Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 17, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-36243 | |
Entity Registrant Name | Hilton Worldwide Holdings Inc. | |
Entity incorporation, sate or country code | DE | |
Entity Tax Identification Number | 27-4384691 | |
Entity Address, Address Line One | 7930 Jones Branch Drive | |
Entity Address, Address Line Two | Suite 1100 | |
Entity Address, City or Town | McLean | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22102 | |
City Area Code | 703 | |
Local Phone Number | 883-1000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | HLT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity common stock shares outstanding | 282,162,971 | |
Entity Central Index Key | 0001585689 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Current Assets: | |||
Cash and cash equivalents | $ 719 | $ 403 | |
Restricted cash and cash equivalents | 90 | 81 | |
Accounts receivable, net of allowance for doubtful accounts | 1,193 | 1,150 | |
Prepaid expenses | 115 | 160 | |
Other | 138 | 189 | |
Total current assets | 2,255 | 1,983 | |
Intangibles and Other Assets: | |||
Goodwill | 5,137 | 5,160 | |
Brands | 4,864 | 4,869 | |
Management and franchise contracts, net | 794 | 872 | |
Other intangible assets, net | 404 | 415 | |
Operating lease right-of-use assets | 839 | 0 | |
Property and equipment, net | 380 | 367 | |
Deferred income tax assets | 146 | 90 | |
Other | 248 | 239 | |
Total intangibles and other assets | 12,812 | 12,012 | |
Total assets | 15,067 | 13,995 | |
Current Liabilities: | |||
Accounts payable, accrued expenses and other | 1,784 | 1,549 | |
Current maturities of long-term debt | [1] | 38 | 16 |
Current portion of deferred revenues | 290 | 350 | |
Total current liabilities | 2,900 | 2,615 | |
Long-term debt | 7,767 | 7,266 | |
Operating lease liabilities | 1,004 | 0 | |
Deferred revenues | 834 | 826 | |
Deferred income tax liabilities | 873 | 898 | |
Other | 884 | 863 | |
Total liabilities | 15,266 | 13,437 | |
Commitments and contingencies | |||
Equity (Deficit): | |||
Preferred stock | 0 | 0 | |
Common stock | 3 | 3 | |
Treasury stock, at cost | (3,726) | (2,625) | |
Additional paid-in capital | 10,460 | 10,372 | |
Accumulated deficit | (6,097) | (6,417) | |
Accumulated other comprehensive loss | (848) | (782) | |
Total Hilton stockholders' equity (deficit) | (208) | 551 | |
Noncontrolling interests | 9 | 7 | |
Total equity (deficit) | (199) | 558 | |
Total liabilities and equity (deficit) | 15,067 | 13,995 | |
Guest Loyalty Program [Member] | |||
Current Liabilities: | |||
Current portion of liability for guest loyalty program | 788 | 700 | |
Liability for guest loyalty program | $ 1,004 | $ 969 | |
[1] | Represents current maturities of finance lease liabilities. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 45 | $ 42 |
Variable interest entities - current assets | 103 | 90 |
Variable interest entities - non-current assets | 182 | 178 |
Variable interest entities - current liabilities | 74 | 56 |
Variable interest entities - total liabilities | $ 275 | $ 263 |
Preferred stock, par value (per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 3,000,000,000 | 3,000,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 10,000,000,000 | 10,000,000,000 |
Common stock, issued shares | 333,095,427 | 332,105,163 |
Common stock, outstanding shares | 283,310,197 | 294,815,890 |
Treasury stock, shares | 49,785,230 | 37,289,273 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations Statement - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | $ 2,395 | $ 2,253 | $ 7,083 | $ 6,618 |
Depreciation and amortization | 86 | 81 | 256 | 242 |
General and administrative | 107 | 109 | 327 | 328 |
Other expenses | 11 | 10 | 46 | 36 |
Total expenses excluding reimbursable expenses | 514 | 531 | 1,571 | 1,609 |
Total expenses | 1,957 | 1,868 | 5,855 | 5,548 |
Gain on sale of assets, net | 81 | 0 | 81 | 0 |
Operating income | 519 | 385 | 1,309 | 1,070 |
Interest expense | (105) | (99) | (304) | (277) |
Gain (loss) on foreign currency transactions | 7 | (6) | 4 | (7) |
Other non-operating income (loss), net | 0 | 13 | (8) | 26 |
Income before income taxes | 421 | 293 | 1,001 | 812 |
Income tax expense | (131) | (129) | (291) | (268) |
Net income | 290 | 164 | 710 | 544 |
Net income attributable to noncontrolling interests | (2) | (2) | (4) | (4) |
Net income attributable to Hilton stockholders | $ 288 | $ 162 | $ 706 | $ 540 |
Earnings Per Share, Basic [Abstract] | ||||
Basic EPS | $ 1.01 | $ 0.55 | $ 2.44 | $ 1.77 |
Earnings Per Share, Diluted [Abstract] | ||||
Diluted EPS | 1 | 0.54 | 2.42 | 1.76 |
Cash dividends declared per share | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 |
Franchise and licensing fees [Member] | ||||
Revenues | $ 443 | $ 407 | $ 1,269 | $ 1,142 |
Base and other management fees [member] | ||||
Revenues | 80 | 80 | 249 | 241 |
Incentive management fees [member] | ||||
Revenues | 54 | 57 | 167 | 171 |
Owned and leased hotels [member] | ||||
Revenues | 361 | 373 | 1,060 | 1,099 |
Expenses | 310 | 331 | 942 | 1,003 |
Other revenues [member] | ||||
Revenues | 23 | 27 | 75 | 72 |
Total revenues excluding reimbursable revenues [member] | ||||
Revenues | 961 | 944 | 2,820 | 2,725 |
Other revenues from managed and franchised properties [member] | ||||
Revenues | 1,434 | 1,309 | 4,263 | 3,893 |
Other expenses from managed and franchised properties [member] | ||||
Expenses | $ 1,443 | $ 1,337 | $ 4,284 | $ 3,939 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 290 | $ 164 | $ 710 | $ 544 |
Other comprehensive income (loss), net of tax | ||||
Currency translation adjustment | (35) | (11) | (23) | (56) |
Pension liability adjustment | (1) | (1) | (5) | (4) |
Cash flow hedge adjustment | (8) | 6 | (48) | 47 |
Total other comprehensive loss | (42) | (4) | (66) | (5) |
Comprehensive income | 248 | 160 | 644 | 539 |
Comprehensive income attributable to noncontrolling interests | (2) | (2) | (4) | (4) |
Comprehensive income attributable to Hilton stockholders | $ 246 | $ 158 | $ 640 | $ 535 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Other Comprehensive Income [Abstract] | ||||
Currency translation adjustment, tax benefit (expense) | $ 7 | $ (1) | $ 8 | $ 0 |
Pension liability adjustment, tax benefit | 0 | 0 | (1) | (1) |
Cash flow hedge adjustment, tax benefit (expense) | $ 3 | $ (2) | $ 16 | $ (16) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities: | ||
Net income | $ 710 | $ 544 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of contract acquisition costs | 21 | 20 |
Depreciation and amortization | 256 | 242 |
Gain on sale of assets, net | (81) | 0 |
Loss (gain) on foreign currency transactions | (4) | 7 |
Share-based compensation | 123 | 103 |
Deferred income taxes | 22 | 29 |
Contract acquisition costs | (49) | (82) |
Working capital changes and other | 184 | 51 |
Net cash provided by operating activities | 1,182 | 914 |
Investing Activities: | ||
Capital expenditures for property and equipment | (66) | (51) |
Payments received on other financing receivables | 0 | 49 |
Proceeds from asset disposition | 120 | 0 |
Capitalized software costs | (79) | (62) |
Other | (22) | (16) |
Net cash used in investing activities | (47) | (80) |
Financing Activities: | ||
Borrowings | 1,795 | 1,676 |
Repayment of debt | (1,327) | (701) |
Debt issuance costs | (29) | (21) |
Dividends paid | (130) | (137) |
Repurchases of common stock | (1,086) | (1,561) |
Share-based compensation tax withholdings and other | (31) | (42) |
Other | 0 | (4) |
Net cash used in financing activities | (808) | (790) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (2) | (14) |
Net increase in cash, restricted cash and cash equivalents | 325 | 30 |
Cash, restricted cash and cash equivalents, beginning of period | 484 | 670 |
Cash, restricted cash and cash equivalents, end of period | 809 | 700 |
Supplemental Disclosures: | ||
Interest | 248 | 208 |
Income taxes, net of refunds | $ 238 | $ 230 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts and licensing its brands and intellectual property ("IP"). As of September 30, 2019, we managed, franchised, owned or leased 5,980 hotels and resorts, including timeshare properties, totaling 954,855 rooms in 117 countries and territories. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements for the three and nine months ended September 30, 2019 and 2018 have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe the disclosures made are adequate to prevent the information presented from being misleading, these financial statements 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, 2018. Certain prior year amounts in our condensed consolidated balance sheets have been reclassified to conform to current year presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Additionally, interim results are not necessarily indicative of full year performance. In our opinion, the accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions have been eliminated in consolidation. Summary of Significant Accounting Policies Our significant accounting policies are detailed in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. On January 1, 2019, we adopted the requirements of Accounting Standards Update ("ASU") No. 2016-02 ("ASU 2016-02"), Leases (Topic 842), and the significant accounting policies that changed as a result of the adoption are set forth below. Leases We determine if a contract is or contains a lease at the inception of the contract, and we classify that lease as a finance lease if it meets certain criteria or as an operating lease when it does not. We reassess if a contract is or contains a leasing arrangement upon modification of the contract. For a contract, in which we are a lessee, that contains fixed payments for both lease and non-lease components, we have elected to account for the components as a single lease component, as permitted. At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a right-of-use ("ROU") asset representing our right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Our incremental borrowing rate is estimated on a portfolio basis and incorporates lease term, currency risk, credit risk and an adjustment for collateral. Upon adoption of ASU 2016-02, we elected to use the remaining lease term as of January 1, 2019 in our estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, we use the discount rate as of the commencement date of the lease, incorporating the entire lease term. Additionally, we elected not to recognize leases with lease terms of 12 months or less at the commencement date in our consolidated balance sheets. Current maturities and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current maturities and long-term portions of finance lease liabilities are classified as current maturities of long-term debt and long-term debt, respectively, in our consolidated balance sheets. The ROU asset is measured at the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by us and lease incentives. We evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, we record an impairment loss in our consolidated statements of operations. ROU assets of operating leases are classified as operating lease right-of-use assets and ROU assets of finance leases are classified as property and equipment, net in our consolidated balance sheets. Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, which, for our hotels, are generally based on a percentage of the underlying asset's revenues or profits, or are dependent on changes in an index; or (iii) lease payments equal to the greater of the fixed or variable lease payments. In addition, during the term of our hotel leases, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel property. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term, and lease expense related to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statements of operations. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in our consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statements of operations. Recently Issued Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15 ("ASU 2018-15"), Intangibles – Goodwill and Other – Internal-use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns guidance for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with guidance for capitalizing implementation costs to develop or obtain internal-use software. Capitalized implementation costs will be amortized over the term of the arrangement and presented in the same line item in the statement of operations as the fees associated with the service contract. We elected, as permitted by the standard, to early adopt ASU 2018-15 on a prospective basis as of January 1, 2019. The adoption did not have a material effect on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 , which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position of lessees as ROU assets and lease liabilities, with certain practical expedients available. Subsequent to ASU 2016-02, the FASB issued related ASUs, including ASU No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements, which provides for another transition method in addition to the modified retrospective approach required by ASU 2016-02. This option allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative adjustment to the opening balance of retained earnings in the period of adoption. As described above, we adopted ASU 2016-02 on January 1, 2019 and applied the package of practical expedients included therein, as well as utilized the transition method included in ASU 2018-11. By applying ASU 2016-02 at the adoption date, as opposed to at the beginning of the earliest period presented, the presentation of financial information for periods prior to January 1, 2019 remain unchanged and in accordance with Leases (Topic 840) . On January 1, 2019, we recognized a $256 million cumulative adjustment to accumulated deficit, net of taxes of $81 million related to a decrease to our deferred tax liability, as a result of the impairment of ROU assets that occurred in periods prior to the adoption date. |
Disposal
Disposal | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal | Disposal In September 2019, we completed the sale of the Hilton Odawara Resort & Spa ("Hilton Odawara") for a price of 13Â billion Japanese yen (equivalent to $122 million as of the closing date) and subsequently entered into a 30-year management contract with the purchaser of the hotel. As a result of the sale, we recognized a pre-tax gain of $81 million included in gain on sale of assets, net in our condensed consolidated statements of operations for the three and nine months ended September 30, 2019. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers Contract Liabilities The following table summarizes the activity of our contract liabilities, which are classified as a component of current and long-term deferred revenues, during the nine months ended September 30, 2019: (in millions) Balance as of December 31, 2018 $ 1,060 Cash received in advance and not recognized as revenue (1) 329 Revenue recognized (1) (197) Other (2) (125) Balance as of September 30, 2019 $ 1,067 ____________ (1) Primarily related to Hilton Honors, our guest loyalty program. (2) Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. We recognized revenues that were previously deferred as contract liabilities of $62 million and $33 million du ring the three months ended September 30, 2019 and 2018, respectively, and $149 million during the nine months ended September 30, 2018. Performance Obligations As of September 30, 2019, we had $442 million of deferred revenues related to unsatisfied performance obligations related to Hilton Honors that will be recognized as revenues when the points are redeemed, which we estimate will occur over the next two years. Additionally, we had $625 million of deferred revenues related to application, initiation and licensing fees, which are expected to be recognized as revenues in future periods over the terms of the related contracts. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of September 30, 2019 and December 31, 2018, we consolidated two variable interest entities ("VIEs") that lease hotel properties and, as of December 31, 2018, we also consolidated one VIE that is a management company. We consolidated these VIEs since we are the primary beneficiary, having the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our consolidated VIEs are only available to settle the obligations of the respective entities. In June 2019, the VIE that is a management company, which we had previously consolidated, sold its assets. As a result of the sale, we deconsolidated $7 million of total assets and $3 million of total liabilities, as we no longer had the power to direct the activities that most significantly affect the VIE's economic performance. See Note 13: "Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss" for additional information. Our condensed consolidated balance sheets included the assets and liabilities of the VIEs that we consolidated as of the respective periods, which primarily comprised the following: September 30, December 31, 2019 2018 (in millions) Cash and cash equivalents $ 81 $ 71 Property and equipment, net 71 68 Deferred income tax assets 50 53 Other non-current assets 61 58 Accounts payable, accrued expenses and other 59 41 Long-term debt (1) 200 205 Other long-term liabilities 15 15 ____________ (1) Includes finance lease liabilities of $182 million and $187 million as of September 30, 2019 and December 31, 2018, respectively. |
Amortizing Intangible Assets
