||||||||||
Outstanding at year-end 2013 (1) | 6.8 | $ | 35 | ||||||||||||||||||||||||
(1) | Includes 0.2 million Marriott RSUs held by MVW employees. | ||||||||||||||||||||||||||
(2) | Includes 0.2 million S&P RSUs granted to named executive officers. | ||||||||||||||||||||||||||
Changes in Outstanding Stock Option Program Awards | ' | ||||||||||||||||||||||||||
The following table shows the 2013 changes in our outstanding Marriott Stock Option Program awards and the associated weighted average exercise prices: | |||||||||||||||||||||||||||
Number of Marriott Stock Options | Weighted Average | ||||||||||||||||||||||||||
(in millions) | Exercise Price (per Option) | ||||||||||||||||||||||||||
Outstanding at year-end 2012 | 9.5 | $ | 19 | ||||||||||||||||||||||||
Granted during 2013 | 0.1 | 39 | |||||||||||||||||||||||||
Exercised during 2013 | (5.0 | ) | 17 | ||||||||||||||||||||||||
Forfeited during 2013 | — | 46 | |||||||||||||||||||||||||
Outstanding at year-end 2013 (1) | 4.6 | $ | 22 | ||||||||||||||||||||||||
(1) | Includes 0.1 million Marriott stock options held by MVW employees. | ||||||||||||||||||||||||||
Stock Options Issued Under the Stock Option Program Awards | ' | ||||||||||||||||||||||||||
The following table shows the Marriott stock options issued under the Stock Option Program awards outstanding at year-end 2013, as well as those exercisable on that date (those where the exercise price was less than the market price of our common stock on that date): | |||||||||||||||||||||||||||
Outstanding | Exercisable | ||||||||||||||||||||||||||
Range of | Number of | Weighted | Weighted | Number of | Weighted | Weighted | |||||||||||||||||||||
Exercise Prices | Stock | Average | Average | Stock | Average | Average | |||||||||||||||||||||
Options | Exercise | Remaining | Options | Exercise | Remaining | ||||||||||||||||||||||
(in millions) | Price (per Option) | Life | (in millions) | Price (per Option) | Life | ||||||||||||||||||||||
(in years) | (in years) | ||||||||||||||||||||||||||
$ | 13 | to | $ | 17 | 2.5 | $ | 16 | 1 | 2.5 | $ | 16 | 1 | |||||||||||||||
18 | to | 22 | 0.6 | 22 | 1 | 0.6 | 22 | 1 | |||||||||||||||||||
23 | to | 46 | 1.5 | 32 | 4 | 1.1 | 30 | 3 | |||||||||||||||||||
13 | to | 46 | 4.6 | 22 | 2 | 4.2 | 21 | 2 | |||||||||||||||||||
Number of Options Granted and Associated Weighted Average Grant-Date Fair Values and Weighted Average Exercise Prices | ' | ||||||||||||||||||||||||||
The following table shows the number of Marriott stock options we granted in the last three fiscal years and the associated weighted average grant-date fair values and weighted average exercise prices: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Options granted | 96,960 | 255,761 | 19,192 | ||||||||||||||||||||||||
Weighted average grant-date fair value (per option) | $ | 13 | $ | 12 | $ | 15 | |||||||||||||||||||||
Weighted average exercise price (per option) | $ | 39 | $ | 35 | $ | 38 | |||||||||||||||||||||
Intrinsic Value of Outstanding Stock Options and Exercisable Stock Option | ' | ||||||||||||||||||||||||||
The following table shows the intrinsic value (the amount by which the market price of the underlying common stock exceeded the aggregate exercise price of the stock option) of all outstanding Marriott stock options and of exercisable Marriott stock options at year-end 2013 and 2012: | |||||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | |||||||||||||||||||||||||
Outstanding stock options | $ | 126 | $ | 169 | |||||||||||||||||||||||
Exercisable stock options | 121 | 168 | |||||||||||||||||||||||||
Changes in Outstanding SARs | ' | ||||||||||||||||||||||||||
The following table shows the 2013 changes in our outstanding Marriott SARs and the associated weighted average exercise prices: | |||||||||||||||||||||||||||
Number of SARs | Weighted Average | ||||||||||||||||||||||||||
(in millions) | Exercise Price | ||||||||||||||||||||||||||
Outstanding at year-end 2012 | 6.2 | $ | 31 | ||||||||||||||||||||||||
Granted during 2013 | 0.7 | 39 | |||||||||||||||||||||||||
Exercised during 2013 | (0.5 | ) | 30 | ||||||||||||||||||||||||
Forfeited during 2013 | — | 41 | |||||||||||||||||||||||||
Outstanding at year-end 2013 (1) | 6.4 | $ | 32 | ||||||||||||||||||||||||
(1) | Includes 0.2 million Marriott SARs held by MVW employees. | ||||||||||||||||||||||||||
Number of Employee SARs and Director SARs Granted, Associated Weighted Average Base Values, And Weighted Average Grant-Date Fair Values | ' | ||||||||||||||||||||||||||
The following tables show the number of Employee Marriott SARs and Director Marriott SARs we granted in the last three fiscal years, the associated weighted average exercise prices, and the associated weighted average grant-date fair values: | |||||||||||||||||||||||||||
Employee Marriott SARs | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Employee Marriott SARs granted (in millions) | 0.7 | 1 | 0.7 | ||||||||||||||||||||||||
Weighted average exercise price (per SAR) | $ | 39 | $ | 35 | $ | 38 | |||||||||||||||||||||
Weighted average grant-date fair value (per SAR) | $ | 13 | $ | 12 | $ | 14 | |||||||||||||||||||||
Director Marriott SARs | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Director Marriott SARs granted | 5,903 | 5,915 | — | ||||||||||||||||||||||||
Weighted average exercise price (per SAR) | $ | 44 | $ | 39 | $ | — | |||||||||||||||||||||
Weighted average grant-date fair value (per SAR) | $ | 15 | $ | 14 | $ | — | |||||||||||||||||||||
Assumptions for Stock Options and Employee SARs | ' | ||||||||||||||||||||||||||
We used the following assumptions to determine the fair value of the SARs and stock options we granted to employees and non-employee directors in 2013 and 2012, and to employees in 2011 (we did not grant SARs to non-employee directors in 2011): | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Expected volatility | 30 - 31% | 31 | % | 32 | % | ||||||||||||||||||||||
Dividend yield | 1.17 | % | 1.01 | % | 0.73 | % | |||||||||||||||||||||
Risk-free rate | 1.8 - 1.9% | 1.7 - 2.0% | 3.4 | % | |||||||||||||||||||||||
Expected term (in years) | 10-Aug | 10-Aug | 8 | ||||||||||||||||||||||||
Share-Based Compensation Expense, Number of Deferred Stock Units Granted, Weighted Average Grant-date Fair Value, and Aggregate Intrinsic Value of Non-Employee Director Deferred Stock Units | ' | ||||||||||||||||||||||||||
The following table shows the share-based compensation expense, the number of deferred stock units we granted, the weighted average grant-date fair value, and the aggregate intrinsic value for the last three fiscal years for non-employee director Marriott deferred stock units: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Share-based compensation expense (in millions) | $ | 1.4 | $ | 1.2 | $ | 1.1 | |||||||||||||||||||||
Non-employee director deferred stock units granted | 31,000 | 27,000 | 29,000 | ||||||||||||||||||||||||
Weighted average grant-date fair value (per share) | $ | 44 | $ | 39 | $ | 36 | |||||||||||||||||||||
Aggregate intrinsic value of shares distributed (in millions) | $ | 0.7 | $ | 1 | $ | 1.4 | |||||||||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities | ' | |||||||||||||||
We show the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table: | ||||||||||||||||
At Year-End 2013 | At Year-End 2012 | |||||||||||||||
($ in millions) | Carrying | Fair Value | Carrying | Fair Value | ||||||||||||
Amount | Amount | |||||||||||||||
Cost method investments | $ | 16 | $ | 17 | $ | 21 | $ | 23 | ||||||||
Senior, mezzanine, and other loans | 142 | 145 | 180 | 172 | ||||||||||||
Marketable securities and other debt securities | 111 | 111 | 56 | 56 | ||||||||||||
Total long-term financial assets | $ | 269 | $ | 273 | $ | 257 | $ | 251 | ||||||||
Senior Notes | $ | (2,185 | ) | $ | (2,302 | ) | $ | (1,833 | ) | $ | (2,008 | ) | ||||
Commercial paper | (834 | ) | (834 | ) | (501 | ) | (501 | ) | ||||||||
Other long-term debt | (123 | ) | (124 | ) | (130 | ) | (139 | ) | ||||||||
Other long-term liabilities | (50 | ) | (50 | ) | (69 | ) | (69 | ) | ||||||||
Total long-term financial liabilities | $ | (3,192 | ) | $ | (3,310 | ) | $ | (2,533 | ) | $ | (2,717 | ) |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share | ' | |||||||||||
The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions, except per share amounts) | ||||||||||||
Computation of Basic Earnings Per Share | ||||||||||||
Net income | $ | 626 | $ | 571 | $ | 198 | ||||||
Weighted average shares outstanding | 305 | 322.6 | 350.1 | |||||||||
Basic earnings per share | $ | 2.05 | $ | 1.77 | $ | 0.56 | ||||||
Computation of Diluted Earnings Per Share | ||||||||||||
Net income | $ | 626 | $ | 571 | $ | 198 | ||||||
Weighted average shares outstanding | 305 | 322.6 | 350.1 | |||||||||
Effect of dilutive securities | ||||||||||||
Employee stock option and SARs plans | 4 | 6.1 | 8 | |||||||||
Deferred stock incentive plans | 0.8 | 0.9 | 0.9 | |||||||||
Restricted stock units | 3.2 | 3.3 | 3.3 | |||||||||
Shares for diluted earnings per share | 313 | 332.9 | 362.3 | |||||||||
Diluted earnings per share | $ | 2 | $ | 1.72 | $ | 0.55 | ||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Composition of our Property and Equipment Balances | ' | |||||||
The following table shows the composition of our property and equipment balances at year-end 2013 and 2012: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Land | $ | 535 | $ | 590 | ||||
Buildings and leasehold improvements | 786 | 703 | ||||||
Furniture and equipment | 789 | 854 | ||||||
Construction in progress | 338 | 383 | ||||||
2,448 | 2,530 | |||||||
Accumulated depreciation | (905 | ) | (991 | ) | ||||
$ | 1,543 | $ | 1,539 | |||||
The following table shows the composition of these property and equipment balances that we recorded as capital leases: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Land | $ | 8 | $ | 30 | ||||
Buildings and leasehold improvements | 68 | 143 | ||||||
Furniture and equipment | 37 | 38 | ||||||
Construction in progress | 1 | 4 | ||||||
114 | 215 | |||||||
Accumulated depreciation | (83 | ) | (82 | ) | ||||
$ | 31 | $ | 133 | |||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Composition of Other Intangible Assets | ' | |||||||
The following table details the composition of our other intangible assets at year-end 2013 and 2012: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Contract acquisition costs and other | $ | 1,554 | $ | 1,512 | ||||
Accumulated amortization | (423 | ) | (397 | ) | ||||
$ | 1,131 | $ | 1,115 | |||||
Carrying Amount of Goodwill | ' | |||||||
The following table details the carrying amount of our goodwill at year-end 2013 and 2012: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Goodwill | $ | 928 | $ | 928 | ||||
Accumulated impairment losses | (54 | ) | (54 | ) | ||||
$ | 874 | $ | 874 | |||||
NOTES_RECEIVABLE_Tables
NOTES RECEIVABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
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 and unamortized discounts for our notes receivable as of year-end 2013: | ||||||||
Notes Receivable Principal Payments (net of reserves and unamortized discounts) and Interest Rates ($ in millions) | Amount | |||||||
2014 | $ | 36 | ||||||
2015 | 85 | |||||||
2016 | 4 | |||||||
2017 | 3 | |||||||
2018 | 5 | |||||||
Thereafter | 45 | |||||||
Balance at year-end 2013 | $ | 178 | ||||||
Weighted average interest rate at year-end 2013 | 4.6 | % | ||||||
Range of stated interest rates at year-end 2013 | 0 to 8.0% | |||||||
Notes Receivable Unamortized Discounts | ' | |||||||
The following table shows the unamortized discounts for our notes receivable as of year-end 2013 and 2012: | ||||||||
Notes Receivable Unamortized Discounts ($ in millions) | Amount | |||||||
Balance at year-end 2012 | $ | 11 | ||||||
Balance at year-end 2013 | $ | 12 | ||||||
Notes Receivable Reserves | ' | |||||||
The following table summarizes the activity for our “Senior, mezzanine, and other loans” notes receivable reserve for 2011, 2012, and 2013: | ||||||||
($ in millions) | Notes Receivable | |||||||
Reserve | ||||||||
Balance at year-end 2010 | $ | 74 | ||||||
Additions | 2 | |||||||
Write-offs | (7 | ) | ||||||
Transfers and other | 9 | |||||||
Balance at year-end 2011 | 78 | |||||||
Additions | 2 | |||||||
Reversals | (1 | ) | ||||||
Write-offs | (1 | ) | ||||||
Transfers and other | 1 | |||||||
Balance at year-end 2012 | 79 | |||||||
Reversals | (2 | ) | ||||||
Transfers and other | 13 | |||||||
Balance at year-end 2013 | $ | 90 | ||||||
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 year-end 2013 and 2012: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Senior, mezzanine, and other loans | $ | 178 | $ | 242 | ||||
Less current portion | (36 | ) | (62 | ) | ||||
