Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |
Document Type | S4 |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2017 |
Trading Symbol | hlt |
Entity Registrant Name | Hilton Worldwide Holdings Inc. |
Entity Central Index Key | 1,585,689 |
Entity Filer Category | Large Accelerated Filer |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Current Assets: | |||||||
Cash and cash equivalents | $ 862 | $ 1,062 | $ 513 | ||||
Restricted cash and cash equivalents | 124 | 121 | 120 | ||||
Accounts receivable, net of allowance for doubtful accounts | 911 | 755 | 664 | ||||
Prepaid expenses | 129 | 89 | 112 | ||||
Income taxes receivable | 0 | 13 | 97 | ||||
Other | 43 | 39 | 35 | ||||
Current assets of discontinued operations | 0 | 1,478 | 1,044 | ||||
Total current assets | 2,069 | 3,557 | 2,585 | ||||
Intangibles and Other Assets: | |||||||
Goodwill | 5,135 | 5,218 | 5,280 | ||||
Brands | 4,856 | [1] | 4,848 | [2] | 4,919 | [2] | |
Management and franchise contracts, net | 930 | 963 | 1,089 | ||||
Other intangible assets, net | 431 | 447 | 523 | ||||
Property and equipment, net | 341 | 341 | 411 | ||||
Deferred income tax assets | 82 | 82 | 59 | ||||
Other | 443 | 408 | 332 | ||||
Non-current assets of discontinued operations | 0 | 10,347 | 10,424 | ||||
Total intangibles and other assets | 12,218 | 22,654 | 23,037 | ||||
Total assets | 14,287 | 26,211 | 25,622 | ||||
Current Liabilities: | |||||||
Accounts payable, accrued expenses and other | 1,798 | 1,821 | 1,619 | ||||
Current maturities of long-term debt | [3] | 41 | 33 | 7 | |||
Income taxes payable | 128 | 56 | 27 | ||||
Current liabilities of discontinued operations | 0 | 774 | 812 | ||||
Total current liabilities | 1,967 | 2,684 | 2,465 | ||||
Long-term debt | 6,588 | 6,583 | 5,887 | ||||
Deferred revenues | 22 | 42 | 251 | ||||
Deferred income tax liabilities | 1,723 | 1,778 | 1,875 | ||||
Liability for guest loyalty program | 898 | 889 | 784 | ||||
Other | 1,493 | 1,492 | 1,265 | ||||
Non-current liabilities of discontinued operations | 0 | 6,894 | 7,144 | ||||
Total liabilities | 12,691 | 20,362 | 19,671 | ||||
Commitments and contingencies | |||||||
Equity: | |||||||
Preferred stock | 0 | 0 | 0 | ||||
Common stock | 3 | [4] | 3 | [4],[5] | 3 | [5] | |
Treasury stock, at cost | (70) | 0 | |||||
Additional paid-in capital | 10,214 | [4] | 10,220 | [4],[5] | 10,158 | [5] | |
Accumulated deficit | (7,631) | (3,323) | (3,392) | ||||
Accumulated other comprehensive loss | (918) | (1,001) | (784) | ||||
Total Hilton stockholders' equity | 1,598 | 5,899 | 5,985 | ||||
Noncontrolling interests | (2) | (50) | (34) | ||||
Total equity | 1,596 | 5,849 | 5,951 | ||||
Total liabilities and equity | $ 14,287 | $ 26,211 | $ 25,622 | ||||
[1] | Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone (the "Merger"). | ||||||
[2] | Represents intangible assets that were initially recorded at their fair value at the time of the Merger. | ||||||
[3] | Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. | ||||||
[4] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. | ||||||
[5] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Statement of Financial Position [Abstract] | ||||||
Allowance for doubtful accounts | $ 28 | $ 27 | $ 27 | |||
Variable interest entities - current assets | 74 | 167 | 141 | |||
Variable interest entities - total intangibles and other assets | 172 | 569 | 481 | |||
Variable interest entities - current liabilities | 44 | 124 | 157 | |||
Variable interest entities - total liabilities | $ 270 | $ 766 | $ 627 | |||
Preferred stock, par value (per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred stock, authorized shares | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | |||
Preferred stock, issued shares | 0 | 0 | 0 | |||
Preferred stock, outstanding shares | 0 | 0 | 0 | |||
Common stock, par value (per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Common stock, authorized shares | 10,000,000,000 | [1] | 10,000,000,000 | [1],[2] | 10,000,000,000 | [2] |
Common stock, issued shares | 330,851,894 | [1] | 329,351,581 | [1],[2] | 329,162,376 | [2] |
Common stock, outstanding shares | 329,628,890 | [1] | 329,341,992 | [1],[2] | 329,152,787 | [2] |
Treasury stock, shares | 1,223,004 | 9,589 | ||||
[1] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. | |||||
[2] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Revenues | |||||||||
Franchise fees | $ 294 | $ 253 | $ 1,154 | $ 1,087 | $ 905 | ||||
Base and other management fees | 83 | 60 | 242 | 230 | 227 | ||||
Incentive management fees | 52 | 36 | 142 | 138 | 133 | ||||
Owned and leased hotels | 300 | 319 | 1,452 | 1,596 | 1,776 | ||||
Other revenues | 37 | 17 | 82 | 71 | 80 | ||||
Total revenues excluding reimbursement revenue | 766 | 685 | 3,072 | 3,122 | 3,121 | ||||
Other revenues from managed and franchised properties | 1,395 | 1,041 | 4,310 | 4,011 | 3,567 | ||||
Total revenues | 2,161 | 1,726 | 7,382 | 7,133 | 6,688 | ||||
Expenses | |||||||||
Owned and leased hotels | 272 | 307 | 1,295 | 1,414 | 1,586 | ||||
Depreciation and amortization | 89 | 92 | 364 | 385 | 363 | ||||
Impairment loss | 0 | 15 | 15 | 9 | 0 | ||||
General and administrative | 105 | 83 | 403 | 537 | 411 | ||||
Other expenses | 23 | 18 | 51 | 40 | 58 | ||||
Total expenses excluding cost of reimbursable expense | 489 | 515 | 2,128 | 2,385 | 2,418 | ||||
Other expenses from managed and franchised properties | 1,395 | 1,041 | 4,310 | 4,011 | 3,567 | ||||
Total expenses | 1,884 | 1,556 | 6,438 | 6,396 | 5,985 | ||||
Gain on sales of assets, net | 8 | 163 | 0 | ||||||
Operating income | 277 | 170 | 952 | 900 | 703 | ||||
Interest expense | (104) | (90) | (394) | (377) | (416) | ||||
Gain (loss) on foreign currency transactions | (4) | (12) | (16) | (41) | 26 | ||||
Loss on debt extinguishment | (60) | 0 | |||||||
Other non-operating income, net | 1 | 2 | 14 | 51 | 20 | ||||
Income from continuing operations before income taxes | 110 | 70 | 556 | 533 | 333 | ||||
Income tax benefit (expense) | (35) | 121 | (564) | 348 | (154) | ||||
Income (loss) from continuing operations, net of taxes | 75 | 191 | (8) | 881 | 179 | ||||
Income from discontinued operations, net of taxes | 0 | 119 | 372 | 535 | 503 | ||||
Net income | 75 | 310 | 364 | 1,416 | 682 | ||||
Net income attributable to noncontrolling interests | (1) | (1) | (16) | (12) | (9) | ||||
Net income attributable to Hilton stockholders | $ 74 | $ 309 | $ 348 | $ 1,404 | $ 673 | ||||
Earnings (loss) per share, basic: | |||||||||
Net income (loss) from continuing operations per share | $ 0.22 | $ 0.58 | [1],[2] | $ (0.05) | [1],[3] | $ 2.67 | [3] | $ 0.53 | [3] |
Net income from discontinued operations per share | 0 | 0.36 | [1],[2] | 1.11 | [1],[3] | 1.60 | [3] | 1.52 | [3] |
Net income per share, basic | 0.22 | 0.94 | [2] | 1.06 | [3] | 4.27 | [3] | 2.05 | [3] |
Earnings (loss) per share, diluted: | |||||||||
Net income (loss) from continuing operations per share | 0.22 | 0.58 | [1],[2] | (0.05) | [1],[3] | 2.66 | [1],[3] | 0.53 | [3] |
Net income from discontinued operations per share | 0 | 0.36 | [2] | 1.11 | [3] | 1.60 | [3] | 1.52 | [3] |
Net income per share, diluted | 0.22 | 0.94 | [1],[2] | 1.06 | [1],[3] | 4.26 | [1],[3] | 2.05 | [3] |
Cash dividends declared per share | $ 0.15 | $ 0.21 | [2] | $ 0.84 | [3] | $ 0.42 | [3] | $ 0 | [3] |
[1] | The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. | ||||||||
[2] | Weighted average shares outstanding used in the computation of basic and diluted earnings per share and cash dividends declared per share were adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. | ||||||||
[3] | Weighted average shares outstanding used in the computation of basic and diluted earnings per share and cash dividends declared per share were adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||||||||||
Net income (loss) | $ 75 | $ (382) | $ 192 | $ 244 | $ 310 | $ 816 | $ 283 | $ 167 | $ 150 | $ 364 | $ 1,416 | $ 682 |
Other comprehensive income (loss), net of tax benefit (expense): | ||||||||||||
Currency translation adjustment | 20 | 13 | (159) | (134) | (299) | |||||||
Pension liability adjustment | 1 | 1 | (57) | (15) | (45) | |||||||
Cash flow hedge adjustment | (2) | (6) | (2) | (7) | (9) | |||||||
Total other comprehensive income (loss) | 19 | 8 | (218) | (156) | (353) | |||||||
Comprehensive income | 94 | 318 | 146 | 1,260 | 329 | |||||||
Comprehensive income (loss) attributable to noncontrolling interests | 0 | 1 | (15) | (12) | (14) | |||||||
Comprehensive income attributable to Hilton stockholders | $ 94 | $ 319 | $ 131 | $ 1,248 | $ 315 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||
Foreign currency translation adjustment, tax | $ 1 | $ (3) | $ 19 | $ (8) | $ (73) |
Pension liability adjustment, tax | (1) | (1) | (2) | 10 | 27 |
Cash flow hedge adjustment, tax | $ 2 | $ 4 | $ 2 | $ 4 | $ 5 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||||
Net income | $ 75 | $ 310 | $ 364 | $ 1,416 | $ 682 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization, including discontinued operations | 89 | 169 | 686 | 692 | 628 |
Impairment loss | 0 | 15 | 15 | 9 | 0 |
Gain on sales of assets, net | (9) | (306) | 0 | ||
Loss (gain) on foreign currency transactions, including discontinued operations | (4) | (12) | 13 | 41 | (26) |
Loss on debt extinguishment | 60 | 0 | |||
Share-based compensation | 15 | 11 | 65 | 124 | 78 |
Amortization of deferred financing costs and other | 32 | 38 | 50 | ||
Distributions from unconsolidated affiliates | 22 | 26 | 22 | ||
Deferred income taxes, including discontnued operations | (51) | (32) | (79) | (479) | 14 |
Accounts receivable, net | (143) | (47) | (143) | ||
Inventories | 15 | (39) | 56 | ||
Prepaid expenses | 0 | (27) | (8) | ||
Income taxes receivable | 84 | 35 | (57) | ||
Other current assets | (2) | 32 | (10) | ||
Accounts payable, accrued expenses and other | 232 | 90 | 8 | ||
Income taxes payable | 28 | 13 | 10 | ||
Change in timeshare financing receivables | (54) | (49) | (27) | ||
Change in deferred revenues | (219) | (212) | (179) | ||
Change in liability for guest loyalty program | 154 | 64 | 206 | ||
Change in other liabilities | 199 | 154 | 12 | ||
Other | (129) | (146) | (38) | (129) | (9) |
Net cash provided by operating activities | 63 | 339 | 1,365 | 1,446 | 1,307 |
Investing Activities: | |||||
Capital expenditures for property and equipment | (9) | (84) | (317) | (310) | (268) |
Acquisitions, net of cash acquired | 0 | (1,402) | 0 | ||
Proceeds from asset dispositions | 11 | 2,205 | 44 | ||
Contract acquisition costs | (13) | (9) | (55) | (37) | (65) |
Capitalized software costs | (9) | (11) | (81) | (62) | (69) |
Other | (19) | (6) | (36) | 20 | 48 |
Net cash provided by (used in) investing activities | (50) | (110) | (478) | 414 | (310) |
Financing Activities: | |||||
Borrowings | 1,823 | 0 | 4,715 | 48 | 350 |
Repayment of debt | (1,824) | (32) | (4,359) | (1,624) | (1,424) |
Debt issuance costs and redemption premium | (66) | 0 | (76) | 0 | (9) |
Capital contribution | 0 | 0 | 13 | ||
Dividends paid | (49) | (69) | (277) | (138) | 0 |
Cash transferred in spin-offs of Park and HGV | (501) | 0 | |||
Repurchases of common stock | (70) | 0 | |||
Distributions to noncontrolling interests | (1) | (2) | (32) | (8) | (5) |
Tax withholdings on share-based compensation | (28) | (13) | (15) | (31) | 0 |
Net cash used in financing activities | (716) | (116) | (44) | (1,753) | (1,075) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 5 | 4 | (15) | (19) | (14) |
Net increase (decrease) in cash, restricted cash and cash equivalents | (698) | 117 | 828 | 88 | (92) |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,183 | 633 | 633 | 628 | 706 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 | 223 | 140 | 154 |
Cash, restricted cash and cash equivalents, beginning of period | 1,684 | 856 | 856 | 768 | 860 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 986 | 682 | 1,183 | 633 | 628 |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 291 | 501 | 223 | 140 |
Cash, restricted cash and cash equivalents, end of period | 986 | 973 | 1,684 | 856 | 768 |
Supplemental Disclosures: | |||||
Interest | 113 | 86 | 478 | 485 | 514 |
Income taxes, net of refunds | 6 | 39 | 677 | 475 | $ 429 |
Conversion of Park's property and equipment to timeshare inventory of HGV (investing activities) | 0 | (22) | |||
Non-cash spin-offs of Park and HGV (financing activities) | $ 29 | 0 | |||
Scenario, Previously Reported [Member] | |||||
Financing Activities: | |||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 634 | 634 | |||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 222 | 222 | |||
Cash, restricted cash and cash equivalents, beginning of period | $ 0 | $ 0 | |||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 634 | ||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 222 | ||||
Cash, restricted cash and cash equivalents, end of period | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [member] | Additional Paid-in Capital [member] | Accumulated Deficit [member] | Accumulated Other Comprehensive Loss [member] | Noncontrolling Interest [member] | ||||
Balance (shares) at Dec. 31, 2013 | [1] | 328,000,000 | ||||||||
Balance at Dec. 31, 2013 | $ 4,276 | $ 3 | [1] | $ 9,955 | [1] | $ (5,331) | $ (264) | $ (87) | ||
Share-based compensation | 101 | 101 | ||||||||
Net income | 682 | 673 | 9 | |||||||
Other comprehensive income (loss), net of tax benefit (expense): | ||||||||||
Currency translation adjustment | (299) | (304) | 5 | |||||||
Pension liability adjustment | (45) | (45) | ||||||||
Cash flow hedge adjustment | (9) | (9) | ||||||||
Other comprehensive income (loss) | (353) | (358) | 5 | |||||||
Capital contribution | 13 | 13 | ||||||||
Equity contributions to consolidated variable interest entities | 0 | (34) | (6) | 40 | ||||||
Distributions | (5) | (5) | ||||||||
Balance (shares) at Dec. 31, 2014 | [1] | 328,000,000 | ||||||||
Balance at Dec. 31, 2014 | 4,714 | $ 3 | [1] | 10,035 | [1] | (4,658) | (628) | (38) | ||
Share-based compensation, shares | [1] | 1,000,000 | ||||||||
Share-based compensation | 115 | 115 | ||||||||
Net income | 1,416 | 1,404 | 12 | |||||||
Other comprehensive income (loss), net of tax benefit (expense): | ||||||||||
Currency translation adjustment | (134) | (134) | ||||||||
Pension liability adjustment | (15) | (15) | ||||||||
Cash flow hedge adjustment | (7) | (7) | ||||||||
Other comprehensive income (loss) | (156) | (156) | ||||||||
Dividends | (138) | (138) | ||||||||
Excess tax benefits on equity awards | 8 | 8 | ||||||||
Distributions | $ (8) | (8) | ||||||||
Balance (shares) at Dec. 31, 2015 | [1] | 329,152,787 | 329,000,000 | [2] | ||||||
Balance at Dec. 31, 2015 | $ 5,951 | $ 3 | [1],[2] | 10,158 | [1],[2] | (3,392) | (784) | (34) | ||
Share-based compensation, shares | 0 | |||||||||
Net income | 310 | |||||||||
Other comprehensive income (loss), net of tax benefit (expense): | ||||||||||
Currency translation adjustment | 13 | |||||||||
Pension liability adjustment | 1 | |||||||||
Cash flow hedge adjustment | (6) | |||||||||
Other comprehensive income (loss) | 8 | |||||||||
Dividends | (69) | (69) | ||||||||
Cumulative effect of the adoption of ASU 2015-02 | 5 | 5 | ||||||||
Distributions | (2) | (2) | ||||||||
Balance (shares) at Mar. 31, 2016 | [2] | 329,000,000 | ||||||||
Balance at Mar. 31, 2016 | $ 6,205 | $ 3 | [2] | 10,160 | [2] | (3,152) | (774) | (32) | ||
Balance (shares) at Dec. 31, 2015 | [1] | 329,152,787 | 329,000,000 | [2] | ||||||
Balance at Dec. 31, 2015 | $ 5,951 | $ 3 | [1],[2] | 10,158 | [1],[2] | (3,392) | (784) | (34) | ||
Share-based compensation | 62 | 62 | ||||||||
Net income | 364 | 348 | 16 | |||||||
Other comprehensive income (loss), net of tax benefit (expense): | ||||||||||
Currency translation adjustment | (159) | (158) | (1) | |||||||
Pension liability adjustment | (57) | (57) | ||||||||
Cash flow hedge adjustment | (2) | (2) | ||||||||
Other comprehensive income (loss) | (218) | (217) | (1) | |||||||
Dividends | (279) | (279) | ||||||||
Cumulative effect of the adoption of ASU 2015-02 | 5 | 5 | ||||||||
Deconsolidation of a variable interest entity | (4) | (4) | ||||||||
Distributions | $ (32) | (32) | ||||||||
Balance (shares) at Dec. 31, 2016 | [1] | 329,341,992 | [3] | 329,000,000 | [2] | |||||
Balance at Dec. 31, 2016 | $ 5,849 | $ 3 | [1],[2] | 10,220 | [1] | (3,323) | (1,001) | (50) | ||
Share-based compensation, shares | 2,000,000 | |||||||||
Net income | 75 | |||||||||
Other comprehensive income (loss), net of tax benefit (expense): | ||||||||||
Currency translation adjustment | 20 | |||||||||
Pension liability adjustment | 1 | |||||||||
Cash flow hedge adjustment | (2) | |||||||||
Other comprehensive income (loss) | 19 | |||||||||
Dividends | (50) | (50) | ||||||||
Cumulative effect of the adoption of ASU 2015-02 | 0 | 1 | (1) | |||||||
Distributions | $ (1) | (1) | ||||||||
Balance (shares) at Mar. 31, 2017 | 329,628,890 | [3] | 330,000,000 | [2] | ||||||
Balance at Mar. 31, 2017 | $ 1,596 | $ 3 | [2] | $ 10,214 | $ (7,631) | $ (918) | $ (2) | |||
[1] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. | |||||||||
[2] | Adjusted to reflect the Reverse Stock Split. See Note 1: "Organization and Basis of Presentation" for additional information. | |||||||||
[3] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Operations (Parenthetical) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Reverse stock split | 1-for-3 | 1-for-3 |
Organization
Organization | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization | Note 1: Organization and Basis of Presentation Organization Hilton Worldwide Holdings Inc. (the “Parent,” or together with its subsidiaries, “Hilton,” “we,” “us,” “our” or the “Company”), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts, including timeshare properties. As of March 31, 2017, we managed, franchised, owned or leased 4,982 hotel and resort properties, totaling 812,341 rooms in 103 countries and territories. On March 15, 2017, HNA Tourism Group Co., Ltd. and certain of its affiliates (together, “HNA”) acquired 82.5 million shares of Hilton common stock, representing approximately a 25.0 percent equity interest in the common stock of the Parent, from affiliates of The Blackstone Group L.P. (“Blackstone”). As of March 31, 2017, HNA and affiliates of Blackstone beneficially owned approximately 25.0 percent and 15.2 percent of our common stock, respectively. Spin-offs On January 3, 2017, we completed the spin-offs of a portfolio of hotels and resorts, as well as our timeshare business, into two independent, publicly traded companies: Park Hotels & Resorts Inc. (“Park”) and Hilton Grand Vacations Inc. (“HGV”), respectively, (the “spin-offs”). See Note 3: “Discontinued Operations” for additional information. Reverse Stock Split On January 3, 2017, we completed a 1-for-3 reverse stock split of Hilton’s outstanding common stock (the “Reverse Stock Split”). The authorized number of shares of common stock was reduced from 30,000,000,000 to 10,000,000,000, par value remained $0.01 per share and the authorized number of shares of preferred stock remained 3,000,000,000. Stockholders entitled to fractional shares as a result of the Reverse Stock Split received a cash payment in lieu of receiving fractional shares. All share and share-related information presented in these condensed consolidated financial statements have been retroactively adjusted in all periods presented to reflect the decreased number of shares resulting from the Reverse Stock Split. The retroactive adjustments resulted in the reclassification of $7 million from common stock to additional paid-in capital in the condensed consolidated balance sheets for all periods presented. Basis of Presentation The accompanying condensed consolidated financial statements for the three months ended March 31, 2017 and 2016 have been prepared in accordance with United States of America (“U.S.”) generally accepted accounting principles (“GAAP”) and are unaudited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. Although we believe the disclosures made are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Additionally, interim results are not necessarily indicative of full year performance. These condensed consolidated financial statements present the condensed consolidated financial position of Hilton as of March 31, 2017 and December 31, 2016 and the results of operations of Hilton for the three months ended March 31, 2017 and 2016 giving effect to the spin-offs, with the historical financial results of Park and HGV reflected as discontinued operations. Unless otherwise indicated, the information in the notes to the condensed consolidated financial statements refer only to Hilton’s continuing operations and do not include discussion of balances or activity of Park or HGV. Principles of Consolidation In our opinion, the accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions have been eliminated in consolidation. Reclassifications Certain amounts in previously issued financial statements have been reclassified to conform to the presentation following the spin-offs, which includes the reclassification of the financial position and results of operations of Park and HGV as discontinued operations as of December 31, 2016 and as of and for the three months ended March 31, 2016. Additionally, certain line items in the condensed consolidated statements of operations have been revised to reflect the operating structure of Hilton subsequent to the spin-offs. The primary change to the condensed consolidated statements of operations is the disaggregation of management and franchise fee revenues. | Note 1: Organization Organization Hilton Worldwide Holdings Inc. (the “Parent,” or together with its subsidiaries, “Hilton,” “we,” “us,” “our” or the “Company”), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts, including timeshare properties. As of December 31, 2016, we managed, franchised, owned or leased 4,922 hotel and resort properties, totaling 804,097 rooms in 104 countries and territories. As of December 31, 2016, affiliates of The Blackstone Group L.P. (“Blackstone”) beneficially owned approximately 40.3 percent of our common stock. In March 2017, HNA Tourism Group Co., Ltd (“HNA”) and certain of its affiliates completed the acquisition of a 25 percent equity interest in Hilton from affiliates of Blackstone, see Note 26: “Subsequent Events” for additional information. Spin-offs On January 3, 2017, we completed the spin-offs of a portfolio of hotels and resorts, as well as our timeshare business, into two independent, publicly traded companies: Park Hotels & Resorts Inc. (“Park”) and Hilton Grand Vacations Inc. (“HGV”), respectively, (the “spin-offs”). See Note 3: “Discontinued Operations” for additional information. Reverse Stock Split On January 3, 2017, we completed a 1-for-3 reverse stock split of Hilton’s outstanding common stock (the “Reverse Stock Split”). The authorized number of shares of common stock was reduced from 30,000,000,000 to 10,000,000,000, par value remained $0.01 per share and the authorized number of shares of preferred stock remained 3,000,000,000. Stockholders entitled to fractional shares as a result of the Reverse Stock Split received a cash payment in lieu of receiving fractional shares. All share and share-related information presented in these consolidated financial statements have been retroactively adjusted to reflect the decreased number of shares resulting from the Reverse Stock Split. The retroactive adjustments resulted in the reclassification of $7 million from common stock to additional paid-in capital in the consolidated balance sheets and consolidated statements of stockholders’ equity for all periods presented. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2: Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation These consolidated financial statements present the consolidated financial position and results of operations of Hilton as of and for the years ended December 31, 2016, 2015 and 2014 giving effect to the spin-offs, with the combined historical financial results of Park and HGV reflected as discontinued operations. Unless otherwise indicated, the information in the notes to the consolidated financial statements refer only to Hilton’s continuing operations and do not include discussion of balances or activity of Park and HGV. Refer to Hilton’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the Securities and Exchange Commission (“SEC”) on February 15, 2017 for the presentation of Hilton for the same periods without giving effect to the spin-offs. Principles of Consolidation The consolidated financial statements include the accounts of Hilton, our wholly owned subsidiaries and entities in which we have a controlling financial interest, including variable interest entities (“VIEs”) where we are the primary beneficiary. Entities in which we have a controlling financial interest generally comprise majority owned real estate ownership and management enterprises. 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 other ownership interests. If the entity is considered to be a VIE, we determine 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 interests in the entity. We consolidate entities when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. 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 outside ownership interests of our consolidated, non-wholly owned entities and are reported separately. Reclassifications Certain amounts in previously issued financial statements have been reclassified to conform to the presentation following the spin-offs, which includes the reclassification of the combined financial position and results of operations of Park and HGV as discontinued operations for all periods presented. Additionally, certain line items in the consolidated statements of operations have been revised to reflect the operating structure of Hilton subsequent to the spin-offs. The primary change to the consolidated statements of operations is the disaggregation of management and franchise fee revenues. Use of Estimates The preparation of financial statements in conformity with United States of America (“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 the following sources and are generally recognized as services are rendered and when collectibility is reasonably assured. Amounts received in advance of revenue recognition are deferred as liabilities. • Franchise fees • Base and other management fees and incentive management fees • Owned and leased hotel revenues • Other revenues • Other revenues from managed and franchised properties We are required to collect certain taxes and fees from customers on behalf of government 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 revenues. 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. Discontinued Operations In determining whether a group of assets that is disposed (or to be disposed) should be presented as a discontinued operation, we analyze whether the group of assets being disposed represents a component of the Company; that is, whether it had historic operations and cash flows that were clearly distinguished, both operationally and for financial reporting purposes. In addition, we consider whether the disposal represents a strategic shift that has or will have a major effect on our operations and financial results. The results of discontinued operations, as well as any gain or loss on the disposal, if applicable, are aggregated and separately presented in our consolidated statements of operations, net of income taxes. The historical financial position of discontinued operations are aggregated and separately presented in our consolidated balance sheets. 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 security for certain guarantees, ground rent and property tax escrows, insurance and deposits for assets we plan to acquire. Allowance for Doubtful Accounts An allowance for doubtful accounts is provided on accounts receivable when losses are probable based on historical collection activity and current business conditions. Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below the carrying amount. In connection with the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone (the “Merger”), we recorded goodwill representing the excess purchase price over the fair value of the other identified assets and liabilities. We evaluate goodwill for potential impairment by comparing the carrying value of our reporting units to their fair value. Our reporting units are the same as our operating segments as described in Note 20: “Business Segments.” We perform this evaluation annually or at an interim date if indicators of impairment exist. In any year we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If we cannot determine qualitatively that the fair value is in excess of the carrying value, or we decide to bypass the qualitative assessment, we proceed to the quantitative process. This process 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 with its carrying value, including goodwill. The estimated fair value is based on internal projections of expected future cash flows and operating plans, as well as market conditions relative to the operations of our reporting units. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired; otherwise, an impairment loss is recognized within our consolidated statement of operations in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Brands We own, lease, operate and franchise hotels under our portfolio of brands. 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. As of December 31, 2016, our brand portfolio included Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio - A Collection by Hilton, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton and our timeshare brand, Hilton Grand Vacations. At the time of the Merger, our brands were assigned a fair value based on a common valuation technique known as the relief from royalty approach. Canopy by Hilton, Curio - A Collection by Hilton, Tru by Hilton and Home2 Suites by Hilton were launched post-Merger and, as such, they were not assigned fair values. We evaluate our brands for impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of the brand is below the carrying value. If we cannot determine qualitatively that the fair value is in excess of the carrying value, or we decide to bypass the qualitative assessment, we proceed to the quantitative process. If a brand’s estimated current fair value is less than its respective carrying value, the excess of the carrying value over the estimated fair value is recognized in our consolidated statements of operations within impairment loss. Intangible Assets with Finite Useful Lives We have certain finite lived intangible assets that were initially recorded at their fair value at the time of the Merger. These intangible assets consist of management agreements, franchise contracts, leases, certain proprietary technologies and our guest loyalty program, Hilton Honors. Additionally, we capitalize direct and incremental management and franchise contract acquisition costs as finite lived intangible assets. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives. We capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses. Internal and external costs incurred in connection with development of upgrades or enhancements that result in additional functionality are also capitalized. These capitalized costs are amortized on a straight-line basis over the estimated useful life of the software. These capitalized costs are recorded in other intangible assets in our consolidated balance sheets. We review all finite lived intangible assets for impairment when circumstances indicate that their carrying amounts may not be recoverable. If the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the fair value in our consolidated statements of operations. 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. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements (8 to 40 years), furniture and equipment (3 to 8 years) and computer equipment (3 to 5 years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of potential impairment. We perform an analysis to determine the recoverability of the asset’s carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset, the excess of the net book value over the estimated fair value is recorded in our consolidated statements of operations within impairment loss. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset using discount and capitalization rates deemed reasonable for the type of asset, as well as prevailing market conditions, appraisals, recent similar transactions in the market and, if appropriate and available, current estimated net sales proceeds from pending offers. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred, which is generally upon acquisition, construction or development and/or through the normal operation of the asset. Hilton Honors Hilton Honors is a guest loyalty and marketing program provided to hotels and resort properties. Nearly all of our owned, leased, managed and franchised hotels and resort properties participate in the Hilton Honors program. Hilton Honors members earn points based on their spending at our participating properties and through participation in affiliated partner programs. When points are earned by Hilton Honors members, the property or affiliated partner pays Hilton Honors based on an estimated cost per point for the costs of operating the program, which include marketing, promotion, communication, administration and the estimated cost of award redemptions. Hilton Honors member points are accumulated and 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. Hilton Honors records a liability related to revenue received from participating hotels and program partners in an amount equal to the estimated cost per point of the future redemption obligation. We engage outside actuaries to assist in determining the fair value of the future award redemption obligation using statistical formulas that project future point redemptions based on factors that include historical experience, an estimate of “breakage” (points that will never be redeemed), an estimate of the points that will eventually be redeemed and the cost of reimbursing hotels and other third parties in respect to other redemption opportunities available to members. Revenue is recognized by participating hotels and resorts only when points that have been redeemed for hotel stay certificates are used by members or their designees at the respective properties. Additionally, when members of the Hilton Honors loyalty program redeem award certificates at our owned and leased hotels, we recognize room revenue, included in owned and leased hotels revenues in our consolidated statements of operations. 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 (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 in the 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. 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. Under the terms of certain loan agreements, we are required to maintain derivative financial instruments to manage interest rates. We do not enter into derivative financial instruments for trading or speculative purposes. We record all derivatives at fair value. On the date the derivative contract is entered into, we may designate the derivative as one of the following: a hedge of a forecasted transaction or the variability of cash flows to be paid (“cash flow hedge”), a hedge of the fair value of a recognized asset or liability (“fair value hedge”) or a hedge of our foreign currency exposure (“net investment hedge”). Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge or net investment hedge are recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss) until they are reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings. If we do not specifically designate a derivative as one of the above, changes in the fair value of undesignated derivative instruments are reported in current period earnings. Likewise, the ineffective portion of designated derivative instruments is 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 statements of cash flows. Cash flows from undesignated derivative financial instruments are included as an investing activity in our consolidated statements of cash flows. If we determine that we qualify for and will designate a derivative as a hedging instrument, at the designation date we formally document all relationships between hedging activities, including the risk management objective and strategy for undertaking various hedge transactions. This process includes matching all derivatives that are designated as cash flow hedges to specific forecasted transactions, linking all derivatives designated as fair value hedges to specific assets and liabilities in our consolidated balance sheets and determining the foreign currency exposure of the net investment of the foreign operation for a net investment hedge. On a quarterly basis, we assess the effectiveness of our designated hedges in offsetting the variability in the cash flows or fair values of the hedged assets or obligations using the Hypothetical Derivative 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 discontinue hedge accounting prospectively, when the derivative is not 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 The United States dollar (“USD”) is our reporting currency and is the functional currency of our consolidated and unconsolidated entities operating in the U.S. The functional currency for our consolidated and unconsolidated entities operating outside of the U.S. is the currency of the primary economic environment in which the respective entity operates. Assets and liabilities measured in foreign currencies are translated into USD at the prevailing 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 sheets. Income and expense accounts are translated at the average exchange rate for the period. Gains and losses from foreign 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 as gain (loss) on foreign currency transactions in our consolidated statements 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 exchange rate changes are recognized as other comprehensive income (loss) in our consolidated statements of comprehensive income (loss). Insurance We are self-insured for losses up to our third-party insurance deductibles for general liability, auto liability and workers’ compensation at our owned, leased and managed properties that participate in our programs. We purchase insurance coverage for claim amounts that exceed our deductible obligations. In addition, through our captive insurance subsidiary, we participate in a reinsurance arrangement that provides coverage for a certain portion of our deductibles. Our insurance reserves are accrued based on our deductibles related to the estimated ultimate cost 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 outside actuaries and consultants. The ultimate cost of claims for a covered period may differ from our original estimates. Share-based Compensation As part of our 2013 Omnibus Incentive Plan (the “Stock Plan”), which was adopted on December 11, 2013, we award time-vesting restricted stock units (“RSUs”), nonqualified stock options (“options”), performance-vesting restricted stock units and restricted stock (collectively, “performance shares”) and deferred share units (“DSUs”) to eligible employees and directors. • RSUs • Options • Performance shares • DSUs We recognize the cost of services received in these share-based payment transactions with employees as services are received and recognize either a corresponding increase in additional paid-in capital or accounts payable, accrued expenses and other in our consolidated balance sheets, depending on whether the instruments granted satisfy the equity or liability classification criteria. The measurement objective for these equity awards is the estimated fair value at the grant date 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. The requisite service period 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 fair value, and the fair value is remeasured at each reporting date until the date of settlement. 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 at the reporting date) in the fair value of the instrument for each reporting period. Compensation expense for awards with performance conditions is recognized over the requisite service period if it is probable that the performance condition will be satisfied. If such performance conditions are not considered probable until they occur, no compensation expense for these awards is recognized. 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 enacted tax rates in effect for the year in which the respective temporary differences or operating loss or tax credit carryforwards are expected to be recovered or settled. The realization of deferred tax assets and tax loss and tax credit carryforwards 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 use a prescribed recognition threshold for the financial statement recognition and measurement of a tax position taken in a tax return. 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 the position. 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. Recently Issued Accounting Pronouncements Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04 (“ASU 2017-04”), Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2016, the FASB issued ASU No. 2016-09 (“ASU 2016-09”), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In August 2016, the FASB issued ASU No. 2016-15 (“ASU 2016-15”), Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. Statement of Cash Flows (Topic 230) - Restricted Cash In April 2015, the FASB issued ASU No. 2015-03 (“ASU 2015-03”), Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. Interest - Imputation of Interest (Subtopic 835-30) - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In February 2015, the FASB issued ASU No. 2015-02 (“ASU 2015-02”), Consolidation (Topic 810) - Amendments to the Consolidation Analysis Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) Leases (Topic 840) In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) Revenue Recognition (Topic 605) We anticipate that ASU 2014-09 will have a material effect on our consolidated financial statements. However, we expect revenue recognition related to our accounting for ongoing royalty and management fee revenues, direct reimbursable fees from our management and franchise agreements and hotel guest transactions at our owned and leased hotels to remain substantially unchanged. While we are continuing to assess all other potential effects of the standard, we currently believe the provisions of ASU 2014-09 will affect revenue recognition as follows: (i) application and initiation fees for new hotels entering the system will be recognized over the term of the franchise agreement; (ii) certain contract acquisition costs related to our management and franchise agreements will be recognized over the term of the agreements as a reduction to revenue; and (iii) incentive management fees will be recognized to the extent that it is probable that a significant reversal will not occur as a result of future hotel profits or cash flows. We do not expect the changes in revenue recognition for certain contract acquisition costs or incentive management fees to affect the Company’s net income for any full year period. We are currently assessing the effect of the standard on indirect reimbursable fees related to our management and franchise agreements and the accounting for our guest loyalty program. We continue to update our assessment of the effect that ASU 2014-09 and related ASUs will have on our consolidated financial statements, and we will disclose further material effects, if any, when known. |