Amortizing Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortizing Intangible Assets | Amortizing Intangible Assets Amortizing intangible assets were as follows: September 30, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,226 $ (1,997) $ 229 Contract acquisition costs 573 (114) 459 Development commissions and other 124 (18) 106 $ 2,923 $ (2,129) $ 794 Other intangible assets: Leases (1) $ 279 $ (166) $ 113 Capitalized software costs 583 (377) 206 Hilton Honors (1) 336 (251) 85 Other (1) 34 (34) — $ 1,232 $ (828) $ 404 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,228 $ (1,873) $ 355 Contract acquisition costs 525 (101) 424 Development commissions and other 108 (15) 93 $ 2,861 $ (1,989) $ 872 Other intangible assets: Leases (1) $ 288 $ (161) $ 127 Capitalized software costs 503 (321) 182 Hilton Honors (1) 338 (236) 102 Other (1) 38 (34) 4 $ 1,167 $ (752) $ 415 ____________ (1) Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (formerly known as The Blackstone Group L.P.) (the "Merger"). Amortization of our amortizing intangible assets was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Recognized in depreciation and amortization expense (1) $ 71 $ 67 $ 212 $ 202 Recognized as a reduction of franchise and licensing fees and base and other management fees 7 6 21 20 ____________ (1) Includes amortization expense of $50 million for the three months ended September 30, 2019 and 2018, and $152 million and $153 million for the nine months ended September 30, 2019 and 2018, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger. We estimate future amortization of our amortizing intangible assets as of September 30, 2019 to be as follows: Recognized in Depreciation and Amortization Expense Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees Year (in millions) 2019 (remaining) $ 73 $ 7 2020 264 27 2021 115 26 2022 93 24 2023 50 23 Thereafter 144 352 $ 739 $ 459 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of September 30, 2019, were as follows: September 30, December 31, 2019 2018 (in millions) Senior secured term loan facility with a rate of 3.77%, due 2026 $ 2,619 $ 3,119 Senior notes with a rate of 4.250%, due 2024 1,000 1,000 Senior notes with a rate of 4.625%, due 2025 900 900 Senior notes with a rate of 5.125%, due 2026 1,500 1,500 Senior notes with a rate of 4.875%, due 2027 600 600 Senior notes with a rate of 4.875%, due 2030 1,000 — Finance lease liabilities with a weighted average rate of 5.77%, due 2019 to 2030 255 225 Other debt with a rate of 3.08% due 2026 17 17 7,891 7,361 Less: unamortized deferred financing costs and discount (86) (79) Less: current maturities of long-term debt (1) (38) (16) $ 7,767 $ 7,266 ____________ (1) Represents current maturities of finance lease liabilities. Our senior secured credit facilities consist of a senior secured revolving credit facility (the "Revolving Credit Facility") and a senior secured term loan facility (the "Term Loans"). The obligations of our senior secured credit facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries. In June 2019, we amended the Term Loans to extend the maturity date to June 2026 with a discount of 0.25 percent. In June 2019, we also amended the Revolving Credit Facility to increase the borrowing capacity to $1.75 billion, $250 million of which is available in the form of letters of credit, and extended the maturity date to June 2024. In connection with this amendment, we incurred $7 million of debt issuance costs, which were included in other non-current assets in our condensed consolidated balance sheet as of September 30, 2019. As of September 30, 2019, we had $59 million of outstanding letters of credit, resulting in an available borrowing capacity under the Revolving Credit Facility of $1.69 billion. We are required to pay a commitment fee of 0.125 percent per annum under the Revolving Credit Facility in respect of the unused commitments thereunder. In June 2019, we issued $1.0 billion aggregate principal amount of 4.875% Senior Notes due 2030 (the "2030 Senior Notes") and incurred $15 million of debt issuance costs. Interest on the 2030 Senior Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning January 2020. We used a portion of the net proceeds from the issuance of the 2030 Senior Notes to repay $500 million outstanding on our Term Loans and to repay $225 million outstanding under our Revolving Credit Facility. In connection with the amendment and the repayment of the Term Loans, we recognized $10 million of fees and unamortized deferred financing costs and discount, which were included in other non-operating income, net in our condensed consolidated statement of operations for the nine months ended September 30, 2019. The 4.250% Senior Notes due 2024 (the "2024 Senior Notes"), the 4.625% Senior Notes due 2025 (the "2025 Senior Notes"), the 5.125% Senior Notes due 2026 (the "2026 Senior Notes"), the 4.875% Senior Notes due 2027 (the "2027 Senior Notes") and the 2030 Senior Notes are guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries that are themselves not issuers of the applicable series of senior notes. See Note 16: "Condensed Consolidating Guarantor Financial Information" for additional information. The contractual maturities of our long-term debt as of September 30, 2019 were as follows: Year (in millions) 2019 (remaining) $ 10 2020 37 2021 30 2022 21 2023 20 Thereafter 7,773 $ 7,891 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below; the fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of September 30, 2019 and December 31, 2018: September 30, 2019 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 174 $ — $ 174 $ — Restricted cash equivalents 33 — 33 — Liabilities: Long-term debt (1) 7,533 5,217 — 2,639 Interest rate swaps 45 — 45 — December 31, 2018 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 87 $ — $ 87 $ — Restricted cash equivalents 18 — 18 — Interest rate swaps 16 — 16 — Liabilities: Long-term debt (1) 7,040 3,809 — 3,039 ____________ (1) The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt. We measure our interest rate swaps at fair value, which were estimated using a discounted cash flow analysis that reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves, as applicable. Our interest rate swaps are included in other non-current assets or other long-term liabilities in our condensed consolidated balance sheets depending on their fair value as of the balance sheet date. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | Leases We lease hotel properties, land, corporate office space and equipment used at hotels and corporate offices, with our most significant lease liabilities related to hotel properties. As of September 30, 2019, we leased 52 hotels under operating leases and six hotels under finance leases, two of which were the liabilities of consolidated VIEs and were non-recourse to us. Our hotel leases expire at various dates, with varying renewal and termination options. Supplemental balance sheet information related to leases as of September 30, 2019 was as follows: (dollars Operating leases: Operating lease right-of-use assets $ 839 Accounts payable, accrued expenses and other 128 Operating lease liabilities 1,004 Finance leases: Property and equipment, net $ 57 Current maturities of long-term debt 38 Long-term debt 217 Weighted average remaining lease term: Operating leases 12.9 years Finance leases 8.7 years Weighted average discount rate: Operating leases 3.75 % Finance leases 5.77 % The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in millions) Operating lease expense for fixed payments $ 35 $ 108 Finance lease expense: Amortization of ROU assets 7 23 Interest on lease liabilities 3 10 Variable lease expense (1) 41 123 ____________ (1) Includes amounts related to operating leases and interest payments on finance leases. Lease expense for our operating leases for the year ended December 31, 2018 included $225 million of fixed lease expense and $142 million of variable lease expense. Supplemental cash flow information related to leases for the nine months ended September 30, 2019 was as follows: (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 130 Financing cash flows from finance leases 32 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 21 Finance leases 59 Our future minimum lease payments as of September 30, 2019 were as follows: Operating Finance Year (in millions) 2019 (remaining) $ 43 $ 14 2020 170 51 2021 160 42 2022 133 32 2023 118 30 Thereafter 846 164 Total minimum lease payments 1,470 333 Less: imputed interest (338) (78) Total lease liabilities $ 1,132 $ 255 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At the end of each quarter, we estimate the effective income tax rate expected to be applied for the full year. The effective income tax rate is determined by the level and composition of income (loss) before income taxes, which is subject to federal, state, local and foreign income taxes. We file income tax returns, including returns for our subsidiaries, with federal, state, local and foreign tax jurisdictions. We are under regular and recurring audit by the Internal Revenue Service ("IRS") and other taxing authorities on open tax positions. The timing of the resolution of tax audits is highly uncertain, as are the amounts, if any, that may ultimately be paid upon such resolution. Changes may result from the conclusion of ongoing audits, appeals or litigation in federal, state, local and foreign tax jurisdictions or from the resolution of various proceedings between the U.S. and foreign tax authorities. As of September 30, 2019, we remain subject to federal and state examinations of our income tax returns for tax years from 2005 through 2018 and foreign examinations of our income tax returns for tax years from 1996 through 2018. Our total unrecognized tax benefits as of September 30, 2019 and December 31, 2018 were $330 million and $318 million, respectively. As of September 30, 2019 and December 31, 2018, we had accrued approximately $46 million and $40 million, respectively, for interest and penalties related to our unrecognized tax benefits in our condensed consolidated balance sheets. Included in the balances of unrecognized tax benefits as of September 30, 2019 and December 31, 2018 was $318 million and $310 million, respectively, associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate. In April 2014, we received 30-day Letters from the IRS and the Revenue Agents Report ("RAR") for the 2006 and October 2007 tax years. We disagreed with several of the proposed adjustments in the RAR, filed a formal appeals protest with the IRS and did not make any tax payments related to this audit. The issues being protested in appeals relate to assertions by the IRS that: (i) certain foreign currency denominated intercompany loans from our foreign subsidiaries to certain U.S. subsidiaries should be recharacterized as equity for U.S. federal income tax purposes and constitute deemed dividends from such foreign subsidiaries to our U.S. subsidiaries; (ii) in calculating the amount of U.S. taxable income resulting from Hilton Honors, we should not reduce gross income by the estimated costs of future redemptions, but rather such costs would be deductible at the time the points are redeemed; and (iii) certain foreign currency denominated loans issued by one of our Luxembourg subsidiaries whose functional currency is the U.S. dollar ("USD"), should instead be treated as issued by one of our Belgian subsidiaries whose functional currency is the euro ("EUR"), and thus foreign currency gains and losses with respect to such loans should have been measured in EUR, instead of USD. In January 2016, we received a 30-day Letter from the IRS and the RAR for the December 2007 through 2010 tax years, which included proposed adjustments that reflect the carryover effect of the three protested issues from the 2006 through October 2007 tax years. These proposed adjustments are also being protested in appeals and formal appeals protests have been submitted. In April 2016, we requested a Technical Advice Memorandum ("TAM") from the IRS with respect to the treatment of the gains and losses recognized as a result of changes in foreign currency exchange rates on loans issued by our Luxembourg subsidiary. We received a taxpayer favorable TAM in October 2018 and this issue is no longer being pursued by the IRS for any of the open tax years. In September 2018, we received a 30-day Letter from the IRS and the RAR for the 2011 through 2013 tax years, which reflects proposed adjustments for the carryover effect of the two remaining protested issues from the 2006 through October 2007 tax years. The adjustments for the 2011 through 2013 tax years will also be protested in appeals and formal protests have been submitted. After receipt of the TAM relating to the Luxembourg subsidiary, the two remaining proposed adjustments sought by the IRS would result in additional U.S. federal tax owed of approximately $817 million, excluding interest and penalties and potential state income |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We grant time-vesting restricted stock units and restricted stock (collectively, "RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares") to our employees and deferred share units ("DSUs") to members of our board of directors. We recognized share-based compensation expense of $42 million and $35 million during the three months ended September 30, 2019 and 2018, respectively, and $123 million and $103 million during the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, unrecognized compensation costs for unvested awards was approximately $153 million, which are expected to be recognized over a weighted-average period of 1.8 years on a straight-line basis. As of September 30, 2019, there were 14.2 million shares of common stock available for future issuance under the Hilton 2017 Omnibus Incentive Plan, plus any shares subject to awards outstanding under our 2013 Omnibus Incentive Plan, which will become available for issuance under the Hilton 2017 Omnibus Incentive Plan if such outstanding awards expire or are terminated or are canceled or forfeited. RSUs During the nine months ended September 30, 2019, we granted 1.0 million RSUs with a weighted average grant date fair value per share of $83.41, which generally vest in equal annual installments over two Options During the nine months ended September 30, 2019, we granted 0.8 million options with a weighted average exercise price per share of $83.11, which vest over three years from the date of grant in equal annual installments and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances. The weighted average grant date fair value per share of the options granted during the nine months ended September 30, 2019 was $21.08, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility (1) 23.51 % Dividend yield (2) 0.81 % Risk-free rate (3) 2.47 % Expected term (in years) (4) 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price. (2) Estimated based on the quarterly dividend and the three-month average stock price at the date of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. As of September 30, 2019, 1.5 million options were exercisable. Performance Shares During the nine months ended September 30, 2019, we granted 0.4 million performance shares with a weighted average grant date fair value per share of $83.11. The performance shares are settled at the end of the three-year performance period with: (i) 50 percent of the awards subject to achievement based on the compound annual growth rate ("CAGR") of the Company's earnings before interest expense, a provision for income taxes and depreciation and amortization ("EBITDA"), adjusted to exclude certain items ("Adjusted EBITDA"), referred to as EBITDA CAGR and (ii) 50 percent of the awards subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR, referred to as FCF CAGR. The total number of performance shares that vest related to each performance measure is based on an achievement factor that ranges from a zero percent to 200 percent payout, with 100 percent being the target. As of September 30, 2019, we determined that the performance conditions for the performance shares are probable of achievement, and we recognized compensation expense, for both our outstanding EBITDA CAGR and FCF CAGR performance shares, at the maximum achievement percentage for the 2017 and 2018 performance shares and at target for the 2019 performance shares. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the calculation of basic and diluted earnings per share ("EPS"): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions, except per share amounts) Basic EPS: Numerator: Net income attributable to Hilton stockholders $ 288 $ 162 $ 706 $ 540 Denominator: Weighted average shares outstanding 285 297 289 305 Basic EPS $ 1.01 $ 0.55 $ 2.44 $ 1.77 Diluted EPS: Numerator: Net income attributable to Hilton stockholders $ 288 $ 162 $ 706 $ 540 Denominator: Weighted average shares outstanding 288 300 292 307 Diluted EPS $ 1.00 $ 0.54 $ 2.42 $ 1.76 Approximately 1 million share-based compensation awards were excluded from the computation of diluted EPS for the three and nine months ended September 30, 2019 and 2018 because their effect would have been anti-dilutive under the treasury stock method. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss | Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss The following tables present the changes in the components of stockholders' equity (deficit) for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of June 30, 2019 288 $ 3 $ (3,304) $ 10,419 $ (6,342) $ (806) $ 7 $ (23) Net income — — — — 288 — 2 290 Other comprehensive loss — — — — — (42) — (42) Dividends — — — — (43) — — (43) Repurchases of common stock (5) — (422) — — — — (422) Share-based compensation — — — 41 — — — 41 Balance as of September 30, 2019 283 $ 3 $ (3,726) $ 10,460 $ (6,097) $ (848) $ 9 $ (199) Three Months Ended September 30, 2018 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of June 30, 2018 298 $ 3 $ (2,330) $ 10,321 $ (6,697) $ (742) $ 5 $ 560 Net income — — — — 162 — 2 164 Other comprehensive loss — — — — — (4) — (4) Dividends — — — — (45) — — (45) Repurchases of common stock (1) — (122) — — — — (122) Share-based compensation — — — 31 — — — 31 Acquisition of noncontrolling interest — — — (3) — — — (3) Distributions — — — — — — (1) (1) Balance as of September 30, 2018 297 $ 3 $ (2,452) $ 10,349 $ (6,580) $ (746) $ 6 $ 580 Nine Months Ended September 30, 2019 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of December 31, 2018 295 $ 3 $ (2,625) $ 10,372 $ (6,417) $ (782) $ 7 $ 558 Net income — — — — 706 — 4 710 Other comprehensive loss — — — — — (66) — (66) Dividends — — — — (130) — — (130) Repurchases of common stock (13) — (1,101) — — — — (1,101) Share-based compensation 1 — — 88 — — — 88 Cumulative effect of the adoption of ASU 2016-02 — — — — (256) — — (256) Deconsolidation of a VIE — — — — — — (2) (2) Balance as of September 30, 2019 283 $ 3 $ (3,726) $ 10,460 $ (6,097) $ (848) $ 9 $ (199) Nine Months Ended September 30, 2018 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of December 31, 2017 317 $ 3 $ (891) $ 10,298 $ (6,981) $ (741) $ 3 $ 1,691 Net income — — — — 540 — 4 544 Other comprehensive loss — — — — — (5) — (5) Dividends — — — — (139) — — (139) Repurchases of common stock (21) — (1,561) — — — — (1,561) Share-based compensation 1 — — 54 — — — 54 Acquisition of noncontrolling interest — — — (3) — — — (3) Distributions — — — — — — (1) (1) Balance as of September 30, 2018 297 $ 3 $ (2,452) $ 10,349 $ (6,580) $ (746) $ 6 $ 580 The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2018 $ (545) $ (260) $ 23 $ (782) Other comprehensive loss before reclassifications (24) (1) (40) (65) Amounts reclassified from accumulated other comprehensive loss 1 6 (8) (1) Net current period other comprehensive income (loss) (23) 5 (48) (66) Balance as of September 30, 2019 $ (568) $ (255) $ (25) $ (848) Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2017 $ (513) $ (229) $ 1 $ (741) Other comprehensive income (loss) before reclassifications (56) (2) 41 (17) Amounts reclassified from accumulated other comprehensive loss — 6 6 12 Net current period other comprehensive income (loss) (56) 4 47 (5) Balance as of September 30, 2018 $ (569) $ (225) $ 48 $ (746) ____________ (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. The following table presents additional information about reclassifications out of accumulated other comprehensive loss; amounts in parentheses indicate losses in our condensed consolidated statements of operations: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in millions) Currency translation adjustment: Liquidation of investments in foreign entities (1) $ — $ (1) Total currency translation adjustment reclassifications for the period, net of taxes — (1) Pension liability adjustment: Amortization of prior service cost (2) (1) (3) Amortization of net loss (2) (2) (5) Tax benefit (3) 1 2 Total pension liability adjustment reclassifications for the period, net of taxes (2) (6) Cash flow hedge adjustment: Interest rate swaps (4) 2 8 Forward contracts (5) 2 2 Tax expense (3) (1) (2) Total cash flow hedge adjustment reclassifications for the period, net of taxes 3 8 Total reclassifications for the period, net of taxes $ 1 $ 1 ____________ (1) Includes a gain on the related net investment hedge for one of the foreign entities. Reclassified to gain (loss) on foreign currency transactions in our condensed consolidated statements of operations. The related tax benefit reclassified to income tax expense in our condensed consolidated statements of operations was less than $1 million. (2) Reclassified to other non-operating income (loss), net in our condensed consolidated statements of operations. (3) Reclassified to income tax expense in our condensed consolidated statements of operations. (4) Reclassified to interest expense in our condensed consolidated statements of operations. (5) Reclassified to franchise and licensing fees and base and other management fees in our condensed consolidated statements of operations. As of September 30, 2019, approximately $959 million remained available for share repurchases under our $3.5 billion stock repurchase program. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We are a hospitality company with operations organized in two distinct operating segments: (i) management and franchise and (ii) ownership. These segments are managed and reported separately because of their distinct economic characteristics. The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels operated or managed by someone other than us. As of September 30, 2019, this segment included 706 managed hotels and 5,154 franchised hotels consisting of 925,458 total rooms. This segment also earns licensing fees from Hilton Grand Vacations and co-brand credit card arrangements for the exclusive right to use certain Hilton marks and IP, as well as fees for managing properties in our ownership segment. As of September 30, 2019, the ownership segment included 65 properties totaling 20,481 rooms, comprising 57 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and five hotels owned or leased by unconsolidated affiliates. The performance of our operating segments is evaluated primarily on operating income, without allocating other revenues and expenses or general and administrative expenses. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Franchise and licensing fees $ 447 $ 409 $ 1,277 $ 1,147 Base and other management fees (1) 95 95 293 286 Incentive management fees 54 57 167 171 Management and franchise 596 561 1,737 1,604 Ownership 361 373 1,060 1,099 Segment revenues 957 934 2,797 2,703 Amortization of contract acquisition costs (7) (6) (21) (20) Other revenues 23 27 75 72 Direct reimbursements from managed and franchised properties (2) 770 710 2,334 2,139 Indirect reimbursements from managed and franchised properties (2) 664 599 1,929 1,754 Intersegment fees elimination (1) (12) (11) (31) (30) Total revenues $ 2,395 $ 2,253 $ 7,083 $ 6,618 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations. The following table presents operating income for our reportable segments, reconciled to consolidated income before income taxes: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Management and franchise (1) $ 596 $ 561 $ 1,737 $ 1,604 Ownership (1) 39 31 87 66 Segment operating income 635 592 1,824 1,670 Amortization of contract acquisition costs (7) (6) (21) (20) Other revenues, less other expenses 12 17 29 36 Net other expenses from managed and franchised properties (9) (28) (21) (46) Depreciation and amortization (86) (81) (256) (242) General and administrative (107) (109) (327) (328) Gain on sale of assets, net 81 — 81 — Operating income 519 385 1,309 1,070 Interest expense (105) (99) (304) (277) Gain (loss) on foreign currency transactions 7 (6) 4 (7) Other non-operating income (loss), net — 13 (8) 26 Income before income taxes $ 421 $ 293 $ 1,001 $ 812 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. The following table presents total assets for our reportable segments, reconciled to consolidated amounts: September 30, December 31, 2019 2018 (in millions) Management and franchise $ 11,345 $ 11,362 Ownership 1,627 927 Corporate and other 2,095 1,706 $ 15,067 $ 13,995 The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts: Nine Months Ended September 30, 2019 2018 (in millions) Ownership $ 31 $ 34 Corporate and other 35 17 $ 66 $ 51 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We provide performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees allow us to terminate the contract, rather than fund shortfalls, if specified operating performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of September 30, 2019, we had six performance guarantees, with expirations ranging from December 2019 to 2039, and possible cash outlays totaling approximately $38 million. Our obligations under these guarantees in future periods are dependent on the operating performance level of the related hotel over the remaining term of the performance guarantee. As of September 30, 2019 and December 31, 2018, we accrued current liabilities of $3 million and $12 million, respectively, for one performance guarantee related to a hotel owned by a VIE for which we were not the primary beneficiary. We may enter into new contracts containing performance guarantees in the future, which could increase our possible cash outlays. We do not have any letters of credit pledged as collateral against our performance guarantees. As of September 30, 2019, we guaranteed two loans for three hotels that we franchise or will franchise for a total of $30 million. One of the loans has an initial maturity date in 2022 with two one-year extension options and the other loan will mature in 2023. Although we believe it is unlikely that material payments will be required under these guarantees, there can be no assurance that this will be the case. We do not have any letters of credit pledged as collateral against these guarantees. We hold interests in VIEs, for which we are not the primary beneficiary, that have entered into loan agreements with third parties. Under the terms of our contractual arrangements with certain of these VIEs, we may provide financial support to such entities under specified circumstances, including default of such a VIE under a third-party loan agreement, and may have the option to acquire a controlling financial interest in such an entity at a predetermined amount. In a circumstance that we provide financial support or exercise our option to acquire an additional interest in a VIE, we may be required to reassess whether we are the primary beneficiary of the VIE. If we determine that we are the primary beneficiary of the VIE, we would be required to consolidate the total assets, liabilities and results of operations of the VIE, which may be material upon consolidation. We have entered into agreements with owners of certain hotels that we currently manage or will franchise to finance capital expenditures at the hotels. As of September 30, 2019, we had remaining possible cash outlays of approximately $25 million, of which we expect to fund $15 million in the remainder of 2019 and $10 million in 2020. We receive fees from managed and franchised properties to operate our marketing, sales and brand programs on behalf of hotel owners. As of September 30, 2019 and December 31, 2018, we had collected an aggregate of $397 million and $375 million in excess of amounts expended, respectively, across all programs. We are involved in various claims and lawsuits arising in the ordinary course of business, some of which include claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |
Condensed Consolidating Guarantor Financial Information | Condensed Consolidating Guarantor Financial Information Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (together, the "HWF Issuers"), which are 100 percent owned by Hilton Worldwide Parent LLC ("HWP"), which is 100 percent owned by the Parent, issued the 2025 Senior Notes and the 2027 Senior Notes. Hilton Domestic Operating Company Inc. ("HOC"), which is 100 percent owned by Hilton Worldwide Finance LLC, assumed the 2024 Senior Notes, issued the 2026 Senior Notes and, in June 2019, issued the 2030 Senior Notes. The 2024 Senior Notes, 2025 Senior Notes, 2026 Senior Notes, 2027 Senior Notes and 2030 Senior Notes are collectively referred to as the Senior Notes. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers. The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by HWP, the Parent and certain of the Parent's wholly owned domestic restricted subsidiaries that are themselves not issuers of the applicable series of Senior Notes (together, the "Guarantors''). The indentures that govern the Senior Notes provide that any subsidiary of the Company that provides a guarantee of our senior secured credit facilities will guarantee the Senior Notes. Additionally, the HWF Issuers are guarantors of the 2024 Senior Notes, the 2026 Senior Notes and the 2030 Senior Notes, and HOC is a guarantor of the 2025 Senior Notes and the 2027 Senior Notes. As of September 30, 2019, none of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guaranteed the Senior Notes (collectively, the "Non-Guarantors"). The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under our senior secured credit facilities; (iii) the subsidiary is declared "unrestricted" for covenant purposes; (iv) the subsidiary is merged with or into the applicable Subsidiary Issuers or another Guarantor or the Guarantor liquidates after transferring all of its assets to the applicable Subsidiary Issuers or another Guarantor; or (v) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied, in each case in compliance with applicable provisions of the indentures. The following tables present the condensed consolidating financial information as of September 30, 2019 and December 31, 2018, and for the three and nine months ended September 30, 2019 and 2018, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. The condensed consolidating financial information presents the financial information for all periods based on the composition of the Guarantors and Non-Guarantors as of September 30, 2019. September 30, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 17 $ 26 $ 676 $ — $ 719 Restricted cash and cash equivalents — — 34 23 33 — 90 Accounts receivable, net — — 13 850 332 (2) 1,193 Intercompany receivables — — — — 39 (39) — Prepaid expenses — — 26 37 57 (5) 115 Other — 3 1 56 102 (24) 138 Total current assets — 3 91 992 1,239 (70) 2,255 Intangibles and Other Assets: Investments in subsidiaries (187) 3,948 7,709 (187) — (11,283) — Goodwill — — — 3,824 1,313 — 5,137 Brands — — — 4,404 460 — 4,864 Management and franchise contracts, net — — 1 464 329 — 794 Other intangible assets, net — — — 290 114 — 404 Operating lease right-of-use assets — — 34 9 796 — 839 Property and equipment, net — — 60 68 252 — 380 Deferred income tax assets 3 11 85 — 146 (99) 146 Other — 11 31 37 169 — 248 Total intangibles and other assets (184) 3,970 7,920 8,909 3,579 (11,382) 12,812 TOTAL ASSETS $ (184) $ 3,973 $ 8,011 $ 9,901 $ 4,818 $ (11,452) $ 15,067 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts payable, accrued expenses and other $ 24 $ 37 $ 264 $ 711 $ 770 $ (22) $ 1,784 Current maturities of long-term debt — — 20 — 18 — 38 Current portion of deferred revenues — — 38 241 20 (9) 290 Intercompany payables — — 39 — — (39) — Current portion of liability for guest loyalty program — — — 788 — — 788 Total current liabilities 24 37 361 1,740 808 (70) 2,900 Long-term debt — 4,078 3,474 — 215 — 7,767 Operating lease liabilities — — 39 7 958 — 1,004 Deferred revenues — — — 764 70 — 834 Deferred income tax liabilities — — — 957 15 (99) 873 Liability for guest loyalty program — — — 1,004 — — 1,004 Other — 45 189 96 554 — 884 Total liabilities 24 4,160 4,063 4,568 2,620 (169) 15,266 Equity (Deficit): Total Hilton stockholders' equity (deficit) (208) (187) 3,948 5,333 2,189 (11,283) (208) Noncontrolling interests — — — — 9 — 9 Total equity (deficit) (208) (187) 3,948 5,333 2,198 (11,283) (199) TOTAL LIABILITIES AND EQUITY (DEFICIT) $ (184) $ 3,973 $ 8,011 $ 9,901 $ 4,818 $ (11,452) $ 15,067 December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 17 $ 383 $ — $ 403 Restricted cash and cash equivalents — — 34 15 32 — 81 Accounts receivable, net — — 10 735 405 — 1,150 Intercompany receivables — — — — 40 (40) — Prepaid expenses — — 52 37 80 (9) 160 Other — 1 1 36 154 (3) 189 Total current assets — 1 100 840 1,094 (52) 1,983 Intangibles and Other Assets: Investments in subsidiaries 557 5,131 7,930 557 — (14,175) — Goodwill — — — 3,824 1,336 — 5,160 Brands — — — 4,404 465 — 4,869 Management and franchise contracts, net — — — 556 316 — 872 Other intangible assets, net — — — 287 128 — 415 Property and equipment, net — — 27 65 275 — 367 Deferred income tax assets 4 — 94 — 90 (98) 90 Other — 23 33 22 161 — 239 Total intangibles and other assets 561 5,154 8,084 9,715 2,771 (14,273) 12,012 TOTAL ASSETS $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325) $ 13,995 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 10 $ 19 $ 229 $ 529 $ 765 $ (3) $ 1,549 Current maturities of long-term debt — — — — 16 — 16 Current portion of deferred revenues — — 106 239 14 (9) 350 Intercompany payables — — 40 — — (40) — Current portion of liability for guest loyalty program — — — 700 — — 700 Total current liabilities 10 19 375 1,468 795 (52) 2,615 Long-term debt — 4,573 2,467 — 226 — 7,266 Deferred revenues — — — 762 64 — 826 Deferred income tax liabilities — 6 — 962 28 (98) 898 Liability for guest loyalty program — — — 969 — — 969 Other — — 211 93 559 — 863 Total liabilities 10 4,598 3,053 4,254 1,672 (150) 13,437 Equity: Total Hilton stockholders' equity 551 557 5,131 6,301 2,186 (14,175) 551 Noncontrolling interests — — — — 7 — 7 Total equity 551 557 5,131 6,301 2,193 (14,175) 558 TOTAL LIABILITIES AND EQUITY $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325) $ 13,995 Three Months Ended September 30, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 68 $ 338 $ 41 $ (4) $ 443 Base and other management fees — — 1 48 31 — 80 Incentive management fees — — — 16 38 — 54 Owned and leased hotels — — — — 361 — 361 Other revenues — — — 20 3 — 23 — — 69 422 474 (4) 961 Other revenues from managed and franchised properties — — 79 1,195 160 — 1,434 Total revenues — — 148 1,617 634 (4) 2,395 Expenses Owned and leased hotels — — — — 310 — 310 Depreciation and amortization — — 2 63 21 — 86 General and administrative — — 88 — 28 (9) 107 Other expenses — — 1 — 5 5 11 — — 91 63 364 (4) 514 Other expenses from managed and franchised properties — — 85 1,200 158 — 1,443 Total expenses — — 176 1,263 522 (4) 1,957 Gain on sale of assets, net — — — — 81 — 81 Operating income (loss) — — (28) 354 193 — 519 Interest expense — (45) (49) — (11) — (105) Gain (loss) on foreign currency transactions — — 4 (43) 46 — 7 Other non-operating income (loss), net — (2) — (3) 5 — — Income (loss) before income taxes and equity in earnings from subsidiaries — (47) (73) 308 233 — 421 Income tax benefit (expense) — 11 15 (79) (78) — (131) Income (loss) before equity in earnings from subsidiaries — (36) (58) 229 155 — 290 Equity in earnings from subsidiaries 288 324 382 288 — (1,282) — Net income 288 288 324 517 155 (1,282) 290 Net income attributable to noncontrolling interests — — — — (2) — (2) Net income attributable to Hilton stockholders $ 288 $ 288 $ 324 $ 517 $ 153 $ (1,282) $ 288 Comprehensive income $ 246 $ 279 $ 324 $ 516 $ 123 $ (1,240) $ 248 Comprehensive income attributable to noncontrolling interests — — — — (2) — (2) Comprehensive income attributable to Hilton stockholders $ 246 $ 279 $ 324 $ 516 $ 121 $ (1,240) $ 246 Three Months Ended September 30, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 57 $ 316 $ 39 $ (5) $ 407 Base and other management fees — — — 49 31 — 80 Incentive management fees — — — 15 42 — 57 Owned and leased hotels — — — — 373 — 373 Other revenues — — 1 19 3 4 27 — — 58 399 488 (1) 944 Other revenues from managed and franchised properties — — 70 1,076 163 — 1,309 Total revenues — — 128 1,475 651 (1) 2,253 Expenses Owned and leased hotels — — — — 331 — 331 Depreciation and amortization — — 2 58 21 — 81 General and administrative — — 81 — 30 (2) 109 Other expenses — — 1 2 6 1 10 — — 84 60 388 (1) 531 Other expenses from managed and franchised properties — — 70 1,106 161 — 1,337 Total expenses — — 154 1,166 549 (1) 1,868 Operating income (loss) — — (26) 309 102 — 385 Interest expense — (54) (34) — (8) (3) (99) Gain (loss) on foreign currency transactions — — — 1 (7) — (6) Other non-operating income, net — — 1 4 5 3 13 Income (loss) before income taxes and equity in earnings from subsidiaries — (54) (59) 314 92 — 293 Income tax benefit (expense) — 13 8 (70) (80) — (129) Income (loss) before equity in earnings from subsidiaries — (41) (51) 244 12 — 164 Equity in earnings from subsidiaries 162 203 254 162 — (781) — Net income 162 162 203 406 12 (781) 164 Net income attributable to noncontrolling interests — — — — (2) — (2) Net income attributable to Hilton stockholders $ 162 $ 162 $ 203 $ 406 $ 10 $ (781) $ 162 Comprehensive income $ 158 $ 168 $ 204 $ 405 $ 2 $ (777) $ 160 Comprehensive income attributable to noncontrolling interests — — — — (2) — (2) Comprehensive income attributable to Hilton stockholders $ 158 $ 168 $ 204 $ 405 $ — $ (777) $ 158 Nine Months Ended September 30, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 198 $ 970 $ 114 $ (13) $ 1,269 Base and other management fees — — 1 157 91 — 249 Incentive management fees — — — 60 107 — 167 Owned and leased hotels — — — — 1,060 — 1,060 Other revenues — — 1 63 11 — 75 — — 200 1,250 1,383 (13) 2,820 Other revenues from managed and franchised properties — — 235 3,581 447 — 4,263 Total revenues — — 435 4,831 1,830 (13) 7,083 Expenses Owned and leased hotels — — — — 942 — 942 Depreciation and amortization — — 5 188 63 — 256 General and administrative — — 259 — 90 (22) 327 Other expenses — — 5 10 22 9 46 — — 269 198 1,117 (13) 1,571 Other expenses from managed and franchised properties — — 244 3,602 438 — 4,284 Total expenses — — 513 3,800 1,555 (13) 5,855 Gain on sale of assets, net — — — — 81 — 81 Operating income (loss) — — (78) 1,031 356 — 1,309 Interest expense — (148) (117) — (39) — (304) Gain (loss) on foreign currency transactions — — 5 (70) 69 — 4 Other non-operating income (loss), net — (11) — (8) 11 — (8) Income (loss) before income taxes and equity in earnings from subsidiaries — (159) (190) 953 397 — 1,001 Income tax benefit (expense) — 38 42 (238) (133) — (291) Income (loss) before equity in earnings from subsidiaries — (121) (148) 715 264 — 710 Equity in earnings from subsidiaries 706 827 975 706 — (3,214) — Net income 706 706 827 1,421 264 (3,214) 710 Net income attributable to noncontrolling interests — — — — (4) — (4) Net income attributable to Hilton stockholders $ 706 $ 706 $ 827 $ 1,421 $ 260 $ (3,214) $ 706 Comprehensive income $ 640 $ 657 $ 830 $ 1,420 $ 245 $ (3,148) $ 644 Comprehensive income attributable to noncontrolling interests — — — — (4) — (4) Comprehensive income attributable to Hilton stockholders $ 640 $ 657 $ 830 $ 1,420 $ 241 $ (3,148) $ 640 Nine Months Ended September 30, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 151 $ 900 $ 104 $ (13) $ 1,142 Base and other management fees — — 1 155 85 — 241 Incentive management fees — — — 58 113 — 171 Owned and leased hotels — — — — 1,099 — 1,099 Other revenues — — 4 60 8 — 72 — — 156 1,173 1,409 (13) 2,725 Other revenues from managed and franchised properties — — 176 3,256 461 — 3,893 Total revenues — — 332 4,429 1,870 (13) 6,618 Expenses Owned and leased hotels — — — — 1,003 — 1,003 Depreciation and amortization — — 5 176 61 — 242 General and administrative — — 237 — 97 (6) 328 Other expenses — — 5 17 21 (7) 36 — — 247 193 1,182 (13) 1,609 Other expenses from managed and franchised properties — — 178 3,304 457 — 3,939 Total expenses — — 425 3,497 1,639 (13) 5,548 Operating income (loss) — — (93) 932 231 — 1,070 Interest expense — (172) (78) — (27) — (277) Gain (loss) on foreign currency transactions — — 3 (80) 70 — (7) Other non-operating income (loss), net — (7) 5 16 12 — 26 Income (loss) before income taxes and equity in earnings from subsidiaries — (179) (163) 868 286 — 812 Income tax benefit (expense) — 44 35 (204) (143) — (268) Income (loss) before equity in earnings from subsidiaries — (135) (128) 664 143 — 544 Equity in earnings from subsidiaries 540 675 803 540 — (2,558) — Net income 540 540 675 1,204 143 (2,558) 544 Net income attributable to noncontrolling interests — — — — (4) — (4) Net income attributable to Hilton stockholders $ 540 $ 540 $ 675 $ 1,204 $ 139 $ (2,558) $ 540 Comprehensive income $ 535 $ 585 $ 677 $ 1,203 $ 92 $ (2,553) $ 539 Comprehensive income attributable to noncontrolling interests — — — — (4) — (4) Comprehensive income attributable to Hilton stockholders $ 535 $ 585 $ 677 $ 1,203 $ 88 $ (2,553) $ 535 Nine Months Ended September 30, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (122) $ (17) $ 1,157 $ 229 $ (65) $ 1,182 Investing Activities: Capital expenditures for property and equipment — — (6) (5) (55) — (66) Proceeds from asset disposition — — — — 120 — 120 Capitalized software costs — — — (79) — — (79) Other — — — (18) (4) — (22) Net cash provided by (used in) investing activities — — (6) (102) 61 — (47) Financing Activities: Borrowings — 795 1,000 — — — 1,795 Repayment of debt — (1,295) (20) — (12) — (1,327) Debt issuance costs — (13) (16) — — — (29) Intercompany transfers 1,216 635 (896) (1,038) 83 — — Dividends paid (130) — — — — — (130) Repurchases of common stock (1,086) — — — — — (1,086) Intercompany dividends — — — — (65) 65 — Share-based compensation tax withholdings and other — — (31) — — — (31) Net cash provided by (used in) financing activities — 122 37 (1,038) 6 65 (808) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (2) — (2) Net increase in cash, restricted cash and cash equivalents — — 14 17 294 — 325 Cash, restricted cash and cash equivalents, beginning of period — — 37 32 415 — 484 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 51 $ 49 $ 709 $ — $ 809 Nine Months Ended September 30, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (143) $ (7) $ 808 $ 256 $ — $ 914 Investing Activities: Capital expenditures for property and equipment — — (5) (4) (42) — (51) Payments received on other financing receivables — — — 49 — — 49 Capitalized software costs — — — (62) — — (62) Other — — — (6) (10) — (16) Net cash used in investing activities — — (5) (23) (52) — (80) Financing Activities: Borrowings — 175 1,500 — 1 — 1,676 Repayment of debt — (685) — — (16) — (701) Debt issuance costs — — (21) — — — (21) Intercompany transfers 1,698 653 (1,451) (739) (161) — — Dividends paid (137) — — — — — (137) Repurchases of common stock (1,561) — — — — — (1,561) Share-based compensation tax withholdings and other — — (42) — — — (42) Other — — — (3) (1) — (4) Net cash provided by (used in) financing activities — 143 (14) (742) (177) — (790) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (14) — (14) Net increase (decrease) in cash, restricted cash and cash equivalents — — (26) 43 13 — 30 Cash, restricted cash and cash equivalents, beginning of period — — 63 28 579 — 670 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 37 $ 71 $ 592 $ — $ 700 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Leases | Leases We determine if a contract is or contains a lease at the inception of the contract, and we classify that lease as a finance lease if it meets certain criteria or as an operating lease when it does not. We reassess if a contract is or contains a leasing arrangement upon modification of the contract. For a contract, in which we are a lessee, that contains fixed payments for both lease and non-lease components, we have elected to account for the components as a single lease component, as permitted. At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a right-of-use ("ROU") asset representing our right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Our incremental borrowing rate is estimated on a portfolio basis and incorporates lease term, currency risk, credit risk and an adjustment for collateral. Upon adoption of ASU 2016-02, we elected to use the remaining lease term as of January 1, 2019 in our estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, we use the discount rate as of the commencement date of the lease, incorporating the entire lease term. Additionally, we elected not to recognize leases with lease terms of 12 months or less at the commencement date in our consolidated balance sheets. Current maturities and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current maturities and long-term portions of finance lease liabilities are classified as current maturities of long-term debt and long-term debt, respectively, in our consolidated balance sheets. The ROU asset is measured at the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by us and lease incentives. We evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, we record an impairment loss in our consolidated statements of operations. ROU assets of operating leases are classified as operating lease right-of-use assets and ROU assets of finance leases are classified as property and equipment, net in our consolidated balance sheets. Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, which, for our hotels, are generally based on a percentage of the underlying asset's revenues or profits, or are dependent on changes in an index; or (iii) lease payments equal to the greater of the fixed or variable lease payments. In addition, during the term of our hotel leases, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel property. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term, and lease expense related to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statements of operations. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in our consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statements of operations. |
New Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15 ("ASU 2018-15"), Intangibles – Goodwill and Other – Internal-use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns guidance for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with guidance for capitalizing implementation costs to develop or obtain internal-use software. Capitalized implementation costs will be amortized over the term of the arrangement and presented in the same line item in the statement of operations as the fees associated with the service contract. We elected, as permitted by the standard, to early adopt ASU 2018-15 on a prospective basis as of January 1, 2019. The adoption did not have a material effect on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 , which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position of lessees as ROU assets and lease liabilities, with certain practical expedients available. Subsequent to ASU 2016-02, the FASB issued related ASUs, including ASU No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements, which provides for another transition method in addition to the modified retrospective approach required by ASU 2016-02. This option allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative adjustment to the opening balance of retained earnings in the period of adoption. As described above, we adopted ASU 2016-02 on January 1, 2019 and applied the package of practical expedients included therein, as well as utilized the transition method included in ASU 2018-11. By applying ASU 2016-02 at the adoption date, as opposed to at the beginning of the earliest period presented, the presentation of financial information for periods prior to January 1, 2019 remain unchanged and in accordance with Leases (Topic 840) . On January 1, 2019, we recognized a $256 million cumulative adjustment to accumulated deficit, net of taxes of $81 million related to a decrease to our deferred tax liability, as a result of the impairment of ROU assets that occurred in periods prior to the adoption date. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities | The following table summarizes the activity of our contract liabilities, which are classified as a component of current and long-term deferred revenues, during the nine months ended September 30, 2019: (in millions) Balance as of December 31, 2018 $ 1,060 Cash received in advance and not recognized as revenue (1) 329 Revenue recognized (1) (197) Other (2) (125) Balance as of September 30, 2019 $ 1,067 ____________ (1) Primarily related to Hilton Honors, our guest loyalty program. (2) Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Schedule of Variable Interest Entities | Our condensed consolidated balance sheets included the assets and liabilities of the VIEs that we consolidated as of the respective periods, which primarily comprised the following: September 30, December 31, 2019 2018 (in millions) Cash and cash equivalents $ 81 $ 71 Property and equipment, net 71 68 Deferred income tax assets 50 53 Other non-current assets 61 58 Accounts payable, accrued expenses and other 59 41 Long-term debt (1) 200 205 Other long-term liabilities 15 15 ____________ (1) Includes finance lease liabilities of $182 million and $187 million as of September 30, 2019 and December 31, 2018, respectively. |
Amortizing Intangible Assets (T
Amortizing Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortizing Intangible Assets | Amortizing intangible assets were as follows: September 30, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,226 $ (1,997) $ 229 Contract acquisition costs 573 (114) 459 Development commissions and other 124 (18) 106 $ 2,923 $ (2,129) $ 794 Other intangible assets: Leases (1) $ 279 $ (166) $ 113 Capitalized software costs 583 (377) 206 Hilton Honors (1) 336 (251) 85 Other (1) 34 (34) — $ 1,232 $ (828) $ 404 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,228 $ (1,873) $ 355 Contract acquisition costs 525 (101) 424 Development commissions and other 108 (15) 93 $ 2,861 $ (1,989) $ 872 Other intangible assets: Leases (1) $ 288 $ (161) $ 127 Capitalized software costs 503 (321) 182 Hilton Honors (1) 338 (236) 102 Other (1) 38 (34) 4 $ 1,167 $ (752) $ 415 ____________ (1) Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (formerly known as The Blackstone Group L.P.) (the "Merger"). |
Amortization of Amortizing Intangible Assets | Amortization of our amortizing intangible assets was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Recognized in depreciation and amortization expense (1) $ 71 $ 67 $ 212 $ 202 Recognized as a reduction of franchise and licensing fees and base and other management fees 7 6 21 20 ____________ (1) Includes amortization expense of $50 million for the three months ended September 30, 2019 and 2018, and $152 million and $153 million for the nine months ended September 30, 2019 and 2018, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger. |
Schedule of Future Amortization Expense of Intangible Assets | We estimate future amortization of our amortizing intangible assets as of September 30, 2019 to be as follows: Recognized in Depreciation and Amortization Expense Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees Year (in millions) 2019 (remaining) $ 73 $ 7 2020 264 27 2021 115 26 2022 93 24 2023 50 23 Thereafter 144 352 $ 739 $ 459 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of September 30, 2019, were as follows: September 30, December 31, 2019 2018 (in millions) Senior secured term loan facility with a rate of 3.77%, due 2026 $ 2,619 $ 3,119 Senior notes with a rate of 4.250%, due 2024 1,000 1,000 Senior notes with a rate of 4.625%, due 2025 900 900 Senior notes with a rate of 5.125%, due 2026 1,500 1,500 Senior notes with a rate of 4.875%, due 2027 600 600 Senior notes with a rate of 4.875%, due 2030 1,000 — Finance lease liabilities with a weighted average rate of 5.77%, due 2019 to 2030 255 225 Other debt with a rate of 3.08% due 2026 17 17 7,891 7,361 Less: unamortized deferred financing costs and discount (86) (79) Less: current maturities of long-term debt (1) (38) (16) $ 7,767 $ 7,266 ____________ (1) Represents current maturities of finance lease liabilities. |
Debt Maturities | The contractual maturities of our long-term debt as of September 30, 2019 were as follows: Year (in millions) 2019 (remaining) $ 10 2020 37 2021 30 2022 21 2023 20 Thereafter 7,773 $ 7,891 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below; the fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of September 30, 2019 and December 31, 2018: September 30, 2019 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 174 $ — $ 174 $ — Restricted cash equivalents 33 — 33 — Liabilities: Long-term debt (1) 7,533 5,217 — 2,639 Interest rate swaps 45 — 45 — December 31, 2018 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 87 $ — $ 87 $ — Restricted cash equivalents 18 — 18 — Interest rate swaps 16 — 16 — Liabilities: Long-term debt (1) 7,040 3,809 — 3,039 ____________ (1) The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases as of September 30, 2019 was as follows: (dollars Operating leases: Operating lease right-of-use assets $ 839 Accounts payable, accrued expenses and other 128 Operating lease liabilities 1,004 Finance leases: Property and equipment, net $ 57 Current maturities of long-term debt 38 Long-term debt 217 Weighted average remaining lease term: Operating leases 12.9 years Finance leases 8.7 years Weighted average discount rate: Operating leases 3.75 % Finance leases 5.77 % |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in millions) Operating lease expense for fixed payments $ 35 $ 108 Finance lease expense: Amortization of ROU assets 7 23 Interest on lease liabilities 3 10 Variable lease expense (1) 41 123 ____________ (1) Includes amounts related to operating leases and interest payments on finance leases. |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the nine months ended September 30, 2019 was as follows: (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 130 Financing cash flows from finance leases 32 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 21 Finance leases 59 |
Schedule of Future Minimum Lease Payments | Our future minimum lease payments as of September 30, 2019 were as follows: Operating Finance Year (in millions) 2019 (remaining) $ 43 $ 14 2020 170 51 2021 160 42 2022 133 32 2023 118 30 Thereafter 846 164 Total minimum lease payments 1,470 333 Less: imputed interest (338) (78) Total lease liabilities $ 1,132 $ 255 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Options Valuation Assumptions | The weighted average grant date fair value per share of the options granted during the nine months ended September 30, 2019 was $21.08, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility (1) 23.51 % Dividend yield (2) 0.81 % Risk-free rate (3) 2.47 % Expected term (in years) (4) 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price. (2) Estimated based on the quarterly dividend and the three-month average stock price at the date of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share ("EPS"): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions, except per share amounts) Basic EPS: Numerator: Net income attributable to Hilton stockholders $ 288 $ 162 $ 706 $ 540 Denominator: Weighted average shares outstanding 285 297 289 305 Basic EPS $ 1.01 $ 0.55 $ 2.44 $ 1.77 Diluted EPS: Numerator: Net income attributable to Hilton stockholders $ 288 $ 162 $ 706 $ 540 Denominator: Weighted average shares outstanding 288 300 292 307 Diluted EPS $ 1.00 $ 0.54 $ 2.42 $ 1.76 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity (Deficit) | The following tables present the changes in the components of stockholders' equity (deficit) for the three and nine months ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of June 30, 2019 288 $ 3 $ (3,304) $ 10,419 $ (6,342) $ (806) $ 7 $ (23) Net income — — — — 288 — 2 290 Other comprehensive loss — — — — — (42) — (42) Dividends — — — — (43) — — (43) Repurchases of common stock (5) — (422) — — — — (422) Share-based compensation — — — 41 — — — 41 Balance as of September 30, 2019 283 $ 3 $ (3,726) $ 10,460 $ (6,097) $ (848) $ 9 $ (199) Three Months Ended September 30, 2018 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of June 30, 2018 298 $ 3 $ (2,330) $ 10,321 $ (6,697) $ (742) $ 5 $ 560 Net income — — — — 162 — 2 164 Other comprehensive loss — — — — — (4) — (4) Dividends — — — — (45) — — (45) Repurchases of common stock (1) — (122) — — — — (122) Share-based compensation — — — 31 — — — 31 Acquisition of noncontrolling interest — — — (3) — — — (3) Distributions — — — — — — (1) (1) Balance as of September 30, 2018 297 $ 3 $ (2,452) $ 10,349 $ (6,580) $ (746) $ 6 $ 580 Nine Months Ended September 30, 2019 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of December 31, 2018 295 $ 3 $ (2,625) $ 10,372 $ (6,417) $ (782) $ 7 $ 558 Net income — — — — 706 — 4 710 Other comprehensive loss — — — — — (66) — (66) Dividends — — — — (130) — — (130) Repurchases of common stock (13) — (1,101) — — — — (1,101) Share-based compensation 1 — — 88 — — — 88 Cumulative effect of the adoption of ASU 2016-02 — — — — (256) — — (256) Deconsolidation of a VIE — — — — — — (2) (2) Balance as of September 30, 2019 283 $ 3 $ (3,726) $ 10,460 $ (6,097) $ (848) $ 9 $ (199) Nine Months Ended September 30, 2018 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of December 31, 2017 317 $ 3 $ (891) $ 10,298 $ (6,981) $ (741) $ 3 $ 1,691 Net income — — — — 540 — 4 544 Other comprehensive loss — — — — — (5) — (5) Dividends — — — — (139) — — (139) Repurchases of common stock (21) — (1,561) — — — — (1,561) Share-based compensation 1 — — 54 — — — 54 Acquisition of noncontrolling interest — — — (3) — — — (3) Distributions — — — — — — (1) (1) Balance as of September 30, 2018 297 $ 3 $ (2,452) $ 10,349 $ (6,580) $ (746) $ 6 $ 580 |
Schedule of Accumulated Other Comprehensive Loss | The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2018 $ (545) $ (260) $ 23 $ (782) Other comprehensive loss before reclassifications (24) (1) (40) (65) Amounts reclassified from accumulated other comprehensive loss 1 6 (8) (1) Net current period other comprehensive income (loss) (23) 5 (48) (66) Balance as of September 30, 2019 $ (568) $ (255) $ (25) $ (848) Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2017 $ (513) $ (229) $ 1 $ (741) Other comprehensive income (loss) before reclassifications (56) (2) 41 (17) Amounts reclassified from accumulated other comprehensive loss — 6 6 12 Net current period other comprehensive income (loss) (56) 4 47 (5) Balance as of September 30, 2018 $ (569) $ (225) $ 48 $ (746) ____________ (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Reclassification out of Accumulated Other Comprehensive Loss | The following table presents additional information about reclassifications out of accumulated other comprehensive loss; amounts in parentheses indicate losses in our condensed consolidated statements of operations: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in millions) Currency translation adjustment: Liquidation of investments in foreign entities (1) $ — $ (1) Total currency translation adjustment reclassifications for the period, net of taxes — (1) Pension liability adjustment: Amortization of prior service cost (2) (1) (3) Amortization of net loss (2) (2) (5) Tax benefit (3) 1 2 Total pension liability adjustment reclassifications for the period, net of taxes (2) (6) Cash flow hedge adjustment: Interest rate swaps (4) 2 8 Forward contracts (5) 2 2 Tax expense (3) (1) (2) Total cash flow hedge adjustment reclassifications for the period, net of taxes 3 8 Total reclassifications for the period, net of taxes $ 1 $ 1 ____________ (1) Includes a gain on the related net investment hedge for one of the foreign entities. Reclassified to gain (loss) on foreign currency transactions in our condensed consolidated statements of operations. The related tax benefit reclassified to income tax expense in our condensed consolidated statements of operations was less than $1 million. (2) Reclassified to other non-operating income (loss), net in our condensed consolidated statements of operations. (3) Reclassified to income tax expense in our condensed consolidated statements of operations. (4) Reclassified to interest expense in our condensed consolidated statements of operations. (5) Reclassified to franchise and licensing fees and base and other management fees in our condensed consolidated statements of operations. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segment Amounts to Consolidated Amounts | The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Franchise and licensing fees $ 447 $ 409 $ 1,277 $ 1,147 Base and other management fees (1) 95 95 293 286 Incentive management fees 54 57 167 171 Management and franchise 596 561 1,737 1,604 Ownership 361 373 1,060 1,099 Segment revenues 957 934 2,797 2,703 Amortization of contract acquisition costs (7) (6) (21) (20) Other revenues 23 27 75 72 Direct reimbursements from managed and franchised properties (2) 770 710 2,334 2,139 Indirect reimbursements from managed and franchised properties (2) 664 599 1,929 1,754 Intersegment fees elimination (1) (12) (11) (31) (30) Total revenues $ 2,395 $ 2,253 $ 7,083 $ 6,618 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations. |
Reconciliation of Segment Operating Income to Income Before Income Taxes | The following table presents operating income for our reportable segments, reconciled to consolidated income before income taxes: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in millions) Management and franchise (1) $ 596 $ 561 $ 1,737 $ 1,604 Ownership (1) 39 31 87 66 Segment operating income 635 592 1,824 1,670 Amortization of contract acquisition costs (7) (6) (21) (20) Other revenues, less other expenses 12 17 29 36 Net other expenses from managed and franchised properties (9) (28) (21) (46) Depreciation and amortization (86) (81) (256) (242) General and administrative (107) (109) (327) (328) Gain on sale of assets, net 81 — 81 — Operating income 519 385 1,309 1,070 Interest expense (105) (99) (304) (277) Gain (loss) on foreign currency transactions 7 (6) 4 (7) Other non-operating income (loss), net — 13 (8) 26 Income before income taxes $ 421 $ 293 $ 1,001 $ 812 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. |