$ | 142 | $ | 180 | |||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
We provide detail on our long-term debt balances at year-end 2013 and 2012 in the following table: | ||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||
Senior Notes: | ||||||||
Series G, interest rate of 5.8%, face amount of $316, maturing November 10, 2015 | $ | 312 | $ | 309 | ||||
(effective interest rate of 6.7%)(1) | ||||||||
Series H, interest rate of 6.2%, face amount of $289, maturing June 15, 2016 | 289 | 289 | ||||||
(effective interest rate of 6.4%)(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 J, matured February 15, 2013 | — | 400 | ||||||
Series K, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 | 595 | 594 | ||||||
(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 | — | ||||||
(effective interest rate of 3.6%)(1) | ||||||||
Commercial paper, average interest rate of 0.4% at December 31, 2013 | 834 | 501 | ||||||
$2,000 Credit Facility | — | 15 | ||||||
Other | 180 | 186 | ||||||
3,199 | 2,935 | |||||||
Less current portion classified in: | ||||||||
Other current liabilities (liabilities held for sale) | (46 | ) | — | |||||
Current portion of long-term debt | (6 | ) | (407 | ) | ||||
$ | 3,147 | $ | 2,528 | |||||
(1) | Face amount and effective interest rate are as of year-end 2013. | |||||||
Debt Principal Payments (Net of Unamortized Discounts) | ' | |||||||
We show future principal payments (net of unamortized discounts) for our debt in the following table: | ||||||||
Debt Principal Payments (net of unamortized discounts) ($ in millions) | Amount | |||||||
2014 | $ | 52 | ||||||
2015 | 319 | |||||||
2016 | 297 | |||||||
2017 | 301 | |||||||
2018 | 843 | |||||||
Thereafter | 1,387 | |||||||
Balance at year-end 2013 | $ | 3,199 | ||||||
SELFINSURANCE_RESERVE_FOR_LOSS1
SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Self-Insurance Reserve for Losses and Loss Adjustment Expenses Disclosure [Abstract] | ' | |||||||
Self-Insurance Reserve for Losses and Loss Adjustment Expenses | ' | |||||||
The following table summarizes the activity in our self-insurance reserve for losses and loss adjustment expenses for the last two fiscal years: | ||||||||
($ in millions) | 2013 | 2012 | ||||||
Balance at beginning of year | $ | 342 | $ | 330 | ||||
Less: reinsurance recoverable | (5 | ) | (5 | ) | ||||
Net balance at beginning of year | 337 | 325 | ||||||
Incurred related to: | ||||||||
Current year | 116 | 108 | ||||||
Prior year | 8 | (11 | ) | |||||
Total incurred | 124 | 97 | ||||||
Paid related to: | ||||||||
Current year | (25 | ) | (28 | ) | ||||
Prior year | (79 | ) | (57 | ) | ||||
Total paid | (104 | ) | (85 | ) | ||||
Net balance at end of year | 357 | 337 | ||||||
Add: reinsurance recoverable | 5 | 5 | ||||||
Balance at end of year | $ | 362 | $ | 342 | ||||
COMPREHENSIVE_INCOME_AND_SHARE1
COMPREHENSIVE INCOME AND SHAREHOLDERS’ (DEFICIT) EQUITY (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) Activity | ' | |||||||||||||||
The following table details the accumulated other comprehensive income (loss) activity for 2013, 2012, and 2011: | ||||||||||||||||
($ in millions) | Foreign Currency Translation Adjustments | Other Derivative Instrument Adjustments (1) | Unrealized Gains (Losses) on Available-For-Sale Securities (2) | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at year-end 2010 | $ | (4 | ) | $ | 2 | $ | — | $ | (2 | ) | ||||||
Other comprehensive loss before reclassifications | (31 | ) | (20 | ) | (3 | ) | (54 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | (2 | ) | — | 10 | 8 | |||||||||||
Net other comprehensive (loss) income | (33 | ) | (20 | ) | 7 | (46 | ) | |||||||||
Balance at year-end 2011 | $ | (37 | ) | $ | (18 | ) | $ | 7 | $ | (48 | ) | |||||
Other comprehensive income (loss) before reclassifications | 4 | (2 | ) | — | 2 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1 | 1 | — | 2 | ||||||||||||
Net other comprehensive income (loss) | 5 | (1 | ) | — | 4 | |||||||||||
Balance at year-end 2012 | $ | (32 | ) | $ | (19 | ) | $ | 7 | $ | (44 | ) | |||||
Other comprehensive income before reclassifications | 1 | — | 5 | 6 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | (6 | ) | (6 | ) | ||||||||||
Net other comprehensive loss | 1 | — | (1 | ) | — | |||||||||||
Balance at year-end 2013 | $ | (31 | ) | $ | (19 | ) | $ | 6 | $ | (44 | ) | |||||
(1) | We present the portions of other comprehensive income (loss) before reclassifications that relate to other derivative instrument adjustments net of deferred taxes of $1 million for 2012 and deferred tax benefits of $14 million for 2011. | |||||||||||||||
(2) | We present the portions of other comprehensive income (loss) before reclassifications that relate to unrealized gains (losses) on available-for-sale securities net of deferred taxes of $2 million for 2013 and $4 million for 2012. | |||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||||||
The following table details the effect on net income of significant amounts reclassified out of accumulated other comprehensive loss for 2013: | ||||||||||||||||
($ in millions) | Amounts Reclassified from Accumulated Other Comprehensive Loss | |||||||||||||||
Accumulated Other Comprehensive Loss Components | 2013 | Income Statement Line(s) Item Affected | ||||||||||||||
Other derivative instrument adjustments | ||||||||||||||||
Gains (losses) on cash flow hedges | ||||||||||||||||
Foreign exchange contracts | $ | 3 | Base management and franchise fees | |||||||||||||
Interest rate contracts | (5 | ) | Interest expense | |||||||||||||
(2 | ) | Income before income taxes | ||||||||||||||
2 | Provision for income taxes | |||||||||||||||
Other, net | $ | — | Net income | |||||||||||||
Unrealized gains on available-for-sale securities | ||||||||||||||||
Sale of an available-for-sale security | $ | 10 | Gains and other income | |||||||||||||
10 | Income before income taxes | |||||||||||||||
(4 | ) | Provision for income taxes | ||||||||||||||
$ | 6 | Net income | ||||||||||||||
CONTINGENCIES_Tables
CONTINGENCIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings | ' | |||||||
We show the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for guarantees for which we are the primary obligor at year-end 2013 in the following table: | ||||||||
($ in millions) | Maximum Potential | Liability for Guarantees | ||||||
Guarantee Type | Amount of Future Fundings | |||||||
Debt service | $ | 83 | $ | 4 | ||||
Operating profit | 99 | 40 | ||||||
Other | 17 | 2 | ||||||
Total guarantees where we are the primary obligor | $ | 199 | $ | 46 | ||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Revenues | ' | |||||||||||||||
Revenues | ||||||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||||||
North American Full-Service Segment | $ | 7,978 | $ | 7,276 | $ | 6,773 | ||||||||||
North American Limited-Service Segment | 2,583 | 2,456 | 2,350 | |||||||||||||
International Segment | 1,957 | 1,794 | 1,636 | |||||||||||||
Former Timeshare Segment | — | — | 1,438 | |||||||||||||
Total segment revenues | 12,518 | 11,526 | 12,197 | |||||||||||||
Other unallocated corporate | 266 | 288 | 120 | |||||||||||||
$ | 12,784 | $ | 11,814 | $ | 12,317 | |||||||||||
Net Income | ' | |||||||||||||||
Net Income | ||||||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||||||
North American Full-Service Segment | $ | 490 | $ | 442 | $ | 374 | ||||||||||
North American Limited-Service Segment | 479 | 472 | 382 | |||||||||||||
International Segment | 228 | 251 | 215 | |||||||||||||
Former Timeshare Segment | — | — | (217 | ) | ||||||||||||
Total segment financial results | 1,197 | 1,165 | 754 | |||||||||||||
Other unallocated corporate | (203 | ) | (196 | ) | (291 | ) | ||||||||||
Interest expense and interest income(1) | (97 | ) | (120 | ) | (107 | ) | ||||||||||
Income taxes | (271 | ) | (278 | ) | (158 | ) | ||||||||||
$ | 626 | $ | 571 | $ | 198 | |||||||||||
(1) | The $164 million of interest expense shown on the Income Statement for year-end 2011 includes $43 million that we allocated to our former Timeshare segment. | |||||||||||||||
Depreciation and Amortization | ' | |||||||||||||||
Depreciation and Amortization | ||||||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||||||
North American Full-Service Segment | $ | 57 | $ | 46 | $ | 50 | ||||||||||
North American Limited-Service Segment | 21 | 16 | 23 | |||||||||||||
International Segment | 42 | 33 | 35 | |||||||||||||
Former Timeshare Segment | — | — | 29 | |||||||||||||
Total segment depreciation and amortization | 120 | 95 | 137 | |||||||||||||
Other unallocated corporate | 7 | 7 | 7 | |||||||||||||
$ | 127 | $ | 102 | $ | 144 | |||||||||||
Goodwill | ' | |||||||||||||||
Goodwill | ||||||||||||||||
($ in millions) | North American | North American | International | Total | ||||||||||||
Full-Service | Limited-Service | Segment | Goodwill | |||||||||||||
Segment | Segment | |||||||||||||||
Year-end 2011 balance: | ||||||||||||||||
Goodwill | $ | 392 | $ | 126 | $ | 411 | $ | 929 | ||||||||
Accumulated impairment losses | — | (54 | ) | — | (54 | ) | ||||||||||
$ | 392 | $ | 72 | $ | 411 | $ | 875 | |||||||||
Year-end 2012 balance: | ||||||||||||||||
Goodwill | $ | 392 | $ | 125 | $ | 411 | $ | 928 | ||||||||
Accumulated impairment losses | — | (54 | ) | — | (54 | ) | ||||||||||
$ | 392 | $ | 71 | $ | 411 | $ | 874 | |||||||||
Year-end 2013 balance: | ||||||||||||||||
Goodwill | $ | 392 | $ | 125 | $ | 411 | $ | 928 | ||||||||
Accumulated impairment losses | — | (54 | ) | — | (54 | ) | ||||||||||
$ | 392 | $ | 71 | $ | 411 | $ | 874 | |||||||||
Capital Expenditures | ' | |||||||||||||||
Capital Expenditures | ||||||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||||||
North American Full-Service Segment | $ | 253 | $ | 257 | $ | 25 | ||||||||||
North American Limited-Service Segment | 8 | 19 | 11 | |||||||||||||
International Segment | 93 | 96 | 75 | |||||||||||||
Former Timeshare Segment | — | — | 13 | |||||||||||||
Total segment capital expenditures | 354 | 372 | 124 | |||||||||||||
Other unallocated corporate | 50 | 65 | 59 | |||||||||||||
$ | 404 | $ | 437 | $ | 183 | |||||||||||
SPINOFF_Tables
SPIN-OFF (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Spin-off Disclosure [Abstract] | ' | |||
Equity Impact of Spin-off | ' | |||
Our shareholders' equity decreased by $1,162 million as a result of the spin-off of MVW. We show in the following table the components of the decrease, which was primarily noncash and principally consisted of the net book value of the net assets we contributed to MVW in the spin-off: | ||||
($ in millions) | 2011 | |||
Cash and equivalents | $ | 52 | ||
Accounts and notes receivable | 247 | |||
Inventory | 982 | |||
Other current assets | 293 | |||
Property and equipment and other | 284 | |||
Loans to timeshare owners | 987 | |||
Other current liabilities | (533 | ) | ||
Current portion of long-term debt | (122 | ) | ||
Long-term debt | (773 | ) | ||
Other long-term liabilities | (255 | ) | ||
SPIN-OFF OF MVW | $ | 1,162 | ||
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||
Cash Flows Between us and the Timeshare Notes Securitization Variable Interest Entities | ' | |||
We show our cash flows to and from the timeshare notes securitization variable interest entities in the following table for 2011 before the spin-off: | ||||
($ in millions) | 2011 | |||
Cash inflows: | ||||
Proceeds from securitization | $ | 122 | ||
Principal receipts | 188 | |||
Interest receipts | 112 | |||
Total | 422 | |||
Cash outflows: | ||||
Principal to investors | (185 | ) | ||
Repurchases | (64 | ) | ||
Interest to investors | (39 | ) | ||
Total | (288 | ) | ||
Net Cash Flows | $ | 134 | ||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Leases [Abstract] | ' | |||||||||||
Future Obligations Under Operating Leases | ' | |||||||||||
We have summarized below our future obligations under operating leases at year-end 2013: | ||||||||||||
($ in millions) | Minimum Lease | |||||||||||
Payments | ||||||||||||
Fiscal Year | ||||||||||||
2014 | $ | 134 | ||||||||||
2015 | 130 | |||||||||||
2016 | 118 | |||||||||||
2017 | 103 | |||||||||||
2018 | 86 | |||||||||||
Thereafter | 583 | |||||||||||
Total minimum lease payments where we are the primary obligor | $ | 1,154 | ||||||||||
Composition of Rent Expense Associated with Operating Leases | ' | |||||||||||
The following table details the composition of rent expense for operating leases for the last three years: | ||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||
Minimum rentals | $ | 159 | $ | 188 | $ | 240 | ||||||
Additional rentals | 56 | 62 | 66 | |||||||||
$ | 215 | $ | 250 | $ | 306 | |||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||
Financial Data Resulting from Transactions with Related Parties, Income Statement Data | ' | |||||||||||
