Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 26, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MAR | |
Entity Registrant Name | MARRIOTT INTERNATIONAL INC /MD/ | |
Entity Central Index Key | 1,048,286 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 364,581,283 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES | ||||
Base management fees | $ 269 | $ 180 | $ 818 | $ 538 |
Franchise fees | 426 | 290 | 1,207 | 813 |
Incentive management fees | 136 | 81 | 437 | 276 |
Management and franchise fees | 831 | 551 | 2,462 | 1,627 |
Owned, leased, and other revenue | 452 | 239 | 1,349 | 650 |
Cost reimbursements | 4,380 | 3,152 | 13,208 | 9,339 |
Revenues | 5,663 | 3,942 | 17,019 | 11,616 |
OPERATING COSTS AND EXPENSES | ||||
Owned, leased, and other - direct | 356 | 194 | 1,069 | 533 |
Reimbursed costs | 4,380 | 3,152 | 13,208 | 9,339 |
Depreciation, amortization, and other | 68 | 36 | 218 | 97 |
General, administrative, and other | 199 | 161 | 635 | 470 |
Merger-related costs and charges | 28 | 228 | 100 | 250 |
Costs and Expenses, Total | 5,031 | 3,771 | 15,230 | 10,689 |
OPERATING INCOME | 632 | 171 | 1,789 | 927 |
Gains and other income, net | 6 | 3 | 31 | 3 |
Interest expense | (73) | (55) | (216) | (159) |
Interest income | 9 | 9 | 24 | 22 |
Equity in earnings | 6 | 3 | 29 | 8 |
INCOME BEFORE INCOME TAXES | 580 | 131 | 1,657 | 801 |
Provision for income taxes | (188) | (61) | (486) | (265) |
NET INCOME | $ 392 | $ 70 | $ 1,171 | $ 536 |
EARNINGS PER SHARE | ||||
Earnings per share - basic (in USD per share) | $ 1.05 | $ 0.26 | $ 3.09 | $ 2.08 |
Earnings per share - diluted (in USD per share) | 1.04 | 0.26 | 3.06 | 2.04 |
CASH DIVIDENDS DECLARED PER SHARE (in USD per share) | $ 0.33 | $ 0.30 | $ 0.96 | $ 0.85 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 392 | $ 70 | $ 1,171 | $ 536 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 107 | 2 | 457 | 27 |
Derivative instrument adjustments, net of tax | (5) | 1 | (13) | (3) |
Unrealized gain (loss) on available-for-sale securities, net of tax | 1 | 0 | (1) | 0 |
Reclassification of losses, net of tax | 4 | 1 | 5 | 3 |
Net other comprehensive income (loss) | 107 | 4 | 448 | 27 |
Comprehensive income | $ 499 | $ 74 | $ 1,619 | $ 563 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and equivalents | $ 508 | $ 858 |
Accounts and notes receivable, net | 1,914 | 1,695 |
Prepaid expenses and other | 225 | 230 |
Assets held for sale | 297 | 588 |
Assets, current, total | 2,944 | 3,371 |
Property and equipment, net | 1,894 | 2,335 |
Intangible assets | ||
Goodwill | 9,182 | 7,598 |
Goodwill and intangible assets, net, total | 17,940 | 16,868 |
Equity and cost method investments | 720 | 728 |
Notes receivable, net | 228 | 245 |
Deferred tax assets | 110 | 116 |
Other noncurrent assets | 400 | 477 |
Total assets | 24,236 | 24,140 |
Current liabilities | ||
Current portion of long-term debt | 398 | 309 |
Accounts payable | 733 | 687 |
Accrued payroll and benefits | 1,133 | 1,174 |
Liability for guest loyalty programs | 1,959 | 1,866 |
Accrued expenses and other | 1,385 | 1,111 |
Liabilities, current, total | 5,608 | 5,147 |
Long-term debt | 8,271 | 8,197 |
Liability for guest loyalty programs | 2,824 | 2,675 |
Deferred tax liabilities | 927 | 1,020 |
Other noncurrent liabilities | 2,094 | 1,744 |
Shareholders’ equity | ||
Class A Common Stock | 5 | 5 |
Additional paid-in-capital | 5,744 | 5,808 |
Retained earnings | 7,310 | 6,501 |
Treasury stock, at cost | (8,498) | (6,460) |
Accumulated other comprehensive loss | (49) | (497) |
Stockholders' equity (deficit) attributable to parent | 4,512 | 5,357 |
Liabilities and equity (deficit), total | 24,236 | 24,140 |
Brands | ||
Intangible assets | ||
Intangible assets | 5,898 | 6,509 |
Contract acquisition costs and other | ||
Intangible assets | ||
Intangible assets | $ 2,860 | $ 2,761 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,171 | $ 536 |
Adjustments to reconcile to cash provided by operating activities: | ||
Depreciation, amortization, and other | 218 | 97 |
Share-based compensation | 139 | 117 |
Income taxes | 73 | 1 |
Liability for guest loyalty programs | 236 | 179 |
Merger-related charges | (117) | 172 |
Working capital changes | 98 | 27 |
Other | 98 | 77 |
Net cash provided by operating activities | 1,916 | 1,206 |
INVESTING ACTIVITIES | ||
Acquisition of a business, net of cash acquired | 0 | (2,412) |
Capital expenditures | (155) | (132) |
Dispositions | 482 | 53 |
Loan advances | (85) | (24) |
Loan collections | 91 | 61 |
Contract acquisition costs | (129) | (55) |
Other | (14) | 22 |
Net cash provided by (used in) investing activities | 190 | (2,487) |
FINANCING ACTIVITIES | ||
Commercial paper/Credit facility, net | 455 | 1,657 |
Issuance of long-term debt | 1 | 1,483 |
Repayment of long-term debt | (305) | (296) |
Issuance of Class A Common Stock | 4 | 22 |
Dividends paid | (362) | (257) |
Purchase of treasury stock | (2,105) | (248) |
Share-based compensation withholding taxes | (144) | (74) |
Other | 0 | (24) |
Net cash (used in) provided by financing activities | (2,456) | 2,263 |
(DECREASE) INCREASE IN CASH AND EQUIVALENTS | (350) | 982 |
CASH AND EQUIVALENTS, beginning of period | 858 | 96 |
CASH AND EQUIVALENTS, end of period | $ 508 | $ 1,078 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The condensed consolidated financial statements present the results of operations, financial position, and cash flows of Marriott International, Inc. and subsidiaries (referred to in this report as “we,” “us,” “Marriott,” or “the Company”). In order to make this report easier to read, we also refer throughout to (i) our Condensed Consolidated Financial Statements as our “Financial Statements,” (ii) our Condensed Consolidated Statements of Income as our “Income Statements,” (iii) our Condensed Consolidated Balance Sheets as our “Balance Sheets,” (iv) our Condensed Consolidated Statements of Cash Flows as our “Statements of Cash Flows,” (v) our properties, brands, or markets in the United States (“U.S.”) and Canada as “North America” or “North American,” and (vi) our properties, brands, or markets outside of the U.S. and Canada as “International.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in these Notes to Condensed Consolidated Financial Statements, unless otherwise noted. These Financial Statements have not been audited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 (“ 2016 Form 10-K”). Certain terms not otherwise defined in this Form 10-Q have the meanings specified in our 2016 Form 10-K. Preparation of financial statements that conform with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates. The accompanying Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position as of September 30, 2017 and December 31, 2016 , the results of our operations for the three and nine months ended September 30, 2017 and September 30, 2016 , and cash flows for the nine months ended September 30, 2017 and September 30, 2016 . Interim results may not be indicative of fiscal year performance because of seasonal and short-term variations. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements. Beginning in the 2017 first quarter, we reclassified branding fees for third-party residential sales and credit card licensing to the “ Franchise fees ” caption from the “ Owned, leased, and other revenue ” caption on our Income Statements, as we believe branding fees are more akin to franchise royalties than owned and leased hotel profits. Branding fees totaled $68 million for the three months ended September 30, 2017 and $195 million for the nine months ended September 30, 2017 . We reclassified the prior period amounts, which totaled $40 million for the three months ended September 30, 2016 and $121 million for the nine months ended September 30, 2016 , to conform to our current presentation. In the 2017 first quarter, our Asia Pacific operating segment met the applicable accounting criteria to be a reportable segment. Our Europe, Middle East and Africa, and Caribbean and Latin America operating segments do not individually meet the criteria for separate disclosure as reportable segments, and accordingly we combined them into an “all other category” which we refer to as “ Other International .” We reclassified prior period amounts to conform to our current presentation. See Footnote 11 “ Business Segments .” Acquisition of Starwood Hotels & Resorts Worldwide On September 23, 2016 (the “Merger Date”), we completed the acquisition of Starwood Hotels & Resorts Worldwide, LLC, formerly known as Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”), through a series of transactions (the “Starwood Combination”), after which Starwood became an indirect wholly-owned subsidiary of the Company. Accordingly, our Income Statements include Starwood’s results of operations from the Merger Date. We refer to our business associated with brands that were in our portfolio before the Starwood Combination as “Legacy-Marriott” and to the Starwood business and brands that we acquired as “Legacy-Starwood.” See Footnote 2 “ Acquisitions and Dispositions ” for more information on the Starwood Combination. New Accounting Standards Accounting Standards Update No. 2014-09 - “Revenue from Contracts with Customers” (“ASU 2014-09”) ASU 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , as well as most industry-specific guidance, and enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. ASU 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. The standard will be effective for us beginning in our 2018 first quarter. We are permitted to use either the full retrospective or the modified retrospective method when adopting ASU 2014-09, and we are evaluating the available adoption methods. We are still assessing the potential impact that ASU 2014-09 will have on our financial statements and disclosures, but we believe that recognition of base management fees, franchise royalty fees, and owned and leased revenues will remain largely unchanged. We expect to recognize gains from the sale of real estate assets when control of the asset is transferred to the buyer, generally at the time the sale closes. Under current guidance, we defer gains on sales of real estate assets if we maintain substantial continuing involvement. We do not expect that this change will have a material impact on our Financial Statements, as we typically do not have real estate sale transactions that require us to defer significant gains. There likely will be changes to our revenue recognition policies related to the following: • We expect to recognize franchise application and relicensing fees over the term of the franchise