Discontinued Operations
Discontinued Operations | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Discontinued Operations | Note 3: Discontinued Operations On January 3, 2017, we completed the spin-offs of Park and HGV via a pro rata distribution to each of Hilton’s stockholders of record, as of close of business on December 15, 2016, of 100 percent of the outstanding common stock of each of Park and HGV (the “Distribution”). Each Hilton stockholder received one share of Park common stock for every five shares of Hilton common stock and one share of HGV common stock for every ten shares of Hilton common stock. Following the spin-offs, Hilton did not retain any ownership interest in Park or HGV. Both Park and HGV have their common stock listed on the New York Stock Exchange under the symbols “PK” and “HGV,” respectively. In connection with the spin-offs, on January 2, 2017, Hilton entered into several agreements with Park and HGV that govern Hilton’s relationship with them following the Distribution, including the following: Distribution Agreement The Company entered into a Distribution Agreement with Park and HGV regarding the principal actions taken or to be taken in connection with the spin-offs. The Distribution Agreement provides for certain transfers of assets and assumptions of liabilities by each of Hilton, Park and HGV and the settlement or extinguishment of certain liabilities and other obligations among Hilton, Park and HGV. In addition to the allocation of assets and liabilities detailed in the Distribution Agreement, Hilton, Park and HGV have agreed that losses related to certain contingent liabilities (and related costs and expenses) that generally are not specifically attributable to any of the separated real estate business, the timeshare business or the retained business of Hilton will be apportioned among the parties according to fixed percentages: 65 percent, 26 percent and 9 percent for each of Hilton, Park and HGV, respectively. In addition, costs and expenses of, and indemnification obligations to, third-party professional advisors arising out of the foregoing actions also may be subject to these provisions. Subject to certain limitations and exceptions, Hilton shall generally be vested with the exclusive management and control of all matters pertaining to any such contingent liabilities, including the prosecution of any claim and the conduct of any defense. The Distribution Agreement also provides for cross-indemnities that, except as otherwise provided in the Distribution Agreement, are principally designed to place financial responsibility for the obligations and liabilities of each business with the appropriate company. Employee Matters Agreement The Company entered into an Employee Matters Agreement with Park and HGV that governs the respective rights, responsibilities and obligations of Hilton, Park and HGV after the spin-offs with respect to transferred employees, defined benefit pension plans, defined contribution plans, non-qualified retirement plans, employee health and welfare benefit plans, incentive plans, equity-based awards, collective bargaining agreements and other employment, compensation and benefits-related matters. Generally, other than with respect to certain specified compensation and benefit plans and liabilities, each of Park and HGV assumed or retained sponsorship of, and the liabilities relating to, compensation and benefit plans and employee-related liabilities relating to its current and former employees. Additionally, outstanding Hilton equity-based awards were equitably adjusted or converted into Park or HGV awards, as applicable, in connection with the spin-offs, and Park and HGV employees no longer actively participate in Hilton’s benefit plans or programs (other than specified compensation and benefit plans). Tax Matters Agreement The Company entered into a Tax Matters Agreement with Park and HGV that governs the respective rights, responsibilities and obligations of Hilton, Park and HGV after the spin-offs with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. federal, state, local and foreign income taxes, other tax matters and related tax returns. Park and HGV each continue to have several liability with Hilton to the Internal Revenue Service (“IRS”) for the consolidated U.S. federal income taxes of the Hilton consolidated group relating to the taxable periods in which Park and HGV were part of that group. The Tax Matters Agreement specifies the portion, if any, of this tax liability for which Park and HGV will bear responsibility, and each party has agreed to indemnify the other two against any amounts for which they are not responsible. The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the spin-offs are not tax-free. The Tax Matters Agreement also provides for certain covenants that may restrict Hilton, Park or HGV’s ability to issue equity and pursue strategic or other transactions that otherwise could maximize the value of their businesses for two years after the spin-offs. These restrictions are generally inapplicable in the event that the IRS has granted a favorable ruling to Hilton, Park or HGV or in the event that Hilton, Park or HGV has received an opinion from a tax advisor that it can take such actions without adversely affecting the tax-free status of the spin-offs and related transactions. Transition Services Agreement The Company entered into a Transition Services Agreement (the “TSA”) with Park and HGV under which Hilton or one of its affiliates will provide Park and HGV with certain services for a period of two years to help ensure an orderly transition following the Distribution. The services that Hilton agreed to provide under the TSA may include certain finance, information technology, human resources and compensation, facilities, legal and compliance and other services. The entity providing the services is compensated for any such services at agreed amounts as set forth in the TSA. HGV License Agreement The Company entered into a license agreement with HGV granting HGV the exclusive right, for an initial term of 100 years, to use certain Hilton marks and intellectual property in its timeshare business, subject to the terms and conditions of the agreement. HGV will pay a royalty fee of five percent of gross revenues, as defined, to Hilton quarterly in arrears, as well as specified additional fees. HGV also will pay Hilton an annual transition fee of $5 million for each of the first five years of the term and certain other fees and reimbursements. Additionally, during the term of the license agreement, HGV will participate in Hilton’s guest loyalty program, Hilton Honors. Tax Stockholders Agreement The Company entered into a stockholders agreement with HGV and certain entities affiliated with Blackstone intended to preserve the tax-free status of the Distribution. The Tax Stockholders Agreement provides for certain covenants that may limit issuances or repurchases of Hilton or HGV stock in excess of specified percentages, dispositions of Hilton or HGV common stock by Blackstone, and transfers of interests in certain Blackstone entities that directly or indirectly own Hilton, Park or HGV common stock. Additionally, the Tax Stockholders Agreement, which has a term of two years, may limit issuances or repurchases of stock by Hilton in excess of specified percentages. Management and Franchise Agreements The Company entered into management and franchise agreements with Park, whereby Park will pay agreed upon fees for various services that Hilton will provide to support the operations of their hotels, as well as royalty fees for the licensing of Hilton’s hotel brands. The terms of the management agreements generally include a base management fee, calculated as three percent of gross hotel revenues or receipts, and an incentive management fee, calculated as six percent of a specified measure of hotel earnings that will be calculated in accordance with the applicable management agreement. Additionally, payroll and related costs, certain other operating costs, marketing expenses and other expenses associated with Hilton’s brands and shared services will be directly reimbursed to Hilton by Park pursuant to the terms of the management and franchise agreements. Financial Information During the three months ended March 31, 2017, we recognized $39 million of management and franchise fees for properties that were transferred to Park upon completion of the spin-offs and $20 million of license fees from HGV. Prior to the spin-offs, the results of Park were reported in our ownership segment and the results of HGV were reported in our timeshare segment. Following the spin-offs, we do not have a timeshare segment, as we no longer have timeshare operations. The following table presents the assets and liabilities of Park and HGV that were included in discontinued operations in our condensed consolidated balance sheet as of December 31, 2016: (in millions) ASSETS Current Assets: Cash and cash equivalents $ 341 Restricted cash and cash equivalents 160 Accounts receivable, net of allowance for doubtful accounts 250 Prepaid expenses 48 Inventories 527 Current portion of financing receivables, net 136 Other 16 Total current assets of discontinued operations (variable interest entities - $92) 1,478 Intangibles and Other Assets: Goodwill 604 Management and franchise contracts, net 56 Other intangible assets, net 60 Property and equipment, net 8,589 Deferred income tax assets 35 Financing receivables, net 895 Investments in affiliates 81 Other 27 Total non-current assets of discontinued operations (variable interest entities - $405) 10,347 TOTAL ASSETS OF DISCONTINUED OPERATIONS $ 11,825 LIABILITIES Current Liabilities: Accounts payable, accrued expenses and other $ 632 Current maturities of long-term debt 65 Current maturities of timeshare debt 73 Income taxes payable 4 Total current liabilities of discontinued operations (variable interest entities - $81) 774 Long-term debt 3,437 Timeshare debt 621 Deferred revenues 22 Deferred income tax liabilities 2,797 Other 17 TOTAL LIABILITIES OF DISCONTINUED OPERATIONS (variable interest entities - $506) $ 7,668 The following table presents the results of operations of Park and HGV that were included in discontinued operations in our condensed consolidated statement of operations for the three months ended March 31, 2016: (in millions) Revenues Franchise fees $ 10 Base and other management fees 7 Owned and leased hotels 648 Timeshare 326 Other revenues 3 Other revenues from managed and franchised properties 30 Total revenues from discontinued operations 1,024 Expenses Owned and leased hotels 449 Timeshare 217 Depreciation and amortization 77 General and administrative 10 Other expenses 2 Other expenses from managed and franchised properties 30 Total expenses from discontinued operations 785 Operating income from discontinued operations 239 Interest expense (49 ) Other non-operating income, net 4 Income from discontinued operations before income taxes 194 Income tax expense (75 ) Income from discontinued operations, net of taxes 119 Income from discontinued operations attributable to noncontrolling interests, net of taxes (2 ) Income from discontinued operations attributable to Hilton stockholders, net of taxes $ 117 The following table presents selected financial information of Park and HGV that was included in our condensed consolidated statement of cash flows for the three months ended March 31, 2016: (in millions) Non-cash items included in net income: Depreciation and amortization $ 77 Investing activities: Capital expenditures for property and equipment $ 68 | Note 3: Discontinued Operations On January 3, 2017, we completed the spin-offs of Park and HGV via a pro rata distribution to each of Hilton’s stockholders of record, as of close of business on December 15, 2016, of 100 percent of the outstanding common stock of each of Park and HGV (the “Distribution”). Each Hilton stockholder received one share of Park common stock for every five shares of Hilton common stock and one share of HGV common stock for every ten shares of Hilton common stock. Following the spin-offs, Hilton did not retain any ownership interest in Park or HGV. Both Park and HGV have their common stock listed on the New York Stock Exchange under the symbols “PK” and “HGV,” respectively. In connection with the spin-offs, on January 2, 2017, Hilton entered into several agreements with Park and HGV that govern Hilton’s relationship with them following the Distribution, including the following: Distribution Agreement The Company entered into a Distribution Agreement with Park and HGV regarding the principal actions taken or to be taken in connection with the spin-offs. The Distribution Agreement provides for certain transfers of assets and assumptions of liabilities by each of Hilton, Park and HGV and the settlement or extinguishment of certain liabilities and other obligations among Hilton, Park and HGV. In addition to the allocation of assets and liabilities detailed in the Distribution Agreement, Hilton, Park and HGV have agreed that losses related to certain contingent liabilities (and related costs and expenses) that generally are not specifically attributable to any of the separated real estate business, the timeshare business or the retained business of Hilton will be apportioned among the parties according to fixed percentages: 65 percent, 26 percent and 9 percent for each of Hilton, Park and HGV, respectively. In addition, costs and expenses of, and indemnification obligations to, third- party professional advisors arising out of the foregoing actions also may be subject to these provisions. Subject to certain limitations and exceptions, Hilton shall generally be vested with the exclusive management and control of all matters pertaining to any such contingent liabilities, including the prosecution of any claim and the conduct of any defense. The Distribution Agreement also provides for cross-indemnities that, except as otherwise provided in the Distribution Agreement, are principally designed to place financial responsibility for the obligations and liabilities of each business with the appropriate company. Employee Matters Agreement The Company entered into an Employee Matters Agreement with Park and HGV that governs the respective rights, responsibilities and obligations of Hilton, Park and HGV after the spin-offs with respect to transferred employees, defined benefit pension plans, defined contribution plans, non-qualified retirement plans, employee health and welfare benefit plans, incentive plans, equity-based awards, collective bargaining agreements and other employment, compensation and benefits-related matters. Generally, other than with respect to certain specified compensation and benefit plans and liabilities, each of Park and HGV assumed or retained sponsorship of, and the liabilities relating to, compensation and benefit plans and employee-related liabilities relating to its current and former employees. Additionally, outstanding Hilton equity-based awards were equitably adjusted or converted into Park or HGV awards, as applicable, in connection with the spin-offs, and Park and HGV employees no longer actively participate in Hilton’s benefit plans or programs (other than specified compensation and benefit plans). Tax Matters Agreement The Company entered into a Tax Matters Agreement with Park and HGV that governs the respective rights, responsibilities and obligations of Hilton, Park and HGV after the spin-offs with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. federal, state, local and foreign income taxes, other tax matters and related tax returns. Park and HGV each continue to have several liability with Hilton to the Internal Revenue Service (“IRS”) for the consolidated U.S. federal income taxes of the Hilton consolidated group relating to the taxable periods in which Park and HGV were part of that group. The Tax Matters Agreement specifies the portion, if any, of this tax liability for which Park and HGV will bear responsibility, and each party has agreed to indemnify the other two against any amounts for which they are not responsible. The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the spin-offs are not tax-free. The Tax Matters Agreement also provides for certain covenants that may restrict Hilton, Park or HGV’s ability to issue equity and pursue strategic or other transactions that otherwise could maximize the value of their businesses for two years after the spin-offs. These restrictions are generally inapplicable in the event that the IRS has granted a favorable ruling to Hilton, Park or HGV or in the event that Hilton, Park or HGV has received an opinion from a tax advisor that it can take such actions without adversely affecting the tax-free status of the spin-offs and related transactions. Transition Services Agreement The Company entered into a Transition Services Agreement (the “TSA”) with Park and HGV under which Hilton or one of its affiliates will provide Park and HGV with certain services for a period of two years to help ensure an orderly transition following the Distribution. The services that Hilton agreed to provide under the TSA may include certain finance, information technology, human resources and compensation, facilities, legal and compliance and other services. The entity providing the services is compensated for any such services at agreed amounts as set forth in the TSA. HGV License Agreement The Company entered into a license agreement with HGV granting HGV the exclusive right, for an initial term of 100 years, to use certain Hilton marks and intellectual property in its timeshare business, subject to the terms and conditions of the agreement. HGV will pay a royalty fee of five percent of gross revenues, as defined, to Hilton quarterly in arrears, as well as specified additional fees. HGV also will pay Hilton an annual transition fee of $5 million for each of the first five years of the term and certain other fees and reimbursements. Additionally, during the term of the license agreement, HGV will participate in Hilton’s guest loyalty program, Hilton Honors. Tax Stockholders Agreement The Company entered into a stockholders agreement with HGV and certain entities affiliated with Blackstone intended to preserve the tax-free status of the Distribution. The Tax Stockholders Agreement provides for certain covenants that may limit issuances or repurchases of Hilton or HGV stock in excess of specified percentages, dispositions of Hilton or HGV common stock by Blackstone, and transfers of interests in certain Blackstone entities that directly or indirectly own Hilton, Park or HGV common stock. Additionally, the Tax Stockholders Agreement, which has a term of two years, may limit issuances or repurchases of stock by Hilton in excess of specified percentages. Management and Franchise Agreements The Company entered into management and franchise agreements with Park, whereby Park will pay agreed upon fees for various services that Hilton will provide to support the operations of their hotels, as well as royalty fees for the licensing of Hilton’s hotel brands. The terms of the management agreements generally include a base management fee, calculated as three percent of gross hotel revenues or receipts, and an incentive management fee, calculated as six percent of a specified measure of hotel earnings that will be calculated in accordance with the applicable management agreement. Additionally, payroll and related costs, certain other operating costs, marketing expenses and other expenses associated with Hilton’s brands and shared services will be directly reimbursed to Hilton by Park pursuant to the terms of the management and franchise agreements. Financial Information Prior to the spin-offs, the results of Park were reported in our ownership segment and the results of HGV were reported in our timeshare segment. Following the spin-offs, we do not have a timeshare segment, as we no longer have timeshare operations. The following table presents the assets and liabilities of Park and HGV that were included in discontinued operations in our consolidated balance sheets: December 31, 2016 2015 (in millions) ASSETS Current Assets: Cash and cash equivalents $ 341 $ 76 Restricted cash and cash equivalents 160 147 Accounts receivable, net of allowance for doubtful accounts 250 212 Prepaid expenses 48 35 Inventories 527 430 Current portion of financing receivables, net 136 128 Other 16 16 Total current assets of discontinued operations (variable interest entities - $92 and $79) 1,478 1,044 Intangibles and Other Assets: Goodwill 604 607 Management and franchise contracts, net 56 60 Other intangible assets, net 60 63 Property and equipment, net 8,589 8,708 Deferred income tax assets 35 19 Financing receivables, net 895 848 Investments in affiliates 81 99 Other 27 20 Total non-current assets of discontinued operations (variable interest entities - $405 and $326) 10,347 10,424 TOTAL ASSETS OF DISCONTINUED OPERATIONS $ 11,825 $ 11,468 LIABILITIES Current Liabilities: Accounts payable, accrued expenses and other $ 632 $ 587 Current maturities of long-term debt 65 109 Current maturities of timeshare debt 73 110 Income taxes payable 4 6 Total current liabilities of discontinued operations (variable interest entities - $81 and $113) 774 812 Long-term debt 3,437 3,948 Timeshare debt 621 392 Deferred revenues 22 32 Deferred income tax liabilities 2,797 2,755 Other 17 17 TOTAL LIABILITIES OF DISCONTINUED OPERATIONS (variable interest entities - $506 and $369) $ 7,668 $ 7,956 The following table presents the results of operations of Park and HGV that were included in discontinued operations in our consolidated statements of operations: Year Ended December 31, 2016 2015 2014 (in millions) Revenues Franchise fees $ 38 $ 35 $ 22 Base and other management fees 30 27 24 Owned and leased hotels 2,674 2,637 2,463 Timeshare 1,390 1,308 1,171 Other revenues 13 13 10 Other revenues from managed and franchised properties 136 119 124 Total revenues from discontinued operations 4,281 4,139 3,814 Expenses Owned and leased hotels 1,805 1,754 1,666 Timeshare 948 897 767 Depreciation and amortization 322 307 265 General and administrative 144 10 5 Other expenses 18 24 17 Other expenses from managed and franchised properties 136 119 124 Total expenses from discontinued operations 3,373 3,111 2,844 Gain on sales of assets, net 1 143 — Operating income from discontinued operations 909 1,171 970 Interest expense (193 ) (198 ) (202 ) Gain on foreign currency transactions 3 — — Other non-operating income (loss), net (20 ) (10 ) 46 Income from discontinued operations before income taxes 699 963 814 Income tax expense (327 ) (428 ) (311 ) Income from discontinued operations, net of taxes 372 535 503 Income from discontinued operations attributable to noncontrolling interests, net of taxes (6 ) (7 ) (4 ) Income from discontinued operations attributable to Hilton stockholders, net of taxes $ 366 $ 528 $ 499 The following table presents selected financial information of Park and HGV that was included in our consolidated statements of cash flows: Year Ended December 31, 2016 2015 2014 (in millions) Non-cash items included in net income: Depreciation and amortization $ 322 $ 307 $ 265 Gain on sales of assets, net 1 143 — Investing activities: Capital expenditures for property and equipment $ 255 $ 243 $ 184 Acquisitions, net of cash acquired — (1,402 ) — Proceeds from asset dispositions — 1,866 31 |
Disposals
Disposals | 12 Months Ended |
Dec. 31, 2016 | |
Disposals [Abstract] | |
Disposals | Note 4: Disposals Hilton Sydney In July 2015, we completed the sale of the Hilton Sydney for a purchase price of 442 million Australian dollars (equivalent to $340 million as of the closing date). As a result of the sale, we recognized a pre-tax gain of $163 million included in gain on sales of assets, net in our consolidated statement of operations for the year ended December 31, 2015. The pre-tax gain was net of transaction costs, a goodwill reduction of $36 million and a reclassification of a currency translation adjustment of $25 million from accumulated other comprehensive loss into earnings concurrent with the disposition. The goodwill reduction was due to our consideration of the Hilton Sydney property as a business within our ownership segment; therefore, we reduced the carrying amount of our goodwill by the amount representing the fair value of the business disposed relative to the fair value of the portion of our ownership reporting unit goodwill that was retained. Sale of Other Property and Equipment During the year ended December 31, 2014, we completed the sale of two hotels for approximately $9 million. As a result of these sales, we recognized a pre-tax gain of $8 million, including the reclassification of a currency translation adjustment of $3 million from accumulated other comprehensive loss, concurrent with the disposition. The gain was included in other non-operating income, net in our consolidated statement of operations for the year ended December 31, 2014. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Consolidated Variable Interest Entities | Note 5: Consolidated Variable Interest Entities As of December 31, 2016, we consolidated three VIEs: two entities that lease hotel properties and one management company. As of December 31, 2015, prior to the adoption of ASU 2015-02 and the resulting consolidation of two previously unconsolidated equity investments, we consolidated the two VIEs that lease hotel properties. In December 2016, one of the VIEs that we consolidated as a result of the adoption of ASU 2015-02 sold the hotel asset that it owned. As a result of the sale, we deconsolidated the VIE, as we no longer had the power to direct the activities that most significantly affected its performance. Our retained interest in the entity was accounted for as an equity investment and was included in other non-current assets in our consolidated balance sheet as of December 31, 2016. We are the primary beneficiaries of these consolidated VIEs as we have the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our VIEs are only available to settle the obligations of the respective entities. Our consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following: December 31, 2016 2015 (in millions) Cash and cash equivalents $ 57 $ 44 Accounts receivable, net 14 15 Property and equipment, net 52 44 Deferred income tax assets 58 62 Other non-current assets 53 49 Accounts payable, accrued expenses and other 33 33 Long-term debt 212 208 During the years ended December 31, 2016, 2015 and 2014, we did not provide any financial or other support to any VIEs that we were not previously contractually required to provide, nor do we intend to provide such support in the future. In June 2015, one of our consolidated VIEs modified the terms of its capital lease, resulting in a reduction in long-term debt of $24 million. Since the capital lease asset had previously been fully impaired, this amount was recognized as a gain in other non-operating income, net in our consolidated statement of operations during the year ended December 31, 2015. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill and Intangible Assets | Note 5: Goodwill and Intangible Assets Goodwill Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management (2) Total (in millions) Balance as of December 31, 2016 $ 184 $ 5,034 $ 5,218 Spin-offs of Park and HGV (91 ) — (91 ) Foreign currency translation 2 6 8 Balance as of March 31, 2017 $ 95 $ 5,040 $ 5,135 (1) Excludes goodwill of $2,706 million and accumulated impairment losses of $2,102 million that were attributable to Park and included in non-current assets of discontinued operations in the condensed consolidated balance sheet as of December 31, 2016. Total goodwill balances for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: Gross Carrying Accumulated Net Carrying (in millions) Balance as of December 31, 2016 $ 856 $ (672 ) $ 184 Spin-offs of Park and HGV (423 ) 332 (91 ) Foreign currency translation 2 — 2 Balance as of March 31, 2017 $ 435 $ (340 ) $ 95 (2) There were no accumulated impairment losses for the management and franchise reporting unit as of March 31, 2017 and December 31, 2016. Intangible Assets Intangible assets were as follows: March 31, 2017 Gross Accumulated Net Carrying (in millions) Amortizing Intangible Assets: Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,225 $ (1,578 ) $ 647 Contract acquisition costs and other 354 (71 ) 283 $ 2,579 $ (1,649 ) $ 930 Other intangible assets: Leases (1) $ 279 $ (132 ) $ 147 Capitalized software 519 (380 ) 139 Hilton Honors (1) 336 (198 ) 138 Other 38 (31 ) 7 $ 1,172 $ (741 ) $ 431 Non-amortizing Intangible Assets: Brands (1) $ 4,856 $ — $ 4,856 (1) Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone (the “Merger”). December 31, 2016 Gross Accumulated Net Carrying (in millions) Amortizing Intangible Assets: Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,221 $ (1,534 ) $ 687 Contract acquisition costs and other 343 (67 ) 276 $ 2,564 $ (1,601 ) $ 963 Other intangible assets: Leases (1) $ 276 $ (126 ) $ 150 Capitalized software 510 (362 ) 148 Hilton Honors (1) 335 (192 ) 143 Other 37 (31 ) 6 $ 1,158 $ (711 ) $ 447 Non-amortizing Intangible Assets: Brands (1) $ 4,848 $ — $ 4,848 (1) Represents intangible assets that were initially recorded at their fair value as part of the Merger. We recorded amortization expense of $74 million and $78 million for the three months ended March 31, 2017 and 2016, respectively, including $17 million and $22 million, respectively, of amortization expense on capitalized software. Changes to our brands intangible asset during the three months ended March 31, 2017 were due to foreign currency translations. We estimate our future amortization expense for our amortizing intangible assets as of March 31, 2017 to be as follows: Year (in millions) 2017(remaining) $ 211 2018 267 2019 248 2020 201 2021 71 Thereafter 363 $ 1,361 N | Note 6: Goodwill and Intangible Assets Goodwill Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management (2) Total (in millions) Balance as of December 31, 2014 $ 231 $ 5,129 $ 5,360 Disposition of a business (3) (36 ) — (36 ) Foreign currency translation (2 ) (42 ) (44 ) Balance as of December 31, 2015 193 5,087 5,280 Foreign currency translation (9 ) (53 ) (62 ) Balance as of December 31, 2016 $ 184 $ 5,034 $ 5,218 (1) Total goodwill balances for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: Gross Accumulated Net (in millions) Balance as of December 31, 2014 $ 1,027 $ (796 ) $ 231 Disposition of a business (160 ) 124 (36 ) Foreign currency translation (2 ) — (2 ) Balance as of December 31, 2015 865 (672 ) 193 Foreign currency translation (9 ) — (9 ) Balance as of December 31, 2016 $ 856 $ (672 ) $ 184 (2) There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2016, 2015 and 2014. (3) Relates to the sale of the Hilton Sydney, see Note 4: “Disposals” for additional information. Intangible Assets Intangible assets were as follows: December 31, 2016 Gross Accumulated Net (in millions) Amortizing Intangible Assets: Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,221 $ (1,534 ) $ 687 Contract acquisition costs and other 343 (67 ) 276 $ 2,564 $ (1,601 ) $ 963 Other intangible assets: Leases (1) $ 276 $ (126 ) $ 150 Capitalized software 510 (362 ) 148 Hilton Honors (1) 335 (192 ) 143 Other 37 (31 ) 6 $ 1,158 $ (711 ) $ 447 Non-amortizing Intangible Assets: Brands (1) $ 4,848 $ — $ 4,848 (1) Represents intangible assets that were initially recorded at their fair value at the time of the Merger. December 31, 2015 Gross Accumulated Net (in millions) Amortizing Intangible Assets: Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,249 $ (1,381 ) $ 868 Contract acquisition costs and other 279 (58 ) 221 $ 2,528 $ (1,439 ) $ 1,089 Other intangible assets: Leases (1) $ 315 $ (127 ) $ 188 Capitalized software 436 (274 ) 162 Hilton Honors (1) 341 (175 ) 166 Other 34 (27 ) 7 $ 1,126 $ (603 ) $ 523 Non-amortizing Intangible Assets: Brands (1) $ 4,919 $ — $ 4,919 (1) Represents intangible assets that were initially recorded at their fair value at the time of the Merger. We recorded amortization expense of $312 million, $325 million and $302 million for the years ended December 31, 2016, 2015 and 2014, respectively, including $87 million, $87 million and $74 million, respectively, of amortization expense on capitalized software. Changes to our brands intangible asset between December 31, 2015 and December 31, 2016 were due to foreign currency translations. We estimate our future amortization expense for our amortizing intangible assets to be as follows: Year (in millions) 2017 $ 285 2018 267 2019 248 2020 199 2021 73 Thereafter 338 $ 1,410 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 7: Property and Equipment Property and equipment were as follows: December 31, 2016 2015 (in millions) Land $ 12 $ 66 Buildings and leasehold improvements 384 379 Furniture and equipment 357 337 Construction-in-progress 14 13 767 795 Accumulated depreciation (426 ) (384 ) $ 341 $ 411 Depreciation expense on property and equipment, including assets recorded for capital leases, was $52 million, $60 million and $61 million during the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016 and 2015, property and equipment included approximately $122 million and $120 million, respectively, of capital lease assets primarily consisting of buildings and leasehold improvements, net of $74 million and $63 million, respectively, of accumulated depreciation. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other | Note 8: Accounts Payable, Accrued Expenses and Other Accounts payable, accrued expenses and other were as follows: December 31, 2016 2015 (in millions) Accrued employee compensation and benefits $ 438 $ 351 Accounts payable 314 268 Liability for guest loyalty program, current 543 494 Insurance reserves, current 122 116 Other accrued expenses 404 390 $ 1,821 $ 1,619 Other accrued expenses consist of deposit liabilities related to hotel operations, taxes, rent, interest and other accrued balances. |
Debt
Debt | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Debt | Note 6: Debt Long-term Debt Long-term debt balances, including obligations for capital leases, and associated interest rates as of March 31, 2017, were as follows: March 31, December 31, (in millions) Senior notes due 2021 $ — $ 1,500 Senior notes with a rate of 4.250%, due 2024 1,000 1,000 Senior notes with a rate of 4.625%, due 2025 900 — Senior notes with a rate of 4.875%, due 2027 600 — Senior secured term loan facility due 2020 — 750 Senior secured term loan facility with a rate of 2.98%, due 2023 3,959 3,209 Capital lease obligations with an average rate of 6.34%, due 2021 to 2030 237 227 Other debt with an average rate of 2.65%, due 2018 to 2026 22 20 6,718 6,706 Less: unamortized deferred financing costs and discount (89 ) (90 ) Less: current maturities of long-term debt (1) (41 ) (33 ) $ 6,588 $ 6,583 (1) Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. Senior Notes In March 2017, we issued $900 million aggregate principal amount of 4.625% Senior Notes due 2025 (the “2025 Senior Notes”) and $600 million aggregate principal amount of 4.875% Senior Notes due 2027 (the “2027 Senior Notes”), and incurred $21 million of debt issuance costs. Interest on the 2025 Senior Notes and the 2027 Senior Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning in October 2017. The 2025 Senior Notes and the 2027 Senior Notes are guaranteed on a senior unsecured basis by us and certain of our wholly owned subsidiaries. We used the net proceeds of the 2025 Senior Notes and the 2027 Senior Notes, along with available cash, to redeem in full our $1.5 billion 5.625% Senior Notes due 2021 (the “2021 Senior Notes”), plus accrued and unpaid interest. In connection with the repayment, we paid a redemption premium of $42 million and accelerated the recognition of $18 million of unamortized debt issuance costs, which were included in loss on debt extinguishment in our condensed consolidated statement of operations. Senior Secured Credit Facility Our senior secured credit facility consists of a $1.0 billion senior secured revolving credit facility (the “Revolving Credit Facility”) and a senior secured term loan facility (the “Term Loans”). In March 2017, we amended the Term Loans pursuant to which $750 million of outstanding Term Loans due in 2020 were extended, aligning their maturity with the $3,209 million tranche of Term Loans due 2023. Additionally, the entire balance of the Term Loans was repriced with an interest rate of LIBOR plus 200 basis points. In connection with the refinancing of the Term Loans, we incurred $3 million of debt issuance costs, which were included in other non-operating income, net, in our condensed consolidated statement of operations. As of March 31, 2017, we had $23 million of letters of credit outstanding under our Revolving Credit Facility and a borrowing capacity of $977 million. Debt Maturities The contractual maturities of our long-term debt as of March 31, 2017 were as follows: Year (in millions) 2017(remaining) $ 36 2018 59 2019 55 2020 56 2021 57 Thereafter 6,455 $ 6,718 | Note 9: Debt Long-term Debt Long-term debt balances, including obligations for capital leases, and associated interest rates as of December 31, 2016 were as follows: December 31, 2016 2015 (in millions) Senior notes with a rate of 5.625%, due 2021 $ 1,500 $ 1,500 Senior notes with a rate of 4.250%, due 2024 1,000 — Senior secured term loan facility with a rate of 3.50%, due 2020 750 4,225 Senior secured term loan facility with an average rate of 3.26%, due 2023 3,209 — Capital lease obligations with an average rate of 6.34%, due 2018 to 2028 227 227 Other debt with an average rate of 2.65%, due 2018 to 2026 20 20 6,706 5,972 Less: unamortized deferred financing costs and discount (90 ) (78 ) Less: current maturities of long-term debt (1) (33 ) (7 ) $ 6,583 $ 5,887 (1) Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. Senior Notes In August 2016, we issued $1.0 billion aggregate principal amount of 4.250% Senior Notes due 2024 (the “2024 Senior Notes”) and incurred $20 million of debt issuance costs. Interest on the 2024 Senior Notes is payable semi-annually in arrears on March 1 and September 1 of each year. As of December 31, 2016 the Senior Notes due 2021 (the “2021 Senior Notes”) and the 2024 Senior Notes were guaranteed on a senior unsecured basis by the same subsidiaries as the senior secured credit facility entered into in 2013 (the “Senior Secured Credit Facility”). See below and Note 24: “Condensed Consolidating Guarantor Financial Information” for additional information. The 2021 Senior Notes were redeemed in full in March 2017, see Note 26: “Subsequent Events” for additional information. Senior Secured Credit Facility Our Senior Secured Credit Facility consists of a $1.0 billion senior secured revolving credit facility (the “Revolving Credit Facility”) and a senior secured term loan facility (the “Term Loans”). The obligations of the Senior Secured Credit Facility are unconditionally and irrevocably guaranteed by us and substantially all of our direct or indirect wholly owned domestic subsidiaries. In November 2016, we amended the Revolving Credit Facility to extend the maturity to November 2021 and incurred $5 million of debt issuance costs. As of December 31, 2016, we had $45 million of letters of credit outstanding under the Revolving Credit Facility and a borrowing capacity of $955 million. We are required to pay a commitment fee of 0.125 percent per annum under the Revolving Credit Facility in respect of the unused commitments thereunder. In August 2016, we amended the Term Loans pursuant to which $3,225 million of outstanding Term Loans were converted into a new tranche of Term Loans due October 2023 with an interest rate of LIBOR plus 250 basis points. In connection with the modification of the Term Loans, we recognized an $8 million discount as a reduction to long-term debt in our consolidated balance sheet and $4 million of other debt issuance costs included in other non-operating income, net in our consolidated statement of operations. The Term Loans were amended again in March 2017, see Note 26: “Subsequent Events” for additional information. Debt Maturities The contractual maturities of our long-term debt as of December 31, 2016 were as follows: Year (in millions) 2017 $ 40 2018 50 2019 47 2020 798 2021 1,549 Thereafter 4,222 $ 6,706 |
Deferred Revenues