The following tables present financial data resulting from transactions with these related parties: | ||||||||||||
Income Statement Data | ||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||
Base management fees | $ | 17 | $ | 26 | $ | 37 | ||||||
Incentive management fees | 1 | 5 | — | |||||||||
Cost reimbursements | 236 | 315 | 383 | |||||||||
Owned, leased, corporate housing, and other | 1 | 3 | 8 | |||||||||
Total revenue | $ | 255 | $ | 349 | $ | 428 | ||||||
General, administrative, and other | $ | (5 | ) | $ | — | $ | (5 | ) | ||||
Reimbursed costs | (236 | ) | (315 | ) | (383 | ) | ||||||
Gains and other income | — | 43 | 4 | |||||||||
Interest expense-capitalized | — | 1 | 2 | |||||||||
Interest income | 4 | 3 | 3 | |||||||||
Equity in losses | (5 | ) | (13 | ) | (13 | ) | ||||||
Financial Data Resulting from Transactions with Related Parties, Balance Sheet Data | ' | |||||||||||
Balance Sheet Data | ||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||||||
Current assets-accounts and notes receivable | $ | 22 | $ | 18 | ||||||||
Contract acquisition costs and other | 20 | 21 | ||||||||||
Equity and cost method investments | 207 | 195 | ||||||||||
Deferred taxes, net asset | 16 | 17 | ||||||||||
Other | 16 | 20 | ||||||||||
Current liabilities: | ||||||||||||
Other | (13 | ) | (2 | ) | ||||||||
Other long-term liabilities | (2 | ) | (2 | ) | ||||||||
Summarized Information for the Entities Equity Method Investments, Income Statement | ' | |||||||||||
Summarized information for the entities in which we have equity method investments is as follows: | ||||||||||||
Income Statement Data | ||||||||||||
($ in millions) | 2013 | 2012 | 2011 | |||||||||
Sales | $ | 721 | $ | 902 | $ | 1,215 | ||||||
Net income (loss) | $ | 15 | $ | (4 | ) | $ | (58 | ) | ||||
Summarized Information for the Entities Equity Method Investments, Balance Sheet | ' | |||||||||||
Balance Sheet Summary | ||||||||||||
($ in millions) | At Year-End 2013 | At Year-End 2012 | ||||||||||
Assets (primarily comprised of hotel real estate managed by us) | $ | 1,832 | $ | 1,486 | ||||||||
Liabilities | $ | 1,482 | $ | 1,245 | ||||||||
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 11 Months Ended | 12 Months Ended | 12 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||||||||
Nov. 20, 2011 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2010 | Jan. 01, 2010 | Jan. 02, 2009 | Dec. 28, 2007 | Dec. 29, 2006 | Dec. 30, 2005 | Dec. 31, 2004 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Nov. 20, 2011 | Nov. 20, 2011 | Nov. 20, 2011 | Dec. 31, 2014 | Dec. 31, 2014 | |
program_type | Lower Limit | Upper Limit | Deferred Profit Sharing | Deferred Profit Sharing | Deferred Profit Sharing | Interest Income | Interest Income | Interest Income | Scenario, Forecast | Scenario, Forecast | |||||||||||
Securitized Notes Receivable | Nonsecuritized Notes Receivable | Lower Limit | Upper Limit | ||||||||||||||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in length of period from correstponding year-earlier period | ' | '4 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duration of fiscal period | ' | '368 days | '364 days | '364 days | '364 days | '364 days | '371 days | '364 days | '364 days | '364 days | '364 days | ' | ' | ' | ' | ' | ' | ' | ' | '365 days | '366 days |
Licensing fees from MVW after spin-off | ' | $61,000,000 | $61,000,000 | $4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of purchase price required to be received for sales recognition prior to spin-off | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Timeshare sales and services | ' | 0 | 0 | 1,088,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 143,000,000 | 116,000,000 | 27,000,000 | ' | ' |
Compensation costs from profit sharing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | 69,000,000 | 91,000,000 | ' | ' | ' | ' | ' |
Discount rate | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Self-insurance reserves | ' | 5,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability for guest loyalty program | ' | 2,141,000,000 | 2,021,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in estimate of breakage | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in liability for guest loyalty program, contingent upon reduction in the estimate of breakage | ' | 139,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of types of vendor rebate and allowance programs | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets held for sale | ' | 350,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities related to assets held for sale | ' | 61,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable reserve | ' | 43,000,000 | 32,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment charge | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of goodwill as a percent of carrying value, trigger for impairment loss | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) from foreign currency transactions | ' | -5,000,000 | -3,000,000 | -7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains and other income | ' | $0 | $1,000,000 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The_Provision_for_Benefit_from
The (Provision for) Benefit from Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal, Current | ($139) | $6 | $53 |
State, Current | -17 | -8 | 0 |
Non-U.S., Current | -44 | -34 | -55 |
Current Income Tax Expense (Benefit) | -200 | -36 | -2 |
Federal, Deferred | -68 | -211 | -116 |
State, Deferred | -10 | -30 | -10 |
Non-U.S., Deferred | 7 | -1 | -30 |
Deferred Income Tax Expense (Benefit) | -71 | -242 | -156 |
(Provision) benefit for income taxes | ($271) | ($278) | ($158) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2010 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Tax benefits (costs) from share-based compensation | $66,000,000 | $76,000,000 | $55,000,000 | ' |
Tax credits included in provision for income taxes | 3,000,000 | 3,000,000 | 4,000,000 | ' |
Tax provision (benefit) applicable to other comprehensive income | 2,000,000 | 5,000,000 | -14,000,000 | ' |
Cumulative unremitted earnings of subsidiaries | 739,000,000 | ' | ' | ' |
Aggregate amount of taxes not incurred due to tax holidays (less than $1 million in 2012 and 2011) | 1,000,000 | 1,000,000 | 1,000,000 | ' |
Amount of taxes not incurred due to tax holidays, per share (less than $0.01 per diluted share 2013, 2012, 2011) | $0.01 | $0.01 | $0.01 | ' |
Write-off of deferred tax assets transferred to MVW | ' | ' | 34,000,000 | ' |
Unrecognized tax benefits | 34,000,000 | 29,000,000 | 39,000,000 | 39,000,000 |
Change in unrecognized tax benefits | 5,000,000 | -10,000,000 | 0 | ' |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | 12,000,000 | 13,000,000 | 24,000,000 | ' |
Tax credits subject to expiration | 40,000,000 | ' | ' | ' |
Tax credits not subject to expiration | 233,000,000 | ' | ' | ' |
Net operating loss benefits | 14,000,000 | 50,000,000 | ' | ' |
Net operating losses | 1,500,000,000 | ' | ' | ' |
Net operating losses subject to expiration | 747,000,000 | ' | ' | ' |
Net cash payments (receipts) for income tax (refunds) | 77,000,000 | -17,000,000 | 45,000,000 | ' |
Lower Limit | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Income tax holiday, period | '10 years | ' | ' | ' |
Upper Limit | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Income tax holiday, period | '30 years | ' | ' | ' |
International Issue Relating to Financing Activity and US Federal Tax Issue | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Change in unrecognized tax benefits, amount of unrecorded benefit | 26,000,000 | ' | ' | ' |
International Issue Relating to Financing Activity | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Change in unrecognized tax benefits, amount of unrecorded benefit | 5,000,000 | ' | ' | ' |
US Federal Tax Issue | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Change in unrecognized tax benefits, amount of unrecorded benefit | $21,000,000 | ' | ' | ' |
Unrecognized_Tax_Benefit_Recon
Unrecognized Tax Benefit Reconciliation (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Unrecognized tax benefit at beginning of year | $29 | $39 | $39 |
Change attributable to tax positions taken during a prior period | ' | ' | -10 |
Change attributable to withdrawal of tax positions previously taken or expected to be taken | ' | ' | -6 |
Change attributable to tax positions taken during the current period | 8 | 12 | 19 |
Decrease attributable to settlements with taxing authorities | -2 | -20 | ' |
Decrease attributable to lapse of statute of limitations | -1 | -2 | -3 |
Unrecognized tax benefit at end of year | $34 | $29 | $39 |
Total_Deferred_Tax_Assets_and_
Total Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Deferred tax assets | $926 | $950 |
Deferred tax liabilities | -60 | -25 |
Net deferred taxes | $866 | $925 |
Composition_of_Net_Deferred_Ta
Composition of Net Deferred Tax Balances (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | ||
In Millions, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ' | ' | ||
Current deferred taxes, net | $252 | $280 | ||
Long-term deferred taxes, net | 647 | [1] | 676 | [1] |
Current liabilities, other | -19 | -13 | ||
Long-term liabilities, other | -14 | -18 | ||
Net deferred taxes | $866 | $925 | ||
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
Types_of_Temporary_Differences
Types of Temporary Differences and Carry-Forwards that Significantly Effect Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Employee benefits | $340 | $321 |
Net operating loss carry-forwards | 293 | 294 |
Tax credits | 273 | 328 |
Reserves | 61 | 63 |
Frequent guest program | 30 | 43 |
Self-insurance | 23 | 19 |
Deferred income | 23 | 4 |
Joint venture interests | -23 | -11 |
Property, equipment, and intangible assets | -37 | -14 |
Other, net | 48 | 23 |
Deferred taxes | 1,031 | 1,070 |
Less: valuation allowance | -165 | -145 |
Net deferred taxes | $866 | $925 |
Reconciliation_of_the_US_Statu
Reconciliation of the U.S. Statutory Tax Rate to Our Effective Income Tax Rate for Continuing Operations (Detail) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | ||||
Income Tax Disclosure [Abstract] | ' | ' | ' | |||
U.S. statutory tax rate | 35.00% | 35.00% | 35.00% | |||
U.S. state income taxes, net of U.S. federal tax benefit | 2.60% | 2.60% | 2.30% | |||
Nondeductible expenses | 0.50% | 0.30% | 1.80% | |||
Non-U.S. income | -5.70% | -3.90% | -0.90% | |||
Change in valuation allowance (1) | 0.30% | [1] | -0.20% | [1] | 8.90% | [1] |
Tax credits | -0.40% | -0.40% | -1.00% | |||
Other, net | -2.10% | -0.70% | -1.70% | |||
Effective rate | 30.20% | 32.70% | 44.40% | |||
[1] | Primarily for the 2011 additional impairment of certain deferred tax assets transferred to MVW, as discussed earlier in this footnote. |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Nov. 10, 2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Options granted | 96,960 | 255,761 | 19,192 | ' | |
Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011) | $116,000,000 | $94,000,000 | $103,000,000 | ' | |
Deferred compensation costs related to unvested awards | 108,000,000 | 122,000,000 | ' | ' | |
Deferred compensation costs related to unvested awards, weighted average period | '2 years | ' | ' | ' | |
Tax benefit (costs) from share-based compensation in financing activities | 121,000,000 | 71,000,000 | 0 | ' | |
Proceeds from exercise of stock options granted under share-based payment arrangements | 199,000,000 | 179,000,000 | 124,000,000 | ' | |
Spin-off distribution ratio, spinnee shares received | ' | ' | ' | 1 | |
Spin-off distribution ratio, spinnor shares held | ' | ' | ' | 10 | |
Total intrinsic value of stock options exercised | 131,000,000 | 158,000,000 | 124,000,000 | ' | |
Shares reserved under the Stock Plan | 32,000,000 | ' | ' | ' | |
Restricted Stock Units, Excluding Service and Performance RSUs | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Granted | 2,500,000 | ' | ' | ' | |
S&P RSUs | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 200,000 | ' | ' | ' | |
Restricted Stock Units | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Granted | 2,700,000 | [1] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 6,800,000 | [2] | 7,400,000 | ' | ' |
Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011) | 101,000,000 | 83,000,000 | 90,000,000 | ' | |
Deferred compensation costs related to unvested awards | 102,000,000 | 111,000,000 | ' | ' | |
Vesting period | '4 years | ' | ' | ' | |
Weighted average remaining term for grants outstanding | '2 years | ' | ' | ' | |
Forfeited | 300,000 | ' | ' | ' | |
Stock Appreciation Rights | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Granted | 700,000 | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 6,400,000 | [3] | 6,200,000 | ' | ' |
Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011) | 12,000,000 | 9,000,000 | 12,000,000 | ' | |
Deferred compensation costs related to unvested awards | 4,000,000 | 8,000,000 | ' | ' | |
Forfeited | 0 | ' | ' | ' | |
Intrinsic value of stock appreciation rights outstanding (less than $1 million at year-end 2011) | 111,000,000 | 37,000,000 | ' | ' | |
Intrinsic value of stock appreciation rights exercisable | 82,000,000 | 24,000,000 | ' | ' | |
Intrinsic value of stock appreciation rights exercised | 6,000,000 | 2,000,000 | ' | ' | |
Stock Appreciation Rights | Employee | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Granted | 700,000 | 1,000,000 | 700,000 | ' | |
Vesting period | '4 years | ' | ' | ' | |
Expiration period | '10 years | ' | ' | ' | |
Stock Appreciation Rights | Director | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Granted | 5,903 | 5,915 | 0 | ' | |
Expiration period | '10 years | ' | ' | ' | |
Period until exercisable | '1 year | ' | ' | ' | |
Employee Stock Option | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Options granted | 100,000 | ' | ' | ' | |
Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011) | 2,000,000 | 1,000,000 | 1,000,000 | ' | |
Deferred compensation costs related to unvested awards | 2,000,000 | 3,000,000 | ' | ' | |
Vesting period | '4 years | ' | ' | ' | |
Stock Options Issued from 1990 Through 2000 | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Expiration period | '15 years | ' | ' | ' | |
Nonqualified Stock Options | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Expiration period | '10 years | ' | ' | ' | |
Deferred Stock Units | Director | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Granted | 31,000 | 27,000 | 29,000 | ' | |
Share-based compensation expense (for stock options, less than $1 million in 2011 and 2010; for suspended award programs, less than $1 million in 2011) | $1,400,000 | $1,200,000 | $1,100,000 | ' | |
Vesting period | '1 year | ' | ' | ' | |
Outstanding units at year-end | 261,000 | 245,000 | ' | ' | |
Weighted average grant-date fair value per share of deferred stock units outstanding as of year end | $22 | $27 | ' | ' | |
Stock Option Program and Stock Appreciation Right Program | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Shares reserved under the Stock Plan | 11,000,000 | ' | ' | ' | |
[1] | Includes 0.2 million S&P RSUs granted to named executive officers. | ||||
[2] | Includes 0.2 million Marriott RSUs held by MVW employees. | ||||
[3] | Includes 0.2 million Marriott SARs held by MVW employees. |
Additional_Information_on_RSUs
Additional Information on RSUs (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | |
Reconciliation of Restricted Stock Activity [Line Items] | ' | ' | ' | |
Share-based compensation expense (in millions) | $116 | $94 | $103 | |
Restricted Stock Units | ' | ' | ' | |
Reconciliation of Restricted Stock Activity [Line Items] | ' | ' | ' | |
Share-based compensation expense (in millions) | 101 | 83 | 90 | |
Weighted average grant-date fair value (per unit) | $38 | [1] | $35 | $40 |
Aggregate intrinsic value of converted and distributed Marriott RSUs (in millions) | $125 | $91 | $113 | |
[1] | Includes 0.2 million S&P RSUs granted to named executive officers. |
Changes_in_Outstanding_Restric
Changes in Outstanding Restricted Stock Unit Grants (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | ||
Restricted Stock Units | ' | ' | ' | |
Number of RSUs | ' | ' | ' | |
Outstanding beginning balance | 7,400,000 | ' | ' | |
Granted | 2,700,000 | [1] | ' | ' |
Distributed | -3,000,000 | ' | ' | |
Forfeited | -300,000 | ' | ' | |
Outstanding ending balance | 6,800,000 | [2] | 7,400,000 | ' |
Weighted Average Grant-Date Fair Value | ' | ' | ' | |
Outstanding beginning balance (per unit) | $31 | ' | ' | |
Granted (per unit) | $38 | [1] | $35 | $40 |
Distributed (per unit) | $29 | ' | ' | |
Forfeited (per unit) | $34 | ' | ' | |
Outstanding ending balance (per unit) | $35 | [2] | $31 | ' |
Restricted Stock Units | MVW Employee | ' | ' | ' | |
Number of RSUs | ' | ' | ' | |
Outstanding ending balance | 200,000 | ' | ' | |
S&P RSUs | ' | ' | ' | |
Number of RSUs | ' | ' | ' | |
Outstanding ending balance | 200,000 | ' | ' | |
[1] | Includes 0.2 million S&P RSUs granted to named executive officers. | |||
[2] | Includes 0.2 million Marriott RSUs held by MVW employees. |
Changes_in_Outstanding_Stock_O
Changes in Outstanding Stock Option Program Awards (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | ||
Number of Marriott Stock Options (in millions) | ' | ' | ' | |
Granted | 96,960 | 255,761 | 19,192 | |
Outstanding ending balance | 4,600,000 | ' | ' | |
Weighted Average Exercise Price (per Option) | ' | ' | ' | |
Granted (per unit) | $13 | $12 | $15 | |
Outstanding ending balance (per unit) | $22 | ' | ' | |
Employee Stock Option | ' | ' | ' | |
Number of Marriott Stock Options (in millions) | ' | ' | ' | |
Outstanding beginning balance | 9,500,000 | ' | ' | |
Granted | 100,000 | ' | ' | |
Exercised | -5,000,000 | ' | ' | |
Forfeited | 0 | ' | ' | |
Outstanding ending balance | 4,600,000 | [1] | ' | ' |
Weighted Average Exercise Price (per Option) | ' | ' | ' | |
Outstanding beginning balance (per unit) | $19 | ' | ' | |
Granted (per unit) | $39 | ' | ' | |
Exercised (per unit) | $17 | ' | ' | |
Forfeited (per unit) | $46 | ' | ' | |
Outstanding ending balance (per unit) | $22 | [1] | ' | ' |
Vesting period | '4 years | ' | ' | |
Employee Stock Option | MVW Employee | ' | ' | ' | |
Number of Marriott Stock Options (in millions) | ' | ' | ' | |
Outstanding ending balance | 100,000 | ' | ' | |
[1] | Includes 0.1 million Marriott stock options held by MVW employees. |
Stock_Options_Issued_under_Sto
Stock Options Issued under Stock Option Program Awards (Detail) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $13 |
Range of Exercise Prices, Upper Limit | $46 |
Outstanding - Number of Stock Options (in millions) | 4.6 |
Outstanding - Weighted Average Exercise Price (per unit) | $22 |
Outstanding - Weighted Average Remaining Life | '2 years |
Exercisable - Number of Stock Options (in millions) | 4.2 |
Exercisable - Weighted Average Exercise Price (per unit) | $21 |
Exercisable - Weighted Average Remaining Life | '2 years |
Range 2 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $13 |
Range of Exercise Prices, Upper Limit | $17 |
Outstanding - Number of Stock Options (in millions) | 2.5 |
Outstanding - Weighted Average Exercise Price (per unit) | $16 |
Outstanding - Weighted Average Remaining Life | '1 year |
Exercisable - Number of Stock Options (in millions) | 2.5 |
Exercisable - Weighted Average Exercise Price (per unit) | $16 |
Exercisable - Weighted Average Remaining Life | '1 year |
Range 3 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $18 |
Range of Exercise Prices, Upper Limit | $22 |
Outstanding - Number of Stock Options (in millions) | 0.6 |
Outstanding - Weighted Average Exercise Price (per unit) | $22 |
Outstanding - Weighted Average Remaining Life | '1 year |
Exercisable - Number of Stock Options (in millions) | 0.6 |
Exercisable - Weighted Average Exercise Price (per unit) | $22 |
Exercisable - Weighted Average Remaining Life | '1 year |
Range 4 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $23 |
Range of Exercise Prices, Upper Limit | $46 |
Outstanding - Number of Stock Options (in millions) | 1.5 |
Outstanding - Weighted Average Exercise Price (per unit) | $32 |
Outstanding - Weighted Average Remaining Life | '4 years |
Exercisable - Number of Stock Options (in millions) | 1.1 |
Exercisable - Weighted Average Exercise Price (per unit) | $30 |
Exercisable - Weighted Average Remaining Life | '3 years |
Number_of_Options_Granted_and_
Number of Options Granted and Associated Weighted Average Grant-Date Fair Values and Weighted Average Exercise Prices (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Options granted | 96,960 | 255,761 | 19,192 |
Weighted average grant-date fair value (per unit) | $13 | $12 | $15 |
Weighted average exercise price (per unit) | $39 | $35 | $38 |
Intrinsic_Value_of_Outstanding
Intrinsic Value of Outstanding Stock Options and Exercisable Stock Options (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Outstanding stock options | $126 | $169 |
Exercisable stock options | $121 | $168 |
Changes_in_Outstanding_SARs_De
Changes in Outstanding SARs (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | ||
Weighted Average Exercise Price | ' | ' | ' | |
Granted (per unit) | $13 | $12 | $15 | |
Outstanding ending balance (per unit) | $22 | ' | ' | |
Stock Appreciation Rights | ' | ' | ' | |
Number of SARs (in millions) | ' | ' | ' | |
Outstanding beginning balance | 6,200,000 | ' | ' | |
Granted | 700,000 | ' | ' | |
Exercised | -500,000 | ' | ' | |
Forfeited | 0 | ' | ' | |
Outstanding ending balance | 6,400,000 | [1] | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | |
Outstanding beginning balance (per unit) | $31 | ' | ' | |
Granted (per unit) | $39 | ' | ' | |
Exercised (in shares) | $30 | ' | ' | |
Forfeited (per unit) | $41 | ' | ' | |
Outstanding ending balance (per unit) | $32 | [1] | ' | ' |
MVW Employee | Stock Appreciation Rights | ' | ' | ' | |
Number of SARs (in millions) | ' | ' | ' | |
Outstanding ending balance | 200,000 | ' | ' | |
[1] | Includes 0.2 million Marriott SARs held by MVW employees. |
Number_of_Employee_SARs_and_Di
Number of Employee SARs and Director SARs Granted, Associated Weighted Average Base Values, And Weighted Average Grant-Date Fair Values (Detail) (Stock Appreciation Rights, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted | 700,000 | ' | ' |
Employee | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted | 700,000 | 1,000,000 | 700,000 |
Weighted average exercise price (per unit) | $39 | $35 | $38 |
Weighted average grant-date fair value (per unit) | $13 | $12 | $14 |
Director | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted | 5,903 | 5,915 | 0 |
Weighted average exercise price (per unit) | $44 | $39 | $0 |
Weighted average grant-date fair value (per unit) | $15 | $14 | $0 |
Assumptions_for_Stock_Options_
Assumptions for Stock Options and Employee SARs (Detail) (Stock Option Program and Stock Appreciation Right Program) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Expected volatility | ' | 31.00% | 32.00% |
Dividend yield | 1.17% | 1.01% | 0.73% |
Risk-free rate | ' | ' | 3.40% |
Expected term (in years) | ' | ' | '8 years |
Lower Limit | ' | ' | ' |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Expected volatility | 30.00% | ' | ' |
Risk-free rate | 1.80% | 1.70% | ' |
Expected term (in years) | '8 years | '8 years | ' |
Upper Limit | ' | ' | ' |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ' |
Expected volatility | 31.00% | ' | ' |
Risk-free rate | 1.90% | 2.00% | ' |
Expected term (in years) | '10 years | '10 years | ' |
ShareBased_Compensation_Expens
Share-Based Compensation Expense, Number of Deferred Stock Units Granted, Weighted Average Grant-Date Fair Value, and Aggregate Intrinsic Value of Non-Employee Director Deferred Stock Units (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Share-based compensation expense (in millions) | $116 | $94 | $103 |
Deferred Stock Units | Director | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' |
Share-based compensation expense (in millions) | 1.4 | 1.2 | 1.1 |
Non-employee director deferred stock units granted | 31,000 | 27,000 | 29,000 |
Weighted average grant-date fair value (per share) | $44 | $39 | $36 |
Aggregate intrinsic value of shares distributed (in millions) | $0.70 | $1 | $1.40 |
Recovered_Sheet2
Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 07, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Fair Value, Inputs, Level 1 | Single Investment Other Than Temporarily Impaired [Member] | Mandatorily Redeemable Preferred Equity Ownership Interest | Mandatorily Redeemable Preferred Equity Ownership Interest | Commercial Paper | |||
Fair Value, Inputs, Level 3 | Debt Securities | Debt Securities | |||||
hotel | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Fair value of one of our cost method investments | ' | ' | ' | $12 | ' | ' | ' |
Other than temporary impairment of one of our cost method investments | ' | ' | ' | 7 | ' | ' | ' |
Carrying value of our marketable securities | ' | ' | 41 | ' | ' | ' | ' |
Held-to-maturity securities | ' | ' | ' | ' | 65 | ' | ' |
Number of hotels | ' | ' | ' | ' | 3 | ' | ' |
Held-to-maturity securities, amortized cost | ' | 70 | ' | ' | ' | ' | ' |
Amortized cost basis | 14 | ' | ' | ' | ' | ' | ' |
Held-to-maturity securities, fair value | ' | ' | ' | ' | ' | 70 | ' |
Proceeds from sale of investment | 22 | ' | ' | ' | ' | ' | ' |