Schedule of Assets by Segment | The following table presents total assets for our reportable segments, reconciled to consolidated amounts: September 30, December 31, 2019 2018 (in millions) Management and franchise $ 11,345 $ 11,362 Ownership 1,627 927 Corporate and other 2,095 1,706 $ 15,067 $ 13,995 |
Schedule of Capital Expenditures by Segment | The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts: Nine Months Ended September 30, 2019 2018 (in millions) Ownership $ 31 $ 34 Corporate and other 35 17 $ 66 $ 51 |
Condensed Consolidating Guara_2
Condensed Consolidating Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |
Condensed Balance Sheet | September 30, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 17 $ 26 $ 676 $ — $ 719 Restricted cash and cash equivalents — — 34 23 33 — 90 Accounts receivable, net — — 13 850 332 (2) 1,193 Intercompany receivables — — — — 39 (39) — Prepaid expenses — — 26 37 57 (5) 115 Other — 3 1 56 102 (24) 138 Total current assets — 3 91 992 1,239 (70) 2,255 Intangibles and Other Assets: Investments in subsidiaries (187) 3,948 7,709 (187) — (11,283) — Goodwill — — — 3,824 1,313 — 5,137 Brands — — — 4,404 460 — 4,864 Management and franchise contracts, net — — 1 464 329 — 794 Other intangible assets, net — — — 290 114 — 404 Operating lease right-of-use assets — — 34 9 796 — 839 Property and equipment, net — — 60 68 252 — 380 Deferred income tax assets 3 11 85 — 146 (99) 146 Other — 11 31 37 169 — 248 Total intangibles and other assets (184) 3,970 7,920 8,909 3,579 (11,382) 12,812 TOTAL ASSETS $ (184) $ 3,973 $ 8,011 $ 9,901 $ 4,818 $ (11,452) $ 15,067 LIABILITIES AND EQUITY (DEFICIT) Current Liabilities: Accounts payable, accrued expenses and other $ 24 $ 37 $ 264 $ 711 $ 770 $ (22) $ 1,784 Current maturities of long-term debt — — 20 — 18 — 38 Current portion of deferred revenues — — 38 241 20 (9) 290 Intercompany payables — — 39 — — (39) — Current portion of liability for guest loyalty program — — — 788 — — 788 Total current liabilities 24 37 361 1,740 808 (70) 2,900 Long-term debt — 4,078 3,474 — 215 — 7,767 Operating lease liabilities — — 39 7 958 — 1,004 Deferred revenues — — — 764 70 — 834 Deferred income tax liabilities — — — 957 15 (99) 873 Liability for guest loyalty program — — — 1,004 — — 1,004 Other — 45 189 96 554 — 884 Total liabilities 24 4,160 4,063 4,568 2,620 (169) 15,266 Equity (Deficit): Total Hilton stockholders' equity (deficit) (208) (187) 3,948 5,333 2,189 (11,283) (208) Noncontrolling interests — — — — 9 — 9 Total equity (deficit) (208) (187) 3,948 5,333 2,198 (11,283) (199) TOTAL LIABILITIES AND EQUITY (DEFICIT) $ (184) $ 3,973 $ 8,011 $ 9,901 $ 4,818 $ (11,452) $ 15,067 December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 17 $ 383 $ — $ 403 Restricted cash and cash equivalents — — 34 15 32 — 81 Accounts receivable, net — — 10 735 405 — 1,150 Intercompany receivables — — — — 40 (40) — Prepaid expenses — — 52 37 80 (9) 160 Other — 1 1 36 154 (3) 189 Total current assets — 1 100 840 1,094 (52) 1,983 Intangibles and Other Assets: Investments in subsidiaries 557 5,131 7,930 557 — (14,175) — Goodwill — — — 3,824 1,336 — 5,160 Brands — — — 4,404 465 — 4,869 Management and franchise contracts, net — — — 556 316 — 872 Other intangible assets, net — — — 287 128 — 415 Property and equipment, net — — 27 65 275 — 367 Deferred income tax assets 4 — 94 — 90 (98) 90 Other — 23 33 22 161 — 239 Total intangibles and other assets 561 5,154 8,084 9,715 2,771 (14,273) 12,012 TOTAL ASSETS $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325) $ 13,995 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 10 $ 19 $ 229 $ 529 $ 765 $ (3) $ 1,549 Current maturities of long-term debt — — — — 16 — 16 Current portion of deferred revenues — — 106 239 14 (9) 350 Intercompany payables — — 40 — — (40) — Current portion of liability for guest loyalty program — — — 700 — — 700 Total current liabilities 10 19 375 1,468 795 (52) 2,615 Long-term debt — 4,573 2,467 — 226 — 7,266 Deferred revenues — — — 762 64 — 826 Deferred income tax liabilities — 6 — 962 28 (98) 898 Liability for guest loyalty program — — — 969 — — 969 Other — — 211 93 559 — 863 Total liabilities 10 4,598 3,053 4,254 1,672 (150) 13,437 Equity: Total Hilton stockholders' equity 551 557 5,131 6,301 2,186 (14,175) 551 Noncontrolling interests — — — — 7 — 7 Total equity 551 557 5,131 6,301 2,193 (14,175) 558 TOTAL LIABILITIES AND EQUITY $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325) $ 13,995 |
Condensed Statement of Income and Comprehensive Income | Three Months Ended September 30, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 68 $ 338 $ 41 $ (4) $ 443 Base and other management fees — — 1 48 31 — 80 Incentive management fees — — — 16 38 — 54 Owned and leased hotels — — — — 361 — 361 Other revenues — — — 20 3 — 23 — — 69 422 474 (4) 961 Other revenues from managed and franchised properties — — 79 1,195 160 — 1,434 Total revenues — — 148 1,617 634 (4) 2,395 Expenses Owned and leased hotels — — — — 310 — 310 Depreciation and amortization — — 2 63 21 — 86 General and administrative — — 88 — 28 (9) 107 Other expenses — — 1 — 5 5 11 — — 91 63 364 (4) 514 Other expenses from managed and franchised properties — — 85 1,200 158 — 1,443 Total expenses — — 176 1,263 522 (4) 1,957 Gain on sale of assets, net — — — — 81 — 81 Operating income (loss) — — (28) 354 193 — 519 Interest expense — (45) (49) — (11) — (105) Gain (loss) on foreign currency transactions — — 4 (43) 46 — 7 Other non-operating income (loss), net — (2) — (3) 5 — — Income (loss) before income taxes and equity in earnings from subsidiaries — (47) (73) 308 233 — 421 Income tax benefit (expense) — 11 15 (79) (78) — (131) Income (loss) before equity in earnings from subsidiaries — (36) (58) 229 155 — 290 Equity in earnings from subsidiaries 288 324 382 288 — (1,282) — Net income 288 288 324 517 155 (1,282) 290 Net income attributable to noncontrolling interests — — — — (2) — (2) Net income attributable to Hilton stockholders $ 288 $ 288 $ 324 $ 517 $ 153 $ (1,282) $ 288 Comprehensive income $ 246 $ 279 $ 324 $ 516 $ 123 $ (1,240) $ 248 Comprehensive income attributable to noncontrolling interests — — — — (2) — (2) Comprehensive income attributable to Hilton stockholders $ 246 $ 279 $ 324 $ 516 $ 121 $ (1,240) $ 246 Three Months Ended September 30, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 57 $ 316 $ 39 $ (5) $ 407 Base and other management fees — — — 49 31 — 80 Incentive management fees — — — 15 42 — 57 Owned and leased hotels — — — — 373 — 373 Other revenues — — 1 19 3 4 27 — — 58 399 488 (1) 944 Other revenues from managed and franchised properties — — 70 1,076 163 — 1,309 Total revenues — — 128 1,475 651 (1) 2,253 Expenses Owned and leased hotels — — — — 331 — 331 Depreciation and amortization — — 2 58 21 — 81 General and administrative — — 81 — 30 (2) 109 Other expenses — — 1 2 6 1 10 — — 84 60 388 (1) 531 Other expenses from managed and franchised properties — — 70 1,106 161 — 1,337 Total expenses — — 154 1,166 549 (1) 1,868 Operating income (loss) — — (26) 309 102 — 385 Interest expense — (54) (34) — (8) (3) (99) Gain (loss) on foreign currency transactions — — — 1 (7) — (6) Other non-operating income, net — — 1 4 5 3 13 Income (loss) before income taxes and equity in earnings from subsidiaries — (54) (59) 314 92 — 293 Income tax benefit (expense) — 13 8 (70) (80) — (129) Income (loss) before equity in earnings from subsidiaries — (41) (51) 244 12 — 164 Equity in earnings from subsidiaries 162 203 254 162 — (781) — Net income 162 162 203 406 12 (781) 164 Net income attributable to noncontrolling interests — — — — (2) — (2) Net income attributable to Hilton stockholders $ 162 $ 162 $ 203 $ 406 $ 10 $ (781) $ 162 Comprehensive income $ 158 $ 168 $ 204 $ 405 $ 2 $ (777) $ 160 Comprehensive income attributable to noncontrolling interests — — — — (2) — (2) Comprehensive income attributable to Hilton stockholders $ 158 $ 168 $ 204 $ 405 $ — $ (777) $ 158 Nine Months Ended September 30, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 198 $ 970 $ 114 $ (13) $ 1,269 Base and other management fees — — 1 157 91 — 249 Incentive management fees — — — 60 107 — 167 Owned and leased hotels — — — — 1,060 — 1,060 Other revenues — — 1 63 11 — 75 — — 200 1,250 1,383 (13) 2,820 Other revenues from managed and franchised properties — — 235 3,581 447 — 4,263 Total revenues — — 435 4,831 1,830 (13) 7,083 Expenses Owned and leased hotels — — — — 942 — 942 Depreciation and amortization — — 5 188 63 — 256 General and administrative — — 259 — 90 (22) 327 Other expenses — — 5 10 22 9 46 — — 269 198 1,117 (13) 1,571 Other expenses from managed and franchised properties — — 244 3,602 438 — 4,284 Total expenses — — 513 3,800 1,555 (13) 5,855 Gain on sale of assets, net — — — — 81 — 81 Operating income (loss) — — (78) 1,031 356 — 1,309 Interest expense — (148) (117) — (39) — (304) Gain (loss) on foreign currency transactions — — 5 (70) 69 — 4 Other non-operating income (loss), net — (11) — (8) 11 — (8) Income (loss) before income taxes and equity in earnings from subsidiaries — (159) (190) 953 397 — 1,001 Income tax benefit (expense) — 38 42 (238) (133) — (291) Income (loss) before equity in earnings from subsidiaries — (121) (148) 715 264 — 710 Equity in earnings from subsidiaries 706 827 975 706 — (3,214) — Net income 706 706 827 1,421 264 (3,214) 710 Net income attributable to noncontrolling interests — — — — (4) — (4) Net income attributable to Hilton stockholders $ 706 $ 706 $ 827 $ 1,421 $ 260 $ (3,214) $ 706 Comprehensive income $ 640 $ 657 $ 830 $ 1,420 $ 245 $ (3,148) $ 644 Comprehensive income attributable to noncontrolling interests — — — — (4) — (4) Comprehensive income attributable to Hilton stockholders $ 640 $ 657 $ 830 $ 1,420 $ 241 $ (3,148) $ 640 Nine Months Ended September 30, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 151 $ 900 $ 104 $ (13) $ 1,142 Base and other management fees — — 1 155 85 — 241 Incentive management fees — — — 58 113 — 171 Owned and leased hotels — — — — 1,099 — 1,099 Other revenues — — 4 60 8 — 72 — — 156 1,173 1,409 (13) 2,725 Other revenues from managed and franchised properties — — 176 3,256 461 — 3,893 Total revenues — — 332 4,429 1,870 (13) 6,618 Expenses Owned and leased hotels — — — — 1,003 — 1,003 Depreciation and amortization — — 5 176 61 — 242 General and administrative — — 237 — 97 (6) 328 Other expenses — — 5 17 21 (7) 36 — — 247 193 1,182 (13) 1,609 Other expenses from managed and franchised properties — — 178 3,304 457 — 3,939 Total expenses — — 425 3,497 1,639 (13) 5,548 Operating income (loss) — — (93) 932 231 — 1,070 Interest expense — (172) (78) — (27) — (277) Gain (loss) on foreign currency transactions — — 3 (80) 70 — (7) Other non-operating income (loss), net — (7) 5 16 12 — 26 Income (loss) before income taxes and equity in earnings from subsidiaries — (179) (163) 868 286 — 812 Income tax benefit (expense) — 44 35 (204) (143) — (268) Income (loss) before equity in earnings from subsidiaries — (135) (128) 664 143 — 544 Equity in earnings from subsidiaries 540 675 803 540 — (2,558) — Net income 540 540 675 1,204 143 (2,558) 544 Net income attributable to noncontrolling interests — — — — (4) — (4) Net income attributable to Hilton stockholders $ 540 $ 540 $ 675 $ 1,204 $ 139 $ (2,558) $ 540 Comprehensive income $ 535 $ 585 $ 677 $ 1,203 $ 92 $ (2,553) $ 539 Comprehensive income attributable to noncontrolling interests — — — — (4) — (4) Comprehensive income attributable to Hilton stockholders $ 535 $ 585 $ 677 $ 1,203 $ 88 $ (2,553) $ 535 |
Condensed Statement of Cash Flows | Nine Months Ended September 30, 2019 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (122) $ (17) $ 1,157 $ 229 $ (65) $ 1,182 Investing Activities: Capital expenditures for property and equipment — — (6) (5) (55) — (66) Proceeds from asset disposition — — — — 120 — 120 Capitalized software costs — — — (79) — — (79) Other — — — (18) (4) — (22) Net cash provided by (used in) investing activities — — (6) (102) 61 — (47) Financing Activities: Borrowings — 795 1,000 — — — 1,795 Repayment of debt — (1,295) (20) — (12) — (1,327) Debt issuance costs — (13) (16) — — — (29) Intercompany transfers 1,216 635 (896) (1,038) 83 — — Dividends paid (130) — — — — — (130) Repurchases of common stock (1,086) — — — — — (1,086) Intercompany dividends — — — — (65) 65 — Share-based compensation tax withholdings and other — — (31) — — — (31) Net cash provided by (used in) financing activities — 122 37 (1,038) 6 65 (808) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (2) — (2) Net increase in cash, restricted cash and cash equivalents — — 14 17 294 — 325 Cash, restricted cash and cash equivalents, beginning of period — — 37 32 415 — 484 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 51 $ 49 $ 709 $ — $ 809 Nine Months Ended September 30, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (143) $ (7) $ 808 $ 256 $ — $ 914 Investing Activities: Capital expenditures for property and equipment — — (5) (4) (42) — (51) Payments received on other financing receivables — — — 49 — — 49 Capitalized software costs — — — (62) — — (62) Other — — — (6) (10) — (16) Net cash used in investing activities — — (5) (23) (52) — (80) Financing Activities: Borrowings — 175 1,500 — 1 — 1,676 Repayment of debt — (685) — — (16) — (701) Debt issuance costs — — (21) — — — (21) Intercompany transfers 1,698 653 (1,451) (739) (161) — — Dividends paid (137) — — — — — (137) Repurchases of common stock (1,561) — — — — — (1,561) Share-based compensation tax withholdings and other — — (42) — — — (42) Other — — — (3) (1) — (4) Net cash provided by (used in) financing activities — 143 (14) (742) (177) — (790) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (14) — (14) Net increase (decrease) in cash, restricted cash and cash equivalents — — (26) 43 13 — 30 Cash, restricted cash and cash equivalents, beginning of period — — 63 28 579 — 670 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 37 $ 71 $ 592 $ — $ 700 |
Organization (Details)
Organization (Details) | Sep. 30, 2019CountryHotelRoom |
Organization and Basis of Presentation [Line Items] | |
Number of hotel and resort properties | Hotel | 5,980 |
Number of hotel and resort rooms | Room | 954,855 |
Number of countries and territories | Country | 117 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Additional Information (Details) - Accounting Standards Update 2016-02 [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of the adoption of an ASU | $ (256) | $ 256 |
Tax effect related to the cumulative effect of the adoption of an ASU | $ 81 |
Disposal (Details)
Disposal (Details) ¥ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2019JPY (Â¥) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |||||
Sales price of an asset | $ 122 | ¥ 13,000 | |||
Gain on sale of assets, net | $ 81 | $ 0 | $ 81 | $ 0 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |||
Contract with Customer, Liability [Line Items] | |||||||
Contract liabilities balance | $ 1,067 | $ 1,067 | $ 1,060 | ||||
Cash received in advance and not recognized as revenue | [1] | 329 | |||||
Revenue recognized | $ (62) | $ (33) | (197) | [1] | $ (149) | ||
Other | [2] | $ (125) | |||||
[1] | Primarily related to Hilton Honors, our guest loyalty program. | ||||||
[2] | Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenue from Contract with Customer [Abstract] | |||||
Revenue recognized | $ 62 | $ 33 | $ 197 | [1] | $ 149 |
Loyalty Program Revenues [Member] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 442 | $ 442 | |||
Expected timing of satisfaction of remaining performance obligations | 2 years | 2 years | |||
Application, initiation and licensing fees [Member] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations | $ 625 | $ 625 | |||
[1] | Primarily related to Hilton Honors, our guest loyalty program. |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 719 | $ 403 | |
Property and equipment, net | 380 | 367 | |
Deferred income tax assets | 146 | 90 | |
Other non-current assets | 248 | 239 | |
Accounts payable, accrued expenses and other | 1,784 | 1,549 | |
Other long-term liabilities | 884 | 863 | |
Finance lease liabilities | 255 | ||
Consolidated VIEs [member] | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 81 | 71 | |
Property and equipment, net | 71 | 68 | |
Deferred income tax assets | 50 | 53 | |
Other non-current assets | 61 | 58 | |
Accounts payable, accrued expenses and other | 59 | 41 | |
Long-term debt | [1] | 200 | 205 |
Other long-term liabilities | 15 | 15 | |
Finance lease liabilities | $ 182 | $ 187 | |
[1] | Includes finance lease liabilities of $182 million and $187 million as of September 30, 2019 and December 31, 2018, respectively. |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($)Hotel | Jun. 01, 2019USD ($) | Dec. 31, 2018USD ($)Hotel |
Variable Interest Entity [Line Items] | |||
Deconsolidated assets of a subsidiary | $ 15,067 | $ 13,995 | |
Deconsolidated liabilities of a subsidiary | $ 15,266 | $ 13,437 | |
Leased hotel VIEs [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | Hotel | 2 | 2 | |
Management company [member] | |||
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | Hotel | 1 | ||
Deconsolidated assets of a subsidiary | $ 7 | ||
Deconsolidated liabilities of a subsidiary | $ 3 |
Amortizing Intangible Assets -
Amortizing Intangible Assets - Schedule of Finite Lived Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | $ 2,923 | $ 2,861 | |
Other intangible assets, gross | 1,232 | 1,167 | |
Management and franchise contracts, accumulated amortization | (2,129) | (1,989) | |
Other intangible assets, accumulated amortization | (828) | (752) | |
Management and franchise contracts, net | 794 | 872 | |
Other intangible assets, net | 404 | 415 | |
Management and franchise contracts recorded at merger [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | [1] | 2,226 | 2,228 |
Management and franchise contracts, accumulated amortization | [1] | (1,997) | (1,873) |
Management and franchise contracts, net | [1] | 229 | 355 |
Contract acquisition costs [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | 573 | 525 | |
Management and franchise contracts, accumulated amortization | (114) | (101) | |
Management and franchise contracts, net | 459 | 424 | |
Development commissions and other [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | 124 | 108 | |
Management and franchise contracts, accumulated amortization | (18) | (15) | |
Management and franchise contracts, net | 106 | 93 | |
Leases [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | [1] | 279 | 288 |
Other intangible assets, accumulated amortization | [1] | (166) | (161) |
Other intangible assets, net | [1] | 113 | 127 |
Capitalized software costs [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | 583 | 503 | |
Other intangible assets, accumulated amortization | (377) | (321) | |
Other intangible assets, net | 206 | 182 | |
Hilton Honors [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | [1] | 336 | 338 |
Other intangible assets, accumulated amortization | [1] | (251) | (236) |
Other intangible assets, net | [1] | 85 | 102 |
Other [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | [1] | 34 | 38 |
Other intangible assets, accumulated amortization | [1] | (34) | (34) |
Other intangible assets, net | [1] | $ 0 | $ 4 |
[1] | Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (formerly known as The Blackstone Group L.P.) (the "Merger"). |
Amortizing Intangible Assets _2
Amortizing Intangible Assets - Amortization of Amortizing Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Depreciation and amortization [member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | [1] | $ 71 | $ 67 | $ 212 | $ 202 |