Deferred Revenues | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenues | ote 10: Deferred Revenues Deferred revenues were as follows: December 31, 2016 2015 (in millions) Hilton Honors points sales $ 29 $ 233 Other 13 18 $ 42 $ 251 In 2013, we sold Hilton Honors points to issuers of Hilton Honors co-branded credit cards and recorded deferred revenue upon receipt of the cash. The deferred revenue balance is reduced, and revenue is recognized, as the issuers use the points for promotions, rewards and incentive programs and certain other activities. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 11: Other Liabilities Other long-term liabilities were as follows: December 31, 2016 2015 (in millions) Program surplus $ 446 $ 420 Pension obligations 215 183 Other long-term tax liabilities 480 293 Deferred employee compensation and benefits 113 170 Insurance reserves 131 87 Other 107 112 $ 1,492 $ 1,265 Program surplus represents obligations to operate our marketing, sales and brand programs on behalf of our hotel owners. Our obligations related to the insurance claims are expected to be satisfied, on average, over the next three years. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Instruments and Hedging Activities | Note 7: Derivative Instruments and Hedging Activities During the three months ended March 31, 2017 and 2016, derivatives were used to hedge the interest rate risk associated with variable-rate debt, as well as foreign exchange risk associated with certain foreign currency denominated cash balances. Cash Flow Hedges During the three months ended March 31, 2017, we entered into two interest rate swap agreements with notional amounts of $1.6 billion and $750 million, which swap one-month LIBOR on the Term Loans to fixed rates of 1.98 percent and 2.02 percent, respectively, and expire in March 2022. We elected to designate these interest rate swaps as cash flow hedges for accounting purposes. Non-designated Hedges During the year ended December 31, 2016, we dedesignated four interest rate swaps (the “2013 Interest Rate Swaps”) that were previously designated as cash flow hedges as they no longer met the criteria for hedge accounting. These interest rate swaps, which had an aggregate notional amount of $1.45 billion and swapped three-month LIBOR on the Term Loans to a fixed rate of 1.87 percent, were settled during the three months ended March 31, 2017. As of March 31, 2017, we held 63 short-term foreign exchange forward contracts with an aggregate notional amount of $255 million to offset exposure to fluctuations in our foreign currency denominated cash balances. We elected not to designate these foreign exchange forward contracts as hedging instruments. Fair Value of Derivative Instruments The fair values of our derivative instruments in our condensed consolidated balance sheets were as follows: March 31, 2017 December 31, 2016 Balance Sheet Classification (in millions) Cash Flow Hedges: Interest rate swaps Other liabilities $ 7 N/A Non-designated Hedges: Interest rate swaps Other liabilities — $ 12 Forward contracts Other current assets 1 3 Forward contracts Accounts payable, accrued expenses and other 1 4 Earnings Effect of Derivative Instruments The gains and losses recognized in our condensed consolidated statements of operations and condensed consolidated statements of comprehensive income before any effect for income taxes were as follows: Three Months Ended March 31, Classification of Gain (Loss) Recognized 2017 2016 (in millions) Cash Flow Hedges: Interest rate swaps (1) Other comprehensive income $ (7 ) $ (10 ) Non-designated Hedges: Interest rate swaps Other non-operating 2 N/A Interest rate swaps (2) Interest expense 3 N/A Forward contracts Loss on foreign currency transactions 1 1 (1) There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three months ended March 31, 2017 and 2016. (2) This amount is related to the dedesignation of the 2013 Interest Rate Swaps as cash flow hedges and was reclassified from accumulated other comprehensive loss as the underlying transactions occurred. | Note 12: Derivative Instruments and Hedging Activities During the years ended December 31, 2016, 2015 and 2014, derivatives were used to hedge the interest rate risk associated with variable-rate debt, as well as foreign exchange risk associated with certain foreign currency denominated cash balances. During the year ended December 31, 2016, we dedesignated four interest rate swaps that were previously designated as cash flow hedges as they no longer met the criteria for hedge accounting. These interest rate swaps, which swapped three-month LIBOR on the Term Loans to a fixed rate of 1.87 percent, expire in October 2018 and, as of December 31, 2016, had an aggregate notional amount of $1.45 billion. As of December 31, 2016, we held 68 short-term foreign exchange forward contracts with an aggregate notional amount of $326 million to offset exposure to fluctuations in our foreign currency denominated cash balances. We elected not to designate these foreign exchange forward contracts as hedging instruments. Fair Value of Derivative Instruments The fair values of our derivative instruments in our consolidated balance sheets were as follows: December 31, Balance Sheet Classification 2016 2015 (in millions) Cash Flow Hedges: Interest rate swaps Other liabilities N/A $ 15 Non-designated Hedges: Interest rate swaps Other liabilities $ 12 N/A Forward contracts Other current assets 3 1 Forward contracts Accounts payable, accrued expenses and other 4 1 Earnings Effect of Derivative Instruments The gains and losses recognized in our consolidated statements of operations and consolidated statements of comprehensive income before any effect for income taxes were as follows: Classification of Gain (Loss) Recognized Year Ended December 31, 2016 2015 2014 (in millions) Cash Flow Hedges: Interest rate swaps (1) Other comprehensive loss $ (7 ) $ (11 ) $ (14 ) Non-designated Hedges: Interest rate swaps Other non-operating income, net 4 N/A N/A Interest rate swaps (2) Interest expense 4 N/A N/A Forward contracts Gain (loss) on foreign currency transactions 7 11 1 (1) There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the years ended December 31, 2016, 2015 and 2014. (2) The amount recognized during the year ended December 31, 2016 is related to the dedesignation of these instruments as cash flow hedges and was reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | Note 8: Fair Value Measurements We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair value of certain financial instruments and the hierarchy level we used to estimate fair values are shown below: March 31, 2017 Hierarchy Level Carrying Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 580 $ — $ 580 $ — Restricted cash equivalents 12 — 12 — Liabilities: Long-term debt (1) 6,370 2,512 — 3,996 Interest rate swaps 7 — 7 — December 31, 2016 Hierarchy Level Carrying Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 782 $ — $ 782 $ — Restricted cash equivalents 11 — 11 — Liabilities: Long-term debt (1) 6,369 2,516 — 4,006 Interest rate swaps 12 — 12 — (1) Carrying value includes unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. The fair values of financial instruments not included in this table are estimated to be equal to their carrying values as of March 31, 2017 and December 31, 2016. Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. Cash equivalents and restricted cash equivalents primarily consisted of short-term interest-bearing money market funds with maturities of less than 90 days and time deposits. The estimated fair values were based on available market pricing information of similar financial instruments. The estimated fair values of our Level 1 long-term debt were based on prices in active debt markets. The estimated fair values of our Level 3 long-term debt were based on indicative quotes received for similar issuances. We measure our interest rate swaps at fair value, which were estimated using an income approach. The primary inputs into our fair value estimate include interest rates and yield curves based on observable market inputs of similar instruments. | Note 13: Fair Value Measurements We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair value of certain financial instruments and the hierarchy level we used to estimate fair values are shown below: December 31, 2016 Carrying Hierarchy Level Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 782 $ — $ 782 $ — Restricted cash equivalents 11 — 11 — Liabilities: Long-term debt (1) 6,369 2,516 — 4,006 Interest rate swaps 12 — 12 — December 31, 2015 Carrying Hierarchy Level Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 287 $ — $ 287 $ — Restricted cash equivalents 18 — 18 — Liabilities: Long-term debt (1) 5,647 1,560 — 4,222 Interest rate swaps 15 — 15 — (1) The carrying value includes unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. The fair values of financial instruments not included in this table are estimated to be equal to their carrying values as of December 31, 2016 and 2015. Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. Cash equivalents and restricted cash equivalents primarily consisted of short-term interest-bearing money market funds with maturities of less than 90 days, time deposits and commercial paper. The estimated fair values were based on available market pricing information of similar financial instruments. The estimated fair values of our Level 1 long-term debt were based on prices in active debt markets. The estimated fair values of our Level 3 long-term debt were based on indicative quotes received for similar issuances. We measure our interest rate swaps at fair value, which were estimated using an income approach. The primary inputs into our fair value estimate include interest rates and yield curves based on observable market inputs of similar instruments. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases | Note 14: Leases We lease hotel properties, land, equipment and corporate office space under operating and capital leases. As of December 31, 2016 and 2015, we leased 61 hotels and 64 hotels, respectively, under operating leases, and four hotels under capital leases. As of December 31, 2016 and 2015, two of these capital leases were liabilities of VIEs that we consolidated and were non-recourse to us. Our leases expire at various dates from 2017 through 2196, with varying renewal options, and the majority expire before 2026. Our operating leases may require minimum rent payments, contingent rent payments based on a percentage of revenue or income or rent payments equal to the greater of a minimum rent or contingent rent. In addition, we may be required to pay some, or all, of the capital costs for property and equipment in the hotel during the term of the lease. Amortization of assets recorded under capital leases is recorded in depreciation and amortization in our consolidated statements of operations and is recognized over the lease term. The future minimum rent payments under non-cancelable leases, due in each of the next five years and thereafter as of December 31, 2016, were as follows: Operating Leases Capital Leases Non-Recourse Capital Leases Year (in millions) 2017 $ 175 $ 4 $ 14 2018 157 4 23 2019 147 4 23 2020 142 4 24 2021 133 5 24 Thereafter 863 34 174 Total minimum rent payments $ 1,617 55 282 Less: amount representing interest (19 ) (91 ) Present value of net minimum rent payments $ 36 $ 191 Rent expense for all operating leases was as follows: Year Ended December 31, 2016 2015 2014 (in millions) Minimum rentals $ 224 $ 244 $ 247 Contingent rentals 98 104 127 $ 322 $ 348 $ 374 |
Income Taxes
Income Taxes | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | Note 9: Income Taxes At the end of each quarter we estimate the effective income tax rate expected to be applied for the full year. The effective income tax rate is determined by the level and composition of pre-tax income or loss, which is subject to federal, foreign, state and local income taxes. Our total unrecognized tax benefits as of March 31, 2017 were $174 million. We accrued approximately $33 million for the payment of interest and penalties as of March 31, 2017. As a result of the expected resolution of examination issues with federal, state and foreign tax authorities, we believe it is reasonably possible that during the next 12 months the amount of unrecognized tax benefits will decrease up to $8 million. Included in the balance of unrecognized tax benefits as of March 31, 2017 was $173 million associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate. In April 2014, we received 30-day Letters from the IRS and the Revenue Agents Report (“RAR”) for the 2006 and October 2007 tax years. We disagreed with several of the proposed adjustments in the RAR, filed a formal appeals protest with the IRS and did not make any tax payments related to this audit. The issues being protested in appeals relate to assertions by the IRS that: (i) certain foreign currency denominated intercompany loans from our foreign subsidiaries to certain U.S. subsidiaries should be recharacterized as equity for U.S. federal income tax purposes and constitute deemed dividends from such foreign subsidiaries to our U.S. subsidiaries; (ii) in calculating the amount of U.S. taxable income resulting from our Hilton Honors guest loyalty program, we should not reduce gross income by the estimated costs of future redemptions, but rather such costs would be deductible at the time the points are redeemed; and (iii) certain foreign currency denominated loans issued by one of our Luxembourg subsidiaries whose functional currency is U.S. dollar (“USD”), should instead be treated as issued by one of our Belgian subsidiaries whose functional currency is the euro, and thus foreign currency gains and losses with respect to such loans should have been measured in euros, instead of USD. Additionally, in January 2016, we received a 30-day Letter from the IRS and the RAR for the December 2007 through 2010 tax years. The RAR includes the proposed adjustments for tax years December 2007 through 2010, which reflect the carryover effect of the three protested issues from 2006 through October 2007. These proposed adjustments will also be protested in appeals and formal appeals protests have been submitted. In total, the proposed adjustments sought by the IRS would result in additional U.S. federal tax owed of approximately $874 million, excluding interest and penalties and potential state income taxes. The portion of this amount related to our Hilton Honors guest loyalty program would result in a decrease to our future tax liability when the points are redeemed. We disagree with the IRS’s position on each of these assertions and intend to vigorously contest them. However, based on continuing appeals process discussions with the IRS, we believe that it is more likely than not that we will not recognize the full benefit related to certain of the issues being appealed. Accordingly, we have recorded $46 million of unrecognized tax benefits related to these issues. We file income tax returns, including returns for our subsidiaries, with federal, state and foreign jurisdictions. We are under regular and recurring audit by the 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 state, local, federal and foreign tax jurisdictions or from the resolution of various proceedings between the U.S. and foreign tax authorities. We are no longer subject to U.S. federal income tax examination for years through 2004. As of March 31, 2017, we remain subject to federal examinations from 2005-2015, state examinations from 2003-2015 and foreign examinations of our income tax returns for the years 1996 through 2016. State income tax returns are generally subject to examination for a period of three to five years after filing the respective return; however, the state effect of any federal tax return changes remains subject to examination by various states for a period generally of up to one year after formal notification to the states. The statute of limitations for the foreign jurisdictions generally ranges from three to ten years after filing the respective tax return. | Note 15: Income Taxes Our tax provision includes federal, state and foreign income taxes payable. The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2016 2015 2014 (in millions) U.S. income before tax $ 934 $ 262 $ 181 Foreign income (loss) before tax (378 ) 271 152 Income before income taxes $ 556 $ 533 $ 333 The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2016 2015 2014 (in millions) Current: Federal $ 441 $ 164 $ 118 State 143 51 41 Foreign 70 64 86 Total current 654 279 245 Deferred: Federal (116 ) (606 ) (74 ) State 50 (86 ) (17 ) Foreign (24 ) 65 — Total deferred (90 ) (627 ) (91 ) Total provision (benefit) for income taxes $ 564 $ (348 ) $ 154 Reconciliations of our tax provision at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2016 2015 2014 (in millions) Statutory U.S. federal income tax provision $ 194 $ 187 $ 116 State income taxes, net of U.S. federal tax benefit 23 17 7 Foreign income tax expense 119 108 52 U.S. benefit of foreign taxes (71 ) (106 ) (46 ) Foreign losses not subject to U.S. tax — — (7 ) Nontaxable liquidation of subsidiaries — (628 ) — Corporate restructuring 482 — — Change in deferred tax asset valuation allowance (65 ) 14 8 Change in basis difference in foreign subsidiaries 27 11 13 Provision (benefit) for uncertain tax positions (139 ) 18 5 Non-deductible share-based compensation — 23 11 Non-deductible goodwill — 13 — Other, net (6 ) (5 ) (5 ) Provision (benefit) for income taxes $ 564 $ (348 ) $ 154 During the year ending December 31, 2016, we effected two corporate structuring transactions that included (i) the organization of Hilton’s assets and subsidiaries in preparation for the spin-offs, and (ii) a restructuring of Hilton’s international assets and subsidiaries (the “international restructuring”). The international restructuring involved a transfer of certain assets, including intellectual property used in the international business, from U.S. subsidiaries to foreign subsidiaries and became effective in December 2016. The transfer of the intellectual property resulted in the recognition of tax expense representing the estimated U.S. tax expected to be paid in future years on income generated from the intellectual property transferred to foreign subsidiaries. Further, our deferred effective tax rate is determined based upon the composition of applicable federal and state tax rates. Due to the changes in the footprint of the Company and the expected applicable tax rates at which our domestic deferred tax assets and liabilities will reverse in future periods as a result of the described restructuring activities, our estimated deferred effective tax rate has increased for the year ended December 31, 2016. In total these structuring transactions, which became effective in December 2016, resulted in additional income tax expense of $482 million in the period. After the 2016 international restructuring, based on our consideration of all available positive and negative evidence, we determined that it was more likely than not we would be able to realize the benefit of various foreign deferred tax assets. Accordingly, as of December 31, 2016, we released valuation allowances of $26 million against our foreign deferred tax assets. During the year ended December 31, 2015, certain of our U.S. subsidiary corporations were converted to limited liability companies and certain of our subsidiary controlled foreign corporations elected to be disregarded for U.S. federal income tax purposes. These transactions were treated as tax-free liquidations for federal tax purposes. As a result of these liquidation transactions, $512 million of deferred tax liabilities were derecognized. In addition, we recognized $116 million of previously unrecognized deferred tax assets associated with assets and liabilities distributed from the liquidated controlled foreign corporations, resulting in a total deferred tax benefit of $628 million. These previously unrecognized deferred tax assets were a component of our investment in foreign subsidiaries deferred tax balances that were connected to the liquidated controlled foreign corporations. Prior to these liquidations, we did not believe that the benefit of these deferred tax assets would be realized within the foreseeable future; therefore, we did not recognize these deferred tax assets. 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 tax asset (liability) were as follows: December 31, 2016 2015 (in millions) Deferred Tax Assets: Net operating loss carryforwards $ 394 $ 440 Compensation 214 243 Other reserves 15 39 Capital lease obligations 84 90 Insurance reserves 36 50 Program surplus 84 79 Property and equipment 26 172 Investments 12 72 Other 66 84 Total gross deferred tax assets 931 1,269 Less: valuation allowance (507 ) (484 ) Deferred tax assets 424 785 Deferred Tax Liabilities: Brands (1,626 ) (1,867 ) Amortizable intangible assets (305 ) (488 ) Investment in foreign subsidiaries (39 ) (35 ) Deferred income (150 ) (211 ) Deferred tax liabilities (2,120 ) (2,601 ) Net deferred taxes $ (1,696 ) $ (1,816 ) As of December 31, 2016, we had foreign net operating loss carryforwards of $1.5 billion, which resulted in deferred tax assets of $394 million for foreign jurisdictions. Approximately $7 million of our deferred tax assets as of December 31, 2016 related to net operating loss carryforwards that will expire between 2017 and 2036 with less than $1 million of that amount expiring in 2017. Approximately $387 million of our deferred tax assets as of December 31, 2016 resulted from net operating loss carryforwards that are not subject to expiration. We believe that it is more likely than not that the benefit from certain foreign net operating loss carryforwards will not be realized. In recognition of this assessment, we provided a valuation allowance of $385 million as of December 31, 2016 on the deferred tax assets relating to these foreign net operating loss carryforwards. Our total valuation allowance relating to these net operating loss carryforwards and other deferred tax assets increased $23 million during the year ended December 31, 2016. We classify reserves for tax uncertainties within current income taxes payable and other long-term liabilities in our consolidated balance sheets. Reconciliations of the beginning and ending amount of unrecognized tax benefits were as follows: Year Ended 2016 2015 2014 (in millions) Balance at beginning of year $ 315 $ 296 $ 323 Additions for tax positions related to the prior year 77 25 32 Additions for tax positions related to the current year 9 8 10 Reductions for tax positions for prior years (204 ) (4 ) (63 ) Settlements (21 ) (4 ) (1 ) Lapse of statute of limitations (2 ) (2 ) (2 ) Currency translation adjustment — (4 ) (3 ) Balance at end of year $ 174 $ 315 $ 296 The changes to our unrecognized tax benefits during the years ended December 31, 2016 and 2015 were primarily the result of items identified, resolved and settled as part of our ongoing U.S. federal audit. We recognize interest and penalties accrued related to uncertain tax positions in income tax expense. As of December 31, 2016 and 2015, we had accrued approximately $30 million and $26 million, respectively, for the payment of interest and penalties. We accrued approximately $4 million, $5 million and $8 million during the years ended December 31, 2016, 2015 and 2014, respectively. Included in the balance of uncertain tax positions as of December 31, 2016 and 2015 were $176 million and $299 million, respectively, associated with positions that if favorably resolved would provide a benefit to our effective tax rate. As a result of the expected resolution of examination issues with federal, state, and foreign tax authorities, we believe it is reasonably possible that during the next 12 months the amount of unrecognized tax benefits will decrease up to $8 million. We file income tax returns, including returns for our subsidiaries, with federal, state and foreign jurisdictions. We are under regular and recurring audit by the Internal Revenue Service (“IRS”) 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 state, local, federal and foreign tax jurisdictions or from the resolution of various proceedings between the U.S. and foreign tax authorities. We are no longer subject to U.S. federal income tax examination for years through 2004. As of December 31, 2016, we remain subject to federal examinations from 2005-2015, state examinations from 2003-2015 In April 2014, we received 30-day Letters from the IRS and the Revenue Agents Report (“RAR”) for the 2006 and October 2007 tax years. We disagreed with several of the proposed adjustments in the RAR, filed a formal appeals protest with the IRS and did not make any tax payments related to this audit. The issues being protested in appeals relate to assertions by the IRS that: (1) certain foreign currency-denominated intercompany loans from our foreign subsidiaries to certain U.S. subsidiaries should be recharacterized as equity for U.S. federal income tax purposes and constitute deemed dividends from such foreign subsidiaries to our U.S. subsidiaries; (2) in calculating the amount of U.S. taxable income resulting from our Hilton Honors guest loyalty program, we should not reduce gross income by the estimated costs of future redemptions, but rather such costs would be deductible at the time the points are redeemed; and (3) certain foreign-currency denominated loans issued by one of our Luxembourg subsidiaries whose functional currency is USD, should instead be treated as issued by one of our Belgian subsidiaries whose functional currency is the euro, and thus foreign currency gains and losses with respect to such loans should have been measured in euros, instead of USD. Additionally, in January 2016, we received a 30-day Letter from the IRS and the RAR for the December 2007 through 2010 tax years. The RAR includes the proposed adjustments for tax years December 2007 through 2010, which reflect the carryover effect of the three protested issues from 2006 through October 2007. These proposed adjustments will also be protested in appeals, and formal appeals protests have been submitted. In total, the proposed adjustments sought by the IRS would result in additional U.S. federal tax owed of approximately $874 million, excluding interest and penalties and potential state income taxes. The portion of this amount related to our Hilton Honors guest loyalty program would result in a decrease to our future tax liability when the points are redeemed. We disagree with the IRS’s position on each of these assertions and intend to vigorously contest them. However, as a result of recent developments related to the appeals process discussion that have taken place in 2016, we have determined based on on-going discussions with the IRS, it is more likely than not that we will not recognize the full benefit related to certain of the issues being appealed. Accordingly, as of December 31, 2016, we have recorded a $44 million unrecognized tax benefit. State income tax returns are generally subject to examination for a period of three to five years after filing the respective return; however, the state effect of any federal tax return changes remains subject to examination by various states for a period generally of up to one year after formal notification to the states. The statute of limitations for the foreign jurisdictions generally ranges from three to ten years after filing the respective tax return. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 16: Employee Benefit Plans We sponsor multiple domestic and international employee benefit plans. Benefits are based upon years of service and compensation. We have a noncontributory retirement plan in the U.S. (the “Domestic Plan”), which 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. As employees have not accrued additional benefits since that time, we do not utilize salary or pension inflation assumptions in calculating our benefit obligation for the Domestic Plan. The annual measurement date for the Domestic Plan is December 31. We also have multiple employee benefit plans that cover many of our international employees. These include (i) a plan that covers workers in the United Kingdom (the “U.K. Plan”), which was frozen to further service accruals on November 30, 2013; and (ii) a number of smaller plans that cover workers in various countries around the world (the “International Plans”). The annual measurement date for all of these 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 sheets and make corresponding adjustments for changes in the value through accumulated other comprehensive loss, net of tax. The following table presents the projected benefit obligation, the fair value of plan assets, the funded status and the accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2016 2015 2016 2015 2016 2015 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 394 $ 425 $ 391 $ 415 $ 82 $ 115 Service cost — — 2 1 2 2 Interest cost 13 16 12 15 2 2 Actuarial loss (gain) 1 (8 ) 87 (5 ) 2 (1 ) Settlements and curtailments (2 ) (14 ) — — (1 ) (4 ) Effect of foreign exchange rates — — (74 ) (19 ) (1 ) (4 ) Benefits paid (25 ) (25 ) (14 ) (16 ) (5 ) (28 ) Benefit obligation at end of year $ 381 $ 394 $ 404 $ 391 $ 81 $ 82 Change in Plan Assets: Fair value of plan assets at beginning of year $ 265 $ 283 $ 368 $ 390 $ 60 $ 85 Actual return on plan assets, net of expenses 11 (11 ) 42 (1 ) 1 — Employer contributions 18 32 5 13 3 8 Effect of foreign exchange rates — — (65 ) (18 ) — (1 ) Benefits paid (25 ) (25 ) (14 ) (16 ) (5 ) (28 ) Settlements (2 ) (14 ) — — (1 ) (4 ) Fair value of plan assets at end of year 267 265 336 368 58 60 Funded status at end of year (underfunded) (114 ) (129 ) (68 ) (23 ) (23 ) (22 ) Accumulated benefit obligation $ 381 $ 394 $ 404 $ 391 $ 81 $ 82 Amounts recognized in the consolidated balance sheets consisted of: Domestic Plan U.K. Plan International Plans 2016 2015 2016 2015 2016 2015 (in millions) Other non-current assets $ 4 $ 2 $ — $ — $ 6 $ 7 Other liabilities (118 ) (131 ) (68 ) (23 ) (29 ) (29 ) Net amount recognized $ (114 ) $ (129 ) $ (68 ) $ (23 ) $ (23 ) $ (22 ) Amounts recognized in accumulated other comprehensive loss consisted of: Domestic Plan U.K. Plan International Plans 2016 2015 2014 2016 2015 2014 2016 2015 2014 (in millions) Net actuarial loss $ — $ 15 $ 42 $ 41 $ 16 $ 33 $ 3 $ 1 $ 10 Prior service credit (3 ) (4 ) (4 ) — — — — — — Amortization of net gain (3 ) (3 ) (7 ) (2 ) (2 ) (1 ) (1 ) (9 ) (1 ) Net amount recognized $ (6 ) $ 8 $ 31 $ 39 $ 14 $ 32 $ 2 $ (8 ) $ 9 The estimated unrecognized net losses and prior service cost that will be amortized into net periodic pension cost over the fiscal year following the indicated year were as follows: Domestic Plan U.K. Plan International Plans 2016 2015 2014 2016 2015 2014 2016 2015 2014 (in millions) Unrecognized net losses $ 2 $ 2 $ 3 $ 4 $ 2 $ 2 $ — $ — $ 1 Unrecognized prior service cost 4 4 4 — — — — — — Amount unrecognized $ 6 $ 6 $ 7 $ 4 $ 2 $ 2 $ — $ — $ 1 The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2016 2015 2014 2016 2015 2014 2016 2015 2014 (in millions) Service cost $ 8 $ 7 $ 7 $ 2 $ 2 $ 1 $ 3 $ 3 $ 2 Interest cost 13 16 17 12 15 17 2 2 4 Expected return on plan assets (19 ) (19 ) (18 ) (22 ) (25 ) (24 ) (3 ) (4 ) (4 ) Amortization of prior service cost 4 4 4 — — — — — — Amortization of net loss 3 3 1 2 2 1 — — 1 Settlement losses — — 5 — — — — 10 1 Net periodic pension cost (credit) $ 9 $ 11 $ 16 $ (6 ) $ (6 ) $ (5 ) $ 2 $ 11 $ 4 The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2016 2015 2016 2015 2016 2015 Discount rate 4.0 % 4.3 % 2.8 % 3.9 % 3.1 % 3.5 % Salary inflation N/A N/A 1.9 1.7 2.1 2.1 Pension inflation N/A N/A 3.1 2.8 1.7 1.6 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2016 2015 2014 2016 2015 2014 2016 2015 2014 Discount rate 4.2 % 3.9 % 4.7 % 3.9 % 3.8 % 4.7 % 3.5 % 3.3 % 4.3 % Expected return on plan assets 7.3 7.5 7.5 6.5 6.5 6.5 5.4 5.1 6.0 Salary inflation N/A N/A N/A 1.7 1.6 1.9 2.1 2.2 2.3 Pension inflation N/A N/A N/A 2.8 2.8 3.0 1.6 1.8 1.9 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 outside 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 debt and equity securities 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. The target asset allocation for the Domestic Plan, as a percentage of total plan assets, as of December 31, 2016 and 2015 was 65 percent and 60 percent, respectively, in funds that invest in equity securities and 35 percent and 40 percent, respectively, in funds that invest in debt securities. The target asset allocation for the U.K. Plan and the International Plans was 65 percent in funds that invest in equity and debt securities and 35 percent in bond funds as of December 31, 2016 and 2015, respectively. The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category. The fair values of Level 2 assets were based on available market pricing information of similar financial instruments. There were no Level 3 assets as of December 31, 2016 and 2015. December 31, 2016 Domestic Plan U.K. Plan International Plans Level 1 Level 2 Level 1 Level 2 Level 1 Level 2 (in millions) Cash and cash equivalents $ — $ — $ — $ — $ 10 $ — Equity funds 25 — — — 3 6 Debt securities 1 62 — — — — Bond funds — — — — — 6 Common collective trusts — 139 — 336 — 33 Other — 40 — — — — Total $ 26 $ 241 $ — $ 336 $ 13 $ 45 December 31, 2015 Domestic Plan U.K. Plan International Plans Level 1 Level 2 Level 1 Level 2 Level 1 Level 2 (in millions) Cash and cash equivalents $ — $ — $ — $ — $ 10 $ — Equity funds 64 — — — 4 7 Debt securities 2 71 — — — — Bond funds — — — — — 7 Common collective trusts — 128 — 368 — 32 Total $ 66 $ 199 $ — $ 368 $ 14 $ 46 We expect to contribute approximately $21 million, $8 million and $4 million to the Domestic Plan, the U.K. Plan and the International Plans, respectively, in 2017. As of December 31, 2016, 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 International Plans Year (in millions) 2017 $ 30 $ 13 $ 9 2018 27 13 5 2019 26 13 5 2020 26 14 5 2021 26 14 5 2022-2026 124 73 24 $ 259 $ 140 $ 53 As of January 1, 2007, the Domestic Plan and plans maintained for certain domestic hotels currently or formerly managed by us were merged into a multiple employer plan. As of December 31, 2016, the multiple employer plan had combined plan assets of $289 million and a projected benefit obligation of $405 million. We also have plans covering qualifying employees and non-officer directors (the “Supplemental Plans”). Benefits for the Supplemental Plans are based upon years of service and compensation. Since December 31, 1996, employees and non-officer directors have not accrued additional benefits under the Supplemental Plans. These plans are self-funded by us and, therefore, have no plan assets isolated to pay benefits due to employees. As of December 31, 2016 and 2015, these plans had benefit obligations of $19 million and $17 million, respectively, which were fully accrued in other liabilities in our consolidated balance sheets. Expense incurred under the Supplemental Plans for the year ended December 31, 2016 was $3 million and for the years ended December 31, 2015 and 2014 was less than $1 million. We have various employee defined contribution investment plans whereby we contribute matching percentages of employee contributions. The aggregate expense under these plans totaled $17 million, $18 million and $19 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-Based Compensation | Note 10: Share-Based Compensation We issue time-vesting restricted stock units and restricted stock (“RSUs”), nonqualified stock options (“options”), performance-vesting restricted stock units and restricted stock (collectively, “performance shares”) and deferred share units (“DSUs”). We recognized share-based compensation expense of $25 million and $16 million during the three months ended March 31, 2017 and 2016, respectively, which included amounts reimbursed by hotel owners. As of March 31, 2017, unrecognized compensation costs for unvested awards was approximately $171 million, which is expected to be recognized over a weighted-average period of 2.4 years on a straight-line basis. As of March 31, 2017, there were 29,922,923 shares of common stock available for future issuance. All share and share-related information have been adjusted to reflect the Reverse Stock Split. See Note 1: “Organization and Basis of Presentation” for additional information. Effect of the Spin-offs on Equity Awards In connection with the spin-offs, the outstanding share-based compensation awards held by employees transferring to Park and HGV were converted to equity awards in Park and HGV stock, respectively. Share-based compensation awards of employees remaining at Hilton were adjusted using a conversion factor in accordance with the anti-dilution provisions of the 2013 Omnibus Incentive Plan with the intent to preserve the intrinsic value of the original awards (the “Conversion Factor”). The adjustments were determined by comparing the fair value of such awards immediately prior to the spin-offs to the fair value of such awards immediately after and resulted in no incremental compensation expense. Equity awards that were adjusted generally remain subject to the same vesting, expiration and other terms and conditions as applied to the awards immediately prior to the spin-offs. RSUs The following table summarizes the activity of our RSUs during the three months ended March 31, 2017: Number of Weighted Outstanding as of December 31, 2016 1,624,541 $ 65.24 Conversion from performance shares upon completion of the spin-offs (1) 671,604 72.42 Effect of the spin-offs 439,113 57.60 Granted 1,313,783 58.02 Vested (876,145 ) 47.19 Forfeited (47,971 ) 47.97 Outstanding as of March 31, 2017 (2) 3,124,925 52.01 (1) Represents all performance shares outstanding as of December 31, 2016. (2) The weighted average grant date fair value was adjusted to reflect the Conversion Factor. The RSUs granted during the three months ended March 31, 2017 generally vest in equal annual installments over two or three years from the date of grant. Options The following table summarizes the activity of our options during the three months ended March 31, 2017: Number of Weighted Outstanding as of December 31, 2016 1,076,031 $ 66.83 Effect of the spin-offs 251,145 57.60 Granted 710,967 58.02 Exercised (10,681 ) 45.35 Forfeited, canceled or expired (2,146 ) 57.99 Outstanding as of March 31, 2017 (1) 2,025,316 50.89 Exercisable as of March 31, 2017 (1) 793,005 48.23 (1) The weighted average exercise price was adjusted to reflect the Conversion Factor. The options granted during 2017 vest 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 of the options granted during the three months ended March 31, 2017 was $13.86, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility (1) 24.00 % Dividend yield (2) 1.03 % Risk-free rate (3) 2.03 % Expected term (in years) (4) 6.0 (1) Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) Estimated based on the expected annualized dividend payment at the date of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. Performance Shares As of December 31, 2016, we had outstanding performance awards based on a measure of the Company’s total shareholder return relative to the total shareholder returns of members of a peer company group (“relative shareholder return”) and based on the Company’s earnings before interest expense, income taxes and depreciation and amortization (“EBITDA”) compound annual growth rate (“CAGR”) (“EBITDA CAGR”). Upon completion of the spin-offs, we converted all 671,604 outstanding performance shares to RSUs based on a 100 percent achievement percentage with the same vesting periods as the original awards, and as of March 31, 2017, there were no outstanding performance shares based on relative shareholder return. During the three months ended March 31, 2017, we issued performance shares with 50 percent of the shares subject to achievement based on the Company’s free cash flow (“FCF”) per share CAGR (“FCF CAGR”) and the other 50 percent of the shares subject to achievement based on the Company’s EBITDA CAGR. The performance shares are settled at the end of the three-year performance period. We determined that the performance condition for these awards is probable of achievement and, as of March 31, 2017, we recognized compensation expense based on the anticipated achievement percentage of 100 percent. The following table summarizes the activity of our performance shares during the three months ended March 31, 2017: EBITDA CAGR FCF CAGR Number of Weighted Number of Weighted Outstanding as of December 31, 2016 335,802 $ 68.09 — N/A Conversion to RSUs upon completion of the spin-offs (335,802 ) 68.09 — N/A Granted 169,843 58.02 169,812 $ 58.02 Outstanding as of March 31, 2017 169,843 58.02 169,812 58.02 | Note 17: Share-Based Compensation We recorded share-based compensation expense of $81 million, $147 million and $69 million during the years ended December 31, 2016, 2015 and 2014, respectively, which includes amounts reimbursed by hotel owners. The total tax benefit recognized related to this compensation expense was $31 million, $31 million and $14 million for the years ended December 31, 2016, 2015 and 2014, respectively. Share-based compensation expense for the years ended December 31, 2015 and 2014 included compensation expense that was recognized when certain remaining awards granted in connection with our initial public offering vested during 2015 and 2014. Additionally, we terminated a cash-based, long-term incentive plan and reversed the associated accruals resulting in a reduction of compensation expense for the year ended December 31, 2014. As of December 31, 2016 and 2015, we accrued $15 million and $7 million, respectively, in accounts payable, accrued expenses and other in our consolidated balance sheets for certain awards settled in cash. As of December 31, 2016, unrecognized compensation costs for unvested awards was approximately $83 million, which is expected to be recognized over a weighted-average period of 1.7 years on a straight-line basis. There were 21,823,633 shares of common stock available for future issuance under the Stock Plan as of December 31, 2016. All share and share-related information have been adjusted to reflect the Reverse Stock Split. See Note 1: “Organization” for further discussion. RSUs The following table provides information about our RSU grants for the last three fiscal years: Year Ended December 31, 2016 2015 2014 Number of shares granted 1,169,238 679,546 1,883,454 Weighted average grant date fair value per share $ 59.73 $ 82.38 $ 64.59 Fair value of shares vested (in millions) (1) $ 40 $ 90 $ — (1) The fair value of shares vested during the year ended December 31, 2014 was less than $1 million. The following table summarizes the activity of our RSUs during the year ended December 31, 2016: Number of Weighted Average Outstanding as of December 31, 2015 1,246,084 $ 73.44 Granted 1,169,238 59.73 Vested (683,262 ) 70.50 Forfeited (107,519 ) 66.90 Outstanding as of December 31, 2016 1,624,541 65.24 Options The following table provides information about our option grants for the last three fiscal years: Year Ended December 31, 2016 2015 2014 Number of options granted 503,150 309,528 334,530 Weighted average exercise price per share $ 58.83 $ 82.38 $ 64.59 Weighted average grant date fair value per share $ 16.41 $ 25.17 $ 22.74 The grant date fair value of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2016 2015 2014 Expected volatility (1) 32.00 % 28.00 % 33.00 % Dividend yield (2) 1.43 % — % — % Risk-free rate (3) 1.36 % 1.67 % 1.85 % Expected term (in years) (4) 6.0 6.0 6.0 (1) Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) Estimated based on the expected annualized dividend payment at the date of grant. For the 2014 and 2015 options, we had no plans to pay dividends during the expected term at the time of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. The following table summarizes the activity of our options during the year ended December 31, 2016: Number of Weighted Average Outstanding as of December 31, 2015 616,832 $ 73.47 Granted 503,150 58.83 Exercised (5,724 ) 64.59 Forfeited, canceled or expired (38,227 ) 69.03 Outstanding as of December 31, 2016 1,076,031 66.83 Exercisable as of December 31, 2016 293,517 70.57 The weighted average remaining contractual term for options outstanding as of December 31, 2016 was 8.2 years. Performance Shares In November 2016, we modified our performance shares whereby we will convert the performance shares granted in 2015 and 2016 to RSUs based on a 100 percent achievement percentage with the same vesting periods as the original awards contingent upon the occurrence of the spin-offs, which was determined to be 100 percent probable. We recognized $0.3 million of incremental expense related to the modification of these grants during the year ended December 31, 2016. We will recognize additional expense of $5.6 million from the modification over the remaining terms of the awards. The following table provides information about our performance share grants for the last three fiscal years: Year Ended December 31, 2016 2015 2014 Relative Shareholder Return: Number of shares granted 300,784 204,523 176,661 Weighted average grant date fair value per share $ 62.43 $ 98.94 $ 70.68 Fair value of shares vested (in millions) $ 16 $ — $ — EBITDA CAGR: Number of shares granted 300,784 204,523 176,661 Weighted average grant date fair value per share $ 58.83 $ 82.38 $ 64.59 Fair value of shares vested (in millions) $ 12 $ — $ — The grant date fair value of each of the performance shares based on relative shareholder return was determined using a Monte Carlo simulation valuation model with the following assumptions: Year Ended December 31, 2016 2015 2014 Expected volatility (1) 31.00 % 24.00 % 30.00 % Dividend yield (2) — % — % — % Risk-free rate (3) 0.92 % 1.04 % 0.70 % Expected term (in years) (4) 2.8 2.8 2.8 (1) Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) As dividends are assumed to be reinvested in shares of common stock and dividends will not be paid to the participants of the performance shares unless the shares vest, we utilized a dividend yield of zero percent. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Midpoint of the 30-calendar day period preceding the end of the performance period. The following table summarizes the activity of our performance shares during the year ended December 31, 2016: Relative Shareholder Return EBITDA CAGR Number of Weighted Average Number of Weighted Average Outstanding as of December 31, 2015 366,361 $ 86.37 366,361 $ 74.49 Granted 300,784 62.43 300,784 58.83 Vested (152,835 ) 70.68 (152,835 ) 64.59 Forfeited or canceled (178,508 ) 77.58 (178,508 ) 68.61 Outstanding as of December 31, 2016 335,802 76.74 335,802 68.09 DSUs During the years ended December 31, 2016 and 2015, we issued to our independent directors 11,393 and 6,179 DSUs, respectively, with grant date fair values of $66.12 and $84.96, respectively. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Earnings (Loss) Per Share | Note 12: Earnings Per Share The following table presents the calculation of basic and diluted earnings per share (“EPS”). All share and per share amounts have been adjusted to reflect the Reverse Stock Split. See Note 1: “Organization and Basis of Presentation” for additional information. Three Months Ended March 31, 2017 2016 (in millions, Basic EPS: Numerator: Net income from continuing operations attributable to Hilton stockholders $ 74 $ 192 Denominator: Weighted average shares outstanding 330 329 Basic EPS $ 0.22 $ 0.58 Diluted EPS: Numerator: Net income from continuing operations attributable to Hilton stockholders $ 74 $ 192 Denominator: Weighted average shares outstanding 331 330 Diluted EPS $ 0.22 $ 0.58 Approximately 1 million share-based compensation awards were excluded from the weighted average shares outstanding used in the computation of diluted EPS for the three months ended March 31, 2017 and 2016 because their effect would have been anti-dilutive under the treasury stock method. | Note 18: Earnings (Loss) Per Share The following table presents the calculation of basic and diluted earnings (loss) per share. All share and per share amounts have been adjusted to reflect the Reverse Stock Split. See Note 1: “Organization” for further additional information. Year Ended December 31, 2016 2015 2014 (in millions, except per share Basic earnings (loss) per share: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ (18 ) $ 876 $ 174 Denominator: Weighted average shares outstanding 329 329 328 Basic earnings (loss) per share $ (0.05 ) $ 2.67 $ 0.53 Diluted earnings (loss) per share: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ (18 ) $ 876 $ 174 Denominator: Weighted average shares outstanding 329 330 329 Diluted earnings (loss) per share $ (0.05 ) $ 2.66 $ 0.53 Approximately 2 million share-based compensation awards were excluded from the weighted average shares outstanding used in the computation of diluted EPS for the year ended December 31, 2016, and less than 1 million awards were excluded for the years ended December 31, 2015 and 2014 because their effect would have been anti-dilutive under the treasury stock method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 19: Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency (1) Pension Cash Flow Total (in millions) Balance as of December 31, 2013 $ (136 ) $ (134 ) $ 6 $ (264 ) Other comprehensive loss before reclassifications (299 ) (49 ) (9 ) (357 ) Amounts reclassified from accumulated other comprehensive loss (5 ) 4 — (1 ) Net current period other comprehensive loss (304 ) (45 ) (9 ) (358 ) Equity contribution to consolidated variable interest entities (6 ) — — (6 ) Balance as of December 31, 2014 (446 ) (179 ) (3 ) (628 ) Other comprehensive loss before reclassifications (150 ) (21 ) (7 ) (178 ) Amounts reclassified from accumulated other comprehensive loss 16 6 — 22 Net current period other comprehensive loss (134 ) (15 ) (7 ) (156 ) Balance as of December 31, 2015 (580 ) (194 ) (10 ) (784 ) Other comprehensive loss before reclassifications (157 ) (63 ) (5 ) (225 ) Amounts reclassified from accumulated other comprehensive loss (1 ) 6 3 8 Net current period other comprehensive loss (158 ) (57 ) (2 ) (217 ) Balance as of December 31, 2016 $ (738 ) $ (251 ) $ (12 ) $ (1,001 ) (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. The following table presents additional information about reclassifications out of accumulated other comprehensive loss (amounts in parentheses indicate a loss in our consolidated statement of operations): Year Ended 2016 2015 2014 (in millions) Currency translation adjustment: Sale and liquidation of foreign assets (1) $ — $ (25 ) $ 3 Gains on net investment hedges (2) 1 — 2 Tax benefit (3)(4) — 9 — Total currency translation adjustment reclassifications for the period, net of tax 1 (16 ) 5 Pension liability adjustment: Amortization of prior service cost (5) (4 ) (4 ) (4 ) Amortization of net loss (5) (5 ) (5 ) (3 ) Tax expense (3) 3 3 3 Total pension liability adjustment reclassifications for the period, net of tax (6 ) (6 ) (4 ) Cash flow hedge adjustment: Dedesignation of interest rate swaps (6) (4 ) — — Tax benefit (3) 1 — — Total cash flow hedge adjustment reclassifications for the period, net of tax (3 ) — — Total reclassifications for the period, net of tax $ (8 ) $ (22 ) $ 1 (1) Reclassified out of accumulated other comprehensive loss to gain on sales of assets, net for the year ended December 31, 2015 and other non-operating income, net for the year ended December 31, 2014 in our consolidated statements of operations. (2) Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. (3) Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (4) The tax benefit was less than $1 million for the years ended December 31, 2016 and 2014. (5) Reclassified out of accumulated other comprehensive loss to general and administrative expenses in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost. See Note 16: “Employee Benefit Plans” for additional information. (6) Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statement of operations. |
Business Segments
Business Segments | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||
Business Segments | Note 13: Business Segments We are a diversified hospitality company with operations organized in two distinct operating segments, following the spin-offs: (i) management and franchise; and (ii) ownership. Each segment is managed separately because of 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 operated or managed by someone other than us. As of March 31, 2017, this segment included 624 managed hotels and 4,236 franchised hotels totaling 4,860 hotels consisting of 781,978 rooms, within this total are the 67 hotels with 35,425 rooms that were previously owned or leased by Hilton or unconsolidated affiliates of Hilton and, upon completion of the spin-offs, were owned or leased by Park or unconsolidated affiliates of Park. This segment also earns fees for managing properties in our ownership segment and, effective upon completion of the spin-offs, a license fee from HGV for the exclusive right to use certain Hilton marks and intellectual property in its timeshare business. As of March 31, 2017, the ownership segment included 74 properties totaling 22,278 rooms, comprising 65 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and six hotels owned or leased by unconsolidated affiliates. Prior to the spin-offs, the performance of our operating segments was evaluated primarily on Adjusted EBITDA. Following the spin-offs, the performance of our operating segments is evaluated primarily on operating income, without allocating corporate and other revenues and expenses or indirect general and administrative expenses, as we have simplified our operating segments and certain adjustments included in Adjusted EBITDA on a segment basis are no longer applicable. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Three Months Ended March 31, 2017 2016 (in millions) Management and franchise (1) $ 436 $ 357 Ownership 300 319 Segment revenues 736 676 Other revenues 37 17 Other revenues from managed and franchised properties 1,395 1,041 Intersegment fees elimination (1) (7 ) (8 ) Total revenues $ 2,161 $ 1,726 (1) Includes management, royalty and intellectual property fees charged to our ownership segment, which were eliminated in our condensed consolidated financial statements. The following table presents operating income for our reportable segments, reconciled to consolidated income from continuing operations before income taxes: Three Months Ended March 31, 2017 2016 (in millions) Management and franchise (1) $ 436 $ 357 Ownership (1) 21 4 Segment operating income 457 361 Other revenues, less other expenses 14 (1 ) Depreciation and amortization (89 ) (92 ) Impairment loss — (15 ) General and administrative (105 ) (83 ) Operating income 277 170 Interest expense (104 ) (90 ) Loss on foreign currency transactions (4 ) (12 ) Loss on debt extinguishment (60 ) — Other non-operating income, net 1 2 Income from continuing operations before income taxes $ 110 $ 70 (1) Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated financial statements. The following table presents total assets for our reportable segments, reconciled to consolidated assets of continuing operations: March 31, December 31, 2017 2016 (in millions) Management and franchise $ 10,806 $ 10,825 Ownership 945 1,032 Corporate and other 2,536 2,529 $ 14,287 $ 14,386 The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated capital expenditures of continuing operations: Three Months Ended 2017 2016 (in millions) Ownership $ 6 $ 13 Corporate and other 3 3 $ 9 $ 16 | Note 20: Business Segments We are a diversified hospitality company with operations organized in two distinct operating segments, following the spin-offs: (i) management and franchise; and (ii) ownership. These segments are managed separately because of their distinct economic characteristics. The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels operated or managed by someone other than us. As of December 31, 2016, this segment included 559 managed hotels and 4,175 franchised hotels totaling 4,734 properties consisting of 738,724 rooms. This segment also earns fees for managing properties in our ownership segment. As of December 31, 2016, the ownership segment included 74 properties totaling 22,291 rooms, comprising 65 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and six hotels owned or leased by unconsolidated affiliates. Effective January 3, 2017, as a result of the completion of the spin-offs, our ownership of 58 hotels, as well as our ownership interests in nine hotels that were owned or leased by unconsolidated affiliates, were transferred to Park and managed or franchised by Hilton. Additionally, our timeshare properties, which were included in our historical timeshare segment, were owned by HGV and franchised by Hilton. As such, the financial position and results of operations for these properties as of December 31, 2016 and 2015 and for the years ended December 31, 2016, 2015 and 2014 were included within discontinued operations in our consolidated financial statements. Prior to the spin-offs, the performance of our operating segments was evaluated primarily on Adjusted EBITDA. Following the spin-offs, the performance of our operating segments is evaluated primarily on operating income, without allocating corporate and other revenues and expenses or indirect general and administrative expenses, as we have simplified our operating segments and certain adjustments included in Adjusted EBITDA on a segment basis are no longer applicable. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2016 2015 2014 (in millions) Management and franchise (1) $ 1,580 $ 1,496 $ 1,302 Ownership 1,452 1,596 1,776 Segment revenues 3,032 3,092 3,078 Other revenues 82 71 80 Other revenues from managed and franchised properties 4,310 4,011 3,567 Intersegment fees elimination (1) (42 ) (41 ) (37 ) Total revenues $ 7,382 $ 7,133 $ 6,688 (1) Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated financial statements. The following table presents operating income for our reportable segments, reconciled to consolidated income from continuing operations before income taxes: Year Ended December 31, 2016 2015 2014 (in millions) Management and franchise (1) $ 1,580 $ 1,496 $ 1,302 Ownership (1) 115 141 153 Segment operating income 1,695 1,637 1,455 Other revenues, less other expenses 31 31 22 Depreciation and amortization (364 ) (385 ) (363 ) Impairment loss (15 ) (9 ) — General and administrative (403 ) (537 ) (411 ) Gain on sales of assets, net 8 163 — Operating income 952 900 703 Interest expense (394 ) (377 ) (416 ) Gain (loss) on foreign currency transactions (16 ) (41 ) 26 Other non-operating income, net 14 51 20 Income from continuing operations before income taxes $ 556 $ 533 $ 333 (1) Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated financial statements. The following table presents total assets for our reportable segments, reconciled to consolidated amounts of continuing operations: December 31, 2016 2015 (in millions) Management and franchise $ 10,825 $ 11,078 Ownership 1,032 1,116 Corporate and other 2,529 1,960 $ 14,386 $ 14,154 The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated capital expenditures of continuing operations: Year Ended December 31, 2016 2015 2014 (in millions) Ownership $ 45 $ 52 $ 76 Corporate and other 17 15 8 $ 62 $ 67 $ 84 Total revenues by country were as follows: Year Ended December 31, 2016 2015 2014 (in millions) U.S. $ 5,315 $ 4,935 $ 4,355 United Kingdom 955 1,017 874 All other 1,112 1,181 1,459 $ 7,382 $ 7,133 $ 6,688 Other than the countries included above, there were no countries that individually represented more than 10 percent of total revenues for the years ended December 31, 2016, 2015 and 2014. Property and equipment, net by country was as follows: December 31, 2016 2015 (in millions) U.S. $ 92 $ 141 Japan 87 76 United Kingdom 79 100 Germany 35 37 All other 48 57 $ 341 $ 411 Other than the countries included above, there were no countries that individually represented more than 10 percent of total property and equipment, net as of December 31, 2016 and 2015. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | Note 14: Commitments and Contingencies As of March 31, 2017, we had an outstanding guarantee of $5 million, with a remaining term of six years, for debt of a third party. We have one letter of credit for $5 million that has been pledged as collateral for the guarantee. Although we believe it is unlikely that material payments will be required under the guarantee or letter of credit, there can be no assurance that this will be the case. We have also provided performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees allow us to terminate the contract, rather than fund shortfalls, if specified performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of March 31, 2017, we had seven contracts containing performance guarantees, with expirations ranging from 2019 to 2030, and possible cash outlays totaling approximately $70 million. Our obligations under these guarantees in future periods are dependent on the operating performance levels of these hotels over the remaining terms of the performance guarantees. We do not have any letters of credit pledged as collateral against these guarantees. As of March 31, 2017 and December 31, 2016, we recorded approximately $12 million and $11 million, respectively, in accounts payable, accrued expenses and other and approximately $15 million and $17 million, respectively, in other liabilities in our condensed consolidated balance sheets for two outstanding performance guarantees that are related to VIEs for which we are not the primary beneficiary. We have entered into an agreement with an affiliate of the owner of a hotel whereby we have agreed to provide a $60 million junior mezzanine loan to finance the construction of a new hotel that we will manage. The junior mezzanine loan is subordinated to a senior mortgage loan and senior mezzanine loan provided by third parties unaffiliated with us and will be funded on a pro rata basis with these loans as the construction costs are incurred. During each of the three months ended March 31, 2017 and 2016, we funded $8 million of this commitment, and we currently expect to fund our remaining commitment of $1 million in 2017. We are involved in litigation arising in the normal course of business, some of which includes claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of March 31, 2017 will not have a material effect on our consolidated results of operations, financial position or cash flows. | Note 21: Commitments and Contingencies As of December 31, 2016, we had an outstanding guarantee of $5 million, with a remaining term of seven years, for debt of a third party and had one letter of credit for $25 million that was pledged as collateral for the guarantee, which was reduced to $5 million subsequent to December 31, 2016. Although we believe it is unlikely that material payments will be required under the guarantee or letter of credit, there can be no assurance that this will be the case. We have also provided performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees allow us to terminate the contract, rather than fund shortfalls, if specified performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of December 31, 2016, we had seven contracts containing performance guarantees, with expirations ranging from 2019 to 2030, and possible cash outlays totaling approximately $69 million. Our obligations under these guarantees in future periods are dependent on the operating performance levels of these hotels over the remaining terms of the performance guarantees. We do not have any letters of credit pledged as collateral against these guarantees. As of December 31, 2016 and 2015, we recorded approximately $11 million and $8 million, respectively, in accounts payable, accrued expenses and other and approximately $17 million and $25 million, respectively, in other liabilities in our consolidated balance sheets for an outstanding performance guarantee that is related to a VIE for which we are not the primary beneficiary. We have entered into an agreement with an affiliate of the owner of a hotel whereby we have agreed to provide a $60 million junior mezzanine loan to finance the construction of a new hotel that we will manage. The junior mezzanine loan is subordinated to a senior mortgage loan and senior mezzanine loan provided by third parties unaffiliated with us and will be funded on a pro rata basis with these loans as the construction costs are incurred. During the years ended December 31, 2016 and 2015, we funded $34 million and $17 million, respectively, of this commitment, and we expect to fund our remaining commitment of $9 million in 2017. We are involved in litigation arising in the normal course of business, some of which includes claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of December 31, 2016 will not have a material effect on our consolidated results of operations, financial position or cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 22: Related Party Transactions Equity Investments We hold equity investments in entities that own or lease properties that we manage. The following tables summarize amounts included in our consolidated financial statements related to these management agreements: December 31, 2016 2015 (in millions) Balance Sheets Assets: Accounts receivable, net $ 4 $ 8 Management and franchise contracts, net 20 20 Liabilities: Accounts payable, accrued expenses and other 1 2 Year Ended December 31, 2016 2015 2014 (in millions) Statements of Operations Revenues: Franchise fees $ 1 $ 1 $ 1 Base and other management fees 8 6 6 Incentive management fees 4 2 1 Other revenues from managed and franchised properties 21 31 32 Expenses: Other expenses from managed and franchised properties 21 31 32 Statements of Cash Flows Investing Activities: Contract acquisition costs — 4 — The Blackstone Group Blackstone directly and indirectly owns or controls hotels that we manage or franchise and for which we receive fees in connection with the management and franchise agreements. Our maximum exposure to loss related to these hotels is limited to the amounts discussed below; therefore, our involvement with these hotels does not expose us to additional variability or risk of loss. The following tables summarize amounts included in our consolidated financial statements related to these management and franchise agreements: December 31, 2016 2015 (in millions) Balance Sheets Assets: Accounts receivable, net $ 18 $ 21 Management and franchise contracts, net 13 16 Liabilities: Accounts payable, accrued expenses and other 8 9 Year Ended 2016 2015 2014 (in millions) Statements of Operations Revenues: Franchise fees $ 29 $ 34 $ 33 Base and other management fees 10 11 23 Incentive management fees 3 3 4 Other revenues from managed and franchised properties 144 160 293 Expenses: Depreciation and amortization 1 — — Other expenses from managed and franchised properties 144 160 293 Statements of Cash Flows Investing Activities: Contract acquisition costs — — 7 We also purchase products and services from entities affiliated with or owned by Blackstone. The fees paid for these products and services were $9 million, $32 million and $31 million during the years ended December 31, 2016, 2015 and 2014, respectively. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Note 23: Supplemental Disclosures of Cash Flow Information Interest paid during the years ended December 31, 2016, 2015 and 2014, was $478 million, $485 million and $514 million, respectively. Income taxes, net of refunds, paid during the years ended December 31, 2016, 2015 and 2014 were $677 million, $475 million and $429 million, respectively. The following non-cash investing and financing activities were excluded from the consolidated statements of cash flows: • In 2016, we transferred $116 million of Park’s property and equipment to HGV’s timeshare inventory for conversion into timeshare units. • In 2015, we assumed a $450 million loan as a result of an acquisition for Park. • In 2015, one of our consolidated VIEs modified the terms of its capital lease resulting in a reduction in long-term debt of $24 million. • In 2014, we transferred $45 million of Park’s property and equipment to HGV’s timeshare inventory as part of the conversion of certain floors at one of Park’s properties into timeshare units. • In 2014, we completed an equity investments exchange for Park with a joint venture partner where we acquired $144 million of property and equipment, $1 million of other intangible assets and assumed $64 million of long-term debt. We also disposed of $59 million in equity method investments. • In 2014, we restructured a capital lease of Park in conjunction with a rent arbitration ruling, for which we recorded an additional capital lease asset and obligation of $11 million. |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor Financial Information | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | ||
Condensed Consolidating Guarantor Financial Information | Note 15: Condensed Consolidating Guarantor Financial Information In October 2013, Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (the “HWF Issuers”), entities that are 100 percent owned by Hilton Worldwide Parent LLC (“HWP”), which is 100 percent owned by the Parent, issued the 2021 Senior Notes. In September 2016, Hilton Domestic Operating Company Inc. (“HOC”), an entity incorporated in July 2016 that is 100 percent owned by Hilton Worldwide Finance LLC, assumed the 2024 Senior Notes that were issued in August 2016 by escrow issuers and is a guarantor of the 2021 Senior Notes, 2025 Senior Notes and 2027 Senior Notes. In March 2017, the HWF Issuers, which are guarantors of the 2024 Seniors Notes, issued the 2025 Senior Notes and 2027 Senior Notes, and we used the net proceeds and available cash to repay in full the 2021 Senior Notes. The 2024 Senior Notes, 2025 Senior Notes and 2027 Senior Notes are collectively referred to as the Senior Notes and are all guaranteed by HWP. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers. The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by the Parent and certain of the Parent’s 100 percent owned domestic restricted subsidiaries that are themselves not issuers of the applicable series of Senior Notes (together, the “Guarantors”). The indentures that govern the Senior Notes provide that any subsidiary of the Company that provides a guarantee of the Senior Secured Credit Facility will guarantee the Senior Notes. As of March 31, 2017, none of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guarantee the Senior Notes (collectively, the “Non-Guarantors”). In September 2016, certain employees, assets and liabilities of a guarantor subsidiary were transferred into HOC. This transfer was considered to be a transfer of assets rather than a transfer of a business. Accordingly, we have separately presented HOC as a subsidiary issuer in our condensed consolidating financial information prospectively from the date of the transfer. In connection with the spin-offs, certain entities that were previously guarantors of the 2021 Senior Notes and 2024 Senior Notes were released and no longer guaranteed these senior notes. The condensed consolidating financial information presents the financial information based on the composition of the Guarantors and Non-Guarantors as of March 31, 2017. The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under the Senior Secured Credit Facility; (iii) the subsidiary is declared “unrestricted” for covenant purposes; (iv) the subsidiary is merged with or into the applicable Subsidiary Issuers or another Guarantor or the Guarantor liquidates after transferring all of its assets to the applicable Subsidiary Issuers or another Guarantor; or (v) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied, in each case in compliance with applicable provisions of the indentures. The following schedules present the condensed consolidating financial information as of March 31, 2017 and December 31, 2016, and for the three months ended March 31, 2017 and 2016, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. March 31, 2017 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 11 $ 848 $ — $ 862 Restricted cash and cash equivalents — — 87 10 27 — 124 Accounts receivable, net — — 11 644 256 — 911 Intercompany receivables — — — — 40 (40 ) — Prepaid expenses — — 8 48 74 (1 ) 129 Other — — 1 5 37 — 43 Total current assets — — 110 718 1,282 (41 ) 2,069 Intangibles and Other Assets: Investments in subsidiaries 1,588 6,975 8,127 1,588 — (18,278 ) — Goodwill — — — 3,824 1,311 — 5,135 Brands — — — 4,405 451 — 4,856 Management and franchise contracts, net — — — 683 247 — 930 Other intangible assets, net — — 1 282 148 — 431 Property and equipment, net — — 11 61 269 — 341 Deferred income tax assets 10 4 174 — 82 (188 ) 82 Other — 11 31 235 166 — 443 Total intangibles and other assets 1,598 6,990 8,344 11,078 2,674 (18,466 ) 12,218 TOTAL ASSETS $ 1,598 $ 6,990 $ 8,454 $ 11,796 $ 3,956 $ (18,507 ) $ 14,287 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 6 $ 176 $ 1,195 $ 422 $ (1 ) $ 1,798 Intercompany payables — — 40 — — (40 ) — Current maturities of long-term debt — 32 — — 9 — 41 Income taxes payable — — — 49 79 — 128 Total current liabilities — 38 216 1,244 510 (41 ) 1,967 Long-term debt — 5,357 982 — 249 — 6,588 Deferred revenues — — — 22 — — 22 Deferred income tax liabilities — — — 1,884 27 (188 ) 1,723 Liability for guest loyalty program — — — 898 — — 898 Other — 7 281 499 706 — 1,493 Total liabilities — 5,402 1,479 4,547 1,492 (229 ) 12,691 Equity: Total Hilton stockholders’ equity 1,598 1,588 6,975 7,249 2,466 (18,278 ) 1,598 Noncontrolling interests — — — — (2 ) — (2 ) Total equity 1,598 1,588 6,975 7,249 2,464 (18,278 ) 1,596 TOTAL LIABILITIES AND EQUITY $ 1,598 $ 6,990 $ 8,454 $ 11,796 $ 3,956 $ (18,507 ) $ 14,287 December 31, 2016 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 22 $ 1,037 $ — $ 1,062 Restricted cash and cash equivalents — — 87 9 25 — 121 Accounts receivable, net — — 7 484 264 — 755 Intercompany receivables — — — — 42 (42 ) — Prepaid expenses — — 6 21 65 (3 ) 89 Income taxes receivable — — — 30 — (17 ) 13 Other — — 1 5 33 — 39 Current assets of discontinued operations — — — — 1,502 (24 ) 1,478 Total current assets — — 104 571 2,968 (86 ) 3,557 Intangibles and Other Assets: Investments in subsidiaries 5,889 11,300 12,583 5,889 — (35,661 ) — Goodwill — — — 3,824 1,394 — 5,218 Brands — — — 4,404 444 — 4,848 Management and franchise contracts, net — — — 716 247 — 963 Other intangible assets, net — — 1 296 150 — 447 Property and equipment, net — — 12 62 267 — 341 Deferred income tax assets 10 2 167 — 82 (179 ) 82 Other — 12 30 213 153 — 408 Non-current assets of discontinued operations — — — 12 10,345 (10 ) 10,347 Total intangibles and other assets 5,899 11,314 12,793 15,416 13,082 (35,850 ) 22,654 TOTAL ASSETS $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 26 $ 293 $ 1,091 $ 414 $ (3 ) $ 1,821 Intercompany payables — — 42 — — (42 ) — Current maturities of long-term debt — 26 — — 7 — 33 Income taxes payable — — — — 73 (17 ) 56 Current liabilities of discontinued operations — — — 77 721 (24 ) 774 Total current liabilities — 52 335 1,168 1,215 (86 ) 2,684 Long-term debt — 5,361 981 — 241 — 6,583 Deferred revenues — — — 42 — — 42 Deferred income tax liabilities — — — 1,919 38 (179 ) 1,778 Liability for guest loyalty program — — — 889 — — 889 Other — 12 277 490 713 — 1,492 Non-current liabilities of discontinued operations — — 4 — 6,900 (10 ) 6,894 Total liabilities — 5,425 1,597 4,508 9,107 (275 ) 20,362 Equity: Total Hilton stockholders’ equity 5,899 5,889 11,300 11,479 6,993 (35,661 ) 5,899 Noncontrolling interests — — — — (50 ) — (50 ) Total equity 5,899 5,889 11,300 11,479 6,943 (35,661 ) 5,849 TOTAL LIABILITIES AND EQUITY $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 Three Months Ended March 31, 2017 Parent HWF HOC Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 19 $ 255 $ 24 $ (4 ) $ 294 Base and other management fees — — — 50 33 — 83 Incentive management fees — — — 22 30 — 52 Owned and leased hotels — — — — 300 — 300 Other revenues — — 20 13 4 — 37 — — 39 340 391 (4 ) 766 Other revenues from managed and franchised properties — — 45 1,220 130 — 1,395 Total revenues — — 84 1,560 521 (4 ) 2,161 Expenses Owned and leased hotels — — — — 272 — 272 Depreciation and amortization — — 1 64 24 — 89 General and administrative — — 79 2 24 — 105 Other expenses — — 12 7 8 (4 ) 23 — — 92 73 328 (4 ) 489 Other expenses from managed and franchised properties — — 45 1,220 130 — 1,395 Total expenses — — 137 1,293 458 (4 ) 1,884 Operating income (loss) — — (53 ) 267 63 — 277 Interest expense — (63 ) (28 ) — (13 ) — (104 ) Gain (loss) on foreign currency transactions — — 11 21 (36 ) — (4 ) Loss on debt extinguishment — (60 ) — — — — (60 ) Other non-operating income (loss), net — (3 ) 1 1 2 — 1 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (126 ) (69 ) 289 16 — 110 Income tax benefit (expense) — 49 27 (108 ) (3 ) — (35 ) Income (loss) from continuing operations before equity in earnings from subsidiaries — (77 ) (42 ) 181 13 — 75 Equity in earnings from subsidiaries 74 151 193 74 — (492 ) — Net income 74 74 151 255 13 (492 ) 75 Net income attributable to noncontrolling interests — — — — (1 ) — (1 ) Net income attributable to Hilton stockholders $ 74 $ 74 $ 151 $ 255 $ 12 $ (492 ) $ 74 Comprehensive income $ 94 $ 72 $ 155 $ 255 $ 30 $ (512 ) $ 94 Comprehensive loss (income) attributable to noncontrolling interests — — — — — — — Comprehensive income attributable to Hilton stockholders $ 94 $ 72 $ 155 $ 255 $ 30 $ (512 ) $ 94 Three Months Ended March 31, 2016 Parent HWF Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 234 $ 22 $ (3 ) $ 253 Base and other management fees — — 32 28 — 60 Incentive management fees — — 8 28 — 36 Owned and leased hotels — — — 319 — 319 Other revenues — — 14 3 — 17 — — 288 400 (3 ) 685 Other revenues from managed and franchised properties — — 924 117 — 1,041 Total revenues — — 1,212 517 (3 ) 1,726 Expenses Owned and leased hotels — — — 307 — 307 Depreciation and amortization — — 68 24 — 92 Impairment loss — — — 15 — 15 General and administrative — — 57 26 — 83 Other expenses — — 9 12 (3 ) 18 — — 134 384 (3 ) 515 Other expenses from managed and franchised properties — — 924 117 — 1,041 Total expenses — — 1,058 501 (3 ) 1,556 Operating income — — 154 16 — 170 Interest expense — (67 ) (11 ) (12 ) — (90 ) Gain (loss) on foreign currency transactions — — 5 (17 ) — (12 ) Other non-operating income, net — — 2 — — 2 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (67 ) 150 (13 ) — 70 Income tax benefit (expense) 192 26 (100 ) 3 — 121 Income (loss) from continuing operations before equity in earnings from subsidiaries 192 (41 ) 50 (10 ) — 191 Equity in earnings (losses) from subsidiaries — 41 (9 ) — (32 ) — Income (losses) from continuing operations, net of taxes 192 — 41 (10 ) (32 ) 191 Income from discontinued operations, net of taxes 117 117 117 106 (338 ) 119 Net income 309 117 158 96 (370 ) 310 Net income attributable to noncontrolling interests — — — (1 ) — (1 ) Net income attributable to Hilton stockholders $ 309 $ 117 $ 158 $ 95 $ (370 ) $ 309 Comprehensive income $ 319 $ 111 $ 149 $ 119 $ (380 ) $ 318 Comprehensive loss attributable to noncontrolling interests — — — 1 — 1 Comprehensive income attributable to Hilton stockholders $ 319 $ 111 $ 149 $ 120 $ (380 ) $ 319 Three Months Ended March 31, 2017 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ — $ (102 ) $ 56 $ 112 $ (3 ) $ 63 Investing Activities: Capital expenditures for property and equipment — — — (1 ) (8 ) — (9 ) Contract acquisition costs — — — (8 ) (5 ) — (13 ) Capitalized software costs — — — (9 ) — — (9 ) Other — (13 ) — (6 ) — — (19 ) Net cash used in investing activities — (13 ) — (24 ) (13 ) — (50 ) Financing Activities: Borrowings — 1,823 — — — — 1,823 Repayment of debt — (1,823 ) — — (1 ) — (1,824 ) Debt issuance costs and redemption premium — (66 ) — — — — (66 ) Repayment of intercompany borrowings — — (3 ) — — 3 — Intercompany transfers 119 79 133 (42 ) (289 ) — — Dividends paid (49 ) — — — — — (49 ) Cash transferred in spin-offs of Park and HGV — — — — (501 ) — (501 ) Repurchases of common stock (70 ) — — — — — (70 ) Distributions to noncontrolling interests — — — — (1 ) — (1 ) Tax withholdings on share-based compensation — — (28 ) — — — (28 ) Net cash provided by (used in) financing activities — 13 102 (42 ) (792 ) 3 (716 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — 5 — 5 Net decrease in cash, restricted cash and cash equivalents — — — (10 ) (688 ) — (698 ) Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 90 31 1,062 — 1,183 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — — 501 — 501 Cash, restricted cash and cash equivalents, beginning of period — — 90 31 1,563 — 1,684 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 90 $ 21 $ 875 $ — $ 986 Three Months Ended March 31, 2016 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ — $ (279 ) $ 618 $ — $ 339 Investing Activities: Capital expenditures for property and equipment — — — (84 ) — (84 ) Contract acquisition costs — — (8 ) (1 ) — (9 ) Capitalized software costs — — (10 ) (1 ) — (11 ) Other — — (9 ) 3 — (6 ) Net cash used in investing activities — — (27 ) (83 ) — (110 ) Financing Activities: Repayment of debt — — — (32 ) — (32 ) Intercompany transfers 69 — 317 (386 ) — — Dividends paid (69 ) — — — — (69 ) Distributions to noncontrolling interests — — — (2 ) — (2 ) Tax withholdings on share-based compensation — — (13 ) — — (13 ) Net cash provided by (used in) financing activities — — 304 (420 ) — (116 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — 4 — 4 Net increase (decrease) in cash, restricted cash and cash equivalents — — (2 ) 119 — 117 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 108 526 — 634 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — 222 — 222 Cash, restricted cash and cash equivalents, beginning of period — — 108 748 — 856 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 106 576 — 682 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — 291 — 291 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 106 $ 867 $ — $ 973 | Note 24: Condensed Consolidating Guarantor Financial Information In October 2013, Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (the “HWF Issuers”), entities that are 100 percent owned by Hilton Worldwide Parent LLC (“HWP”), which is 100 percent owned by the Parent, issued the 2021 Senior Notes. In September 2016, Hilton Domestic Operating Company Inc. (“HOC”), an entity incorporated in July 2016 that is 100 percent owned by Hilton Worldwide Finance LLC and a guarantor of the 2021 Senior Notes, assumed the 2024 Senior Notes that were issued in August 2016 by escrow issuers and are guaranteed by the HWF Issuers and HWP. The 2021 Senior Notes and the 2024 Senior Notes are referred to as the Senior Notes. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers. In September 2016, certain employees, assets and liabilities of a guarantor subsidiary were transferred into HOC. This transfer was considered to be a transfer of assets rather than a transfer of a business. Accordingly, we have separately presented HOC as a subsidiary issuer in our condensed consolidating financial information prospectively from the date of the transfer. The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by the Parent and certain of the Parent’s 100 percent owned domestic restricted subsidiaries that are themselves not issuers of the applicable series of Senior Notes (together, the “Guarantors”). The indentures that govern the Senior Notes provide that any subsidiary of the Company that provides a guarantee of the Senior Secured Credit Facility will guarantee the Senior Notes. None of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guarantee the Senior Notes (collectively, the “Non-Guarantors”). The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under the Senior Secured Credit Facility; (iii) the subsidiary is declared “unrestricted” for covenant purposes; (iv) the subsidiary is merged with or into the applicable Subsidiary Issuers or another Guarantor or the Guarantor liquidates after transferring all of its assets to the applicable Subsidiary Issuers or another Guarantor; or (v) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied, in each case in compliance with applicable provisions of the indentures. The following schedules present the condensed consolidating financial information as of December 31, 2016 and 2015, and for the years ended December 31, 2016, 2015 and 2014, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. December 31, 2016 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 22 $ 1,037 $ — $ 1,062 Restricted cash and cash equivalents — — 87 9 25 — 121 Accounts receivable, net — — 7 484 264 — 755 Intercompany receivables — — — — 42 (42 ) — Prepaid expenses — — 6 21 65 (3 ) 89 Income taxes receivable — — — 30 — (17 ) 13 Other — — 1 5 33 — 39 Current assets of discontinued operations — — — — 1,502 (24 ) 1,478 Total current assets — — 104 571 2,968 (86 ) 3,557 Intangibles and Other Assets: Investments in subsidiaries 5,889 11,300 12,583 5,889 — (35,661 ) — Goodwill — — — 3,824 1,394 — 5,218 Brands — — — 4,404 444 — 4,848 Management and franchise contracts, net — — — 716 247 — 963 Other intangible assets, net — — 1 296 150 — 447 Property and equipment, net — — 12 62 267 — 341 Deferred income tax assets 10 2 167 — 82 (179 ) 82 Other — 12 30 213 153 — 408 Non-current assets of discontinued operations — — — 12 10,345 (10 ) 10,347 Total intangibles and other assets 5,899 11,314 12,793 15,416 13,082 (35,850 ) 22,654 TOTAL ASSETS $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 26 $ 293 $ 1,091 $ 414 $ (3 ) $ 1,821 Intercompany payables — — 42 — — (42 ) — Current maturities of long-term debt — 26 — — 7 — 33 Income taxes payable — — — — 73 (17 ) 56 Current liabilities of discontinued operations — — — 77 721 (24 ) 774 Total current liabilities — 52 335 1,168 1,215 (86 ) 2,684 Long-term debt — 5,361 981 — 241 — 6,583 Deferred revenues — — — 42 — — 42 Deferred income tax liabilities — — — 1,919 38 (179 ) 1,778 Liability for guest loyalty program — — — 889 — — 889 Other — 12 277 490 713 — 1,492 Non-current liabilities of discontinued operations — — 4 — 6,900 (10 ) 6,894 Total liabilities — 5,425 1,597 4,508 9,107 (275 ) 20,362 Equity: Total Hilton stockholders’ equity 5,899 5,889 11,300 11,479 6,993 (35,661 ) 5,899 Noncontrolling interests — — — — (50 ) — (50 ) Total equity 5,899 5,889 11,300 11,479 6,943 (35,661 ) 5,849 TOTAL LIABILITIES AND EQUITY $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 December 31, 2015 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 18 $ 495 $ — $ 513 Restricted cash and cash equivalents — — 91 29 — 120 Accounts receivable, net — — 406 258 — 664 Prepaid expenses — — 36 79 (3 ) 112 Income taxes receivable — — 120 — (23 ) 97 Other — — 3 32 — 35 Current assets of discontinued operations — — — 1,070 (26 ) 1,044 Total current assets — — 674 1,963 (52 ) 2,585 Intangibles and Other Assets: Investments in subsidiaries 6,166 11,854 6,457 — (24,477 ) — Goodwill — — 3,824 1,456 — 5,280 Brands — — 4,405 514 — 4,919 Management and franchise contracts, net — — 818 271 — 1,089 Other intangible assets, net — — 334 189 — 523 Property and equipment, net — — 73 338 — 411 Deferred income tax assets 24 3 — 59 (27 ) 59 Other — 9 200 123 — 332 Non-current assets of discontinued operations — — 28 10,396 — 10,424 Total intangibles and other assets 6,190 11,866 16,139 13,346 (24,504 ) 23,037 TOTAL ASSETS $ 6,190 $ 11,866 $ 16,813 $ 15,309 $ (24,556 ) $ 25,622 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 39 $ 1,168 $ 415 $ (3 ) $ 1,619 Current maturities of long-term debt — — — 7 — 7 Income taxes payable — — — 50 (23 ) 27 Current liabilities of discontinued operations — — 71 767 (26 ) 812 Total current liabilities — 39 1,239 1,239 (52 ) 2,465 Long-term debt — 5,647 — 240 — 5,887 Deferred revenues — — 251 — — 251 Deferred income tax liabilities — — 1,813 89 (27 ) 1,875 Liability for guest loyalty program — — 784 — — 784 Other 205 14 808 238 — 1,265 Non-current liabilities of discontinued operations — — 64 7,080 — 7,144 Total liabilities 205 5,700 4,959 8,886 (79 ) 19,671 Equity: Total Hilton stockholders’ equity 5,985 6,166 11,854 6,457 (24,477 ) 5,985 Noncontrolling interests — — — (34 ) — (34 ) Total equity 5,985 6,166 11,854 6,423 (24,477 ) 5,951 TOTAL LIABILITIES AND EQUITY $ 6,190 $ 11,866 $ 16,813 $ 15,309 $ (24,556 ) $ 25,622 Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 21 $ 1,031 $ 112 $ (10 ) $ 1,154 Base and other management fees — — — 126 116 — 242 Incentive management fees — — — 16 126 — 142 Owned and leased hotels — — — — 1,452 — 1,452 Other revenues — — 10 61 11 — 82 — — 31 1,234 1,817 (10 ) 3,072 Other revenues from managed and franchised properties — — 32 3,777 501 — 4,310 Total revenues — — 63 5,011 2,318 (10 ) 7,382 Expenses Owned and leased hotels — — — — 1,295 — 1,295 Depreciation and amortization — — 1 272 91 — 364 Impairment loss — — — — 15 — 15 General and administrative — — 90 204 109 — 403 Other expenses — — 1 31 29 (10 ) 51 — — 92 507 1,539 (10 ) 2,128 Other expenses from managed and franchised properties — — 32 3,777 501 — 4,310 Total expenses — — 124 4,284 2,040 (10 ) 6,438 Gain on sales of assets, net — — — — 8 — 8 Operating income (loss) — — (61 ) 727 286 — 952 Interest expense — (261 ) (30 ) (51 ) (52 ) (394 ) Gain (loss) on foreign currency transactions — — 11 (150 ) 123 — (16 ) Other non-operating income, net — 1 1 8 4 — 14 Income (loss) from continuing operations before income taxes and equity in losses from subsidiaries — (260 ) (79 ) 534 361 — 556 Income tax benefit (expense) 193 100 32 (319 ) (570 ) — (564 ) Income (loss) from continuing operations before equity in losses from subsidiaries 193 (160 ) (47 ) 215 (209 ) — (8 ) Equity in losses from subsidiaries (211 ) (51 ) (4 ) (211 ) — 477 — Income (loss) from continuing operations, net of taxes (18 ) (211 ) (51 ) 4 (209 ) 477 (8 ) Income from discontinued operations, net of taxes 366 366 366 428 374 (1,528 ) 372 Net income 348 155 315 432 165 (1,051 ) 364 Net income attributable to noncontrolling interests — — — — (16 ) — (16 ) Net income attributable to Hilton stockholders $ 348 $ 155 $ 315 $ 432 $ 149 $ (1,051 ) $ 348 Comprehensive income $ 131 $ 153 $ 320 $ 361 $ 15 $ (834 ) $ 146 Comprehensive income attributable to noncontrolling interests — — — — (15 ) — (15 ) Comprehensive income attributable to Hilton stockholders $ 131 $ 153 $ 320 $ 361 $ — $ (834 ) $ 131 Year Ended December 31, 2015 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 998 $ 101 $ (12 ) $ 1,087 Base and other management fees — — 125 105 — 230 Incentive management fees — — 18 120 — 138 Owned and leased hotels — — — 1,596 — 1,596 Other revenues — — 61 10 — 71 — — 1,202 1,932 (12 ) 3,122 Other revenues from managed and franchised properties — — 3,510 501 — 4,011 Total revenues — — 4,712 2,433 (12 ) 7,133 Expenses Owned and leased hotels — — — 1,414 — 1,414 Depreciation and amortization — — 288 97 — 385 Impairment loss — — — 9 — 9 General and administrative — — 424 113 — 537 Other expenses — — 37 15 (12 ) 40 — — 749 1,648 (12 ) 2,385 Other expenses from managed and franchised properties — — 3,510 501 — 4,011 Total expenses — — 4,259 2,149 (12 ) 6,396 Gain on sales of assets, net — — — 163 — 163 Operating income — — 453 447 — 900 Interest expense — (281 ) (50 ) (46 ) — (377 ) Gain (loss) on foreign currency transactions — — 77 (118 ) — (41 ) Other non-operating income, net — — 14 37 — 51 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (281 ) 494 320 — 533 Income tax benefit (expense) (7 ) 108 189 58 — 348 Income (loss) from continuing operations before equity in earnings from subsidiaries (7 ) (173 ) 683 378 — 881 Equity in earnings from subsidiaries 883 1,056 373 — (2,312 ) — Income from continuing operations, net of taxes 876 883 1,056 378 (2,312 ) 881 Income from discontinued operations, net of taxes 528 528 528 460 (1,509 ) 535 Net income 1,404 1,411 1,584 838 (3,821 ) 1,416 Net income attributable to noncontrolling interests — — — (12 ) — (12 ) Net income attributable to Hilton stockholders $ 1,404 $ 1,411 $ 1,584 $ 826 $ (3,821 ) $ 1,404 Comprehensive income $ 1,248 $ 1,404 $ 1,546 $ 727 $ (3,665 ) $ 1,260 Comprehensive income attributable to noncontrolling interests — — — (12 ) — (12 ) Comprehensive income attributable to Hilton stockholders $ 1,248 $ 1,404 $ 1,546 $ 715 $ (3,665 ) $ 1,248 Year Ended December 31, 2014 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 826 $ 85 $ (6 ) $ 905 Base and other management fees — — 129 102 (4 ) 227 Incentive management fees — — 17 116 — 133 Owned and leased hotels — — — 1,776 — 1,776 Other revenues — — 71 9 — 80 — — 1,043 2,088 (10 ) 3,121 Other revenues from managed and franchised properties — — 3,120 447 — 3,567 Total revenues — — 4,163 2,535 (10 ) 6,688 Expenses Owned and leased hotels — — — 1,586 — 1,586 Depreciation and amortization — — 263 100 — 363 General and administrative — — 303 108 — 411 Other expenses — — 49 19 (10 ) 58 — — 615 1,813 (10 ) 2,418 Other expenses from managed and franchised properties — — 3,120 447 — 3,567 Total expenses — — 3,735 2,260 (10 ) 5,985 Operating income — — 428 275 — 703 Interest expense — (334 ) (54 ) (28 ) — (416 ) Gain (loss) on foreign currency transactions — — 443 (417 ) — 26 Other non-operating income, net — — 9 11 — 20 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (334 ) 826 (159 ) — 333 Income tax benefit (expense) (5 ) 128 (306 ) 29 — (154 ) Income (loss) from continuing operations before equity in earnings from subsidiaries (5 ) (206 ) 520 (130 ) — 179 Equity in earnings (losses) from subsidiaries 179 385 (135 ) — (429 ) — Income (loss) from continuing operations, net of taxes 174 179 385 (130 ) (429 ) 179 Income from discontinued operations, net of taxes 499 499 499 450 (1,444 ) 503 Net income 673 678 884 320 (1,873 ) 682 Net income attributable to noncontrolling interests — — — (9 ) — (9 ) Net income attributable to Hilton stockholders $ 673 $ 678 $ 884 $ 311 $ (1,873 ) $ 673 Comprehensive income $ 315 $ 669 $ 813 $ 47 $ (1,515 ) $ 329 Comprehensive income attributable to noncontrolling interests — — — (14 ) — (14 ) Comprehensive income attributable to Hilton stockholders $ 315 $ 669 $ 813 $ 33 $ (1,515 ) $ 315 Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (37 ) $ — $ 912 $ 1,095 $ (605 ) $ 1,365 Investing Activities: Capital expenditures for property and equipment — — — (9 ) (308 ) — (317 ) Issuance of intercompany receivables — — — (192 ) (42 ) 234 — Payments received on intercompany receivables — — — 192 — (192 ) — Proceeds from asset dispositions — — — — 11 — 11 Contract acquisition costs — — — (46 ) (9 ) — (55 ) Capitalized software costs — — — (73 ) (8 ) — (81 ) Other — (6 ) — (35 ) 5 — (36 ) Net cash used in investing activities — (6 ) — (163 ) (351 ) 42 (478 ) Financing Activities: Borrowings — — 1,000 — 3,715 — 4,715 Repayment of debt — (266 ) — — (4,093 ) — (4,359 ) Debt issuance costs — (17 ) (20 ) — (39 ) — (76 ) Intercompany borrowings — — — 42 192 (234 ) — Repayment of intercompany borrowings — — — — (192 ) 192 — Intercompany transfers 277 326 (890 ) (854 ) 1,141 — — Dividends paid (277 ) — — — — — (277 ) Intercompany dividends — — — — (605 ) 605 — Distributions to noncontrolling interests — — — — (32 ) — (32 ) Tax withholdings on share-based compensation — — — (15 ) — — (15 ) Net cash provided by (used in) financing activities — 43 90 (827 ) 87 563 (44 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (15 ) — (15 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — 90 (78 ) 816 — 828 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — — 109 524 — 633 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — — 223 — 223 Cash, restricted cash and cash equivalents, beginning of period — — — 109 747 — 856 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 90 31 1,062 — 1,183 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — — 501 — 501 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 90 $ 31 $ 1,563 $ — $ 1,684 Year Ended December 31, 2015 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ 184 $ 975 $ 723 $ (436 ) $ 1,446 Investing Activities: Capital expenditures for property and equipment — — (11 ) (299 ) — (310 ) Acquisitions, net of cash acquired — — — (1,402 ) — (1,402 ) Proceeds from asset dispositions — — — 2,205 — 2,205 Contract acquisition costs — — (23 ) (14 ) — (37 ) Capitalized software costs — — (57 ) (5 ) — (62 ) Other — — 13 7 — 20 Net cash provided by (used in) investing activities — — (78 ) 492 — 414 Financing Activities: Borrowings — — — 48 — 48 Repayment of debt — (775 ) — (849 ) — (1,624 ) Intercompany transfers 138 591 (693 ) (36 ) — — Dividends paid (138 ) — — — — (138 ) Intercompany dividends — — (184 ) (252 ) 436 — Distributions to noncontrolling interests — — — (8 ) — (8 ) Tax withholdings on share-based compensation — — (31 ) — — (31 ) Net cash provided by (used in) financing activities — (184 ) (908 ) (1,097 ) 436 (1,753 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — (19 ) — (19 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — (11 ) 99 — 88 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 119 509 — 628 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — 1 139 — 140 Cash, restricted cash and cash equivalents, beginning of period — — 120 648 — 768 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 109 524 — 633 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — 223 — 223 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 109 $ 747 $ — $ 856 Year Ended December 31, 2014 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ — $ 1,085 $ 522 $ (300 ) $ 1,307 Investing Activities: Capital expenditures for property and equipment — — (5 ) (263 ) — (268 ) Proceeds from asset dispositions — — 4 40 — 44 Contract acquisition costs — — (19 ) (46 ) — (65 ) Capitalized software costs — — (64 ) (5 ) — (69 ) Other — — 11 37 — 48 Net cash used in investing activities — — (73 ) (237 ) — (310 ) Financing Activities: Borrowings — — — 350 — 350 Repayment of debt — (1,000 ) — (424 ) — (1,424 ) Debt issuance costs — (6 ) — (3 ) — (9 ) Capital contribution — — — 22 (9 ) 13 Intercompany transfers — 1,006 (1,094 ) 88 — — Intercompany dividends — — — (309 ) 309 — Distributions to noncontrolling interests — — — (5 ) — (5 ) Net cash used in financing activities — — (1,094 ) (281 ) 300 (1,075 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — (14 ) — (14 ) Net decrease in cash, restricted cash and cash equivalents — — (82 ) (10 ) — (92 ) Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 201 505 — 706 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — 1 153 — 154 Cash, restricted cash and cash equivalents, beginning of period — — 202 658 — 860 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 119 509 — 628 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — 1 139 — 140 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 120 $ 648 $ — $ 768 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure Unaudited [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Note 25: Selected Quarterly Financial Information (unaudited) The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2016 First Second Third Fourth Year (in millions, except per share data) Revenues $ 1,726 $ 1,950 $ 1,867 $ 1,839 $ 7,382 Operating income 170 273 265 244 952 Income (loss) from continuing operations, net of taxes 191 100 89 (388 ) (8 ) Income from discontinued operations, net of taxes 119 144 103 6 372 Net income (loss) 310 244 192 (382 ) 364 Net income (loss) attributable to Hilton stockholders 309 239 187 (387 ) 348 Basic earnings (loss) per share: Net income (loss) from continuing operations (1) $ 0.58 $ 0.29 $ 0.27 $ (1.20 ) $ (0.05 ) Net income from discontinued operations (1) 0.36 0.44 0.30 0.02 1.11 Net income (loss) $ 0.94 $ 0.73 $ 0.57 $ (1.18 ) $ 1.06 Diluted earnings (loss) per share: Net income (loss) from continuing operations (1) $ 0.58 $ 0.29 $ 0.27 $ (1.20 ) $ (0.05 ) Net income from discontinued operations 0.36 0.43 0.30 0.02 1.11 Net income (loss) (1) $ 0.94 $ 0.72 $ 0.57 $ (1.18 ) $ 1.06 2015 First Second Third Fourth Year (in millions, except per share data) Revenues $ 1,630 $ 1,845 $ 1,847 $ 1,811 $ 7,133 Operating income 143 135 391 231 900 Income (loss) from continuing operations, net of taxes (1 ) 40 153 689 881 Income from discontinued operations, net of taxes 151 127 130 127 535 Net income 150 167 283 816 1,416 Net income attributable to Hilton stockholders 150 161 279 814 1,404 Basic earnings per share: Net income from continuing operations $ — $ 0.11 $ 0.47 $ 2.09 $ 2.67 Net income from discontinued operations 0.46 0.38 0.38 0.38 1.60 Net income $ 0.46 $ 0.49 $ 0.85 $ 2.47 $ 4.27 Diluted earnings per share: Net income from continuing operations (1) $ — $ 0.11 $ 0.47 $ 2.09 $ 2.66 Net income from discontinued operations 0.46 0.38 0.38 0.38 1.60 Net income (1) $ 0.46 $ 0.49 $ 0.85 $ 2.47 $ 4.26 (1) The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. |
Subsequent Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Subsequent Events [Abstract] | ||
Subsequent Events | Note 16: Subsequent Events In June 2017, affiliates of Blackstone sold 15,000,000 shares of Hilton common stock in a secondary offering. Additionally, in June 2017, as part of our stock repurchase program, we repurchased 1,500,000 shares of our common stock directly from affiliates of Blackstone, in a private, non-underwritten transaction, at a share price of $65.82 totaling $99 million. Following the offering and the share repurchase, affiliates of Blackstone beneficially owned 10.3 percent of our common stock. | Note 26: Subsequent Events In January 2017, we completed the spin-offs of a portfolio of hotels and resorts, as well as our timeshare business, into two independent, publicly traded companies: Park and HGV. See Note 3: “Discontinued Operations” for additional information. In March 2017, we issued $900 million in aggregate principal amount of 4.625% Senior Notes due 2025 and $600 million in aggregate principal amount of 4.875% Senior Notes due 2027. We used the proceeds, along with available cash, to redeem in full our $1.5 billion 2021 Senior Notes, plus accrued and unpaid interest. In March 2017, we amended the Term Loans pursuant to which $750 million of outstanding Term Loans due in 2020 were extended, aligning their maturity with the $3,209 million tranche of Term Loans due 2023. Additionally, the entire balance of the Term Loans was repriced with an interest rate of LIBOR plus 200 basis points. In March 2017, HNA and certain of its affiliates completed the acquisition of 82.5 million shares of Hilton common stock, representing approximately a 25 percent equity interest in the common stock of the Parent, from affiliates of Blackstone. As such, Blackstone’s beneficial ownership interest in Hilton was reduced from approximately 40 percent to approximately 15 percent. In June 2017, affiliates of Blackstone sold 15,000,000 shares of Hilton common stock in a secondary offering. Additionally, in June 2017, as part of our stock repurchase program, we repurchased 1,500,000 shares of our common stock directly from affiliates of Blackstone, in a private, non-underwritten transaction, at a share price of $65.82 totaling $99 million. Following the offering and the share repurchase, affiliates of Blackstone beneficially owned 10.3 percent of our common stock. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Note 2: Recently Issued Accounting Pronouncements Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04 (“ASU 2017-04”), Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2016, the FASB issued ASU No. 2016-09 (“ASU 2016-09”), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) Leases (Topic 840) In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) Revenue Recognition (Topic 605) We anticipate that ASU 2014-09 will have a material effect on our consolidated financial statements. However, we expect revenue recognition related to our accounting for ongoing royalty and management fee revenues, direct reimbursable fees from our management and franchise agreements and hotel guest transactions at our owned and leased hotels to remain substantially unchanged. While we are continuing to assess all other potential effects of the standard, we currently believe the provisions of ASU 2014-09 will affect revenue recognition as follows: (i) application and initiation fees for new hotels entering the system will be recognized over the term of the franchise agreement; (ii) certain contract acquisition costs related to our management and franchise agreements will be recognized over the term of the agreements as a reduction to revenue; and (iii) incentive management fees will be recognized to the extent that it is probable that a significant reversal will not occur as a result of future hotel profits or cash flows. We do not expect the changes in revenue recognition for certain contract acquisition costs or incentive management fees to affect the Company’s net income for any full year period. We are currently assessing the effect of the standard on indirect reimbursable fees related to our management and franchise agreements and the accounting for our guest loyalty program. We continue to update our assessment of the effect that ASU 2014-09 and related ASUs will have on our consolidated financial statements, and we will disclose further material effects, if any, when known. |
Consolidated Variable Interes37
Consolidated Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Consolidated Variable Interest Entities | Note 4: Consolidated Variable Interest Entities As of March 31, 2017 and December 31, 2016, we consolidated three variable interest entities (“VIEs”): two entities that lease hotel properties and one management company. We are the primary beneficiaries of these consolidated VIEs as we have the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our VIEs are only available to settle the obligations of the respective entities. Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following: March 31, December 31, (in millions) Cash and cash equivalents $ 55 $ 57 Accounts receivable, net 14 14 Property and equipment, net 55 52 Deferred income tax assets 61 58 Other non-current assets 56 53 Accounts payable, accrued expenses and other 34 33 Long-term debt 222 212 During the three months ended March 31, 2017 and 2016, we did not provide any financial or other support to any VIEs that we were not previously contractually required to provide, nor do we intend to provide such support in the future. |
Stockholders' Equity and Accumu
Stockholders' Equity and Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Accumulated Other Comprehensive Loss | Note 11: Stockholders’ Equity and Accumulated Other Comprehensive Loss The changes in the components of stockholders’ equity were as follows: Equity Attributable to Hilton Stockholders Common Stock (1) Treasury Additional (1) Accumulated Accumulated Other Comprehensive Loss Noncontrolling Interests (2) Total Shares Amount (in millions) Balance as of December 31, 2016 329 $ 3 $ — $ 10,220 $ (3,323 ) $ (1,001 ) $ (50 ) $ 5,849 Share-based compensation 2 — — (7 ) — — — (7 ) Repurchases of common stock (1 ) — (70 ) — — — — (70 ) Net income — — — — 74 — 1 75 Other comprehensive income (loss) — — — — — 20 (1 ) 19 Dividends — — — — (50 ) — — (50 ) Spin-offs of Park and HGV — — — — (4,331 ) 63 49 (4,219 ) Cumulative effect of the adoption of ASU 2016-09 — — — 1 (1 ) — — — Distributions — — — — — — (1 ) (1 ) Balance as of March 31, 2017 330 $ 3 $ (70 ) $ 10,214 $ (7,631 ) $ (918 ) $ (2 ) $ 1,596 Equity Attributable to Hilton Stockholders Common Stock (1) Additional (1) Accumulated Accumulated Other Comprehensive Loss Noncontrolling Interests (2) Total Shares Amount (in millions) Balance as of December 31, 2015 329 $ 3 $ 10,158 $ (3,392 ) $ (784 ) $ (34 ) $ 5,951 Share-based compensation — — 2 — — — 2 Net income — — — 309 — 1 310 Other comprehensive income (loss) — — — — 10 (2 ) 8 Dividends — — — (69 ) — — (69 ) Cumulative effect of the adoption of ASU 2015-02 — — — — — 5 5 Distributions — — — — — (2 ) (2 ) Balance as of March 31, 2016 329 $ 3 $ 10,160 $ (3,152 ) $ (774 ) $ (32 ) $ 6,205 (1) Adjusted to reflect the Reverse Stock Split. See Note 1: “Organization and Basis of Presentation” for additional information. (2) Other comprehensive loss attributable to non-controlling interests was related to a currency translation adjustment. In February 2017, our board of directors authorized a stock repurchase program of up to $1.0 billion of the Company’s common stock. During the three months ended March 31, 2017, we repurchased 1,213,415 shares of common stock under the program at an average cost of $57.67 per share for an aggregate purchase price of $70 million. As of March 31, 2017, $930 million remained available for share repurchases under the program. The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows: Currency (1) Pension (2) Cash Flow (3) Total (in millions) Balance as of December 31, 2016 $ (738 ) $ (251 ) $ (12 ) $ (1,001 ) Other comprehensive income (loss) before reclassifications 21 (1 ) (4 ) 16 Amounts reclassified from accumulated other comprehensive loss — 2 2 4 Net current period other comprehensive income (loss) 21 1 (2 ) 20 Spin-offs of Park and HGV 63 — — 63 Balance as of March 31, 2017 $ (654 ) $ (250 ) $ (14 ) $ (918 ) (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. (2) Amounts reclassified include the amortization of prior service cost and net loss that were included in our computation of net periodic pension cost. They were recognized in general and administrative expenses, net of a $1 million tax benefit, in our condensed consolidated statement of operations. (3) Amounts reclassified related to the 2013 Interest Rate Swaps and were recognized in interest expense, net of a $1 million tax benefit, in our condensed consolidated statement of operations. Currency (1) Pension (2) Cash Flow Total (in millions) Balance as of December 31, 2015 $ (580 ) $ (194 ) $ (10 ) $ (784 ) Other comprehensive income (loss) before reclassifications 15 — (6 ) 9 Amounts reclassified from accumulated other comprehensive loss — 1 — 1 Net current period other comprehensive income (loss) 15 1 (6 ) 10 Balance as of March 31, 2016 $ (565 ) $ (193 ) $ (16 ) $ (774 ) (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. (2) Amounts reclassified were recognized in general and administrative expenses, net of a $1 million tax benefit, in our condensed consolidated statement of operations. |
Basis of Presentation and Sum39
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Hilton, our wholly owned subsidiaries and entities in which we have a controlling financial interest, including variable interest entities (“VIEs”) where we are the primary beneficiary. Entities in which we have a controlling financial interest generally comprise majority owned real estate ownership and management enterprises. 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 other ownership interests. If the entity is considered to be a VIE, we determine 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 interests in the entity. We consolidate entities when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. 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 outside ownership interests of our consolidated, non-wholly owned entities and are reported separately. | |
Reclassifications | Reclassifications Certain amounts in previously issued financial statements have been reclassified to conform to the presentation following the spin-offs, which includes the reclassification of the combined financial position and results of operations of Park and HGV as discontinued operations for all periods presented. Additionally, certain line items in the consolidated statements of operations have been revised to reflect the operating structure of Hilton subsequent to the spin-offs. The primary change to the consolidated statements of operations is the disaggregation of management and franchise fee revenues. | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with United States of America (“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. | |
Revenue Recognition | Revenue Recognition Revenues are primarily derived from the following sources and are generally recognized as services are rendered and when collectibility is reasonably assured. Amounts received in advance of revenue recognition are deferred as liabilities. • Franchise fees • Base and other management fees and incentive management fees • Owned and leased hotel revenues • Other revenues • Other revenues from managed and franchised properties We are required to collect certain taxes and fees from customers on behalf of government 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 revenues. 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. | |
Discontinued Operations | Discontinued Operations In determining whether a group of assets that is disposed (or to be disposed) should be presented as a discontinued operation, we analyze whether the group of assets being disposed represents a component of the Company; that is, whether it had historic operations and cash flows that were clearly distinguished, both operationally and for financial reporting purposes. In addition, we consider whether the disposal represents a strategic shift that has or will have a major effect on our operations and financial results. The results of discontinued operations, as well as any gain or loss on the disposal, if applicable, are aggregated and separately presented in our consolidated statements of operations, net of income taxes. The historical financial position of discontinued operations are aggregated and separately presented in our consolidated balance sheets. | |
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 security for certain guarantees, ground rent and property tax escrows, insurance and deposits for assets we plan to acquire. | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts An allowance for doubtful accounts is provided on accounts receivable when losses are probable based on historical collection activity and current business conditions. | |
Goodwill | Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below the carrying amount. In connection with the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone (the “Merger”), we recorded goodwill representing the excess purchase price over the fair value of the other identified assets and liabilities. We evaluate goodwill for potential impairment by comparing the carrying value of our reporting units to their fair value. Our reporting units are the same as our operating segments as described in Note 20: “Business Segments.” We perform this evaluation annually or at an interim date if indicators of impairment exist. In any year we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If we cannot determine qualitatively that the fair value is in excess of the carrying value, or we decide to bypass the qualitative assessment, we proceed to the quantitative process. This process 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 with its carrying value, including goodwill. The estimated fair value is based on internal projections of expected future cash flows and operating plans, as well as market conditions relative to the operations of our reporting units. If the estimated fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired; otherwise, an impairment loss is recognized within our consolidated statement of operations in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. | |
Brands | Brands We own, lease, operate and franchise hotels under our portfolio of brands. 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. As of December 31, 2016, our brand portfolio included Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio - A Collection by Hilton, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton and our timeshare brand, Hilton Grand Vacations. At the time of the Merger, our brands were assigned a fair value based on a common valuation technique known as the relief from royalty approach. Canopy by Hilton, Curio - A Collection by Hilton, Tru by Hilton and Home2 Suites by Hilton were launched post-Merger and, as such, they were not assigned fair values. We evaluate our brands for impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of the brand is below the carrying value. If we cannot determine qualitatively that the fair value is in excess of the carrying value, or we decide to bypass the qualitative assessment, we proceed to the quantitative process. If a brand’s estimated current fair value is less than its respective carrying value, the excess of the carrying value over the estimated fair value is recognized in our consolidated statements of operations within impairment loss. | |
Intangible Assets with Finite Useful Lives | Intangible Assets with Finite Useful Lives We have certain finite lived intangible assets that were initially recorded at their fair value at the time of the Merger. These intangible assets consist of management agreements, franchise contracts, leases, certain proprietary technologies and our guest loyalty program, Hilton Honors. Additionally, we capitalize direct and incremental management and franchise contract acquisition costs as finite lived intangible assets. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives. We capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses. Internal and external costs incurred in connection with development of upgrades or enhancements that result in additional functionality are also capitalized. These capitalized costs are amortized on a straight-line basis over the estimated useful life of the software. These capitalized costs are recorded in other intangible assets in our consolidated balance sheets. We review all finite lived intangible assets for impairment when circumstances indicate that their carrying amounts may not be recoverable. If the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the fair value in our consolidated statements of operations. | |
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. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements (8 to 40 years), furniture and equipment (3 to 8 years) and computer equipment (3 to 5 years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of potential impairment. We perform an analysis to determine the recoverability of the asset’s carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset, the excess of the net book value over the estimated fair value is recorded in our consolidated statements of operations within impairment loss. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset using discount and capitalization rates deemed reasonable for the type of asset, as well as prevailing market conditions, appraisals, recent similar transactions in the market and, if appropriate and available, current estimated net sales proceeds from pending offers. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred, which is generally upon acquisition, construction or development and/or through the normal operation of the asset. | |
Hilton Honors | Hilton Honors Hilton Honors is a guest loyalty and marketing program provided to hotels and resort properties. Nearly all of our owned, leased, managed and franchised hotels and resort properties participate in the Hilton Honors program. Hilton Honors members earn points based on their spending at our participating properties and through participation in affiliated partner programs. When points are earned by Hilton Honors members, the property or affiliated partner pays Hilton Honors based on an estimated cost per point for the costs of operating the program, which include marketing, promotion, communication, administration and the estimated cost of award redemptions. Hilton Honors member points are accumulated and 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. Hilton Honors records a liability related to revenue received from participating hotels and program partners in an amount equal to the estimated cost per point of the future redemption obligation. We engage outside actuaries to assist in determining the fair value of the future award redemption obligation using statistical formulas that project future point redemptions based on factors that include historical experience, an estimate of “breakage” (points that will never be redeemed), an estimate of the points that will eventually be redeemed and the cost of reimbursing hotels and other third parties in respect to other redemption opportunities available to members. Revenue is recognized by participating hotels and resorts only when points that have been redeemed for hotel stay certificates are used by members or their designees at the respective properties. Additionally, when members of the Hilton Honors loyalty program redeem award certificates at our owned and leased hotels, we recognize room revenue, included in owned and leased hotels revenues in our consolidated statements of operations. | |
Fair Value Measurements | 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 (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 in the 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. | |
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. Under the terms of certain loan agreements, we are required to maintain derivative financial instruments to manage interest rates. We do not enter into derivative financial instruments for trading or speculative purposes. We record all derivatives at fair value. On the date the derivative contract is entered into, we may designate the derivative as one of the following: a hedge of a forecasted transaction or the variability of cash flows to be paid (“cash flow hedge”), a hedge of the fair value of a recognized asset or liability (“fair value hedge”) or a hedge of our foreign currency exposure (“net investment hedge”). Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge or net investment hedge are recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss) until they are reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings. If we do not specifically designate a derivative as one of the above, changes in the fair value of undesignated derivative instruments are reported in current period earnings. Likewise, the ineffective portion of designated derivative instruments is 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 statements of cash flows. Cash flows from undesignated derivative financial instruments are included as an investing activity in our consolidated statements of cash flows. If we determine that we qualify for and will designate a derivative as a hedging instrument, at the designation date we formally document all relationships between hedging activities, including the risk management objective and strategy for undertaking various hedge transactions. This process includes matching all derivatives that are designated as cash flow hedges to specific forecasted transactions, linking all derivatives designated as fair value hedges to specific assets and liabilities in our consolidated balance sheets and determining the foreign currency exposure of the net investment of the foreign operation for a net investment hedge. On a quarterly basis, we assess the effectiveness of our designated hedges in offsetting the variability in the cash flows or fair values of the hedged assets or obligations using the Hypothetical Derivative 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 discontinue hedge accounting prospectively, when the derivative is not 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 United States dollar (“USD”) is our reporting currency and is the functional currency of our consolidated and unconsolidated entities operating in the U.S. The functional currency for our consolidated and unconsolidated entities operating outside of the U.S. is the currency of the primary economic environment in which the respective entity operates. Assets and liabilities measured in foreign currencies are translated into USD at the prevailing 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 sheets. Income and expense accounts are translated at the average exchange rate for the period. Gains and losses from foreign 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 as gain (loss) on foreign currency transactions in our consolidated statements 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 exchange rate changes are recognized as other comprehensive income (loss) in our consolidated statements of comprehensive income (loss). | |
Insurance | Insurance We are self-insured for losses up to our third-party insurance deductibles for general liability, auto liability and workers’ compensation at our owned, leased and managed properties that participate in our programs. We purchase insurance coverage for claim amounts that exceed our deductible obligations. In addition, through our captive insurance subsidiary, we participate in a reinsurance arrangement that provides coverage for a certain portion of our deductibles. Our insurance reserves are accrued based on our deductibles related to the estimated ultimate cost 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 outside actuaries and consultants. The ultimate cost of claims for a covered period may differ from our original estimates. | |
Share-based Compensation | Share-based Compensation As part of our 2013 Omnibus Incentive Plan (the “Stock Plan”), which was adopted on December 11, 2013, we award time-vesting restricted stock units (“RSUs”), nonqualified stock options (“options”), performance-vesting restricted stock units and restricted stock (collectively, “performance shares”) and deferred share units (“DSUs”) to eligible employees and directors. • RSUs • Options • Performance shares • DSUs We recognize the cost of services received in these share-based payment transactions with employees as services are received and recognize either a corresponding increase in additional paid-in capital or accounts payable, accrued expenses and other in our consolidated balance sheets, depending on whether the instruments granted satisfy the equity or liability classification criteria. The measurement objective for these equity awards is the estimated fair value at the grant date 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. The requisite service period 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 fair value, and the fair value is remeasured at each reporting date until the date of settlement. 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 at the reporting date) in the fair value of the instrument for each reporting period. Compensation expense for awards with performance conditions is recognized over the requisite service period if it is probable that the performance condition will be satisfied. If such performance conditions are not considered probable until they occur, no compensation expense for these awards is recognized. | |
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 enacted tax rates in effect for the year in which the respective temporary differences or operating loss or tax credit carryforwards are expected to be recovered or settled. The realization of deferred tax assets and tax loss and tax credit carryforwards 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 use a prescribed recognition threshold for the financial statement recognition and measurement of a tax position taken in a tax return. 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 the position. 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. | |
ASU 2017-04 Goodwill Impairment | In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04 (“ASU 2017-04”), Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment | In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04 (“ASU 2017-04”), Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
ASU 2016-09 Stock Compensation | In March 2016, the FASB issued ASU No. 2016-09 (“ASU 2016-09”), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. | In March 2016, the FASB issued ASU No. 2016-09 (“ASU 2016-09”), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. |
ASU 2016-15 and ASU 2016-18 Statement of Cash Flows | In August 2016, the FASB issued ASU No. 2016-15 (“ASU 2016-15”), Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments. Statement of Cash Flows (Topic 230) - Restricted Cash | |
ASU 2015-03, ASU 2015-15 Presentation of Debt Issuance Costs | In April 2015, the FASB issued ASU No. 2015-03 (“ASU 2015-03”), Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs. Interest - Imputation of Interest (Subtopic 835-30) - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements | |
ASU 2015-02 Consolidation | In February 2015, the FASB issued ASU No. 2015-02 (“ASU 2015-02”), Consolidation (Topic 810) - Amendments to the Consolidation Analysis | |
ASU 2016-02 Leases | In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) Leases (Topic 840) | In February 2016, the FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) Leases (Topic 840) |