Realized gain from sale of investment | $8 | ' | ' | ' | ' | ' | ' |
Commercial paper, maturity term (generally 30 days or less) | ' | ' | ' | ' | ' | ' | '30 days |
Carrying_Values_and_Fair_Value
Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Senior, mezzanine, and other loans | $142 | [1] | $180 | [1] |
Other long-term liabilities | -912 | [1] | -898 | [1] |
Carrying Amount | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cost method investments | 16 | 21 | ||
Senior, mezzanine, and other loans | 142 | 180 | ||
Marketable securities and other debt securities | 111 | 56 | ||
Total long-term financial assets | 269 | 257 | ||
Senior Notes | -2,185 | -1,833 | ||
Commercial paper | -834 | -501 | ||
Other long-term debt | -123 | -130 | ||
Other long-term liabilities | -50 | -69 | ||
Total long-term financial liabilities | -3,192 | -2,533 | ||
Fair Value | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Cost method investments | 17 | 23 | ||
Senior, mezzanine, and other loans | 145 | 172 | ||
Marketable securities and other debt securities | 111 | 56 | ||
Total long-term financial assets | 273 | 251 | ||
Senior Notes | -2,302 | -2,008 | ||
Commercial paper | -834 | -501 | ||
Other long-term debt | -124 | -139 | ||
Other long-term liabilities | -50 | -69 | ||
Total long-term financial liabilities | ($3,310) | ($2,717) | ||
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
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 $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Computation of Basic Earnings Per Share | ' | ' | ' |
Net income (in USD) | $626 | $571 | $198 |
Weighted average shares outstanding | 305 | 322.6 | 350.1 |
Basic earnings per share (in USD per share) | $2.05 | $1.77 | $0.56 |
Computation of Diluted Earnings Per Share | ' | ' | ' |
Net income (in USD) | $626 | $571 | $198 |
Weighted average shares outstanding | 305 | 322.6 | 350.1 |
Effect of dilutive securities | ' | ' | ' |
Shares for diluted earnings per share | 313 | 332.9 | 362.3 |
Diluted earnings per share (in USD per share) | $2 | $1.72 | $0.55 |
Employee stock option and SARs plans | ' | ' | ' |
Effect of dilutive securities | ' | ' | ' |
Effect of dilutive securities | 4 | 6.1 | 8 |
Deferred stock incentive plans | ' | ' | ' |
Effect of dilutive securities | ' | ' | ' |
Effect of dilutive securities | 0.8 | 0.9 | 0.9 |
Restricted stock units | ' | ' | ' |
Effect of dilutive securities | ' | ' | ' |
Effect of dilutive securities | 3.2 | 3.3 | 3.3 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Employee stock option and SARs plans) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
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) | 0.4 | 1 | 4.1 |
Composition_of_our_Property_an
Composition of our Property and Equipment Balances (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $2,448 | $2,530 |
Accumulated depreciation | -905 | -991 |
Property and equipment, net | 1,543 | 1,539 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 535 | 590 |
Buildings and leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 786 | 703 |
Furniture and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 789 | 854 |
Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 338 | 383 |
Capital Lease Obligations [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 114 | 215 |
Accumulated depreciation | -83 | -82 |
Property and equipment, net | 31 | 133 |
Capital Lease Obligations [Member] | Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 8 | 30 |
Capital Lease Obligations [Member] | Buildings and leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 68 | 143 |
Capital Lease Obligations [Member] | Furniture and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 37 | 38 |
Capital Lease Obligations [Member] | Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1 | $4 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 09, 2011 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Depreciation expense | ' | $107 | $93 | $130 |
Timeshare strategy-impairment charges | 324 | 0 | 0 | 324 |
Property and Equipment | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Interest capitalized | ' | 31 | 27 | 12 |
Timeshare strategy-impairment charges | 68 | ' | ' | ' |
Lower Limit | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | '3 years | ' | ' |
Upper Limit | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Estimated useful lives | ' | '40 years | ' | ' |
Reimbursed Costs | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Depreciation expense | ' | $48 | $45 | $43 |
Additional_Information_Acquisi
Additional Information - Acquisitions (Detail) | 12 Months Ended | 4 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 28, 2012 | Oct. 01, 2012 | Nov. 30, 2012 | Apr. 02, 2014 | Apr. 02, 2014 |
USD ($) | USD ($) | USD ($) | Land For Hotel | Land and Building for Hotel | Land and Building for Hotel | Leasehold Purchase and Sale | Leasehold Purchase and Sale | Commitments | Commitments | Investment in Other Joint Venture Commitment | Real Estate Investment | Real Estate Investment | Real Estate Investment | Real Estate Investment | Gaylord Entertainment Corporation | Gaylord Entertainment Corporation | Scenario, Forecast | Scenario, Forecast | |
USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | AC Hotels | AC Hotels | USD ($) | EUR (€) | Leasehold Purchase and Sale | Leasehold Purchase and Sale | USD ($) | room | Protea Hospitality Holdings | Protea Hospitality Holdings | |||||
USD ($) | EUR (€) | USD ($) | EUR (€) | room | USD ($) | ZAR | |||||||||||||
Entity | location | hotel | hotel | ||||||||||||||||
country | country | ||||||||||||||||||
room | room | ||||||||||||||||||
brand | brand | ||||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration paid | $115 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $210 | ' | $186 | 2,020 |
Number of hotels acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | 100 | 100 |
Number of hotel rooms acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,800 | 300 | 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% |
Acquired intangible assets recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 210 | ' | ' | ' |
Capital expenditures | 404 | 437 | 183 | 32 | 160 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits in conjunction with commitments to purchase | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash contributed for interest in operation, management and development of AC Hotels by Marriott | ' | ' | ' | ' | ' | ' | ' | ' | 51 | 37 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition interests in joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent acquisition period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' |
Initial payment to acquire certain assets and a leasehold on a hotel | ' | ' | ' | ' | ' | ' | 34 | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfunded purchase commitments expiring this year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45 | € 33 | $45 | € 33 | ' | ' | ' | ' |
Additional_Information_Disposi
Additional Information - Dispositions (Details) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 2 Months Ended | 3 Months Ended | ||||||||||||
Nov. 21, 2011 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2013 | Nov. 10, 2011 | Dec. 31, 1999 | Dec. 28, 2012 | Dec. 28, 2012 | Nov. 21, 2011 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 07, 2014 | Jan. 07, 2014 | Feb. 20, 2014 | Feb. 20, 2014 | Mar. 31, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | North American Limited Service Joint Venture | Performance Arrangement | Bulk Sale Land | Sale of Land to Joint Venture in 2005 | Hotel Sold and Terminated Lease Agreement | Luxury Segment | International Segment | International Segment | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |||
Entity | USD ($) | North American Limited Service Joint Venture | USD ($) | North American Limited Service Joint Venture | USD ($) | London EDITION Hotel | Right to Acquire Landlord's Interest in Real Estate Property | Right to Acquire Landlord's Interest in Real Estate Property | hotel | Luxury Segment | International Segment | International Segment | International Segment | |||||||
USD ($) | USD ($) | location | USD ($) | USD ($) | EUR (€) | London EDITION Hotel | 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 | Right to Acquire Landlord's Interest in Real Estate Property and Attached Assets | |||||||||||
USD ($) | USD ($) | EUR (€) | USD ($) | |||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from dispositions | ' | $0 | $65,000,000 | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $240,000,000 | ' | ' | ' |
Number of hotels | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
Assets held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 815,000,000 | ' | ' | ' |
Assets, reclassified | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 244,000,000 | 106,000,000 | 77,000,000 | ' | ' | ' | ' | ' |
Assets, property, plant and equipment, reclassified | ' | 105,000,000 | ' | ' | 76,000,000 | ' | ' | ' | ' | ' | ' | ' | 236,000,000 | ' | ' | ' | ' | ' | ' | ' |
Assets, current assets, reclassified | ' | 1,000,000 | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' |
Liabilities, reclassified | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | 48,000,000 | 35,000,000 | ' | ' | ' | ' | ' |
Asset impairments and write-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | ' | ' | ' | ' | ' |
Cash proceeds from sale of rights to acquire property and attached assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | 62,000,000 |
Noncash proceeds from sale of rights to acquire property and attached assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | 33,000,000 | ' |
Number of joint ventures merged before sale | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of interest in joint venture | ' | ' | ' | ' | ' | ' | ' | 96,000,000 | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gain recognized on disposal | ' | ' | ' | ' | ' | ' | ' | 41,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred gain on sale, amount recognized in current period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of interest in joint venture | ' | ' | ' | ' | ' | ' | ' | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue recognized | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Spin-off distribution ratio, spinnee shares received | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Spin-off distribution ratio, spinnor shares held | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) recognized as a result of spin-off | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash proceeds received | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain (loss) from disposition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | -2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Hotel or property, ownership interest sold | ' | ' | ' | ' | ' | ' | 89.00% | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (decrease) in assets due to sale of interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (decrease) in liabilities due to sale of interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($17,000,000) | ' | ' | ' | ' | ' | ' | ' | ' |
Composition_of_Other_Intangibl
Composition of Other Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | ||
In Millions, unless otherwise specified | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ||
Contract acquisition costs and other | $1,554 | $1,512 | ||
Accumulated amortization | -423 | -397 | ||
Contract acquisition costs and other, net | $1,131 | [1] | $1,115 | [1] |
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
Carrying_Amount_of_Goodwill_De
Carrying Amount of Goodwill (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
In Millions, unless otherwise specified | |||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Goodwill | $928 | $928 | $929 |
Accumulated impairment losses | -54 | -54 | -54 |
Goodwill, net | $874 | $874 | $875 |
Recovered_Sheet3
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Aggregate amortization expense of intangible assets | $68 | $54 | $57 |
Estimated aggregate future amortization expense of intangible assets for 2013 | 59 | ' | ' |
Estimated aggregate future amortization expense of intangible assets for 2014 | 59 | ' | ' |
Estimated aggregate future amortization expense of intangible assets for 2015 | 59 | ' | ' |
Estimated aggregate future amortization expense of intangible assets for 2016 | 59 | ' | ' |
Estimated aggregate future amortization expense of intangible assets for 2017 | $59 | ' | ' |
Lower Limit | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Range of amortization life of intangible assets | '15 years | ' | ' |
