Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-13881 | |
Entity Registrant Name | MARRIOTT INTERNATIONAL INC /MD/ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-2055918 | |
Entity Address, Address Line One | 7750 Wisconsin Avenue | |
Entity Address, City or Town | Bethesda | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20814 | |
City Area Code | 301 | |
Local Phone Number | 380-3000 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | MAR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 285,622,357 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001048286 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUES | ||
Revenue | $ 5,977 | $ 5,615 |
OPERATING COSTS AND EXPENSES | ||
Depreciation, amortization, and other | 45 | 44 |
General, administrative, and other | 261 | 202 |
Merger-related charges and other | 8 | 1 |
Costs and expenses | 5,101 | 4,664 |
OPERATING INCOME | 876 | 951 |
Gains and other income, net | 4 | 3 |
Interest expense | (163) | (126) |
Interest income | 10 | 15 |
Equity in earnings | 0 | 1 |
INCOME BEFORE INCOME TAXES | 727 | 844 |
Provision for income taxes | (163) | (87) |
NET INCOME | $ 564 | $ 757 |
EARNINGS PER SHARE | ||
Earnings per share - basic (in USD per share) | $ 1.94 | $ 2.44 |
Earnings per share - diluted (in USD per share) | $ 1.93 | $ 2.43 |
Fee revenues | ||
REVENUES | ||
Gross fee revenues | $ 1,210 | $ 1,133 |
Contract investment amortization | (23) | (21) |
Revenue | 1,187 | 1,112 |
Base management fees | ||
REVENUES | ||
Gross fee revenues | 313 | 293 |
Franchise fees | ||
REVENUES | ||
Gross fee revenues | 688 | 639 |
Incentive management fees | ||
REVENUES | ||
Gross fee revenues | 209 | 201 |
Owned, leased and other | ||
REVENUES | ||
Revenue | 357 | 356 |
OPERATING COSTS AND EXPENSES | ||
Operating costs | 286 | 281 |
Reimbursements | ||
REVENUES | ||
Revenue | 4,433 | 4,147 |
OPERATING COSTS AND EXPENSES | ||
Operating costs | $ 4,501 | $ 4,136 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 564 | $ 757 |
Other comprehensive (loss) income | ||
Foreign currency translation adjustments | (157) | 84 |
Other adjustments, net of tax | 10 | (2) |
Total other comprehensive (loss) income, net of tax | (147) | 82 |
Comprehensive income | $ 417 | $ 839 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and equivalents | $ 429 | $ 338 |
Accounts and notes receivable, net | 2,747 | 2,712 |
Prepaid expenses and other | 274 | 261 |
Assets, current, total | 3,450 | 3,311 |
Property and equipment, net | 1,570 | 1,581 |
Intangible assets | ||
Goodwill | 8,815 | 8,886 |
Goodwill and intangible assets, net, total | 18,067 | 18,076 |
Equity method investments | 302 | 308 |
Notes receivable, net | 136 | 138 |
Deferred tax assets | 673 | 673 |
Operating lease assets | 897 | 929 |
Other noncurrent assets | 661 | 658 |
Total assets | 25,756 | 25,674 |
Current liabilities | ||
Current portion of long-term debt | 910 | 553 |
Accounts payable | 793 | 738 |
Accrued payroll and benefits | 1,079 | 1,390 |
Accrued expenses and other | 2,057 | 1,753 |
Liabilities, current, total | 8,170 | 7,762 |
Long-term debt | 11,748 | 11,320 |
Deferred tax liabilities | 194 | 209 |
Operating lease liabilities | 851 | 887 |
Other noncurrent liabilities | 1,503 | 1,482 |
Stockholders’ deficit | ||
Class A Common Stock | 5 | 5 |
Additional paid-in-capital | 5,978 | 6,051 |
Retained earnings | 15,251 | 14,838 |
Treasury stock, at cost | (22,056) | (20,929) |
Accumulated other comprehensive loss | (794) | (647) |
Stockholders’ deficit | (1,616) | (682) |
Liabilities and equity, total | 25,756 | 25,674 |
Liability for guest loyalty program | ||
Current liabilities | ||
Liability for guest loyalty program | 3,331 | 3,328 |
Contract with customer liabilities | 3,859 | 3,678 |
Deferred revenue | ||
Current liabilities | ||
Contract with customer liabilities | 1,047 | 1,018 |
Brands | ||
Intangible assets | ||
Intangible assets | 5,851 | 5,907 |
Contract acquisition costs and other | ||
Intangible assets | ||
Intangible assets | $ 3,401 | $ 3,283 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
OPERATING ACTIVITIES | |||
Net income | $ 564 | $ 757 | |
Adjustments to reconcile to cash provided by operating activities: | |||
Depreciation, amortization, and other | 68 | 65 | |
Stock-based compensation | 53 | 37 | |
Income taxes | 105 | 19 | |
Contract acquisition costs | (80) | (58) | |
Merger-related charges and other | 7 | 0 | |
Working capital changes | (241) | (96) | |
Other | 119 | 56 | |
Net cash provided by operating activities | 779 | 887 | |
INVESTING ACTIVITIES | |||
Capital and technology expenditures | (109) | (95) | |
Dispositions | 1 | 0 | |
Loan advances | (1) | (1) | |
Loan collections | 8 | 31 | |
Other | 6 | 6 | |
Net cash used in investing activities | (95) | (59) | |
FINANCING ACTIVITIES | |||
Commercial paper/Credit Facility, net | (685) | 117 | |
Issuance of long-term debt | 1,468 | 783 | |
Repayment of long-term debt | (2) | (328) | |
Issuance of Class A Common Stock | 33 | 0 | |
Dividends paid | (151) | (124) | |
Purchase of treasury stock | (1,144) | (1,135) | |
Stock-based compensation withholding taxes | (121) | (72) | |
Other | 0 | (23) | |
Net cash used in financing activities | (602) | (782) | |
INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 82 | 46 | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | [1] | 366 | 525 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | [1] | 448 | 571 |
Loyalty Program | |||
Adjustments to reconcile to cash provided by operating activities: | |||
Liability for guest loyalty program | $ 184 | $ 107 | |
[1] The 2024 amounts include beginning restricted cash of $28 million at December 31, 2023, and ending restricted cash of $19 million at March 31, 2024, which we present in the “Prepaid expenses and other” and “Other noncurrent assets” captions of our Balance Sheets. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 19 | $ 28 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