contract rather than at hotel opening or relicensing. • We expect to present the amortization of contract acquisition costs paid to customers as a reduction of revenue rather than including such costs in “ Depreciation, amortization, and other ” on our Income Statements. • We expect to capitalize fewer contract acquisition costs as certain costs will not meet the capitalization criteria specified by ASU 2014-09. • We expect to recognize incentive management fees throughout the year to the extent that we determine that it is probable that a significant reversal will not occur as a result of future hotel profits or cash flows. This may result in a different pattern of recognition for incentive management fees from quarter to quarter than under the current guidance, but we do not expect a material impact on the total incentive management fees we will recognize during the full fiscal year. • Under the new guidance, we will generally be considered an agent in the transaction when loyalty program awards are redeemed. As a result, we will only recognize revenue for the net amount of consideration to which we are entitled for arranging for the redemption award, rather than the gross amount. While we have not yet fully quantified the impact of this change, it will have no impact on our operating or net income. • We expect to recognize temporary timing differences between costs incurred for centralized programs and services and the related reimbursement from hotel owners in our operating and net income in the period they occur. We operate these programs with the objective of breaking even, and under current guidance, we record any temporary timing differences on our Balance Sheets. Accounting Standards Update No. 2016-02 - “Leases” (“ASU 2016-02”) ASU 2016-02 introduces a lessee model that brings substantially all leases onto the balance sheet. Under the new standard, a lessee will recognize on its balance sheet a lease liability and a right-of-use asset for most leases, including operating leases. The new standard will also distinguish leases as either finance leases or operating leases. This distinction will affect how leases are measured and presented in the income statement and statement of cash flows. The standard is effective for us beginning in our 2019 first quarter, and we will be required to use a modified retrospective transition approach, which means that we will apply the provisions of ASU 2016-02 to each lease that existed at the beginning of the earliest comparative period presented in the financial statements, as well as leases entered into after that date. We are still assessing the potential impact that ASU 2016-02 will have on our financial statements and disclosures, but we expect that it will have a material effect on our Balance Sheets. Accounting Standards Update No. 2016-09 - “Stock Compensation” (“ASU 2016-09”) We adopted ASU 2016-09 in the 2017 first quarter, which involves several aspects of the accounting for share-based payments. The new guidance had the following impacts on our Financial Statements: • We now record excess tax benefits (or deficiencies) as income tax benefit (or expense) in our Income Statements. Previously, we recorded excess tax benefits (deficiencies) in additional paid-in-capital in our Balance Sheets. As required, we prospectively applied this amendment in our Income Statements, which resulted in a benefit of $62 million to our provision for income taxes, approximately $0.16 per diluted share, for the nine months ended September 30, 2017 . • We now classify excess tax benefits (or deficiencies) along with other income taxes in operating activities in our Statements of Cash Flows. ASU 2016-09 allowed for this amendment to be applied either prospectively or retrospectively. For consistency with our application of ASU 2016-09 in our Income Statements, we applied this amendment prospectively in our Statements of Cash Flows. For the nine months ended September 30, 2017 , operating activities in our Statements of Cash Flows include $62 million from excess tax benefits. For the nine months ended September 30, 2016 , we classified $21 million of excess tax benefits as financing inflows. • We now classify cash paid to taxing authorities when we withhold shares for employee tax-withholding purposes as a financing activity. As required, we retrospectively applied this amendment in our Statements of Cash Flows, and accordingly we reclassified $74 million of cash outflows from operating activities to financing activities for the nine months ended September 30, 2016 . Accounting Standards Update No. 2016-16 - “Accounting for Income Taxes: Intra-Entity Transfers of Assets Other than Inventory” (“ASU 2016-16”) ASU 2016-16 requires companies to recognize the income tax effects of intercompany sales of assets other than inventory when the transfer occurs. Under current GAAP, the tax effects of intercompany sales are deferred until the transferred asset is sold to a third party or otherwise recovered through use. ASU 2016-16 will be effective for us beginning in our 2018 first quarter, and we will be required to use a modified retrospective transition approach with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. We are still assessing the potential impact that the standard will have on our financial statements and disclosures. Accounting Standards Update No. 2017-01 - “Clarifying the Definition of a Business” (“ASU 2017-01”) We prospectively adopted ASU 2017-01 in the 2017 first quarter, which clarifies the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. We expect that under this new guidance, our hotel sales will generally qualify as asset disposals, with the result that no goodwill of the reporting unit will be assigned to the carrying value of the asset when calculating the gain or loss on sale. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | ACQUISITIONS AND DISPOSITIONS Starwood Combination The following table presents the fair value of each type of consideration that we transferred in the Starwood Combination: (in millions, except per share amounts) Equivalent shares of Marriott common stock issued in exchange for Starwood outstanding shares 134.4 Marriott common stock price as of Merger Date $ 68.44 Fair value of Marriott common stock issued in exchange for Starwood outstanding shares 9,198 Cash consideration to Starwood shareholders, net of cash acquired of $1,116 2,412 Fair value of Marriott equity-based awards issued in exchange for vested Starwood equity-based awards 71 Total consideration transferred, net of cash acquired $ 11,681 Fair Values of Assets Acquired and Liabilities Assumed . The following table presents our estimates of fair values of the assets that we acquired and the liabilities that we assumed on the Merger Date as preliminarily reported at year-end 2016 and as finalized at the end of the 2017 third quarter : ($ in millions) September 23, 2016 December 31, 2016) Adjustments (2) September 23, 2016 Working capital $ (180 ) $ (56 ) $ (236 ) Property and equipment, including assets held for sale 1,999 (293 ) 1,706 Identified intangible assets 7,957 (719 ) 7,238 Equity and cost method investments 579 (42 ) 537 Other noncurrent assets 224 (24 ) 200 Deferred income taxes, net (1,516 ) 52 (1,464 ) Guest loyalty program (1,631 ) (7 ) (1,638 ) Debt (1,871 ) (6 ) (1,877 ) Other noncurrent liabilities (654 ) (323 ) (977 ) Net assets acquired 4,907 (1,418 ) 3,489 Goodwill (1) 6,774 1,418 8,192 $ 11,681 $ — $ 11,681 (1) Goodwill primarily represents the value that we expect to obtain from synergies and growth opportunities from our combined operations, and it is not deductible for tax purposes. See Footnote 11 “ Business Segments ” for our assignment of goodwill by reportable segment. (2) Adjustments primarily reflect refinements of our valuation models related to certain acquired IT systems, our assumptions for capital expenditures of owned and leased hotels, discount rates, certain assumptions related to operating lease agreements, and our assumptions related to certain brands and management and franchise agreements, including contract terms (including renewal assumptions), tax rates, and royalty and growth rates used in the relief-from-royalty valuation models. We estimated the value of the acquired property and equipment using a combination of the income, cost, and market approaches, which are primarily based on significant Level 2 and Level 3 assumptions, such as estimates of future income growth, capitalization rates, discount rates, and capital expenditure needs of the hotel properties. Our equity method investments consist primarily of partnership and joint venture interests in entities that own hotel real estate. We estimated the value of the underlying real estate using the same methods as for property and equipment described above. We primarily valued debt using quoted market prices, which are considered Level 1 inputs as they are observable in the market. The following table presents our estimates of the fair values of Starwood’s identified intangible assets and their related estimated useful lives: Estimated Fair Value ($ in millions) Estimated Useful Life (in years) Brands $ 5,664 indefinite Management agreements and lease contract intangibles 751 10 - 25 Franchise agreements 746 10 - 80 Loyalty program marketing rights 77 30 $ 7,238 We estimated the value of Starwood’s brands using the relief-from-royalty method, which applies an estimated royalty rate to forecasted future cash flows, discounted to present value. We estimated the value of management and franchise agreements using the multi-period excess earnings method, which is a variation of the income approach. This method estimates an intangible asset’s value based on the present value of the incremental after-tax cash flows attributable to the intangible asset. We valued the lease contract intangibles using an income approach. These valuation approaches utilize Level 3 inputs. In connection with the Starwood Combination, we are currently assessing various regulatory compliance matters at several foreign Legacy-Starwood locations, including compliance with the U.S. Foreign Corrupt Practices Act (“FCPA”). The results of this assessment may give rise to contingencies that could require us to accrue expenses. While any such amounts are not currently estimable, we will continue to evaluate potential contingencies as we gather more information. Pro Forma Results of Operations . For the nine months ended September 30, 2016, pro forma revenues totaled $17,033 million , and pro forma net income totaled $878 million . Pro forma net income includes $54 million of integration costs, and it excludes $295 million of transaction and employee termination costs. As required by GAAP, these unaudited pro forma results assume we completed the Starwood Combination on January 1, 2015, use our estimates of the fair values of assets and liabilities as of the Merger Date, and do not reflect any cost saving synergies from operating efficiencies. They are not necessarily indicative of what the actual results of operations of the combined company would have been if the Starwood Combination had occurred on January 1, 2015, nor are they indicative of future results of operations. Dispositions and Planned Dispositions In the 2017 fourth quarter, we announced that the owners of Avendra LLC have reached a binding agreement to sell Avendra LLC to Aramark. We expect to receive approximately $650 million for our 55 percent interest in Avendra LLC. We committed to the owners of the hotels in our system that the benefits derived from Avendra LLC, including any dividends or sale proceeds above our original investment, would be used for the benefit of the hotels in our system. Accordingly, our share of the proceeds will be invested for the benefit of our system of hotels. We are currently developing these investment plans. At the end of the 2017 third quarter , we held $297 million of assets classified as “Assets held for sale” on our Balance Sheets related to a North American Full-Service hotel acquired in the Starwood Combination and the remaining Miami Beach EDITION residences. In the 2017 fourth quarter, we sold the North American Full-Service hotel and received C $337 million ( $269 million ) in cash. In the 2017 second quarter, we sold a North American Full-Service hotel and received $169 million in cash. We recognized a $24 million gain in the “ Gains and other income, net ” caption of our Income Statements. In the 2017 first quarter, we sold a North American Full-Service hotel, which we had acquired in the Starwood Combination and previously classified as “Assets held for sale,” and received $306 million in cash. In conjunction with the sale, we also transferred the associated ground lease, as a result of which our future minimum operating lease obligations decreased by approximately $194 million as of the date of the sale as follows: $ 3 million in 2017 , $ 4 million in 2018 , $ 4 million in 2019 , $ 4 million in 2020 , $ 4 million in 2021 , and $ 175 million thereafter. |
Merger-Related Costs and Charge
Merger-Related Costs and Charges | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Merger-Related Costs and Charges | MERGER-RELATED COSTS AND CHARGES The following table presents pre-tax merger-related costs and other charges that we incurred in connection with the Starwood Combination: Three Months Ended Nine Months Ended ($ in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Merger-related costs and charges Transaction costs $ 4 $ 18 $ 14 $ 31 Employee termination costs (3 ) 186 9 186 Integration costs 27 24 77 33 28 228 100 250 Interest expense — 9 — 22 $ 28 $ 237 $ 100 $ 272 Transaction costs represent costs related to the planning and execution of the Starwood Combination, primarily for financial advisory, legal, and other professional service fees. Employee termination costs represent adjustments or charges for employee severance, retention, and other termination related benefits. Integration costs primarily represent integration employee salaries and share-based compensation, change management consultants, and technology-related costs. Merger-related interest expense in the 2016 first three quarters reflects costs that we incurred for a bridge term loan facility commitment and incremental interest expense for debt incurred related to the Starwood Combination. In connection with the Starwood Combination, we initiated a restructuring program to achieve cost synergies from our combined operations. We did not allocate costs associated with our restructuring program to any of our business segments. The following table presents our restructuring reserve activity during the 2017 first three quarters : ($ in millions) Liability for employee termination costs Balance at year-end 2016 $ 192 Charges 4 Cash payments (110 ) Adjustments (1) (13 ) Balance at September 30, 2017, classified in “Accrued expenses and other” $ 73 (1) Adjustments primarily reflect the reversal of accruals for certain employees who accepted other positions at the Company or resigned and the impact of cumulative translation adjustments. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The table below presents the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share: Three Months Ended Nine Months Ended (in millions, except per share amounts) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Computation of Basic Earnings Per Share Net income $ 392 $ 70 $ 1,171 $ 536 Shares for basic earnings per share 372.3 266.2 378.5 258.3 Basic earnings per share $ 1.05 $ 0.26 $ 3.09 $ 2.08 Computation of Diluted Earnings Per Share Net income $ 392 $ 70 $ 1,171 $ 536 Shares for basic earnings per share 372.3 266.2 378.5 258.3 Effect of dilutive securities Share-based compensation 4.3 4.3 4.7 4.4 Shares for diluted earnings per share 376.6 270.5 383.2 262.7 Diluted earnings per share $ 1.04 $ 0.26 $ 3.06 $ 2.04 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We recorded share-based compensation expense of $44 million in the 2017 third quarter and $39 million in the 2016 third quarter , $139 million for the 2017 first three quarters , and $98 million for the 2016 first three quarters . Deferred compensation costs for unvested awards totaled $209 million at September 30, 2017 and $192 million at December 31, 2016 . RSUs and PSUs We granted 1.7 million RSUs during the 2017 first three quarters to certain officers, key employees, and non-employee directors, and those units vest generally over four years in equal annual installments commencing one year after the grant date. We granted 0.2 million PSUs in the 2017 first three quarters to certain executive officers, subject to continued employment and the satisfaction of certain performance conditions based on achievement of pre-established targets for Adjusted EBITDA, RevPAR Index, room openings, and/or net administrative expense over, or at the end of, a three -year performance period. RSUs, including PSUs, granted in the 2017 first three quarters had a weighted average grant-date fair value of $84 . SARs We granted 0.3 million SARs to officers and key employees during the 2017 first three quarters . These SARs generally expire ten years after the grant date and both vest and may be exercised in four equal annual installments commencing one year following the grant date. The weighted average grant-date fair value of SARs granted in the 2017 first three quarters was $30 , and the weighted average exercise price was $88 . We used the following assumptions as part of a binomial lattice-based valuation model to estimate the fair value of the SARs we granted during the 2017 first three quarters : Expected volatility 30.9 % Dividend yield 1.3 % Risk-free rate 2.4 % Expected term (in years) 8 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rate decreased to 32.5% for the 2017 third quarter from 46.4% for the 2016 third quarter , primarily compared to the limited tax benefit we recognized in 2016 from certain merger-related costs that we incurred in jurisdictions with lower tax rates and a tax benefit of $6 million from our adoption of ASU 2016-09. Our effective tax rate decreased to 29.3% for the 2017 first three quarters from 33.1% for the 2016 first three quarters , primarily due to a tax benefit of $62 million from the adoption of ASU 2016-09 and the release of a tax reserve of $12 million due to the favorable settlement of an uncertain tax position. The decrease was partially offset by an unfavorable comparison to the 2016 release of a valuation allowance of $15 million . We paid cash for income taxes, net of refunds, of $413 million in the 2017 first three quarters and $243 million in the 2016 first three quarters . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees We present the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for our debt service, operating profit, and other guarantees for which we are the primary obligor at September 30, 2017 in the following table: ($ in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 136 $ 19 Operating profit 248 117 Other 10 2 $ 394 $ 138 Contingent Purchase Obligations Times Square EDITION . We granted the lenders the right, upon an uncured event of default by the hotel owner under, and an acceleration of, the mortgage loan, to require us to purchase the hotel component of the property for $315 million during a period of two years after opening, which the lenders may extend for up to three years to complete foreclosure if the loan has been accelerated and certain other conditions are met. We accounted for this contingent purchase obligation as a guarantee, and our recorded liability at September 30, 2017 was $2 million . Sheraton Grand Chicago . We granted the owner a one-time right, exercisable in 2022, to require us to purchase the leasehold interest in the land and the hotel for $300 million in cash (the “put option”). If the owner exercises the put option, we have the option to purchase, at the same time the put transaction closes, the underlying fee simple interest in the land for an additional $200 million in cash. We accounted for the put option as a guarantee, and our recorded liability at September 30, 2017 was $57 million . We concluded that the entity that owns the Sheraton Grand Chicago hotel is a variable interest entity. We did not consolidate the entity because we do not have the power to direct the activities that most significantly impact the entity’s economic performance. Our maximum exposure to loss related to the entity is equal to the difference between the purchase price and the fair value of the hotel at the time that the put option is exercised, plus the maximum funding amount of an operating profit guarantee that we provided for the hotel. Other Contingencies See a description of certain contingencies relating to the Starwood Combination in Footnote 2 “ Acquisitions and Dispositions .” |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table at the end of the 2017 third quarter and year-end 2016 : At Period End ($ in millions) September 30, 2017 December 31, 2016 Senior Notes: Series I Notes, interest rate of 6.4%, face amount of $293, matured June 15, 2017 $ — $ 293 Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 598 597 Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 348 348 Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 348 347 Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 396 396 Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 447 446 Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 344 344 Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 743 742 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 743 742 Series S Notes, interest rate of 6.8%, face amount of $324, maturing May 15, 2018 334 346 Series T Notes, interest rate of 7.2%, face amount of $181, maturing December 1, 2019 199 206 Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 291 291 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 338 340 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 293 293 Commercial paper 2,791 2,311 Credit Facility — — Capital lease obligations 172 173 Other 284 291 8,669 8,506 Less: Current portion of long-term debt (398 ) (309 ) $ 8,271 $ 8,197 We paid cash for interest, net of amounts capitalized, of $171 million in the 2017 first three quarters and $99 million in the 2016 first three quarters . We are party to a multicurrency revolving credit agreement (the “Credit Facility”) that provides for up to $4,000 million of aggregate effective borrowings. See the “ Cash Requirements and Our Credit Facility ” caption later in this report in the “Liquidity and Capital Resources” section for further information on our Credit Facility and available borrowing capacity at September 30, 2017 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. We present the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table: September 30, 2017 December 31, 2016 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior, mezzanine, and other loans $ 228 $ 216 $ 245 $ 231 Total noncurrent financial assets $ 228 $ 216 $ 245 $ 231 Senior Notes $ (5,088 ) $ (5,161 ) $ (5,438 ) $ (5,394 ) Commercial paper (2,791 ) (2,791 ) (2,311 ) (2,311 ) Other long-term debt (226 ) (230 ) (280 ) (284 ) Other noncurrent liabilities (186 ) (186 ) (59 ) (59 ) Total noncurrent financial liabilities $ (8,291 ) $ (8,368 ) $ (8,088 ) $ (8,048 ) See the “Fair Value Measurements” caption of Footnote 2 “Summary of Significant Accounting Policies” of our 2016 Form 10-K for more information on the input levels we use in determining fair value. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income and Shareholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Other Comprehensive (Loss) Income and Shareholders' Equity | OTHER COMPREHENSIVE (LOSS) INCOME AND SHAREHOLDERS' EQUITY The following tables detail the accumulated other comprehensive (loss) income activity for the 2017 first three quarters and 2016 first three quarters : ($ in millions) Foreign Currency Translation Adjustments Derivative Instrument Adjustments Available-For-Sale Securities Unrealized Adjustments Pension and Postretirement Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2016 $ (503 ) $ (5 ) $ 6 $ 5 $ (497 ) Other comprehensive income (loss) before reclassifications (1) 457 (13 ) (1 ) — 443 Amounts reclassified from accumulated other comprehensive loss — 5 — — 5 Net other comprehensive income (loss) 457 (8 ) (1 ) — 448 Balance at September 30, 2017 $ (46 ) $ (13 ) $ 5 $ 5 $ (49 ) ($ in millions) Foreign Currency Translation Adjustments Derivative Instrument Adjustments Available-For-Sale Securities Unrealized Adjustments Pension and Postretirement Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2015 $ (192 ) $ (8 ) $ 4 $ — $ (196 ) Other comprehensive income (loss) before reclassifications (1) 27 (3 ) — — 24 Amounts reclassified from accumulated other comprehensive loss — 3 — — 3 Net other comprehensive income 27 — — — 27 Balance at September 30, 2016 $ (165 ) $ (8 ) $ 4 $ — $ (169 ) (1) Other comprehensive income before reclassifications for foreign currency translation adjustments includes losses on intra-entity foreign currency transactions that are of a long-term investment nature of $142 million for the 2017 first three quarters and $1 million for the 2016 first three quarters . The following table details the changes in common shares outstanding and shareholders’ equity for the 2017 first three quarters : (in millions, except per share amounts) Common Shares Outstanding Total Class A Common Stock Additional Paid-in- Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 386.1 Balance at year-end 2016 $ 5,357 $ 5 $ 5,808 $ 6,501 $ (6,460 ) $ (497 ) — Net income 1,171 — — 1,171 — — — Other comprehensive income 448 — — — — 448 — Dividends ($0.96 per share) (362 ) — — (362 ) — — 2.1 Employee stock plan (2 ) — (64 ) — 62 — (21.8 ) Purchase of treasury stock (2,100 ) — — — (2,100 ) — 366.4 Balance at September 30, 2017 $ 4,512 $ 5 $ 5,744 $ 7,310 $ (8,498 ) $ (49 ) |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS We are a diversified global lodging company with operations in the following reportable business segments: • North American Full-Service , which includes our Luxury and Premium brands located in the United States and Canada; • North American Limited-Service , which includes our Select brands located in the United States and Canada; • Asia Pacific , which includes all brand tiers in our Asia Pacific region; and • Other International , which includes all brand tiers in our Europe, Middle East and Africa, and Caribbean and Latin America regions. Our North American Full-Service , North American Limited-Service , and Asia Pacific segments meet the applicable accounting criteria to be reportable segments. Our Europe, Middle East and Africa, and Caribbean and Latin America operating segments individually do not meet the criteria for separate disclosure as reportable segments, and accordingly we combined them into an “all other category” which we refer to as “ Other International .” We evaluate the performance of our operating segments using “segment profits” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, or merger-related costs and charges. We assign gains and losses, equity in earnings or losses from our joint ventures, and direct general, administrative, and other expenses to each of our segments. “Other unallocated corporate” represents a portion of our revenues, general, administrative, and other expenses, merger-related costs and charges, equity in earnings or losses, and other gains or losses that we do not allocate to our segments. It also includes license fees we receive from our credit card programs and fees from vacation ownership licensing agreements, which we present in the “ Franchise fees ” caption of our Income Statements. Our President and Chief Executive Officer, who is our chief operating decision maker, monitors assets for the consolidated company but does not use assets by operating segment when assessing performance or making operating segment resource allocations. We did not allocate Legacy-Starwood’s results to our segments for the eight days ended September 30, 2016. Therefore, in the tables below, for the three and nine months ended September 30, 2016, the impact of Legacy-Starwood operations after the Merger Date is included in “Other unallocated corporate” and not in the segment results. Segment Revenues Three Months Ended Nine Months Ended ($ in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 North American Full-Service $ 3,436 $ 2,222 $ 10,631 $ 6,903 North American Limited-Service 1,061 936 3,017 2,675 Asia Pacific 337 141 968 428 Other International 688 404 1,966 1,244 Total segment revenues 5,522 3,703 16,582 11,250 Other unallocated corporate 141 239 437 366 Total consolidated revenues $ 5,663 $ 3,942 $ 17,019 $ 11,616 Segment Profits Three Months Ended Nine Months Ended ($ in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 North American Full-Service $ 258 $ 148 $ 879 $ 506 North American Limited-Service 228 193 629 539 Asia Pacific 88 24 237 78 Other International 120 43 304 139 Total segment profits 694 408 2,049 1,262 Other unallocated corporate (51 ) (231 ) (201 ) (324 ) Interest expense, net of interest income (63 ) (46 ) (191 ) (137 ) Income taxes (188 ) (61 ) (486 ) (265 ) Net income $ 392 $ 70 $ 1,171 $ 536 Goodwill ($ in millions) North American Full-Service North American Limited-Service Asia Pacific Other International Total Goodwill Year-end 2016 balance: Goodwill $ 2,905 $ 1,558 $ 1,572 $ 1,617 $ 7,652 Accumulated impairment losses — (54 ) — — (54 ) 2,905 1,504 1,572 1,617 7,598 Adjustments (1) $ 664 $ 255 $ 276 $ 223 $ 1,418 Foreign currency translation 19 12 54 81 166 September 30, 2017 balance: Goodwill $ 3,588 $ 1,825 $ 1,902 $ 1,921 $ 9,236 Accumulated impairment losses — (54 ) — — (54 ) $ 3,588 $ 1,771 $ 1,902 $ 1,921 $ 9,182 (1) The table reflects adjustments to our goodwill from the Starwood Combination during the measurement period. See Footnote 2 “ Acquisitions and Dispositions ” for more information. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | New Accounting Standards Accounting Standards Update No. 2014-09 - “Revenue from Contracts with Customers” (“ASU 2014-09”) ASU 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , as well as most industry-specific guidance, and enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. ASU 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. The standard will be effective for us beginning in our 2018 first quarter. We are permitted to use either the full retrospective or the modified retrospective method when adopting ASU 2014-09, and we are evaluating the available adoption methods. We are still assessing the potential impact that ASU 2014-09 will have on our financial statements and disclosures, but we believe that recognition of base management fees, franchise royalty fees, and owned and leased revenues will remain largely unchanged. We expect to recognize gains from the sale of real estate assets when control of the asset is transferred to the buyer, generally at the time the sale closes. Under current guidance, we defer gains on sales of real estate assets if we maintain substantial continuing involvement. We do not expect that this change will have a material impact on our Financial Statements, as we typically do not have real estate sale transactions that require us to defer significant gains. There likely will be changes to our revenue recognition policies related to the following: • We expect to recognize franchise application and relicensing fees over the term of the franchise contract rather than at hotel opening or relicensing. • We expect to present the amortization of contract acquisition costs paid to customers as a reduction of revenue rather than including such costs in “ Depreciation, amortization, and other ” on our Income Statements. • We expect to capitalize fewer contract acquisition