Upper Limit | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Range of amortization life of intangible assets | '30 years | ' | ' |
Composition_of_our_Notes_Recei
Composition of our Notes Receivable Balances (Net of Reserves) (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | ||
In Millions, unless otherwise specified | ||||
Receivables [Abstract] | ' | ' | ||
Senior, mezzanine, and other loans | $178 | $242 | ||
Current notes receivable | -36 | -62 | ||
Notes receivable, noncurrent | $142 | [1] | $180 | [1] |
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
Notes_Receivable_Principal_Pay
Notes Receivable Principal Payments (Net of Reserves and Unamortized Discounts and Interest Rates) (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
2014 | $36 | ' |
2015 | 85 | ' |
2016 | 4 | ' |
2017 | 3 | ' |
2018 | 5 | ' |
Thereafter | 45 | ' |
Senior, mezzanine, and other loans | $178 | $242 |
Weighted average interest rate at year-end 2013 | 4.60% | ' |
Range of stated interest rates at year-end 2013, minimum | 0.00% | ' |
Range of stated interest rates at year-end 2013, maximum | 8.00% | ' |
Notes_Receivable_Unamortized_D
Notes Receivable Unamortized Discounts (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Notes receivable, unamortized discounts, balance | $12 | $11 |
Activity_Related_to_Senior_mez
Activity Related to "Senior, mezzanine, and other loans" Notes Receivable Reserve (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning balance | $79 | $78 | $74 |
Additions | ' | 2 | 2 |
Reversals | -2 | -1 | ' |
Write-offs | ' | -1 | -7 |
Transfers and other | 13 | 1 | 9 |
Ending balance | $90 | $79 | $78 |
Notes_Receivable_Additional_In
Notes Receivable - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2010 |
Receivables [Abstract] | ' | ' | ' | ' |
Investment in impaired loans | $99 | $93 | ' | ' |
Notes receivable reserve representing an allowance for credit losses | 90 | 79 | 78 | 74 |
Investment in impaired loans with no related allowance for credit losses | 9 | 14 | ' | ' |
Average investment in impaired loans | 96 | 94 | 89 | ' |
Notes receivable, past due | $0 | $7 | ' | ' |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 28, 2012 | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
$2,000 Credit Facility | $0 | ' | $15,000,000 | ||
Other | 180,000,000 | ' | 186,000,000 | ||
Long-term debt | 3,199,000,000 | ' | 2,935,000,000 | ||
Other current liabilities (liabilities held for sale) | -46,000,000 | ' | 0 | ||
Less current portion | -6,000,000 | ' | -407,000,000 | ||
Long-term debt, noncurrent | 3,147,000,000 | ' | 2,528,000,000 | ||
Multicurrency revolving credit agreement, aggregate effective borrowings | 2,000,000,000 | ' | ' | ||
Commercial Paper | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Commercial paper, average interest rate of 0.4% at December 31, 2013 | 834,000,000 | ' | 501,000,000 | ||
Long-term debt, average interest rate | 0.40% | ' | ' | ||
Series G, Senior Notes 5.810% Due November 10, 2015 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 312,000,000 | [1] | ' | 309,000,000 | [1] |
Debt instrument, stated interest rate | 5.80% | ' | ' | ||
Senior Notes, face amount | 316,000,000 | ' | ' | ||
Senior Notes, effective interest rate | 6.70% | ' | ' | ||
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 | 6.40% | ' | ' | ||
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 J, Senior Notes matured February 15, 2013 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 0 | [1] | ' | 400,000,000 | [1] |
Series K, Senior Notes 3.000% Due March 1, 2019 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Senior Notes | 595,000,000 | [1] | ' | 594,000,000 | [1] |
Debt instrument, stated interest rate | 3.00% | ' | 3.00% | ||
Senior Notes, face amount | 600,000,000 | ' | 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% | ' | 3.25% | ||
Senior Notes, face amount | 350,000,000 | ' | 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] | ' | 0 | [1] |
Debt instrument, stated interest rate | 3.38% | 3.38% | ' | ||
Senior Notes, face amount | $350,000,000 | $350,000,000 | ' | ||
Senior Notes, effective interest rate | 3.60% | ' | ' | ||
[1] | Face amount and effective interest rate are as of year-end 2013. |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 28, 2012 | |
Series M Senior Notes 3.375% Due October 15, 2020 | Series M Senior Notes 3.375% Due October 15, 2020 | Series L, Senior Notes 3.250% Due September 15, 2022 | Series L, Senior Notes 3.250% Due September 15, 2022 | Series K, Senior Notes 3.000% Due March 1, 2019 | Series K, Senior Notes 3.000% Due March 1, 2019 | Series J, Senior Notes matured February 15, 2013 | Series F, Senior Notes matured June 15, 2012 | Offering One | Offering Two | ||||
offering | Series K, Senior Notes 3.000% Due March 1, 2019 | Series K, Senior Notes 3.000% Due March 1, 2019 | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes, face amount | ' | ' | ' | $350,000,000 | $350,000,000 | $350,000,000 | $350,000,000 | $600,000,000 | $600,000,000 | ' | ' | $400,000,000 | $200,000,000 |
Debt instrument, stated interest rate | ' | ' | ' | 3.38% | 3.38% | 3.25% | 3.25% | 3.00% | 3.00% | ' | ' | ' | ' |
Proceeds from debt, net of issuance costs | ' | ' | ' | 345,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of offerings comprising notes | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Issuance of long-term debt | 345,000,000 | 936,000,000 | 118,000,000 | ' | ' | 346,000,000 | ' | 590,000,000 | ' | ' | ' | ' | ' |
Payment made to retire debt at maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 411,000,000 | 356,000,000 | ' | ' |
Multicurrency revolving credit agreement, aggregate effective borrowings | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for interest, net of amounts capitalized | $83,000,000 | $83,000,000 | $130,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Principal_Payments_Net_of
Debt Principal Payments (Net of Unamortized Discounts) (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $52 | ' |
2015 | 319 | ' |
2016 | 297 | ' |
2017 | 301 | ' |
2018 | 843 | ' |
Thereafter | 1,387 | ' |
Long-term debt | $3,199 | $2,935 |
Recovered_Sheet4
Self-Insurance Reserve for Losses and Loss Adjustment Expenses (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 |
Self-Insurance Reserve for Losses and Loss Adjustment Expenses [Roll Forward] | ' | ' |
Balance at beginning of year | $342 | $330 |
Less: reinsurance recoverable | -5 | -5 |
Net balance at beginning of year | 337 | 325 |
Incurred related to: | ' | ' |
Current year | 116 | 108 |
Prior year | 8 | -11 |
Total incurred | 124 | 97 |
Paid related to: | ' | ' |
Current year | -25 | -28 |
Prior year | -79 | -57 |
Total paid | -104 | -85 |
Net balance at end of year | 357 | 337 |
Add: reinsurance recoverable | 5 | 5 |
Balance at end of year | $362 | $342 |
Recovered_Sheet5
Self-Insurance Reserve for Losses and Loss Adjustment Expenses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Self-Insurance Reserve for Losses and Loss Adjustment Expenses Disclosure [Abstract] | ' | ' | ' |
Increase (decrease) in provision for unpaid loss and loss adjustment expenses, current year | $8 | ' | ' |
Increase (decrease) in provision for unpaid loss and loss adjustment expenses, prior years | 8 | -11 | ' |
Self-insurance reserve | 362 | 342 | 330 |
Self-insurance reserve, current portion | 120 | 103 | ' |
Self-insurance reserve, long-term portion | $242 | $239 | ' |
Shareholders_Deficit_Equity_Ad
Shareholders' (Deficit) Equity - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2010 |
Equity [Abstract] | ' | ' | ' | ' |
Class A Common Stock, authorized (in shares) | 800,000,000 | ' | ' | ' |
Class A Common Stock, par value (in USD per share) | $0.01 | ' | ' | ' |
Preferred stock, authorized (in shares) | 10,000,000 | ' | ' | ' |
Preferred stock, no par value | ' | ' | ' | ' |
Class A Common Stock, outstanding (in shares) | 298,000,000 | 310,900,000 | 333,000,000 | 366,900,000 |
Preferred stock, outstanding (in shares) | 0 | ' | ' | ' |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income Activity (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Balance at year-end, beginning balance | ($44) | ($48) | ($2) |
Other comprehensive income (loss) before reclassifications | 6 | 2 | -54 |
Amounts reclassified from accumulated other comprehensive loss | -6 | 2 | 8 |
Net other comprehensive (loss) income | 0 | 4 | -46 |
Balance at year-end, ending balance | -44 | -44 | -48 |
Other comprehensive income (loss), before reclassifications, other derivative instrument adjustments, deferred tax | ' | -1 | 14 |
Other comprehensive income (loss), before reclassifications, unrealized gains on available-for-sale securities, deferred tax | -2 | 4 | ' |
Foreign Currency Translation Adjustments | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Balance at year-end, beginning balance | -32 | -37 | -4 |
Other comprehensive income (loss) before reclassifications | 1 | 4 | -31 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 1 | -2 |
Net other comprehensive (loss) income | 1 | 5 | -33 |
Balance at year-end, ending balance | -31 | -32 | -37 |
Other Derivative Instrument Adjustments | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Balance at year-end, beginning balance | -19 | -18 | 2 |
Other comprehensive income (loss) before reclassifications | 0 | -2 | -20 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 1 | 0 |
Net other comprehensive (loss) income | 0 | -1 | -20 |
Balance at year-end, ending balance | -19 | -19 | -18 |
Unrealized Gains (Losses) on Available-For-Sale Securities | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' |
Balance at year-end, beginning balance | 7 | 7 | 0 |
Other comprehensive income (loss) before reclassifications | 5 | 0 | -3 |
Amounts reclassified from accumulated other comprehensive loss | -6 | 0 | 10 |
Net other comprehensive (loss) income | -1 | 0 | 7 |
Balance at year-end, ending balance | $6 | $7 | $7 |
Reclassification_out_of_Accumu
Reclassification out of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Gains and other income | $11 | [1] | $42 | [1] | ($7) | [1] |
Interest expense | -120 | [1] | -137 | [1] | -164 | [1] |
Income before income taxes | 897 | 849 | 356 | |||
Provision for income taxes | -271 | -278 | -158 | |||
Net income | 626 | 571 | 198 | |||
Other Derivative Instrument Adjustments | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Base management and franchise fees | 3 | ' | ' | |||
Interest expense | -5 | ' | ' | |||
Income before income taxes | -2 | ' | ' | |||
Provision for income taxes | 2 | ' | ' | |||
Net income | 0 | ' | ' | |||
Unrealized Gains (Losses) on Available-For-Sale Securities | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | |||
Gains and other income | 10 | ' | ' | |||
Income before income taxes | 10 | ' | ' | |||
Provision for income taxes | -4 | ' | ' | |||
Net income | $6 | ' | ' | |||
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
Contingencies_Guarantees_Detai
Contingencies - Guarantees (Details) | 12 Months Ended | 4 Months Ended | ||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 09, 2005 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Lease Obligations and Debt Securities Payable | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Primary Obligor | Secondarily Liable | Secondarily Liable | Sunrise Senior Living Inc | Sunrise Senior Living Inc | Sunrise Senior Living Inc | Sunrise Senior Living Inc | Sunrise Senior Living Inc | CNL Retirement Properties Inc | Five Star Senior Living | Renaissance Hotel Group N.V. | Renaissance Hotel Group N.V. | Renaissance Hotel Group N.V. | MVW Spin-off | Accenture [Member] | Accenture [Member] | Letter of Credit | Expiration in 2014 | Expiration in 2017 | Expiration in 2022 | Expiration in 2022 | ExecuStay | ExecuStay | ||
USD ($) | USD ($) | Other Current Liabilities | Other Long Term Liabilities | Guarantee, Indebtedness of Others | Guarantee, Operating Profit | Not Yet In Effect Condition | Not Yet In Effect Condition | Not Yet In Effect Condition | USD ($) | Debt Securities Payable | 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 | Key Bank | MVW Spin-off | MVW Spin-off | MVW Spin-off | MVW Spin-off | Property Lease Guarantee | Secondarily Liable | ||
USD ($) | USD ($) | USD ($) | USD ($) | Guarantee, Indebtedness of Others | Guarantee, Operating Profit | Other Guarantees | USD ($) | USD ($) | Property Lease Guarantee | Property Lease Guarantee | Property Lease Guarantee | Debt Securities Payable | Debt Securities Payable | Debt Securities Payable | Property Lease Guarantee | Property Lease Guarantee | Property Lease Guarantee | USD ($) | Property Lease Guarantee | Property Lease Guarantee | Sunrise Senior Living Inc | Secondarily Liable | Secondarily Liable | Secondarily Liable | Secondarily Liable | USD ($) | Lease is Terminated After End of 2013 | |||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | EUR (€) | USD ($) | lease | Secondarily Liable | USD ($) | USD ($) | USD ($) | SGD | Property Lease Guarantee | ||||||||||||||