Depreciation and amortization [member] | Intangible assets recorded at fair value at the time of the Merger [member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | 50 | 50 | 152 | 153 | |
Franchise and licensing fees and base and other management fee revenues [member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 7 | $ 6 | $ 21 | $ 20 | |
[1] | Includes amortization expense of $50 million for the three months ended September 30, 2019 and 2018, and $152 million and $153 million for the nine months ended September 30, 2019 and 2018, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger. |
Amortizing Intangible Assets _3
Amortizing Intangible Assets - Schedule of Future Amortization (Details) $ in Millions | Sep. 30, 2019USD ($) |
Depreciation and amortization [member] | |
Finite-Lived Intangible Assets [Line Items] | |
2019 (remaining) | $ 73 |
2020 | 264 |
2021 | 115 |
2022 | 93 |
2023 | 50 |
Thereafter | 144 |
Amortizing intangible assets, net | 739 |
Franchise and licensing fees and base and other management fee revenues [member] | |
Finite-Lived Intangible Assets [Line Items] | |
2019 (remaining) | 7 |
2020 | 27 |
2021 | 26 |
2022 | 24 |
2023 | 23 |
Thereafter | 352 |
Amortizing intangible assets, net | $ 459 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 7,891 | $ 7,361 | |
Unamortized deferred financing costs and discount | (86) | (79) | |
Current maturities of long-term debt | [1] | (38) | (16) |
Long-term debt | 7,767 | 7,266 | |
Senior secured term loan facility due 2026 [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 2,619 | 3,119 | |
Debt instrument, interest rate, stated percentage | 3.77% | ||
Senior notes due 2024 [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,000 | 1,000 | |
Debt instrument, interest rate, stated percentage | 4.25% | ||
Senior notes due 2025 [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 900 | 900 | |
Debt instrument, interest rate, stated percentage | 4.625% | ||
Senior notes due 2026 [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,500 | 1,500 | |
Debt instrument, interest rate, stated percentage | 5.125% | ||
Senior notes due 2027 [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 600 | 600 | |
Debt instrument, interest rate, stated percentage | 4.875% | ||
Senior notes due 2030 [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,000 | 0 | |
Debt instrument, face amount | $ 1,000 | ||
Debt instrument, interest rate, stated percentage | 4.875% | ||
Finance lease liabilities [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 255 | 225 | |
Debt instrument, weighted average interest rate | 5.77% | ||
Other debt [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 17 | $ 17 | |
Debt instrument, weighted average interest rate | 3.08% | ||
[1] | Represents current maturities of finance lease liabilities. |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 7,891 | $ 7,361 |
Revolving credit facility [member] | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | 7 | |
Revolving credit facility, maximum borrowing capacity | 1,750 | |
Revolving credit facility, remaining borrowing capacity | $ 1,690 | |
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | |
Repayments of debt | $ 225 | |
Senior secured term loan facility due 2026 [member] | ||
Debt Instrument [Line Items] | ||
Debt discount | 0.25% | |
Debt instrument, interest rate, stated percentage | 3.77% | |
Long-term debt, gross | $ 2,619 | 3,119 |
Repayments of debt | 500 | |
Fees and unamortized deferred financing costs and discount | $ 10 | |
Senior notes due 2024 [member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.25% | |
Long-term debt, gross | $ 1,000 | 1,000 |
Senior notes due 2025 [member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.625% | |
Long-term debt, gross | $ 900 | 900 |
Senior notes due 2026 [member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.125% | |
Long-term debt, gross | $ 1,500 | 1,500 |
Senior notes due 2027 [member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.875% | |
Long-term debt, gross | $ 600 | 600 |
Senior notes due 2030 [member] | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 15 | |
Debt instrument, interest rate, stated percentage | 4.875% | |
Long-term debt, gross | $ 1,000 | $ 0 |
Letter of Credit [Member] | Revolving credit facility [member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility, maximum borrowing capacity | 250 | |
Letters of credit outstanding | $ 59 |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2019 (remaining) | $ 10 | |
2020 | 37 | |
2021 | 30 | |
2022 | 21 | |
2023 | 20 | |
Thereafter | 7,773 | |
Long-term debt, gross | $ 7,891 | $ 7,361 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Level 1 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 5,217 | $ 3,809 |
Level 2 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 174 | 87 | |
Restricted cash equivalents | 33 | 18 | |
Interest rate swaps, assets | 16 | ||
Interest rate swaps, liabilities | 45 | ||
Level 3 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 2,639 | 3,039 |
Carrying value [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 174 | 87 | |
Restricted cash equivalents | 33 | 18 | |
Interest rate swaps, assets | 16 | ||
Long-term debt | [1] | 7,533 | $ 7,040 |
Interest rate swaps, liabilities | $ 45 | ||
[1] | The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt. |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Lessee Disclosure [Abstract] | ||
Property and equipment, net | $ 57 | |
Current maturities of long-term debt | 38 | |
Long-term debt | $ 217 | |
Weighted average remaining lease term, finance leases | 8 years 8 months 12 days | |
Weighted average discount rate, finance leases | 5.77% | |
Operating lease right-of-use assets | $ 839 | $ 0 |
Accounts payable, accrued expenses and other | 128 | |
Operating lease liabilities | $ 1,004 | $ 0 |
Weighted average remaining lease term, operating leases | 12 years 10 months 24 days | |
Weighted average discount rate, operating leases | 3.75% |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | ||
Lessee Disclosure [Abstract] | |||
Operating lease expense for fixed payments | $ 35 | $ 108 | |
Finance lease expense, amortization of ROU assets | 7 | 23 | |
Finance lease expense, interest on lease liabilities | 3 | 10 | |
Variable lease expense | [1] | $ 41 | $ 123 |
[1] | Includes amounts related to operating leases and interest payments on finance leases. |
Leases Components of Lease Ex_2
Leases Components of Lease Expense 2018 (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Lessee Disclosure [Abstract] | |
Operating lease, fixed lease expense | $ 225 |
Operating lease, variable lease expense | $ 142 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information Related to Leases (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee Disclosure [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities: operating cash flows from operating leases | $ 130 |
Cash paid for amounts included in the measurement of lease liabilities: financing cash flows from finance leases | 32 |
ROU assets obtained in exchange for lease liabilities in non-cash transactions: operating leases | 21 |
ROU assets obtained in exchange for lease liabilities in non-cash transactions: finance leases | $ 59 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessee Disclosure [Abstract] | |
Finance leases, 2019 (remaining) | $ 14 |
Finance leases, 2020 | 51 |
Finance leases, 2021 | 42 |
Finance leases, 2022 | 32 |
Finance leases, 2023 | 30 |
Finance leases, thereafter | 164 |
Finance leases, total minimum lease payments | 333 |
Less: amount representing interest, finance leases | (78) |
Finance lease liabilities | 255 |
Operating leases, 2019 (remaining) | 43 |
Operating leases, 2020 | 170 |
Operating leases, 2021 | 160 |
Operating leases, 2022 | 133 |
Operating leases, 2023 | 118 |
Operating leases, thereafter | 846 |
Operating leases, total minimum lease payments | 1,470 |
Less: amount representing interest, operating leases | (338) |
Operating lease liabilities | $ 1,132 |
Leases Additional Information (
Leases Additional Information (Details) | Sep. 30, 2019Hotel |
Lessee Disclosure [Abstract] | |
Hotels under operating leases | 52 |
Hotels under finance leases | 6 |
Number of finance leases that were the liabilities of VIEs | 2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 330 | $ 318 |
Accrual for interest and penalties | 46 | 40 |
Unrecognized tax benefits that would impact effective tax rate | 318 | $ 310 |
Income tax examination, estimate of possible loss | 817 | |
Accrual related to IRS proposed additional tax owed | $ 56 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Employee stock option [member] | 9 Months Ended | |
Sep. 30, 2019Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 23.51% | [1] |
Dividend yield | 0.81% | [2] |
Risk-free rate | 2.47% | [3] |
Expected term (in years) | 6 years | [4] |
[1] | Estimated using historical movement of Hilton's stock price. | |
[2] | Estimated based on the quarterly dividend and the three-month average stock price at the date of grant. | |
[3] | Based on the yields of U.S. Department of Treasury instruments with similar expected lives. | |
[4] | Estimated using the average of the vesting periods and the contractual term of the options. |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 42 | $ 35 | $ 123 | $ 103 |
Unrecognized compensation costs related to unvested awards | $ 153 | $ 153 | ||
Unrecognized compensation costs related to unvested awards, weighted-average period | 1 year 9 months 18 days | |||
Shares of common stock reserved for future issuance, in millions | 14.2 | 14.2 | ||
Restricted stock units (RSUs) [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, in millions | 1 | |||
Weighted average grant date fair value, granted | $ 83.41 | |||
Employee stock option [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Options granted in period, in millions | 0.8 | |||
Options granted in period, weighted average exercise price | $ 83.11 | |||
Options, expiration period | 10 years | |||
Options, grants in period, grant date fair value | $ 21.08 | |||
Exercisable, in millions | 1.5 | 1.5 | ||
Performance shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, in millions | 0.4 | |||
Weighted average grant date fair value, granted | $ 83.11 | |||
EBITDA CAGR [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Terms of performance shares | 50 percent of the awards subject to achievement based on the compound annual growth rate ("CAGR") of the Company's earnings before interest expense, a provision for income taxes and depreciation and amortization ("EBITDA"), adjusted to exclude certain items ("Adjusted EBITDA") | |||
Free cash flow CAGR [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Terms of performance shares | 50 percent of the awards subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR | |||
Minimum [Member] | Performance shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting rights, percentage | 0.00% | |||
Vesting rights, percentage | 0.00% | |||
Maximum [Member] | Performance shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting rights, percentage | 200.00% | |||
Vesting rights, percentage | 200.00% | |||
Target [Member] | Performance shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting rights, percentage | 100.00% | |||
Vesting rights, percentage | 100.00% | |||
Minimum [Member] | Restricted stock units (RSUs) [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Maximum [Member] | Restricted stock units (RSUs) [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic EPS: | ||||
Net income attributable to Hilton stockholders | $ 288 | $ 162 | $ 706 | $ 540 |
Weighted average shares outstanding | 285 | 297 | 289 | 305 |
Basic EPS | $ 1.01 | $ 0.55 | $ 2.44 | $ 1.77 |
Diluted EPS: | ||||
Net income attributable to Hilton stockholders | $ 288 | $ 162 | $ 706 | $ 540 |
Weighted average shares outstanding | 288 | 300 | 292 | 307 |
Diluted EPS | $ 1 | $ 0.54 | $ 2.42 | $ 1.76 |
Antidilutive securities excluded from the computation of EPS | Approximately 1 million | Approximately 1 million | Approximately 1 million | Approximately 1 million |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Schedule of Stockholders' Equity (Deficit) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||||||||
Beginning Balance, shares | 294,815,890 | ||||||||
Beginning Balance | $ (23) | $ 560 | $ 558 | $ 1,691 | |||||
Equity (deficit) attributable to Hilton stockholders | (208) | (208) | $ 551 | ||||||
Equity attributable to noncontrolling interests | (9) | (9) | (7) | ||||||
Net income attributable to Hilton stockholders | 288 | 162 | 706 | 540 | |||||
Net income attributable to noncontrolling interests | 2 | 2 | 4 | 4 | |||||
Net income | 290 | 164 | 710 | 544 | |||||
Other comprehensive loss | (42) | (4) | (66) | (5) | |||||
Dividends | (43) | (45) | (130) | (139) | |||||
Repurchases of common stock | (422) | (122) | (1,101) | (1,561) | |||||
Share-based compensation | $ 41 | 31 | 88 | 54 | |||||
Deconsolidation of a VIE | $ (2) | ||||||||
Ending Balance, shares | 283,310,197 | 283,310,197 | |||||||
Ending Balance | $ (199) | $ 580 | $ (199) | $ 580 | |||||
Accounting Standards Update 2016-02 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Cumulative effect of the adoption of an ASU | $ (256) | $ (256) | $ 256 | ||||||
Common stock [member] | |||||||||
Class of Stock [Line Items] | |||||||||
Beginning Balance, shares | 288,000,000 | 298,000,000 | 295,000,000 | 317,000,000 | |||||
Equity (deficit) attributable to Hilton stockholders | $ 3 | $ 3 | $ 3 | $ 3 | $ 3 | 3 | $ 3 | $ 3 | |
Repurchases of common stock, shares | (5,000,000) | (1,000,000) | (13,000,000) | (21,000,000) | |||||
Share-based compensation, shares | 1,000,000 | 1,000,000 | |||||||
Ending Balance, shares | 283,000,000 | 297,000,000 | 283,000,000 | 297,000,000 | |||||
Treasury stock [member] | |||||||||
Class of Stock [Line Items] | |||||||||
Equity (deficit) attributable to Hilton stockholders | $ (3,726) | $ (2,452) | $ (3,726) | $ (2,452) | (3,304) | (2,625) | (2,330) | (891) | |
Repurchases of common stock | (422) | (122) | (1,561) | ||||||
Additional paid-in capital [member] | |||||||||
Class of Stock [Line Items] | |||||||||
Equity (deficit) attributable to Hilton stockholders | 10,460 | 10,349 | 10,460 | 10,349 | 10,419 | 10,372 | 10,321 | 10,298 | |
Share-based compensation | 41 | 31 | 88 | 54 | |||||
Accumulated deficit [member] | |||||||||
Class of Stock [Line Items] | |||||||||
Equity (deficit) attributable to Hilton stockholders | (6,097) | (6,580) | (6,097) | (6,580) | (6,342) | (6,417) | (6,697) | (6,981) | |
Net income attributable to Hilton stockholders | 288 | 162 | 706 | 540 | |||||
Dividends | (43) | (45) | (130) | (139) | |||||
Accumulated deficit [member] | Accounting Standards Update 2016-02 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Cumulative effect of the adoption of an ASU | (256) | (256) | |||||||
Accumulated other comprehensive loss [member] | |||||||||
Class of Stock [Line Items] | |||||||||
Equity (deficit) attributable to Hilton stockholders | (848) | (746) | (848) | (746) | (806) | (782) | (742) | (741) | |
Other comprehensive loss attributable to Hilton stockholders | (42) | (4) | (66) | (5) | |||||
Noncontrolling interest [member] | |||||||||
Class of Stock [Line Items] | |||||||||
Equity attributable to noncontrolling interests | 9 | $ 6 | 9 | 6 | $ 7 | $ 7 | $ 5 | $ 3 | |
Net income attributable to noncontrolling interests | $ 2 | 4 | $ 4 | ||||||
Deconsolidation of a VIE | $ (2) |
Stockholders' Equity (Deficit_4
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ (782) | ||||
Amounts reclassified from accumulated other comprehensive loss | $ (1) | (1) | |||
Ending balance | (848) | (848) | |||
Currency translation adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | (545) | $ (513) | ||
Other comprehensive income (loss) before reclassifications | [1] | (24) | (56) | ||
Amounts reclassified from accumulated other comprehensive loss | [1] | 1 | 0 | ||
Net current period other comprehensive income (loss) | [1] | (23) | (56) | ||
Ending balance | [1] | (568) | $ (569) | (568) | (569) |
Pension liability adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (260) | (229) | |||
Other comprehensive income (loss) before reclassifications | (1) | (2) | |||
Amounts reclassified from accumulated other comprehensive loss | 6 | 6 | |||
Net current period other comprehensive income (loss) | 5 | 4 | |||
Ending balance | (255) | (225) | (255) | (225) | |
Cash flow hedge adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 23 | 1 | |||
Other comprehensive income (loss) before reclassifications | (40) | 41 | |||
Amounts reclassified from accumulated other comprehensive loss | (8) | 6 | |||
Net current period other comprehensive income (loss) | (48) | 47 | |||
Ending balance | (25) | 48 | (25) | 48 | |
Accumulated other comprehensive loss [member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (782) | (741) | |||
Other comprehensive income (loss) before reclassifications | (65) | (17) | |||
Amounts reclassified from accumulated other comprehensive loss | (1) | 12 | |||
Net current period other comprehensive income (loss) | (42) | (4) | (66) | (5) | |
Ending balance | $ (848) | $ (746) | $ (848) | $ (746) | |
[1] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Stockholders' Equity (Deficit_5
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Reclassifications out of accumulated other comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||
Tax benefit | $ 0 | $ 0 | $ (1) | $ (1) | $ (1) | |
Tax expense | 3 | $ (2) | 16 | (16) | ||
Total reclassifications for the period, net of taxes | 1 | 1 | ||||
Currency translation adjustment | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||
Liquidation of investments in foreign entities | [1] | $ 0 | $ (1) | |||
Tax benefit | less than $1 million | less than $1 million | ||||
Total currency translation adjustment reclassifications for the period, net of taxes | $ 0 | $ (1) | ||||
Total reclassifications for the period, net of taxes | [2] | (1) | 0 | |||
Pension liability adjustment | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||
Amortization of prior service cost | [3] | (1) | (3) | |||
Amortization of net loss | [3] | (2) | (5) | |||
Tax benefit | [4] | 1 | 2 | |||
Total pension liability adjustment reclassifications for the period, net of taxes | (2) | (6) | ||||
Total reclassifications for the period, net of taxes | (6) | (6) | ||||
Cash flow hedge adjustment | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||||
Interest rate swaps | [5] | 2 | 8 | |||
Forward contracts | [6] | 2 | 2 | |||
Tax expense | [4] | (1) | (2) | |||
Total cash flow hedge adjustment reclassifications for the period, net of taxes | $ 3 | 8 | ||||
Total reclassifications for the period, net of taxes | $ 8 | $ (6) | ||||
[1] | Includes a gain on the related net investment hedge for one of the foreign entities. Reclassified to gain (loss) on foreign currency transactions in our condensed consolidated statements of operations. The related tax benefit reclassified to income tax expense in our condensed consolidated statements of operations was less than $1 million. | |||||
[2] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. | |||||
[3] | Reclassified to other non-operating income (loss), net in our condensed consolidated statements of operations. | |||||
[4] | Reclassified to income tax expense in our condensed consolidated statements of operations. | |||||
[5] | Reclassified to interest expense in our condensed consolidated statements of operations. | |||||
[6] | Reclassified to franchise and licensing fees and base and other management fees in our condensed consolidated statements of operations. |
Stockholders' Equity (Deficit_6
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Equity, Class of Treasury Stock [Line Items] | |
Stock repurchase program, remaining authorized repurchase amount | $ 959 |
Amount authorized for stock repurchase program | $ 3,500 |
Business Segments - Hotel Prope
Business Segments - Hotel Properties by Segment (Detail) | 3 Months Ended |