costs as certain costs will not meet the capitalization criteria specified by ASU 2014-09. • We expect to recognize incentive management fees throughout the year to the extent that we determine that it is probable that a significant reversal will not occur as a result of future hotel profits or cash flows. This may result in a different pattern of recognition for incentive management fees from quarter to quarter than under the current guidance, but we do not expect a material impact on the total incentive management fees we will recognize during the full fiscal year. • Under the new guidance, we will generally be considered an agent in the transaction when loyalty program awards are redeemed. As a result, we will only recognize revenue for the net amount of consideration to which we are entitled for arranging for the redemption award, rather than the gross amount. While we have not yet fully quantified the impact of this change, it will have no impact on our operating or net income. • We expect to recognize temporary timing differences between costs incurred for centralized programs and services and the related reimbursement from hotel owners in our operating and net income in the period they occur. We operate these programs with the objective of breaking even, and under current guidance, we record any temporary timing differences on our Balance Sheets. Accounting Standards Update No. 2016-02 - “Leases” (“ASU 2016-02”) ASU 2016-02 introduces a lessee model that brings substantially all leases onto the balance sheet. Under the new standard, a lessee will recognize on its balance sheet a lease liability and a right-of-use asset for most leases, including operating leases. The new standard will also distinguish leases as either finance leases or operating leases. This distinction will affect how leases are measured and presented in the income statement and statement of cash flows. The standard is effective for us beginning in our 2019 first quarter, and we will be required to use a modified retrospective transition approach, which means that we will apply the provisions of ASU 2016-02 to each lease that existed at the beginning of the earliest comparative period presented in the financial statements, as well as leases entered into after that date. We are still assessing the potential impact that ASU 2016-02 will have on our financial statements and disclosures, but we expect that it will have a material effect on our Balance Sheets. Accounting Standards Update No. 2016-09 - “Stock Compensation” (“ASU 2016-09”) We adopted ASU 2016-09 in the 2017 first quarter, which involves several aspects of the accounting for share-based payments. The new guidance had the following impacts on our Financial Statements: • We now record excess tax benefits (or deficiencies) as income tax benefit (or expense) in our Income Statements. Previously, we recorded excess tax benefits (deficiencies) in additional paid-in-capital in our Balance Sheets. As required, we prospectively applied this amendment in our Income Statements, which resulted in a benefit of $62 million to our provision for income taxes, approximately $0.16 per diluted share, for the nine months ended September 30, 2017 . • We now classify excess tax benefits (or deficiencies) along with other income taxes in operating activities in our Statements of Cash Flows. ASU 2016-09 allowed for this amendment to be applied either prospectively or retrospectively. For consistency with our application of ASU 2016-09 in our Income Statements, we applied this amendment prospectively in our Statements of Cash Flows. For the nine months ended September 30, 2017 , operating activities in our Statements of Cash Flows include $62 million from excess tax benefits. For the nine months ended September 30, 2016 , we classified $21 million of excess tax benefits as financing inflows. • We now classify cash paid to taxing authorities when we withhold shares for employee tax-withholding purposes as a financing activity. As required, we retrospectively applied this amendment in our Statements of Cash Flows, and accordingly we reclassified $74 million of cash outflows from operating activities to financing activities for the nine months ended September 30, 2016 . Accounting Standards Update No. 2016-16 - “Accounting for Income Taxes: Intra-Entity Transfers of Assets Other than Inventory” (“ASU 2016-16”) ASU 2016-16 requires companies to recognize the income tax effects of intercompany sales of assets other than inventory when the transfer occurs. Under current GAAP, the tax effects of intercompany sales are deferred until the transferred asset is sold to a third party or otherwise recovered through use. ASU 2016-16 will be effective for us beginning in our 2018 first quarter, and we will be required to use a modified retrospective transition approach with a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. We are still assessing the potential impact that the standard will have on our financial statements and disclosures. Accounting Standards Update No. 2017-01 - “Clarifying the Definition of a Business” (“ASU 2017-01”) We prospectively adopted ASU 2017-01 in the 2017 first quarter, which clarifies the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. We expect that under this new guidance, our hotel sales will generally qualify as asset disposals, with the result that no goodwill of the reporting unit will be assigned to the carrying value of the asset when calculating the gain or loss on sale. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Consideration Transferred | The following table presents the fair value of each type of consideration that we transferred in the Starwood Combination: (in millions, except per share amounts) Equivalent shares of Marriott common stock issued in exchange for Starwood outstanding shares 134.4 Marriott common stock price as of Merger Date $ 68.44 Fair value of Marriott common stock issued in exchange for Starwood outstanding shares 9,198 Cash consideration to Starwood shareholders, net of cash acquired of $1,116 2,412 Fair value of Marriott equity-based awards issued in exchange for vested Starwood equity-based awards 71 Total consideration transferred, net of cash acquired $ 11,681 |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following table presents our estimates of fair values of the assets that we acquired and the liabilities that we assumed on the Merger Date as preliminarily reported at year-end 2016 and as finalized at the end of the 2017 third quarter : ($ in millions) September 23, 2016 December 31, 2016) Adjustments (2) September 23, 2016 Working capital $ (180 ) $ (56 ) $ (236 ) Property and equipment, including assets held for sale 1,999 (293 ) 1,706 Identified intangible assets 7,957 (719 ) 7,238 Equity and cost method investments 579 (42 ) 537 Other noncurrent assets 224 (24 ) 200 Deferred income taxes, net (1,516 ) 52 (1,464 ) Guest loyalty program (1,631 ) (7 ) (1,638 ) Debt (1,871 ) (6 ) (1,877 ) Other noncurrent liabilities (654 ) (323 ) (977 ) Net assets acquired 4,907 (1,418 ) 3,489 Goodwill (1) 6,774 1,418 8,192 $ 11,681 $ — $ 11,681 (1) Goodwill primarily represents the value that we expect to obtain from synergies and growth opportunities from our combined operations, and it is not deductible for tax purposes. See Footnote 11 “ Business Segments ” for our assignment of goodwill by reportable segment. (2) Adjustments primarily reflect refinements of our valuation models related to certain acquired IT systems, our assumptions for capital expenditures of owned and leased hotels, discount rates, certain assumptions related to operating lease agreements, and our assumptions related to certain brands and management and franchise agreements, including contract terms (including renewal assumptions), tax rates, and royalty and growth rates used in the relief-from-royalty valuation models. |
Schedule of Fair Values of Identified Intangible Assets | The following table presents our estimates of the fair values of Starwood’s identified intangible assets and their related estimated useful lives: Estimated Fair Value ($ in millions) Estimated Useful Life (in years) Brands $ 5,664 indefinite Management agreements and lease contract intangibles 751 10 - 25 Franchise agreements 746 10 - 80 Loyalty program marketing rights 77 30 $ 7,238 |
Merger-Related Costs and Char19
Merger-Related Costs and Charges (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve Activity | The following table presents our restructuring reserve activity during the 2017 first three quarters : ($ in millions) Liability for employee termination costs Balance at year-end 2016 $ 192 Charges 4 Cash payments (110 ) Adjustments (1) (13 ) Balance at September 30, 2017, classified in “Accrued expenses and other” $ 73 (1) Adjustments primarily reflect the reversal of accruals for certain employees who accepted other positions at the Company or resigned and the impact of cumulative translation adjustments. The following table presents pre-tax merger-related costs and other charges that we incurred in connection with the Starwood Combination: Three Months Ended Nine Months Ended ($ in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Merger-related costs and charges Transaction costs $ 4 $ 18 $ 14 $ 31 Employee termination costs (3 ) 186 9 186 Integration costs 27 24 77 33 28 228 100 250 Interest expense — 9 — 22 $ 28 $ 237 $ 100 $ 272 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Earnings and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share | The table below presents the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share: Three Months Ended Nine Months Ended (in millions, except per share amounts) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Computation of Basic Earnings Per Share Net income $ 392 $ 70 $ 1,171 $ 536 Shares for basic earnings per share 372.3 266.2 378.5 258.3 Basic earnings per share $ 1.05 $ 0.26 $ 3.09 $ 2.08 Computation of Diluted Earnings Per Share Net income $ 392 $ 70 $ 1,171 $ 536 Shares for basic earnings per share 372.3 266.2 378.5 258.3 Effect of dilutive securities Share-based compensation 4.3 4.3 4.7 4.4 Shares for diluted earnings per share 376.6 270.5 383.2 262.7 Diluted earnings per share $ 1.04 $ 0.26 $ 3.06 $ 2.04 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Assumptions for SARs | We used the following assumptions as part of a binomial lattice-based valuation model to estimate the fair value of the SARs we granted during the 2017 first three quarters : Expected volatility 30.9 % Dividend yield 1.3 % Risk-free rate 2.4 % Expected term (in years) 8 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 