Property Lease Guarantee | USD ($) | |||||||||||||||||||||||||||||||
USD ($) | ||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding guarantees, minimum term | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funding guarantees, maximum term | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liability for guarantees | ' | $3 | $46 | $2 | $44 | $4 | $40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2 | ' | ' | ' | ' | ' | ' | ' | $1 | ' |
Maximum potential amount of future fundings | ' | ' | 199 | ' | ' | 83 | 99 | 20 | 11 | 1 | 102 | 27 | ' | ' | 75 | ' | 4 | 22 | 1 | ' | ' | ' | 17 | ' | ' | ' | 2 | 3 | 12 | 16 | ' | 6 |
Cash collateral in the event funding is required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Lease Extension, Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash collateral in the event funding is required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit provided by Sunrise, amount available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85 | ' | ' | ' | ' | ' | ' |
Collateral for continuing lease obligation contingency, future minimum annual payments due | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual rent payments, approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining rent payments, approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee obligations, cash collateralized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | € 4 | € 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Contingencies_Commitments_and_
Contingencies - Commitments and Letters of Credit (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jan. 14, 2014 | Jan. 14, 2014 |
USD ($) | EUR (€) | Real Estate Investment | Real Estate Investment | Information Technology, Software and Maintenance Services | Renovation of Leased Hotel | Investment in Other Joint Venture Commitment | Commitments | Full Service and Limited Service | Limited Service | Upper Limit | Upper Limit | Upper Limit | Group 4 | Group 4 | Group 4 | Group 4 | Group 4 | Group 4 | Outside Effective Credit Facility | Line of Credit Facility | Debt Securities | Debt Securities | Subsequent Event | Subsequent Event | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | Equity Investment For Noncontrolling Interest In Partnership Commitment | Equity Investment For Noncontrolling Interest In Partnership Commitment | Real Estate Investment | Full Service and Limited Service | Limited Service | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | Investment in Other Joint Venture Commitment | USD ($) | USD ($) | Mandatorily Redeemable Preferred Equity Ownership Interest | Mandatorily Redeemable Preferred Equity Ownership Interest | New York City EDITION Hotel | Primary Obligor | ||||
USD ($) | USD ($) | USD ($) | Equity Investment For Noncontrolling Interest In Partnership Commitment | Equity Investment For Noncontrolling Interest In Partnership Commitment | Entity | Entity | USD ($) | EUR (€) | USD ($) | EUR (€) | hotel | USD ($) | USD ($) | Guarantee, Other | |||||||||||
USD ($) | USD ($) | New York City EDITION Hotel | |||||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11 | $10 | $23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' |
Investment commitments expected to be funded | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment commitments expected to be funded in 2014 | ' | ' | 8 | ' | ' | 18 | ' | ' | 6 | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment commitments expected to be funded in 2015 | ' | ' | 3 | ' | ' | ' | ' | ' | 2 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment commitments not expected to be funded | ' | ' | ' | ' | ' | ' | ' | 35 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition interests in joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new joint ventures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfunded purchase commitments expiring this year | ' | ' | 45 | 33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded within two years | ' | ' | ' | ' | 152 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2014 | ' | ' | ' | ' | 107 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2015 | ' | ' | ' | ' | 32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase commitments expected to be funded in 2016 | ' | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of hotels | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Put option agreement, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years |
Put option agreement, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 315 | ' |
Put option agreement, extended term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years |
Letters of credit outstanding | 80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79 | 1 | ' | ' | ' | ' |
Surety bonds issued | $122 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum_Potential_Amount_of_Fu
Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings (Detail) (Primary Obligor, USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | $199 |
Liability for Guarantees | 46 |
Guarantee, Indebtedness of Others | ' |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | 83 |
Liability for Guarantees | 4 |
Guarantee, Operating Profit | ' |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | 99 |
Liability for Guarantees | 40 |
Guarantee, Other | ' |
Guarantor Obligations [Line Items] | ' |
Maximum Potential Amount of Future Fundings | 17 |
Liability for Guarantees | $2 |
Contingencies_Legal_Proceeding
Contingencies - Legal Proceedings (Details) (Pricing Investigation by Korea Fair Trade Commission) | Mar. 31, 2012 |
location | |
Pricing Investigation by Korea Fair Trade Commission | ' |
Loss Contingencies [Line Items] | ' |
Number of hotels included in pricing investigation, managed by Company | 2 |
Business_Segments_Additional_I
Business Segments - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2013 | Mar. 31, 2014 |
USD ($) | USD ($) | USD ($) | EUR (€) | Total segment | Total segment | Total segment | Total segment | Total segment | Total segment | Total segment | Total segment | Total segment | Total segment | Total segment | Total segment | Total segment | Total segment | Assets held for sale | Subsequent Event | |
segment | USD ($) | USD ($) | USD ($) | International Operations | International Operations | International Operations | Asia | Europe | Americas Excluding The United States | Middle East And Africa | Ireland and the United Kingdom | Former Timeshare Segment | Former Timeshare Segment | Former Timeshare Segment | USD ($) | segment | ||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 |
Number of operating segments related to reorganization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 |
Number of business segments | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling expenses | ' | ' | ' | ' | $49 | $53 | $354 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of selling expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82.00% | ' | ' |
Revenues | 12,784 | 11,814 | 12,317 | ' | 12,518 | 11,526 | 12,197 | 2,149 | 1,912 | 1,945 | ' | ' | ' | ' | ' | 0 | 0 | 1,438 | ' | ' |
Segment financial results | 897 | 849 | 356 | ' | ' | ' | ' | 269 | 283 | 172 | 91 | 50 | 84 | 18 | 26 | ' | ' | ' | ' | ' |
Property and equipment | 1,543 | 1,539 | ' | ' | ' | ' | ' | 238 | 491 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed assets, held for sale | $105 | ' | ' | € 76 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $341 | ' |
Revenues_Detail
Revenues (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Revenues | $12,784 | $11,814 | $12,317 |
Total segment | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Revenues | 12,518 | 11,526 | 12,197 |
Total segment | North American Full-Service Segment | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Revenues | 7,978 | 7,276 | 6,773 |
Total segment | North American Limited-Service Segment | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Revenues | 2,583 | 2,456 | 2,350 |
Total segment | International Segment | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Revenues | 1,957 | 1,794 | 1,636 |
Total segment | Former Timeshare Segment | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Revenues | 0 | 0 | 1,438 |
Other unallocated corporate | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Revenues | $266 | $288 | $120 |
Net_Income_Detail
Net Income (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | |||
Interest expense and interest income | ($97) | [1] | ($120) | [1] | ($107) | [1] |
Income taxes | -271 | -278 | -158 | |||
Net income | 626 | 571 | 198 | |||
Interest expense | 120 | [2] | 137 | [2] | 164 | [2] |
Former Timeshare Segment | ' | ' | ' | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | |||
Interest expense | ' | ' | 43 | |||
Total segment | ' | ' | ' | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | |||
Segment financial results | 1,197 | 1,165 | 754 | |||
Total segment | North American Full-Service Segment | ' | ' | ' | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | |||
Segment financial results | 490 | 442 | 374 | |||
Total segment | North American Limited-Service Segment | ' | ' | ' | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | |||
Segment financial results | 479 | 472 | 382 | |||
Total segment | International Segment | ' | ' | ' | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | |||
Segment financial results | 228 | 251 | 215 | |||
Total segment | Former Timeshare Segment | ' | ' | ' | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | |||
Segment financial results | 0 | 0 | -217 | |||
Other unallocated corporate | ' | ' | ' | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | |||
Segment financial results | ($203) | ($196) | ($291) | |||
[1] | The $164 million of interest expense shown on the Income Statement for year-end 2011 includes $43 million that we allocated to our former Timeshare segment. | |||||
[2] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
Depreciation_and_Amortization_
Depreciation and Amortization (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | $127 | $102 | $144 |
Total segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 120 | 95 | 137 |
Total segment | North American Full-Service Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 57 | 46 | 50 |
Total segment | North American Limited-Service Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 21 | 16 | 23 |
Total segment | International Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 42 | 33 | 35 |
Total segment | Former Timeshare Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | 0 | 0 | 29 |
Other unallocated corporate | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Depreciation and amortization | $7 | $7 | $7 |
Goodwill_Detail
Goodwill (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
In Millions, unless otherwise specified | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Goodwill | $928 | $928 | $929 |
Accumulated impairment losses | -54 | -54 | -54 |
Goodwill, net | 874 | 874 | 875 |
Total segment | North American Full-Service Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Goodwill | 392 | 392 | 392 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, net | 392 | 392 | 392 |
Total segment | North American Limited-Service Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Goodwill | 125 | 125 | 126 |
Accumulated impairment losses | -54 | -54 | -54 |
Goodwill, net | 71 | 71 | 72 |
Total segment | International Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Goodwill | 411 | 411 | 411 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill, net | $411 | $411 | $411 |
Capital_Expenditures_Detail
Capital Expenditures (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | $404 | $437 | $183 |
Total segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | 354 | 372 | 124 |
Total segment | North American Full-Service Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | 253 | 257 | 25 |
Total segment | North American Limited-Service Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | 8 | 19 | 11 |
Total segment | International Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | 93 | 96 | 75 |
Total segment | Former Timeshare Segment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | 0 | 0 | 13 |
Other unallocated corporate | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Capital expenditures | $50 | $65 | $59 |
Spinoff_Additional_Information