Sep. 30, 2019HotelRoomSegment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | Segment | 2 |
Management and franchise [member] | |
Segment Reporting Information [Line Items] | |
Number of managed hotels | 706 |
Number of franchised hotels | 5,154 |
Number of managed and franchised hotel rooms | Room | 925,458 |
Ownership [member] | |
Segment Reporting Information [Line Items] | |
Number of owned and leased hotel properties | 65 |
Number of owned and leased hotel rooms | Room | 20,481 |
Number of wholly owned and leased hotels | 57 |
Number of non-wholly owned hotels | 1 |
Number of hotels leased by consolidated VIEs | 2 |
Number of hotels owned or leased by unconsolidated affiliates | 5 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenue from Segment Amounts to Consolidated Amounts (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | $ 2,395 | $ 2,253 | $ 7,083 | $ 6,618 | |
Amortization of contract acquisition costs | (7) | (6) | (21) | (20) | |
Franchise and licensing fees in segment revenues [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 447 | 409 | 1,277 | 1,147 | |
Base and other management fees in segment revenues [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | [1] | 95 | 95 | 293 | 286 |
Incentive management fees in segment revenues [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 54 | 57 | 167 | 171 | |
Management and franchise [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 596 | 561 | 1,737 | 1,604 | |
Ownership [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 361 | 373 | 1,060 | 1,099 | |
Segment operating income [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 957 | 934 | 2,797 | 2,703 | |
Intersegment eliminations [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | [1] | (12) | (11) | (31) | (30) |
Other revenues [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | 23 | 27 | 75 | 72 | |
Direct reimbursements from managed and franchised properties [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | [2] | 770 | 710 | 2,334 | 2,139 |
Indirect reimbursements from managed and franchised properties [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Revenues | [2] | $ 664 | $ 599 | $ 1,929 | $ 1,754 |
[1] | Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. | ||||
[2] | Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations. |
Business Segments - Reconcili_2
Business Segments - Reconciliation of Segment Operating Income to Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Amortization of contract acquisition costs | $ (7) | $ (6) | $ (21) | $ (20) | |
Other revenues, less other expenses | 12 | 17 | 29 | 36 | |
Net other expenses from managed and franchised properties | (9) | (28) | (21) | (46) | |
Depreciation and amortization | (86) | (81) | (256) | (242) | |
General and administrative | (107) | (109) | (327) | (328) | |
Gain on sale of assets, net | 81 | 0 | 81 | 0 | |
Operating income | 519 | 385 | 1,309 | 1,070 | |
Interest expense | (105) | (99) | (304) | (277) | |
Gain (loss) on foreign currency transactions | 7 | (6) | 4 | (7) | |
Other non-operating income (loss), net | 0 | 13 | (8) | 26 | |
Income before income taxes | 421 | 293 | 1,001 | 812 | |
Management and franchise [member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Operating income | [1] | 596 | 561 | 1,737 | 1,604 |
Ownership [member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Operating income | [1] | 39 | 31 | 87 | 66 |
Segment operating income [member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Operating income | $ 635 | $ 592 | $ 1,824 | $ 1,670 | |
[1] | Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. |
Business Segments - Schedule of
Business Segments - Schedule of Assets by Segment (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 15,067 | $ 13,995 |
Management and franchise [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 11,345 | 11,362 |
Ownership [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,627 | 927 |
Corporate and other [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,095 | $ 1,706 |
Business Segments - Schedule _2
Business Segments - Schedule of Capital Expenditures by Segment (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | $ 66 | $ 51 |
Ownership [member] | ||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | 31 | 34 |
Corporate and other [member] | ||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | $ 35 | $ 17 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | |
Commitments and Contingencies [Line Items] | ||
Current liabilities | $ 2,900 | $ 2,615 |
Marketing, sales, and brand program commitments | 397 | 375 |
Commitments to fund loans | ||
Commitments and Contingencies [Line Items] | ||
Commitment to fund loans | 25 | |
Commitment to fund loans, 2019 | 15 | |
Commitment to fund loans, 2020 | $ 10 | |
Performance guarantees | ||
Commitments and Contingencies [Line Items] | ||
Number of contracts with guarantees | Contract | 6 | |
Guarantees, expiration | December 2019 to 2039 | |
Guarantees, possible cash outlays | $ 38 | |
Current liabilities | $ 3 | $ 12 |
Number of hotels with performance guarantees with recorded liabilities | Contract | 1 | 1 |
Debt guarantee | ||
Commitments and Contingencies [Line Items] | ||
Guarantees, expiration | One of the loans has an initial maturity date in 2022 with two one-year extension options and the other loan will mature in 2023 | |
Guarantees, possible cash outlays | $ 30 | |
Number of debt guarantees | Contract | 2 | |
Number of hotels with debt guarantees | Contract | 3 |
Condensed Consolidating Guara_3
Condensed Consolidating Guarantor Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Current Assets: | |||||||
Cash and cash equivalents | $ 719 | $ 403 | |||||
Restricted cash and cash equivalents | 90 | 81 | |||||
Accounts receivable, net | 1,193 | 1,150 | |||||
Intercompany receivables | 0 | 0 | |||||
Prepaid expenses | 115 | 160 | |||||
Other | 138 | 189 | |||||
Total current assets | 2,255 | 1,983 | |||||
Intangibles and Other Assets: | |||||||
Investments in subsidiaries | 0 | 0 | |||||
Goodwill | 5,137 | 5,160 | |||||
Brands | 4,864 | 4,869 | |||||
Management and franchise contracts, net | 794 | 872 | |||||
Other intangible assets, net | 404 | 415 | |||||
Operating lease right-of-use assets | 839 | 0 | |||||
Property and equipment, net | 380 | 367 | |||||
Deferred income tax assets | 146 | 90 | |||||
Other | 248 | 239 | |||||
Total intangibles and other assets | 12,812 | 12,012 | |||||
Total assets | 15,067 | 13,995 | |||||
Current Liabilities: | |||||||
Accounts payable, accrued expenses and other | 1,784 | 1,549 | |||||
Current maturities of long-term debt | [1] | 38 | 16 | ||||
Current portion of deferred revenues | 290 | 350 | |||||
Intercompany payables | 0 | 0 | |||||
Total current liabilities | 2,900 | 2,615 | |||||
Long-term debt | 7,767 | 7,266 | |||||
Operating lease liabilities | 1,004 | 0 | |||||
Deferred revenues | 834 | 826 | |||||
Deferred income tax liabilities | 873 | 898 | |||||
Other | 884 | 863 | |||||
Total liabilities | 15,266 | 13,437 | |||||
Equity (Deficit): | |||||||
Total Hilton stockholders' equity (deficit) | (208) | 551 | |||||
Noncontrolling interests | 9 | 7 | |||||
Total equity (deficit) | (199) | $ (23) | 558 | $ 580 | $ 560 | $ 1,691 | |
Total liabilities and equity (deficit) | 15,067 | 13,995 | |||||
Eliminations [member] | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash and cash equivalents | 0 | 0 | |||||
Accounts receivable, net | (2) | 0 | |||||
Intercompany receivables | (39) | (40) | |||||
Prepaid expenses | (5) | (9) | |||||
Other | (24) | (3) | |||||
Total current assets | (70) | (52) | |||||
Intangibles and Other Assets: | |||||||
Investments in subsidiaries | (11,283) | (14,175) | |||||
Goodwill | 0 | 0 | |||||
Brands | 0 | 0 | |||||
Management and franchise contracts, net | 0 | 0 | |||||
Other intangible assets, net | 0 | 0 | |||||
Operating lease right-of-use assets | 0 | ||||||
Property and equipment, net | 0 | 0 | |||||
Deferred income tax assets | (99) | (98) | |||||
Other | 0 | 0 | |||||
Total intangibles and other assets | (11,382) | (14,273) | |||||
Total assets | (11,452) | (14,325) | |||||
Current Liabilities: | |||||||
Accounts payable, accrued expenses and other | (22) | (3) | |||||
Current maturities of long-term debt | 0 | 0 | |||||
Current portion of deferred revenues | (9) | (9) | |||||
Intercompany payables | (39) | (40) | |||||
Total current liabilities | (70) | (52) | |||||
Long-term debt | 0 | 0 | |||||
Operating lease liabilities | 0 | ||||||
Deferred revenues | 0 | 0 | |||||
Deferred income tax liabilities | (99) | (98) | |||||
Other | 0 | 0 | |||||
Total liabilities | (169) | (150) | |||||
Equity (Deficit): | |||||||
Total Hilton stockholders' equity (deficit) | (11,283) | (14,175) | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity (deficit) | (11,283) | (14,175) | |||||
Total liabilities and equity (deficit) | (11,452) | (14,325) | |||||
HOC [Member] | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 17 | 3 | |||||
Restricted cash and cash equivalents | 34 | 34 | |||||
Accounts receivable, net | 13 | 10 | |||||
Intercompany receivables | 0 | 0 | |||||
Prepaid expenses | 26 | 52 | |||||
Other | 1 | 1 | |||||
Total current assets | 91 | 100 | |||||
Intangibles and Other Assets: | |||||||
Investments in subsidiaries | 7,709 | 7,930 | |||||
Goodwill | 0 | 0 | |||||
Brands | 0 | 0 | |||||
Management and franchise contracts, net | 1 | 0 | |||||
Other intangible assets, net | 0 | 0 | |||||
Operating lease right-of-use assets | 34 | ||||||
Property and equipment, net | 60 | 27 | |||||
Deferred income tax assets | 85 | 94 | |||||
Other | 31 | 33 | |||||
Total intangibles and other assets | 7,920 | 8,084 | |||||
Total assets | 8,011 | 8,184 | |||||
Current Liabilities: | |||||||
Accounts payable, accrued expenses and other | 264 | 229 | |||||
Current maturities of long-term debt | 20 | 0 | |||||
Current portion of deferred revenues | 38 | 106 | |||||
Intercompany payables | 39 | 40 | |||||
Total current liabilities | 361 | 375 | |||||
Long-term debt | 3,474 | 2,467 | |||||
Operating lease liabilities | 39 | ||||||
Deferred revenues | 0 | 0 | |||||
Deferred income tax liabilities | 0 | 0 | |||||
Other | 189 | 211 | |||||
Total liabilities | 4,063 | 3,053 | |||||
Equity (Deficit): | |||||||
Total Hilton stockholders' equity (deficit) | 3,948 | 5,131 | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity (deficit) | 3,948 | 5,131 | |||||
Total liabilities and equity (deficit) | 8,011 | 8,184 | |||||
HWF Issuers [Member] | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash and cash equivalents | 0 | 0 | |||||
Accounts receivable, net | 0 | 0 | |||||
Intercompany receivables | 0 | 0 | |||||
Prepaid expenses | 0 | 0 | |||||
Other | 3 | 1 | |||||
Total current assets | 3 | 1 | |||||
Intangibles and Other Assets: | |||||||
Investments in subsidiaries | 3,948 | 5,131 | |||||
Goodwill | 0 | 0 | |||||
Brands | 0 | 0 | |||||
Management and franchise contracts, net | 0 | 0 | |||||
Other intangible assets, net | 0 | 0 | |||||
Operating lease right-of-use assets | 0 | ||||||
Property and equipment, net | 0 | 0 | |||||
Deferred income tax assets | 11 | 0 | |||||
Other | 11 | 23 | |||||
Total intangibles and other assets | 3,970 | 5,154 | |||||
Total assets | 3,973 | 5,155 | |||||
Current Liabilities: | |||||||
Accounts payable, accrued expenses and other | 37 | 19 | |||||
Current maturities of long-term debt | 0 | 0 | |||||
Current portion of deferred revenues | 0 | 0 | |||||
Intercompany payables | 0 | 0 | |||||
Total current liabilities | 37 | 19 | |||||
Long-term debt | 4,078 | 4,573 | |||||
Operating lease liabilities | 0 | ||||||
Deferred revenues | 0 | 0 | |||||
Deferred income tax liabilities | 0 | 6 | |||||
Other | 45 | 0 | |||||
Total liabilities | 4,160 | 4,598 | |||||
Equity (Deficit): | |||||||
Total Hilton stockholders' equity (deficit) | (187) | 557 | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity (deficit) | (187) | 557 | |||||
Total liabilities and equity (deficit) | 3,973 | 5,155 | |||||
Parent [Member] | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 0 | 0 | |||||
Restricted cash and cash equivalents | 0 | 0 | |||||
Accounts receivable, net | 0 | 0 | |||||
Intercompany receivables | 0 | 0 | |||||
Prepaid expenses | 0 | 0 | |||||
Other | 0 | 0 | |||||
Total current assets | 0 | 0 | |||||
Intangibles and Other Assets: | |||||||
Investments in subsidiaries | (187) | 557 | |||||
Goodwill | 0 | 0 | |||||
Brands | 0 | 0 | |||||
Management and franchise contracts, net | 0 | 0 | |||||
Other intangible assets, net | 0 | 0 | |||||
Operating lease right-of-use assets | 0 | ||||||
Property and equipment, net | 0 | 0 | |||||
Deferred income tax assets | 3 | 4 | |||||
Other | 0 | 0 | |||||
Total intangibles and other assets | (184) | 561 | |||||
Total assets | (184) | 561 | |||||
Current Liabilities: | |||||||
Accounts payable, accrued expenses and other | 24 | 10 | |||||
Current maturities of long-term debt | 0 | 0 | |||||
Current portion of deferred revenues | 0 | 0 | |||||
Intercompany payables | 0 | 0 | |||||
Total current liabilities | 24 | 10 | |||||
Long-term debt | 0 | 0 | |||||
Operating lease liabilities | 0 | ||||||
Deferred revenues | 0 | 0 | |||||
Deferred income tax liabilities | 0 | 0 | |||||
Other | 0 | 0 | |||||
Total liabilities | 24 | 10 | |||||
Equity (Deficit): | |||||||
Total Hilton stockholders' equity (deficit) | (208) | 551 | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity (deficit) | (208) | 551 | |||||
Total liabilities and equity (deficit) | (184) | 561 | |||||
Guarantor Subsidiaries [Member] | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 26 | 17 | |||||
Restricted cash and cash equivalents | 23 | 15 | |||||
Accounts receivable, net | 850 | 735 | |||||
Intercompany receivables | 0 | 0 | |||||
Prepaid expenses | 37 | 37 | |||||
Other | 56 | 36 | |||||
Total current assets | 992 | 840 | |||||
Intangibles and Other Assets: | |||||||
Investments in subsidiaries | (187) | 557 | |||||
Goodwill | 3,824 | 3,824 | |||||
Brands | 4,404 | 4,404 | |||||
Management and franchise contracts, net | 464 | 556 | |||||
Other intangible assets, net | 290 | 287 | |||||
Operating lease right-of-use assets | 9 | ||||||
Property and equipment, net | 68 | 65 | |||||
Deferred income tax assets | 0 | 0 | |||||
Other | 37 | 22 | |||||
Total intangibles and other assets | 8,909 | 9,715 | |||||
Total assets | 9,901 | 10,555 | |||||
Current Liabilities: | |||||||
Accounts payable, accrued expenses and other | 711 | 529 | |||||
Current maturities of long-term debt | 0 | 0 | |||||
Current portion of deferred revenues | 241 | 239 | |||||
Intercompany payables | 0 | 0 | |||||
Total current liabilities | 1,740 | 1,468 | |||||
Long-term debt | 0 | 0 | |||||
Operating lease liabilities | 7 | ||||||
Deferred revenues | 764 | 762 | |||||
Deferred income tax liabilities | 957 | 962 | |||||
Other | 96 | 93 | |||||
Total liabilities | 4,568 | 4,254 | |||||
Equity (Deficit): | |||||||
Total Hilton stockholders' equity (deficit) | 5,333 | 6,301 | |||||
Noncontrolling interests | 0 | 0 | |||||
Total equity (deficit) | 5,333 | 6,301 | |||||
Total liabilities and equity (deficit) | 9,901 | 10,555 | |||||
Non-Guarantor Subsidiaries [Member] | |||||||
Current Assets: | |||||||
Cash and cash equivalents | 676 | 383 | |||||
Restricted cash and cash equivalents | 33 | 32 | |||||
Accounts receivable, net | 332 | 405 | |||||
Intercompany receivables | 39 | 40 | |||||
Prepaid expenses | 57 | 80 | |||||
Other | 102 | 154 | |||||
Total current assets | 1,239 | 1,094 | |||||
Intangibles and Other Assets: | |||||||
Investments in subsidiaries | 0 | 0 | |||||
Goodwill | 1,313 | 1,336 | |||||
Brands | 460 | 465 | |||||
Management and franchise contracts, net | 329 | 316 | |||||
Other intangible assets, net | 114 | 128 | |||||
Operating lease right-of-use assets | 796 | ||||||
Property and equipment, net | 252 | 275 | |||||
Deferred income tax assets | 146 | 90 | |||||
Other | 169 | 161 | |||||
Total intangibles and other assets | 3,579 | 2,771 | |||||
Total assets | 4,818 | 3,865 | |||||
Current Liabilities: | |||||||
Accounts payable, accrued expenses and other | 770 | 765 | |||||
Current maturities of long-term debt | 18 | 16 | |||||
Current portion of deferred revenues | 20 | 14 | |||||
Intercompany payables | 0 | 0 | |||||
Total current liabilities | 808 | 795 | |||||
Long-term debt | 215 | 226 | |||||
Operating lease liabilities | 958 | ||||||
Deferred revenues | 70 | 64 | |||||
Deferred income tax liabilities | 15 | 28 | |||||
Other | 554 | 559 | |||||
Total liabilities | 2,620 | 1,672 | |||||
Equity (Deficit): | |||||||
Total Hilton stockholders' equity (deficit) | 2,189 | 2,186 | |||||
Noncontrolling interests | 9 | 7 | |||||
Total equity (deficit) | 2,198 | 2,193 | |||||
Total liabilities and equity (deficit) | 4,818 | 3,865 | |||||
Guest Loyalty Program [Member] | |||||||
Current Liabilities: | |||||||
Current portion of liability for guest loyalty program | 788 | 700 | |||||
Liability for guest loyalty program | 1,004 | 969 | |||||
Guest Loyalty Program [Member] | Eliminations [member] | |||||||
Current Liabilities: | |||||||
Current portion of liability for guest loyalty program | 0 | 0 | |||||
Liability for guest loyalty program | 0 | 0 | |||||
Guest Loyalty Program [Member] | HOC [Member] | |||||||
Current Liabilities: | |||||||
Current portion of liability for guest loyalty program | 0 | 0 | |||||
Liability for guest loyalty program | 0 | 0 | |||||
Guest Loyalty Program [Member] | HWF Issuers [Member] | |||||||
Current Liabilities: | |||||||
Current portion of liability for guest loyalty program | 0 | 0 | |||||
Liability for guest loyalty program | 0 | 0 | |||||
Guest Loyalty Program [Member] | Parent [Member] | |||||||
Current Liabilities: | |||||||
Current portion of liability for guest loyalty program | 0 | 0 | |||||
Liability for guest loyalty program | 0 | 0 | |||||
Guest Loyalty Program [Member] | Guarantor Subsidiaries [Member] | |||||||
Current Liabilities: | |||||||
Current portion of liability for guest loyalty program | 788 | 700 | |||||
Liability for guest loyalty program | 1,004 | 969 | |||||
Guest Loyalty Program [Member] | Non-Guarantor Subsidiaries [Member] | |||||||
Current Liabilities: | |||||||
Current portion of liability for guest loyalty program | 0 | 0 | |||||
Liability for guest loyalty program | $ 0 | $ 0 | |||||
[1] | Represents current maturities of finance lease liabilities. |
Condensed Consolidating Guara_4
Condensed Consolidating Guarantor Financial Information - Condensed Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 2,395 | $ 2,253 | $ 7,083 | $ 6,618 |
Depreciation and amortization | 86 | 81 | 256 | 242 |
General and administrative | 107 | 109 | 327 | 328 |
Other expenses | 11 | 10 | 46 | 36 |
Total expenses excluding reimbursable expenses | 514 | 531 | 1,571 | 1,609 |
Total expenses | 1,957 | 1,868 | 5,855 | 5,548 |
Gain on sale of assets, net | 81 | 0 | 81 | 0 |
Operating income (loss) | 519 | 385 | 1,309 | 1,070 |
Interest expense | (105) | (99) | (304) | (277) |
Foreign Currency Transaction Gain (Loss), before Tax | 7 | (6) | 4 | (7) |
Other non-operating income (loss), net | 0 | 13 | (8) | 26 |
Income (loss) before income taxes and equity in earnings from subsidiaries | 421 | 293 | 1,001 | 812 |
Income Tax Expense (Benefit) | (131) | (129) | (291) | (268) |
Income (loss) before equity in earnings from subsidiaries | 290 | 164 | 710 | 544 |
Equity in earnings from subsidiaries | 0 | 0 | 0 | 0 |
Net income | 290 | 164 | 710 | 544 |
Net income attributable to noncontrolling interests | (2) | (2) | (4) | (4) |
Net income attributable to Hilton stockholders | 288 | 162 | 706 | 540 |
Comprehensive income | 248 | 160 | 644 | 539 |
Comprehensive income attributable to noncontrolling interests | (2) | (2) | (4) | (4) |
Comprehensive income attributable to Hilton stockholders | 246 | 158 | 640 | 535 |
Franchise and licensing fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 443 | 407 | 1,269 | 1,142 |
Base and other management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 80 | 80 | 249 | 241 |
Incentive management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 54 | 57 | 167 | 171 |