present the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for our debt service, operating profit, and other guarantees for which we are the primary obligor at September 30, 2017 in the following table: ($ in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 136 $ 19 Operating profit 248 117 Other 10 2 $ 394 $ 138 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table at the end of the 2017 third quarter and year-end 2016 : At Period End ($ in millions) September 30, 2017 December 31, 2016 Senior Notes: Series I Notes, interest rate of 6.4%, face amount of $293, matured June 15, 2017 $ — $ 293 Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 598 597 Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 348 348 Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 348 347 Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 396 396 Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 447 446 Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 344 344 Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 743 742 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 743 742 Series S Notes, interest rate of 6.8%, face amount of $324, maturing May 15, 2018 334 346 Series T Notes, interest rate of 7.2%, face amount of $181, maturing December 1, 2019 199 206 Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 291 291 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 338 340 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 293 293 Commercial paper 2,791 2,311 Credit Facility — — Capital lease obligations 172 173 Other 284 291 8,669 8,506 Less: Current portion of long-term debt (398 ) (309 ) $ 8,271 $ 8,197 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities | We present 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: September 30, 2017 December 31, 2016 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior, mezzanine, and other loans $ 228 $ 216 $ 245 $ 231 Total noncurrent financial assets $ 228 $ 216 $ 245 $ 231 Senior Notes $ (5,088 ) $ (5,161 ) $ (5,438 ) $ (5,394 ) Commercial paper (2,791 ) (2,791 ) (2,311 ) (2,311 ) Other long-term debt (226 ) (230 ) (280 ) (284 ) Other noncurrent liabilities (186 ) (186 ) (59 ) (59 ) Total noncurrent financial liabilities $ (8,291 ) $ (8,368 ) $ (8,088 ) $ (8,048 ) |
Other Comprehensive (Loss) In25
Other Comprehensive (Loss) Income and Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income Activity | The following tables detail the accumulated other comprehensive (loss) income activity for the 2017 first three quarters and 2016 first three quarters : ($ in millions) Foreign Currency Translation Adjustments Derivative Instrument Adjustments Available-For-Sale Securities Unrealized Adjustments Pension and Postretirement Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2016 $ (503 ) $ (5 ) $ 6 $ 5 $ (497 ) Other comprehensive income (loss) before reclassifications (1) 457 (13 ) (1 ) — 443 Amounts reclassified from accumulated other comprehensive loss — 5 — — 5 Net other comprehensive income (loss) 457 (8 ) (1 ) — 448 Balance at September 30, 2017 $ (46 ) $ (13 ) $ 5 $ 5 $ (49 ) ($ in millions) Foreign Currency Translation Adjustments Derivative Instrument Adjustments Available-For-Sale Securities Unrealized Adjustments Pension and Postretirement Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2015 $ (192 ) $ (8 ) $ 4 $ — $ (196 ) Other comprehensive income (loss) before reclassifications (1) 27 (3 ) — — 24 Amounts reclassified from accumulated other comprehensive loss — 3 — — 3 Net other comprehensive income 27 — — — 27 Balance at September 30, 2016 $ (165 ) $ (8 ) $ 4 $ — $ (169 ) (1) Other comprehensive income before reclassifications for foreign currency translation adjustments includes losses on intra-entity foreign currency transactions that are of a long-term investment nature of $142 million for the 2017 first three quarters and $1 million for the 2016 first three quarters . |
Changes in Shareholders' Equity (Deficit) | The following table details the changes in common shares outstanding and shareholders’ equity for the 2017 first three quarters : (in millions, except per share amounts) Common Shares Outstanding Total Class A Common Stock Additional Paid-in- Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 386.1 Balance at year-end 2016 $ 5,357 $ 5 $ 5,808 $ 6,501 $ (6,460 ) $ (497 ) — Net income 1,171 — — 1,171 — — — Other comprehensive income 448 — — — — 448 — Dividends ($0.96 per share) (362 ) — — (362 ) — — 2.1 Employee stock plan (2 ) — (64 ) — 62 — (21.8 ) Purchase of treasury stock (2,100 ) — — — (2,100 ) — 366.4 Balance at September 30, 2017 $ 4,512 $ 5 $ 5,744 $ 7,310 $ (8,498 ) $ (49 ) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Revenues | Segment Revenues Three Months Ended Nine Months Ended ($ in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 North American Full-Service $ 3,436 $ 2,222 $ 10,631 $ 6,903 North American Limited-Service 1,061 936 3,017 2,675 Asia Pacific 337 141 968 428 Other International 688 404 1,966 1,244 Total segment revenues 5,522 3,703 16,582 11,250 Other unallocated corporate 141 239 437 366 Total consolidated revenues $ 5,663 $ 3,942 $ 17,019 $ 11,616 |
Segment Profits | Segment Profits Three Months Ended Nine Months Ended ($ in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 North American Full-Service $ 258 $ 148 $ 879 $ 506 North American Limited-Service 228 193 629 539 Asia Pacific 88 24 237 78 Other International 120 43 304 139 Total segment profits 694 408 2,049 1,262 Other unallocated corporate (51 ) (231 ) (201 ) (324 ) Interest expense, net of interest income (63 ) (46 ) (191 ) (137 ) Income taxes (188 ) (61 ) (486 ) (265 ) Net income $ 392 $ 70 $ 1,171 $ 536 |
Goodwill | Goodwill ($ in millions) North American Full-Service North American Limited-Service Asia Pacific Other International Total Goodwill Year-end 2016 balance: Goodwill $ 2,905 $ 1,558 $ 1,572 $ 1,617 $ 7,652 Accumulated impairment losses — (54 ) — — (54 ) 2,905 1,504 1,572 1,617 7,598 Adjustments (1) $ 664 $ 255 $ 276 $ 223 $ 1,418 Foreign currency translation 19 12 54 81 166 September 30, 2017 balance: Goodwill $ 3,588 $ 1,825 $ 1,902 $ 1,921 $ 9,236 Accumulated impairment losses — (54 ) — — (54 ) $ 3,588 $ 1,771 $ 1,902 $ 1,921 $ 9,182 (1) The table reflects adjustments to our goodwill from the Starwood Combination during the measurement period. See Footnote 2 “ Acquisitions and Dispositions ” for more information. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Tax benefit from adoption of ASU 2016-09 | $ 6 | $ 62 | ||
Earnings per share - diluted (in USD per share) | $ 1.04 | $ 0.26 | $ 3.06 | $ 2.04 |
Net cash provided by operating activities | $ 1,916 | $ 1,206 | ||
Net cash provided by (used in) financing activities | $ (2,456) | 2,263 | ||
Accounting Standards Update 2016-09 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Earnings per share - diluted (in USD per share) | $ 0.16 | |||
Excess tax benefit classified as operating activities | $ 62 | |||
Excess tax benefit classified as financing activity | 21 | |||
Net cash provided by operating activities | (74) | |||
Net cash provided by (used in) financing activities | 74 | |||
Franchise Fees | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Branding fees | $ 68 | $ 195 | ||
Franchise Fees | Reclassification | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Branding fees | $ 40 | 121 | ||
Owned, Leased and Other Revenue | Reclassification | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Branding fees | $ (40) | $ (121) |
Acquisitions and Dispositions-
Acquisitions and Dispositions- Starwood Consideration Transferred (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Sep. 23, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||
Cash consideration to Starwood shareholders, net of cash acquired of $1,116 | $ 0 | $ 2,412 | |
Starwood Hotels & Resorts Worldwide, Inc. | |||
Business Acquisition [Line Items] | |||
Equivalent shares of Marriott common stock issued in exchange for Starwood outstanding shares (in shares) | 134.4 | ||
Marriott common stock price as of Merger Date (in USD per share) | $ 68.44 | ||
Fair value of Marriott common stock issued in exchange for Starwood outstanding shares | $ 9,198 | ||
Cash consideration to Starwood shareholders, net of cash acquired of $1,116 | 2,412 | ||
Fair value of Marriott equity-based awards issued in exchange for vested Starwood equity-based awards | 71 | ||
Total consideration transferred, net of cash acquired | 11,681 | ||
Cash acquired | $ 1,116 |
Acquisitions and Dispositions29
Acquisitions and Dispositions- Starwood Allocation of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Sep. 23, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,182 | $ 7,598 | |
Starwood Hotels & Resorts Worldwide, Inc. | |||
Business Acquisition [Line Items] | |||
Working capital | $ (236) | ||
Working capital, Adjustments | (56) | ||
Property and equipment, including assets held for sale | 1,706 | ||
Property and equipment, including assets held for sale, Adjustments | (293) | ||
Identified intangible assets | 7,238 | ||
Identified intangible assets, Adjustments | (719) | ||
Equity and cost method investments | 537 | ||
Equity and cost method investments, Adjustments | (42) | ||
Other noncurrent assets | 200 | ||
Other noncurrent assets, Adjustments | (24) | ||
Deferred income taxes, net | (1,464) | ||
Deferred income taxes, net, Adjustments | 52 | ||
Guest loyalty program | (1,638) | ||
Guest loyalty program, Adjustments | (7) | ||
Debt | (1,877) | ||
Debt, Adjustments | (6) | ||
Other noncurrent liabilities | (977) | ||
Other noncurrent liabilities, Adjustments | (323) | ||
Net assets acquired | 3,489 | ||
Net assets acquired, Adjustments | (1,418) | ||
Goodwill | 8,192 | ||
Goodwill, Adjustments | 1,418 | ||
Fair value of assets acquired and liabilities assumed, net | 11,681 | ||
Fair value of assets acquired and liabilities assumed, net, Adjustments | 0 | ||
As Previously Reported | Starwood Hotels & Resorts Worldwide, Inc. | |||
Business Acquisition [Line Items] | |||
Working capital | (180) | ||
Property and equipment, including assets held for sale | 1,999 | ||
Identified intangible assets | 7,957 | ||
Equity and cost method investments | 579 | ||
Other noncurrent assets | 224 | ||
Deferred income taxes, net | (1,516) | ||
Guest loyalty program | (1,631) | ||
Debt | (1,871) | ||
Other noncurrent liabilities | (654) | ||
Net assets acquired | 4,907 | ||
Goodwill | 6,774 | ||
Fair value of assets acquired and liabilities assumed, net | $ 11,681 |
Acquisitions and Dispositions30