Spin-off - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | 11 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 21, 2011 | Sep. 09, 2011 | Nov. 20, 2011 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Nov. 10, 2011 | Nov. 20, 2011 | Oct. 28, 2011 | Sep. 09, 2011 | Sep. 09, 2011 | Dec. 28, 2012 | Dec. 28, 2012 | Dec. 28, 2012 | Sep. 09, 2011 | |||
Warehouse Facility | Preferred Stock Sale | Inventory | Property and Equipment | Former Timeshare Segment | Lower Limit | Upper Limit | Subsidiary, MVW | ||||||||||
Former Timeshare Segment | Former Timeshare Segment | Warehouse Facility | |||||||||||||||
Segment Reporting Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Spin-off distribution ratio, spinnee shares received | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Spin-off distribution ratio, spinnor shares held | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Franchise fees, annual fee for use of Marriott timeshare and Ritz-Carlton fractional brands | ' | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Franchise fees, percentage of developer contract sales | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Franchise fees, percentage of gross resales | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Decrease to stockholders' equity resulting from spin-off transaction | ' | ' | ' | ' | -3,000,000 | [1] | 1,162,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Spin-off transaction expenses recognized | ' | ' | 34,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Spin-off cash distribution, net | ' | ' | 160,000,000 | ' | ' | ' | ' | 122,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Secured warehouse credit facility to be used on short-term financing | ' | ' | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ||
Proceeds from sale of stock in MVW, net | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | ' | ' | ' | ' | ' | ' | ||
Gain (loss) recognized as a result of spin-off | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Timeshare strategy impairment, land sales time period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | '24 months | ' | ||
Timeshare strategy impairment, inventory sales time period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ||
Timeshare strategy-impairment charges | ' | 324,000,000 | ' | 0 | 0 | 324,000,000 | ' | ' | ' | 256,000,000 | 68,000,000 | ' | ' | ' | ' | ||
Timeshare strategy-impairment charges, after-tax | ' | $234,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | The abbreviation MVW means Marriott Vacations Worldwide Corporation. |
Spinoff_Net_Assets_Contributed
Spin-off - Net Assets Contributed (Details) (MVW Spin-off, USD $) | Nov. 21, 2011 |
In Millions, unless otherwise specified | |
MVW Spin-off | ' |
Segment Reporting Disclosure [Line Items] | ' |
Cash and equivalents | $52 |
Accounts and notes receivable | 247 |
Inventory | 982 |
Other current assets | 293 |
Property and equipment and other | 284 |
Loans to timeshare owners | 987 |
Other current liabilities | -533 |
Current portion of long-term debt | -122 |
Long-term debt | -773 |
Other long-term liabilities | -255 |
SPIN-OFF OF MVW | $1,162 |
Cash_Flows_Between_us_and_the_
Cash Flows Between us and the Timeshare Notes Securitization Variable Interest Entities (Detail) (Former Timeshare Segment, USD $) | 11 Months Ended |
In Millions, unless otherwise specified | Nov. 20, 2011 |
Former Timeshare Segment | ' |
Variable Interest Entity [Line Items] | ' |
Proceeds from securitization | $122 |
Principal receipts | 188 |
Interest receipts | 112 |
Total | 422 |
Principal to investors | -185 |
Repurchases | -64 |
Interest to investors | -39 |
Total | -288 |
Net Cash Flows | $134 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 12 Months Ended | 11 Months Ended | 11 Months Ended | 12 Months Ended | 11 Months Ended | 3 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 30, 2011 | Nov. 20, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 20, 2011 | Dec. 30, 2011 | Nov. 20, 2011 | Nov. 20, 2011 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |||
Lower Limit | Upper Limit | CTF Entity | CTF Entity | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Former Timeshare Segment | Former Timeshare Segment | Interest Income | Interest Income | Debt Securities | Debt Securities | Property Lease Guarantee | |||||||
location | Securitized Notes Receivable | CTF Entity | CTF Entity | CTF Entity | Variable Interest Entity, Primary Beneficiary | Mandatorily Redeemable Preferred Equity Ownership Interest | Mandatorily Redeemable Preferred Equity Ownership Interest | CTF Entity | |||||||||||||
Entity | Liability Exposure for Rent Payments | Partial Liability Exposure for Rent Payments | Securitized Notes Receivable | hotel | location | ||||||||||||||||
location | Secondarily Liable | Secondarily Liable | |||||||||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest income | $0 | $0 | $1,088 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $143 | $116 | ' | ' | ' | |||
Interest expense | 120 | [1] | 137 | [1] | 164 | [1] | ' | ' | ' | ' | 39 | ' | ' | ' | ' | 43 | ' | ' | ' | ' | ' |
Debt issuance cost amortization | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Limit to repurchasing defaulted mortgage notes at the outstanding principal balance | ' | ' | ' | 10.00% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Defaulted notes voluntarily repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43 | ' | ' | ' | ' | ' | ' | |||
Non defaulted notes voluntarily repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21 | ' | ' | ' | ' | ' | ' | |||
Held-to-maturity securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | ' | ' | |||
Number of hotels | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | |||
Maximum exposure to loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80 | ' | |||
Percent of tenant entities owned by CTF | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of hotels managed | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of tenant entities to whom hotel management services provided | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of properties fully released from guarantees with CTF | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of properties partially released from guarantees with CTF | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
CTF trust account | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of hotels liable cash flow shortfalls | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | |||
Future lease payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | $4 | ' | ' | ' | ' | ' | ' | ' | |||
Number of additional hotels liable cash flow shortfalls | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | |||
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
Future_Obligations_Under_Opera
Future Obligations Under Operating Leases (Detail) (Primary Obligations Operating Leases, USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Primary Obligations Operating Leases | ' |
Operating Leased Assets [Line Items] | ' |
Minimum operating lease payments - 2014 | $134 |
Minimum operating lease payments - 2015 | 130 |
Minimum operating lease payments - 2016 | 118 |
Minimum operating lease payments - 2017 | 103 |
Minimum operating lease payments - 2018 | 86 |
Minimum operating lease payments - thereafter | 583 |
Total minimum operating lease payments where we are the primary obligor | $1,154 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Lower Limit | Upper Limit | Primary Obligations Operating Leases | Consolidated Subsidiaries Non Recourse to Parent | Secondarily Liable | ||
Contract | Primary Obligations Operating Leases | CTF Entity | |||||
Variable Interest Entity, Not Primary Beneficiary | |||||||
Operating Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Leases, initial terms | ' | ' | ' | '20 years | ' | ' | ' |
Number of lease renewal options | ' | ' | 1 | ' | ' | ' | ' |
Renewal option period | ' | ' | '5 years | '10 years | ' | ' | ' |
Obligations of consolidated subsidiaries | ' | ' | ' | ' | $1,154 | $264 | $4 |
Capital leases, total minimum lease payments | 53 | ' | ' | ' | ' | ' | ' |
Present value of net minimum lease payments associated with capital leases | 51 | 50 | ' | ' | ' | ' | ' |
Other current liabilities (liabilities held-for-sale) | 46 | 0 | ' | ' | ' | ' | ' |
Capital leases, future minimum payments due, remainder of fiscal year | $5 | ' | ' | ' | ' | ' | ' |
Composition_of_Rent_Expense_As
Composition of Rent Expense Associated with Operating Leases (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Leases [Abstract] | ' | ' | ' |
Minimum rentals | $159 | $188 | $240 |
Additional rentals | 56 | 62 | 66 |
Operating leases, rent expense, total | $215 | $250 | $306 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Related Party Transaction [Line Items] | ' |
Undistributed earnings | $2 |
Lower Limit | ' |
Related Party Transaction [Line Items] | ' |
Ownership interest in equity method investments | 10.00% |
Upper Limit | ' |
Related Party Transaction [Line Items] | ' |
Ownership interest in equity method investments | 49.00% |
Financial_Data_Resulting_from_
Financial Data Resulting from Transactions with Related Parties, Income Statement Data (Detail) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 | |||
Related Party Transaction [Line Items] | ' | ' | ' | |||
Base management fees | $621 | [1] | $581 | [1] | $602 | [1] |
Incentive management fees | 256 | [1] | 232 | [1] | 195 | [1] |
Cost reimbursements | 10,291 | [1] | 9,405 | [1] | 8,843 | [1] |
Revenues | 12,784 | 11,814 | 12,317 | |||
General, administrative, and other | -726 | [1] | -645 | [1] | -752 | [1] |
Reimbursed costs | -10,291 | [1] | -9,405 | [1] | -8,843 | [1] |
Related Party Transactions | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | |||
Base management fees | 17 | 26 | 37 | |||
Incentive management fees | 1 | 5 | 0 | |||
Cost reimbursements | 236 | 315 | 383 | |||
Owned, leased, corporate housing, and other | 1 | 3 | 8 | |||
Revenues | 255 | 349 | 428 | |||
General, administrative, and other | -5 | 0 | -5 | |||
Reimbursed costs | -236 | -315 | -383 | |||
Gains and other income | 0 | 43 | 4 | |||
Interest expense-capitalized | 0 | 1 | 2 | |||
Interest income | 4 | 3 | 3 | |||
Equity in losses | ($5) | ($13) | ($13) | |||
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
Financial_Data_Resulting_from_1
Financial Data Resulting from Transactions with Related Parties, Balance Sheet Data (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 | ||
In Millions, unless otherwise specified | ||||
Related Party Transaction [Line Items] | ' | ' | ||
Current assets-accounts and notes receivable | $1,081 | [1] | $1,028 | [1] |
Contract acquisition costs and other | 1,131 | [1] | 1,115 | [1] |
Equity and cost method investments | 222 | [1] | 216 | [1] |
Deferred taxes, net asset | 926 | 950 | ||
Current liabilities: | ' | ' | ||
Other | -629 | [1] | -459 | [1] |
Other long-term liabilities | -912 | [1] | -898 | [1] |
Related Party Transactions | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Current assets-accounts and notes receivable | 22 | 18 | ||
Contract acquisition costs and other | 20 | 21 | ||
Equity and cost method investments | 207 | 195 | ||
Deferred taxes, net asset | 16 | 17 | ||
Other | 16 | 20 | ||
Current liabilities: | ' | ' | ||
Other | -13 | -2 | ||
Other long-term liabilities | ($2) | ($2) | ||
[1] | See Footnote No. 18, "Related Party Transactions," to our Consolidated Financial Statements for disclosure of related party amounts. |
Equity_Method_Investment_Summa
Equity Method Investment Summarized Financial Information, Income Statement (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ' | ' | ' |
Sales | $721 | $902 | $1,215 |
Net income (loss) | $15 | ($4) | ($58) |
Equity_Method_Investment_Summa1
Equity Method Investment Summarized Financial Information, Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 28, 2012 |
In Millions, unless otherwise specified | ||
Related Party Transactions [Abstract] | ' | ' |
Assets (primarily comprised of hotel real estate managed by us) | $1,832 | $1,486 |
Liabilities | $1,482 | $1,245 |
Recovered_Sheet6
Relationship with Major Customer - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 30, 2011 |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenues | $12,784 | $11,814 | $12,317 |
Host Hotels & Resorts Inc | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Number of lodging properties operated under long-term agreements of affiliated unconsolidated partnerships | 66 | 124 | ' |
Revenues | 1,957 | 2,226 | 2,210 |
Host Partnerships | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Number of lodging properties operated under long-term agreements of affiliated unconsolidated partnerships | 10 | 10 | 5 |
Revenues | $87 | $75 | $59 |