ASU 2014-09 and Related ASUs Revenue Recognition | In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) Revenue Recognition (Topic 605) We anticipate that ASU 2014-09 will have a material effect on our consolidated financial statements. However, we expect revenue recognition related to our accounting for ongoing royalty and management fee revenues, direct reimbursable fees from our management and franchise agreements and hotel guest transactions at our owned and leased hotels to remain substantially unchanged. While we are continuing to assess all other potential effects of the standard, we currently believe the provisions of ASU 2014-09 will affect revenue recognition as follows: (i) application and initiation fees for new hotels entering the system will be recognized over the term of the franchise agreement; (ii) certain contract acquisition costs related to our management and franchise agreements will be recognized over the term of the agreements as a reduction to revenue; and (iii) incentive management fees will be recognized to the extent that it is probable that a significant reversal will not occur as a result of future hotel profits or cash flows. We do not expect the changes in revenue recognition for certain contract acquisition costs or incentive management fees to affect the Company’s net income for any full year period. We are currently assessing the effect of the standard on indirect reimbursable fees related to our management and franchise agreements and the accounting for our guest loyalty program. We continue to update our assessment of the effect that ASU 2014-09 and related ASUs will have on our consolidated financial statements, and we will disclose further material effects, if any, when known. | In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) Revenue Recognition (Topic 605) We anticipate that ASU 2014-09 will have a material effect on our consolidated financial statements. However, we expect revenue recognition related to our accounting for ongoing royalty and management fee revenues, direct reimbursable fees from our management and franchise agreements and hotel guest transactions at our owned and leased hotels to remain substantially unchanged. While we are continuing to assess all other potential effects of the standard, we currently believe the provisions of ASU 2014-09 will affect revenue recognition as follows: (i) application and initiation fees for new hotels entering the system will be recognized over the term of the franchise agreement; (ii) certain contract acquisition costs related to our management and franchise agreements will be recognized over the term of the agreements as a reduction to revenue; and (iii) incentive management fees will be recognized to the extent that it is probable that a significant reversal will not occur as a result of future hotel profits or cash flows. We do not expect the changes in revenue recognition for certain contract acquisition costs or incentive management fees to affect the Company’s net income for any full year period. We are currently assessing the effect of the standard on indirect reimbursable fees related to our management and franchise agreements and the accounting for our guest loyalty program. We continue to update our assessment of the effect that ASU 2014-09 and related ASUs will have on our consolidated financial statements, and we will disclose further material effects, if any, when known. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Discontinued Operations | The following table presents the assets and liabilities of Park and HGV that were included in discontinued operations in our condensed consolidated balance sheet as of December 31, 2016: (in millions) ASSETS Current Assets: Cash and cash equivalents $ 341 Restricted cash and cash equivalents 160 Accounts receivable, net of allowance for doubtful accounts 250 Prepaid expenses 48 Inventories 527 Current portion of financing receivables, net 136 Other 16 Total current assets of discontinued operations (variable interest entities - $92) 1,478 Intangibles and Other Assets: Goodwill 604 Management and franchise contracts, net 56 Other intangible assets, net 60 Property and equipment, net 8,589 Deferred income tax assets 35 Financing receivables, net 895 Investments in affiliates 81 Other 27 Total non-current assets of discontinued operations (variable interest entities - $405) 10,347 TOTAL ASSETS OF DISCONTINUED OPERATIONS $ 11,825 LIABILITIES Current Liabilities: Accounts payable, accrued expenses and other $ 632 Current maturities of long-term debt 65 Current maturities of timeshare debt 73 Income taxes payable 4 Total current liabilities of discontinued operations (variable interest entities - $81) 774 Long-term debt 3,437 Timeshare debt 621 Deferred revenues 22 Deferred income tax liabilities 2,797 Other 17 TOTAL LIABILITIES OF DISCONTINUED OPERATIONS (variable interest entities - $506) $ 7,668 The following table presents the results of operations of Park and HGV that were included in discontinued operations in our condensed consolidated statement of operations for the three months ended March 31, 2016: (in millions) Revenues Franchise fees $ 10 Base and other management fees 7 Owned and leased hotels 648 Timeshare 326 Other revenues 3 Other revenues from managed and franchised properties 30 Total revenues from discontinued operations 1,024 Expenses Owned and leased hotels 449 Timeshare 217 Depreciation and amortization 77 General and administrative 10 Other expenses 2 Other expenses from managed and franchised properties 30 Total expenses from discontinued operations 785 Operating income from discontinued operations 239 Interest expense (49 ) Other non-operating income, net 4 Income from discontinued operations before income taxes 194 Income tax expense (75 ) Income from discontinued operations, net of taxes 119 Income from discontinued operations attributable to noncontrolling interests, net of taxes (2 ) Income from discontinued operations attributable to Hilton stockholders, net of taxes $ 117 The following table presents selected financial information of Park and HGV that was included in our condensed consolidated statement of cash flows for the three months ended March 31, 2016: (in millions) Non-cash items included in net income: Depreciation and amortization $ 77 Investing activities: Capital expenditures for property and equipment $ 68 | The following table presents the assets and liabilities of Park and HGV that were included in discontinued operations in our consolidated balance sheets: December 31, 2016 2015 (in millions) ASSETS Current Assets: Cash and cash equivalents $ 341 $ 76 Restricted cash and cash equivalents 160 147 Accounts receivable, net of allowance for doubtful accounts 250 212 Prepaid expenses 48 35 Inventories 527 430 Current portion of financing receivables, net 136 128 Other 16 16 Total current assets of discontinued operations (variable interest entities - $92 and $79) 1,478 1,044 Intangibles and Other Assets: Goodwill 604 607 Management and franchise contracts, net 56 60 Other intangible assets, net 60 63 Property and equipment, net 8,589 8,708 Deferred income tax assets 35 19 Financing receivables, net 895 848 Investments in affiliates 81 99 Other 27 20 Total non-current assets of discontinued operations (variable interest entities - $405 and $326) 10,347 10,424 TOTAL ASSETS OF DISCONTINUED OPERATIONS $ 11,825 $ 11,468 LIABILITIES Current Liabilities: Accounts payable, accrued expenses and other $ 632 $ 587 Current maturities of long-term debt 65 109 Current maturities of timeshare debt 73 110 Income taxes payable 4 6 Total current liabilities of discontinued operations (variable interest entities - $81 and $113) 774 812 Long-term debt 3,437 3,948 Timeshare debt 621 392 Deferred revenues 22 32 Deferred income tax liabilities 2,797 2,755 Other 17 17 TOTAL LIABILITIES OF DISCONTINUED OPERATIONS (variable interest entities - $506 and $369) $ 7,668 $ 7,956 The following table presents the results of operations of Park and HGV that were included in discontinued operations in our consolidated statements of operations: Year Ended December 31, 2016 2015 2014 (in millions) Revenues Franchise fees $ 38 $ 35 $ 22 Base and other management fees 30 27 24 Owned and leased hotels 2,674 2,637 2,463 Timeshare 1,390 1,308 1,171 Other revenues 13 13 10 Other revenues from managed and franchised properties 136 119 124 Total revenues from discontinued operations 4,281 4,139 3,814 Expenses Owned and leased hotels 1,805 1,754 1,666 Timeshare 948 897 767 Depreciation and amortization 322 307 265 General and administrative 144 10 5 Other expenses 18 24 17 Other expenses from managed and franchised properties 136 119 124 Total expenses from discontinued operations 3,373 3,111 2,844 Gain on sales of assets, net 1 143 — Operating income from discontinued operations 909 1,171 970 Interest expense (193 ) (198 ) (202 ) Gain on foreign currency transactions 3 — — Other non-operating income (loss), net (20 ) (10 ) 46 Income from discontinued operations before income taxes 699 963 814 Income tax expense (327 ) (428 ) (311 ) Income from discontinued operations, net of taxes 372 535 503 Income from discontinued operations attributable to noncontrolling interests, net of taxes (6 ) (7 ) (4 ) Income from discontinued operations attributable to Hilton stockholders, net of taxes $ 366 $ 528 $ 499 The following table presents selected financial information of Park and HGV that was included in our consolidated statements of cash flows: Year Ended December 31, 2016 2015 2014 (in millions) Non-cash items included in net income: Depreciation and amortization $ 322 $ 307 $ 265 Gain on sales of assets, net 1 143 — Investing activities: Capital expenditures for property and equipment $ 255 $ 243 $ 184 Acquisitions, net of cash acquired — (1,402 ) — Proceeds from asset dispositions — 1,866 31 |
Consolidated Variable Interes41
Consolidated Variable Interest Entities (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | ||
Schedule of Variable Interest Entities | Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following: March 31, December 31, (in millions) Cash and cash equivalents $ 55 $ 57 Accounts receivable, net 14 14 Property and equipment, net 55 52 Deferred income tax assets 61 58 Other non-current assets 56 53 Accounts payable, accrued expenses and other 34 33 Long-term debt 222 212 | Our consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following: December 31, 2016 2015 (in millions) Cash and cash equivalents $ 57 $ 44 Accounts receivable, net 14 15 Property and equipment, net 52 44 Deferred income tax assets 58 62 Other non-current assets 53 49 Accounts payable, accrued expenses and other 33 33 Long-term debt 212 208 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Schedule of Goodwill | Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management (2) Total (in millions) Balance as of December 31, 2016 $ 184 $ 5,034 $ 5,218 Spin-offs of Park and HGV (91 ) — (91 ) Foreign currency translation 2 6 8 Balance as of March 31, 2017 $ 95 $ 5,040 $ 5,135 (1) Excludes goodwill of $2,706 million and accumulated impairment losses of $2,102 million that were attributable to Park and included in non-current assets of discontinued operations in the condensed consolidated balance sheet as of December 31, 2016. Total goodwill balances for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: Gross Carrying Accumulated Net Carrying (in millions) Balance as of December 31, 2016 $ 856 $ (672 ) $ 184 Spin-offs of Park and HGV (423 ) 332 (91 ) Foreign currency translation 2 — 2 Balance as of March 31, 2017 $ 435 $ (340 ) $ 95 (2) There were no accumulated impairment losses for the management and franchise reporting unit as of March 31, 2017 and December 31, 2016. | Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management (2) Total (in millions) Balance as of December 31, 2014 $ 231 $ 5,129 $ 5,360 Disposition of a business (3) (36 ) — (36 ) Foreign currency translation (2 ) (42 ) (44 ) Balance as of December 31, 2015 193 5,087 5,280 Foreign currency translation (9 ) (53 ) (62 ) Balance as of December 31, 2016 $ 184 $ 5,034 $ 5,218 (1) Total goodwill balances for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: Gross Accumulated Net (in millions) Balance as of December 31, 2014 $ 1,027 $ (796 ) $ 231 Disposition of a business (160 ) 124 (36 ) Foreign currency translation (2 ) — (2 ) Balance as of December 31, 2015 865 (672 ) 193 Foreign currency translation (9 ) — (9 ) Balance as of December 31, 2016 $ 856 $ (672 ) $ 184 (2) There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2016, 2015 and 2014. (3) Relates to the sale of the Hilton Sydney, see Note 4: “Disposals” for additional information. |
Schedule of Other Intangible Assets | Intangible assets were as follows: March 31, 2017 Gross Accumulated Net Carrying (in millions) Amortizing Intangible Assets: Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,225 $ (1,578 ) $ 647 Contract acquisition costs and other 354 (71 ) 283 $ 2,579 $ (1,649 ) $ 930 Other intangible assets: Leases (1) $ 279 $ (132 ) $ 147 Capitalized software 519 (380 ) 139 Hilton Honors (1) 336 (198 ) 138 Other 38 (31 ) 7 $ 1,172 $ (741 ) $ 431 Non-amortizing Intangible Assets: Brands (1) $ 4,856 $ — $ 4,856 (1) Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone (the “Merger”). December 31, 2016 Gross Accumulated Net Carrying (in millions) Amortizing Intangible Assets: Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,221 $ (1,534 ) $ 687 Contract acquisition costs and other 343 (67 ) 276 $ 2,564 $ (1,601 ) $ 963 Other intangible assets: Leases (1) $ 276 $ (126 ) $ 150 Capitalized software 510 (362 ) 148 Hilton Honors (1) 335 (192 ) 143 Other 37 (31 ) 6 $ 1,158 $ (711 ) $ 447 Non-amortizing Intangible Assets: Brands (1) $ 4,848 $ — $ 4,848 (1) Represents intangible assets that were initially recorded at their fair value as part of the Merger. | Intangible assets were as follows: December 31, 2016 Gross Accumulated Net (in millions) Amortizing Intangible Assets: Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,221 $ (1,534 ) $ 687 Contract acquisition costs and other 343 (67 ) 276 $ 2,564 $ (1,601 ) $ 963 Other intangible assets: Leases (1) $ 276 $ (126 ) $ 150 Capitalized software 510 (362 ) 148 Hilton Honors (1) 335 (192 ) 143 Other 37 (31 ) 6 $ 1,158 $ (711 ) $ 447 Non-amortizing Intangible Assets: Brands (1) $ 4,848 $ — $ 4,848 (1) Represents intangible assets that were initially recorded at their fair value at the time of the Merger. December 31, 2015 Gross Accumulated Net (in millions) Amortizing Intangible Assets: Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,249 $ (1,381 ) $ 868 Contract acquisition costs and other 279 (58 ) 221 $ 2,528 $ (1,439 ) $ 1,089 Other intangible assets: Leases (1) $ 315 $ (127 ) $ 188 Capitalized software 436 (274 ) 162 Hilton Honors (1) 341 (175 ) 166 Other 34 (27 ) 7 $ 1,126 $ (603 ) $ 523 Non-amortizing Intangible Assets: Brands (1) $ 4,919 $ — $ 4,919 (1) Represents intangible assets that were initially recorded at their fair value at the time of the Merger. |
Schedule of Future Amortization Expense of Intangible Assets | We estimate our future amortization expense for our amortizing intangible assets as of March 31, 2017 to be as follows: Year (in millions) 2017(remaining) $ 211 2018 267 2019 248 2020 201 2021 71 Thereafter 363 $ 1,361 | We estimate our future amortization expense for our amortizing intangible assets to be as follows: Year (in millions) 2017 $ 285 2018 267 2019 248 2020 199 2021 73 Thereafter 338 $ 1,410 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment were as follows: December 31, 2016 2015 (in millions) Land $ 12 $ 66 Buildings and leasehold improvements 384 379 Furniture and equipment 357 337 Construction-in-progress 14 13 767 795 Accumulated depreciation (426 ) (384 ) $ 341 $ 411 |
Accounts Payable, Accrued Exp44
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other | Accounts payable, accrued expenses and other were as follows: December 31, 2016 2015 (in millions) Accrued employee compensation and benefits $ 438 $ 351 Accounts payable 314 268 Liability for guest loyalty program, current 543 494 Insurance reserves, current 122 116 Other accrued expenses 404 390 $ 1,821 $ 1,619 |
Debt (Tables)
Debt (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Long-term Debt | Long-term debt balances, including obligations for capital leases, and associated interest rates as of March 31, 2017, were as follows: March 31, December 31, (in millions) Senior notes due 2021 $ — $ 1,500 Senior notes with a rate of 4.250%, due 2024 1,000 1,000 Senior notes with a rate of 4.625%, due 2025 900 — Senior notes with a rate of 4.875%, due 2027 600 — Senior secured term loan facility due 2020 — 750 Senior secured term loan facility with a rate of 2.98%, due 2023 3,959 3,209 Capital lease obligations with an average rate of 6.34%, due 2021 to 2030 237 227 Other debt with an average rate of 2.65%, due 2018 to 2026 22 20 6,718 6,706 Less: unamortized deferred financing costs and discount (89 ) (90 ) Less: current maturities of long-term debt (1) (41 ) (33 ) $ 6,588 $ 6,583 (1) Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. | Long-term debt balances, including obligations for capital leases, and associated interest rates as of December 31, 2016 were as follows: December 31, 2016 2015 (in millions) Senior notes with a rate of 5.625%, due 2021 $ 1,500 $ 1,500 Senior notes with a rate of 4.250%, due 2024 1,000 — Senior secured term loan facility with a rate of 3.50%, due 2020 750 4,225 Senior secured term loan facility with an average rate of 3.26%, due 2023 3,209 — Capital lease obligations with an average rate of 6.34%, due 2018 to 2028 227 227 Other debt with an average rate of 2.65%, due 2018 to 2026 20 20 6,706 5,972 Less: unamortized deferred financing costs and discount (90 ) (78 ) Less: current maturities of long-term debt (1) (33 ) (7 ) $ 6,583 $ 5,887 (1) Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Debt Maturities | The contractual maturities of our long-term debt as of March 31, 2017 were as follows: Year (in millions) 2017(remaining) $ 36 2018 59 2019 55 2020 56 2021 57 Thereafter 6,455 $ 6,718 | The contractual maturities of our long-term debt as of December 31, 2016 were as follows: Year (in millions) 2017 $ 40 2018 50 2019 47 2020 798 2021 1,549 Thereafter 4,222 $ 6,706 |
Deferred Revenues (Tables)
Deferred Revenues (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Schedule of Deferred Revenues | Deferred revenues were as follows: December 31, 2016 2015 (in millions) Hilton Honors points sales $ 29 $ 233 Other 13 18 $ 42 $ 251 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other long-term liabilities were as follows: December 31, 2016 2015 (in millions) Program surplus $ 446 $ 420 Pension obligations 215 183 Other long-term tax liabilities 480 293 Deferred employee compensation and benefits 113 170 Insurance reserves 131 87 Other 107 112 $ 1,492 $ 1,265 |
Derivative Instruments and He48
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair Value of Derivative Instruments | The fair values of our derivative instruments in our condensed consolidated balance sheets were as follows: March 31, 2017 December 31, 2016 Balance Sheet Classification (in millions) Cash Flow Hedges: Interest rate swaps Other liabilities $ 7 N/A Non-designated Hedges: Interest rate swaps Other liabilities — $ 12 Forward contracts Other current assets 1 3 Forward contracts Accounts payable, accrued expenses and other 1 | The fair values of our derivative instruments in our consolidated balance sheets were as follows: December 31, Balance Sheet Classification 2016 2015 (in millions) Cash Flow Hedges: Interest rate swaps Other liabilities N/A $ 15 Non-designated Hedges: Interest rate swaps Other liabilities $ 12 N/A Forward contracts Other current assets 3 1 Forward contracts Accounts payable, accrued expenses and other 4 1 |
Earnings Effect of Derivative Instruments | The gains and losses recognized in our condensed consolidated statements of operations and condensed consolidated statements of comprehensive income before any effect for income taxes were as follows: Three Months Ended March 31, Classification of Gain (Loss) Recognized 2017 2016 (in millions) Cash Flow Hedges: Interest rate swaps (1) Other comprehensive income $ (7 ) $ (10 ) Non-designated Hedges: Interest rate swaps Other non-operating 2 N/A Interest rate swaps (2) Interest expense 3 N/A Forward contracts Loss on foreign currency transactions 1 1 (1) There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three months ended March 31, 2017 and 2016. (2) This amount is related to the dedesignation of the 2013 Interest Rate Swaps as cash flow hedges and was reclassified from accumulated other comprehensive loss as the underlying transactions occurred. | The gains and losses recognized in our consolidated statements of operations and consolidated statements of comprehensive income before any effect for income taxes were as follows: Classification of Gain (Loss) Recognized Year Ended December 31, 2016 2015 2014 (in millions) Cash Flow Hedges: Interest rate swaps (1) Other comprehensive loss $ (7 ) $ (11 ) $ (14 ) Non-designated Hedges: Interest rate swaps Other non-operating income, net 4 N/A N/A Interest rate swaps (2) Interest expense 4 N/A N/A Forward contracts Gain (loss) on foreign currency transactions 7 11 1 (1) There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the years ended December 31, 2016, 2015 and 2014. (2) The amount recognized during the year ended December 31, 2016 is related to the dedesignation of these instruments as cash flow hedges and was reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Fair Value of Financial Assets and Liabilities | The fair value of certain financial instruments and the hierarchy level we used to estimate fair values are shown below: March 31, 2017 Hierarchy Level Carrying Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 580 $ — $ 580 $ — Restricted cash equivalents 12 — 12 — Liabilities: Long-term debt (1) 6,370 2,512 — 3,996 Interest rate swaps 7 — 7 — December 31, 2016 Hierarchy Level Carrying Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 782 $ — $ 782 $ — Restricted cash equivalents 11 — 11 — Liabilities: Long-term debt (1) 6,369 2,516 — 4,006 Interest rate swaps 12 — 12 — (1) Carrying value includes unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. | e did not elect the fair value measurement option for any of our financial assets or liabilities. The fair value of certain financial instruments and the hierarchy level we used to estimate fair values are shown below: December 31, 2016 Carrying Hierarchy Level Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 782 $ — $ 782 $ — Restricted cash equivalents 11 — 11 — Liabilities: Long-term debt (1) 6,369 2,516 — 4,006 Interest rate swaps 12 — 12 — December 31, 2015 Carrying Hierarchy Level Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 287 $ — $ 287 $ — Restricted cash equivalents 18 — 18 — Liabilities: Long-term debt (1) 5,647 1,560 — 4,222 Interest rate swaps 15 — 15 — (1) The carrying value includes unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments | The future minimum rent payments under non-cancelable leases, due in each of the next five years and thereafter as of December 31, 2016, were as follows: Operating Leases Capital Leases Non-Recourse Capital Leases Year (in millions) 2017 $ 175 $ 4 $ 14 2018 157 4 23 2019 147 4 23 2020 142 4 24 2021 133 5 24 Thereafter 863 34 174 Total minimum rent payments $ 1,617 55 282 Less: amount representing interest (19 ) (91 ) Present value of net minimum rent payments $ 36 $ 191 |
Schedule of Rent Expense | Rent expense for all operating leases was as follows: Year Ended December 31, 2016 2015 2014 (in millions) Minimum rentals $ 224 $ 244 $ 247 Contingent rentals 98 104 127 $ 322 $ 348 $ 374 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Our tax provision includes federal, state and foreign income taxes payable. The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2016 2015 2014 (in millions) U.S. income before tax $ 934 $ 262 $ 181 Foreign income (loss) before tax (378 ) 271 152 Income before income taxes $ 556 $ 533 $ 333 |
Schedule of Components of Income Tax Expense (Benefit) | The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2016 2015 2014 (in millions) Current: Federal $ 441 $ 164 $ 118 State 143 51 41 Foreign 70 64 86 Total current 654 279 245 Deferred: Federal (116 ) (606 ) (74 ) State 50 (86 ) (17 ) Foreign (24 ) 65 — Total deferred (90 ) (627 ) (91 ) Total provision (benefit) for income taxes $ 564 $ (348 ) $ 154 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliations of our tax provision at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2016 2015 2014 (in millions) Statutory U.S. federal income tax provision $ 194 $ 187 $ 116 State income taxes, net of U.S. federal tax benefit 23 17 7 Foreign income tax expense 119 108 52 U.S. benefit of foreign taxes (71 ) (106 ) (46 ) Foreign losses not subject to U.S. tax — — (7 ) Nontaxable liquidation of subsidiaries — (628 ) — Corporate restructuring 482 — — Change in deferred tax asset valuation allowance (65 ) 14 8 Change in basis difference in foreign subsidiaries 27 11 13 Provision (benefit) for uncertain tax positions (139 ) 18 5 Non-deductible share-based compensation — 23 11 Non-deductible goodwill — 13 — Other, net (6 ) (5 ) (5 ) Provision (benefit) for income taxes $ 564 $ (348 ) $ 154 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the temporary differences and carryforwards that give rise to our net deferred tax asset (liability) were as follows: December 31, 2016 2015 (in millions) Deferred Tax Assets: Net operating loss carryforwards $ 394 $ 440 Compensation 214 243 Other reserves 15 39 Capital lease obligations 84 90 Insurance reserves 36 50 Program surplus 84 79 Property and equipment 26 172 Investments 12 72 Other 66 84 Total gross deferred tax assets 931 1,269 Less: valuation allowance (507 ) (484 ) Deferred tax assets 424 785 Deferred Tax Liabilities: Brands (1,626 ) (1,867 ) Amortizable intangible assets (305 ) (488 ) Investment in foreign subsidiaries (39 ) (35 ) Deferred income (150 ) (211 ) Deferred tax liabilities (2,120 ) (2,601 ) Net deferred taxes $ (1,696 ) $ (1,816 ) |
Summary of Unrecognized Tax Benefits | . Reconciliations of the beginning and ending amount of unrecognized tax benefits were as follows: Year Ended 2016 2015 2014 (in millions) Balance at beginning of year $ 315 $ 296 $ 323 Additions for tax positions related to the prior year 77 25 32 Additions for tax positions related to the current year 9 8 10 Reductions for tax positions for prior years (204 ) (4 ) (63 ) Settlements (21 ) (4 ) (1 ) Lapse of statute of limitations (2 ) (2 ) (2 ) Currency translation adjustment — (4 ) (3 ) Balance at end of year $ 174 $ 315 $ 296 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The following table presents the projected benefit obligation, the fair value of plan assets, the funded status and the accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2016 2015 2016 2015 2016 2015 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 394 $ 425 $ 391 $ 415 $ 82 $ 115 Service cost — — 2 1 2 2 Interest cost 13 16 12 15 2 2 Actuarial loss (gain) 1 (8 ) 87 (5 ) 2 (1 ) Settlements and curtailments (2 ) (14 ) — — (1 ) (4 ) Effect of foreign exchange rates — — (74 ) (19 ) (1 ) (4 ) Benefits paid (25 ) (25 ) (14 ) (16 ) (5 ) (28 ) Benefit obligation at end of year $ 381 $ 394 $ 404 $ 391 $ 81 $ 82 Change in Plan Assets: Fair value of plan assets at beginning of year $ 265 $ 283 $ 368 $ 390 $ 60 $ 85 Actual return on plan assets, net of expenses 11 (11 ) 42 (1 ) 1 — Employer contributions 18 32 5 13 3 8 Effect of foreign exchange rates — — (65 ) (18 ) — (1 ) Benefits paid (25 ) (25 ) (14 ) (16 ) (5 ) (28 ) Settlements (2 ) (14 ) — — (1 ) (4 ) Fair value of plan assets at end of year 267 265 336 368 58 60 Funded status at end of year (underfunded) (114 ) (129 ) (68 ) (23 ) (23 ) (22 ) Accumulated benefit obligation $ 381 $ 394 $ 404 $ 391 $ 81 $ 82 |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets consisted of: Domestic Plan U.K. Plan International Plans 2016 2015 2016 2015 2016 2015 (in millions) Other non-current assets $ 4 $ 2 $ — $ — $ 6 $ 7 Other liabilities (118 ) (131 ) (68 ) (23 ) (29 ) (29 ) Net amount recognized $ (114 ) $ (129 ) $ (68 ) $ (23 ) $ (23 ) $ (22 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss consisted of: Domestic Plan U.K. Plan International Plans 2016 2015 2014 2016 2015 2014 2016 2015 2014 (in millions) Net actuarial loss $ — $ 15 $ 42 $ 41 $ 16 $ 33 $ 3 $ 1 $ 10 Prior service credit (3 ) (4 ) (4 ) — — — — — — Amortization of net gain (3 ) (3 ) (7 ) (2 ) (2 ) (1 ) (1 ) (9 ) (1 ) Net amount recognized $ (6 ) $ 8 $ 31 $ 39 $ 14 $ 32 $ 2 $ (8 ) $ 9 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The estimated unrecognized net losses and prior service cost that will be amortized into net periodic pension cost over the fiscal year following the indicated year were as follows: Domestic Plan U.K. Plan International Plans 2016 2015 2014 2016 2015 2014 2016 2015 2014 (in millions) Unrecognized net losses $ 2 $ 2 $ 3 $ 4 $ 2 $ 2 $ — $ — $ 1 Unrecognized prior service cost 4 4 4 — — — — — — Amount unrecognized $ 6 $ 6 $ 7 $ 4 $ 2 $ 2 $ — $ — $ 1 |
Schedule of Net Periodic Pension Cost (Credit) | The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2016 2015 2014 2016 2015 2014 2016 2015 2014 (in millions) Service cost $ 8 $ 7 $ 7 $ 2 $ 2 $ 1 $ 3 $ 3 $ 2 Interest cost 13 16 17 12 15 17 2 2 4 Expected return on plan assets (19 ) (19 ) (18 ) (22 ) (25 ) (24 ) (3 ) (4 ) (4 ) Amortization of prior service cost 4 4 4 — — — — — — Amortization of net loss 3 3 1 2 2 1 — — 1 Settlement losses — — 5 — — — — 10 1 Net periodic pension cost (credit) $ 9 $ 11 $ 16 $ (6 ) $ (6 ) $ (5 ) $ 2 $ 11 $ 4 |
Schedule of Assumptions Used | The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2016 2015 2016 2015 2016 2015 Discount rate 4.0 % 4.3 % 2.8 % 3.9 % 3.1 % 3.5 % Salary inflation N/A N/A 1.9 1.7 2.1 2.1 Pension inflation N/A N/A 3.1 2.8 1.7 1.6 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2016 2015 2014 2016 2015 2014 2016 2015 2014 Discount rate 4.2 % 3.9 % 4.7 % 3.9 % 3.8 % 4.7 % 3.5 % 3.3 % 4.3 % Expected return on plan assets 7.3 7.5 7.5 6.5 6.5 6.5 5.4 5.1 6.0 Salary inflation N/A N/A N/A 1.7 1.6 1.9 2.1 2.2 2.3 Pension inflation N/A N/A N/A 2.8 2.8 3.0 1.6 1.8 1.9 |
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. The fair values of Level 2 assets were based on available market pricing information of similar financial instruments. There were no Level 3 assets as of December 31, 2016 and 2015. December 31, 2016 Domestic Plan U.K. Plan International Plans Level 1 Level 2 Level 1 Level 2 Level 1 Level 2 (in millions) Cash and cash equivalents $ — $ — $ — $ — $ 10 $ — Equity funds 25 — — — 3 6 Debt securities 1 62 — — — — Bond funds — — — — — 6 Common collective trusts — 139 — 336 — 33 Other — 40 — — — — Total $ 26 $ 241 $ — $ 336 $ 13 $ 45 December 31, 2015 Domestic Plan U.K. Plan International Plans Level 1 Level 2 Level 1 Level 2 Level 1 Level 2 (in millions) Cash and cash equivalents $ — $ — $ — $ — $ 10 $ — Equity funds 64 — — — 4 7 Debt securities 2 71 — — — — Bond funds — — — — — 7 Common collective trusts — 128 — 368 — 32 Total $ 66 $ 199 $ — $ 368 $ 14 $ 46 |
Schedule of Expected Benefit Payments | As of December 31, 2016, 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 International Plans Year (in millions) 2017 $ 30 $ 13 $ 9 2018 27 13 5 2019 26 13 5 2020 26 14 5 2021 26 14 5 2022-2026 124 73 24 $ 259 $ 140 $ 53 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Schedule of Additional Information on Restricted Stock Units | The following table provides information about our RSU grants for the last three fiscal years: Year Ended December 31, 2016 2015 2014 Number of shares granted 1,169,238 679,546 1,883,454 Weighted average grant date fair value per share $ 59.73 $ 82.38 $ 64.59 Fair value of shares vested (in millions) (1) $ 40 $ 90 $ — (1) The fair value of shares vested during the year ended December 31, 2014 was less than $1 million. | |
Schedule of Restricted Stock Units Activity | The following table summarizes the activity of our RSUs during the three months ended March 31, 2017: Number of Weighted Outstanding as of December 31, 2016 1,624,541 $ 65.24 Conversion from performance shares upon completion of the spin-offs (1) 671,604 72.42 Effect of the spin-offs 439,113 57.60 Granted 1,313,783 58.02 Vested (876,145 ) 47.19 Forfeited (47,971 ) 47.97 Outstanding as of March 31, 2017 (2) 3,124,925 52.01 (1) Represents all performance shares outstanding as of December 31, 2016. (2) The weighted average grant date fair value was adjusted to reflect the Conversion Factor. | The following table summarizes the activity of our RSUs during the year ended December 31, 2016: Number of Weighted Average Outstanding as of December 31, 2015 1,246,084 $ 73.44 Granted 1,169,238 59.73 Vested (683,262 ) 70.50 Forfeited (107,519 ) 66.90 Outstanding as of December 31, 2016 1,624,541 65.24 |
Schedule of Additional Information on Stock Options | The following table provides information about our option grants for the last three fiscal years: Year Ended December 31, 2016 2015 2014 Number of options granted 503,150 309,528 334,530 Weighted average exercise price per share $ 58.83 $ 82.38 $ 64.59 Weighted average grant date fair value per share $ 16.41 $ 25.17 $ 22.74 | |
Schedule of Stock Options Valuation Assumptions | The grant date fair value of the options granted during the three months ended March 31, 2017 was $13.86, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility (1) 24.00 % Dividend yield (2) 1.03 % Risk-free rate (3) 2.03 % Expected term (in years) (4) 6.0 (1) Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) Estimated based on the expected annualized dividend payment at the date of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. | The grant date fair value of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2016 2015 2014 Expected volatility (1) 32.00 % 28.00 % 33.00 % Dividend yield (2) 1.43 % — % — % Risk-free rate (3) 1.36 % 1.67 % 1.85 % Expected term (in years) (4) 6.0 6.0 6.0 (1) Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) Estimated based on the expected annualized dividend payment at the date of grant. For the 2014 and 2015 options, we had no plans to pay dividends during the expected term at the time of grant. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. |
Schedule of Stock Options Activity | The following table summarizes the activity of our options during the three months ended March 31, 2017: Number of Weighted Outstanding as of December 31, 2016 1,076,031 $ 66.83 Effect of the spin-offs 251,145 57.60 Granted 710,967 58.02 Exercised (10,681 ) 45.35 Forfeited, canceled or expired (2,146 ) 57.99 Outstanding as of March 31, 2017 (1) 2,025,316 50.89 Exercisable as of March 31, 2017 (1) 793,005 48.23 (1) The weighted average exercise price was adjusted to reflect the Conversion Factor. | The following table summarizes the activity of our options during the year ended December 31, 2016: Number of Weighted Average Outstanding as of December 31, 2015 616,832 $ 73.47 Granted 503,150 58.83 Exercised (5,724 ) 64.59 Forfeited, canceled or expired (38,227 ) 69.03 Outstanding as of December 31, 2016 1,076,031 66.83 Exercisable as of December 31, 2016 293,517 70.57 |
Schedule of Additional Information on Performance Shares | The following table provides information about our performance share grants for the last three fiscal years: Year Ended December 31, 2016 2015 2014 Relative Shareholder Return: Number of shares granted 300,784 204,523 176,661 Weighted average grant date fair value per share $ 62.43 $ 98.94 $ 70.68 Fair value of shares vested (in millions) $ 16 $ — $ — EBITDA CAGR: Number of shares granted 300,784 204,523 176,661 Weighted average grant date fair value per share $ 58.83 $ 82.38 $ 64.59 Fair value of shares vested (in millions) $ 12 $ — $ — | |
Schedule of Performance Shares Valuation Assumptions | The grant date fair value of each of the performance shares based on relative shareholder return was determined using a Monte Carlo simulation valuation model with the following assumptions: Year Ended December 31, 2016 2015 2014 Expected volatility (1) 31.00 % 24.00 % 30.00 % Dividend yield (2) — % — % — % Risk-free rate (3) 0.92 % 1.04 % 0.70 % Expected term (in years) (4) 2.8 2.8 2.8 (1) Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) As dividends are assumed to be reinvested in shares of common stock and dividends will not be paid to the participants of the performance shares unless the shares vest, we utilized a dividend yield of zero percent. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Midpoint of the 30-calendar day period preceding the end of the performance period. | |
Schedule of Performance Shares Activity | The following table summarizes the activity of our performance shares during the year ended December 31, 2016: Relative Shareholder Return EBITDA CAGR Number of Weighted Average Number of Weighted Average Outstanding as of December 31, 2015 366,361 $ 86.37 366,361 $ 74.49 Granted 300,784 62.43 300,784 58.83 Vested (152,835 ) 70.68 (152,835 ) 64.59 Forfeited or canceled (178,508 ) 77.58 (178,508 ) 68.61 Outstanding as of December 31, 2016 335,802 76.74 335,802 68.09 | |
Schedule of Performance Shares Activity | The following table summarizes the activity of our performance shares during the three months ended March 31, 2017: EBITDA CAGR FCF CAGR Number of Weighted Number of Weighted Outstanding as of December 31, 2016 335,802 $ 68.09 — N/A Conversion to RSUs upon completion of the spin-offs (335,802 ) 68.09 — N/A Granted 169,843 58.02 169,812 $ 58.02 Outstanding as of March 31, 2017 169,843 58.02 169,812 58.02 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share (“EPS”). All share and per share amounts have been adjusted to reflect the Reverse Stock Split. See Note 1: “Organization and Basis of Presentation” for additional information. Three Months Ended March 31, 2017 2016 (in millions, Basic EPS: Numerator: Net income from continuing operations attributable to Hilton stockholders $ 74 $ 192 Denominator: Weighted average shares outstanding 330 329 Basic EPS $ 0.22 $ 0.58 Diluted EPS: Numerator: Net income from continuing operations attributable to Hilton stockholders $ 74 $ 192 Denominator: Weighted average shares outstanding 331 330 Diluted EPS $ 0.22 $ 0.58 | The following table presents the calculation of basic and diluted earnings (loss) per share. All share and per share amounts have been adjusted to reflect the Reverse Stock Split. See Note 1: “Organization” for further additional information. Year Ended December 31, 2016 2015 2014 (in millions, except per share Basic earnings (loss) per share: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ (18 ) $ 876 $ 174 Denominator: Weighted average shares outstanding 329 329 328 Basic earnings (loss) per share $ (0.05 ) $ 2.67 $ 0.53 Diluted earnings (loss) per share: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ (18 ) $ 876 $ 174 Denominator: Weighted average shares outstanding 329 330 329 Diluted earnings (loss) per share $ (0.05 ) $ 2.66 $ 0.53 |
Stockholders' Equity and Accu55
Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | ||
Schedule of Accumulated Other Comprehensive Loss | The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows: Currency (1) Pension (2) Cash Flow (3) Total (in millions) Balance as of December 31, 2016 $ (738 ) $ (251 ) $ (12 ) $ (1,001 ) Other comprehensive income (loss) before reclassifications 21 (1 ) (4 ) 16 Amounts reclassified from accumulated other comprehensive loss — 2 2 4 Net current period other comprehensive income (loss) 21 1 (2 ) 20 Spin-offs of Park and HGV 63 — — 63 Balance as of March 31, 2017 $ (654 ) $ (250 ) $ (14 ) $ (918 ) (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. (2) Amounts reclassified include the amortization of prior service cost and net loss that were included in our computation of net periodic pension cost. They were recognized in general and administrative expenses, net of a $1 million tax benefit, in our condensed consolidated statement of operations. (3) Amounts reclassified related to the 2013 Interest Rate Swaps and were recognized in interest expense, net of a $1 million tax benefit, in our condensed consolidated statement of operations. Currency (1) Pension (2) Cash Flow Total (in millions) Balance as of December 31, 2015 $ (580 ) $ (194 ) $ (10 ) $ (784 ) Other comprehensive income (loss) before reclassifications 15 — (6 ) 9 Amounts reclassified from accumulated other comprehensive loss — 1 — 1 Net current period other comprehensive income (loss) 15 1 (6 ) 10 Balance as of March 31, 2016 $ (565 ) $ (193 ) $ (16 ) $ (774 ) (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. (2) Amounts reclassified were recognized in general and administrative expenses, net of a $1 million tax benefit, in our condensed consolidated statement of operations. | The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency (1) Pension Cash Flow Total (in millions) Balance as of December 31, 2013 $ (136 ) $ (134 ) $ 6 $ (264 ) Other comprehensive loss before reclassifications (299 ) (49 ) (9 ) (357 ) Amounts reclassified from accumulated other comprehensive loss (5 ) 4 — (1 ) Net current period other comprehensive loss (304 ) (45 ) (9 ) (358 ) Equity contribution to consolidated variable interest entities (6 ) — — (6 ) Balance as of December 31, 2014 (446 ) (179 ) (3 ) (628 ) Other comprehensive loss before reclassifications (150 ) (21 ) (7 ) (178 ) Amounts reclassified from accumulated other comprehensive loss 16 6 — 22 Net current period other comprehensive loss (134 ) (15 ) (7 ) (156 ) Balance as of December 31, 2015 (580 ) (194 ) (10 ) (784 ) Other comprehensive loss before reclassifications (157 ) (63 ) (5 ) (225 ) Amounts reclassified from accumulated other comprehensive loss (1 ) 6 3 8 Net current period other comprehensive loss (158 ) (57 ) (2 ) (217 ) Balance as of December 31, 2016 $ (738 ) $ (251 ) $ (12 ) $ (1,001 ) (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Schedule of Stockholders' Equity | The changes in the components of stockholders’ equity were as follows: Equity Attributable to Hilton Stockholders Common Stock (1) Treasury Additional (1) Accumulated Accumulated Other Comprehensive Loss Noncontrolling Interests (2) Total Shares Amount (in millions) Balance as of December 31, 2016 329 $ 3 $ — $ 10,220 $ (3,323 ) $ (1,001 ) $ (50 ) $ 5,849 Share-based compensation 2 — — (7 ) — — — (7 ) Repurchases of common stock (1 ) — (70 ) — — — — (70 ) Net income — — — — 74 — 1 75 Other comprehensive income (loss) — — — — — 20 (1 ) 19 Dividends — — — — (50 ) — — (50 ) Spin-offs of Park and HGV — — — — (4,331 ) 63 49 (4,219 ) Cumulative effect of the adoption of ASU 2016-09 — — — 1 (1 ) — — — Distributions — — — — — — (1 ) (1 ) Balance as of March 31, 2017 330 $ 3 $ (70 ) $ 10,214 $ (7,631 ) $ (918 ) $ (2 ) $ 1,596 Equity Attributable to Hilton Stockholders Common Stock (1) Additional (1) Accumulated Accumulated Other Comprehensive Loss Noncontrolling Interests (2) Total Shares Amount (in millions) Balance as of December 31, 2015 329 $ 3 $ 10,158 $ (3,392 ) $ (784 ) $ (34 ) $ 5,951 Share-based compensation — — 2 — — — 2 Net income — — — 309 — 1 310 Other comprehensive income (loss) — — — — 10 (2 ) 8 Dividends — — — (69 ) — — (69 ) Cumulative effect of the adoption of ASU 2015-02 — — — — — 5 5 Distributions — — — — — (2 ) (2 ) Balance as of March 31, 2016 329 $ 3 $ 10,160 $ (3,152 ) $ (774 ) $ (32 ) $ 6,205 (1) Adjusted to reflect the Reverse Stock Split. See Note 1: “Organization and Basis of Presentation” for additional information. (2) Other comprehensive loss attributable to non-controlling interests was related to a currency translation adjustment. |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassification Out of Accumulated Other Comprehensive Loss | The following table presents additional information about reclassifications out of accumulated other comprehensive loss (amounts in parentheses indicate a loss in our consolidated statement of operations): Year Ended 2016 2015 2014 (in millions) Currency translation adjustment: Sale and liquidation of foreign assets (1) $ — $ (25 ) $ 3 Gains on net investment hedges (2) 1 — 2 Tax benefit (3)(4) — 9 — Total currency translation adjustment reclassifications for the period, net of tax 1 (16 ) 5 Pension liability adjustment: Amortization of prior service cost (5) (4 ) (4 ) (4 ) Amortization of net loss (5) (5 ) (5 ) (3 ) Tax expense (3) 3 3 3 Total pension liability adjustment reclassifications for the period, net of tax (6 ) (6 ) (4 ) Cash flow hedge adjustment: Dedesignation of interest rate swaps (6) (4 ) — — Tax benefit (3) 1 — — Total cash flow hedge adjustment reclassifications for the period, net of tax (3 ) — — Total reclassifications for the period, net of tax $ (8 ) $ (22 ) $ 1 (1) Reclassified out of accumulated other comprehensive loss to gain on sales of assets, net for the year ended December 31, 2015 and other non-operating income, net for the year ended December 31, 2014 in our consolidated statements of operations. (2) Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. (3) Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (4) The tax benefit was less than $1 million for the years ended December 31, 2016 and 2014. (5) Reclassified out of accumulated other comprehensive loss to general and administrative expenses in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost. See Note 16: “Employee Benefit Plans” for additional information. (6) Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statement of operations. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||