Owned and leased hotels [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 361 | 373 | 1,060 | 1,099 |
Expenses | 310 | 331 | 942 | 1,003 |
Other revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 23 | 27 | 75 | 72 |
Total revenues excluding reimbursable revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 961 | 944 | 2,820 | 2,725 |
Other revenues from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 1,434 | 1,309 | 4,263 | 3,893 |
Other expenses from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Expenses | 1,443 | 1,337 | 4,284 | 3,939 |
Eliminations [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | (4) | (1) | (13) | (13) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
General and administrative | (9) | (2) | (22) | (6) |
Other expenses | 5 | 1 | 9 | (7) |
Total expenses excluding reimbursable expenses | (4) | (1) | (13) | (13) |
Total expenses | (4) | (1) | (13) | (13) |
Gain on sale of assets, net | 0 | 0 | ||
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest expense | 0 | (3) | 0 | 0 |
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 0 | 0 | 0 |
Other non-operating income (loss), net | 0 | 3 | 0 | 0 |
Income (loss) before income taxes and equity in earnings from subsidiaries | 0 | 0 | 0 | 0 |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
Income (loss) before equity in earnings from subsidiaries | 0 | 0 | 0 | 0 |
Equity in earnings from subsidiaries | (1,282) | (781) | (3,214) | (2,558) |
Net income | (1,282) | (781) | (3,214) | (2,558) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton stockholders | (1,282) | (781) | (3,214) | (2,558) |
Comprehensive income | (1,240) | (777) | (3,148) | (2,553) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | (1,240) | (777) | (3,148) | (2,553) |
Eliminations [member] | Franchise and licensing fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | (4) | (5) | (13) | (13) |
Eliminations [member] | Base and other management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations [member] | Incentive management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations [member] | Owned and leased hotels [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | 0 | 0 | 0 | 0 |
Eliminations [member] | Other revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 4 | 0 | 0 |
Eliminations [member] | Total revenues excluding reimbursable revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | (4) | (1) | (13) | (13) |
Eliminations [member] | Other revenues from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations [member] | Other expenses from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Expenses | 0 | 0 | 0 | 0 |
HOC [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 148 | 128 | 435 | 332 |
Depreciation and amortization | 2 | 2 | 5 | 5 |
General and administrative | 88 | 81 | 259 | 237 |
Other expenses | 1 | 1 | 5 | 5 |
Total expenses excluding reimbursable expenses | 91 | 84 | 269 | 247 |
Total expenses | 176 | 154 | 513 | 425 |
Gain on sale of assets, net | 0 | 0 | ||
Operating income (loss) | (28) | (26) | (78) | (93) |
Interest expense | (49) | (34) | (117) | (78) |
Foreign Currency Transaction Gain (Loss), before Tax | 4 | 0 | 5 | 3 |
Other non-operating income (loss), net | 0 | 1 | 0 | 5 |
Income (loss) before income taxes and equity in earnings from subsidiaries | (73) | (59) | (190) | (163) |
Income Tax Expense (Benefit) | 15 | 8 | 42 | 35 |
Income (loss) before equity in earnings from subsidiaries | (58) | (51) | (148) | (128) |
Equity in earnings from subsidiaries | 382 | 254 | 975 | 803 |
Net income | 324 | 203 | 827 | 675 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton stockholders | 324 | 203 | 827 | 675 |
Comprehensive income | 324 | 204 | 830 | 677 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 324 | 204 | 830 | 677 |
HOC [Member] | Franchise and licensing fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 68 | 57 | 198 | 151 |
HOC [Member] | Base and other management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 1 | 0 | 1 | 1 |
HOC [Member] | Incentive management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
HOC [Member] | Owned and leased hotels [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | 0 | 0 | 0 | 0 |
HOC [Member] | Other revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 1 | 1 | 4 |
HOC [Member] | Total revenues excluding reimbursable revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 69 | 58 | 200 | 156 |
HOC [Member] | Other revenues from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 79 | 70 | 235 | 176 |
HOC [Member] | Other expenses from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Expenses | 85 | 70 | 244 | 178 |
HWF Issuers [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Total expenses excluding reimbursable expenses | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Gain on sale of assets, net | 0 | 0 | ||
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest expense | (45) | (54) | (148) | (172) |
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 0 | 0 | 0 |
Other non-operating income (loss), net | (2) | 0 | (11) | (7) |
Income (loss) before income taxes and equity in earnings from subsidiaries | (47) | (54) | (159) | (179) |
Income Tax Expense (Benefit) | 11 | 13 | 38 | 44 |
Income (loss) before equity in earnings from subsidiaries | (36) | (41) | (121) | (135) |
Equity in earnings from subsidiaries | 324 | 203 | 827 | 675 |
Net income | 288 | 162 | 706 | 540 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton stockholders | 288 | 162 | 706 | 540 |
Comprehensive income | 279 | 168 | 657 | 585 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 279 | 168 | 657 | 585 |
HWF Issuers [Member] | Franchise and licensing fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
HWF Issuers [Member] | Base and other management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
HWF Issuers [Member] | Incentive management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
HWF Issuers [Member] | Owned and leased hotels [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | 0 | 0 | 0 | 0 |
HWF Issuers [Member] | Other revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
HWF Issuers [Member] | Total revenues excluding reimbursable revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
HWF Issuers [Member] | Other revenues from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
HWF Issuers [Member] | Other expenses from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Expenses | 0 | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 1,617 | 1,475 | 4,831 | 4,429 |
Depreciation and amortization | 63 | 58 | 188 | 176 |
General and administrative | 0 | 0 | 0 | 0 |
Other expenses | 0 | 2 | 10 | 17 |
Total expenses excluding reimbursable expenses | 63 | 60 | 198 | 193 |
Total expenses | 1,263 | 1,166 | 3,800 | 3,497 |
Gain on sale of assets, net | 0 | 0 | ||
Operating income (loss) | 354 | 309 | 1,031 | 932 |
Interest expense | 0 | 0 | 0 | 0 |
Foreign Currency Transaction Gain (Loss), before Tax | (43) | 1 | (70) | (80) |
Other non-operating income (loss), net | (3) | 4 | (8) | 16 |
Income (loss) before income taxes and equity in earnings from subsidiaries | 308 | 314 | 953 | 868 |
Income Tax Expense (Benefit) | (79) | (70) | (238) | (204) |
Income (loss) before equity in earnings from subsidiaries | 229 | 244 | 715 | 664 |
Equity in earnings from subsidiaries | 288 | 162 | 706 | 540 |
Net income | 517 | 406 | 1,421 | 1,204 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton stockholders | 517 | 406 | 1,421 | 1,204 |
Comprehensive income | 516 | 405 | 1,420 | 1,203 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 516 | 405 | 1,420 | 1,203 |
Guarantor Subsidiaries [Member] | Franchise and licensing fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 338 | 316 | 970 | 900 |
Guarantor Subsidiaries [Member] | Base and other management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 48 | 49 | 157 | 155 |
Guarantor Subsidiaries [Member] | Incentive management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 16 | 15 | 60 | 58 |
Guarantor Subsidiaries [Member] | Owned and leased hotels [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | 0 | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | Other revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 20 | 19 | 63 | 60 |
Guarantor Subsidiaries [Member] | Total revenues excluding reimbursable revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 422 | 399 | 1,250 | 1,173 |
Guarantor Subsidiaries [Member] | Other revenues from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 1,195 | 1,076 | 3,581 | 3,256 |
Guarantor Subsidiaries [Member] | Other expenses from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Expenses | 1,200 | 1,106 | 3,602 | 3,304 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 634 | 651 | 1,830 | 1,870 |
Depreciation and amortization | 21 | 21 | 63 | 61 |
General and administrative | 28 | 30 | 90 | 97 |
Other expenses | 5 | 6 | 22 | 21 |
Total expenses excluding reimbursable expenses | 364 | 388 | 1,117 | 1,182 |
Total expenses | 522 | 549 | 1,555 | 1,639 |
Gain on sale of assets, net | 81 | 81 | ||
Operating income (loss) | 193 | 102 | 356 | 231 |
Interest expense | (11) | (8) | (39) | (27) |
Foreign Currency Transaction Gain (Loss), before Tax | 46 | (7) | 69 | 70 |
Other non-operating income (loss), net | 5 | 5 | 11 | 12 |
Income (loss) before income taxes and equity in earnings from subsidiaries | 233 | 92 | 397 | 286 |
Income Tax Expense (Benefit) | (78) | (80) | (133) | (143) |
Income (loss) before equity in earnings from subsidiaries | 155 | 12 | 264 | 143 |
Equity in earnings from subsidiaries | 0 | 0 | 0 | 0 |
Net income | 155 | 12 | 264 | 143 |
Net income attributable to noncontrolling interests | (2) | (2) | (4) | (4) |
Net income attributable to Hilton stockholders | 153 | 10 | 260 | 139 |
Comprehensive income | 123 | 2 | 245 | 92 |
Comprehensive income attributable to noncontrolling interests | (2) | (2) | (4) | (4) |
Comprehensive income attributable to Hilton stockholders | 121 | 0 | 241 | 88 |
Non-Guarantor Subsidiaries [Member] | Franchise and licensing fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 41 | 39 | 114 | 104 |
Non-Guarantor Subsidiaries [Member] | Base and other management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 31 | 31 | 91 | 85 |
Non-Guarantor Subsidiaries [Member] | Incentive management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 38 | 42 | 107 | 113 |
Non-Guarantor Subsidiaries [Member] | Owned and leased hotels [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 361 | 373 | 1,060 | 1,099 |
Expenses | 310 | 331 | 942 | 1,003 |
Non-Guarantor Subsidiaries [Member] | Other revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 3 | 3 | 11 | 8 |
Non-Guarantor Subsidiaries [Member] | Total revenues excluding reimbursable revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 474 | 488 | 1,383 | 1,409 |
Non-Guarantor Subsidiaries [Member] | Other revenues from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 160 | 163 | 447 | 461 |
Non-Guarantor Subsidiaries [Member] | Other expenses from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Expenses | 158 | 161 | 438 | 457 |
Parent [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Total expenses excluding reimbursable expenses | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Gain on sale of assets, net | 0 | 0 | ||
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 0 | 0 | 0 |
Other non-operating income (loss), net | 0 | 0 | 0 | 0 |
Income (loss) before income taxes and equity in earnings from subsidiaries | 0 | 0 | 0 | 0 |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
Income (loss) before equity in earnings from subsidiaries | 0 | 0 | 0 | 0 |
Equity in earnings from subsidiaries | 288 | 162 | 706 | 540 |
Net income | 288 | 162 | 706 | 540 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton stockholders | 288 | 162 | 706 | 540 |
Comprehensive income | 246 | 158 | 640 | 535 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 246 | 158 | 640 | 535 |
Parent [Member] | Franchise and licensing fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Parent [Member] | Base and other management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Parent [Member] | Incentive management fees [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Parent [Member] | Owned and leased hotels [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses | 0 | 0 | 0 | 0 |
Parent [Member] | Other revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Parent [Member] | Total revenues excluding reimbursable revenues [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Parent [Member] | Other revenues from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Parent [Member] | Other expenses from managed and franchised properties [member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Expenses | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidating Guara_5
Condensed Consolidating Guarantor Financial Information - Condensed Cash Flow Statement (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities: | ||
Net cash provided by (used in) operating activities | $ 1,182 | $ 914 |
Investing Activities: | ||
Capital expenditures for property and equipment | (66) | (51) |
Payments received on other financing receivables | 0 | 49 |
Proceeds from asset disposition | 120 | 0 |
Capitalized software costs | (79) | (62) |
Other | (22) | (16) |
Net cash used in investing activities | (47) | (80) |
Financing Activities: | ||
Borrowings | 1,795 | 1,676 |
Repayment of debt | (1,327) | (701) |
Debt issuance costs | (29) | (21) |
Intercompany transfers | 0 | 0 |
Dividends paid | (130) | (137) |
Repurchases of common stock | (1,086) | (1,561) |
Intercompany dividends | 0 | |
Share-based compensation tax withholdings and other | (31) | (42) |
Other | 0 | (4) |
Net cash used in financing activities | (808) | (790) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (2) | (14) |
Net increase in cash, restricted cash and cash equivalents | 325 | 30 |
Cash, restricted cash and cash equivalents, beginning of period | 484 | 670 |
Cash, restricted cash and cash equivalents, end of period | 809 | 700 |
Eliminations [member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | (65) | 0 |
Investing Activities: | ||
Capital expenditures for property and equipment | 0 | 0 |
Payments received on other financing receivables | 0 | |
Proceeds from asset disposition | 0 | |
Capitalized software costs | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing Activities: | ||
Borrowings | 0 | 0 |
Repayment of debt | 0 | 0 |
Debt issuance costs | 0 | 0 |
Intercompany transfers | 0 | 0 |
Dividends paid | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Intercompany dividends | 65 | |
Share-based compensation tax withholdings and other | 0 | 0 |
Other | 0 | |
Net cash used in financing activities | 65 | 0 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase in cash, restricted cash and cash equivalents | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 |
HWF Issuers [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | (122) | (143) |
Investing Activities: | ||
Capital expenditures for property and equipment | 0 | 0 |
Payments received on other financing receivables | 0 | |
Proceeds from asset disposition | 0 | |
Capitalized software costs | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing Activities: | ||
Borrowings | 795 | 175 |
Repayment of debt | (1,295) | (685) |
Debt issuance costs | (13) | 0 |
Intercompany transfers | 635 | 653 |
Dividends paid | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Intercompany dividends | 0 | |
Share-based compensation tax withholdings and other | 0 | 0 |
Other | 0 | |
Net cash used in financing activities | 122 | 143 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase in cash, restricted cash and cash equivalents | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 |
HOC [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | (17) | (7) |
Investing Activities: | ||
Capital expenditures for property and equipment | (6) | (5) |
Payments received on other financing receivables | 0 | |
Proceeds from asset disposition | 0 | |
Capitalized software costs | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | (6) | (5) |
Financing Activities: | ||
Borrowings | 1,000 | 1,500 |
Repayment of debt | (20) | 0 |
Debt issuance costs | (16) | (21) |
Intercompany transfers | (896) | (1,451) |
Dividends paid | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Intercompany dividends | 0 | |
Share-based compensation tax withholdings and other | (31) | (42) |
Other | 0 | |
Net cash used in financing activities | 37 | (14) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase in cash, restricted cash and cash equivalents | 14 | (26) |
Cash, restricted cash and cash equivalents, beginning of period | 37 | 63 |
Cash, restricted cash and cash equivalents, end of period | 51 | 37 |
Parent [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Investing Activities: | ||
Capital expenditures for property and equipment | 0 | 0 |
Payments received on other financing receivables | 0 | |
Proceeds from asset disposition | 0 | |
Capitalized software costs | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing Activities: | ||
Borrowings | 0 | 0 |
Repayment of debt | 0 | 0 |
Debt issuance costs | 0 | 0 |
Intercompany transfers | 1,216 | 1,698 |
Dividends paid | (130) | (137) |
Repurchases of common stock | (1,086) | (1,561) |
Intercompany dividends | 0 | |
Share-based compensation tax withholdings and other | 0 | 0 |
Other | 0 | |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase in cash, restricted cash and cash equivalents | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 |
Guarantor Subsidiaries [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 1,157 | 808 |
Investing Activities: | ||
Capital expenditures for property and equipment | (5) | (4) |
Payments received on other financing receivables | 49 | |
Proceeds from asset disposition | 0 | |
Capitalized software costs | (79) | (62) |
Other | (18) | (6) |
Net cash used in investing activities | (102) | (23) |
Financing Activities: | ||
Borrowings | 0 | 0 |
Repayment of debt | 0 | 0 |
Debt issuance costs | 0 | 0 |
Intercompany transfers | (1,038) | (739) |
Dividends paid | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Intercompany dividends | 0 | |
Share-based compensation tax withholdings and other | 0 | 0 |
Other | (3) | |
Net cash used in financing activities | (1,038) | (742) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase in cash, restricted cash and cash equivalents | 17 | 43 |
Cash, restricted cash and cash equivalents, beginning of period | 32 | 28 |
Cash, restricted cash and cash equivalents, end of period | 49 | 71 |
Non-Guarantor Subsidiaries [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 229 | 256 |
Investing Activities: | ||
Capital expenditures for property and equipment | (55) | (42) |
Payments received on other financing receivables | 0 | |
Proceeds from asset disposition | 120 | |
Capitalized software costs | 0 | 0 |
Other | (4) | (10) |
Net cash used in investing activities | 61 | (52) |
Financing Activities: | ||
Borrowings | 0 | 1 |
Repayment of debt | (12) | (16) |
Debt issuance costs | 0 | 0 |
Intercompany transfers | 83 | (161) |
Dividends paid | 0 | 0 |
Repurchases of common stock | 0 | 0 |
Intercompany dividends | (65) | |
Share-based compensation tax withholdings and other | 0 | 0 |
Other | (1) | |
Net cash used in financing activities | 6 | (177) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (2) | (14) |
Net increase in cash, restricted cash and cash equivalents | 294 | 13 |
Cash, restricted cash and cash equivalents, beginning of period | 415 | 579 |
Cash, restricted cash and cash equivalents, end of period | $ 709 | $ 592 |
Condensed Consolidating Guara_6
Condensed Consolidating Guarantor Financial Information - Additional Information (Details) | Sep. 30, 2019Rate |
Hilton Worldwide Parent [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
HOC [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
HWF Issuers [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |