Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 02, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36243 | ||
Entity Registrant Name | Hilton Worldwide Holdings Inc. | ||
Entity Incorporation, State 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 37,479 | ||
Entity Common Stock, Shares Outstanding | 252,160,518 | ||
Entity Central Index Key | 0001585689 | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tysons, Virginia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Current Assets: | |||
Cash and cash equivalents | $ 800 | $ 1,209 | |
Restricted cash and cash equivalents | 75 | 77 | |
Accounts receivable, net of allowance for credit losses | 1,487 | 1,327 | |
Prepaid expenses | 131 | 105 | |
Other | 121 | 152 | |
Total current assets | 2,614 | 2,870 | |
Intangibles and Other Assets: | |||
Goodwill | 5,052 | 5,032 | |
Brands | 4,846 | 4,840 | |
Operating lease right-of-use assets | [1] | 618 | 662 |
Property and equipment, net | 382 | 280 | |
Deferred income tax assets | 140 | 204 | |
Other | 512 | 576 | |
Total intangibles and other assets | 12,787 | 12,642 | |
Total assets | 15,401 | 15,512 | |
Current Liabilities: | |||
Accounts payable, accrued expenses and other | 1,979 | 1,790 | |
Current maturities of long-term debt | [2] | 39 | 39 |
Current portion of deferred revenues | 502 | 433 | |
Total current liabilities | 3,722 | 3,372 | |
Long-term debt | 9,157 | 8,708 | |
Operating lease liabilities | 808 | 832 | |
Deferred revenues | 1,132 | 986 | |
Deferred income tax liabilities | 401 | 735 | |
Other | 998 | 692 | |
Total liabilities | 17,748 | 16,610 | |
Commitments and contingencies | |||
Equity (Deficit): | |||
Common stock | 3 | 3 | |
Treasury stock, at cost | (8,393) | (6,040) | |
Additional paid-in capital | 10,968 | 10,831 | |
Accumulated deficit | (4,207) | (5,190) | |
Accumulated other comprehensive loss | (731) | (706) | |
Total Hilton stockholders' deficit | (2,360) | (1,102) | |
Noncontrolling interests | 13 | 4 | |
Total deficit | [3] | (2,347) | (1,098) |
Total liabilities and equity (deficit) | 15,401 | 15,512 | |
Other intangible assets, net | |||
Intangibles and Other Assets: | |||
Finite-lived intangible assets, net | 173 | 161 | |
Management and franchise contracts, net | |||
Intangibles and Other Assets: | |||
Finite-lived intangible assets, net | 1,064 | 887 | |
Guest Loyalty Program | |||
Current Liabilities: | |||
Current portion of liability for guest loyalty program | 1,202 | 1,110 | |
Liability from guest loyalty program | $ 1,530 | $ 1,285 | |
[1]Includes $73 million and $78 million attributable to U.S. operations as of December 31, 2023 and 2022, respectively, and $545 million and $584 million to operations outside the U.S., respectively, most significantly in the U.K. and Germany for both years.[2] Represents current maturities of finance lease liabilities and borrowings of consolidated VIEs. As of December 31, 2023 and 2022, 3.0 billion shares of preferred stock with a par value of $0.01 were authorized with no such shares issued. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Allowance for credit losses | $ 131 | $ 117 |
Common stock, par value (per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 10,000,000,000 | 10,000,000,000 |
Common stock, outstanding shares | 253,488,288 | 267,860,301 |
Treasury stock (in shares) | 80,807,049 | 65,217,085 |
Total current assets | $ 2,614 | $ 2,870 |
Total intangibles and other assets | 12,787 | 12,642 |
Total current liabilities | 3,722 | 3,372 |
Total liabilities | 17,748 | 16,610 |
Current assets of variable interest entities | 65 | 43 |
Non current assets of variable interest entities | 112 | 152 |
Total current liabilities of variable interest entities | 50 | 45 |
Total liabilities of variable interest entities | $ 137 | $ 188 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | $ 10,235 | $ 8,773 | $ 5,788 |
Owned and leased hotel expenses | 1,141 | 999 | 679 |
Depreciation and amortization expenses | 147 | 162 | 188 |
General and administrative expenses | 408 | 382 | 405 |
Impairment losses | 38 | 0 | 0 |
Other expenses | 112 | 60 | 45 |
Total expenses excluding reimbursable expenses | 1,846 | 1,603 | 1,317 |
Other expenses from managed and franchised properties | 6,164 | 5,076 | 3,454 |
Total expenses | 8,010 | 6,679 | 4,771 |
Gain (loss) on sales of assets, net | 0 | 0 | (7) |
Operating income (loss) | 2,225 | 2,094 | 1,010 |
Interest expense | (464) | (415) | (397) |
Gain (loss) on foreign currency transactions | (16) | 5 | (7) |
Loss on debt extinguishments | 0 | 0 | (69) |
Gain (loss) on investments in unconsolidated affiliate | (92) | 0 | 0 |
Other non-operating income (loss), net | 39 | 50 | 23 |
Income (loss) before income taxes | 1,692 | 1,734 | 560 |
Income tax benefit (expense) | (541) | (477) | (153) |
Net income (loss) | 1,151 | 1,257 | 407 |
Net loss (income) attributable to noncontrolling interests | (10) | (2) | 3 |
Net income (loss) attributable to Hilton stockholders | $ 1,141 | $ 1,255 | $ 410 |
Basic EPS: | |||
Basic EPS | $ 4.36 | $ 4.56 | $ 1.47 |
Diluted EPS: | |||
Diluted EPS | 4.33 | 4.53 | 1.46 |
Cash dividends declared per share | $ 0.60 | $ 0.45 | $ 0 |
Total revenues excluding reimbursable revenues | |||
Revenues | $ 4,408 | $ 3,736 | $ 2,444 |
Franchise and licensing fees | |||
Revenues | 2,370 | 2,068 | 1,493 |
Base and other management fees | |||
Revenues | 342 | 294 | 176 |
Incentive management fees | |||
Revenues | 274 | 196 | 98 |
Owned and leased hotels | |||
Revenues | 1,244 | 1,076 | 598 |
Other revenues | |||
Revenues | 178 | 102 | 79 |
Other revenues from managed and franchised properties | |||
Revenues | $ 5,827 | $ 5,037 | $ 3,344 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,151 | $ 1,257 | $ 407 | |
Other comprehensive income (loss), net of tax benefit (expense): | ||||
Currency translation adjustment | 8 | (8) | (29) | |
Pension liability adjustment | (3) | (49) | 80 | |
Cash flow hedge adjustment | (31) | 130 | 31 | |
Total other comprehensive income (loss) | (26) | 73 | [1] | 82 |
Comprehensive income (loss) | 1,125 | 1,330 | 489 | |
Comprehensive loss (income) attributable to noncontrolling interests | (9) | (2) | 2 | |
Comprehensive income (loss) attributable to Hilton stockholders | $ 1,116 | $ 1,328 | $ 491 | |
[1] Amount related to noncontrolling interests was less than $1 million. |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | ||||
Currency translation adjustment, tax benefit (expense) | $ (4) | $ 22 | $ 6 | |
Pension liability adjustment, tax benefit (expense) | 1 | 18 | (27) | |
Cash flow hedge adjustment, tax benefit (expense) | 10 | (44) | (10) | |
Other comprehensive income (loss), net of tax | (26) | 73 | [1] | 82 |
Comprehensive income | 1,125 | 1,330 | 489 | |
Comprehensive income (loss) attributable to Hilton stockholders | $ 1,116 | $ 1,328 | $ 491 | |
[1] Amount related to noncontrolling interests was less than $1 million. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities: | |||
Net income | $ 1,151 | $ 1,257 | $ 407 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of contract acquisition costs | 43 | 38 | 32 |
Depreciation and amortization expenses | 147 | 162 | 188 |
Impairment losses | 38 | 0 | 0 |
Loss on sales of assets, net | 0 | 0 | 7 |
Loss (gain) on foreign currency transactions | 16 | (5) | 7 |
Loss on debt extinguishment | 0 | 0 | 69 |
Loss on investments in unconsolidated affiliate | 92 | 0 | 0 |
Share-based compensation expense | 169 | 162 | 193 |
Amortization of deferred financing costs and discounts | 16 | 16 | 16 |
Deferred income taxes | (264) | 34 | (4) |
Contract acquisition costs, net of refunds | (233) | (81) | (200) |
Accounts receivable, net | (126) | (270) | (301) |
Prepaid expenses | (27) | (21) | (22) |
Other current assets | 16 | 78 | (107) |
Accounts payable, accrued expenses and other | 181 | 198 | 273 |
Change in operating lease right-of-use assets | 73 | 105 | 96 |
Change in operating lease liabilities | (98) | (113) | (123) |
Change in deferred revenues | 215 | 174 | (128) |
Change in other liabilities | 284 | (11) | (111) |
Other | (84) | (73) | (78) |
Net cash provided by operating activities | 1,946 | 1,681 | 109 |
Investing Activities: | |||
Capital expenditures for property and equipment | (151) | (39) | (35) |
Issuance of financing receivables | (22) | (46) | (3) |
Proceeds from (payments for) undesignated derivative financial instruments | (26) | 79 | (5) |
Proceeds from asset dispositions | 5 | 0 | 6 |
Capitalized software costs | (96) | (63) | (44) |
Investments in unconsolidated affiliates | (15) | (53) | 0 |
Other | 0 | (1) | 24 |
Net cash used in investing activities | (305) | (123) | (57) |
Financing Activities: | |||
Borrowings | 609 | 23 | 1,510 |
Repayment of debt | (183) | (48) | (3,230) |
Debt issuance costs and redemption premium | (20) | 0 | (76) |
Dividends paid | (158) | (123) | 0 |
Repurchases of common stock | (2,338) | (1,590) | 0 |
Share-based compensation tax withholdings | (54) | (58) | (49) |
Proceeds from share-based compensation | 51 | 29 | 52 |
Settlements of interest rate swap with financing component | 53 | 2 | 0 |
Net cash used in financing activities | (2,040) | (1,765) | (1,793) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (12) | (19) | (10) |
Net decrease in cash, restricted cash and cash equivalents | (411) | (226) | (1,751) |
Cash, restricted cash and cash equivalents, beginning of period | 1,286 | 1,512 | 3,263 |
Cash, restricted cash and cash equivalents, end of period | 875 | 1,286 | 1,512 |
Guest Loyalty Program | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Change in liability for guest loyalty program | $ 337 | $ 31 | $ (105) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) Statement - USD ($) $ in Millions | Total | Common stock | Treasury Stock, Common | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interests | |||||||
Beginning balance, shares at Dec. 31, 2020 | 277,600,000 | |||||||||||||
Beginning balance, equity (deficit) attributable to Hilton stockholders at Dec. 31, 2020 | $ 3 | $ (4,453) | $ 10,552 | $ (6,732) | $ (860) | |||||||||
Beginning balance, equity attributable to noncontrolling interest at Dec. 31, 2020 | $ 4 | |||||||||||||
Beginning balance, equity (deficit) at Dec. 31, 2020 | $ (1,486) | |||||||||||||
Net income (loss) attributable to Hilton stockholders | 410 | 410 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | (3) | 3 | ||||||||||||
Net income | 407 | |||||||||||||
Currency translation adjustment | (29) | (29) | ||||||||||||
Pension liability adjustment | 80 | 79 | 1 | |||||||||||
Cash flow hedge adjustment | 31 | 31 | ||||||||||||
Other comprehensive income (loss) | 81 | |||||||||||||
Other comprehensive income (loss), net of tax | 82 | 1 | ||||||||||||
Share-based compensation, shares | 1,500,000 | |||||||||||||
Share-based compensation | 178 | 10 | 168 | |||||||||||
Ending balance, shares at Dec. 31, 2021 | 279,100,000 | |||||||||||||
Ending balance, equity (deficit) attributable to Hilton stockholders at Dec. 31, 2021 | $ 3 | (4,443) | 10,720 | (6,322) | (779) | |||||||||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2021 | 2 | |||||||||||||
Ending balance, equity (deficit) at Dec. 31, 2021 | (819) | |||||||||||||
Net income (loss) attributable to Hilton stockholders | 1,255 | 1,255 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 2 | (2) | ||||||||||||
Net income | 1,257 | |||||||||||||
Currency translation adjustment | (8) | (8) | ||||||||||||
Pension liability adjustment | (49) | (49) | ||||||||||||
Cash flow hedge adjustment | 130 | 130 | ||||||||||||
Other comprehensive income (loss) | [1] | 73 | ||||||||||||
Other comprehensive income (loss), net of tax | [1] | 73 | 0 | |||||||||||
Dividends | (123) | (123) | ||||||||||||
Repurchases of common stock, shares | (12,300,000) | |||||||||||||
Repurchases of common stock | (1,608) | (1,608) | ||||||||||||
Share-based compensation, shares | 1,100,000 | |||||||||||||
Share-based compensation | $ 122 | 11 | 111 | |||||||||||
Ending balance, shares at Dec. 31, 2022 | 267,860,301 | 267,900,000 | [2] | |||||||||||
Ending balance, equity (deficit) attributable to Hilton stockholders at Dec. 31, 2022 | $ (1,102) | $ 3 | [2] | (6,040) | [2] | 10,831 | [2] | (5,190) | [2] | (706) | [2] | |||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2022 | 4 | 4 | [2] | |||||||||||
Ending balance, equity (deficit) at Dec. 31, 2022 | [2] | (1,098) | ||||||||||||
Net income (loss) attributable to Hilton stockholders | 1,141 | 1,141 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 10 | (10) | ||||||||||||
Net income | 1,151 | |||||||||||||
Currency translation adjustment | 8 | 9 | (1) | |||||||||||
Pension liability adjustment | (3) | (3) | ||||||||||||
Cash flow hedge adjustment | (31) | (31) | ||||||||||||
Other comprehensive income (loss) | (25) | |||||||||||||
Other comprehensive income (loss), net of tax | (26) | (1) | ||||||||||||
Dividends | (158) | (158) | ||||||||||||
Repurchases of common stock, shares | [3] | (15,600,000) | ||||||||||||
Repurchases of common stock | [3] | (2,369) | (2,369) | |||||||||||
Share-based compensation, shares | 1,200,000 | |||||||||||||
Share-based compensation | $ 153 | 16 | 137 | |||||||||||
Ending balance, shares at Dec. 31, 2023 | 253,488,288 | 253,500,000 | [2] | |||||||||||
Ending balance, equity (deficit) attributable to Hilton stockholders at Dec. 31, 2023 | $ (2,360) | $ 3 | [2] | $ (8,393) | [2] | $ 10,968 | [2] | $ (4,207) | [2] | $ (731) | [2] | |||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2023 | 13 | $ 13 | [2] | |||||||||||
Ending balance, equity (deficit) at Dec. 31, 2023 | [2] | $ (2,347) | ||||||||||||
[1] Amount related to noncontrolling interests was less than $1 million. As of December 31, 2023 and 2022, 3.0 billion shares of preferred stock with a par value of $0.01 were authorized with no such shares issued. Beginning January 1, 2023, amount includes excise tax as imposed by the Inflation Reduction Act of 2022. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Deficit) (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Stockholders' Equity [Abstract] | ||
Preferred stock, authorized shares | 3,000,000,000 | 3,000,000,000 |
Preferred stock, par value (per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued shares | 0 | 0 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | OrganizationHilton 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 global hospitality companies and is engaged in managing, franchising, owning and leasing hotels and resorts, and licensing its intellectual property ("IP"), including brand names, trademarks and service marks. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation These consolidated financial statements present the consolidated financial position of Hilton as of December 31, 2023 and 2022 and the results of operations for the years ended December 31, 2023, 2022 and 2021. Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and other non-wholly owned entities in which we have a controlling financial interest, including variable interest entities ("VIEs") for which we are the primary beneficiary. Non-wholly owned entities in which we have a controlling financial interest generally comprise majority owned entities that own or lease real estate. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by third-party ownership interests. If the entity is considered to be a VIE, we evaluate whether we are the primary beneficiary and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interest in the entity, and, if we do, we consolidate the entity. We hold interests in VIEs, for which we are not the primary beneficiary, that may provide us with the option to acquire an additional interest in such an entity at a predetermined amount, if certain contingent events occur. In a circumstance that we exercise or have the ability to exercise our option to acquire an additional interest in a VIE, we would 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 on the date that we became the primary beneficiary. If such consolidation is required, the amounts may be material. All material intercompany transactions and balances have been eliminated in consolidation. References in these financial statements to net income (loss) attributable to Hilton stockholders and Hilton stockholders' equity (deficit) do not include noncontrolling interests, which represent the third-party ownership interests of our consolidated, non-wholly owned entities and are reported separately. Use of Estimates The preparation of financial statements in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Summary of Significant Accounting Policies Revenue Recognition Revenues are primarily derived from: (i) fees earned from management and franchise contracts with third-party hotel owners; (ii) fees earned from license agreements with strategic partners, including co-branded credit card providers, and Hilton Grand Vacations Inc. ("HGV"); and (iii) our owned and leased hotels. The majority of our performance obligations are promises to provide a series of distinct goods or services, for which we receive variable consideration through our management and franchise fees or fixed consideration through our owned and leased hotels. We allocate the variable fees to the distinct services to which they relate applying the prescribed variable consideration allocation guidance, and we allocate fixed consideration to the related performance obligations based on their estimated standalone selling prices. We do not adjust the promised amount of consideration for the effects of a significant financing component when it is our expectation, at contract inception, that the period between our transfer of a promised good or service to a customer and when the customer pays for that good or service will be twelve months or less, which it is in substantially all cases. Additionally, we do not typically include extended payment terms in our contracts with customers. Management and franchise revenues We identified the following performance obligations in connection with our management and franchise contracts: • IP licenses grant the licensee the right to access our IP, including brand IP, reservations systems and property management systems. • Hotel management services include providing day-to-day management services in the operation of the hotels for the hotel owners. • Development services include providing consultative services (e.g., design assistance and contractor selection) to the third-party hotel owner to assist with the construction of the hotel prior to the hotel opening. • Pre-opening services include providing services (e.g., advertising, budgeting, e-commerce strategies and food and beverage testing) to the third-party hotel owner to assist in preparing for the hotel opening. • Rewards from Hilton Honors, our guest loyalty program, provide substantive rights for free or discounted goods or services to Hilton Honors members. Each of the identified performance obligations is considered to be a series of distinct services transferred over time, except for the performance obligation related to rewards from Hilton Honors, which is satisfied at the point in time when a Hilton Honors point is redeemed by the Hilton Honors member. For the performance obligations other than the one related to rewards from the Hilton Honors program, while the underlying activities may vary from day to day, the nature of the commitments are the same each day, and the property owner can independently benefit from each day's services. Management and franchise fees are typically based on the sales or usage of the underlying hotel, with the exception of fixed upfront fees, which usually represent an insignificant portion of the transaction price. Franchise and licensing fees represent fees earned in connection with the licensing of one of our brands, usually under a long-term contract with a hotel owner, as well as fees from license agreements for the use of our IP, and include the following: • Royalty fees are generally based on a percentage of the hotel's monthly gross room revenue and, in some cases, may also include a percentage of gross food and beverage revenues and other revenues, as applicable. These fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Application, initiation and other fees are charged when: (i) new hotels enter our system; (ii) there is a change of ownership of a hotel; or (iii) contracts with hotels already in our system are extended. These fees are typically fixed and collected upfront and are recognized as revenue over the term of the franchise contract. We do not consider this advance consideration to include a significant financing component, since it is used to protect us from the hotel owner failing to adequately complete some or all of its obligations under the contract, including establishing and maintaining the hotel in accordance with our standards. • Licensing fees for the use of our IP are earned from: (i) strategic partnerships, including from co-branded credit card arrangements, which are recognized as revenue when points for Hilton Honors are issued, generally as spend with the strategic partner or co-branded credit card provider occurs (see further discussion below under "Hilton Honors") and (ii) a license agreement with HGV for its timeshare business, which are typically billed monthly and recognized as revenue at the same time the fees are billed. Management fees represent fees earned from hotels that we manage, usually under a long-term contract with a hotel owner, and include the following: • Base management fees are generally based on a percentage of the hotel's monthly gross operating revenue. Base management fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Incentive management fees are generally based on a percentage of the hotel's operating profits, normally over a one-calendar year period (the "incentive period"), and, in some cases, may be subject to a stated return threshold to the hotel owner. Incentive management fee revenue is recognized on a monthly basis, but only to the extent the cumulative fee earned does not exceed the probable fee for the incentive period. Incentive management fee payment terms vary, but they are generally billed and collected monthly or annually upon completion of the incentive period. Consideration paid or anticipated to be paid to incentivize hotel owners to enter into management and franchise contracts with us is amortized over the life of the applicable contract, generally including any extension periods that are at our sole option, as a reduction to base and other management fees and franchise and licensing fees, respectively. We do not estimate revenues expected to be recognized related to our unsatisfied performance obligations for our: (i) royalty fees, since they are considered sales-based royalty fees recognized as hotel room sales occur in exchange for licenses of our IP over the terms of the franchise contracts and (ii) other licensing fees, base management fees and incentive management fees since they are allocated entirely to the wholly unsatisfied promise to transfer IP or provide management services, respectively, which form part of a single performance obligation in a series, over the term of the individual contract. Other revenues from managed and franchised properties represent amounts that are contractually reimbursed to us by property owners, either directly as costs are incurred or indirectly through monthly program fees related to certain costs and expenses supporting the operations of the related properties, and include the following: • Direct reimbursements primarily include payroll and related costs of managed hotels, if the managed hotel employees are legally employed by us. Direct reimbursements are contractually reimbursed to us by the hotel owners as expenses are incurred. We have no legal responsibility for the employee liabilities related to certain of our managed properties, predominately those located outside of the U.S., where we are not the legal employer, as well as the employees or the liabilities associated with operating franchised properties. Revenue is recognized based on the amount of expenses incurred by Hilton, which are presented as other expenses from managed and franchised properties in our consolidated statement of operations, that are then reimbursed to us by the property owner typically on a monthly basis, which results in no net effect on operating income (loss) or net income (loss). • Indirect reimbursements include marketing and sales expenses and other expenses associated with our brand programs and shared services, which are paid from program fees collected by Hilton from our managed and franchised properties. Indirect reimbursements are typically billed and collected monthly, based on the underlying hotel's sales or usage (e.g., gross room revenue or number of reservations processed), and revenue is generally recognized as services are provided. System implementation fees charged to property owners are deferred and recognized as revenue over the term of the management or franchise contract. The expenses incurred by Hilton to operate the marketing, sales and brand programs and shared services are recognized as incurred and are presented as other expenses from managed and franchised properties in our consolidated statement of operations. The management and franchise fees and reimbursements from third-party property owners are allocated to the performance obligations and the distinct services to which they relate using their estimated standalone selling prices. The terms of the fees earned under the contract relate to a specific outcome of providing the services (e.g., hotel room sales) or to Hilton's efforts (e.g., costs) to satisfy the performance obligations. Using time as the measure of progress, we recognize fee revenue and indirect reimbursements in the period earned per the terms of the contract and revenue related to direct reimbursements in the period in which the cost is incurred. Our accounts receivable primarily consist of amounts due from the hotel owners with whom we have management and franchise contracts, including the reimbursements that we have incurred on behalf of our managed and franchised properties. Owned and leased hotels revenues We identified the following performance obligations in connection with our owned and leased hotels revenues, with such revenues recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: • Cancellable room reservations or ancillary services are typically satisfied as the good or service is transferred to the hotel guest, which is generally when the room stay occurs. • Noncancellable room reservations and banquet or conference reservations represent a series of distinct goods or services provided over time and satisfied as each distinct good or service is provided, which is reflected by the duration of the reservation. • Substantive rights for free or discounted goods or services are satisfied when the underlying free or discounted good or service is provided to the hotel guest. • Other ancillary goods and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest. • Components of package reservations for which each component could be sold separately to other hotel guests are considered separate performance obligations and are satisfied as set forth above. Owned and leased hotels revenues primarily consist of hotel room sales, revenues from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and sales of other ancillary goods and services (e.g., parking) related to consolidated owned and leased hotels. Revenue is recognized when a room stay occurs or goods and services have been provided. Payment terms typically align with when the goods and services are provided. Owned and leased hotels revenues are reduced upon issuance of Hilton Honors points for Hilton Honors members' paid stay transactions and are recognized when Hilton Honors points are redeemed for a free or discounted stay at an owned or leased hotel (see the "Hilton Honors" section below for additional information). Although the transaction prices of hotel room sales, goods and other services are generally fixed and based on the respective room reservation or other agreement, an estimate to reduce the transaction price is required if a discount is expected to be provided to the customer. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. On occasion, the hotel may also provide the customer with a substantive right to a free or discounted good or service in conjunction with a room reservation or banquet contract (e.g., free breakfast or free room night for every four room nights reserved). This substantive right is considered a separate performance obligation to which a portion of the transaction price is allocated based on the estimated standalone selling price of the good or service, adjusted for the likelihood the hotel guest will exercise such right, and it is recognized as revenue when the good or service is redeemed. Other revenues Other revenues primarily includes revenues generated by our purchasing operations for our owned, leased, managed and franchised hotels, as well as from properties outside of our system that participate in our purchasing programs. Purchasing revenues include any amounts we expect to retain for vendor rebate arrangements related to purchases made directly by managed and franchised properties, as well as properties outside of our system, through our purchasing programs. Taxes and fees collected on behalf of governmental agencies We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees, and, therefore, they are not included in our measurement of transaction prices. We have elected to present revenue net of sales taxes and other similar taxes. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of three months or less. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents include cash balances established as collateral for certain guarantees and insurance, including self-insurance and furniture, fixtures and equipment replacement ("FF&E") reserves required under certain lease agreements. Allowance for Credit Losses An allowance for credit losses is provided on our financial instruments, primarily accounts receivable and notes receivable, which are included in other current assets and other assets in our consolidated balance sheet. Expected credit losses are also recorded on off-balance-sheet commitments, such as guarantees, letters of credit and financing commitments. Our expected credit losses are based on historical collection activity, the nature of the financial instrument, geographic considerations, current and forecasted business conditions and, in the case of off-balance-sheet commitments, the probability that funding will be required. Goodwill Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. In connection with the 2007 transaction whereby we became a wholly owned subsidiary of affiliates of Blackstone Inc. (the "Merger"), we recorded goodwill representing the excess purchase price over the fair value of the identified assets and liabilities. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if indicators of impairment exist. Our reporting units are the same as our operating segments as described in Note 18: "Business Segments." We evaluate goodwill for potential impairment by comparing the carrying value of the reporting unit to its fair value. When we evaluate goodwill for potential impairment, generally, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If we determine qualitatively that it is more likely than not that the fair value of a reporting unit is less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, including goodwill. The estimated fair value is based on forward-looking estimates of performance and cash flows of our reporting units, which are based on historical operating results, adjusted for current and expected future market conditions, as well as various internal projections and external sources. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss would be recognized in our consolidated statement of operations in an amount equal to the excess of the carrying value over the estimated fair value, limited to the total amount of goodwill allocated to that reporting unit. As of December 31, 2023 and 2022, our goodwill balance was only attributable to our management and franchise reporting unit, which had no accumulated impairment losses as of either date. The changes in our goodwill balances during the years ended December 31, 2023 and 2022 were due to foreign currency translation. Brands Brands intangible assets were initially recorded at their fair value at the time of the Merger for the portfolio of brands that existed at the time of the Merger, using the relief-from-royalty valuation approach for owned and leased hotels and the excess earnings method for managed and franchised hotels. There are no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these brands, and, accordingly, the useful lives of these brands are considered to be indefinite. A portion of our brands intangible assets are denominated in foreign currencies and, as such, a period over period change in these assets is attributable to fluctuations in foreign currency exchange rates. We have not recorded any intangible assets for brands that were launched subsequent to the Merger. We evaluate our indefinite-lived brands intangible assets for impairment on an annual basis or at other times during the year if indicators of impairment exist. When we evaluate our brands intangible assets for potential impairment, generally, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the asset is less than its carrying value. If we determine qualitatively that the fair value of the asset is more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The estimated fair value of the brand intangible asset is based on internal projections of expected future cash flows generated by the brand. If the carrying value of the brand intangible asset exceeds its estimated fair value, an impairment loss would be recognized in our consolidated statement of operations in an amount equal to the excess of the carrying value over the estimated fair value. Intangible Assets with Finite Useful Lives We capitalize consideration paid to incentivize hotel owners to enter into management and franchise contracts with us as contract acquisition costs and the incremental costs to obtain the contracts as development commissions and other, both of which are generally fixed. We also capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses, as well as internal and external costs incurred in connection with the development of upgrades or enhancements that result in additional information technology functionality. Additionally, certain finite-lived intangible assets were initially recorded at their fair value at the time of the Merger. As of January 1, 2021 the only remaining finite-lived intangible assets resulting from the Merger related to leases, international management contracts and our Hilton Honors guest loyalty program. The assets related to the international management contracts and Hilton Honors, which both had useful lives of 16 years, were fully amortized during the year ended December 31, 2023. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which for contract acquisition costs and development commissions and other is the contract term, generally including any extension periods that are at our sole option. The estimated useful lives of our finite-lived intangible assets are generally as follows: (i) management contract acquisition costs and development commissions and other (20 to 30 years); (ii) franchise contract acquisition costs and development commissions and other (10 to 20 years); (iii) leases (16 to 35 years); and (iv) capitalized software costs (3 years). In our consolidated statement of operations, the amortization of these intangible assets, excluding contract acquisition costs, is included in depreciation and amortization expenses and the amortization of contract acquisition costs is recognized as a reduction to franchise and licensing fees or base and other management fees, depending on the contract type. Costs incurred prior to the acquisition of a contract, such as external legal costs, are expensed as incurred and included in general and administrative expenses in our consolidated statement of operations. Cash flows for contract acquisition costs and development commissions and other are included as operating activities in our consolidated statement of cash flows, and cash flows for capitalized software costs are included as investing activities. We evaluate the carrying value of all finite-lived intangible assets for indicators of impairment, and, if such indicators exist, we perform an analysis to determine the recoverability of the asset group by comparing the expected undiscounted future cash flows to the net carrying value of the asset group. If the carrying value of the asset group is not recoverable and it exceeds the estimated fair value of the asset group, we recognize an impairment loss in our consolidated statement of operations for the amount by which the carrying value exceeds the estimated fair value. We allocate the impairment loss related to the asset group among the various assets within the asset group pro rata based on the relative carrying values of the respective assets. Property and Equipment Property and equipment are recorded at cost. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Right-of-use ("ROU") assets of finance leases are included in property and equipment, net in our consolidated balance sheet; refer to "Leases" below for additional information. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally: (i) 8 to 40 years for buildings and improvements; (ii) 3 to 8 years for furniture and equipment; and (iii) 3 to 5 years for computer equipment. Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the remaining lease term. We evaluate the carrying value of our property and equipment for indicators of impairment, and, if such indicators exist, we perform an analysis to determine the recoverability of the asset group by comparing the estimated undiscounted future cash flows to the net carrying value of the asset group. If the carrying value of the asset group is not recoverable and it exceeds the estimated fair value of the asset group, we recognize an impairment loss in our consolidated statement of operations for the amount by which the carrying value exceeds the estimated fair value. We allocate the impairment loss related to the asset group among the various assets within the asset group pro rata based on the relative carrying values of the respective assets. 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 lease upon modification of the contract. For contracts in which we are the lessee that contain fixed payments for both lease and non-lease components, we have elected to account for these components as a single lease component. At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a 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 lessor options to renew the lease within the lessor's control and 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. Current and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current 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 sheet. The ROU asset is measured as 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, deferred rent and lease incentives. In our consolidated balance sheet, ROU assets of operating leases are included in operating lease right-of-use assets and ROU assets of finance leases are included in property and equipment, net. We evaluate the carrying value of our ROU assets for indicators of impairment, and, if such indicators exist, we perform an analysis to determine the recoverability of the asset group by comparing the estimated undiscounted future cash flows to the net carrying value of the asset group. If the carrying value of the asset group is not recoverable and it exceeds the estimated fair value of the asset group, we recognize an impairment loss in our consolidated statement of operations for the amount by which the carrying value exceeds the estimated fair value. We allocate the impairment loss related to an asset group among the various assets within the asset group pro rata based on the relative carrying values of the respective assets. Depending on the individual agreement, our operating leases may 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 hotel's revenues or profits or result from changes in inflationary indices; 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 FF&E 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 hotels expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statement of operations. For operating leases for which the ROU asset has been impaired, the lease expense is determined as the sum of the amortization of the ROU asset remaining after impairment, if any, on a straight-line basis over the remaining term of the lease and the accretion of the lease liability based on the discount rate applied to the lease liability. For finance leases, the amortization of the ROU asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expenses and other expenses from managed and franchised properties in our consolidated statement of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statement of operations. Contract Liabilities Contract liabilities primarily relate to: (i) amounts received when points are issued for the Hilton Honors program, but for which revenue is not yet recognized, since the related points are not yet redeemed; and (ii) advance consideration received from hotel owners for services considered to be part of the contract's performance obligations, such as application, initiation and other fees and system implementation fees. Contract liabilities related to amounts received for points issued for the Hilton Honors program are recognized as revenue when the points are redeemed for a free or discounted good or service by the Hilton Honors program member. Contract liabilities related to advance consideration received from hotel owners are recognized ratably as revenue over the term of the rel |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customer | Revenues from Contracts with Customers Contract Liabilities The following table summarizes the activity of our contract liabilities during the year ended December 31, 2023: (in millions) Balance as of December 31, 2022 $ 1,331 Cash received in advance and not recognized as revenue 687 Revenue recognized (1) (378) Other (2) (119) Balance as of December 31, 2023 $ 1,521 ____________ (1) Primarily related to Hilton Honors, including co-branded credit card arrangements. (2) Represents changes in estimated transaction prices for our performance obligations related to the issuance of Hilton Honors points, which had no effect on revenues. Performance Obligations As of December 31, 2023, deferred revenues for unsatisfied performance obligations consisted of: (i) $769 million related to Hilton Honors that will be recognized as revenue over approximately the next two years; (ii) $733 million related to advance consideration received from hotel owners for application, initiation and other fees and system implementation fees; and (iii) $19 million related to other obligations. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of December 31, 2023 and 2022, we consolidated two VIEs that each lease one hotel property, both of which are located in Japan. 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 losses and the right to receive benefits that could be significant to each of the VIEs individually. The assets of our consolidated VIEs are only available to settle the obligations of the respective entities, and the liabilities of the consolidated VIEs are non-recourse to us. Our consolidated balance sheets include the assets and liabilities of these entities, including the effect of foreign currency translation, which primarily comprised the following: December 31, 2023 2022 (in millions) Cash and cash equivalents $ 46 $ 29 Accounts receivable, net 17 13 Property and equipment, net 37 45 Deferred income tax assets 32 52 Other non-current assets 43 55 Accounts payable, accrued expenses and other 29 21 Long-term debt (1)(2) 95 152 ____________ (1) Includes finance lease liabilities of $86 million and $115 million as of December 31, 2023 and 2022, respectively. (2) Includes current maturities of $19 million and $22 million as of December 31, 2023 and 2022, respectively. During the year ended December 31, 2023, our consolidated VIEs made payments on borrowings that were outstanding as of December 31, 2022, including partial prepayments of JPY1.5 billion (approximately $10 million) on borrowings that have a maturity date in 2026 and full repayments of JPY2.0 billion (approximately $14 million) on borrowings that had original maturity dates in 2028 and 2029. |
Loss on Investments in Unconsol
Loss on Investments in Unconsolidated Affiliate | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Loss on Investments in Unconsolidated Affiliate | Loss on Investments in Unconsolidated Affiliate We provide equity and debt financing to certain unconsolidated affiliates with an objective of supporting the growth of our network. The assets relating to these investments are classified as other current assets or other non-current assets in our consolidated balance sheet based on the expected maturity date of the respective investment. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Finite-lived intangible assets were as follows: December 31, 2023 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Contract acquisition costs $ 1,183 $ (244) $ 939 Development commissions and other 162 (37) 125 $ 1,345 $ (281) $ 1,064 Other intangible assets: Capitalized software costs $ 712 $ (576) $ 136 Leases (1)(2) 126 (89) 37 $ 838 $ (665) $ 173 December 31, 2022 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: International management contracts recorded at Merger (1) $ 293 $ (278) $ 15 Contract acquisition costs 961 (206) 755 Development commissions and other 149 (32) 117 $ 1,403 $ (516) $ 887 Other intangible assets: Capitalized software costs $ 615 $ (515) $ 100 Leases (1) 124 (80) 44 Hilton Honors (1) 335 (318) 17 $ 1,074 $ (913) $ 161 ____________ (1) Represents intangible assets that were initially recorded at fair value at the time of the Merger. (2) During the year ended December 31, 2023 we recognized $4 million of impairment losses related to our leases intangible assets in our consolidated statement of operations; see Note 11: "Fair Value Measurements" for additional information. Amortization of our finite-lived intangible assets was as follows: Year Ended December 31, 2023 2022 2021 (in millions) Recognized in depreciation and amortization expenses (1) $ 104 $ 116 $ 135 Recognized as a reduction of franchise and licensing fees and base and other management fees 43 38 32 ____________ (1) Includes amortization expense of $37 million, $45 million and $47 million for the years ended December 31, 2023, 2022 and 2021, respectively, associated with assets that were initially recorded at fair value at the time of the Merger, some of which fully amortized during 2023. As of December 31, 2023, w e estimate future amortization expense of our finite-lived intangible assets that will be recognized in depreciation and amortization expenses to be as follows: Year (in millions) 2024 $ 76 2025 57 2026 34 2027 12 2028 11 Thereafter 108 $ 298 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment were as follows: December 31, 2023 2022 (in millions) Land $ 8 $ 9 Buildings and leasehold improvements 364 355 Furniture and equipment 407 299 Construction-in-progress 37 24 Finance lease ROU assets 86 82 902 769 Accumulated depreciation and amortization (1) (520) (489) $ 382 $ 280 ____________ (1) During the years ended December 31, 2023, 2022 and 2021, depreciation and amortization expenses on property and equipment was $43 million, $46 million and $53 million, respectively. Property and equipment, net attributed to U.S. operations was $183 million and $111 million as of December 31, 2023 and 2022, respectively, and to operations outside the U.S. was $199 million and $169 million, respectively, most significantly in the United Kingdom ("U.K.") and Japan. During the year ended December 31, 2023, we recognized $1 million of impairment losses in our consolidated statement of operations related to property and equipment, net; see Note 11: "Fair Value Measurements" for additional information. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts Payable, Accrued Expenses and Other Accounts payable, accrued expenses and other were as follows: December 31, 2023 2022 (in millions) Accrued employee compensation and benefits $ 592 $ 555 Accounts payable 457 368 Operating lease liabilities, current 116 112 Insurance reserves, current 99 86 Other current liabilities and accrued expenses (1) 715 669 $ 1,979 $ 1,790 ____________ (1) |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term Debt Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of December 31, 2023, were as follows: December 31, 2023 2022 (in millions) Senior secured term loan facility due 2026 $ — $ 2,619 Senior secured term loan facility with a rate of 7.21%, due 2028 1,000 — Senior secured term loan facility with a rate of 7.46%, due 2030 2,119 — Senior notes with a rate of 5.375%, due 2025 (1) 500 500 Senior notes with a rate of 4.875%, due 2027 (1) 600 600 Senior notes with a rate of 5.750%, due 2028 (1) 500 500 Senior notes with a rate of 3.750%, due 2029 (1) 800 800 Senior notes with a rate of 4.875%, due 2030 (1) 1,000 1,000 Senior notes with a rate of 4.000%, due 2031 (1) 1,100 1,100 Senior notes with a rate of 3.625%, due 2032 (1) 1,500 1,500 Finance lease liabilities with a weighted average rate of 6.01%, due 2024 to 2030 (2) 139 164 Other debt of consolidated VIEs with a weighted average rate of 1.01%, due 2024 to 2026 (2) 9 37 9,267 8,820 Less: unamortized deferred financing costs and discounts (71) (73) Less: current maturities of long-term debt (3) (39) (39) $ 9,157 $ 8,708 ____________ (1) These notes are collectively referred to as the Senior Notes and are jointly and severally guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than Hilton Domestic Operating Company Inc. ("HOC"), an indirect wholly owned subsidiary of the Parent and the issuer of all of the series of Senior Notes. (2) Long-term debt of our consolidated variable interest entities is included in finance lease liabilities and other debt of consolidated VIEs as applicable. Refer to Note 4: "Consolidated Variable Interest Entities" for additional information on debt payments that were made by our consolidated VIEs during the year ended December 31, 2023. (3) Represents current maturities of finance lease liabilities and borrowings of consolidated VIEs. Senior Secured Credit Facilities Our senior secured credit facilities consist of a senior secured revolving credit facility (the "Revolving Credit Facility") and senior secured term loan facilities (the "Term Loans"). The obligations under our senior secured credit facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than HOC, the named borrower of the senior secured credit facilities. In November 2023, we amended the credit agreement governing our Term Loans pursuant to which $1.0 billion of outstanding Term Loans were converted into a new tranche of Term Loans due June 2028 with an interest rate of SOFR plus 185 basis points and $1.6 billion of outstanding Term Loans were converted into a new tranche, which was also increased by $500 million of aggregate principal amount, due November 2030 with an interest rate of SOFR plus 210 basis points. In connection with the amendment of the Term Loans, we incurred $21 million of original issue discounts and fees, of which $11 million was recognized as a reduction to the outstanding debt balance in our consolidated balance sheet and will be amortized to interest expense through the respective maturity dates of the Term Loans. The remaining $10 million was recognized in other non-operating income, net in our consolidated statement of operations for the year ended December 31, 2023. In January 2023, we amended the credit agreement governing our Revolving Credit Facility to increase the borrowing capacity from $1.75 billion to $2.0 billion, $250 million of which is available in the form of letters of credit, and extended the maturity date to January 2028. In connection with this amendment, we incurred approximately $9 million of debt issuance costs, which were recognized in other non-current assets in our consolidated balance sheet and will be amortized to interest expense through the maturity date of the Revolving Credit Facility. No debt amounts were outstanding under the Revolving Credit Facility as of December 31, 2023, which had an available borrowing capacity of $1,913 million after considering $87 million of outstanding letters of credit. Senior Notes During the year ended December 31, 2021, we completed financing transactions, whereby we issued senior unsecured notes and used the net proceeds from the issuance, together with available cash, to redeem outstanding senior unsecured notes. In connection with the redemption, we paid a redemption premium of $55 million and accelerated the recognition of the unamortized deferred financing costs on the redeemed notes of $14 million. These amounts were included in loss on debt extinguishment in our consolidated statement of operations for the year ended December 31, 2021. Debt Maturities The contractual maturities of our long-term debt as of December 31, 2023 were as follows: Year (in millions) 2024 $ 39 2025 529 2026 26 2027 613 2028 1,514 Thereafter 6,546 $ 9,267 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other Liabilities Other long-term liabilities were as follows: December 31, 2023 2022 (in millions) Other long-term tax liabilities $ 645 $ 349 Insurance reserves 154 146 Deferred employee compensation and benefits 86 91 Pension obligations 34 40 Other 79 66 $ 998 $ 692 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below: December 31, 2023 Hierarchy Level Carrying Value (1) Level 1 Level 2 Level 3 (in millions) Assets: Interest rate swap $ 75 $ — $ 75 $ — Liabilities: Long-term debt (2) 9,119 5,631 — 3,129 December 31, 2022 Hierarchy Level Carrying Value (1) Level 1 Level 2 Level 3 (in millions) Assets: Interest rate swaps $ 108 $ — $ 108 $ — Liabilities: Long-term debt (2) 8,619 5,292 — 2,616 ____________ (1) The fair values of cash equivalents and restricted cash equivalents approximate their carrying values due to their short-term maturities. The fair values of all other financial instruments not included in these tables are estimated to be equal to their carrying values. (2) The carrying values and fair values exclude the deduction for unamortized deferred financing costs and any applicable discounts, as well as all finance lease liabilities and other debt of consolidated VIEs; refer to Note 9: "Debt" for additional information. We measured our interest rate swaps at fair value, which was determined 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. During the year ended December 31, 2023, we measured a financial asset at fair value on a non-recurring basis and recognized an other-than-temporary impairment loss of $44 million in "Loss on investments in unconsolidated affiliate" in our consolidated statement of operations. In March 2023, the financial asset, an equity method investment in the Fund, which derives its market value from the underlying hotel assets it owns, failed to comply with its debt agreements, as discussed in Note 5: "Loss on Investments in Unconsolidated Affiliate." Given the lack of an active market or observable inputs for the fair value of the Fund, we determined that at March 31, 2023 our investment had a fair value of zero using Level 3 valuation inputs. During the year ended December 31, 2023, the forecasted operating results of certain leased hotels caused us to evaluate the carrying value of the affected properties for impairment. We estimated the fair value of the related assets using discounted cash flow analyses and Level 3 valuation inputs including growth rates and discount rates that reflected the risk profile of the underlying cash flows and the individual markets where the assets are located. Estimations of the stabilized growth rates approximated 1.8 percent and of the discount rates ranged from 8.0 percent to 11.3 percent, with the weighted average, based on relative impairment losses, being at the lower end of the range. As a result of these non-recurring fair value measurements, we recognized impairment losses on these assets, all of which are in our ownership segment, of $38 million during the year ended December 31, 2023. The fair values of these assets as of December 31, 2023, the date of measurement, were as follows: (in millions) Other intangible assets, net $ 3 Operating lease right-of-use assets 69 Property and equipment, net 1 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Lessee Lease Disclosures | Leases We lease hotel properties, land, corporate office space and equipment used at hotels and corporate offices, with our most significant lease liabilities relating to hotel properties. As of December 31, 2023, we leased 41 hotels under operating leases and five hotels under finance leases, two of which were the liabilities of consolidated VIEs, which are non-recourse to us. Our hotel leases expire at various dates, with varying renewal and termination options. During the year ended December 31, 2023, we recognized $33 million of impairment losses in our consolidated statement of operations related to certain operating lease ROU assets; see Note 11: "Fair Value Measurements" for additional information. Supplemental balance sheet information related to leases was as follows: December 31, 2023 2022 (dollars in millions) Operating leases: Operating lease right-of-use assets (1) $ 618 $ 662 Accounts payable, accrued expenses and other 116 112 Operating lease liabilities 808 832 Finance leases: Property and equipment, net $ 36 $ 33 Current maturities of long-term debt 34 38 Long-term debt 105 126 Weighted average remaining lease term: Operating leases 10.6 years 11.3 years Finance leases 5.1 years 6.1 years Weighted average discount rate: Operating leases 4.33 % 4.22 % Finance leases 6.01 % 5.90 % ____________ (1) Includes $73 million and $78 million attributable to U.S. operations as of December 31, 2023 and 2022, respectively, and $545 million and $584 million to operations outside the U.S., respectively, most significantly in the U.K. and Germany for both years. The components of lease expense were as follows: Year Ended December 31, 2023 2022 2021 (in millions) Operating lease expense for fixed payments $ 118 $ 113 $ 125 Finance lease expense: Amortization of ROU assets 21 21 23 Fixed interest on lease liabilities 9 10 13 Variable lease expense (1) 179 139 35 ____________ (1) Includes amounts related to variable rent expense for operating leases and variable interest expense for finance leases. Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2023 2022 2021 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 137 $ 157 $ 187 Financing cash flows from finance leases 40 42 40 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 39 135 45 Finance leases 24 21 17 Our future minimum lease payments as of December 31, 2023 were as follows: Operating Finance Year (in millions) 2024 $ 153 $ 41 2025 137 35 2026 122 27 2027 115 16 2028 113 17 Thereafter 535 28 Total minimum lease payments 1,175 164 Less: imputed interest (251) (25) Total lease liabilities $ 924 $ 139 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in millions) U.S. income before income taxes $ 1,301 $ 1,320 $ 631 Foreign income (loss) before income taxes 391 414 (71) Income before income taxes $ 1,692 $ 1,734 $ 560 The components of our provision for income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in millions) Current: Federal $ 586 $ 306 $ 89 State 136 81 45 Foreign 83 56 23 Total current 805 443 157 Deferred: Federal (250) 16 51 State (83) 6 (14) Foreign 69 12 (41) Total deferred (264) 34 (4) Total provision for income taxes $ 541 $ 477 $ 153 Reconciliations of the provision for income taxes at the U.S. statutory rate to the provision for income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in millions) Statutory U.S. federal income tax provision $ 355 $ 364 $ 118 State income taxes, net of U.S. federal income tax benefit 45 65 22 Impact of foreign operations 33 35 8 Changes in deferred tax asset valuation allowances 40 (5) 34 Income tax rate changes (9) — (45) Provision for uncertain tax positions 69 14 15 Other, net 8 4 1 Provision for income taxes $ 541 $ 477 $ 153 Deferred Income Taxes Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The tax effects of the temporary differences and carryforwards that give rise to our net deferred taxes were as follows: December 31, 2023 2022 (in millions) Deferred tax assets: Net tax loss carryforwards and carrybacks $ 604 $ 641 Compensation 124 117 Reserves 81 66 Operating and finance lease liabilities 290 301 Deferred income 558 271 Foreign tax credit carryforwards 63 49 Other 114 102 Total gross deferred tax assets 1,834 1,547 Less: valuation allowance (698) (649) Deferred tax assets 1,136 898 Deferred tax liabilities: Brands (1,143) (1,151) Operating and finance lease ROU assets (195) (206) Other (59) (72) Deferred tax liabilities (1,397) (1,429) Net deferred taxes $ (261) $ (531) As of December 31, 2023, we had gross U.S. separate return limitation year loss carryforwards and foreign operating loss carryforwards of $2.5 billion, resulting in deferred tax assets of $604 million. Approximately $26 million of our deferred tax assets as of December 31, 2023 related to loss carryforwards that will expire between 2024 and 2043 with less than $1 million of that amount expiring in 2024. Approximately $578 million of our deferred tax assets as of December 31, 2023 related to loss carryforwards that are not subject to expiration. We believe that it is more likely than not that the benefit from certain U.S. and foreign loss carryforwards will not be realized. In recognition of this assessment, we provided valuation allowances totaling $498 million as of December 31, 2023 on the deferred tax assets relating to these loss carryforwards. As of December 31, 2023, we also had deferred tax assets for U.S. tax credit carryforwards of $63 million that will expire between 2029 and 2033, for which we have provided full valuation allowances. Tax Uncertainties 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 December 31, 2023, the Company's federal income tax returns remain subject to examination by the IRS for tax years from 2011 through 2023. Various income tax returns filed with state, local and foreign jurisdictions remain subject to examination by the applicable taxing authorities. Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2023 2022 2021 (in millions) Balance at beginning of year $ 337 $ 375 $ 451 Additions for tax positions related to prior years 268 1 33 Additions for tax positions related to the current year 4 3 2 Reductions for tax positions related to prior years (2) (32) (39) Settlements (48) — (66) Lapse of statute of limitations (4) (5) (2) Currency translation adjustment — (5) (4) Balance at end of year $ 555 $ 337 $ 375 In October 2023, the U.S. Tax Court issued an opinion deciding that a third-party taxpayer was not entitled to apply the method of accounting provided for in Treasury Regulation Section 1.451-4 to its hotel loyalty program. We currently apply this method of accounting to our guest loyalty program for federal income tax purposes. Based on this decision, we reassessed our uncertain tax positions and increased our total uncertain tax position reserves related to our guest loyalty program to $263 million as of December 31, 2023. In June 2023, we received a draft of proposed adjustments from the IRS regarding our 2016 transfer of certain IP to a foreign jurisdiction that would increase taxable income for the tax years under audit from 2016 through 2018. If the IRS's proposed adjustments are upheld, future periods beyond the years currently under audit would be similarly impacted. We disagree with the proposed adjustments, intend to vigorously contest them and are currently evaluating action, which could include litigation to dispute the adjustments. We previously recorded reserves of $73 million related to this matter. We evaluated the amount of benefit more-likely-than-not to be realized related to this issue based on this draft notice, and we have determined that our existing reserves for unrecognized tax benefits accurately reflect the estimated benefit that we do not expect to realize related to this issue. We recognize interest and penalties accrued related to uncertain tax positions in income tax benefit (expense) in our consolidated statement of operations. During the years ended December 31, 2023, 2022 and 2021, we recognized income tax expense related to interest and penalties of $72 million, $17 million and $16 million, respectively. As of December 31, 2023 and 2022, we had accrued approximately $150 million and $79 million, respectively, for interest and penalties related to our unrecognized tax benefits in our consolidated balance sheets. Included in the balances of unrecognized tax benefits as of December 31, 2023 and 2022 were $314 million and $337 million, respectively, associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate. We believe resolutions of examinations with tax authorities are reasonably possible within the next 12 months. We are unable to estimate the amount of unrecognized tax benefits that will increase or decrease during the next 12 months, as this estimate could change depending on the nature and timing of settlements. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor multiple domestic and international employee benefit plans (the "pension plans"), and the benefits are based upon years of service and compensation. The employee benefit plan in the U.S. (the "Domestic Plan") covers certain employees not earning union benefits. This plan was frozen for participant benefit accruals in 1996; therefore, the projected benefit obligation is equal to the accumulated benefit obligation. The plan assets will be used to pay benefits due to employees for service through December 31, 1996. Since employees have not accrued additional benefits from that time, we do not utilize salary or pension inflation assumptions in calculating our benefit obligation for the Domestic Plan. The employee benefit plans covering certain of our international employees include: (i) a plan that covers employees in the U.K. (the "U.K. Plan"), which was frozen to further service accruals in 2013 and (ii) a number of smaller plans that cover employees in various countries around the world (the "International Plans"). We do not consider the International Plans to be material to our consolidated financial statements. The annual measurement date for all of our plans is December 31. We are required to recognize the funded status of our pension plans, which is the difference between the fair value of plan assets and the projected benefit obligations, in our consolidated balance sheet and make corresponding adjustment s for changes in the difference between the fair value of plan assets and the projected benefit obligations through accumulated other comprehensive income (loss), net of taxes. The following table presents the projected benefit obligation, fair value of plan assets, funded status and accumulated benefit obligation for the Domestic Plan and the U.K. Plan: Domestic Plan U.K. Plan 2023 2022 2023 2022 (in millions) Change in projected benefit obligation Benefit obligation at beginning of year $ 284 $ 370 $ 286 $ 490 Service cost — — 2 2 Interest cost 15 8 14 8 Actuarial loss (gain) (1) 5 (71) 4 (152) Effect of foreign currency exchange rates — — 16 (49) Benefits paid (23) (23) (13) (13) Benefit obligation at end of year $ 281 $ 284 $ 309 $ 286 Change in plan assets Fair value of plan assets at beginning of year $ 271 $ 374 $ 277 $ 505 Actual return on plan assets, net of expenses 25 (80) 10 (186) Employer contributions 5 — 9 21 Effect of foreign currency exchange rates — — 15 (50) Benefits paid (23) (23) (13) (13) Fair value of plan assets at end of year 278 271 298 277 Funded status at end of year (underfunded) (2) (3) (13) (11) (9) Accumulated benefit obligation $ 281 $ 284 $ 309 $ 286 ____________ (1) The actuarial gain during the year ended December 31, 2022 was primarily related to increases in the discount rate assumptions. (2) The underfunded amounts are recognized in other long-term liabilities in our consolidated balance sheets. Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan 2023 2022 2021 2023 2022 2021 (in millions) Net actuarial loss (gain) $ (3) $ 25 $ (38) $ 27 $ 39 $ (48) Amortization of prior service cost (4) (4) (4) — — — Amortization of net loss — (3) (5) (6) (3) (5) Net amount recognized $ (7) $ 18 $ (47) $ 21 $ 36 $ (53) The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan 2023 2022 2021 2023 2022 2021 (in millions) Service cost (1) $ 3 $ 3 $ 3 $ 2 $ 2 $ 2 Interest cost (2) 15 8 6 14 8 5 Expected return on plan assets (2) (20) (20) (19) (22) (23) (21) Amortization of prior service cost (2) 4 4 4 — — — Amortization of net loss (2) — 3 5 6 3 5 Net periodic pension cost (credit) $ 2 $ (2) $ (1) $ — $ (10) $ (9) ____________ (1) Recognized in owned and leased hotels expenses and general and administrative expenses, as applicable, in our consolidated statements of operations. (2) Recognized in other non-operating income, net in our consolidated statements of operations. The weighted average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan 2023 2022 2023 2022 Discount rate 5.2 % 5.6 % 4.5 % 4.8 % Salary inflation N/A N/A 2.4 2.6 Pension inflation N/A N/A 2.8 3.1 The weighted average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan 2023 2022 2021 2023 2022 2021 Discount rate 5.6 % 2.9 % 2.6 % 4.8 % 1.9 % 1.3 % Expected return on plan assets 6.8 6.3 6.3 7.3 5.0 4.5 Salary inflation N/A N/A N/A 2.6 2.6 2.1 Pension inflation N/A N/A N/A 3.1 3.1 2.7 The investment objectives for the various plans are preservation of capital, current income and long-term growth of capital. All plan assets are managed by third-party investment managers and do not include investments in Hilton stock. Asset allocations are reviewed periodically by the investment managers. Expected long-term returns on plan assets are determined using historical performance for return-seeking assets and liability-driven investments held by our plans, actual performance of plan assets and current and expected market conditions. Expected returns are formulated based on the target asset allocation. As of December 31, 2023 the target asset allocations for the Domestic Plan and U.K. Plan were 70 percent and 75 percent, respectively, in return-seeking assets, and 30 percent and 25 percent, respectively, in liability-driven investments and cash. The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category: Domestic Plan U.K. Plan December 31, December 31, 2023 2022 2023 2022 (in millions) Level 1 Cash $ — $ — $ 1 $ 13 Bond funds 12 6 — — Level 2 Bond funds — — 37 35 Net asset value (1) Cash equivalents — — 7 24 Bond funds — — 82 44 Common collective trusts 266 265 — — Alternative investments — — 121 111 Other — — 50 50 $ 278 $ 271 $ 298 $ 277 ____________ (1) Certain investments are measured at net asset value per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. As of December 31, 2023, the benefits expected to be paid in the next five years and in the aggregate for the five years thereafter were as follows: Domestic Plan U.K. Plan Year (in millions) 2024 $ 30 $ 14 2025 25 14 2026 25 15 2027 25 15 2028 24 15 2029-2033 107 81 $ 236 $ 154 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized share-based compensation expense of $169 million, $162 million and $193 million during the years ended December 31, 2023, 2022 and 2021, respective ly, which included amounts reimbursed by hotel owners, and the related tax benefit recognized was $48 million , $48 million and $54 million, respectively . In December 2020, we modified our then-outstanding performance shares in response to the COVID-19 pandemic to reward for results achieved prior to the pandemic and incentivize our recovery efforts, with a portion of the awards modified to vest based on continued service and the remaining portion of the awards to vest based on new performance measures. As a result of this modification, our share-based compensation expense for the years ended December 31, 2022 and 2021 includes incremental share-based compensation expense of $25 million and $70 million, respectively. As of December 31, 2023, unrecognized compensation costs for unvested awards under the 2017 Plan were approximately $123 million, which are expected to be recognized over a weighted average period of 1.7 years on a straight-line basis. As of December 31, 2023, there were 10.4 million remaining shares authorized for awards under the 2017 Plan, including any shares subject to awards outstanding under the 2013 Omnibus Incentive Plan that will become available for issuance under the 2017 Plan if such outstanding awards expire or are terminated or are canceled or forfeited. RSUs The following table provides information about our RSU grants: Year Ended December 31, 2023 2022 2021 Number of shares granted (in thousands) 604 507 589 Weighted average grant date fair value per share $ 146.19 $ 150.58 $ 123.13 Aggregate intrinsic value of shares vested (in millions) $ 84 $ 97 $ 94 The following table summarizes the activity of our RSUs during the year ended December 31, 2023: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2022 1,013 $ 130.68 Granted 604 146.19 Vested (567) 121.86 Forfeited (38) 141.16 Outstanding as of December 31, 2023 1,012 144.49 Options The following table provides information about our option grants: Year Ended December 31, 2023 2022 2021 Number of options granted (in thousands) 341 318 361 Weighted average exercise price per share $ 146.18 $ 150.67 $ 123.13 Weighted average grant date fair value per share $ 52.27 $ 51.15 $ 41.15 The weighted average grant date fair value per share of the option grants for each year was determined using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2023 2022 2021 Expected volatility (1) 30.16 % 33.28 % 33.13 % Dividend yield (2) 0.43 % 0.41 % — % Risk-free rate (3) 4.00 % 1.93 % 0.92 % Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of Hilton's stock price for a period that corresponds to the expected terms of the options. (2) At the time of grant for the 2021 options, the declaration and payment of dividends was suspended and we could not estimate when the payment of dividends would resume. For the options granted during the years ended December 31, 2023 and 2022, dividend yield was estimated based on the expected quarterly dividend and the three month average stock price at the dates of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected terms of the options at the dates of grant. (4) Estimated using the midpoint of the vesting periods and the contractual terms of the options as we do not have sufficient historical share option exercise data to estimate the term of our option grants. The following table summarizes the activity of our options during the year ended December 31, 2023: Number of Shares Weighted Average Exercise Price per Share (in thousands) Outstanding as of December 31, 2022 3,021 $ 87.61 Granted 341 146.18 Exercised (252) 80.34 Forfeited or expired (8) 143.97 Outstanding as of December 31, 2023 (1) 3,102 94.50 Exercisable as of December 31, 2023 (2) 2,437 81.12 ____________ (1) The aggregate intrinsic value was $272 million and the weighted average remaining contractual term was 5.4 years. (2) The aggregate intrinsic value was $246 million and the weighted average remaining contractual term was 4.6 years. Performance Shares As of December 31, 2023, we determined that all of the performance measures for the outstanding performance shares were probable of achievement, with the average of the applicable achievement factors estimated to be at the maximum achievement percentage for the 2021 performance shares and between the target and maximum achievement percentages for the 2022 and 2023 performance shares. The following table provides information about our performance share grants for the last three years: Year Ended December 31, 2023 2022 2021 Number of shares granted (in thousands) 244 216 241 Weighted average grant date fair value per share $ 146.18 $ 150.67 $ 123.13 Aggregate intrinsic value of shares vested (in millions) $ 42 $ 42 $ 36 The following table summarizes the activity of our performance shares in aggregate for all of our performance measures during the year ended December 31, 2023, with the performance shares reflected at the target achievement percentage until completion of the performance period: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2022 730 $ 119.87 Granted 244 146.18 Performance achievement share adjustments (1) 207 93.33 Vested (493) 93.44 Forfeited (9) 128.03 Outstanding as of December 31, 2023 679 139.74 ____________ (1) Reflects the number of shares achieved above target, based on actual performance as determined at the completion of the respective three-year performance period. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the calculation of basic and diluted earnings per share ("EPS"): Year Ended December 31, 2023 2022 2021 (in millions, except per share amounts) Basic EPS: Numerator: Net income attributable to Hilton stockholders $ 1,141 $ 1,255 $ 410 Denominator: Weighted average shares outstanding 262 275 279 Basic EPS $ 4.36 $ 4.56 $ 1.47 Diluted EPS: Numerator: Net income attributable to Hilton stockholders $ 1,141 $ 1,255 $ 410 Denominator: Weighted average shares outstanding (1) 264 277 281 Diluted EPS (1) $ 4.33 $ 4.53 $ 1.46 ____________ (1) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 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 (2) Cash Flow Hedge Adjustment (3) Total (in millions) Balance as of December 31, 2020 $ (511) $ (289) $ (60) $ (860) Other comprehensive income (loss) before reclassifications (36) 68 11 43 Amounts reclassified from accumulated other comprehensive loss 7 11 20 38 Net other comprehensive income (loss) for the period (29) 79 31 81 Balance as of December 31, 2021 (540) (210) (29) (779) Other comprehensive income (loss) before reclassifications (9) (57) 114 48 Amounts reclassified from accumulated other comprehensive loss 1 8 16 25 Net other comprehensive income (loss) for the period (8) (49) 130 73 Balance as of December 31, 2022 (548) (259) 101 (706) Other comprehensive income (loss) before reclassifications 9 (11) 9 7 Amounts reclassified from accumulated other comprehensive loss — 8 (40) (32) Net other comprehensive income (loss) for the period 9 (3) (31) (25) Balance as of December 31, 2023 $ (539) $ (262) $ 70 $ (731) ____________ (1) Includes net investment hedge gains and intra-entity foreign currency transactions that are of a long-term investment nature. Amounts reclassified relate to the liquidation of investments in foreign entities which were recognized in our consolidated statements of operations in gain on foreign currency transactions during the year ended December 31, 2022 and in loss on sales of assets, net during the year ended December 31, 2021. (2) Amounts reclassified relate to the amortization of prior service cost and amortization of net loss and were recognized in other non-operating income, net in our consolidated statements of operations. (3) Amounts reclassified were the result of hedging instruments, including: (a) interest rate swaps, inclusive of interest rate swaps that were dedesignated in prior periods, with related amounts recognized in interest expense in our consolidated statements of operations and (b) forward contracts that hedge our foreign currency denominated fees, with related amounts recognized in various revenue line items, as applicable, in our consolidated statements of operations. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2023 | |