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 (1) our Condensed Consolidated Financial Statements as our “Financial Statements,” (2) our Condensed Consolidated Statements of Income as our “Income Statements,” (3) our Condensed Consolidated Balance Sheets as our “Balance Sheets,” (4) our Condensed Consolidated Statements of Cash Flows as our “Statements of Cash Flows,” (5) our properties, brands, or markets in the United States and Canada as “U.S. & Canada,” and (6) our properties, brands, or markets in our Caribbean & Latin America, Europe, Middle East & Africa, Greater China, and Asia Pacific excluding China regions, as “International.” In addition, references throughout to numbered “Notes” refer to these Notes to Condensed Consolidated Financial Statements, unless otherwise stated. These Financial Statements have not been audited. We have condensed or omitted certain information and 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, 2023 (“2023 Form 10-K”). Certain terms not otherwise defined in this Form 10-Q have the meanings specified in our 2023 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 March 31, 2024 and December 31, 2023 and the results of our operations and cash flows for the three months ended March 31, 2024 and March 31, 2023. 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share, the latter of which uses the treasury stock method to calculate the dilutive effect of the Company’s potential common stock: Three Months Ended (in millions, except per share amounts) March 31, 2024 March 31, 2023 Computation of Basic Earnings Per Share Net income $ 564 $ 757 Shares for basic earnings per share 290.4 309.6 Basic earnings per share $ 1.94 $ 2.44 Computation of Diluted Earnings Per Share Net income $ 564 $ 757 Shares for basic earnings per share 290.4 309.6 Effect of dilutive securities Stock-based compensation 1.2 1.4 Shares for diluted earnings per share 291.6 311.0 Diluted earnings per share $ 1.93 $ 2.43 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We granted 0.8 million restricted stock units (“RSUs”) during the 2024 first quarter to certain officers and employees, and those units vest generally over four years in equal annual installments commencing one year after the grant date. We also granted 0.1 million performance-based RSUs (“PSUs”) in the 2024 first quarter to certain executives, which are earned subject to continued employment and the satisfaction of certain performance and market conditions based on the degree of achievement of pre-established targets for 2026 adjusted EBITDA performance and relative total stockholder return over the 2024 to 2026 performance period. RSUs, including PSUs, granted in the 2024 first quarter had a weighted average grant-date fair value of $226 per unit. We recorded stock-based compensation expense for RSUs and PSUs of $45 million in the 2024 first quarter and $33 million in the 2023 first quarter. Deferred compensation costs for unvested awards for RSUs and PSUs totaled $322 million at March 31, 2024 and $171 million at December 31, 2023. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate increased to 22.4 percent for the 2024 first quarter compared to 10.3 percent for the 2023 first quarter, primarily due to the prior year release of tax reserves. We paid cash for income taxes, net of refunds, of $58 million in the 2024 first quarter and $68 million in the 2023 first quarter. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
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 (excluding contingent purchase obligations) for which we are the primary obligor at March 31, 2024 in the following table: (in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 57 $ 6 Operating profit 159 85 Other 19 4 $ 235 $ 95 Our maximum potential guarantees listed in the preceding table include $61 million of operating profit guarantees that will not be in effect until the underlying properties open and we begin to operate the properties or certain other events occur. Contingent Purchase Obligation Sheraton Grand Chicago . In 2017, we granted the owner a one-time right to require us to purchase the leasehold interest in the land and the hotel for $300 million in cash (the “put option”). In the 2021 third quarter, we entered into an amendment with the owner to move the exercise period of the put option from the 2022 first half to the 2024 first half. In January 2024, the owner exercised the put option, and we exercised our option to purchase, at the same time the put transaction closes, the fee simple interest in the underlying land for an additional $200 million in cash, resulting in an expected total cash payment of approximately $500 million. The closing is expected to occur in the 2024 fourth quarter. We account for the put option as a guarantee, and our recorded liability (reflected in the “Accrued expenses and other” caption of our Balance Sheets) was $300 million at March 31, 2024 and December 31, 2023. Starwood Data Security Incident Description of Event On November 30, 2018, we announced a data security incident involving unauthorized access to the Starwood reservations database (the “Data Security Incident”). Working with leading security experts, we determined that there was unauthorized access to the Starwood network since 2014 and that an unauthorized party had copied information from the Starwood reservations database and taken steps towards removing it. We discontinued use of t he Starwood reservations database for business operations at the end of 2018 . Litigation, Claims, and Government Investigations Following our announcement of the Data Security Incident, approximately 100 lawsuits were filed by consumers and others against us in U.S. federal, U.S. state and Canadian courts related to the incident. The plaintiffs in the cases that remain pending, who generally purport to represent various classes of consumers, generally claim to have been harmed by alleged actions and/or omissions by the Company in connection with the Data Security Incident and assert a variety of common law and statutory claims seeking monetary damages, injunctive relief, costs and attorneys’ fees, and other related relief. The active U.S. cases are consolidated in the U.S. District Court for the District of Maryland (the “District Court”), pursuant to orders of the U.S. Judicial Panel on Multidistrict Litigation (the “MDL”). The District Court granted in part and denied in part class certification of various U.S. groups of consumers. In August 2023, the U.S. Court of Appeals