Acquisitions and Dispositions- Starwood Fair Value and Estimated Useful Lives of Identifiable Intangible Assets (Details) - Starwood Hotels & Resorts Worldwide, Inc. $ in Millions | Sep. 23, 2016USD ($) |
Business Acquisition [Line Items] | |
Identified intangible assets | $ 7,238 |
Management agreements and lease contract intangibles | |
Business Acquisition [Line Items] | |
Estimated fair value, finite-lived intangible assets | 751 |
Franchise agreements | |
Business Acquisition [Line Items] | |
Estimated fair value, finite-lived intangible assets | 746 |
Loyalty program marketing rights | |
Business Acquisition [Line Items] | |
Estimated fair value, finite-lived intangible assets | $ 77 |
Estimated Useful Life (in years) | 30 years |
Brands | |
Business Acquisition [Line Items] | |
Estimated fair value, indefinite-lived intangible assets | $ 5,664 |
Minimum | Management agreements and lease contract intangibles | |
Business Acquisition [Line Items] | |
Estimated Useful Life (in years) | 10 years |
Minimum | Franchise agreements | |
Business Acquisition [Line Items] | |
Estimated Useful Life (in years) | 10 years |
Maximum | Management agreements and lease contract intangibles | |
Business Acquisition [Line Items] | |
Estimated Useful Life (in years) | 25 years |
Maximum | Franchise agreements | |
Business Acquisition [Line Items] | |
Estimated Useful Life (in years) | 80 years |
Acquisitions and Dispositions A
Acquisitions and Dispositions Acquisitions and Dispositions - Pro Forma Results of Operations (Details) - Starwood Hotels & Resorts Worldwide, Inc. $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Business Acquisition [Line Items] | |
Pro forma revenues | $ 17,033 |
Pro forma net income | 878 |
Pro forma integration costs | 54 |
Pro forma transaction and employee termination costs | $ 295 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Dispositions and Planned Dispositions (Details) CAD in Millions, $ in Millions | 3 Months Ended | |||||
Dec. 31, 2017CAD | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Remaining Future Minimum Operating Lease Obligations Due | ||||||
Assets held for sale | $ 297 | $ 588 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | North American Full-Service Property | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash received from sale of property | $ 169 | $ 306 | ||||
Gain on sale of property | $ 24 | |||||
Remaining Future Minimum Operating Lease Obligations Due | ||||||
2017 (remaining) | 3 | |||||
2,018 | 4 | |||||
2,019 | 4 | |||||
2,020 | 4 | |||||
2,021 | 4 | |||||
Thereafter | 175 | |||||
Total | $ 194 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | North American Full-Service Hotel and Miami Beach EDITION Residences | ||||||
Remaining Future Minimum Operating Lease Obligations Due | ||||||
Assets held for sale | $ 297 | |||||
Scenario, Forecast | Subsequent Event | Avendra LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Percentage ownership prior to sale | 55.00% | |||||
Scenario, Forecast | Subsequent Event | Disposal Group, Disposed of by Sale, Not Discontinued Operations | North American Full-Service Property | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash received from sale of property | CAD 337 | $ 269 | ||||
Scenario, Forecast | Subsequent Event | Disposal Group, Held-for-sale, Not Discontinued Operations | Avendra LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Amount received from sale | $ 650 |
Merger-Related Costs and Char33
Merger-Related Costs and Charges Merger-Related Costs and Charges- Types of Merger-related Costs and Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Merger-related costs and charges | ||||
Transaction, employee termination and integration costs | $ 28 | $ 228 | $ 100 | $ 250 |
Interest expense | 73 | 55 | 216 | 159 |
Starwood Hotels & Resorts Worldwide, Inc. | ||||
Merger-related costs and charges | ||||
Transaction costs | 4 | 18 | 14 | 31 |
Employee termination costs | (3) | 186 | 9 | 186 |
Integration costs | 27 | 24 | 77 | 33 |
Transaction, employee termination and integration costs | 28 | 228 | 100 | 250 |
Interest expense | 0 | 9 | 0 | 22 |
Transaction, employee termination, integration, and interest costs | $ 28 | $ 237 | $ 100 | $ 272 |
Merger-Related Costs and Char34
Merger-Related Costs and Charges Merger-Related Costs and Charges - Schedule of Restructuring Reserve Activity (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance at year-end 2016 | $ 192 |
Charges | 4 |
Cash payments | (110) |
Adjustments | (13) |
Balance at September 30, 2017, classified in “Accrued expenses and other” | $ 73 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Computation of Basic Earnings Per Share | ||||
Net income | $ 392 | $ 70 | $ 1,171 | $ 536 |
Shares for basic earnings per share (in shares) | 372.3 | 266.2 | 378.5 | 258.3 |
Basic earnings per share (in USD per share) | $ 1.05 | $ 0.26 | $ 3.09 | $ 2.08 |
Computation of Diluted Earnings Per Share | ||||
Net income | $ 392 | $ 70 | $ 1,171 | $ 536 |
Shares for basic earnings per share (in shares) | 372.3 | 266.2 | 378.5 | 258.3 |
Effect of dilutive securities | ||||
Share-based compensation (in shares) | 4.3 | 4.3 | 4.7 | 4.4 |
Shares for diluted earnings per share (in shares) | 376.6 | 270.5 | 383.2 | 262.7 |
Diluted earnings per share (in USD per share) | $ 1.04 | $ 0.26 | $ 3.06 | $ 2.04 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)installment$ / sharesshares | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ | $ 44 | $ 39 | $ 139 | $ 98 | |
Deferred compensation costs related to unvested awards | $ | $ 209 | $ 209 | $ 192 | ||
RSUs and PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards, weighted average grant-date fair value (in USD per share) | $ / shares | $ 84 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards, granted (in shares) | shares | 1.7 | ||||
Stock awards, vesting period | 4 years | ||||
Stock awards, period of service after grant date | 1 year | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards, granted (in shares) | shares | 0.2 | ||||
Stock awards, vesting period | 3 years | ||||
SARs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock awards, granted (in shares) | shares | 0.3 | ||||
Stock awards, period of service after grant date | 1 year | ||||
Stock awards, expiration period | 10 years | ||||
Stock awards, number of vesting periods | installment | 4 | ||||
Stock awards, weighted average grant-date fair value (in USD per share) | $ / shares | $ 30 | ||||
Stock awards, weighted average exercise price (in USD per share) | $ / shares | $ 88 |
Share Based Compensation - Assu
Share Based Compensation - Assumptions for SARs Granted (Details) - SARs | 9 Months Ended |
Sep. 30, 2017 | |
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | |
Expected volatility | 30.90% |
Dividend yield | 1.30% |
Risk-free rate | 2.40% |
Expected term (in years) | 8 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 32.50% | 46.40% | 29.30% | 33.10% |
Tax benefit from adoption of ASU 2016-09 | $ 6 | $ 62 | ||
Favorable settlement of uncertain tax position | 12 | |||
Unfavorable comparison to prior year release of valuation allowance | 15 | |||
Cash paid for income taxes, net of refunds | $ 413 | $ 243 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees (Details) $ in Millions | Sep. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | $ 394 |
Recorded Liability for Guarantees | 138 |
Debt service | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 136 |
Recorded Liability for Guarantees | 19 |
Operating profit | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 248 |
Recorded Liability for Guarantees | 117 |
Other | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 10 |
Recorded Liability for Guarantees | $ 2 |
Commitments and Contingencies40
Commitments and Contingencies - Contingent Purchase Obligations (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Guarantor Obligations [Line Items] | |
Guarantee | $ 394 |
Guarantee, recorded liability | 138 |
Times Square Edition | |
Guarantor Obligations [Line Items] | |
Guarantee | $ 315 |
Guarantee, term | 2 years |
Guarantor, extension term | 3 years |
Guarantee, recorded liability | $ 2 |
Sheraton Grand Chicago Hotel | |
Guarantor Obligations [Line Items] | |
Guarantee, recorded liability | 57 |
Sheraton Grand Chicago Hotel | Hotel and Leasehold | |
Guarantor Obligations [Line Items] | |
Guarantee | 300 |
Sheraton Grand Chicago Hotel | Land | |
Guarantor Obligations [Line Items] | |
Guarantee | $ 200 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Credit Facility | $ 0 | $ 0 |
Capital lease obligations | 172 | 173 |
Total debt | 8,669 | 8,506 |
Less: Current portion of long-term debt | (398) | (309) |
Long-term debt, noncurrent | 8,271 | 8,197 |
Series I Notes, interest rate of 6.4%, face amount of $293, matured June 15, 2017 (effective interest rate of 6.5%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 0 | 293 |
Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.4%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 598 | 597 |
Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 348 | 348 |
Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 348 | 347 |
Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 396 | 396 |
Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 (effective interest rate of 3.1%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 447 | 446 |
Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 344 | 344 |
Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 (effective interest rate of 2.5%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 743 | 742 |
Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 743 | 742 |
Series S Notes, interest rate of 6.8%, face amount of $324, maturing May 15, 2018 (effective interest rate of 1.7%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 334 | 346 |
Series T Notes, interest rate of 7.2%, face amount of $181, maturing December 1, 2019 (effective interest rate of 2.3%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 199 | 206 |
Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 291 | 291 |
Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 338 | 340 |
Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 293 | 293 |
Senior Notes | Series I Notes, interest rate of 6.4%, face amount of $293, matured June 15, 2017 (effective interest rate of 6.5%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.40% | |
Senior notes, face amount | $ 293 | |
Effective interest rate | 6.50% | |
Senior Notes | Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.4%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.00% | |
Senior notes, face amount | $ 600 | |
Effective interest rate | 4.40% | |