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, each of which is reported as a segment based on (a) delivering a similar set of products and services and (b) being managed separately given its 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 that license our IP and where we provide other contracted services, but the day-to-day services of the hotels are operated or managed by someone other than us. Revenues from this segment include: (i) management and franchise fees charged to third-party hotel owners; (ii) licensing fees from our strategic partners, including co-branded credit card providers, and HGV; and (iii) fees for managing hotels in our ownership segment. The ownership segment primarily derives revenues from nightly hotel room sales, food and beverage sales and other services at our consolidated owned and leased hotels. The performance of our operating segments is evaluated primarily on operating income (loss), without allocating amortization of contract acquisition costs, other revenues and other expenses, other revenues and other expenses from managed and franchised properties, depreciation and amortization expenses or general and administrative expenses, and does not include equity in earnings (losses) from unconsolidated affiliates. Our CODM does not use assets by operating segment when assessing performance or making operating segment resource allocations. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2023 2022 2021 (in millions) Franchise and licensing fees $ 2,388 $ 2,085 $ 1,508 Base and other management fees (1) 393 338 203 Incentive management fees 274 196 98 Management and franchise 3,055 2,619 1,809 Ownership 1,244 1,076 598 Segment revenues 4,299 3,695 2,407 Amortization of contract acquisition costs (43) (38) (32) Other revenues 178 102 79 Other revenues from managed and franchised properties 5,827 5,037 3,344 Intersegment fees elimination (1) (26) (23) (10) Total revenues $ 10,235 $ 8,773 $ 5,788 ____________ (1) Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. The following table presents operating income (loss) for each of our reportable segments, reconciled to consolidated income before income taxes: Year Ended December 31, 2023 2022 2021 (in millions) Management and franchise (1) $ 3,055 $ 2,619 $ 1,809 Ownership (1) 77 54 (91) Segment operating income 3,132 2,673 1,718 Amortization of contract acquisition costs (43) (38) (32) Other revenues, less other expenses 66 42 34 Net other expenses from managed and franchised properties (337) (39) (110) Depreciation and amortization expenses (147) (162) (188) General and administrative expenses (408) (382) (405) Impairment losses (38) — — Loss on sales of assets, net — — (7) Operating income 2,225 2,094 1,010 Interest expense (464) (415) (397) Gain (loss) on foreign currency transactions (16) 5 (7) Loss on debt extinguishment — — (69) Loss on investments in unconsolidated affiliate (92) — — Other non-operating income, net 39 50 23 Income before income taxes $ 1,692 $ 1,734 $ 560 ____________ (1) Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. Total revenues by country were as follows: Year Ended December 31, 2023 2022 2021 (in millions) U.S. $ 7,986 $ 6,947 $ 4,765 All other (1) 2,249 1,826 1,023 $ 10,235 $ 8,773 $ 5,788 ____________ (1) There are no countries included in these amounts that individually represented more than 10 percent of total revenues for the years ended December 31, 2023, 2022 and 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We include performance clauses in certain of our management contracts, however, most of these clauses do not require us to fund shortfalls, but instead allow for termination of the contract if specified operating performance levels are not achieved. In limited cases, we are obligated to fund performance shortfalls and 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 for that particular hotel. As of December 31, 2023, we had performance guarantees with expirations ranging from 2025 to 2043 and possible cash outlays totaling $9 million. Additionally, as of December 31, 2023, we had extended debt guarantees and letters of credit with expirations ranging from 2025 to 2033 and possible cash outlays totaling $140 million to owners of certain hotels that we currently or in the future will manage or franchise. The performance and debt guarantees create variable interests in the ownership entities of the hotels, of which we are not the primary beneficiary. We receive fees from managed and franchised properties that we are contractually required to use to operate our marketing, sales and brand programs and shared services on behalf of hotel owners. If we collect amounts in excess of amounts expended, we have a commitment to spend these amounts on the related programs. As of December 31, 2023 and 2022, the amounts expended on behalf of these programs exceeded the amounts collected. 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 |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Cash interest paid included within operating activities in our consolidated statements of cash flows was $492 million, $385 million and $359 million during the years ended December 31, 2023, 2022 and 2021, respectively. For the years ended December 31, 2023 and 2022, these amounts exclude $53 million and $2 million of cash receipts, respectively, related to settlements of our interest rate swap with a financing component, which are separately disclosed within financing activities in our consolidated statements of cash flows. Income tax payments, net of refunds received, were $478 million, $389 million and $181 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to Hilton stockholders | $ 1,141 | $ 1,255 | $ 410 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Matthew Schuyler [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On October 27, 2023, Matthew Schuyler, our then Executive Vice President and Chief Brand Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) under the Exchange Act to sell up to 18,744 shares of the Company's common stock (following the exercise of options that expire in February 2024) between February 12, 2024 and February 16, 2024. The trading plan will cease upon the earlier of February 16, 2024 and the sale of all shares subject to the trading plan. Mr. Schuyler moved to a short-term advisory role effective January 1, 2024 and is no longer an officer (as defined in Rule 16a-1(f) of the Exchange Act) of the Company. | |
Name | Matthew Schuyler | |
Title | Executive Vice President and Chief Brand Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | October 27, 2023 | |
Termination Date | February 16, 2024 | |
Arrangement Duration | 4 days | |
Aggregate Available | 18,744 | 18,744 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and other non-wholly owned entities in which we have a controlling financial interest, including variable interest entities ("VIEs") for which we are the primary beneficiary. Non-wholly owned entities in which we have a controlling financial interest generally comprise majority owned entities that own or lease real estate. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by third-party ownership interests. If the entity is considered to be a VIE, we evaluate whether we are the primary beneficiary and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interest in the entity, and, if we do, we consolidate the entity. We hold interests in VIEs, for which we are not the primary beneficiary, that may provide us with the option to acquire an additional interest in such an entity at a predetermined amount, if certain contingent events occur. In a circumstance that we exercise or have the ability to exercise our option to acquire an additional interest in a VIE, we would 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 on the date that we became the primary beneficiary. If such consolidation is required, the amounts may be material. All material intercompany transactions and balances have been eliminated in consolidation. References in these financial statements to net income (loss) attributable to Hilton stockholders and Hilton stockholders' equity (deficit) do not include noncontrolling interests, which represent the third-party ownership interests of our consolidated, non-wholly owned entities and are reported separately. |
Use of Estimates | Use of Estimates |
Revenue Recognition | Revenue Recognition Revenues are primarily derived from: (i) fees earned from management and franchise contracts with third-party hotel owners; (ii) fees earned from license agreements with strategic partners, including co-branded credit card providers, and Hilton Grand Vacations Inc. ("HGV"); and (iii) our owned and leased hotels. The majority of our performance obligations are promises to provide a series of distinct goods or services, for which we receive variable consideration through our management and franchise fees or fixed consideration through our owned and leased hotels. We allocate the variable fees to the distinct services to which they relate applying the prescribed variable consideration allocation guidance, and we allocate fixed consideration to the related performance obligations based on their estimated standalone selling prices. We do not adjust the promised amount of consideration for the effects of a significant financing component when it is our expectation, at contract inception, that the period between our transfer of a promised good or service to a customer and when the customer pays for that good or service will be twelve months or less, which it is in substantially all cases. Additionally, we do not typically include extended payment terms in our contracts with customers. Management and franchise revenues We identified the following performance obligations in connection with our management and franchise contracts: • IP licenses grant the licensee the right to access our IP, including brand IP, reservations systems and property management systems. • Hotel management services include providing day-to-day management services in the operation of the hotels for the hotel owners. • Development services include providing consultative services (e.g., design assistance and contractor selection) to the third-party hotel owner to assist with the construction of the hotel prior to the hotel opening. • Pre-opening services include providing services (e.g., advertising, budgeting, e-commerce strategies and food and beverage testing) to the third-party hotel owner to assist in preparing for the hotel opening. • Rewards from Hilton Honors, our guest loyalty program, provide substantive rights for free or discounted goods or services to Hilton Honors members. Each of the identified performance obligations is considered to be a series of distinct services transferred over time, except for the performance obligation related to rewards from Hilton Honors, which is satisfied at the point in time when a Hilton Honors point is redeemed by the Hilton Honors member. For the performance obligations other than the one related to rewards from the Hilton Honors program, while the underlying activities may vary from day to day, the nature of the commitments are the same each day, and the property owner can independently benefit from each day's services. Management and franchise fees are typically based on the sales or usage of the underlying hotel, with the exception of fixed upfront fees, which usually represent an insignificant portion of the transaction price. Franchise and licensing fees represent fees earned in connection with the licensing of one of our brands, usually under a long-term contract with a hotel owner, as well as fees from license agreements for the use of our IP, and include the following: • Royalty fees are generally based on a percentage of the hotel's monthly gross room revenue and, in some cases, may also include a percentage of gross food and beverage revenues and other revenues, as applicable. These fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Application, initiation and other fees are charged when: (i) new hotels enter our system; (ii) there is a change of ownership of a hotel; or (iii) contracts with hotels already in our system are extended. These fees are typically fixed and collected upfront and are recognized as revenue over the term of the franchise contract. We do not consider this advance consideration to include a significant financing component, since it is used to protect us from the hotel owner failing to adequately complete some or all of its obligations under the contract, including establishing and maintaining the hotel in accordance with our standards. • Licensing fees for the use of our IP are earned from: (i) strategic partnerships, including from co-branded credit card arrangements, which are recognized as revenue when points for Hilton Honors are issued, generally as spend with the strategic partner or co-branded credit card provider occurs (see further discussion below under "Hilton Honors") and (ii) a license agreement with HGV for its timeshare business, which are typically billed monthly and recognized as revenue at the same time the fees are billed. Management fees represent fees earned from hotels that we manage, usually under a long-term contract with a hotel owner, and include the following: • Base management fees are generally based on a percentage of the hotel's monthly gross operating revenue. Base management fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Incentive management fees are generally based on a percentage of the hotel's operating profits, normally over a one-calendar year period (the "incentive period"), and, in some cases, may be subject to a stated return threshold to the hotel owner. Incentive management fee revenue is recognized on a monthly basis, but only to the extent the cumulative fee earned does not exceed the probable fee for the incentive period. Incentive management fee payment terms vary, but they are generally billed and collected monthly or annually upon completion of the incentive period. Consideration paid or anticipated to be paid to incentivize hotel owners to enter into management and franchise contracts with us is amortized over the life of the applicable contract, generally including any extension periods that are at our sole option, as a reduction to base and other management fees and franchise and licensing fees, respectively. We do not estimate revenues expected to be recognized related to our unsatisfied performance obligations for our: (i) royalty fees, since they are considered sales-based royalty fees recognized as hotel room sales occur in exchange for licenses of our IP over the terms of the franchise contracts and (ii) other licensing fees, base management fees and incentive management fees since they are allocated entirely to the wholly unsatisfied promise to transfer IP or provide management services, respectively, which form part of a single performance obligation in a series, over the term of the individual contract. Other revenues from managed and franchised properties represent amounts that are contractually reimbursed to us by property owners, either directly as costs are incurred or indirectly through monthly program fees related to certain costs and expenses supporting the operations of the related properties, and include the following: • Direct reimbursements primarily include payroll and related costs of managed hotels, if the managed hotel employees are legally employed by us. Direct reimbursements are contractually reimbursed to us by the hotel owners as expenses are incurred. We have no legal responsibility for the employee liabilities related to certain of our managed properties, predominately those located outside of the U.S., where we are not the legal employer, as well as the employees or the liabilities associated with operating franchised properties. Revenue is recognized based on the amount of expenses incurred by Hilton, which are presented as other expenses from managed and franchised properties in our consolidated statement of operations, that are then reimbursed to us by the property owner typically on a monthly basis, which results in no net effect on operating income (loss) or net income (loss). • Indirect reimbursements include marketing and sales expenses and other expenses associated with our brand programs and shared services, which are paid from program fees collected by Hilton from our managed and franchised properties. Indirect reimbursements are typically billed and collected monthly, based on the underlying hotel's sales or usage (e.g., gross room revenue or number of reservations processed), and revenue is generally recognized as services are provided. System implementation fees charged to property owners are deferred and recognized as revenue over the term of the management or franchise contract. The expenses incurred by Hilton to operate the marketing, sales and brand programs and shared services are recognized as incurred and are presented as other expenses from managed and franchised properties in our consolidated statement of operations. Owned and leased hotels revenues We identified the following performance obligations in connection with our owned and leased hotels revenues, with such revenues recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: • Cancellable room reservations or ancillary services are typically satisfied as the good or service is transferred to the hotel guest, which is generally when the room stay occurs. • Noncancellable room reservations and banquet or conference reservations represent a series of distinct goods or services provided over time and satisfied as each distinct good or service is provided, which is reflected by the duration of the reservation. • Substantive rights for free or discounted goods or services are satisfied when the underlying free or discounted good or service is provided to the hotel guest. • Other ancillary goods and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest. • Components of package reservations for which each component could be sold separately to other hotel guests are considered separate performance obligations and are satisfied as set forth above. Owned and leased hotels revenues primarily consist of hotel room sales, revenues from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and sales of other ancillary goods and services (e.g., parking) related to consolidated owned and leased hotels. Revenue is recognized when a room stay occurs or goods and services have been provided. Payment terms typically align with when the goods and services are provided. Owned and leased hotels revenues are reduced upon issuance of Hilton Honors points for Hilton Honors members' paid stay transactions and are recognized when Hilton Honors points are redeemed for a free or discounted stay at an owned or leased hotel (see the "Hilton Honors" section below for additional information). Although the transaction prices of hotel room sales, goods and other services are generally fixed and based on the respective room reservation or other agreement, an estimate to reduce the transaction price is required if a discount is expected to be provided to the customer. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. On occasion, the hotel may also provide the customer with a substantive right to a free or discounted good or service in conjunction with a room reservation or banquet contract (e.g., free breakfast or free room night for every four room nights reserved). This substantive right is considered a separate performance obligation to which a portion of the transaction price is allocated based on the estimated standalone selling price of the good or service, adjusted for the likelihood the hotel guest will exercise such right, and it is recognized as revenue when the good or service is redeemed. Other revenues Other revenues primarily includes revenues generated by our purchasing operations for our owned, leased, managed and franchised hotels, as well as from properties outside of our system that participate in our purchasing programs. Purchasing revenues include any amounts we expect to retain for vendor rebate arrangements related to purchases made directly by managed and franchised properties, as well as properties outside of our system, through our purchasing programs. Taxes and fees collected on behalf of governmental agencies We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees, and, therefore, they are not included in our measurement of transaction prices. We have elected to present revenue net of sales taxes and other similar taxes. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. |
Accounts Receivable | Our accounts receivable primarily consist of amounts due from the hotel owners with whom we have management and franchise contracts, including the reimbursements that we have incurred on behalf of our managed and franchised properties. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents include cash balances established as collateral for certain guarantees and insurance, including self-insurance and furniture, fixtures and equipment replacement ("FF&E") reserves required under certain lease agreements. |
Allowance for Credit Losses | Allowance for Credit Losses An allowance for credit losses is provided on our financial instruments, primarily accounts receivable and notes receivable, which are included in other current assets and other assets in our consolidated balance sheet. Expected credit losses are also recorded on off-balance-sheet commitments, such as guarantees, letters of credit and financing commitments. Our expected credit losses are based on historical collection activity, the nature of the financial instrument, geographic considerations, current and forecasted business conditions and, in the case of off-balance-sheet commitments, the probability that funding will be required. |
Goodwill | Goodwill Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. In connection with the 2007 transaction whereby we became a wholly owned subsidiary of affiliates of Blackstone Inc. (the "Merger"), we recorded goodwill representing the excess purchase price over the fair value of the identified assets and liabilities. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if indicators of impairment exist. Our reporting units are the same as our operating segments as described in Note 18: "Business Segments." We evaluate goodwill for potential impairment by comparing the carrying value of the reporting unit to its fair value. When we evaluate goodwill for potential impairment, generally, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If we determine qualitatively that it is more likely than not that the fair value of a reporting unit is less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, including goodwill. The estimated fair value is based on forward-looking estimates of performance and cash flows of our reporting units, which are based on historical operating results, adjusted for current and expected future market conditions, as well as various internal projections and external sources. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss would be recognized in our consolidated statement of operations in an amount equal to the excess of the carrying value over the estimated fair value, limited to the total amount of goodwill allocated to that reporting unit. As of December 31, 2023 and 2022, our goodwill balance was only attributable to our management and franchise reporting unit, which had no accumulated impairment losses as of either date. The changes in our goodwill balances during the years ended December 31, 2023 and 2022 were due to foreign currency translation. |
Brands | Brands Brands intangible assets were initially recorded at their fair value at the time of the Merger for the portfolio of brands that existed at the time of the Merger, using the relief-from-royalty valuation approach for owned and leased hotels and the excess earnings method for managed and franchised hotels. There are no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these brands, and, accordingly, the useful lives of these brands are considered to be indefinite. A portion of our brands intangible assets are denominated in foreign currencies and, as such, a period over period change in these assets is attributable to fluctuations in foreign currency exchange rates. We have not recorded any intangible assets for brands that were launched subsequent to the Merger. We evaluate our indefinite-lived brands intangible assets for impairment on an annual basis or at other times during the year if indicators of impairment exist. When we evaluate our brands intangible assets for potential impairment, generally, we first perform a qualitative assessment to determine whether it is more likely than not that the fair value of the asset is less than its carrying value. If we determine qualitatively that the fair value of the asset is more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The estimated fair value of the brand intangible asset is based on internal projections of expected future cash flows generated by the brand. If the carrying value of the brand intangible asset exceeds its estimated fair value, an impairment loss would be recognized in our consolidated statement of operations in an amount equal to the excess of the carrying value over the estimated fair value. |
Intangible Assets with Finite Useful Lives | Intangible Assets with Finite Useful Lives We capitalize consideration paid to incentivize hotel owners to enter into management and franchise contracts with us as contract acquisition costs and the incremental costs to obtain the contracts as development commissions and other, both of which are generally fixed. We also capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses, as well as internal and external costs incurred in connection with the development of upgrades or enhancements that result in additional information technology functionality. Additionally, certain finite-lived intangible assets were initially recorded at their fair value at the time of the Merger. As of January 1, 2021 the only remaining finite-lived intangible assets resulting from the Merger related to leases, international management contracts and our Hilton Honors guest loyalty program. The assets related to the international management contracts and Hilton Honors, which both had useful lives of 16 years, were fully amortized during the year ended December 31, 2023. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which for contract acquisition costs and development commissions and other is the contract term, generally including any extension periods that are at our sole option. The estimated useful lives of our finite-lived intangible assets are generally as follows: (i) management contract acquisition costs and development commissions and other (20 to 30 years); (ii) franchise contract acquisition costs and development commissions and other (10 to 20 years); (iii) leases (16 to 35 years); and (iv) capitalized software costs (3 years). In our consolidated statement of operations, the amortization of these intangible assets, excluding contract acquisition costs, is included in depreciation and amortization expenses and the amortization of contract acquisition costs is recognized as a reduction to franchise and licensing fees or base and other management fees, depending on the contract type. Costs incurred prior to the acquisition of a contract, such as external legal costs, are expensed as incurred and included in general and administrative expenses in our consolidated statement of operations. Cash flows for contract acquisition costs and development commissions and other are included as operating activities in our consolidated statement of cash flows, and cash flows for capitalized software costs are included as investing activities. We evaluate the carrying value of all finite-lived intangible assets for indicators of impairment, and, if such indicators exist, we perform an analysis to determine the recoverability of the asset group by comparing the expected undiscounted future cash flows to the net carrying value of the asset group. If the carrying value of the asset group is not recoverable and it exceeds the estimated fair value of the asset group, we recognize an impairment loss in our consolidated statement of operations for the amount by which the carrying value exceeds the estimated fair value. We allocate the impairment loss related to the asset group among the various assets within the asset group pro rata based on the relative carrying values of the respective assets. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Right-of-use ("ROU") assets of finance leases are included in property and equipment, net in our consolidated balance sheet; refer to "Leases" below for additional information. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally: (i) 8 to 40 years for buildings and improvements; (ii) 3 to 8 years for furniture and equipment; and (iii) 3 to 5 years for computer equipment. Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the remaining lease term. |
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 lease upon modification of the contract. For contracts in which we are the lessee that contain fixed payments for both lease and non-lease components, we have elected to account for these components as a single lease component. At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a 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 lessor options to renew the lease within the lessor's control and 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. Current and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current 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 sheet. The ROU asset is measured as 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, deferred rent and lease incentives. In our consolidated balance sheet, ROU assets of operating leases are included in operating lease right-of-use assets and ROU assets of finance leases are included in property and equipment, net. We evaluate the carrying value of our ROU assets for indicators of impairment, and, if such indicators exist, we perform an analysis to determine the recoverability of the asset group by comparing the estimated undiscounted future cash flows to the net carrying value of the asset group. If the carrying value of the asset group is not recoverable and it exceeds the estimated fair value of the asset group, we recognize an impairment loss in our consolidated statement of operations for the amount by which the carrying value exceeds the estimated fair value. We allocate the impairment loss related to an asset group among the various assets within the asset group pro rata based on the relative carrying values of the respective assets. Depending on the individual agreement, our operating leases may 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 hotel's revenues or profits or result from changes in inflationary indices; 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 FF&E 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 hotels expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statement of operations. For operating leases for which the ROU asset has been impaired, the lease expense is determined as the sum of the amortization of the ROU asset remaining after impairment, if any, on a straight-line basis over the remaining term of the lease and the accretion of the lease liability based on the discount rate applied to the lease liability. For finance leases, the amortization of the ROU asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expenses and other expenses from managed and franchised properties in our consolidated statement of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statement of operations. |
Contract Liabilities | Contract Liabilities Contract liabilities primarily relate to: (i) amounts received when points are issued for the Hilton Honors program, but for which revenue is not yet recognized, since the related points are not yet redeemed; and (ii) advance consideration received from hotel owners for services considered to be part of the contract's performance obligations, such as application, initiation and other fees and system implementation fees. Contract liabilities related to amounts received for points issued for the Hilton Honors program are recognized as revenue when the points are redeemed for a free or discounted good or service by the Hilton Honors program member. Contract liabilities related to advance consideration received from hotel owners are recognized ratably as revenue over the term of the related contract. Contract liabilities are included in current and long-term deferred revenues in our consolidated balance sheet, with the current portion based on our estimates of the amounts that will be recognized in the next twelve months. |
Hilton Honors | Hilton Honors Hilton Honors is our guest loyalty program provided to our properties. All of our managed, franchised, owned and leased properties participate in the Hilton Honors program. Hilton Honors members earn points based on their spend at our participating properties and through participation in affiliated strategic partner programs, including co-branded credit card arrangements. When points are earned by Hilton Honors members, they are provided with a substantive right to free or discounted goods or services in the future upon accumulation of the required number of Hilton Honors points. Points may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties, including, but not limited to, airlines, car rentals, cruises, vacation packages, shopping and dining. As points are issued to a Hilton Honors member, the property or strategic partner pays Hilton based on an estimated cost per point equal to the cost of operating the program, which includes marketing, promotion, communication and administrative expenses, as well as the estimated cost of reward redemptions. When we receive payments related to the issuance of points, we record amounts equal to the estimated cost per point of the future redemption obligation within liability for guest loyalty program and any amounts received in excess of the estimated cost per point within deferred revenues in our consolidated balance sheet. For the Hilton Honors fees that are charged to the participating properties, we allocate such fees to the substantive right created by the Hilton Honors points that are issued using the variable consideration allocation guidance, since the fees are directly related to the issuance of Hilton Honors points to the Hilton Honors member and Hilton's efforts to satisfy the future redemption of those Hilton Honors points. We engage third-party actuaries annually to assist in determining the estimated cost per point of the future reward redemption obligation using a discount rate and statistical formulas that project future point redemptions based on our historical experience and future expectations. Factors used in the estimate include: (i) an estimate of points that will eventually be redeemed, which includes an estimate of breakage (i.e., points that will never be redeemed), (ii) an estimate of when such points will be redeemed and (iii) an estimate of the cost of reimbursing managed and franchised properties and other third parties for redemptions. When points are issued as a result of a stay by a Hilton Honors member at an owned or leased hotel, we recognize a reduction in owned and leased hotels revenues, since we are also the program sponsor. We estimate the current portions of our liability for guest loyalty program and Hilton Honors deferred revenues based on the total point redemptions and, for the liability for guest loyalty program, also breakage that is expected to occur within the next 12 months; these amounts are presented as current portion of liability for guest loyalty program and current portion of deferred revenues in our consolidated balance sheet. The transaction prices for the Hilton Honors points issued are reduced by the expected payments to the managed and franchised properties and other third parties that will provide the free or discounted good or service using the actuarial projection of the cost per point. The remaining transaction price is then further allocated to the points that are expected to be redeemed, adjusting the points that are issued for estimated breakage, and recognized when those points are redeemed. While the points are outstanding, both the estimate of the expected payments to third parties (i.e., cost per point redeemed) and the estimated breakage are reevaluated. The combined estimate yields the amount of revenue that will be recognized when our point obligation is satisfied and is adjusted so that the final amount allocated to the substantive right of the Hilton Honors member to redeem their points for free or discounted goods and services is reflective of the amount retained by Hilton after the cost of providing the free or discounted goods and services. We also earn licensing fees from strategic partnerships, including co-branded credit card arrangements (see "Management and franchise revenues" within the "Revenue Recognition" section above). The consideration received is allocated based on the estimated standalone selling prices between two performance obligations: (i) an IP license using the relief-from-royalty valuation method; and (ii) substantive rights for free or discounted goods or services to the Hilton Honors members using a discounted cash flow analysis adjusted for an appropriate margin. We satisfy our performance obligation related to the IP license over time as the strategic partner simultaneously receives and consumes the benefits of the goods or services provided, and we satisfy our performance obligation related to points issued under the Hilton Honors program when points are redeemed for a free or discounted good or service by the Hilton Honors members. Hilton reimburses managed and franchised properties and other third parties when points are redeemed by Hilton Honors members for stays at the participating properties or for other goods or services from the third-party providers, respectively, at which time the redemption obligation is reduced and the related deferred revenue is recognized in other revenues from managed and franchised properties in our consolidated statement of operations. Additionally, when Hilton Honors members redeem points for a free or discounted stay at our owned and leased hotels, we recognize room revenue, included in owned and leased hotels revenues in our consolidated statement of operations. During the year ended December 31, 2023, we recognized an aggregate of $474 million of revenue related to Hilton Honors, including amounts related to point redemptions, which were recognized in other revenues from managed and franchised properties, and amounts related to licensing fees, which were recognized in franchise and licensing fees. |
Fair Value Measurement - Valuation Hierarchy | Fair Value Measurements – Valuation Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (i.e., an exit price). We use the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our own assumptions about the data market participants would use in pricing the asset or liability developed based on the best information available to us in the specific circumstances. The three-tier hierarchy of inputs is summarized below: • Level 1 – Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. • Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Proper classification of fair value measurements within the valuation hierarchy is considered each reporting period. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. Estimates of the fair values of our financial instruments and nonfinancial assets are determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values and the classification within the valuation hierarchy. We have not elected the fair value measurement option for any of our financial assets or liabilities. |
Derivative Instruments | Derivative Instruments We use derivative instruments as part of our overall strategy to manage our exposure to market risks associated with fluctuations in interest rates and foreign currency exchange rates. We regularly monitor the financial stability and credit standing of the counterparties to our derivative instruments. We do not enter into derivative financial instruments for speculative purposes. We record all derivatives at fair value. On the date the derivative contract is entered into, we may designate the derivative as a hedging instrument, and, if so, we formally document all relationships between hedging activities, including the risk management objective and strategy for undertaking various hedge transactions. We generally enter into cash flow hedges (i.e., a hedge of a specific forecasted transaction or the variability of cash flows to be paid), and, in the past, we also entered into net investment hedges (i.e., a hedge of an investment in a foreign operation). Changes in the fair value of a derivative that is qualified and designated as a cash flow hedge or net investment hedge are recorded in other comprehensive income (loss) in our consolidated statement of comprehensive income (loss) until they are reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. If we do not specifically designate the derivative as a cash flow hedge or another type of hedging instrument, changes in the fair value of the undesignated derivative instrument are reported in current period earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged in the consolidated statement of cash flows, while cash flows from undesignated derivative financial instruments are included as an investing activity. We perform an initial prospective assessment of hedge effectiveness on a quantitative basis between the inception date and the earlier of the first quarterly hedge effectiveness date or the issuance of the financial statements that include the hedged transaction. On a quarterly basis, we assess the effectiveness of our designated hedges in offsetting the variability in the cash flows using a statistical method. This method compares the cumulative change in fair value of each hedging instrument to the cumulative change in fair value of a hypothetical hedging instrument, which has terms that identically match the critical terms of the respective hedged transactions. Thus, the hypothetical hedging instrument is presumed to perfectly offset the hedged cash flows. Ineffectiveness results when the cumulative change in the fair value of the hedging instrument exceeds the cumulative change in the fair value of the hypothetical hedging instrument. We would discontinue hedge accounting prospectively if we voluntarily choose to do so, when the derivative is no longer highly effective as a hedge, the underlying hedged transaction is no longer probable or the hedging instrument expires, is sold, terminated or exercised. |
Currency Translation | Currency Translation The U.S. dollar ("USD") is our reporting currency and is the functional currency of our entities operating in the U.S. The functional currency for our entities operating outside of the U.S. is the currency of the primary economic environment in which the respective entity operates, unless it is considered a highly inflationary economy in which case the functional currency of that entity is the currency of its immediate parent. Assets and liabilities measured in foreign currencies are translated into USD at the prevailing foreign currency exchange rates in effect as of the financial statement date and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive income (loss) in our consolidated balance sheet. Income and expense accounts are translated at the average foreign currency exchange rate for the period. Gains and losses from foreign currency exchange rate changes related to transactions denominated in a currency other than an entity's functional currency or intercompany receivables and payables denominated in a currency other than an entity’s functional currency that are not of a long-term investment nature are recognized within gain (loss) on foreign currency transactions in our consolidated statement of operations. Where certain specific evidence indicates intercompany receivables and payables will not be settled in the foreseeable future and are of a long-term nature, gains and losses from foreign currency exchange rate changes are recognized as currency translation adjustment within other comprehensive income (loss) in our consolidated statement of comprehensive income (loss). |
Insurance | Insurance We are self-insured for losses up to our third-party insurance deductibles for domestic general liability, auto liability, workers' compensation, employment practices liability and crime insurance at our owned, leased and managed hotels that participate in our insurance programs, in addition to other corporate related coverages. We are also self-insured for health coverages for some of our U.S. and Puerto Rico employees, which include those working at our corporate operations and managed hotels, with purchased insurance protection for costs over specified thresholds. In addition, through our captive insurance subsidiary, we participate in reinsurance arrangements that provide coverage and/or act as a financial intermediary for claim payments on our self-insurance program. These obligations and reinsurance arrangements can cause timing differences in the recognition of assets, liabilities, gains and losses between reporting periods, although we expect these amounts to ultimately offset when the related claims are settled. Our insurance reserves are accrued based on the estimated ultimate cost to us of claims that occurred during the covered period, which includes claims incurred but not reported, for which we will be responsible. These estimates are prepared with the assistance of third-party actuaries and consultants. The ultimate cost of claims for a covered period are reviewed at least annually, or more frequently as circumstances dictate, and are adjusted based on the latest information available to us, which may differ from our original estimates. |
Share-Based Compensation | Share-Based Compensation Our share-based compensation primarily consists of awards that we grant to eligible employees under the Hilton 2017 Omnibus Incentive Plan (the "2017 Plan") and includes time-vesting restricted stock units ("RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares") to our eligible employees: • RSUs vest in equal annual installments over two • Options vest in equal annual installments over three years from the date of grant and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances. The grant date fair value per share is estimated using the Black-Scholes-Merton option-pricing model. The exercise price is equal to the closing stock price on the date of grant. Upon the exercise of stock options, new shares of our common stock are issued. • Performance shares vest three years from the date of grant based on a set of specified performance measures over a defined performance period. The grant date fair value is equal to the closing stock price on the date of grant. The total number of performance shares that vest related to each performance measure is based on an achievement factor that ranges from zero percent to 200 percent, with 100 percent being the target. We recognize these share-based payment transactions when services from the employees are rendered and recognize either a corresponding increase in additional paid-in capital or accounts payable, accrued expenses and other in our consolidated balance sheet, depending on whether the instruments granted satisfy the equity or liability classification criteria, respectively. The measurement objective for these equity awards is the estimated fair value at the date of grant of the equity instruments that we are obligated to issue when employees have rendered the requisite service and satisfied any other conditions necessary to earn the right to benefit from the instruments. The compensation expense for an award classified as an equity instrument is recognized ratably over the requisite service period, which is the period during which an employee is required to provide service in exchange for an award. Liability awards are measured based on the award’s estimated fair value, and the fair value is remeasured at each reporting date until the date of settlement. For such liability awards, compensation expense for each period until settlement is based on the change (or a portion of the change, depending on the percentage of the requisite service that has been rendered as of the reporting date) in the fair value of the instrument for each reporting period. Compensation expense for awards with a performance condition is dependent on the expected achievement percentage of such awards, which is reassessed each reporting period from the date of grant through the vesting date of such performance awards, and is recognized over the requisite service period if it is probable that the performance condition will be satisfied. If such performance conditions are not or are no longer considered probable to be satisfied, no compensation expense for these awards is recognized, and any previously recognized expense related to awards that are determined to be improbable of achievement is reversed. Additionally, we have a retirement provision whereby the vesting date for eligible participants is accelerated based on certain criteria, and we recognize total compensation expense for these awards through the accelerated vesting date. We recognize forfeitures of share-based compensation awards as they occur. Share-based compensation expense is recognized in owned and leased hotels expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statement of operations. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts and tax attribute carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which the respective temporary differences or tax attribute carryforwards are expected to be recovered or settled. The realization of deferred tax assets is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. We are taxed on global intangible low-tax income ("GILTI") earned by certain foreign subsidiaries. We recognize the current tax on GILTI as an expense in the period the tax is incurred. We use a prescribed more-likely-than-not recognition threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return if there is uncertainty in income taxes recognized in the consolidated financial statements. For all income tax positions, we first determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of each evaluated tax position and the amounts we would ultimately accept in a negotiated settlement with tax authorities. If it is determined that a position meets the more-likely-than-not recognition threshold, the benefit recognized in the financial statements is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. |
Loss Contingencies | Loss Contingencies |
Recently issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07 ("ASU 2023-07"), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures which requires, among other things, the following: (i) enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included in a segment's reported measure of profit or loss; (ii) disclosure of the amount and description of the composition of other segment items, as defined in ASU 2023-07, by reportable segment; and (iii) reporting the disclosures about each reportable segment's profit or loss and assets on an annual and interim basis. The provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024; early adoption is permitted. We expect ASU 2023-07 to require additional disclosures in the notes to our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09 ("ASU 2023-09"), Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires, among other things, the following for public business entities: (i) enhanced disclosures of specific categories of reconciling items included in the rate reconciliation, as well as additional information for any of these items meeting certain qualitative and quantitative thresholds; (ii) disclosure of the nature, effect and underlying causes of each individual reconciling item disclosed in the rate reconciliation and the judgment used in categorizing them if not otherwise evident; and (iii) enhanced disclosures for income taxes paid, which includes federal, state, and foreign taxes, as well as for individual jurisdictions over a certain quantitative threshold. The amendments in ASU 2023-09 eliminate the requirement to disclose the nature and estimate of the range of the reasonably possible change in unrecognized tax benefits for the 12 months after the balance sheet date. The provisions of ASU 2023-09 are effective for annual periods beginning after December 15, 2024; early adoption is permitted. We expect ASU 2023-09 to require additional disclosures in the notes to our consolidated financial statements. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities | The following table summarizes the activity of our contract liabilities during the year ended December 31, 2023: (in millions) Balance as of December 31, 2022 $ 1,331 Cash received in advance and not recognized as revenue 687 Revenue recognized (1) (378) Other (2) (119) Balance as of December 31, 2023 $ 1,521 ____________ (1) Primarily related to Hilton Honors, including co-branded credit card arrangements. (2) Represents changes in estimated transaction prices for our performance obligations related to the issuance of Hilton Honors points, which had no effect on revenues. |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Schedule of Variable Interest Entities | Our consolidated balance sheets include the assets and liabilities of these entities, including the effect of foreign currency translation, which primarily comprised the following: December 31, 2023 2022 (in millions) Cash and cash equivalents $ 46 $ 29 Accounts receivable, net 17 13 Property and equipment, net 37 45 Deferred income tax assets 32 52 Other non-current assets 43 55 Accounts payable, accrued expenses and other 29 21 Long-term debt (1)(2) 95 152 ____________ (1) Includes finance lease liabilities of $86 million and $115 million as of December 31, 2023 and 2022, respectively. (2) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortization of Finite-lived Intangible Assets | Amortization of our finite-lived intangible assets was as follows: Year Ended December 31, 2023 2022 2021 (in millions) Recognized in depreciation and amortization expenses (1) $ 104 $ 116 $ 135 Recognized as a reduction of franchise and licensing fees and base and other management fees 43 38 32 ____________ (1) Includes amortization expense of $37 million, $45 million and $47 million for the years ended December 31, 2023, 2022 and 2021, respectively, associated with assets that were initially recorded at fair value at the time of the Merger, some of which fully amortized during 2023. |
Schedule of Future Amortization Expense of Finite-lived Intangible Assets | As of December 31, 2023, w e estimate future amortization expense of our finite-lived intangible assets that will be recognized in depreciation and amortization expenses to be as follows: Year (in millions) 2024 $ 76 2025 57 2026 34 2027 12 2028 11 Thereafter 108 $ 298 |
Schedule of Finite-Lived Intangible Assets | Finite-lived intangible assets were as follows: December 31, 2023 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Contract acquisition costs $ 1,183 $ (244) $ 939 Development commissions and other 162 (37) 125 $ 1,345 $ (281) $ 1,064 Other intangible assets: Capitalized software costs $ 712 $ (576) $ 136 Leases (1)(2) 126 (89) 37 $ 838 $ (665) $ 173 December 31, 2022 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: International management contracts recorded at Merger (1) $ 293 $ (278) $ 15 Contract acquisition costs 961 (206) 755 Development commissions and other 149 (32) 117 $ 1,403 $ (516) $ 887 Other intangible assets: Capitalized software costs $ 615 $ (515) $ 100 Leases (1) 124 (80) 44 Hilton Honors (1) 335 (318) 17 $ 1,074 $ (913) $ 161 ____________ (1) Represents intangible assets that were initially recorded at fair value at the time of the Merger. (2) During the year ended December 31, 2023 we recognized $4 million of impairment losses related to our leases intangible assets in our consolidated statement of operations; see Note 11: "Fair Value Measurements" for additional information. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment were as follows: December 31, 2023 2022 (in millions) Land $ 8 $ 9 Buildings and leasehold improvements 364 355 Furniture and equipment 407 299 Construction-in-progress 37 24 Finance lease ROU assets 86 82 902 769 Accumulated depreciation and amortization (1) (520) (489) $ 382 $ 280 ____________ (1) |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other were as follows: December 31, 2023 2022 (in millions) Accrued employee compensation and benefits $ 592 $ 555 Accounts payable 457 368 Operating lease liabilities, current 116 112 Insurance reserves, current 99 86 Other current liabilities and accrued expenses (1) 715 669 $ 1,979 $ 1,790 ____________ (1) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of December 31, 2023, were as follows: December 31, 2023 2022 (in millions) Senior secured term loan facility due 2026 $ — $ 2,619 Senior secured term loan facility with a rate of 7.21%, due 2028 1,000 — Senior secured term loan facility with a rate of 7.46%, due 2030 2,119 — Senior notes with a rate of 5.375%, due 2025 (1) 500 500 Senior notes with a rate of 4.875%, due 2027 (1) 600 600 Senior notes with a rate of 5.750%, due 2028 (1) 500 500 Senior notes with a rate of 3.750%, due 2029 (1) 800 800 Senior notes with a rate of 4.875%, due 2030 (1) 1,000 1,000 Senior notes with a rate of 4.000%, due 2031 (1) 1,100 1,100 Senior notes with a rate of 3.625%, due 2032 (1) 1,500 1,500 Finance lease liabilities with a weighted average rate of 6.01%, due 2024 to 2030 (2) 139 164 Other debt of consolidated VIEs with a weighted average rate of 1.01%, due 2024 to 2026 (2) 9 37 9,267 8,820 Less: unamortized deferred financing costs and discounts (71) (73) Less: current maturities of long-term debt (3) (39) (39) $ 9,157 $ 8,708 ____________ (1) These notes are collectively referred to as the Senior Notes and are jointly and severally guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than Hilton Domestic Operating Company Inc. ("HOC"), an indirect wholly owned subsidiary of the Parent and the issuer of all of the series of Senior Notes. (2) Long-term debt of our consolidated variable interest entities is included in finance lease liabilities and other debt of consolidated VIEs as applicable. Refer to Note 4: "Consolidated Variable Interest Entities" for additional information on debt payments that were made by our consolidated VIEs during the year ended December 31, 2023. (3) Represents current maturities of finance lease liabilities and borrowings of consolidated VIEs. |
Debt maturities | The contractual maturities of our long-term debt as of December 31, 2023 were as follows: Year (in millions) 2024 $ 39 2025 529 2026 26 2027 613 2028 1,514 Thereafter 6,546 $ 9,267 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities were as follows: December 31, 2023 2022 (in millions) Other long-term tax liabilities $ 645 $ 349 Insurance reserves 154 146 Deferred employee compensation and benefits 86 91 Pension obligations 34 40 Other 79 66 $ 998 $ 692 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements - Recurring & Disclosure | The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below: December 31, 2023 Hierarchy Level Carrying Value (1) Level 1 Level 2 Level 3 (in millions) Assets: Interest rate swap $ 75 $ — $ 75 $ — Liabilities: Long-term debt (2) 9,119 5,631 — 3,129 December 31, 2022 Hierarchy Level Carrying Value (1) Level 1 Level 2 Level 3 (in millions) Assets: Interest rate swaps $ 108 $ — $ 108 $ — Liabilities: Long-term debt (2) 8,619 5,292 — 2,616 ____________ (1) The fair values of cash equivalents and restricted cash equivalents approximate their carrying values due to their short-term maturities. The fair values of all other financial instruments not included in these tables are estimated to be equal to their carrying values. (2) The carrying values and fair values exclude the deduction for unamortized deferred financing costs and any applicable discounts, as well as all finance lease liabilities and other debt of consolidated VIEs; refer to Note 9: "Debt" for additional information. |
Fair Value Measurements - Nonrecurring | The fair values of these assets as of December 31, 2023, the date of measurement, were as follows: (in millions) Other intangible assets, net $ 3 Operating lease right-of-use assets 69 Property and equipment, net 1 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: December 31, 2023 2022 (dollars in millions) Operating leases: Operating lease right-of-use assets (1) $ 618 $ 662 Accounts payable, accrued expenses and other 116 112 Operating lease liabilities 808 832 Finance leases: Property and equipment, net $ 36 $ 33 Current maturities of long-term debt 34 38 Long-term debt 105 126 Weighted average remaining lease term: Operating leases 10.6 years 11.3 years Finance leases 5.1 years 6.1 years Weighted average discount rate: Operating leases 4.33 % 4.22 % Finance leases 6.01 % 5.90 % ____________ (1) |
Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, 2023 2022 2021 (in millions) Operating lease expense for fixed payments $ 118 $ 113 $ 125 Finance lease expense: Amortization of ROU assets 21 21 23 Fixed interest on lease liabilities 9 10 13 Variable lease expense (1) 179 139 35 ____________ (1) Includes amounts related to variable rent expense for operating leases and variable interest expense for finance leases. |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2023 2022 2021 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 137 $ 157 $ 187 Financing cash flows from finance leases 40 42 40 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 39 135 45 Finance leases 24 21 17 |
Schedule of Future Minimum Lease Payments | Our future minimum lease payments as of December 31, 2023 were as follows: Operating Finance Year (in millions) 2024 $ 153 $ 41 2025 137 35 2026 122 27 2027 115 16 2028 113 17 Thereafter 535 28 Total minimum lease payments 1,175 164 Less: imputed interest (251) (25) Total lease liabilities $ 924 $ 139 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in millions) U.S. income before income taxes $ 1,301 $ 1,320 $ 631 Foreign income (loss) before income taxes 391 414 (71) Income before income taxes $ 1,692 $ 1,734 $ 560 |
Schedule of Components of Income Tax Expense (Benefit) | The components of our provision for income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in millions) Current: Federal $ 586 $ 306 $ 89 State 136 81 45 Foreign 83 56 23 Total current 805 443 157 Deferred: Federal (250) 16 51 State (83) 6 (14) Foreign 69 12 (41) Total deferred (264) 34 (4) Total provision for income taxes $ 541 $ 477 $ 153 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliations of the provision for income taxes at the U.S. statutory rate to the provision for income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in millions) Statutory U.S. federal income tax provision $ 355 $ 364 $ 118 State income taxes, net of U.S. federal income tax benefit 45 65 22 Impact of foreign operations 33 35 8 Changes in deferred tax asset valuation allowances 40 (5) 34 Income tax rate changes (9) — (45) Provision for uncertain tax positions 69 14 15 Other, net 8 4 1 Provision for income taxes $ 541 $ 477 $ 153 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the temporary differences and carryforwards that give rise to our net deferred taxes were as follows: December 31, 2023 2022 (in millions) Deferred tax assets: Net tax loss carryforwards and carrybacks $ 604 $ 641 Compensation 124 117 Reserves 81 66 Operating and finance lease liabilities 290 301 Deferred income 558 271 Foreign tax credit carryforwards 63 49 Other 114 102 Total gross deferred tax assets 1,834 1,547 Less: valuation allowance (698) (649) Deferred tax assets 1,136 898 Deferred tax liabilities: Brands (1,143) (1,151) Operating and finance lease ROU assets (195) (206) Other (59) (72) Deferred tax liabilities (1,397) (1,429) Net deferred taxes $ (261) $ (531) |
Schedule of Unrecognized Tax Benefits | Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2023 2022 2021 (in millions) Balance at beginning of year $ 337 $ 375 $ 451 Additions for tax positions related to prior years 268 1 33 Additions for tax positions related to the current year 4 3 2 Reductions for tax positions related to prior years (2) (32) (39) Settlements (48) — (66) Lapse of statute of limitations (4) (5) (2) Currency translation adjustment — (5) (4) Balance at end of year $ 555 $ 337 $ 375 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The following table presents the projected benefit obligation, fair value of plan assets, funded status and accumulated benefit obligation for the Domestic Plan and the U.K. Plan: Domestic Plan U.K. Plan 2023 2022 2023 2022 (in millions) Change in projected benefit obligation Benefit obligation at beginning of year $ 284 $ 370 $ 286 $ 490 Service cost — — 2 2 Interest cost 15 8 14 8 Actuarial loss (gain) (1) 5 (71) 4 (152) Effect of foreign currency exchange rates — — 16 (49) Benefits paid (23) (23) (13) (13) Benefit obligation at end of year $ 281 $ 284 $ 309 $ 286 Change in plan assets Fair value of plan assets at beginning of year $ 271 $ 374 $ 277 $ 505 Actual return on plan assets, net of expenses 25 (80) 10 (186) Employer contributions 5 — 9 21 Effect of foreign currency exchange rates — — 15 (50) Benefits paid (23) (23) (13) (13) Fair value of plan assets at end of year 278 271 298 277 Funded status at end of year (underfunded) (2) (3) (13) (11) (9) Accumulated benefit obligation $ 281 $ 284 $ 309 $ 286 ____________ (1) The actuarial gain during the year ended December 31, 2022 was primarily related to increases in the discount rate assumptions. (2) The underfunded amounts are recognized in other long-term liabilities in our consolidated balance sheets. |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan 2023 2022 2021 2023 2022 2021 (in millions) Net actuarial loss (gain) $ (3) $ 25 $ (38) $ 27 $ 39 $ (48) Amortization of prior service cost (4) (4) (4) — — — Amortization of net loss — (3) (5) (6) (3) (5) Net amount recognized $ (7) $ 18 $ (47) $ 21 $ 36 $ (53) |
Schedule of Net Periodic Pension Cost (Credit) | The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan 2023 2022 2021 2023 2022 2021 (in millions) Service cost (1) $ 3 $ 3 $ 3 $ 2 $ 2 $ 2 Interest cost (2) 15 8 6 14 8 5 Expected return on plan assets (2) (20) (20) (19) (22) (23) (21) Amortization of prior service cost (2) 4 4 4 — — — Amortization of net loss (2) — 3 5 6 3 5 Net periodic pension cost (credit) $ 2 $ (2) $ (1) $ — $ (10) $ (9) ____________ (1) Recognized in owned and leased hotels expenses and general and administrative expenses, as applicable, in our consolidated statements of operations. (2) Recognized in other non-operating income, net in our consolidated statements of operations. |
Schedule of Weighted Average Assumptions Used | The weighted average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan 2023 2022 2023 2022 Discount rate 5.2 % 5.6 % 4.5 % 4.8 % Salary inflation N/A N/A 2.4 2.6 Pension inflation N/A N/A 2.8 3.1 The weighted average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan 2023 2022 2021 2023 2022 2021 Discount rate 5.6 % 2.9 % 2.6 % 4.8 % 1.9 % 1.3 % Expected return on plan assets 6.8 6.3 6.3 7.3 5.0 4.5 Salary inflation N/A N/A N/A 2.6 2.6 2.1 Pension inflation N/A N/A N/A 3.1 3.1 2.7 |
Schedule of Fair Value of Pension Assets | The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category: Domestic Plan U.K. Plan December 31, December 31, 2023 2022 2023 2022 (in millions) Level 1 Cash $ — $ — $ 1 $ 13 Bond funds 12 6 — — Level 2 Bond funds — — 37 35 Net asset value (1) Cash equivalents — — 7 24 Bond funds — — 82 44 Common collective trusts 266 265 — — Alternative investments — — 121 111 Other — — 50 50 $ 278 $ 271 $ 298 $ 277 ____________ (1) |
Schedule of Expected Benefit Payments | As of December 31, 2023, the benefits expected to be paid in the next five years and in the aggregate for the five years thereafter were as follows: Domestic Plan U.K. Plan Year (in millions) 2024 $ 30 $ 14 2025 25 14 2026 25 15 2027 25 15 2028 24 15 2029-2033 107 81 $ 236 $ 154 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Additional Information on Restricted Stock Units | The following table provides information about our RSU grants: Year Ended December 31, 2023 2022 2021 Number of shares granted (in thousands) 604 507 589 Weighted average grant date fair value per share $ 146.19 $ 150.58 $ 123.13 Aggregate intrinsic value of shares vested (in millions) $ 84 $ 97 $ 94 |
Schedule of Restricted Stock Units Activity | The following table summarizes the activity of our RSUs during the year ended December 31, 2023: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2022 1,013 $ 130.68 Granted 604 146.19 Vested (567) 121.86 Forfeited (38) 141.16 Outstanding as of December 31, 2023 1,012 144.49 |
Schedule of Additional Information on Stock Options | The following table provides information about our option grants: Year Ended December 31, 2023 2022 2021 Number of options granted (in thousands) 341 318 361 Weighted average exercise price per share $ 146.18 $ 150.67 $ 123.13 Weighted average grant date fair value per share $ 52.27 $ 51.15 $ 41.15 |
Schedule of Stock Options Valuation Assumptions | The weighted average grant date fair value per share of the option grants for each year was determined using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions: Year Ended December 31, 2023 2022 2021 Expected volatility (1) 30.16 % 33.28 % 33.13 % Dividend yield (2) 0.43 % 0.41 % — % Risk-free rate (3) 4.00 % 1.93 % 0.92 % Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of Hilton's stock price for a period that corresponds to the expected terms of the options. (2) At the time of grant for the 2021 options, the declaration and payment of dividends was suspended and we could not estimate when the payment of dividends would resume. For the options granted during the years ended December 31, 2023 and 2022, dividend yield was estimated based on the expected quarterly dividend and the three month average stock price at the dates of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected terms of the options at the dates of grant. (4) Estimated using the midpoint of the vesting periods and the contractual terms of the options as we do not have sufficient historical share option exercise data to estimate the term of our option grants. |
Schedule of Stock Options Activity | The following table summarizes the activity of our options during the year ended December 31, 2023: Number of Shares Weighted Average Exercise Price per Share (in thousands) Outstanding as of December 31, 2022 3,021 $ 87.61 Granted 341 146.18 Exercised (252) 80.34 Forfeited or expired (8) 143.97 Outstanding as of December 31, 2023 (1) 3,102 94.50 Exercisable as of December 31, 2023 (2) 2,437 81.12 ____________ (1) The aggregate intrinsic value was $272 million and the weighted average remaining contractual term was 5.4 years. (2) The aggregate intrinsic value was $246 million and the weighted average remaining contractual term was 4.6 years. |
Schedule of Additional Information on Performance Shares | The following table provides information about our performance share grants for the last three years: Year Ended December 31, 2023 2022 2021 Number of shares granted (in thousands) 244 216 241 Weighted average grant date fair value per share $ 146.18 $ 150.67 $ 123.13 Aggregate intrinsic value of shares vested (in millions) $ 42 $ 42 $ 36 |
Schedule of Performance Shares Activity | The following table summarizes the activity of our performance shares in aggregate for all of our performance measures during the year ended December 31, 2023, with the performance shares reflected at the target achievement percentage until completion of the performance period: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2022 730 $ 119.87 Granted 244 146.18 Performance achievement share adjustments (1) 207 93.33 Vested (493) 93.44 Forfeited (9) 128.03 Outstanding as of December 31, 2023 679 139.74 ____________ (1) Reflects the number of shares achieved above target, based on actual performance as determined at the completion of the respective three-year performance period. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings (Loss) Per Share | The following table presents the calculation of basic and diluted earnings per share ("EPS"): Year Ended December 31, 2023 2022 2021 (in millions, except per share amounts) Basic EPS: Numerator: Net income attributable to Hilton stockholders $ 1,141 $ 1,255 $ 410 Denominator: Weighted average shares outstanding 262 275 279 Basic EPS $ 4.36 $ 4.56 $ 1.47 Diluted EPS: Numerator: Net income attributable to Hilton stockholders $ 1,141 $ 1,255 $ 410 Denominator: Weighted average shares outstanding (1) 264 277 281 Diluted EPS (1) $ 4.33 $ 4.53 $ 1.46 ____________ (1) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
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 (2) Cash Flow Hedge Adjustment (3) Total (in millions) Balance as of December 31, 2020 $ (511) $ (289) $ (60) $ (860) Other comprehensive income (loss) before reclassifications (36) 68 11 43 Amounts reclassified from accumulated other comprehensive loss 7 11 20 38 Net other comprehensive income (loss) for the period (29) 79 31 81 Balance as of December 31, 2021 (540) (210) (29) (779) Other comprehensive income (loss) before reclassifications (9) (57) 114 48 Amounts reclassified from accumulated other comprehensive loss 1 8 16 25 Net other comprehensive income (loss) for the period (8) (49) 130 73 Balance as of December 31, 2022 (548) (259) 101 (706) Other comprehensive income (loss) before reclassifications 9 (11) 9 7 Amounts reclassified from accumulated other comprehensive loss — 8 (40) (32) Net other comprehensive income (loss) for the period 9 (3) (31) (25) Balance as of December 31, 2023 $ (539) $ (262) $ 70 $ (731) ____________ (1) Includes net investment hedge gains and intra-entity foreign currency transactions that are of a long-term investment nature. Amounts reclassified relate to the liquidation of investments in foreign entities which were recognized in our consolidated statements of operations in gain on foreign currency transactions during the year ended December 31, 2022 and in loss on sales of assets, net during the year ended December 31, 2021. (2) Amounts reclassified relate to the amortization of prior service cost and amortization of net loss and were recognized in other non-operating income, net in our consolidated statements of operations. (3) Amounts reclassified were the result of hedging instruments, including: (a) interest rate swaps, inclusive of interest rate swaps that were dedesignated in prior periods, with related amounts recognized in interest expense in our consolidated statements of operations and (b) forward contracts that hedge our foreign currency denominated fees, with related amounts recognized in various revenue line items, as applicable, in our consolidated statements of operations. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: Year Ended December 31, 2023 2022 2021 (in millions) Franchise and licensing fees $ 2,388 $ 2,085 $ 1,508 Base and other management fees (1) 393 338 203 Incentive management fees 274 196 98 Management and franchise 3,055 2,619 1,809 Ownership 1,244 1,076 598 Segment revenues 4,299 3,695 2,407 Amortization of contract acquisition costs (43) (38) (32) Other revenues 178 102 79 Other revenues from managed and franchised properties 5,827 5,037 3,344 Intersegment fees elimination (1) (26) (23) (10) Total revenues $ 10,235 $ 8,773 $ 5,788 ____________ (1) Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Reconciliation of Segment Operating Income (Loss) to Consolidated Income (Loss) Before Income Taxes | The following table presents operating income (loss) for each of our reportable segments, reconciled to consolidated income before income taxes: Year Ended December 31, 2023 2022 2021 (in millions) Management and franchise (1) $ 3,055 $ 2,619 $ 1,809 Ownership (1) 77 54 (91) Segment operating income 3,132 2,673 1,718 Amortization of contract acquisition costs (43) (38) (32) Other revenues, less other expenses 66 42 34 Net other expenses from managed and franchised properties (337) (39) (110) Depreciation and amortization expenses (147) (162) (188) General and administrative expenses (408) (382) (405) Impairment losses (38) — — Loss on sales of assets, net — — (7) Operating income 2,225 2,094 1,010 Interest expense (464) (415) (397) Gain (loss) on foreign currency transactions (16) 5 (7) Loss on debt extinguishment — — (69) Loss on investments in unconsolidated affiliate (92) — — Other non-operating income, net 39 50 23 Income before income taxes $ 1,692 $ 1,734 $ 560 ____________ (1) Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Revenues by Country | Total revenues by country were as follows: Year Ended December 31, 2023 2022 2021 (in millions) U.S. $ 7,986 $ 6,947 $ 4,765 All other (1) 2,249 1,826 1,023 $ 10,235 $ 8,773 $ 5,788 ____________ (1) There are no countries included in these amounts that individually represented more than 10 percent of total revenues for the years ended December 31, 2023, 2022 and 2021. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 10,235 | $ 8,773 | $ 5,788 |
Capitalized software costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life, intangibles | 3 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Expiration period | 10 years | ||
Performance shares [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance shares [member] | Target | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 100% | ||
Performance shares [member] | Minimum achievement percentage [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 0% | ||
Performance shares [member] | Maximum achievement percentage [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 200% | ||
Minimum [member] | Building and leasehold improvements [member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life, property and equipment | 8 years | ||
Minimum [member] | Furniture and equipment [member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life, property and equipment | 3 years | ||
Minimum [member] | Computer equipment [member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life, property and equipment | 3 years | ||
Minimum [member] | Management contract acquisition costs and development commissions [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life, intangibles | 20 years | ||
Minimum [member] | Franchise contract acquisition costs and development commission [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life, intangibles | 10 years | ||
Minimum [member] | Lease Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life, intangibles | 16 years | ||
Minimum [member] | Restricted stock units (RSUs) [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Maximum [member] | Building and leasehold improvements [member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life, property and equipment | 40 years | ||
Maximum [member] | Furniture and equipment [member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life, property and equipment | 8 years | ||
Maximum [member] | Computer equipment [member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life, property and equipment | 5 years | ||
Maximum [member] | Management contract acquisition costs and development commissions [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life, intangibles | 30 years | ||
Maximum [member] | Franchise contract acquisition costs and development commission [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life, intangibles | 20 years | ||
Maximum [member] | Lease Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life, intangibles | 35 years | ||
Maximum [member] | Restricted stock units (RSUs) [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Guest Loyalty Program | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 474 |
Revenues from Contract with Cus
Revenues from Contract with Customers - Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Revenue from Contract with Customer [Abstract] | |||
Contract liabilities balance | $ 1,521 | $ 1,331 | |
Cash received in advance and not recognized as revenue | 687 | ||
Revenue recognized | [1] | (378) | |
Other | [2] | $ (119) | |
[1] Primarily related to Hilton Honors, including co-branded credit card arrangements. Represents changes in estimated transaction prices for our performance obligations related to the issuance of Hilton Honors points, which had no effect on revenues. |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | two years |
Loyalty Program Revenues [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 769 |
Application, initiation and other fees [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 733 |
Revenues, Other Obligations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 19 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 800 | $ 1,209 | |
Accounts receivable, net | 1,487 | 1,327 | |
Property and equipment, net | 382 | 280 | |
Deferred income tax assets | 140 | 204 | |
Other non-current assets | 512 | 576 | |
Accounts payable, accrued expenses and other | 1,979 | 1,790 | |
Other long-term liabilities | 998 | 692 | |
Finance lease liabilities | 139 | ||
Current maturities of long-term debt | [1] | 39 | 39 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 46 | 29 | |
Accounts receivable, net | 17 | 13 | |
Property and equipment, net | 37 | 45 | |
Deferred income tax assets | 32 | 52 | |
Other non-current assets | 43 | 55 | |
Accounts payable, accrued expenses and other | 29 | 21 | |
Long-term debt | [2],[3] | 95 | 152 |
Finance lease liabilities | 86 | 115 | |
Current maturities of long-term debt | $ 19 | $ 22 | |
[1] Represents current maturities of finance lease liabilities and borrowings of consolidated VIEs. Includes current maturities of $19 million and $22 million as of December 31, 2023 and 2022, respectively. Includes finance lease liabilities of $86 million and $115 million as of December 31, 2023 and 2022, respectively. |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Additional Information (Details) $ in Millions, ¥ in Billions | 12 Months Ended | ||
Dec. 31, 2023 JPY (¥) Entity | Dec. 31, 2023 USD ($) Entity | Dec. 31, 2022 Entity | |
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | 2 | 2 | 2 |
Consolidated variable interest entity borrowings with maturity date in 2026 | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Repayments of long-term debt | ¥ 1.5 | $ 10 | |
Consolidated variable interest entity borrowings with maturity date in 2028 and 2029 | Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Repayments of long-term debt | ¥ 2 | $ 14 |
Loss on Investments in Uncons_2
Loss on Investments in Unconsolidated Affiliate (Details) - Unconsolidated Affiliate $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Other-than-temporary impairment loss | $ 44 |
Credit losses | $ 48 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment losses | $ 38 | $ 0 | $ 0 | ||
Lease Agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment losses | 4 | ||||
Management and franchise contracts recorded at Merger | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | [1] | 293 | |||
Finite-lived intangible assets, accumulated amortization | [1] | (278) | |||
Finite-lived intangible assets, net | [1] | 15 | |||
Contract acquisition costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 1,183 | 961 | |||
Finite-lived intangible assets, accumulated amortization | (244) | (206) | |||
Finite-lived intangible assets, net | 939 | 755 | |||
Development commissions and other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 162 | 149 | |||
Finite-lived intangible assets, accumulated amortization | (37) | (32) | |||
Finite-lived intangible assets, net | 125 | 117 | |||
Management and franchise contracts, net | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 1,345 | 1,403 | |||
Finite-lived intangible assets, accumulated amortization | (281) | (516) | |||
Finite-lived intangible assets, net | 1,064 | 887 | |||
Capitalized software costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 712 | 615 | |||
Finite-lived intangible assets, accumulated amortization | (576) | (515) | |||
Finite-lived intangible assets, net | 136 | 100 | |||
Lease Agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | [1] | 126 | [2] | 124 | |
Finite-lived intangible assets, accumulated amortization | [1] | (89) | [2] | (80) | |
Finite-lived intangible assets, net | [1] | 37 | [2] | 44 | |
Hilton Honors | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | [1] | 335 | |||
Finite-lived intangible assets, accumulated amortization | [1] | (318) | |||
Finite-lived intangible assets, net | [1] | 17 | |||
Other intangible assets, net | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 838 | 1,074 | |||
Finite-lived intangible assets, accumulated amortization | (665) | (913) | |||
Finite-lived intangible assets, net | $ 173 | $ 161 | |||
[1] Represents intangible assets that were initially recorded at fair value at the time of the Merger. During the year ended December 31, 2023 we recognized $4 million of impairment losses related to our leases intangible assets in our consolidated statement of operations; see Note 11: "Fair Value Measurements" for additional information. |
Intangible Assets - Amortizatio
Intangible Assets - Amortization of Amortizing Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Recognized in depreciation and amortization expense | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of contract acquisition costs | [1] | $ 104 | $ 116 | $ 135 |
Recognized as a reduction of franchise and licensing fees and base and other management fees | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of contract acquisition costs | 43 | 38 | 32 | |
Intangible assets recorded at fair value at the time of the Merger [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of contract acquisition costs | $ 37 | $ 45 | $ 47 | |
[1] Includes amortization expense of $37 million, $45 million and $47 million for the years ended December 31, 2023, 2022 and 2021, respectively, associated with assets that were initially recorded at fair value at the time of the Merger, some of which fully amortized during 2023. |
Intangible Assets - Schedule _2
Intangible Assets - Schedule Of Future Amortization (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Other Intangible Assets Disclosure [Abstract] | |
2024 | $ 76 |
2025 | 57 |
2026 | 34 |
2027 | 12 |
2028 | 11 |
Thereafter | 108 |
Finite-lived intangible assets, net | $ 298 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 38 | $ 0 | $ 0 |
Lease Agreements | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 4 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Property, Plant and Equipment [Abstract] | ||||||
Land | $ 8 | $ 9 | ||||
Buildings and leasehold improvements | 364 | 355 | ||||
Furniture and equipment | 407 | 299 | ||||
Construction-in-progress | 37 | 24 | ||||
Finance lease ROU assets | 86 | 82 | ||||
Property and equipment, gross | 902 | 769 | ||||
Accumulated depreciation and amortization | [1] | (520) | (489) | |||
Property and equipment, net | 382 | 280 | ||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciation and amortization expenses | 147 | 162 | $ 188 | |||
Property, Plant and Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Depreciation and amortization expenses | $ 43 | [1] | $ 46 | $ 53 | [1] | |
[1]During the years ended December 31, 2023, 2022 and 2021, depreciation and amortization expenses on property and equipment was $43 million, $46 million and $53 million, respectively. |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Property and equipment, net | $ 382 | $ 280 | |
Impairment losses | 38 | 0 | $ 0 |
Geographic Distribution, Domestic | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Property and equipment, net | 183 | 111 | |
Geographic Distribution, Foreign | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Property and equipment, net | 199 | $ 169 | |
Property, Plant and Equipment | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 1 | ||
Property subject to a finance lease [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 33 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Accrued employee compensation and benefits | $ 592 | $ 555 | |
Accounts payable | 457 | 368 | |
Operating lease liabilities, current | 116 | 112 | |
Insurance reserves, current | 99 | 86 | |
Other liabilities and accrued expenses | [1] | 715 | 669 |
Accounts payable, accrued expenses and other | $ 1,979 | $ 1,790 | |
[1]Includes deposit liabilities related to hotel operations and application fees, promotional liabilities, contract acquisition costs payable and income taxes payable, as well as accrued expenses related to taxes, interest, advertising, rent and other. |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 9,267 | $ 8,820 | |
Weighted average discount rate, finance leases | 6.01% | 5.90% | |
Unamortized deferred financing costs and discount | $ (71) | $ (73) | |
Current maturities of long-term debt | [1] | (39) | (39) |
Long-term debt | 9,157 | 8,708 | |
Senior secured term loan facility due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 0 | 2,619 | |
Senior secured term loan facility due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,000 | 0 | |
Debt instrument, interest rate, stated percentage | 7.21% | ||
Senior secured term loan facility due 2030 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 2,119 | 0 | |
Debt instrument, interest rate, stated percentage | 7.46% | ||
Senior notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 500 | 500 |
Debt instrument, interest rate, stated percentage | 5.375% | ||
Senior notes due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 600 | 600 |
Debt instrument, interest rate, stated percentage | 4.875% | ||
Senior notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 500 | 500 |
Debt instrument, interest rate, stated percentage | 5.75% | ||
Senior notes due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 800 | 800 |
Debt instrument, interest rate, stated percentage | 3.75% | ||
Senior notes due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 1,000 | 1,000 |
Debt instrument, interest rate, stated percentage | 4.875% | ||
Senior notes due 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 1,100 | 1,100 |
Debt instrument, interest rate, stated percentage | 4% | ||
Senior notes due 2032 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [2] | $ 1,500 | 1,500 |
Debt instrument, interest rate, stated percentage | 3.625% | ||
Finance lease liabilities [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3] | $ 139 | 164 |
Weighted average discount rate, finance leases | 6.01% | ||
Other debt of consolidated VIEs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | [3] | $ 9 | $ 37 |
Debt instrument, weighted average interest rate | 1.01% | ||
[1] Represents current maturities of finance lease liabilities and borrowings of consolidated VIEs. Long-term debt of our consolidated variable interest entities is included in finance lease liabilities and other debt of consolidated VIEs as applicable. Refer to Note 4: "Consolidated Variable Interest Entities" for additional information on debt payments that were made by our consolidated VIEs during the year ended December 31, 2023. |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2024 | $ 39 | |
2025 | 529 | |
2026 | 26 | |
2027 | 613 | |
2028 | 1,514 | |
Thereafter | 6,546 | |
Long-term debt, gross | $ 9,267 | $ 8,820 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 31, 2023 | |
Senior secured term loan facility due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt, converted from senior secured term loan facility due 2026 | $ 1,000 | ||
Debt instrument, basis spread on variable rate | 1.85% | ||
Senior secured term loan facility due 2030 | |||
Debt Instrument [Line Items] | |||
Long-term debt, converted from senior secured term loan facility due 2026 | $ 1,600 | ||
Debt instrument, basis spread on variable rate | 2.10% | ||
Debt Instrument, Increase (Decrease), Net | $ 500 | ||
Senior secured term loan facility, amendment | |||
Debt Instrument [Line Items] | |||
Original issue discounts and fees | 21 | ||
Original issue discounts and fees recognized as a reduction to the outstanding debt balance | 11 | ||
Original issue discounts and fees recognized in other non-operating income, net | 10 | ||
Senior secured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, maximum borrowing capacity | 1,913 | $ 1,750 | $ 2,000 |
Letters of credit outstanding | $ 87 | ||
Debt issuance costs | 9 | ||
Senior notes due 2026 | |||
Debt Instrument [Line Items] | |||
Premium paid to redeem debt instrument | 55 | ||
Write off of deferred debt issuance cost | $ 14 | ||
Senior secured revolving credit facility | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 250 |
Other Liabilities - Other Long-
Other Liabilities - Other Long-term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Other long-term tax liabilities | $ 645 | $ 349 |
Insurance reserves | 154 | 146 |
Deferred employee compensation and benefits | 86 | 91 |
Pension obligations | 34 | 40 |
Other | 79 | 66 |
Other long-term liabilities | $ 998 | $ 692 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring & Disclosure (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Carrying value [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate swaps, assets | [1] | $ 75 | $ 108 |
Carrying value [member] | Long-term Debt Excluding Finance Lease Liabilities and Other Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1],[2] | 9,119 | 8,619 |
Level 1 [member] | Long-term Debt Excluding Finance Lease Liabilities and Other Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [2] | 5,631 | 5,292 |
Level 2 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate swaps, assets | 75 | 108 | |
Level 3 [member] | Long-term Debt Excluding Finance Lease Liabilities and Other Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [2] | $ 3,129 | $ 2,616 |
[1] The fair values of cash equivalents and restricted cash equivalents approximate their carrying values due to their short-term maturities. The fair values of all other financial instruments not included in these tables are estimated to be equal to their carrying values. The carrying values and fair values exclude the deduction for unamortized deferred financing costs and any applicable discounts, as well as all finance lease liabilities and other debt of consolidated VIEs; refer to Note 9: "Debt" for additional information. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 38 | $ 0 | $ 0 |
Unconsolidated Affiliate | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Other-than-temporary impairment loss | 44 | ||
Other intangible assets, operating lease right-of-use assets and property and equipment | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 38 | ||
Other intangible assets, operating lease right-of-use assets and property and equipment | Growth rate | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Fair value measurement technique | 0.018 | ||
Other intangible assets, operating lease right-of-use assets and property and equipment | Discount rate | Minimum [member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Fair value measurement technique | 0.080 | ||
Other intangible assets, operating lease right-of-use assets and property and equipment | Discount rate | Maximum [member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Fair value measurement technique | 0.113 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Operating lease right-of-use assets | [1] | $ 618 | $ 662 |
Property and equipment, net | 382 | $ 280 | |
Estimate of Fair Value Measurement | Fair Value, Nonrecurring | Lease Agreements | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other intangible assets, net | 3 | ||
Estimate of Fair Value Measurement | Fair Value, Nonrecurring | Property Subject to Operating Lease | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Operating lease right-of-use assets | 69 | ||
Estimate of Fair Value Measurement | Fair Value, Nonrecurring | Property, Plant and Equipment | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Property and equipment, net | $ 1 | ||
[1]Includes $73 million and $78 million attributable to U.S. operations as of December 31, 2023 and 2022, respectively, and $545 million and $584 million to operations outside the U.S., respectively, most significantly in the U.K. and Germany for both years. |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |||
Weighted average remaining lease term, operating leases | 10 years 7 months 6 days | 11 years 3 months 18 days | |
Weighted average remaining lease term, finance leases | 5 years 1 month 6 days | 6 years 1 month 6 days | |
Weighted average discount rate, operating leases | 4.33% | 4.22% | |
Weighted average discount rate, finance leases | 6.01% | 5.90% | |
Operating lease right-of-use assets | [1] | $ 618 | $ 662 |
Operating lease liabilities, current | $ 116 | $ 112 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other | |
Operating lease liabilities | $ 808 | $ 832 | |
Finance lease right-of-use asset | $ 36 | $ 33 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net | |
Finance lease liability, current | $ 34 | $ 38 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt | |
Finance lease liability, non-current | $ 105 | $ 126 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt | |
Operating lease right-of-use, domestic | $ 73 | $ 78 | |
Operating lease right-of-use, international | $ 545 | $ 584 | |
[1]Includes $73 million and $78 million attributable to U.S. operations as of December 31, 2023 and 2022, respectively, and $545 million and $584 million to operations outside the U.S., respectively, most significantly in the U.K. and Germany for both years. |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Lessee Disclosure [Abstract] | ||||
Operating lease expense for fixed payments | $ 118 | $ 113 | $ 125 | |
Finance lease expense, amortization of ROU assets | 21 | 21 | 23 | |
Finance lease expense, interest on lease liabilities | 9 | 10 | 13 | |
Variable lease expense | [1] | $ 179 | $ 139 | $ 35 |
[1] Includes amounts related to variable rent expense for operating leases and variable interest expense for finance leases. |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities: operating cash flows from operating leases | $ 137 | $ 157 | $ 187 |
Cash paid for amounts included in the measurement of lease liabilities: financing cash flows from finance leases | 40 | 42 | 40 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 39 | 135 | 45 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 24 | $ 21 | $ 17 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Lessee Disclosure [Abstract] | |
2024 | $ 41 |
2025 | 35 |
2026 | 27 |
2027 | 16 |
2028 | 17 |
Thereafter | 28 |
Finance lease, total minimum lease payments | 164 |
Less: imputed interest, finance leases | (25) |
Finance lease liabilities | 139 |
2024 | 153 |
2025 | 137 |
2026 | 122 |
2027 | 115 |
2028 | 113 |
Thereafter | 535 |
Operating leases, total minimum lease payments | 1,175 |
Less: imputed interest, operating leases | (251) |
Operating lease liabilities | $ 924 |
Leases Additional Information (
Leases Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Hotel | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Lessee Disclosure [Abstract] | |||
Hotels under operating leases | 41 | ||
Hotels under finance leases | 5 | ||
Number of finance leases that were the liabilities of VIEs | 2 | ||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ | $ 38 | $ 0 | $ 0 |
Property subject to a finance lease [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ | $ 33 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. income (loss) before tax | $ 1,301 | $ 1,320 | $ 631 |
Foreign income (loss) before tax | 391 | 414 | (71) |
Income (loss) before income taxes | $ 1,692 | $ 1,734 | $ 560 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 586 | $ 306 | $ 89 |
State | 136 | 81 | 45 |
Foreign | 83 | 56 | 23 |
Total current | 805 | 443 | 157 |
Federal | (250) | 16 | 51 |
State | (83) | 6 | (14) |
Foreign | 69 | 12 | (41) |
Total deferred | (264) | 34 | (4) |
Provision (benefit) for income taxes | $ 541 | $ 477 | $ 153 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax provision (benefit) | $ 355 | $ 364 | $ 118 |
State income taxes, net of U.S. federal tax benefit | 45 | 65 | 22 |
Impact of foreign operations | 33 | 35 | 8 |
Change in deferred tax asset valuation allowances | 40 | (5) | 34 |
Income tax rate changes | (9) | 0 | (45) |
Provision for uncertain tax positions | 69 | 14 | 15 |
Other, net | 8 | 4 | 1 |
Provision (benefit) for income taxes | $ 541 | $ 477 | $ 153 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Net tax loss carryforwards and carrybacks | $ 604 | $ 641 |
Compensation | 124 | 117 |
Reserves | 81 | 66 |
Operating and finance lease liabilities | 290 | 301 |
Deferred income | 558 | 271 |
Foreign tax credit carryforwards | 63 | 49 |
Other | 114 | 102 |
Total gross deferred tax assets | 1,834 | 1,547 |
Less: valuation allowance | (698) | (649) |
Deferred tax assets | 1,136 | 898 |
Brands | (1,143) | (1,151) |
Operating and finance lease ROU assets | (195) | (206) |
Other | 59 | 72 |
Deferred tax liabilities | (1,397) | (1,429) |
Net deferred taxes | $ (261) | $ (531) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 337 | $ 375 | $ 451 |
Additions for tax positions related to prior years | 268 | 1 | 33 |
Additions for tax positions related to the current year | 4 | 3 | 2 |
Reductions for tax positions related to prior years | (2) | (32) | (39) |
Decrease resulting from settlements | (48) | 0 | (66) |
Lapse of statute of limitations | (4) | (5) | (2) |
Decrease resulting from currency translation adjustment | 0 | (5) | (4) |
Balance at end of year | $ 555 | $ 337 | $ 375 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, operating loss carryforwards, state | $ 604 | ||
Deferred tax assets, net operating loss carryforwards due to expire | $ 26 | ||
Net operating loss carryforwards expiration range | 2024 and 2043 | ||
Net operating loss carryforwards due to expire in one year | 1 million | ||
Deferred tax assets, net operating loss carryforwards not subject to expiration | $ 578 | ||
Net operating loss carryforwards valuation allowance | 498 | ||
Increase (decrease) unrecognized tax benefits | 263 | ||
Previously recorded reserve for unrecognized tax benefits related to certain tax matters | 73 | ||
Interest and penalties expense related to uncertain tax positions | 72 | $ 17 | $ 16 |
Accrual for interest and penalties | 150 | 79 | |
Unrecognized tax benefits that would impact effective tax rate | 314 | $ 337 | |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, tax credit carryforwards | 63 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards or carrybacks | $ 2,500 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Projected Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Domestic Plan | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | $ 284 | $ 370 | ||
Service cost | 0 | 0 | ||
Interest cost | [1] | 15 | 8 | $ 6 |
Actuarial loss (gain) | [2] | 5 | (71) | |
Effect of foreign currency exchange rates | 0 | 0 | ||
Benefits paid | (23) | (23) | ||
Benefit obligation at end of year | 281 | 284 | 370 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 271 | 374 | ||
Actual return on plan assets, net of expenses | 25 | (80) | ||
Employer contributions | 5 | 0 | ||
Effect of foreign currency exchange rates | 0 | 0 | ||
Benefits paid | (23) | (23) | ||
Fair value of plan assets at end of year | 278 | 271 | 374 | |
Funded status at end of year (underfunded) | [3] | (3) | (13) | |
Defined benefit plan, accumulated benefit obligation | 281 | 284 | ||
UK Plan | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 286 | 490 | ||
Service cost | 2 | 2 | ||
Interest cost | [1] | 14 | 8 | 5 |
Actuarial loss (gain) | [2] | 4 | (152) | |
Effect of foreign currency exchange rates | 16 | (49) | ||
Benefits paid | (13) | (13) | ||
Benefit obligation at end of year | 309 | 286 | 490 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 277 | 505 | ||
Actual return on plan assets, net of expenses | 10 | (186) | ||
Employer contributions | 9 | 21 | ||
Effect of foreign currency exchange rates | 15 | (50) | ||
Benefits paid | (13) | (13) | ||
Fair value of plan assets at end of year | 298 | 277 | $ 505 | |
Funded status at end of year (underfunded) | [3] | (11) | (9) | |
Defined benefit plan, accumulated benefit obligation | $ 309 | $ 286 | ||
[1] Recognized in other non-operating income, net in our consolidated statements of operations. The actuarial gain during the year ended December 31, 2022 was primarily related to increases in the discount rate assumptions. The underfunded amounts are recognized in other long-term liabilities in our consolidated balance sheets. |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Domestic Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ (3) | $ 25 | $ (38) |
Prior service cost | (4) | (4) | (4) |
Amortization of net loss | 0 | (3) | (5) |
Net amount recognized in accumulated other comprehensive loss | (7) | 18 | (47) |
UK Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 27 | 39 | (48) |
Prior service cost | 0 | 0 | 0 |
Amortization of net loss | (6) | (3) | (5) |
Net amount recognized in accumulated other comprehensive loss | $ 21 | $ 36 | $ (53) |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Pension Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Domestic Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | [1] | $ 3 | $ 3 | $ 3 |
Interest cost | [2] | 15 | 8 | 6 |
Expected return on plan assets | [2] | (20) | (20) | (19) |
Amortization of prior service cost | [2] | 4 | 4 | 4 |
Amortization of net loss | [2] | 0 | 3 | 5 |
Net periodic pension cost (credit) | 2 | (2) | (1) | |
UK Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | [1] | 2 | 2 | 2 |
Interest cost | [2] | 14 | 8 | 5 |
Expected return on plan assets | [2] | (22) | (23) | (21) |
Amortization of prior service cost | [2] | 0 | 0 | 0 |
Amortization of net loss | [2] | 6 | 3 | 5 |
Net periodic pension cost (credit) | $ 0 | $ (10) | $ (9) | |
[1] Recognized in owned and leased hotels expenses and general and administrative expenses, as applicable, in our consolidated statements of operations. Recognized in other non-operating income, net in our consolidated statements of operations. |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
UK Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 4.50% | 4.80% | |
Salary inflation, benefit obligation | 2.40% | 2.60% | |
Pension inflation, benefit obligation | 2.80% | 3.10% | |
Discount rate, net periodic pension cost | 4.80% | 1.90% | 1.30% |
Expected return on plan assets, net periodic pension cost | 7.30% | 5% | 4.50% |
Salary inflation, net periodic pension cost | 2.60% | 2.60% | 2.10% |
Pension inflation, net periodic pension cost | 3.10% | 3.10% | 2.70% |
Domestic Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 5.20% | 5.60% | |
Discount rate, net periodic pension cost | 5.60% | 2.90% | 2.60% |
Expected return on plan assets, net periodic pension cost | 6.80% | 6.30% | 6.30% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Pension Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Domestic Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 278 | $ 271 | $ 374 | |
Domestic Plan | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 12 | 6 | ||
Domestic Plan | Common collective trusts [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 266 | 265 | |
UK Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 298 | 277 | $ 505 | |
UK Plan | Cash | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1 | |||
UK Plan | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 13 | |||
UK Plan | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
UK Plan | Bond funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 37 | 35 | ||
UK Plan | Bond funds [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 82 | 44 | |
UK Plan | Cash Equivalents | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 7 | 24 | |
UK Plan | Alternative investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 121 | 111 | |
UK Plan | Other Investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | $ 50 | $ 50 | |
[1]Certain investments are measured at net asset value per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Domestic Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 30 |
2025 | 25 |
2026 | 25 |
2027 | 25 |
2028 | 24 |
2029-2033 | 107 |
Defined benefit plan expected future benefit payments | 236 |
UK Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 14 |
2025 | 14 |
2026 | 15 |
2027 | 15 |
2028 | 15 |
2029-2033 | 81 |
Defined benefit plan expected future benefit payments | $ 154 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Multiemployer Plan, Pension, Significant, Plan Asset | $ 303 | $ 294 |
Multiemployer Plan, Pension, Significant, Accumulated Benefit Obligation | $ 301 | $ 303 |
Domestic Plan | Return-seeking assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, target allocation percentage | 70% | |
Domestic Plan | Liability-driven investments and cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, target allocation percentage | 30% | |
UK Plan | Return-seeking assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, target allocation percentage | 75% | |
UK Plan | Liability-driven investments and cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, target allocation percentage | 25% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Additional Information on Restricted Stock Units (Details) - Restricted stock units (RSUs) [member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Additional Information On Restricted Stock Units [Line Items] | |||
Number of shares granted | 604 | 507 | 589 |
Weighted average grant date fair value per share, granted | $ 146.19 | $ 150.58 | $ 123.13 |
Aggregate intrinsic value of shares vested | $ 84 | $ 97 | $ 94 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Restricted Stock Units Award Activity (Details) - Restricted stock units (RSUs) [member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning balance | 1,013 | ||
Number of shares granted | 604 | 507 | 589 |
Vested | (567) | ||
Forfeited | (38) | ||
Outstanding, ending balance | 1,012 | 1,013 | |
Weighted average grant date fair value, outstanding beginning balance | $ 130.68 | ||
Weighted average grant date fair value per share, granted | 146.19 | $ 150.58 | $ 123.13 |
Weighted average grant date fair value, vested | 121.86 | ||
Weighted average grant date fair value, forfeited | 141.16 | ||
Weighted average grant date fair value, outstanding ending balance | $ 144.49 | $ 130.68 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Additional Information on Stock Options (Details) - Stock options - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Additional Information on Stock Options [Line Items] | |||
Number of options granted | 341 | 318 | 361 |
Weighted average exercise price per share | $ 146.18 | $ 150.67 | $ 123.13 |
Weighted average grant date fair value per share | $ 52.27 | $ 51.15 | $ 41.15 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock options | 12 Months Ended | |||
Dec. 31, 2023 Rate | Dec. 31, 2022 Rate | Dec. 31, 2021 Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 30.16% | 33.28% | 33.13% |
Dividend yield | [2] | 0.43% | 0.41% | 0% |
Risk-free interest rate | [3] | 4% | 1.93% | 0.92% |
Expected term (in years) | [4] | 6 years | 6 years | 6 years |
[1] Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of Hilton's stock price for a period that corresponds to the expected terms of the options. At the time of grant for the 2021 options, the declaration and payment of dividends was suspended and we could not estimate when the payment of dividends would resume. For the options granted during the years ended December 31, 2023 and 2022, dividend yield was estimated based on the expected quarterly dividend and the three month average stock price at the dates of grant. Based on the yields of U.S. Department of Treasury instruments with similar expected terms of the options at the dates of grant. Estimated using the midpoint of the vesting periods and the contractual terms of the options as we do not have sufficient historical share option exercise data to estimate the term of our option grants. |
Share-Based Compensation - Sc_5
Share-Based Compensation - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Forfeited or expired | $ (8,000) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures and Expirations, Weighted Average Grant Date Fair Value | $ 143.97 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding, beginning balance | 3,021 | ||||
Granted | 341 | 318 | 361 | ||
Exercised | (252) | ||||
Outstanding, ending balance | 3,102 | [1] | 3,021 | ||
Exercisable, ending balance | [2] | 2,437 | |||
Weighted average exercise price, beginning balance | $ 87.61 | ||||
Weighted average exercise price, granted | 146.18 | $ 150.67 | $ 123.13 | ||
Weighted average exercise price, exercised | 80.34 | ||||
Weighted average exercise price, ending balance | 94.50 | [1] | $ 87.61 | ||
Weighted average exercise price, exercisable | [2] | $ 81.12 | |||
Outstanding, aggregate intrinsic value | $ 272,000,000 | ||||
Outstanding, weighted average remaining contractual term | 5 years 4 months 24 days | ||||
Exercisable, aggregate intrinsic value | $ 246,000,000 | ||||
Exercisable, weighted average remaining contractual term | 4 years 7 months 6 days | ||||
[1] The aggregate intrinsic value was $272 million and the weighted average remaining contractual term was 5.4 years. The aggregate intrinsic value was $246 million and the weighted average remaining contractual term was 4.6 years. |
Share-Based Compensation - Sc_6
Share-Based Compensation - Schedule of Additional Information on Performance Shares (Details) - Performance shares [member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 244 | 216 | 241 |
Weighted average grant date fair value per share, granted | $ 146.18 | $ 150.67 | $ 123.13 |
Aggregate intrinsic value of shares vested | $ 42 | $ 42 | $ 36 |
Incremental share based compensation expense | $ 25 | $ 70 |
Share-Based Compensation - Sc_7
Share-Based Compensation - Schedule of Performance Shares Award Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Restricted stock units (RSUs) [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, ending balance | 1,012 | 1,013 | ||
Number of shares granted | 604 | 507 | 589 | |
Vested | (567) | |||
Forfeited | (38) | |||
Weighted average grant date fair value, outstanding beginning balance | $ 130.68 | |||
Weighted average grant date fair value per share, granted | 146.19 | $ 150.58 | $ 123.13 | |
Weighted average grant date fair value, vested | 121.86 | |||
Weighted average grant date fair value, forfeited or canceled | 141.16 | |||
Weighted average grant date fair value, outstanding ending balance | $ 144.49 | $ 130.68 | ||
Aggregate intrinsic value of shares vested | $ 84 | $ 97 | $ 94 | |
Performance shares [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, ending balance | 679 | 730 | ||
Number of shares granted | 244 | 216 | 241 | |
Performance achievement share adjustments | [1] | 207 | ||
Vested | (493) | |||
Forfeited | (9) | |||
Weighted average grant date fair value, outstanding beginning balance | $ 119.87 | |||
Weighted average grant date fair value per share, granted | 146.18 | $ 150.67 | $ 123.13 | |
Performance achievement share adjustments, grant date fair value per share | [1] | 93.33 | ||
Weighted average grant date fair value, vested | 93.44 | |||
Weighted average grant date fair value, forfeited or canceled | 128.03 | |||
Weighted average grant date fair value, outstanding ending balance | $ 139.74 | $ 119.87 | ||
Aggregate intrinsic value of shares vested | $ 42 | $ 42 | $ 36 | |
[1] Reflects the number of shares achieved above target, based on actual performance as determined at the completion of the respective three-year performance period. |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 169 | $ 162 | $ 193 |
Tax benefit | 48 | $ 48 | $ 54 |
Unrecognized compensation costs related to unvested awards | $ 123 | ||
Unrecognized compensation costs related to unvested awards, weighted-average period | 1 year 8 months 12 days | ||
Shares of common stock reserved for future issuance, in millions | 10.4 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Basic EPS: | ||||
Net income (loss) attributable to Hilton stockholders | $ 1,141 | $ 1,255 | $ 410 | |
Weighted average shares outstanding, in millions | 262 | 275 | 279 | |
Basic EPS | $ 4.36 | $ 4.56 | $ 1.47 | |
Diluted EPS: | ||||
Net income (loss) attributable to Hilton stockholders | $ 1,141 | $ 1,255 | $ 410 | |
Weighted average shares outstanding, in millions | [1] | 264 | 277 | 281 |
Diluted EPS | $ 4.33 | $ 4.53 | $ 1.46 | |
Antidilutive securities excluded from computation of EPS, in millions | 1 | |||
[1] Certain shares related to share-based compensation were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method, including less than 1 million shares for all periods. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ (706) | ||||
Ending balance | (731) | $ (706) | |||
Currency translation adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [1] | (548) | (540) | $ (511) | |
Other comprehensive income (loss) before reclassifications | [1] | 9 | (9) | (36) | |
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | 1 | 7 | |
Other comprehensive income (loss) | [1] | 9 | (8) | (29) | |
Ending balance | [1] | (539) | (548) | (540) | |
Pension liability adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [2] | (259) | (210) | (289) | |
Other comprehensive income (loss) before reclassifications | [2] | (11) | (57) | 68 | |
Amounts reclassified from accumulated other comprehensive loss | [2] | 8 | 8 | 11 | |
Other comprehensive income (loss) | [2] | (3) | (49) | 79 | |
Ending balance | [2] | (262) | (259) | (210) | |
Cash flow hedge adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | [3] | 101 | (29) | (60) | |
Other comprehensive income (loss) before reclassifications | [3] | 9 | 114 | 11 | |
Amounts reclassified from accumulated other comprehensive loss | [3] | (40) | 16 | 20 | |
Other comprehensive income (loss) | [3] | (31) | 130 | 31 | |
Ending balance | [3] | 70 | 101 | (29) | |
Accumulated other comprehensive loss | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (706) | (779) | (860) | ||
Other comprehensive income (loss) before reclassifications | 7 | 48 | 43 | ||
Amounts reclassified from accumulated other comprehensive loss | (32) | 25 | 38 | ||
Other comprehensive income (loss) | (25) | 73 | [4] | 81 | |
Ending balance | $ (731) | $ (706) | $ (779) | ||
[1] Includes net investment hedge gains and intra-entity foreign currency transactions that are of a long-term investment nature. Amounts reclassified relate to the liquidation of investments in foreign entities which were recognized in our consolidated statements of operations in gain on foreign currency transactions during the year ended December 31, 2022 and in loss on sales of assets, net during the year ended December 31, 2021. Amounts reclassified relate to the amortization of prior service cost and amortization of net loss and were recognized in other non-operating income, net in our consolidated statements of operations. Amounts reclassified were the result of hedging instruments, including: (a) interest rate swaps, inclusive of interest rate swaps that were dedesignated in prior periods, with related amounts recognized in interest expense in our consolidated statements of operations and (b) forward contracts that hedge our foreign currency denominated fees, with related amounts recognized in various revenue line items, as applicable, in our consolidated statements of operations. Amount related to noncontrolling interests was less than $1 million. |
Business Segments - Hotel Prope
Business Segments - Hotel Properties by Segment (Details) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenues from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | $ 10,235 | $ 8,773 | $ 5,788 | |
Amortization of contract acquisition costs | (43) | (38) | (32) | |
Segment revenues | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 4,299 | 3,695 | 2,407 | |
Segment revenues | Management and franchise | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 3,055 | 2,619 | 1,809 | |
Segment revenues | Ownership | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 1,244 | 1,076 | 598 | |
Segment Reconciling Items | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Amortization of contract acquisition costs | (43) | (38) | (32) | |
Intersegment eliminations | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | [1] | 26 | 23 | 10 |
Franchise and licensing fees | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 2,370 | 2,068 | 1,493 | |
Franchise and licensing fees | Management and franchise | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 2,388 | 2,085 | 1,508 | |
Base and other management fees | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 342 | 294 | 176 | |
Base and other management fees | Management and franchise | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | [1] | 393 | 338 | 203 |
Incentive management fees | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 274 | 196 | 98 | |
Incentive management fees | Management and franchise | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 274 | 196 | 98 | |
Other revenues | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 178 | 102 | 79 | |
Other revenues | Segment Reconciling Items | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 178 | 102 | 79 | |
Direct reimbursements from managed and franchised properties | Segment Reconciling Items | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | $ 5,827 | $ 5,037 | $ 3,344 | |
[1] Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Business Segments - Reconcili_2
Business Segments - Reconciliation of Segment Operating Income to Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Amortization of contract acquisition costs | $ (43) | $ (38) | $ (32) | |
Other revenues, less other expenses | 66 | 42 | 34 | |
Net other expenses from managed and franchised properties | (337) | (39) | (110) | |
Depreciation and amortization expenses | (147) | (162) | (188) | |
General and administrative expenses | (408) | (382) | (405) | |
Impairment losses | (38) | 0 | 0 | |
Gain (loss) on sales of assets, net | 0 | 0 | (7) | |
Operating income (loss) | 2,225 | 2,094 | 1,010 | |
Interest expense | (464) | (415) | (397) | |
Gain (loss) on foreign currency transactions | (16) | 5 | (7) | |
Loss on debt extinguishment | 0 | 0 | 69 | |
Gain (loss) on investments in unconsolidated affiliate | (92) | 0 | 0 | |
Other non-operating income (loss), net | 39 | 50 | 23 | |
Income (loss) before income taxes | 1,692 | 1,734 | 560 | |
Management and franchise | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | [1] | 3,055 | 2,619 | 1,809 |
Ownership | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | [1] | 77 | 54 | (91) |
Segment operating income | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | $ 3,132 | $ 2,673 | $ 1,718 | |
[1] Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Business Segments - Schedule of
Business Segments - Schedule of Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 15,401 | $ 15,512 |
Business Segments - Schedule _2
Business Segments - Schedule of Revenues by Country (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 10,235 | $ 8,773 | $ 5,788 | |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 7,986 | 6,947 | 4,765 | |
All other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | [1] | $ 2,249 | $ 1,826 | $ 1,023 |
[1] There are no countries included in these amounts that individually represented more than 10 percent of total revenues for the years ended December 31, 2023, 2022 and 2021. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies [Line Items] | ||
Total current liabilities | $ 3,722 | $ 3,372 |
Performance guarantees | ||
Commitments and Contingencies [Line Items] | ||
Guarantees, expiration | 2025 to 2043 | |
Guarantees, possible cash outlays | $ 9 | |
Debt guarantee | ||
Commitments and Contingencies [Line Items] | ||
Guarantees, possible cash outlays | $ 140 |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |||
Interest paid | $ 492 | $ 385 | $ 359 |
Settlements of interest rate swap with financing component | 53 | 2 | 0 |
Income taxes, net of refunds | $ 478 | $ 389 | $ 181 |