for the Fourth Circuit (the “Fourth Circuit”) vacated the District Court’s class certification decision because the District Court failed to first consider the effect of a class-action waiver signed by all putative class members. On remand, after briefing, the District Court issued an order reinstating the same classes that had previously been certified. We promptly petitioned the Fourth Circuit, seeking leave to appeal that ruling. On January 18, 2024, the Fourth Circuit granted that petition, and on March 19, 2024 we filed our opening appellate brief in the Fourth Circuit. A case brought by the City of Chicago (which is consolidated in the MDL proceeding) also remains pending. The Canadian cases have effectively been consolidated into a single case in the province of Ontario. We dispute the allegations in these lawsuits and are vigorously defending against such claims. In addition, various U.S. federal, U.S. state and foreign governmental authorities made inquiries, opened investigations, or requested information and/or documents related to the Data Security Incident and related matters. Although some of these matters have been resolved or no longer appear to be active, some remain open. We are progressing in our discussions with the Attorney General offices from 49 states and the District of Columbia and the Federal Trade Commission. Based on the ongoing discussions, we believe it is probable that we will incur losses, and as of March 31, 2024, we have an accrual for an estimated loss contingency, which is not material to our Financial Statements. While we believe it is reasonably possible that we may incur losses in excess of the amounts recorded associated with the above described MDL proceedings and regulatory investigations related to the Data Security Incident, it is not possible to reasonably estimate the amount of such losses or range of loss that might result from adverse judgments, settlements, fines, penalties or other resolution of these proceedings and investigations based on: (1) in the case of the above described MDL proceedings, the current stage of these proceedings, the absence of specific allegations as to alleged damages, the uncertainty as to the certification of a class or classes and the size of any certified class, and the lack of resolution of significant factual and legal issues; and (2) in the case of the above described regulatory investigations, the lack of resolution with the Federal Trade Commission and the state Attorneys General. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2024 | |
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 as of March 31, 2024 and year-end 2023: (in millions) March 31, 2024 December 31, 2023 Senior Notes: Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) $ 349 $ 349 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) 748 748 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) 321 321 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) 288 288 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 447 447 Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) 298 298 Series CC Notes, interest rate of 3.6%, face amount of $550, matured April 15, 2024 (effective interest rate of 3.9%) 549 545 Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) 598 598 Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) 990 990 Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) 988 988 Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) 1,092 1,091 Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) 694 694 Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) 988 987 Series KK Notes, interest rate of 4.9%, face amount of $800, maturing April 15, 2029 (effective interest rate of 5.3%) 786 785 Series LL Notes, interest rate of 5.5%, face amount of $450, maturing September 15, 2026 (effective interest rate of 5.9%) 445 445 Series MM Notes, interest rate of 5.6%, face amount of $700, maturing October 15, 2028 (effective interest rate of 5.9%) 691 691 Series NN Notes, interest rate of 4.9%, face amount of $500, maturing May 15, 2029 (effective interest rate of 5.3%) 490 — Series OO Notes, interest rate of 5.3%, face amount of $1,000, maturing May 15, 2034 (effective interest rate of 5.6%) 979 — Commercial paper 732 1,421 Credit Facility — — Finance lease obligations 129 131 Other 56 56 $ 12,658 $ 11,873 Less current portion (910) (553) $ 11,748 $ 11,320 We paid cash for interest, net of amounts capitalized, of $48 million in the 2024 first quarter and $15 million in the 2023 first quarter. In February 2024, we issued $500 million aggregate principal amount of 4.875 percent Series NN Notes due May 15, 2029 (the “Series NN Notes”) and $1.0 billion aggregate principal amount of 5.300 percent Series OO Notes due May 15, 2034 (the “Series OO Notes”). We will pay interest on the Series NN Notes and Series OO Notes in May and November of each year, commencing in May 2024. We received net proceeds of approximately $1.468 billion from the offering of the Series NN Notes and Series OO Notes, after deducting the underwriting discount and expenses, which were made available for general corporate purposes, including working capital, capital expenditures, acquisitions, stock repurchases, or repayment of outstanding indebtedness. We are party to a $4.5 billion multicurrency revolving credit agreement (the “Credit Facility”). Available borrowings under the Credit Facility support our commercial paper program and general corporate needs. Borrowings under the Credit Facility generally bear interest at SOFR (the Secured Overnight Financing Rate) plus a spread based on our public debt rating. We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating. We classify outstanding borrowings under the Credit Facility and outstanding commercial paper borrowings (which generally have short-term maturities of 45 days or less) as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis. The Credit Facility expires on December 14, 2027. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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 amounts and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments in the following table: March 31, 2024 December 31, 2023 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Notes receivable $ 136 $ 131 $ 138 $ 131 Total noncurrent financial assets $ 136 $ 131 $ 138 $ 131 Senior Notes $ (10,871) $ (10,471) $ (9,720) $ (9,393) Commercial paper (732) (732) (1,421) (1,421) Other noncurrent liabilities (71) (71) (80) (80) Total noncurrent financial liabilities $ (11,674) $ (11,274) $ (11,221) $ (10,894) See Note 12. Fair Value of Financial Instruments and the “Fair Value Measurements” caption of Note 2. Summary of Significant Accounting Policies of our 2023 Form 10-K for more information on the input levels we use in determining fair value. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS AND STOCKHOLDERS’ (DEFICIT) EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS AND STOCKHOLDERS’ (DEFICIT) EQUITY | ACCUMULATED OTHER COMPREHENSIVE LOSS AND STOCKHOLDERS’ (DEFICIT) EQUITY The following tables detail the accumulated other comprehensive loss activity for the 2024 first quarter and 2023 first quarter: (in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2023 $ (654) $ 7 $ (647) Other comprehensive (loss) income before reclassifications (1) (157) 11 (146) Reclassification adjustments — (1) (1) Net other comprehensive (loss) income (157) 10 (147) Balance at March 31, 2024 $ (811) $ 17 $ (794) (in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2022 $ (740) $ 11 $ (729) Other comprehensive income (loss) before reclassifications (1) 84 (3) 81 Reclassification adjustments — 1 1 Net other comprehensive income (loss) 84 (2) 82 Balance at March 31, 2023 $ (656) $ 9 $ (647) (1) Other comprehensive (loss) income before reclassifications for foreign currency translation adjustments includes intra-entity foreign currency transactions that are of a long-term investment nature, which resulted in gains of $12 million for the 2024 first quarter and losses of $12 million for the 2023 first quarter. The following tables detail the changes in common shares outstanding and stockholders’(deficit) equity for the 2024 first quarter and 2023 first quarter: (in millions, except per share amounts) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 290.5 Balance at year-end 2023 $ (682) $ 5 $ 6,051 $ 14,838 $ (20,929) $ (647) — Net income 564 — — 564 — — — Other comprehensive loss (147) — — — — (147) — Dividends ($0.52 per share) (151) — — (151) — — 1.3 Stock-based compensation plans (36) — (73) — 37 — (4.8) Purchase of treasury stock (1,164) — — — (1,164) — 287.0 Balance at March 31, 2024 $ (1,616) $ 5 $ 5,978 $ 15,251 $ (22,056) $ (794) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 310.6 Balance at year-end 2022 $ 568 $ 5 $ 5,965 $ 12,342 $ (17,015) $ (729) — Net income 757 — — 757 — — — Other comprehensive income 82 — — — — 82 — Dividends ($0.40 per share) (124) — — (124) — — 0.9 Stock-based compensation plans (34) — (59) — 25 — (6.8) Purchase of treasury stock (1,109) — — — (1,109) — 304.7 Balance at March 31, 2023 $ 140 $ 5 $ 5,906 $ 12,975 $ (18,099) $ (647) |
CONTRACTS WITH CUSTOMERS
CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACTS WITH CUSTOMERS | CONTRACTS WITH CUSTOMERS Our current and noncurrent liability for guest loyalty program increased by $184 million, to $7,190 million at March 31, 2024, from $7,006 million at December 31, 2023, primarily reflecting an increase in points earned by members. The increase was partially offset by $771 million of revenue recognized in the 2024 first quarter, that was deferred as of December 31, 2023. Our allowance for credit losses was $201 million at March 31, 2024 and $197 million at December 31, 2023. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Beginning in the 2024 first quarter, we modified our segment structure as a result of a change in the way our chief operating decision maker (“CODM”) evaluates performance and allocates resources within the Company, resulting in the following four reportable business segments: (1) U.S. & Canada, (2) Europe, Middle East & Africa (“EMEA”), (3) Greater China, and (4) Asia Pacific excluding China (“APEC”). Our Caribbean & Latin America (“CALA”) operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment, and as such, we include its results in “Unallocated corporate and other.” We revised the prior period amounts shown in the tables below to conform to our current presentation. 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 charges and other expenses. We assign gains and losses, equity in earnings or losses, and direct general, administrative, and other expenses to each of our segments. “Unallocated corporate and other” includes a portion of our revenues (such as fees we receive from our credit card programs and vacation ownership licensing agreements), revenues and expenses for our Loyalty Program, general, administrative, and other expenses, merger-related charges and other expenses, equity in earnings or losses, and other gains or losses that we do not allocate to our segments, as well as results of our CALA operating segment. Our CODM monitors assets for the consolidated Company but does not use assets by operating segment when assessing performance or making operating segment resource allocations. Segment Revenues The following tables present our revenues disaggregated by segment and major revenue stream for the 2024 first quarter and 2023 first quarter: Three Months Ended March 31, 2024 (in millions) U.S. & Canada EMEA Greater China APEC Total Gross fee revenues $ 682 $ 118 $ 65 $ 87 $ 952 Contract investment amortization (17) (3) — (1) (21) Net fee revenues 665 115 65 86 931 Owned, leased, and other revenue 108 118 7 32 265 Cost reimbursement revenue 3,717 278 76 116 4,187 Total reportable segment revenue $ 4,490 $ 511 $ 148 $ 234 $ 5,383 Unallocated corporate and other 594 Total revenues $ 5,977 Three Months Ended March 31, 2023 (in millions) U.S. & Canada EMEA Greater China APEC Total Gross fee revenues $ 672 $ 105 $ 57 $ 67 $ 901 Contract investment amortization (16) (3) — (1) (20) Net fee revenues 656 102 57 66 881 Owned, leased, and other revenue 117 113 4 30 264 Cost reimbursement revenue 3,505 256 70 97 3,928 Total reportable segment revenue $ 4,278 $ 471 $ 131 $ 193 $ 5,073 Unallocated corporate and other 542 Total revenues $ 5,615 Segment Profits Three Months Ended (in millions) March 31, 2024 March 31, 2023 U.S. & Canada $ 625 $ 657 EMEA 81 78 Greater China 51 46 APEC 72 56 Unallocated corporate and other 51 118 Interest expense, net of interest income (153) (111) Provision for income taxes (163) (87) Net income $ 564 $ 757 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 564 | $ 757 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Earnings and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share | The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share, the latter of which uses the treasury stock method to calculate the dilutive effect of the Company’s potential common stock: Three Months Ended (in millions, except per share amounts) March 31, 2024 March 31, 2023 Computation of Basic Earnings Per Share Net income $ 564 $ 757 Shares for basic earnings per share 290.4 309.6 Basic earnings per share $ 1.94 $ 2.44 Computation of Diluted Earnings Per Share Net income $ 564 $ 757 Shares for basic earnings per share 290.4 309.6 Effect of dilutive securities Stock-based compensation 1.2 1.4 Shares for diluted earnings per share 291.6 311.0 Diluted earnings per share $ 1.93 $ 2.43 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of 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 (excluding contingent purchase obligations) for which we are the primary obligor at March 31, 2024 in the following table: (in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 57 $ 6 Operating profit 159 85 Other 19 4 $ 235 $ 95 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table as of March 31, 2024 and year-end 2023: (in millions) March 31, 2024 December 31, 2023 Senior Notes: Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) $ 349 $ 349 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) 748 748 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) 321 321 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) 288 288 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 447 447 Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) 298 298 Series CC Notes, interest rate of 3.6%, face amount of $550, matured April 15, 2024 (effective interest rate of 3.9%) 549 545 Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) 598 598 Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) 990 990 Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) 988 988 Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) 1,092 1,091 Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) 694 694 Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) 988 987 Series KK Notes, interest rate of 4.9%, face amount of $800, maturing April 15, 2029 (effective interest rate of 5.3%) 786 785 Series LL Notes, interest rate of 5.5%, face amount of $450, maturing September 15, 2026 (effective interest rate of 5.9%) 445 445 Series MM Notes, interest rate of 5.6%, face amount of $700, maturing October 15, 2028 (effective interest rate of 5.9%) 691 691 Series NN Notes, interest rate of 4.9%, face amount of $500, maturing May 15, 2029 (effective interest rate of 5.3%) 490 — Series OO Notes, interest rate of 5.3%, face amount of $1,000, maturing May 15, 2034 (effective interest rate of 5.6%) 979 — Commercial paper 732 1,421 Credit Facility — — Finance lease obligations 129 131 Other 56 56 $ 12,658 $ 11,873 Less current portion (910) (553) $ 11,748 $ 11,320 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities | We present the carrying amounts and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments in the following table: March 31, 2024 December 31, 2023 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Notes receivable $ 136 $ 131 $ 138 $ 131 Total noncurrent financial assets $ 136 $ 131 $ 138 $ 131 Senior Notes $ (10,871) $ (10,471) $ (9,720) $ (9,393) Commercial paper (732) (732) (1,421) (1,421) Other noncurrent liabilities (71) (71) (80) (80) Total noncurrent financial liabilities $ (11,674) $ (11,274) $ (11,221) $ (10,894) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS AND STOCKHOLDERS’ (DEFICIT) EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss Activity | The following tables detail the accumulated other comprehensive loss activity for the 2024 first quarter and 2023 first quarter: (in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2023 $ (654) $ 7 $ (647) Other comprehensive (loss) income before reclassifications (1) (157) 11 (146) Reclassification adjustments — (1) (1) Net other comprehensive (loss) income (157) 10 (147) Balance at March 31, 2024 $ (811) $ 17 $ (794) (in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2022 $ (740) $ 11 $ (729) Other comprehensive income (loss) before reclassifications (1) 84 (3) 81 Reclassification adjustments — 1 1 Net other comprehensive income (loss) 84 (2) 82 Balance at March 31, 2023 $ (656) $ 9 $ (647) (1) Other comprehensive (loss) income before reclassifications for foreign currency translation adjustments includes intra-entity foreign currency transactions that are of a long-term investment nature, which resulted in gains of $12 million for the 2024 first quarter and losses of $12 million for the 2023 first quarter. |
Schedule of Changes in Shareholders' Equity | The following tables detail the changes in common shares outstanding and stockholders’(deficit) equity for the 2024 first quarter and 2023 first quarter: (in millions, except per share amounts) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 290.5 Balance at year-end 2023 $ (682) $ 5 $ 6,051 $ 14,838 $ (20,929) $ (647) — Net income 564 — — 564 — — — Other comprehensive loss (147) — — — — (147) — Dividends ($0.52 per share) (151) — — (151) — — 1.3 Stock-based compensation plans (36) — (73) — 37 — (4.8) Purchase of treasury stock (1,164) — — — (1,164) — 287.0 Balance at March 31, 2024 $ (1,616) $ 5 $ 5,978 $ 15,251 $ (22,056) $ (794) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 310.6 Balance at year-end 2022 $ 568 $ 5 $ 5,965 $ 12,342 $ (17,015) $ (729) — Net income 757 — — 757 — — — Other comprehensive income 82 — — — — 82 — Dividends ($0.40 per share) (124) — — (124) — — 0.9 Stock-based compensation plans (34) — (59) — 25 — (6.8) Purchase of treasury stock (1,109) — — — (1,109) — 304.7 Balance at March 31, 2023 $ 140 $ 5 $ 5,906 $ 12,975 $ (18,099) $ (647) |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenues | The following tables present our revenues disaggregated by segment and major revenue stream for the 2024 first quarter and 2023 first quarter: Three Months Ended March 31, 2024 (in millions) U.S. & Canada EMEA Greater China APEC Total Gross fee revenues $ 682 $ 118 $ 65 $ 87 $ 952 Contract investment amortization (17) (3) — (1) (21) Net fee revenues 665 115 65 86 931 Owned, leased, and other revenue 108 118 7 32 265 Cost reimbursement revenue 3,717 278 76 116 4,187 Total reportable segment revenue $ 4,490 $ 511 $ 148 $ 234 $ 5,383 Unallocated corporate and other 594 Total revenues $ 5,977 Three Months Ended March 31, 2023 (in millions) U.S. & Canada EMEA Greater China APEC Total Gross fee revenues $ 672 $ 105 $ 57 $ 67 $ 901 Contract investment amortization (16) (3) — (1) (20) Net fee revenues 656 102 57 66 881 Owned, leased, and other revenue 117 113 4 30 264 Cost reimbursement revenue 3,505 256 70 97 3,928 Total reportable segment revenue $ 4,278 $ 471 $ 131 $ 193 $ 5,073 Unallocated corporate and other 542 Total revenues $ 5,615 |
Schedule of Segment Profits | Segment Profits Three Months Ended (in millions) March 31, 2024 March 31, 2023 U.S. & Canada $ 625 $ 657 EMEA 81 78 Greater China 51 46 APEC 72 56 Unallocated corporate and other 51 118 Interest expense, net of interest income (153) (111) Provision for income taxes (163) (87) Net income $ 564 $ 757 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Computation of Basic Earnings Per Share | ||
Net income | $ 564 | $ 757 |
Shares for basic earnings per share (in shares) | 290.4 | 309.6 |
Basic earnings per shares (in USD per share) | $ 1.94 | $ 2.44 |
Computation of Diluted Earnings Per Share | ||
Net income | $ 564 | $ 757 |
Shares for basic earnings per share (in shares) | 290.4 | 309.6 |
Effect of dilutive securities | ||
Stock-based compensation (in shares) | 1.2 | 1.4 |
Shares for diluted earnings per share (in shares) | 291.6 | 311 |
Diluted earnings per share (in USD per share) | $ 1.93 | $ 2.43 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, weighted average grant-date fair value (in USD per share) | $ 226 | ||
Share-based compensation expense | $ 45 | $ 33 | |
Deferred compensation costs related to unvested awards | $ 322 | $ 171 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, granted (in shares) | 0.8 | ||
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) | 0.1 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 22.40% | 10.30% |
Cash paid for income taxes, net of refunds | $ 58 | $ 68 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Guarantees (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | $ 235 |
Recorded Liability for Guarantees | 95 |
Debt service | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 57 |
Recorded Liability for Guarantees | 6 |
Operating profit | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 159 |
Recorded Liability for Guarantees | 85 |
Operating profit | Not Yet In Effect Condition | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 61 |
Other | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 19 |
Recorded Liability for Guarantees | $ 4 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Contingent Purchase Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2017 |
Guarantor Obligations [Line Items] | |||
Guarantee | $ 235 | ||
Guarantee, recorded liability | 95 | ||
Sheraton Grand Chicago Hotel | |||
Guarantor Obligations [Line Items] | |||
Guarantee, recorded liability | 300 | $ 300 | |
Sheraton Grand Chicago Hotel | Hotel and Leasehold | |||
Guarantor Obligations [Line Items] | |||
Guarantee | 500 | $ 300 | |
Sheraton Grand Chicago Hotel | Land | |||
Guarantor Obligations [Line Items] | |||
Guarantor obligations, additional exposure | $ 200 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Expenses and Insurance Recoveries (Details) | Nov. 30, 2018 lawsuit |
Class Action Lawsuits Related to Data Security Incident | |
Loss Contingencies [Line Items] | |
Number of new lawsuits filed | 100 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) | Mar. 31, 2024 | Feb. 29, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | |||
Commercial paper | $ 732,000,000 | $ 1,421,000,000 | |
Credit Facility | 0 | 0 | |
Finance lease obligations | 129,000,000 | 131,000,000 | |
Other | 56,000,000 | 56,000,000 | |
Total debt | 12,658,000,000 | 11,873,000,000 | |
Less current portion | (910,000,000) | (553,000,000) | |
Long-term debt, noncurrent | 11,748,000,000 | 11,320,000,000 | |
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 | $ 349,000,000 | 349,000,000 | |
Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4% | ||
Interest rate | 3.80% | ||
Senior notes, face amount | $ 350,000,000 | ||
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 | $ 748,000,000 | 748,000,000 | |
Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3.30% | ||
Interest rate | 3.10% | ||
Senior notes, face amount | $ 750,000,000 | ||
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 | $ 321,000,000 | 321,000,000 | |
Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 2.80% | ||
Interest rate | 3.80% | ||
Senior notes, face amount | $ 318,000,000 | ||
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 | $ 288,000,000 | 288,000,000 | |
Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.10% | ||
Interest rate | 4.50% | ||
Senior notes, face amount | $ 278,000,000 | ||
Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 447,000,000 | 447,000,000 | |
Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.20% | ||
Interest rate | 4% | ||
Senior notes, face amount | $ 450,000,000 | ||
Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 298,000,000 | 298,000,000 | |
Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.80% | ||
Interest rate | 4.70% | ||
Senior notes, face amount | $ 300,000,000 | ||
Series CC Notes, interest rate of 3.6%, face amount of $550, matured April 15, 2024 (effective interest rate of 3.9%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 549,000,000 | 545,000,000 | |
Series CC Notes, interest rate of 3.6%, face amount of $550, matured April 15, 2024 (effective interest rate of 3.9%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3.90% | ||
Interest rate | 3.60% | ||
Senior notes, face amount | $ 550,000,000 | ||
Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 598,000,000 | 598,000,000 | |
Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 6% | ||
Interest rate | 5.80% | ||
Senior notes, face amount | $ 600,000,000 | ||
Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 990,000,000 | 990,000,000 | |
Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.80% | ||
Interest rate | 4.60% | ||
Senior notes, face amount | $ 1,000,000,000 | ||
Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 988,000,000 | 988,000,000 | |
Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3.70% | ||
Interest rate | 3.50% | ||
Senior notes, face amount | $ 1,000,000,000 | ||
Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 1,092,000,000 | 1,091,000,000 | |
Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3% | ||
Interest rate | 2.90% | ||
Senior notes, face amount | $ 1,100,000,000 | ||
Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 694,000,000 | 694,000,000 | |
Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 2.80% | ||
Interest rate | 2.80% | ||
Senior notes, face amount | $ 700,000,000 | ||
Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 988,000,000 | 987,000,000 | |
Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 5.40% | ||
Interest rate | 5% | ||
Senior notes, face amount | $ 1,000,000,000 | ||
Series KK Notes, interest rate of 4.9%, face amount of $800, maturing April 15, 2029 (effective interest rate of 5.3%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 786,000,000 | 785,000,000 | |
Series KK Notes, interest rate of 4.9%, face amount of $800, maturing April 15, 2029 (effective interest rate of 5.3%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 5.30% | ||
Interest rate | 4.90% | ||
Senior notes, face amount | $ 800,000,000 | ||
Series LL Notes, interest rate of 5.5%, face amount of $450, maturing September 15, 2026 (effective interest rate of 5.9%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 445,000,000 | 445,000,000 | |
Series LL Notes, interest rate of 5.5%, face amount of $450, maturing September 15, 2026 (effective interest rate of 5.9%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 5.90% | ||
Interest rate | 5.50% | ||
Senior notes, face amount | $ 450,000,000 | ||
Series MM Notes, interest rate of 5.6%, face amount of $700, maturing October 15, 2028 (effective interest rate of 5.9%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 691,000,000 | 691,000,000 | |
Series MM Notes, interest rate of 5.6%, face amount of $700, maturing October 15, 2028 (effective interest rate of 5.9%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 5.90% | ||
Interest rate | 5.60% | ||
Senior notes, face amount | $ 700,000,000 | ||
Series NN Notes, interest rate of 4.9%, face amount of $500, maturing May 15, 2029 (effective interest rate of 5.3%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 490,000,000 | 0 | |
Series NN Notes, interest rate of 4.9%, face amount of $500, maturing May 15, 2029 (effective interest rate of 5.3%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 5.30% | ||
Interest rate | 4.90% | 4.875% | |
Senior notes, face amount | $ 500,000,000 | $ 500,000,000 | |
Series OO Notes, interest rate of 5.3%, face amount of $1,000, maturing May 15, 2034 (effective interest rate of 5.6%) | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 979,000,000 | $ 0 | |
Series OO Notes, interest rate of 5.3%, face amount of $1,000, maturing May 15, 2034 (effective interest rate of 5.6%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 5.60% | ||
Interest rate | 5.30% | 5.30% | |
Senior notes, face amount | $ 1,000,000,000 | $ 1,000,000,000 |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | |||
Interest paid, net of amounts capitalized | $ 48,000,000 | $ 15,000,000 | |
Maximum aggregate borrowings under credit facility (up to) | 4,500,000,000 | ||
Series NN And OO Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Proceeds from debt | $ 1,468,000,000 | ||
Series NN Notes, interest rate of 4.9%, face amount of $500, maturing May 15, 2029 (effective interest rate of 5.3%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, face amount | $ 500,000,000 | $ 500,000,000 | |
Interest rate | 4.875% | 4.90% | |
Series OO Notes, interest rate of 5.3%, face amount of $1,000, maturing May 15, 2034 (effective interest rate of 5.6%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, face amount | $ 1,000,000,000 | $ 1,000,000,000 | |
Interest rate | 5.30% | 5.30% |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | $ 136 | $ 138 |
Commercial paper | (732) | (1,421) |
Other noncurrent liabilities | (1,503) | (1,482) |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 136 | 138 |
Total noncurrent financial assets | 136 | 138 |
Senior Notes | (10,871) | (9,720) |
Commercial paper | (732) | (1,421) |
Other noncurrent liabilities | (71) | (80) |
Total noncurrent financial liabilities | (11,674) | (11,221) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes receivable | 131 | 131 |
Total noncurrent financial assets | 131 | 131 |
Senior Notes | (10,471) | (9,393) |
Commercial paper | (732) | (1,421) |
Other noncurrent liabilities | (71) | (80) |
Total noncurrent financial liabilities | $ (11,274) | $ (10,894) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS AND STOCKHOLDERS’ (DEFICIT) EQUITY - Accumulated Other Comprehensive (Loss) Income Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ (682) | $ 568 |
Other comprehensive (loss) income before reclassifications | (146) | 81 |
Reclassification adjustments | (1) | 1 |
Total other comprehensive (loss) income, net of tax | (147) | 82 |
Balance at end of period | (1,616) | 140 |
Intra-entity foreign currency long-term-investment (losses) gains | 12 | (12) |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (654) | (740) |
Other comprehensive (loss) income before reclassifications | (157) | 84 |
Reclassification adjustments | 0 | 0 |
Total other comprehensive (loss) income, net of tax | (157) | 84 |
Balance at end of period | (811) | (656) |
Other Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | 7 | 11 |
Other comprehensive (loss) income before reclassifications | 11 | (3) |
Reclassification adjustments | (1) | 1 |
Total other comprehensive (loss) income, net of tax | 10 | (2) |
Balance at end of period | 17 | 9 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (647) | (729) |
Total other comprehensive (loss) income, net of tax | (147) | 82 |
Balance at end of period | $ (794) | $ (647) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS AND STOCKHOLDERS’ (DEFICIT) EQUITY - Changes in Stockholders' Equity (Deficit) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stockholders Equity Note [Line Items] | ||
Cash dividends (in USD per share) | $ 0.52 | $ 0.40 |
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | $ (682) | $ 568 |
Net income | 564 | 757 |
Other comprehensive income (loss) | (147) | 82 |
Dividends | (151) | (124) |
Stock-based compensation plans | (36) | (34) |
Purchase of treasury stock | (1,164) | (1,109) |
Balance at end of period | (1,616) | 140 |
Class A Common Stock | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | $ 5 | $ 5 |
Balance at beginning of period (in shares) | 290.5 | 310.6 |
Stock-based compensation plans (in shares) | 1.3 | 0.9 |
Purchase of treasury stock (in shares) | (4.8) | (6.8) |
Balance at end of period | $ 5 | $ 5 |
Balance at end of period (in shares) | 287 | 304.7 |
Additional Paid-in-Capital | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | $ 6,051 | $ 5,965 |
Stock-based compensation plans | (73) | (59) |
Balance at end of period | 5,978 | 5,906 |
Retained Earnings | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | 14,838 | 12,342 |
Net income | 564 | 757 |
Dividends | (151) | (124) |
Balance at end of period | 15,251 | 12,975 |
Treasury Stock, at Cost | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | (20,929) | (17,015) |
Stock-based compensation plans | 37 | 25 |
Purchase of treasury stock | (1,164) | (1,109) |
Balance at end of period | (22,056) | (18,099) |
Accumulated Other Comprehensive Loss | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | (647) | (729) |
Other comprehensive income (loss) | (147) | 82 |
Balance at end of period | $ (794) | $ (647) |
CONTRACTS WITH CUSTOMERS (Detai
CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Allowance for credit loss | $ 201 | $ 197 |
Loyalty Program | ||
Disaggregation of Revenue [Line Items] | ||
Increase (decrease) in deferred revenue | 184 | |
Contract with customer liability | 7,190 | $ 7,006 |
Deferred revenue recognized | $ 771 |
BUSINESS SEGMENTS - Segment Rev
BUSINESS SEGMENTS - Segment Revenues (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Segment Reporting [Abstract] | ||
Number of reporting segments | segment | 4 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 5,977 | $ 5,615 |
Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 5,383 | 5,073 |
Total segment | U.S. & Canada | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 4,490 | 4,278 |
Total segment | EMEA | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 511 | 471 |
Total segment | Greater China | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 148 | 131 |
Total segment | APEC | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 234 | 193 |
Unallocated corporate and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 594 | 542 |
Fee revenues | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross fee revenues | 1,210 | 1,133 |
Contract investment amortization | (23) | (21) |
Revenue | 1,187 | 1,112 |
Fee revenues | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross fee revenues | 952 | 901 |
Contract investment amortization | (21) | (20) |
Revenue | 931 | 881 |
Fee revenues | Total segment | U.S. & Canada | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross fee revenues | 682 | 672 |
Contract investment amortization | (17) | (16) |
Revenue | 665 | 656 |
Fee revenues | Total segment | EMEA | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross fee revenues | 118 | 105 |
Contract investment amortization | (3) | (3) |
Revenue | 115 | 102 |
Fee revenues | Total segment | Greater China | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross fee revenues | 65 | 57 |
Contract investment amortization | 0 | 0 |
Revenue | 65 | 57 |
Fee revenues | Total segment | APEC | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross fee revenues | 87 | 67 |
Contract investment amortization | (1) | (1) |
Revenue | 86 | 66 |
Owned, leased and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 357 | 356 |
Owned, leased and other | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 265 | 264 |
Owned, leased and other | Total segment | U.S. & Canada | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 108 | 117 |
Owned, leased and other | Total segment | EMEA | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 118 | 113 |
Owned, leased and other | Total segment | Greater China | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 7 | 4 |
Owned, leased and other | Total segment | APEC | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 32 | 30 |
Reimbursements | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 4,433 | 4,147 |
Reimbursements | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 4,187 | 3,928 |
Reimbursements | Total segment | U.S. & Canada | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 3,717 | 3,505 |
Reimbursements | Total segment | EMEA | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 278 | 256 |
Reimbursements | Total segment | Greater China | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 76 | 70 |
Reimbursements | Total segment | APEC | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 116 | $ 97 |
BUSINESS SEGMENTS - Segment Pro
BUSINESS SEGMENTS - Segment Profits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | $ 876 | $ 951 |
Interest expense, net of interest income | (153) | (111) |
Provision for income taxes | (163) | (87) |
NET INCOME | 564 | 757 |
Total segment | U.S. & Canada | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | 625 | 657 |
Total segment | EMEA | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | 81 | 78 |
Total segment | Greater China | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | 51 | 46 |
Total segment | APEC | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | 72 | 56 |
Unallocated corporate and other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | $ 51 | $ 118 |