Senior Notes | Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.30% | |
Senior notes, face amount | $ 350 | |
Effective interest rate | 3.40% | |
Senior Notes | Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.40% | |
Senior notes, face amount | $ 350 | |
Effective interest rate | 3.60% | |
Senior Notes | Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.10% | |
Senior notes, face amount | $ 400 | |
Effective interest rate | 3.40% | |
Senior Notes | Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 (effective interest rate of 3.1%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.90% | |
Senior notes, face amount | $ 450 | |
Effective interest rate | 3.10% | |
Senior Notes | Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.80% | |
Senior notes, face amount | $ 350 | |
Effective interest rate | 4.00% | |
Senior Notes | Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 (effective interest rate of 2.5%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.30% | |
Senior notes, face amount | $ 750 | |
Effective interest rate | 2.50% | |
Senior Notes | Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.10% | |
Senior notes, face amount | $ 750 | |
Effective interest rate | 3.30% | |
Senior Notes | Series S Notes, interest rate of 6.8%, face amount of $324, maturing May 15, 2018 (effective interest rate of 1.7%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.80% | |
Senior notes, face amount | $ 324 | |
Effective interest rate | 1.70% | |
Senior Notes | Series T Notes, interest rate of 7.2%, face amount of $181, maturing December 1, 2019 (effective interest rate of 2.3%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.20% | |
Senior notes, face amount | $ 181 | |
Effective interest rate | 2.30% | |
Senior Notes | Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.10% | |
Senior notes, face amount | $ 291 | |
Effective interest rate | 3.10% | |
Senior Notes | Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.80% | |
Senior notes, face amount | $ 318 | |
Effective interest rate | 2.80% | |
Senior Notes | Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | |
Senior notes, face amount | $ 278 | |
Effective interest rate | 4.10% | |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Commercial paper | $ 2,791 | 2,311 |
Other | ||
Debt Instrument [Line Items] | ||
Other | $ 284 | $ 291 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Debt Disclosure [Abstract] | ||
Interest paid, net of amounts capitalized | $ 171,000,000 | $ 99,000,000 |
Maximum borrowing capacity under credit facility | $ 4,000,000,000 |
Fair Value of Financial Instr43
Fair Value of Financial Instruments - Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | $ 228 | $ 245 |
Other noncurrent liabilities | (2,094) | (1,744) |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 228 | 245 |
Total noncurrent financial assets | 228 | 245 |
Senior Notes | (5,088) | (5,438) |
Commercial paper | (2,791) | (2,311) |
Other long-term debt | (226) | (280) |
Other noncurrent liabilities | (186) | (59) |
Total noncurrent financial liabilities | (8,291) | (8,088) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 216 | 231 |
Total noncurrent financial assets | 216 | 231 |
Senior Notes | (5,161) | (5,394) |
Commercial paper | (2,791) | (2,311) |
Other long-term debt | (230) | (284) |
Other noncurrent liabilities | (186) | (59) |
Total noncurrent financial liabilities | $ (8,368) | $ (8,048) |
Other Comprehensive (Loss) In44
Other Comprehensive (Loss) Income and Shareholders' Equity - Accumulated Other Comprehensive (Loss) Income Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 5,357 | |||
Other comprehensive income (loss) before reclassifications | 443 | $ 24 | ||
Amounts reclassified from accumulated other comprehensive loss | 5 | 3 | ||
Net other comprehensive income (loss) | $ 107 | $ 4 | 448 | 27 |
Balance at end of period | 4,512 | 4,512 | ||
Other comprehensive income (loss) before reclassification related to foreign current translation adjustment, loss on intra-equity foreign currency transaction | 142 | 1 | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (503) | (192) | ||
Other comprehensive income (loss) before reclassifications | 457 | 27 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Net other comprehensive income (loss) | 457 | 27 | ||
Balance at end of period | (46) | (165) | (46) | (165) |
Derivative Instrument Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (5) | (8) | ||
Other comprehensive income (loss) before reclassifications | (13) | (3) | ||
Amounts reclassified from accumulated other comprehensive loss | 5 | 3 | ||
Net other comprehensive income (loss) | (8) | 0 | ||
Balance at end of period | (13) | (8) | (13) | (8) |
Available-For-Sale Securities Unrealized Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 6 | 4 | ||
Other comprehensive income (loss) before reclassifications | (1) | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Net other comprehensive income (loss) | (1) | 0 | ||
Balance at end of period | 5 | 4 | 5 | 4 |
Pension and Postretirement Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 5 | 0 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Net other comprehensive income (loss) | 0 | 0 | ||
Balance at end of period | 5 | 0 | 5 | 0 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (497) | (196) | ||
Net other comprehensive income (loss) | 448 | |||
Balance at end of period | $ (49) | $ (169) | $ (49) | $ (169) |
Other Comprehensive (Loss) In45
Other Comprehensive (Loss) Income and Shareholders' Equity - Changes in Shareholders' Equity (Deficit) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | $ 5,357 | |||
Balance at beginning of period (in shares) | 386.1 | |||
Net income | $ 392 | $ 70 | $ 1,171 | $ 536 |
Other comprehensive income | 107 | 4 | 448 | 27 |
Dividends ($0.96 per share) | (362) | |||
Employee stock plan | $ (2) | |||
Employee stock plan (in shares) | 2.1 | |||
Purchase of treasury stock | $ (2,100) | |||
Purchase of treasury stock (in shares) | (21.8) | |||
Balance at end of period | $ 4,512 | $ 4,512 | ||
Balance at end of period (in shares) | 366.4 | 366.4 | ||
Cash dividends (in USD per share) | $ 0.96 | |||
Class A Common Stock | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | $ 5 | |||
Balance at end of period | $ 5 | 5 | ||
Additional Paid-in- Capital | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | 5,808 | |||
Employee stock plan | (64) | |||
Balance at end of period | 5,744 | 5,744 | ||
Retained Earnings | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | 6,501 | |||
Net income | 1,171 | |||
Dividends ($0.96 per share) | (362) | |||
Balance at end of period | 7,310 | 7,310 | ||
Treasury Stock, at Cost | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | (6,460) | |||
Employee stock plan | 62 | |||
Purchase of treasury stock | (2,100) | |||
Balance at end of period | (8,498) | (8,498) | ||
Accumulated Other Comprehensive Loss | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | (497) | (196) | ||
Other comprehensive income | 448 | |||
Balance at end of period | $ (49) | $ (169) | $ (49) | $ (169) |
Business Segments - Segment Rev
Business Segments - Segment Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 5,663 | $ 3,942 | $ 17,019 | $ 11,616 |
Total segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 5,522 | 3,703 | 16,582 | 11,250 |
Other unallocated corporate | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 141 | 239 | 437 | 366 |
North American Full-Service | Total segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 3,436 | 2,222 | 10,631 | 6,903 |
North American Limited-Service | Total segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,061 | 936 | 3,017 | 2,675 |
Asia Pacific | Total segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 337 | 141 | 968 | 428 |
Other International | Total segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 688 | $ 404 | $ 1,966 | $ 1,244 |
Business Segments - Segment Pro
Business Segments - Segment Profits (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment profits | $ 632 | $ 171 | $ 1,789 | $ 927 |
Interest expense, net of interest income | (63) | (46) | (191) | (137) |
Income taxes | (188) | (61) | (486) | (265) |
Net income | 392 | 70 | 1,171 | 536 |
Total segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment profits | 694 | 408 | 2,049 | 1,262 |
Other unallocated corporate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment profits | (51) | (231) | (201) | (324) |
North American Full-Service | Total segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment profits | 258 | 148 | 879 | 506 |
North American Limited-Service | Total segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment profits | 228 | 193 | 629 | 539 |
Asia Pacific | Total segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment profits | 88 | 24 | 237 | 78 |
Other International | Total segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Segment profits | $ 120 | $ 43 | $ 304 | $ 139 |
Business Segments - Schedule of
Business Segments - Schedule of Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Goodwill, gross | $ 9,236 | $ 7,652 | |
Accumulated impairment losses | (54) | (54) | |
Goodwill | $ 7,598 | 9,182 | 7,598 |
Goodwill [Roll Forward] | |||
Goodwill | 7,598 | ||
Adjustments | 1,418 | ||
Foreign currency translation | 166 | ||
Goodwill | 9,182 | ||
North American Full-Service | |||
Segment Reporting Information [Line Items] | |||
Goodwill, gross | 3,588 | 2,905 | |
Accumulated impairment losses | 0 | 0 | |
Goodwill | 2,905 | 3,588 | 2,905 |
Goodwill [Roll Forward] | |||
Goodwill | 2,905 | ||
Adjustments | 664 | ||
Foreign currency translation | 19 | ||
Goodwill | 3,588 | ||
North American Limited-Service | |||
Segment Reporting Information [Line Items] | |||
Goodwill, gross | 1,825 | 1,558 | |
Accumulated impairment losses | (54) | (54) | |
Goodwill | 1,504 | 1,771 | 1,504 |
Goodwill [Roll Forward] | |||
Goodwill | 1,504 | ||
Adjustments | 255 | ||
Foreign currency translation | 12 | ||
Goodwill | 1,771 | ||
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Goodwill, gross | 1,902 | 1,572 | |
Accumulated impairment losses | 0 | 0 | |
Goodwill | 1,572 | 1,902 | 1,572 |
Goodwill [Roll Forward] | |||
Goodwill | 1,572 | ||
Adjustments | 276 | ||
Foreign currency translation | 54 | ||
Goodwill | 1,902 | ||
Other International | |||
Segment Reporting Information [Line Items] | |||
Goodwill, gross | 1,921 | 1,617 | |
Accumulated impairment losses | 0 | 0 | |
Goodwill | 1,617 | $ 1,921 | $ 1,617 |
Goodwill [Roll Forward] | |||
Goodwill | 1,617 | ||
Adjustments | 223 | ||
Foreign currency translation | 81 | ||
Goodwill | $ 1,921 |