Reconciliation of Revenue from Segment Amounts to Consolidated Amounts | The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Three Months Ended March 31, 2017 2016 (in millions) Management and franchise (1) $ 436 $ 357 Ownership 300 319 Segment revenues 736 676 Other revenues 37 17 Other revenues from managed and franchised properties 1,395 1,041 Intersegment fees elimination (1) (7 ) (8 ) Total revenues $ 2,161 $ 1,726 (1) Includes management, royalty and intellectual property fees charged to our ownership segment, which were eliminated in our condensed consolidated financial statements. | The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2016 2015 2014 (in millions) Management and franchise (1) $ 1,580 $ 1,496 $ 1,302 Ownership 1,452 1,596 1,776 Segment revenues 3,032 3,092 3,078 Other revenues 82 71 80 Other revenues from managed and franchised properties 4,310 4,011 3,567 Intersegment fees elimination (1) (42 ) (41 ) (37 ) Total revenues $ 7,382 $ 7,133 $ 6,688 (1) Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated financial statements. |
Reconciliation of Segment Operating Income to Income from Continuing Operations before Income Taxes | The following table presents operating income for our reportable segments, reconciled to consolidated income from continuing operations before income taxes: Three Months Ended March 31, 2017 2016 (in millions) Management and franchise (1) $ 436 $ 357 Ownership (1) 21 4 Segment operating income 457 361 Other revenues, less other expenses 14 (1 ) Depreciation and amortization (89 ) (92 ) Impairment loss — (15 ) General and administrative (105 ) (83 ) Operating income 277 170 Interest expense (104 ) (90 ) Loss on foreign currency transactions (4 ) (12 ) Loss on debt extinguishment (60 ) — Other non-operating income, net 1 2 Income from continuing operations before income taxes $ 110 $ 70 (1) Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated financial statements. | The following table presents operating income for our reportable segments, reconciled to consolidated income from continuing operations before income taxes: Year Ended December 31, 2016 2015 2014 (in millions) Management and franchise (1) $ 1,580 $ 1,496 $ 1,302 Ownership (1) 115 141 153 Segment operating income 1,695 1,637 1,455 Other revenues, less other expenses 31 31 22 Depreciation and amortization (364 ) (385 ) (363 ) Impairment loss (15 ) (9 ) — General and administrative (403 ) (537 ) (411 ) Gain on sales of assets, net 8 163 — Operating income 952 900 703 Interest expense (394 ) (377 ) (416 ) Gain (loss) on foreign currency transactions (16 ) (41 ) 26 Other non-operating income, net 14 51 20 Income from continuing operations before income taxes $ 556 $ 533 $ 333 (1) Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated financial statements. |
Schedule of Assets by Segment | The following table presents total assets for our reportable segments, reconciled to consolidated assets of continuing operations: March 31, December 31, 2017 2016 (in millions) Management and franchise $ 10,806 $ 10,825 Ownership 945 1,032 Corporate and other 2,536 2,529 $ 14,287 $ 14,386 | The following table presents total assets for our reportable segments, reconciled to consolidated amounts of continuing operations: December 31, 2016 2015 (in millions) Management and franchise $ 10,825 $ 11,078 Ownership 1,032 1,116 Corporate and other 2,529 1,960 $ 14,386 $ 14,154 |
Schedule of Capital Expenditures by Segment | The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated capital expenditures of continuing operations: Three Months Ended 2017 2016 (in millions) Ownership $ 6 $ 13 Corporate and other 3 3 $ 9 $ 16 | The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated capital expenditures of continuing operations: Year Ended December 31, 2016 2015 2014 (in millions) Ownership $ 45 $ 52 $ 76 Corporate and other 17 15 8 $ 62 $ 67 $ 84 |
Revenue from External Customers by Geographic Areas | Total revenues by country were as follows: Year Ended December 31, 2016 2015 2014 (in millions) U.S. $ 5,315 $ 4,935 $ 4,355 United Kingdom 955 1,017 874 All other 1,112 1,181 1,459 $ 7,382 $ 7,133 $ 6,688 | |
Property and Equipment, Net by Country | Property and equipment, net by country was as follows: December 31, 2016 2015 (in millions) U.S. $ 92 $ 141 Japan 87 76 United Kingdom 79 100 Germany 35 37 All other 48 57 $ 341 $ 411 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Equity Investments We hold equity investments in entities that own or lease properties that we manage. The following tables summarize amounts included in our consolidated financial statements related to these management agreements: December 31, 2016 2015 (in millions) Balance Sheets Assets: Accounts receivable, net $ 4 $ 8 Management and franchise contracts, net 20 20 Liabilities: Accounts payable, accrued expenses and other 1 2 Year Ended December 31, 2016 2015 2014 (in millions) Statements of Operations Revenues: Franchise fees $ 1 $ 1 $ 1 Base and other management fees 8 6 6 Incentive management fees 4 2 1 Other revenues from managed and franchised properties 21 31 32 Expenses: Other expenses from managed and franchised properties 21 31 32 Statements of Cash Flows Investing Activities: Contract acquisition costs — 4 — The Blackstone Group Blackstone directly and indirectly owns or controls hotels that we manage or franchise and for which we receive fees in connection with the management and franchise agreements. Our maximum exposure to loss related to these hotels is limited to the amounts discussed below; therefore, our involvement with these hotels does not expose us to additional variability or risk of loss. The following tables summarize amounts included in our consolidated financial statements related to these management and franchise agreements: December 31, 2016 2015 (in millions) Balance Sheets Assets: Accounts receivable, net $ 18 $ 21 Management and franchise contracts, net 13 16 Liabilities: Accounts payable, accrued expenses and other 8 9 Year Ended 2016 2015 2014 (in millions) Statements of Operations Revenues: Franchise fees $ 29 $ 34 $ 33 Base and other management fees 10 11 23 Incentive management fees 3 3 4 Other revenues from managed and franchised properties 144 160 293 Expenses: Depreciation and amortization 1 — — Other expenses from managed and franchised properties 144 160 293 Statements of Cash Flows Investing Activities: Contract acquisition costs — — 7 |
Condensed Consolidating Guara59
Condensed Consolidating Guarantor Financial Information (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | ||
Condensed Balance Sheet | The following schedules present the condensed consolidating financial information as of March 31, 2017 and December 31, 2016, and for the three months ended March 31, 2017 and 2016, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. March 31, 2017 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 11 $ 848 $ — $ 862 Restricted cash and cash equivalents — — 87 10 27 — 124 Accounts receivable, net — — 11 644 256 — 911 Intercompany receivables — — — — 40 (40 ) — Prepaid expenses — — 8 48 74 (1 ) 129 Other — — 1 5 37 — 43 Total current assets — — 110 718 1,282 (41 ) 2,069 Intangibles and Other Assets: Investments in subsidiaries 1,588 6,975 8,127 1,588 — (18,278 ) — Goodwill — — — 3,824 1,311 — 5,135 Brands — — — 4,405 451 — 4,856 Management and franchise contracts, net — — — 683 247 — 930 Other intangible assets, net — — 1 282 148 — 431 Property and equipment, net — — 11 61 269 — 341 Deferred income tax assets 10 4 174 — 82 (188 ) 82 Other — 11 31 235 166 — 443 Total intangibles and other assets 1,598 6,990 8,344 11,078 2,674 (18,466 ) 12,218 TOTAL ASSETS $ 1,598 $ 6,990 $ 8,454 $ 11,796 $ 3,956 $ (18,507 ) $ 14,287 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 6 $ 176 $ 1,195 $ 422 $ (1 ) $ 1,798 Intercompany payables — — 40 — — (40 ) — Current maturities of long-term debt — 32 — — 9 — 41 Income taxes payable — — — 49 79 — 128 Total current liabilities — 38 216 1,244 510 (41 ) 1,967 Long-term debt — 5,357 982 — 249 — 6,588 Deferred revenues — — — 22 — — 22 Deferred income tax liabilities — — — 1,884 27 (188 ) 1,723 Liability for guest loyalty program — — — 898 — — 898 Other — 7 281 499 706 — 1,493 Total liabilities — 5,402 1,479 4,547 1,492 (229 ) 12,691 Equity: Total Hilton stockholders’ equity 1,598 1,588 6,975 7,249 2,466 (18,278 ) 1,598 Noncontrolling interests — — — — (2 ) — (2 ) Total equity 1,598 1,588 6,975 7,249 2,464 (18,278 ) 1,596 TOTAL LIABILITIES AND EQUITY $ 1,598 $ 6,990 $ 8,454 $ 11,796 $ 3,956 $ (18,507 ) $ 14,287 December 31, 2016 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 22 $ 1,037 $ — $ 1,062 Restricted cash and cash equivalents — — 87 9 25 — 121 Accounts receivable, net — — 7 484 264 — 755 Intercompany receivables — — — — 42 (42 ) — Prepaid expenses — — 6 21 65 (3 ) 89 Income taxes receivable — — — 30 — (17 ) 13 Other — — 1 5 33 — 39 Current assets of discontinued operations — — — — 1,502 (24 ) 1,478 Total current assets — — 104 571 2,968 (86 ) 3,557 Intangibles and Other Assets: Investments in subsidiaries 5,889 11,300 12,583 5,889 — (35,661 ) — Goodwill — — — 3,824 1,394 — 5,218 Brands — — — 4,404 444 — 4,848 Management and franchise contracts, net — — — 716 247 — 963 Other intangible assets, net — — 1 296 150 — 447 Property and equipment, net — — 12 62 267 — 341 Deferred income tax assets 10 2 167 — 82 (179 ) 82 Other — 12 30 213 153 — 408 Non-current assets of discontinued operations — — — 12 10,345 (10 ) 10,347 Total intangibles and other assets 5,899 11,314 12,793 15,416 13,082 (35,850 ) 22,654 TOTAL ASSETS $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 26 $ 293 $ 1,091 $ 414 $ (3 ) $ 1,821 Intercompany payables — — 42 — — (42 ) — Current maturities of long-term debt — 26 — — 7 — 33 Income taxes payable — — — — 73 (17 ) 56 Current liabilities of discontinued operations — — — 77 721 (24 ) 774 Total current liabilities — 52 335 1,168 1,215 (86 ) 2,684 Long-term debt — 5,361 981 — 241 — 6,583 Deferred revenues — — — 42 — — 42 Deferred income tax liabilities — — — 1,919 38 (179 ) 1,778 Liability for guest loyalty program — — — 889 — — 889 Other — 12 277 490 713 — 1,492 Non-current liabilities of discontinued operations — — 4 — 6,900 (10 ) 6,894 Total liabilities — 5,425 1,597 4,508 9,107 (275 ) 20,362 Equity: Total Hilton stockholders’ equity 5,899 5,889 11,300 11,479 6,993 (35,661 ) 5,899 Noncontrolling interests — — — — (50 ) — (50 ) Total equity 5,899 5,889 11,300 11,479 6,943 (35,661 ) 5,849 TOTAL LIABILITIES AND EQUITY $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 | December 31, 2016 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 22 $ 1,037 $ — $ 1,062 Restricted cash and cash equivalents — — 87 9 25 — 121 Accounts receivable, net — — 7 484 264 — 755 Intercompany receivables — — — — 42 (42 ) — Prepaid expenses — — 6 21 65 (3 ) 89 Income taxes receivable — — — 30 — (17 ) 13 Other — — 1 5 33 — 39 Current assets of discontinued operations — — — — 1,502 (24 ) 1,478 Total current assets — — 104 571 2,968 (86 ) 3,557 Intangibles and Other Assets: Investments in subsidiaries 5,889 11,300 12,583 5,889 — (35,661 ) — Goodwill — — — 3,824 1,394 — 5,218 Brands — — — 4,404 444 — 4,848 Management and franchise contracts, net — — — 716 247 — 963 Other intangible assets, net — — 1 296 150 — 447 Property and equipment, net — — 12 62 267 — 341 Deferred income tax assets 10 2 167 — 82 (179 ) 82 Other — 12 30 213 153 — 408 Non-current assets of discontinued operations — — — 12 10,345 (10 ) 10,347 Total intangibles and other assets 5,899 11,314 12,793 15,416 13,082 (35,850 ) 22,654 TOTAL ASSETS $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 26 $ 293 $ 1,091 $ 414 $ (3 ) $ 1,821 Intercompany payables — — 42 — — (42 ) — Current maturities of long-term debt — 26 — — 7 — 33 Income taxes payable — — — — 73 (17 ) 56 Current liabilities of discontinued operations — — — 77 721 (24 ) 774 Total current liabilities — 52 335 1,168 1,215 (86 ) 2,684 Long-term debt — 5,361 981 — 241 — 6,583 Deferred revenues — — — 42 — — 42 Deferred income tax liabilities — — — 1,919 38 (179 ) 1,778 Liability for guest loyalty program — — — 889 — — 889 Other — 12 277 490 713 — 1,492 Non-current liabilities of discontinued operations — — 4 — 6,900 (10 ) 6,894 Total liabilities — 5,425 1,597 4,508 9,107 (275 ) 20,362 Equity: Total Hilton stockholders’ equity 5,899 5,889 11,300 11,479 6,993 (35,661 ) 5,899 Noncontrolling interests — — — — (50 ) — (50 ) Total equity 5,899 5,889 11,300 11,479 6,943 (35,661 ) 5,849 TOTAL LIABILITIES AND EQUITY $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 December 31, 2015 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 18 $ 495 $ — $ 513 Restricted cash and cash equivalents — — 91 29 — 120 Accounts receivable, net — — 406 258 — 664 Prepaid expenses — — 36 79 (3 ) 112 Income taxes receivable — — 120 — (23 ) 97 Other — — 3 32 — 35 Current assets of discontinued operations — — — 1,070 (26 ) 1,044 Total current assets — — 674 1,963 (52 ) 2,585 Intangibles and Other Assets: Investments in subsidiaries 6,166 11,854 6,457 — (24,477 ) — Goodwill — — 3,824 1,456 — 5,280 Brands — — 4,405 514 — 4,919 Management and franchise contracts, net — — 818 271 — 1,089 Other intangible assets, net — — 334 189 — 523 Property and equipment, net — — 73 338 — 411 Deferred income tax assets 24 3 — 59 (27 ) 59 Other — 9 200 123 — 332 Non-current assets of discontinued operations — — 28 10,396 — 10,424 Total intangibles and other assets 6,190 11,866 16,139 13,346 (24,504 ) 23,037 TOTAL ASSETS $ 6,190 $ 11,866 $ 16,813 $ 15,309 $ (24,556 ) $ 25,622 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 39 $ 1,168 $ 415 $ (3 ) $ 1,619 Current maturities of long-term debt — — — 7 — 7 Income taxes payable — — — 50 (23 ) 27 Current liabilities of discontinued operations — — 71 767 (26 ) 812 Total current liabilities — 39 1,239 1,239 (52 ) 2,465 Long-term debt — 5,647 — 240 — 5,887 Deferred revenues — — 251 — — 251 Deferred income tax liabilities — — 1,813 89 (27 ) 1,875 Liability for guest loyalty program — — 784 — — 784 Other 205 14 808 238 — 1,265 Non-current liabilities of discontinued operations — — 64 7,080 — 7,144 Total liabilities 205 5,700 4,959 8,886 (79 ) 19,671 Equity: Total Hilton stockholders’ equity 5,985 6,166 11,854 6,457 (24,477 ) 5,985 Noncontrolling interests — — — (34 ) — (34 ) Total equity 5,985 6,166 11,854 6,423 (24,477 ) 5,951 TOTAL LIABILITIES AND EQUITY $ 6,190 $ 11,866 $ 16,813 $ 15,309 $ (24,556 ) $ 25,622 |
Condensed Statement of Income and Comprehensive Income | Three Months Ended March 31, 2017 Parent HWF HOC Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 19 $ 255 $ 24 $ (4 ) $ 294 Base and other management fees — — — 50 33 — 83 Incentive management fees — — — 22 30 — 52 Owned and leased hotels — — — — 300 — 300 Other revenues — — 20 13 4 — 37 — — 39 340 391 (4 ) 766 Other revenues from managed and franchised properties — — 45 1,220 130 — 1,395 Total revenues — — 84 1,560 521 (4 ) 2,161 Expenses Owned and leased hotels — — — — 272 — 272 Depreciation and amortization — — 1 64 24 — 89 General and administrative — — 79 2 24 — 105 Other expenses — — 12 7 8 (4 ) 23 — — 92 73 328 (4 ) 489 Other expenses from managed and franchised properties — — 45 1,220 130 — 1,395 Total expenses — — 137 1,293 458 (4 ) 1,884 Operating income (loss) — — (53 ) 267 63 — 277 Interest expense — (63 ) (28 ) — (13 ) — (104 ) Gain (loss) on foreign currency transactions — — 11 21 (36 ) — (4 ) Loss on debt extinguishment — (60 ) — — — — (60 ) Other non-operating income (loss), net — (3 ) 1 1 2 — 1 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (126 ) (69 ) 289 16 — 110 Income tax benefit (expense) — 49 27 (108 ) (3 ) — (35 ) Income (loss) from continuing operations before equity in earnings from subsidiaries — (77 ) (42 ) 181 13 — 75 Equity in earnings from subsidiaries 74 151 193 74 — (492 ) — Net income 74 74 151 255 13 (492 ) 75 Net income attributable to noncontrolling interests — — — — (1 ) — (1 ) Net income attributable to Hilton stockholders $ 74 $ 74 $ 151 $ 255 $ 12 $ (492 ) $ 74 Comprehensive income $ 94 $ 72 $ 155 $ 255 $ 30 $ (512 ) $ 94 Comprehensive loss (income) attributable to noncontrolling interests — — — — — — — Comprehensive income attributable to Hilton stockholders $ 94 $ 72 $ 155 $ 255 $ 30 $ (512 ) $ 94 Three Months Ended March 31, 2016 Parent HWF Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 234 $ 22 $ (3 ) $ 253 Base and other management fees — — 32 28 — 60 Incentive management fees — — 8 28 — 36 Owned and leased hotels — — — 319 — 319 Other revenues — — 14 3 — 17 — — 288 400 (3 ) 685 Other revenues from managed and franchised properties — — 924 117 — 1,041 Total revenues — — 1,212 517 (3 ) 1,726 Expenses Owned and leased hotels — — — 307 — 307 Depreciation and amortization — — 68 24 — 92 Impairment loss — — — 15 — 15 General and administrative — — 57 26 — 83 Other expenses — — 9 12 (3 ) 18 — — 134 384 (3 ) 515 Other expenses from managed and franchised properties — — 924 117 — 1,041 Total expenses — — 1,058 501 (3 ) 1,556 Operating income — — 154 16 — 170 Interest expense — (67 ) (11 ) (12 ) — (90 ) Gain (loss) on foreign currency transactions — — 5 (17 ) — (12 ) Other non-operating income, net — — 2 — — 2 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (67 ) 150 (13 ) — 70 Income tax benefit (expense) 192 26 (100 ) 3 — 121 Income (loss) from continuing operations before equity in earnings from subsidiaries 192 (41 ) 50 (10 ) — 191 Equity in earnings (losses) from subsidiaries — 41 (9 ) — (32 ) — Income (losses) from continuing operations, net of taxes 192 — 41 (10 ) (32 ) 191 Income from discontinued operations, net of taxes 117 117 117 106 (338 ) 119 Net income 309 117 158 96 (370 ) 310 Net income attributable to noncontrolling interests — — — (1 ) — (1 ) Net income attributable to Hilton stockholders $ 309 $ 117 $ 158 $ 95 $ (370 ) $ 309 Comprehensive income $ 319 $ 111 $ 149 $ 119 $ (380 ) $ 318 Comprehensive loss attributable to noncontrolling interests — — — 1 — 1 Comprehensive income attributable to Hilton stockholders $ 319 $ 111 $ 149 $ 120 $ (380 ) $ 319 | Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 21 $ 1,031 $ 112 $ (10 ) $ 1,154 Base and other management fees — — — 126 116 — 242 Incentive management fees — — — 16 126 — 142 Owned and leased hotels — — — — 1,452 — 1,452 Other revenues — — 10 61 11 — 82 — — 31 1,234 1,817 (10 ) 3,072 Other revenues from managed and franchised properties — — 32 3,777 501 — 4,310 Total revenues — — 63 5,011 2,318 (10 ) 7,382 Expenses Owned and leased hotels — — — — 1,295 — 1,295 Depreciation and amortization — — 1 272 91 — 364 Impairment loss — — — — 15 — 15 General and administrative — — 90 204 109 — 403 Other expenses — — 1 31 29 (10 ) 51 — — 92 507 1,539 (10 ) 2,128 Other expenses from managed and franchised properties — — 32 3,777 501 — 4,310 Total expenses — — 124 4,284 2,040 (10 ) 6,438 Gain on sales of assets, net — — — — 8 — 8 Operating income (loss) — — (61 ) 727 286 — 952 Interest expense — (261 ) (30 ) (51 ) (52 ) (394 ) Gain (loss) on foreign currency transactions — — 11 (150 ) 123 — (16 ) Other non-operating income, net — 1 1 8 4 — 14 Income (loss) from continuing operations before income taxes and equity in losses from subsidiaries — (260 ) (79 ) 534 361 — 556 Income tax benefit (expense) 193 100 32 (319 ) (570 ) — (564 ) Income (loss) from continuing operations before equity in losses from subsidiaries 193 (160 ) (47 ) 215 (209 ) — (8 ) Equity in losses from subsidiaries (211 ) (51 ) (4 ) (211 ) — 477 — Income (loss) from continuing operations, net of taxes (18 ) (211 ) (51 ) 4 (209 ) 477 (8 ) Income from discontinued operations, net of taxes 366 366 366 428 374 (1,528 ) 372 Net income 348 155 315 432 165 (1,051 ) 364 Net income attributable to noncontrolling interests — — — — (16 ) — (16 ) Net income attributable to Hilton stockholders $ 348 $ 155 $ 315 $ 432 $ 149 $ (1,051 ) $ 348 Comprehensive income $ 131 $ 153 $ 320 $ 361 $ 15 $ (834 ) $ 146 Comprehensive income attributable to noncontrolling interests — — — — (15 ) — (15 ) Comprehensive income attributable to Hilton stockholders $ 131 $ 153 $ 320 $ 361 $ — $ (834 ) $ 131 Year Ended December 31, 2015 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 998 $ 101 $ (12 ) $ 1,087 Base and other management fees — — 125 105 — 230 Incentive management fees — — 18 120 — 138 Owned and leased hotels — — — 1,596 — 1,596 Other revenues — — 61 10 — 71 — — 1,202 1,932 (12 ) 3,122 Other revenues from managed and franchised properties — — 3,510 501 — 4,011 Total revenues — — 4,712 2,433 (12 ) 7,133 Expenses Owned and leased hotels — — — 1,414 — 1,414 Depreciation and amortization — — 288 97 — 385 Impairment loss — — — 9 — 9 General and administrative — — 424 113 — 537 Other expenses — — 37 15 (12 ) 40 — — 749 1,648 (12 ) 2,385 Other expenses from managed and franchised properties — — 3,510 501 — 4,011 Total expenses — — 4,259 2,149 (12 ) 6,396 Gain on sales of assets, net — — — 163 — 163 Operating income — — 453 447 — 900 Interest expense — (281 ) (50 ) (46 ) — (377 ) Gain (loss) on foreign currency transactions — — 77 (118 ) — (41 ) Other non-operating income, net — — 14 37 — 51 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (281 ) 494 320 — 533 Income tax benefit (expense) (7 ) 108 189 58 — 348 Income (loss) from continuing operations before equity in earnings from subsidiaries (7 ) (173 ) 683 378 — 881 Equity in earnings from subsidiaries 883 1,056 373 — (2,312 ) — Income from continuing operations, net of taxes 876 883 1,056 378 (2,312 ) 881 Income from discontinued operations, net of taxes 528 528 528 460 (1,509 ) 535 Net income 1,404 1,411 1,584 838 (3,821 ) 1,416 Net income attributable to noncontrolling interests — — — (12 ) — (12 ) Net income attributable to Hilton stockholders $ 1,404 $ 1,411 $ 1,584 $ 826 $ (3,821 ) $ 1,404 Comprehensive income $ 1,248 $ 1,404 $ 1,546 $ 727 $ (3,665 ) $ 1,260 Comprehensive income attributable to noncontrolling interests — — — (12 ) — (12 ) Comprehensive income attributable to Hilton stockholders $ 1,248 $ 1,404 $ 1,546 $ 715 $ (3,665 ) $ 1,248 Year Ended December 31, 2014 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 826 $ 85 $ (6 ) $ 905 Base and other management fees — — 129 102 (4 ) 227 Incentive management fees — — 17 116 — 133 Owned and leased hotels — — — 1,776 — 1,776 Other revenues — — 71 9 — 80 — — 1,043 2,088 (10 ) 3,121 Other revenues from managed and franchised properties — — 3,120 447 — 3,567 Total revenues — — 4,163 2,535 (10 ) 6,688 Expenses Owned and leased hotels — — — 1,586 — 1,586 Depreciation and amortization — — 263 100 — 363 General and administrative — — 303 108 — 411 Other expenses — — 49 19 (10 ) 58 — — 615 1,813 (10 ) 2,418 Other expenses from managed and franchised properties — — 3,120 447 — 3,567 Total expenses — — 3,735 2,260 (10 ) 5,985 Operating income — — 428 275 — 703 Interest expense — (334 ) (54 ) (28 ) — (416 ) Gain (loss) on foreign currency transactions — — 443 (417 ) — 26 Other non-operating income, net — — 9 11 — 20 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (334 ) 826 (159 ) — 333 Income tax benefit (expense) (5 ) 128 (306 ) 29 — (154 ) Income (loss) from continuing operations before equity in earnings from subsidiaries (5 ) (206 ) 520 (130 ) — 179 Equity in earnings (losses) from subsidiaries 179 385 (135 ) — (429 ) — Income (loss) from continuing operations, net of taxes 174 179 385 (130 ) (429 ) 179 Income from discontinued operations, net of taxes 499 499 499 450 (1,444 ) 503 Net income 673 678 884 320 (1,873 ) 682 Net income attributable to noncontrolling interests — — — (9 ) — (9 ) Net income attributable to Hilton stockholders $ 673 $ 678 $ 884 $ 311 $ (1,873 ) $ 673 Comprehensive income $ 315 $ 669 $ 813 $ 47 $ (1,515 ) $ 329 Comprehensive income attributable to noncontrolling interests — — — (14 ) — (14 ) Comprehensive income attributable to Hilton stockholders $ 315 $ 669 $ 813 $ 33 $ (1,515 ) $ 315 |
Condensed Cash Flow Statement | Three Months Ended March 31, 2017 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ — $ (102 ) $ 56 $ 112 $ (3 ) $ 63 Investing Activities: Capital expenditures for property and equipment — — — (1 ) (8 ) — (9 ) Contract acquisition costs — — — (8 ) (5 ) — (13 ) Capitalized software costs — — — (9 ) — — (9 ) Other — (13 ) — (6 ) — — (19 ) Net cash used in investing activities — (13 ) — (24 ) (13 ) — (50 ) Financing Activities: Borrowings — 1,823 — — — — 1,823 Repayment of debt — (1,823 ) — — (1 ) — (1,824 ) Debt issuance costs and redemption premium — (66 ) — — — — (66 ) Repayment of intercompany borrowings — — (3 ) — — 3 — Intercompany transfers 119 79 133 (42 ) (289 ) — — Dividends paid (49 ) — — — — — (49 ) Cash transferred in spin-offs of Park and HGV — — — — (501 ) — (501 ) Repurchases of common stock (70 ) — — — — — (70 ) Distributions to noncontrolling interests — — — — (1 ) — (1 ) Tax withholdings on share-based compensation — — (28 ) — — — (28 ) Net cash provided by (used in) financing activities — 13 102 (42 ) (792 ) 3 (716 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — 5 — 5 Net decrease in cash, restricted cash and cash equivalents — — — (10 ) (688 ) — (698 ) Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 90 31 1,062 — 1,183 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — — 501 — 501 Cash, restricted cash and cash equivalents, beginning of period — — 90 31 1,563 — 1,684 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 90 $ 21 $ 875 $ — $ 986 Three Months Ended March 31, 2016 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ — $ (279 ) $ 618 $ — $ 339 Investing Activities: Capital expenditures for property and equipment — — — (84 ) — (84 ) Contract acquisition costs — — (8 ) (1 ) — (9 ) Capitalized software costs — — (10 ) (1 ) — (11 ) Other — — (9 ) 3 — (6 ) Net cash used in investing activities — — (27 ) (83 ) — (110 ) Financing Activities: Repayment of debt — — — (32 ) — (32 ) Intercompany transfers 69 — 317 (386 ) — — Dividends paid (69 ) — — — — (69 ) Distributions to noncontrolling interests — — — (2 ) — (2 ) Tax withholdings on share-based compensation — — (13 ) — — (13 ) Net cash provided by (used in) financing activities — — 304 (420 ) — (116 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — 4 — 4 Net increase (decrease) in cash, restricted cash and cash equivalents — — (2 ) 119 — 117 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 108 526 — 634 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — 222 — 222 Cash, restricted cash and cash equivalents, beginning of period — — 108 748 — 856 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 106 576 — 682 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — 291 — 291 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 106 $ 867 $ — $ 973 | Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (37 ) $ — $ 912 $ 1,095 $ (605 ) $ 1,365 Investing Activities: Capital expenditures for property and equipment — — — (9 ) (308 ) — (317 ) Issuance of intercompany receivables — — — (192 ) (42 ) 234 — Payments received on intercompany receivables — — — 192 — (192 ) — Proceeds from asset dispositions — — — — 11 — 11 Contract acquisition costs — — — (46 ) (9 ) — (55 ) Capitalized software costs — — — (73 ) (8 ) — (81 ) Other — (6 ) — (35 ) 5 — (36 ) Net cash used in investing activities — (6 ) — (163 ) (351 ) 42 (478 ) Financing Activities: Borrowings — — 1,000 — 3,715 — 4,715 Repayment of debt — (266 ) — — (4,093 ) — (4,359 ) Debt issuance costs — (17 ) (20 ) — (39 ) — (76 ) Intercompany borrowings — — — 42 192 (234 ) — Repayment of intercompany borrowings — — — — (192 ) 192 — Intercompany transfers 277 326 (890 ) (854 ) 1,141 — — Dividends paid (277 ) — — — — — (277 ) Intercompany dividends — — — — (605 ) 605 — Distributions to noncontrolling interests — — — — (32 ) — (32 ) Tax withholdings on share-based compensation — — — (15 ) — — (15 ) Net cash provided by (used in) financing activities — 43 90 (827 ) 87 563 (44 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (15 ) — (15 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — 90 (78 ) 816 — 828 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — — 109 524 — 633 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — — 223 — 223 Cash, restricted cash and cash equivalents, beginning of period — — — 109 747 — 856 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 90 31 1,062 — 1,183 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — — 501 — 501 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 90 $ 31 $ 1,563 $ — $ 1,684 Year Ended December 31, 2015 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ 184 $ 975 $ 723 $ (436 ) $ 1,446 Investing Activities: Capital expenditures for property and equipment — — (11 ) (299 ) — (310 ) Acquisitions, net of cash acquired — — — (1,402 ) — (1,402 ) Proceeds from asset dispositions — — — 2,205 — 2,205 Contract acquisition costs — — (23 ) (14 ) — (37 ) Capitalized software costs — — (57 ) (5 ) — (62 ) Other — — 13 7 — 20 Net cash provided by (used in) investing activities — — (78 ) 492 — 414 Financing Activities: Borrowings — — — 48 — 48 Repayment of debt — (775 ) — (849 ) — (1,624 ) Intercompany transfers 138 591 (693 ) (36 ) — — Dividends paid (138 ) — — — — (138 ) Intercompany dividends — — (184 ) (252 ) 436 — Distributions to noncontrolling interests — — — (8 ) — (8 ) Tax withholdings on share-based compensation — — (31 ) — — (31 ) Net cash provided by (used in) financing activities — (184 ) (908 ) (1,097 ) 436 (1,753 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — (19 ) — (19 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — (11 ) 99 — 88 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 119 509 — 628 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — 1 139 — 140 Cash, restricted cash and cash equivalents, beginning of period — — 120 648 — 768 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 109 524 — 633 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — 223 — 223 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 109 $ 747 $ — $ 856 Year Ended December 31, 2014 Parent HWF Issuers Guarantors Non- Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ — $ 1,085 $ 522 $ (300 ) $ 1,307 Investing Activities: Capital expenditures for property and equipment — — (5 ) (263 ) — (268 ) Proceeds from asset dispositions — — 4 40 — 44 Contract acquisition costs — — (19 ) (46 ) — (65 ) Capitalized software costs — — (64 ) (5 ) — (69 ) Other — — 11 37 — 48 Net cash used in investing activities — — (73 ) (237 ) — (310 ) Financing Activities: Borrowings — — — 350 — 350 Repayment of debt — (1,000 ) — (424 ) — (1,424 ) Debt issuance costs — (6 ) — (3 ) — (9 ) Capital contribution — — — 22 (9 ) 13 Intercompany transfers — 1,006 (1,094 ) 88 — — Intercompany dividends — — — (309 ) 309 — Distributions to noncontrolling interests — — — (5 ) — (5 ) Net cash used in financing activities — — (1,094 ) (281 ) 300 (1,075 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — (14 ) — (14 ) Net decrease in cash, restricted cash and cash equivalents — — (82 ) (10 ) — (92 ) Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 201 505 — 706 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — 1 153 — 154 Cash, restricted cash and cash equivalents, beginning of period — — 202 658 — 860 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 119 509 — 628 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — 1 139 — 140 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 120 $ 648 $ — $ 768 |
Selected Quarterly Financial 60
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2016 First Second Third Fourth Year (in millions, except per share data) Revenues $ 1,726 $ 1,950 $ 1,867 $ 1,839 $ 7,382 Operating income 170 273 265 244 952 Income (loss) from continuing operations, net of taxes 191 100 89 (388 ) (8 ) Income from discontinued operations, net of taxes 119 144 103 6 372 Net income (loss) 310 244 192 (382 ) 364 Net income (loss) attributable to Hilton stockholders 309 239 187 (387 ) 348 Basic earnings (loss) per share: Net income (loss) from continuing operations (1) $ 0.58 $ 0.29 $ 0.27 $ (1.20 ) $ (0.05 ) Net income from discontinued operations (1) 0.36 0.44 0.30 0.02 1.11 Net income (loss) $ 0.94 $ 0.73 $ 0.57 $ (1.18 ) $ 1.06 Diluted earnings (loss) per share: Net income (loss) from continuing operations (1) $ 0.58 $ 0.29 $ 0.27 $ (1.20 ) $ (0.05 ) Net income from discontinued operations 0.36 0.43 0.30 0.02 1.11 Net income (loss) (1) $ 0.94 $ 0.72 $ 0.57 $ (1.18 ) $ 1.06 2015 First Second Third Fourth Year (in millions, except per share data) Revenues $ 1,630 $ 1,845 $ 1,847 $ 1,811 $ 7,133 Operating income 143 135 391 231 900 Income (loss) from continuing operations, net of taxes (1 ) 40 153 689 881 Income from discontinued operations, net of taxes 151 127 130 127 535 Net income 150 167 283 816 1,416 Net income attributable to Hilton stockholders 150 161 279 814 1,404 Basic earnings per share: Net income from continuing operations $ — $ 0.11 $ 0.47 $ 2.09 $ 2.67 Net income from discontinued operations 0.46 0.38 0.38 0.38 1.60 Net income $ 0.46 $ 0.49 $ 0.85 $ 2.47 $ 4.27 Diluted earnings per share: Net income from continuing operations (1) $ — $ 0.11 $ 0.47 $ 2.09 $ 2.66 Net income from discontinued operations 0.46 0.38 0.38 0.38 1.60 Net income (1) $ 0.46 $ 0.49 $ 0.85 $ 2.47 $ 4.26 (1) The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. |
Organization (Detail)
Organization (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2017USD ($)CountryHotelRoom$ / sharesshares | Dec. 31, 2016USD ($)CountryHotelRoom$ / sharesshares | Mar. 15, 2017shares | Jan. 03, 2017 | Dec. 31, 2015$ / sharesshares | ||||
Organization and Basis of Presentation [Line Items] | ||||||||
Number of hotel and resort properties | Hotel | 4,982 | 4,922 | ||||||
Number of hotel and resort rooms | Room | 812,341 | 804,097 | ||||||
Number of countries and territories | Country | 103 | 104 | ||||||
Spin-offs into new companies | 2 | |||||||
Common stock, authorized shares | 10,000,000,000 | [1] | 10,000,000,000 | [1],[2] | 10,000,000,000 | [2] | ||
Reverse stock split | 1-for-3 | 1-for-3 | ||||||
Common stock, par value (per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Preferred stock, authorized shares | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | |||||
Reclassification from common stock to additional paid in capital | $ | $ 7 | $ 7 | ||||||
Pre reverse stock split [member] | ||||||||
Organization and Basis of Presentation [Line Items] | ||||||||
Common stock, authorized shares | 30,000,000,000 | 30,000,000,000 | ||||||
Post reverse stock split [member] | ||||||||
Organization and Basis of Presentation [Line Items] | ||||||||
Common stock, authorized shares | 10,000,000,000 | 10,000,000,000 | ||||||
The Blackstone Group And Affiliates [member] | ||||||||
Organization and Basis of Presentation [Line Items] | ||||||||
Common stock ownership percentage | 15.20% | 40.30% | ||||||
HNA Tourism Group Co., Ltd. [member] | ||||||||
Organization and Basis of Presentation [Line Items] | ||||||||
Common stock ownership percentage | 25.00% | |||||||
HNA Tourism Group Co.,Ltd. purchase of Hilton common stock from Blackstone Group and Affiliates [Member] | ||||||||
Organization and Basis of Presentation [Line Items] | ||||||||
Common stock ownership percentage | 25.00% | |||||||
Hilton common stock acquired | 82,500,000 | |||||||
[1] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. | |||||||
[2] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |
Basis of Presentation and Sum62
Basis of Presentation and Summary of Significant Accounting Policies (Details) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 01, 2017 | Jan. 01, 2016 | Dec. 31, 2015 | |
Accounting Policies [Line Items] | ||||
Debt issuance costs, net | $ 61 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1 | $ 5 | ||
Building and Building Improvements [member] | Minimum [member] | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 8 years | |||
Building and Building Improvements [member] | Maximum [member] | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 40 years | |||
Furniture and Equipment [member] | Minimum [member] | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Furniture and Equipment [member] | Maximum [member] | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 8 years | |||
Computer Equipment [Member] | Minimum [member] | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | |||
Computer Equipment [Member] | Maximum [member] | ||||
Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful life | 5 years |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - Discontinued operations, disposed of by means other than sale, spinoff [member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Jan. 03, 2017 | |
Park and HGV spin-offs [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Distribution of of spin-off companies stock to Hilton stockholders | 100.00% | |
Park spin-off [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Park common stock distributed for every five shares of Hilton common stock | 1 | |
Hilton common stock to receive spin-off company common stock | 5 | |
Revenues from discontinued operations after disposal | $ 39 | |
HGV spin-off [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Hilton common stock to receive spin-off company common stock | 10 | |
HGV common stock distributed for every ten shares of Hilton common stock | 1 | |
Revenues from discontinued operations after disposal | $ 20 | |
Distribution Agreement [Member] | Park spin-off [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Allocation of certain contingent liabilities among the parties | 26.00% | |
Distribution Agreement [Member] | HGV spin-off [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Allocation of certain contingent liabilities among the parties | 9.00% | |
Distribution Agreement [Member] | Hilton [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Allocation of certain contingent liabilities among the parties | 65.00% | |
Tax Matters Agreement [Member] | Park and HGV spin-offs [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Period of Continuing Involvement after Disposal | 2 years | |
Transition Services Agreement [Member] | Park and HGV spin-offs [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Period of Continuing Involvement after Disposal | 2 years | |
License Agreement [Member] | HGV spin-off [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Period of Continuing Involvement after Disposal | 100 years | |
Royalty fee rate | 5.00% | |
Transition fee | $ 5 | |
Term of transition fee payments | 5 years | |
Tax Stockholders Agreement [Member] | Park and HGV spin-offs [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Period of Continuing Involvement after Disposal | 2 years | |
Management and franchise contracts recorded at Merger [Member] | Park spin-off [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Base management fee rate | 3.00% | |
Incentive management fee rate | 6.00% |
Discontinued Operations - Balan
Discontinued Operations - Balance Sheet Disclosures (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total current assets of discontinued operations | $ 0 | $ 1,478 | $ 1,044 |
Total non-current assets of discontinued operations | 0 | 10,347 | 10,424 |
Total current liabilities of discontinued operations | $ 0 | 774 | 812 |
Park and HGV spin-offs [Member] | Discontinued operations, disposed of by means other than sale, spinoff [member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | 341 | 76 | |
Restricted cash and cash equivalents | 160 | 147 | |
Accounts receivable, net of allowance for doubtful accounts | 250 | 212 | |
Prepaid expenses | 48 | 35 | |
Inventories | 527 | 430 | |
Current portion of financing receivables, net | 136 | 128 | |
Other | 16 | 16 | |
Total current assets of discontinued operations | 1,478 | 1,044 | |
Variable interest entity current assets of discontinued operations | 92 | 79 | |
Goodwill | 604 | 607 | |
Management and franchise contracts, net | 56 | 60 | |
Other intangible assets, net | 60 | 63 | |
Property and equipment, net | 8,589 | 8,708 | |
Deferred income tax assets | 35 | 19 | |
Financing receivables, net | 895 | 848 | |
Investments in affiliates | 81 | 99 | |
Other | 27 | 20 | |
Total non-current assets of discontinued operations | 10,347 | 10,424 | |
Variable interest entity non-current assets of discontinued operations | 405 | 326 | |
Total assets of discontinued operations | 11,825 | 11,468 | |
Accounts payable, accrued expenses and other | 632 | 587 | |
Current maturities of long-term debt | 65 | 109 | |
Current maturities of timeshare debt | 73 | 110 | |
Income taxes payable | 4 | 6 | |
Total current liabilities of discontinued operations | 774 | 812 | |
Variable interest entity current liabilities of discontinued operations | 81 | 113 | |
Long-term debt | 3,437 | 3,948 | |
Timeshare debt | 621 | 392 | |
Deferred revenues | 22 | 32 | |
Deferred income tax liabilities | 2,797 | 2,755 | |
Other | 17 | 17 | |
Total liabilities of discontinued operations | 7,668 | 7,956 | |
Variable interest entity liabilities of discontinued operations | $ 506 | $ 369 |
Discontinued Operations - Incom
Discontinued Operations - Income Statement Disclosures (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Income from discontinued operations, net of taxes | $ 0 | $ 6 | $ 103 | $ 144 | $ 119 | $ 127 | $ 130 | $ 127 | $ 151 | $ 372 | $ 535 | $ 503 |
Park and HGV spin-offs [Member] | Discontinued operations, disposed of by means other than sale, spinoff [member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Franchise fees | 10 | 38 | 35 | 22 | ||||||||
Base and other management fees | 7 | 30 | 27 | 24 | ||||||||
Owned and leased hotels | 648 | 2,674 | 2,637 | 2,463 | ||||||||
Timeshare | 326 | 1,390 | 1,308 | 1,171 | ||||||||
Other revenues | 3 | 13 | 13 | 10 | ||||||||
Other revenues from managed and franchised properties | 30 | 136 | 119 | 124 | ||||||||
Total revenues from discontinued operations | 1,024 | 4,281 | 4,139 | 3,814 | ||||||||
Owned and leased hotels | 449 | 1,805 | 1,754 | 1,666 | ||||||||
Timeshare | 217 | 948 | 897 | 767 | ||||||||
Depreciation and amortization | 77 | 322 | 307 | 265 | ||||||||
General and administrative | 10 | 144 | 10 | 5 | ||||||||
Other expenses | 2 | 18 | 24 | 17 | ||||||||
Other expenses from managed and franchised properties | 30 | 136 | 119 | 124 | ||||||||
Total expenses from discontinued operations | 785 | 3,373 | 3,111 | 2,844 | ||||||||
Gain on sales of assets, net | 1 | 143 | 0 | |||||||||
Operating income from discontinued operations | 239 | 909 | 1,171 | 970 | ||||||||
Interest expense | (49) | (193) | (198) | (202) | ||||||||
Gain on foreign currency transactions | 3 | 0 | 0 | |||||||||
Other non-operating income (loss), net | 4 | (20) | (10) | 46 | ||||||||
Income from discontinued operations before income taxes | 194 | 699 | 963 | 814 | ||||||||
Income tax expense | (75) | (327) | (428) | (311) | ||||||||
Income from discontinued operations, net of taxes | 119 | 372 | 535 | 503 | ||||||||
Income from discontinued operations attributable to noncontrolling interests, net of taxes | (2) | (6) | (7) | (4) | ||||||||
Income from discontinued operations attributable to Hilton stockholders, net of taxes | $ 117 | $ 366 | $ 528 | $ 499 |
Discontinued Operations - Non-c
Discontinued Operations - Non-cash Items and Capital Expenditures (Detail) - Park and HGV spin-offs [Member] - Discontinued operations, disposed of by means other than sale, spinoff [member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation and amortization | $ 77 | $ 322 | $ 307 | $ 265 |
Gain on sales of assets, net | 1 | 143 | 0 | |
Capital expenditures for property and equipment | $ 68 | 255 | 243 | 184 |
Acquisitions, net of cash acquired | 0 | (1,402) | 0 | |
Proceeds from asset dispositions | $ 0 | $ 1,866 | $ 31 |
Disposals - Additional Informat
Disposals - Additional Information (Detail) AUD in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015AUD | Dec. 31, 2014USD ($)Hotel | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from asset dispositions | $ 11 | $ 2,205 | $ 44 | ||||
Gain on sales of assets, net | 8 | 163 | 0 | ||||
Reduction of goodwill | $ 91 | 36 | [1] | ||||
Other non-operating income, net | $ 1 | $ 2 | $ 14 | 51 | 20 | ||
Hilton Sydney [member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from asset dispositions | 340 | AUD 442 | |||||
Gain on sales of assets, net | 163 | ||||||
Reduction of goodwill | 36 | ||||||
Reclassification of currency translation adjustment | $ 25 | ||||||
Two hotels [member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from asset dispositions | 9 | ||||||
Reclassification of currency translation adjustment | $ 3 | ||||||
Number of hotels sold | Hotel | 2 | ||||||
Other non-operating income, net | $ 8 | ||||||
[1] | Relates to the sale of the Hilton Sydney, see Note 4: "Disposals" for additional information. |
Consolidated Variable Interes68
Consolidated Variable Interest Entities - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)Entity | Mar. 31, 2017Entity | Dec. 31, 2016Entity | |
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | 3 | 3 | |
Number of newly consolidated variable interest entities | 2 | ||
Non-cash capital lease obligation reduction | $ | $ 24 | ||
Condo management VIE [member] | |||
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | 1 | 1 | |
Hotel VIEs [member] | |||
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | 2 | 2 | 2 |
Unconsolidated investments in affiliates [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of deconsolidated variable interest entities | 1 |
Consolidated Variable Interes69
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 862 | $ 1,062 | $ 513 |
Accounts receivable, net | 911 | 755 | 664 |
Property and equipment, net | 341 | 341 | 411 |
Deferred income tax assets | 82 | 82 | 59 |
Other non-current assets | 443 | 408 | 332 |
Accounts payable, accrued expenses and other | 1,798 | 1,821 | 1,619 |
Long-term debt | 6,588 | 6,583 | 5,887 |
Consolidated VIEs [member] | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 55 | 57 | 44 |
Accounts receivable, net | 14 | 14 | 15 |
Property and equipment, net | 55 | 52 | 44 |
Deferred income tax assets | 61 | 58 | 62 |
Other non-current assets | 56 | 53 | 49 |
Accounts payable, accrued expenses and other | 34 | 33 | 33 |
Long-term debt | $ 222 | $ 212 | $ 208 |
Goodwill and Intangible Asset70
Goodwill and Intangible Assets - Schedule of Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Goodwill [Line Items] | |||||||
Goodwill | $ 5,218 | $ 5,280 | $ 5,360 | ||||
Dispositions | (91) | (36) | [1] | ||||
Foreign currency translation | 8 | (62) | (44) | ||||
Goodwill | 5,135 | 5,218 | 5,280 | ||||
Ownership [member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | [3] | 184 | [2] | 193 | 231 | ||
Goodwill, gross carrying value | 856 | 865 | 1,027 | ||||
Dispositions | (91) | (36) | |||||
Gross goodwill, disposed of related to sale of business unit | (423) | (160) | |||||
Foreign currency translation | 2 | (9) | (2) | ||||
Goodwill | 95 | [2] | 184 | [2],[3] | 193 | [3] | |
Goodwill, gross carrying value | 435 | 856 | 865 | ||||
Accumulated impairment losses | (672) | (672) | (796) | ||||
Accumulated impairment losses, disposed of related to dispositions | 332 | 124 | |||||
Accumulated impairment losses | (340) | (672) | (672) | ||||
Gross carrying value of goodwill included in discontinued operations | 2,706 | ||||||
Accumulated impairment losses included in discontinued operations | 2,102 | ||||||
Management and franchise [member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | [4] | 5,034 | [5] | 5,087 | 5,129 | ||
Dispositions | 0 | ||||||
Foreign currency translation | 6 | (53) | (42) | ||||
Goodwill | $ 5,040 | [5] | $ 5,034 | [4],[5] | $ 5,087 | [4] | |
[1] | Relates to the sale of the Hilton Sydney, see Note 4: "Disposals" for additional information. | ||||||
[2] | Excludes goodwill of $2,706 million and accumulated impairment losses of $2,102 million that were attributable to Park and included in non-current assets of discontinued operations in the condensed consolidated balance sheet as of December 31, 2016. Total goodwill balances for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: Gross Carrying Value Accumulated Impairment Losses Net Carrying Value (in millions) Balance as of December 31, 2016 $ 856 $ (672 ) $ 184 Spin-offs of Park and HGV (423 ) 332 (91 ) Foreign currency translation 2 - 2 Balance as of March 31, 2017 $ 435 $ (340 ) $ 95 | ||||||
[3] | Total goodwill balances for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: Gross Carrying Value Accumulated Impairment Losses Net Carrying Value (in millions) Balance as of December 31, 2014 $ 1,027 $ (796 ) $ 231 Disposition of a business (160 ) 124 (36 ) Foreign currency translation (2 ) - (2 ) Balance as of December 31, 2015 865 (672 ) 193 Foreign currency translation (9 ) - (9 ) Balance as of December 31, 2016 $ 856 $ (672 ) $ 184 | ||||||
[4] | There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2016, 2015 and 2014. | ||||||
[5] | There were no accumulated impairment losses for the management and franchise reporting unit as of March 31, 2017 and December 31, 2016. |
Goodwill and Intangible Asset71
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Finite-Lived Intangible Assets [Line Items] | ||||||
Management and franchise contracts, gross | $ 2,579 | $ 2,564 | $ 2,528 | |||
Amortizing intangible assets, accumulated amortization | (1,649) | (1,601) | (1,439) | |||
Management and franchise contracts, net | 930 | 963 | 1,089 | |||
Other intangible assets, gross | 1,172 | 1,158 | 1,126 | |||
Other intangible assets, accumulated amortization | (741) | (711) | (603) | |||
Other intangible assets, net | 431 | 447 | 523 | |||
Brands | 4,856 | [1] | 4,848 | [2] | 4,919 | [2] |
Management and franchise contracts recorded at Merger [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Management and franchise contracts, gross | 2,225 | [1] | 2,221 | [2] | 2,249 | [2] |
Amortizing intangible assets, accumulated amortization | (1,578) | [1] | (1,534) | [2] | (1,381) | [2] |
Management and franchise contracts, net | 647 | [1] | 687 | [2] | 868 | [2] |
Contract acquisition costs and other [member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Management and franchise contracts, gross | 354 | 343 | 279 | |||
Amortizing intangible assets, accumulated amortization | (71) | (67) | (58) | |||
Management and franchise contracts, net | 283 | 276 | 221 | |||
Leases [member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortizing intangible assets, accumulated amortization | (132) | [1] | (126) | [2] | (127) | [2] |
Other intangible assets, gross | 279 | [1] | 276 | [2] | 315 | [2] |
Other intangible assets, net | 147 | [1] | 150 | [2] | 188 | [2] |
Capitalized software [member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortizing intangible assets, accumulated amortization | (380) | (362) | (274) | |||
Other intangible assets, gross | 519 | 510 | 436 | |||
Other intangible assets, net | 139 | 148 | 162 | |||
Hilton Honors [member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortizing intangible assets, accumulated amortization | (198) | [1] | (192) | [2] | (175) | [2] |
Other intangible assets, gross | 336 | [1] | 335 | [2] | 341 | [2] |
Other intangible assets, net | 138 | [1] | 143 | [2] | 166 | [2] |
Other [member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortizing intangible assets, accumulated amortization | (31) | (31) | (27) | |||
Other intangible assets, gross | 38 | 37 | 34 | |||
Other intangible assets, net | $ 7 | $ 6 | $ 7 | |||
[1] | Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone (the "Merger"). | |||||
[2] | Represents intangible assets that were initially recorded at their fair value at the time of the Merger. |
Goodwill and Intangible Asset72
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 74 | $ 78 | $ 312 | $ 325 | $ 302 |
Capitalized software [member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 17 | $ 22 | $ 87 | $ 87 | $ 74 |
Goodwill and Intangible Asset73
Goodwill and Intangible Assets - Schedule Of Future Amortization (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Other Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 285 | |
2017 (remaining) | $ 211 | |
2,018 | 267 | 267 |
2,019 | 248 | 248 |
2,020 | 201 | 199 |
2,021 | 71 | 73 |
Thereafter | 363 | 338 |
Amortizing intangible assets, net | $ 1,361 | $ 1,410 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | |||
Land | $ 12 | $ 66 | |
Buildings and leasehold improvements | 384 | 379 | |
Furniture and equipment | 357 | 337 | |
Construction-in-progress | 14 | 13 | |
Property and equipment, gross | 767 | 795 | |
Accumulated depreciation | (426) | (384) | |
Property and equipment, net | $ 341 | $ 341 | $ 411 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 52 | $ 60 | $ 61 |
Net capital lease assets included in property and equipment | 122 | 120 | |
Accumulated depreciation of capital lease assets included in property and equipment | $ 74 | $ 63 |
Accounts Payable, Accrued Exp76
Accounts Payable, Accrued Expenses and Other (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | |||
Accrued employee compensation and benefits | $ 438 | $ 351 | |
Accounts payable | 314 | 268 | |
Liability for guest loyalty program, current | 543 | 494 | |
Insurance reserves, current | 122 | 116 | |
Other accrued expenses | 404 | 390 | |
Accounts payable, accrued expenses and other | $ 1,798 | $ 1,821 | $ 1,619 |
Debt - Long-term Debt (Detail)
Debt - Long-term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 01, 2017 | Dec. 31, 2016 | Aug. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 6,718 | $ 6,706 | $ 5,972 | |||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | (89) | (90) | (78) | |||
Current maturities of long-term debt | [1] | (41) | (33) | (7) | ||
Long-term debt | 6,588 | 6,583 | 5,887 | |||
Senior notes [member] | Senior notes due 2021 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 0 | $ 1,500 | 1,500 | |||
Debt instrument, interest rate, stated percentage | 5.625% | |||||
Senior notes [member] | Senior notes due 2024 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 1,000 | $ 1,000 | 0 | |||
Debt instrument, interest rate, stated percentage | 4.25% | 4.25% | 4.25% | |||
Senior notes [member] | Senior notes due 2025 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 900 | $ 0 | ||||
Debt instrument, interest rate, stated percentage | 4.625% | |||||
Senior notes [member] | Senior notes due 2027 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 600 | 0 | ||||
Debt instrument, interest rate, stated percentage | 4.875% | |||||
Secured debt [member] | Senior secured term loan facility due 2020 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 750 | $ 750 | 4,225 | |||
Debt instrument, interest rate, stated percentage | 3.50% | |||||
Secured debt [member] | Senior secured term loan facility due 2023 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 3,959 | $ 3,209 | $ 3,209 | $ 3,225 | 0 | |
Debt instrument, interest rate, stated percentage | 2.98% | 3.26% | ||||
Capital lease obligations [member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 237 | $ 227 | 227 | |||
Debt instrument, weighted average interest rate | 6.34% | 6.34% | ||||
Mortgages [member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 22 | $ 20 | $ 20 | |||
Debt instrument, weighted average interest rate | 2.65% | 2.65% | ||||
[1] | Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 01, 2017 | Nov. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 6,718 | $ 6,706 | $ 5,972 | |||
Senior notes [member] | Senior notes due 2025 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of long-term debt | $ 900 | |||||
Debt instrument, interest rate, stated percentage | 4.625% | |||||
Long-term debt, gross | $ 900 | 0 | ||||
Senior notes [member] | Senior notes due 2027 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of long-term debt | $ 600 | |||||
Debt instrument, interest rate, stated percentage | 4.875% | |||||
Long-term debt, gross | $ 600 | $ 0 | ||||
Senior notes [member] | Senior notes due 2025 and senior notes due 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs, gross | 21 | |||||
Senior notes [member] | Senior notes due 2021 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 5.625% | |||||
Long-term debt, gross | 0 | $ 1,500 | 1,500 | |||
Premium paid to redeem debt instrument | 42 | |||||
Write off of deferred debt issuance cost | 18 | |||||
Long-term debt, amount redeemed | $ 1,500 | |||||
Senior notes [member] | Senior notes due 2024 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of long-term debt | $ 1,000 | |||||
Debt instrument, interest rate, stated percentage | 4.25% | 4.25% | 4.25% | |||
Debt issuance costs, gross | $ 20 | |||||
Long-term debt, gross | $ 1,000 | $ 1,000 | 0 | |||
Secured debt [member] | Senior secured revolving credit facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs, gross | $ 5 | |||||
Line of credit facility, maximum borrowing capacity | 1,000 | 1,000 | ||||
Letters of credit outstanding, amount | 23 | 45 | ||||
Line of credit facility, remaining borrowing capacity | $ 977 | $ 955 | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | |||||
Secured debt [member] | Senior secured term loan facility due 2020 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 3.50% | |||||
Long-term debt, gross | $ 750 | $ 750 | 4,225 | |||
Secured debt [member] | Senior secured term loan facility due 2023 [member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 2.98% | 3.26% | ||||
Debt issuance costs, gross | 4 | $ 3 | ||||
Long-term debt, gross | $ 3,225 | $ 3,959 | $ 3,209 | $ 3,209 | $ 0 | |
Debt instrument, basis spread on variable rate | 2.50% | 2.00% | ||||
Debt instrument, unamortized discount | $ 8 |
Debt - Debt Maturities (Detail)
Debt - Debt Maturities (Detail) - Long-term Debt and Capital Lease Obligations [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
2,017 | $ 40 | |
2017 (remaining) | $ 36 | |
2,018 | 59 | 50 |
2,019 | 55 | 47 |
2,020 | 56 | 798 |
2,021 | 57 | 1,549 |
Thereafter | 6,455 | 4,222 |
Long-term debt and capital lease obligations, including current maturities | $ 6,718 | $ 6,706 |
Deferred Revenues - Schedule of
Deferred Revenues - Schedule of Deferred Revenues (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenues | $ 22 | $ 42 | $ 251 |
Hilton Honors points sales [member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenues | 29 | 233 | |
Other deferred revenues [member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Deferred revenues | $ 13 | $ 18 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | |||
Program surplus | $ 446 | $ 420 | |
Pension obligations | 215 | 183 | |
Other long-term tax liabilities | 480 | 293 | |
Deferred employee compensation and benefits | 113 | 170 | |
Insurance reserves | 131 | 87 | |
Other | 107 | 112 | |
Other Liabilities, Noncurrent | $ 1,493 | $ 1,492 | $ 1,265 |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Insurance claims, satisfied average term | three years |
Derivative Instruments and He83
Derivative Instruments and Hedging Activities - Additional Information (Detail) $ in Millions | Mar. 31, 2017USD ($)Derivative | Dec. 31, 2016USD ($)Derivative |
Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | Derivative | 2 | |
Not designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | Derivative | 4 | |
Derivative, swaption interest rate | 1.87% | |
Derivative, notional amount | $ 1,450 | |
Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 255 | $ 326 |
Number of foreign exchange forward contracts held | Derivative | 63 | 68 |
$1.6 billion notional [Member] | Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, swaption interest rate | 1.98% | |
Derivative, notional amount | $ 1,600 | |
$750 million notional [Member] | Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, swaption interest rate | 2.02% | |
Derivative, notional amount | $ 750 |
Derivative Instruments and He84
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other liabilities [member] | Designated as hedging instrument [member] | Term loan interest rate swaps [member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | $ 7 | $ 15 | |
Other liabilities [member] | Not designated as hedging instrument [member] | Term loan interest rate swaps [member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | 0 | $ 12 | |
Other current assets [member] | Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset | 1 | 3 | 1 |
Accounts payable, accrued expenses and other [member] | Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | $ 1 | $ 4 | $ 1 |
Derivative Instruments and He85
Derivative Instruments and Hedging Activities - Earnings Effect of Derivative Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||
Term loan interest rate swaps [member] | Designated as hedging instrument [member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative instruments, gain (loss) recognized in other comprehensive income, effective portion, net | $ (7) | [1] | $ (10) | [1] | $ (7) | [2] | $ (11) | [2] | $ (14) | [2] |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | 0 | 0 | 0 | |||||
Other non-operating income, net [member] | Term loan interest rate swaps [member] | Not designated as hedging instrument [member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 2 | 4 | ||||||||
Interest expense [member] | Term loan interest rate swaps [member] | Not designated as hedging instrument [member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Gain (Loss) Reclassified to Earnings, Net from Discontinued Cash Flow Hedges | 3 | [3] | 4 | [4] | ||||||
Gain (loss) on foreign currency transactions [member] | Foreign exchange forward contracts [member] | Not designated as hedging instrument [member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Gain (loss) on foreign exchange forward contracts not designated as hedging instruments | $ 1 | $ 1 | $ 7 | $ 11 | $ 1 | |||||
[1] | There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three months ended March 31, 2017 and 2016. | |||||||||
[2] | There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the years ended December 31, 2016, 2015 and 2014. | |||||||||
[3] | This amount is related to the dedesignation of the 2013 Interest Rate Swaps as cash flow hedges and was reclassified from accumulated other comprehensive loss as the underlying transactions occurred. | |||||||||
[4] | The amount recognized during the year ended December 31, 2016 is related to the dedesignation of these instruments as cash flow hedges and was reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule by Balance Sheet Grouping (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Level 1 [member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt | $ 2,512 | $ 2,516 | $ 1,560 | |||
Level 2 [member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash equivalents | 580 | 782 | 287 | |||
Restricted cash equivalents | 12 | 11 | 18 | |||
Interest rate swaps | 7 | 12 | 15 | |||
Level 3 [member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt | 3,996 | 4,006 | 4,222 | |||
Carrying value [member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash equivalents | 580 | 782 | 287 | |||
Restricted cash equivalents | 12 | 11 | 18 | |||
Long-term debt | 6,370 | [1] | 6,369 | [1],[2] | 5,647 | [2] |
Interest rate swaps | $ 7 | $ 12 | $ 15 | |||
[1] | Carrying value includes unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. | |||||
[2] | The carrying value includes unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016HotelEntity | Dec. 31, 2015HotelEntity | |
Additional Information [Abstract] | ||
Number of hotel properties under operating leases | 61 | 64 |
Number of hotel properties under capital leases | 4 | 4 |
Number of consolidated variable interest entities capital leases | Entity | 2 | 2 |
Leases starting expiration date | 2,017 | |
Leases ending expiration date | 2,196 | |
Date majority of leases expire | 2,026 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Schedule of Future Lease Payments [Line Items] | |
2,017 | $ 175 |
2,018 | 157 |
2,019 | 147 |
2,020 | 142 |
2,021 | 133 |
Thereafter | 863 |
Total minimum rent payments | 1,617 |
Recourse capital leases [member] | |
Schedule of Future Lease Payments [Line Items] | |
2,017 | 4 |
2,018 | 4 |
2,019 | 4 |
2,020 | 4 |
2,021 | 5 |
Thereafter | 34 |
Total minimum rent payments | 55 |
Amount representing interest | (19) |
Present value of net minimum rent payments | 36 |
Non-recourse capital leases [member] | |
Schedule of Future Lease Payments [Line Items] | |
2,017 | 14 |
2,018 | 23 |
2,019 | 23 |
2,020 | 24 |
2,021 | 24 |
Thereafter | 174 |
Total minimum rent payments | 282 |
Amount representing interest | (91) |
Present value of net minimum rent payments | $ 191 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Rent Expense [Abstract] | |||
Minimum rentals | $ 224 | $ 244 | $ 247 |
Contingent rentals | 98 | 104 | 127 |
Rent expense | $ 322 | $ 348 | $ 374 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
U.S. income before tax | $ 934 | $ 262 | $ 181 | ||
Foreign income before tax | (378) | 271 | 152 | ||
Income from continuing operations before income taxes | $ 110 | $ 70 | $ 556 | $ 533 | $ 333 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Federal | $ 441 | $ 164 | $ 118 | ||
State | 143 | 51 | 41 | ||
Foreign | 70 | 64 | 86 | ||
Total current | 654 | 279 | 245 | ||
Federal | (116) | (606) | (74) | ||
State | 50 | (86) | (17) | ||
Foreign | (24) | 65 | 0 | ||
Deferred income taxes | (90) | (627) | (91) | ||
Income tax benefit (expense) | $ 35 | $ (121) | $ 564 | $ (348) | $ 154 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Statutory U.S. federal income tax provision | $ 194 | $ 187 | $ 116 | ||
State income taxes, net of U.S. federal tax benefit | 23 | 17 | 7 | ||
Foreign income tax expense | 119 | 108 | 52 | ||
U.S. benefit of foreign taxes | (71) | (106) | (46) | ||
Foreign losses not subject to U.S. tax | 0 | 0 | (7) | ||
Nontaxable liquidation of subsidiaries | 0 | (628) | 0 | ||
Corporate restructuring | 482 | 0 | 0 | ||
Change in deferred tax asset valuation allowance | (65) | 14 | 8 | ||
Change in basis difference in foreign subsidiaries | 27 | 11 | 13 | ||
Provision (benefit) for uncertain tax positions | (139) | 18 | 5 | ||
Non-deductible share-based compensation | 0 | 23 | 11 | ||
Non-deductible goodwill | 0 | 13 | 0 | ||
Other, net | (6) | (5) | (5) | ||
Income tax benefit (expense) | $ 35 | $ (121) | $ 564 | $ (348) | $ 154 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2017 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||
Corporate restructuring | $ 482 | $ 0 | $ 0 | ||
Valuation allowance release, deferred tax asset, foreign | 26 | ||||
Deferred tax liabilities | 1,696 | 1,816 | |||
Deferred income taxes | (90) | (627) | (91) | ||
Deferred tax assets, foreign net operating loss carryforwards | 394 | ||||
Deferred tax assets, net operating loss carryforwards due to expire | $ 7 | ||||
Net operating loss carryforwards expiration range | 2017 and 2036 | ||||
Net operating loss carryforwards due to expire in one year | $ 1 | ||||
Deferred tax assets, net operating loss carryforwards not subject to expiration | 387 | ||||
Net operating loss carryforwards valuation allowance | 385 | ||||
Deferred tax asset valuation allowance increase (decrease) | 23 | ||||
Accrued interest and penalties related to uncertain tax positions | 30 | 26 | $ 33 | ||
Interest and penalties expense related to uncertain tax positions | 4 | 5 | 8 | ||
Unrecognized tax benefits that would impact effective tax rate | 176 | 299 | 173 | ||
Decrease in unrecognized tax benefits reasonably possible in next 12 months | 8 | 8 | |||
Taxing authority proposed tax owed adjustment | 874 | 874 | |||
Accrual for taxing authority proposed tax owed adjustment | 44 | 46 | |||
Unrecognized tax benefits | 174 | 315 | $ 296 | $ 174 | $ 323 |
Foreign Tax Authority [member] | |||||
Income Tax Disclosure [Abstract] | |||||
Net operating loss carryforwards | $ 1,500 | ||||
Tax Free Liquidations [Member] | |||||
Income Tax Disclosure [Abstract] | |||||
Deferred tax liabilities | 512 | ||||
Deferred tax assets | 116 | ||||
Deferred income taxes | $ 628 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 394 | $ 440 |
Compensation | 214 | 243 |
Other reserves | 15 | 39 |
Capital lease obligations | 84 | 90 |
Insurance reserves | 36 | 50 |
Program surplus | 84 | 79 |
Property and equipment | 26 | 172 |
Investments | 12 | 72 |
Other | 66 | 84 |
Total gross deferred tax assets | 931 | 1,269 |
Less: valuation allowance | (507) | (484) |
Deferred tax assets | 424 | 785 |
Brands | (1,626) | (1,867) |
Amortizable intangible assets | (305) | (488) |
Investment in foreign subsidiaries | (39) | (35) |
Deferred income | (150) | (211) |
Deferred Tax Liabilities, Gross | (2,120) | (2,601) |
Deferred tax liabilities | $ (1,696) | $ (1,816) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 315 | $ 296 | $ 323 |
Additions for tax positions related to prior year | 77 | 25 | 32 |
Additions for tax positions related to current year | 9 | 8 | 10 |
Reductions for tax positions for prior years | (204) | (4) | (63) |
Settlements | (21) | (4) | (1) |
Lapse of statute of limitations | (2) | (2) | (2) |
Currency translation adjustment | 0 | (4) | (3) |
Balance at end of year | $ 174 | $ 315 | $ 296 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Projected Benefit Obligations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 394 | $ 425 | |
Service cost | 0 | 0 | |
Interest cost | 13 | 16 | $ 17 |
Actuarial loss (gain) | 1 | (8) | |
Settlements and curtailments | (2) | (14) | |
Effect of foreign exchange rates | 0 | 0 | |
Benefits paid | (25) | (25) | |
Benefit obligation at end of year | 381 | 394 | 425 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 265 | 283 | |
Actual return on plan assets, net of expenses | 11 | (11) | |
Employer contributions | 18 | 32 | |
Effect of foreign exchange rates | 0 | 0 | |
Benefits paid | (25) | (25) | |
Settlements | (2) | (14) | |
Fair value of plan assets at end of year | 267 | 265 | 283 |
Funded status at end of year (overfunded/(underfunded)) | (114) | (129) | |
Defined Benefit Plan, Accumulated Benefit Obligation | 381 | 394 | |
U.K. plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 391 | 415 | |
Service cost | 2 | 1 | |
Interest cost | 12 | 15 | 17 |
Actuarial loss (gain) | 87 | (5) | |
Settlements and curtailments | 0 | 0 | |
Effect of foreign exchange rates | (74) | (19) | |
Benefits paid | (14) | (16) | |
Benefit obligation at end of year | 404 | 391 | 415 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 368 | 390 | |
Actual return on plan assets, net of expenses | 42 | (1) | |
Employer contributions | 5 | 13 | |
Effect of foreign exchange rates | (65) | (18) | |
Benefits paid | (14) | (16) | |
Settlements | 0 | 0 | |
Fair value of plan assets at end of year | 336 | 368 | 390 |
Funded status at end of year (overfunded/(underfunded)) | (68) | (23) | |
Defined Benefit Plan, Accumulated Benefit Obligation | 404 | 391 | |
International plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 82 | 115 | |
Service cost | 2 | 2 | |
Interest cost | 2 | 2 | 4 |
Actuarial loss (gain) | 2 | (1) | |
Settlements and curtailments | (1) | (4) | |
Effect of foreign exchange rates | (1) | (4) | |
Benefits paid | (5) | (28) | |
Benefit obligation at end of year | 81 | 82 | 115 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 60 | 85 | |
Actual return on plan assets, net of expenses | 1 | 0 | |
Employer contributions | 3 | 8 | |
Effect of foreign exchange rates | 0 | (1) | |
Benefits paid | (5) | (28) | |
Settlements | (1) | (4) | |
Fair value of plan assets at end of year | 58 | 60 | $ 85 |
Funded status at end of year (overfunded/(underfunded)) | (23) | (22) | |
Defined Benefit Plan, Accumulated Benefit Obligation | $ 81 | $ 82 |
Employee Benefit Plans - Sche97
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Domestic plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | $ 4 | $ 2 |
Non-current liability | (118) | (131) |
Net amount recognized | (114) | (129) |
U.K. plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | 0 | 0 |
Non-current liability | (68) | (23) |
Net amount recognized | (68) | (23) |
International plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | 6 | 7 |
Non-current liability | (29) | (29) |
Net amount recognized | $ (23) | $ (22) |
Employee Benefit Plans - Sche98
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ 0 | $ 15 | $ 42 |
Prior service cost (credit) | (3) | (4) | (4) |
Amortization of net loss (gain) | (3) | (3) | (7) |
Net amount recognized | (6) | 8 | 31 |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 41 | 16 | 33 |
Prior service cost (credit) | 0 | 0 | 0 |
Amortization of net loss (gain) | (2) | (2) | (1) |
Net amount recognized | 39 | 14 | 32 |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 3 | 1 | 10 |
Prior service cost (credit) | 0 | 0 | 0 |
Amortization of net loss (gain) | (1) | (9) | (1) |
Net amount recognized | $ 2 | $ (8) | $ 9 |
Employee Benefit Plans - Sche99
Employee Benefit Plans - Schedule of Amounts in AOCI to be Recognized over Next Fiscal Year (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net losses | $ 2 | $ 2 | $ 3 |
Unrecognized prior service cost (credit) | 4 | 4 | 4 |
Amount unrecognized | 6 | 6 | 7 |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net losses | 4 | 2 | 2 |
Unrecognized prior service cost (credit) | 0 | 0 | 0 |
Amount unrecognized | 4 | 2 | 2 |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net losses | 0 | 0 | 1 |
Unrecognized prior service cost (credit) | 0 | 0 | 0 |
Amount unrecognized | $ 0 | $ 0 | $ 1 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Pension Cost (Credit) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8 | $ 7 | $ 7 |
Interest cost | 13 | 16 | 17 |
Expected return on plan assets | (19) | (19) | (18) |
Amortization of prior service cost | 4 | 4 | 4 |
Amortization of net loss | 3 | 3 | 1 |
Settlement losses | 0 | 0 | 5 |
Net periodic pension cost (credit) | 9 | 11 | 16 |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 1 |
Interest cost | 12 | 15 | 17 |
Expected return on plan assets | (22) | (25) | (24) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 2 | 2 | 1 |
Settlement losses | 0 | 0 | 0 |
Net periodic pension cost (credit) | (6) | (6) | (5) |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 3 | 2 |
Interest cost | 2 | 2 | 4 |
Expected return on plan assets | (3) | (4) | (4) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 0 | 0 | 1 |
Settlement losses | 0 | 10 | 1 |
Net periodic pension cost (credit) | $ 2 | $ 11 | $ 4 |
Employee Benefit Plans - Sch101
Employee Benefit Plans - Schedule of Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.00% | 4.30% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.20% | 3.90% | 4.70% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.30% | 7.50% | 7.50% |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.80% | 3.90% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 1.90% | 1.70% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Pension Increase | 3.10% | 2.80% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.90% | 3.80% | 4.70% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.50% | 6.50% | 6.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 1.70% | 1.60% | 1.90% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Pension Increase | 2.80% | 2.80% | 3.00% |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.10% | 3.50% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.10% | 2.10% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Pension Increase | 1.70% | 1.60% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.50% | 3.30% | 4.30% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 5.40% | 5.10% | 6.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.10% | 2.20% | 2.30% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Pension Increase | 1.60% | 1.80% | 1.90% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer Plans, Plan Assets | $ 289 | ||
Multiemployer Plans, Accumulated Benefit Obligation | 405 | ||
Defined Contribution Plan, Cost Recognized | 17 | $ 18 | $ 19 |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 21 | ||
Defined Benefit Plan, Benefit Obligation | 381 | 394 | 425 |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 8 | ||
Defined Benefit Plan, Benefit Obligation | 404 | 391 | 415 |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 4 | ||
Defined Benefit Plan, Benefit Obligation | 81 | 82 | $ 115 |
Supplemental plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | $ 19 | $ 17 | |
Supplemental Plan, Cost Recognized | 3 | less than $1 million | less than $1 million |
Equity Securities [Member] | Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 65.00% | 60.00% | |
Debt securities [member] | Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 35.00% | 40.00% | |
Common collective trusts [member] | U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 65.00% | 65.00% | |
Common collective trusts [member] | International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 65.00% | 65.00% | |
Bonds [Member] | U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 35.00% | 35.00% | |
Bonds [Member] | International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Plan Asset Allocations | 35.00% | 35.00% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Pension Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 267 | $ 265 | $ 283 |
Domestic plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 26 | 66 | |
Domestic plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 241 | 199 | |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 336 | 368 | 390 |
U.K. plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 336 | 368 | |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 58 | 60 | $ 85 |
International plans [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 14 | |
International plans [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45 | 46 | |
Cash and cash equivalents [member] | Domestic plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents [member] | Domestic plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents [member] | U.K. plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents [member] | U.K. plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents [member] | International plans [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 10 | |
Cash and cash equivalents [member] | International plans [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity funds [member] | Domestic plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | 64 | |
Equity funds [member] | Domestic plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity funds [member] | U.K. plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity funds [member] | U.K. plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity funds [member] | International plans [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 4 | |
Equity funds [member] | International plans [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 7 | |
Debt securities [member] | Domestic plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 2 | |
Debt securities [member] | Domestic plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62 | 71 | |
Debt securities [member] | U.K. plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Debt securities [member] | U.K. plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Debt securities [member] | International plans [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Debt securities [member] | International plans [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Bond funds [member] | Domestic plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Bond funds [member] | Domestic plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Bond funds [member] | U.K. plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Bond funds [member] | U.K. plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Bond funds [member] | International plans [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Bond funds [member] | International plans [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 7 | |
Common collective trusts [member] | Domestic plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common collective trusts [member] | Domestic plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 139 | 128 | |
Common collective trusts [member] | U.K. plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common collective trusts [member] | U.K. plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 336 | 368 | |
Common collective trusts [member] | International plans [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common collective trusts [member] | International plans [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | $ 32 | |
Other [member] | Domestic plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Other [member] | Domestic plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 40 | ||
Other [member] | U.K. plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Other [member] | U.K. plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Other [member] | International plans [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Other [member] | International plans [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 |
Employee Benefit Plans - Sch104
Employee Benefit Plans - Schedule of Expected Benefit Payments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Domestic plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 30 |
2,018 | 27 |
2,019 | 26 |
2,020 | 26 |
2,021 | 26 |
2022-2026 | 124 |
Defined Benefit Plan Expected Future Benefit Payments | 259 |
U.K. plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 13 |
2,018 | 13 |
2,019 | 13 |
2,020 | 14 |
2,021 | 14 |
2022-2026 | 73 |
Defined Benefit Plan Expected Future Benefit Payments | 140 |
International plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 9 |
2,018 | 5 |
2,019 | 5 |
2,020 | 5 |
2,021 | 5 |
2022-2026 | 24 |
Defined Benefit Plan Expected Future Benefit Payments | $ 53 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 25 | $ 16 | $ 81 | $ 147 | $ 69 | |
Tax benefit | 31 | 31 | $ 14 | |||
Share-based compensation liability accrued | 15 | $ 7 | ||||
Unrecognized compensation costs related to unvested awards | $ 171 | $ 83 | ||||
Unrecognized compensation costs related to unvested awards, weighted-average period | 2 years 5 months | 1 year 8 months 12 days | ||||
Shares of common stock reserved for future issuance | 29,922,923 | 21,823,633 | ||||
2015 and 2016 performance shares conversion percentage to restricted stock units | 100.00% | 100.00% | ||||
Incremental expense related to the modification of grants | $ 0 | $ 0.3 | ||||
Incremental expense related to modification of grants recognized over the remaining terms of the awards | $ 5.6 | |||||
Conversion from Performance Shares to Restricted Stock Units upon completion of the spin-offs | 671,604 | |||||
Deferred Share Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
DSU shares issued | 11,393 | 6,179 | ||||
Weighted average grant date fair value, granted | $ 66.12 | $ 84.96 | ||||
Employee stock option [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average remaining contractual term | 8 years 2 months 12 days | |||||
Vesting period | 3 years | |||||
Options, expiration period | 10 years | |||||
Options, grants in period, grant date fair value | $ 13.86 | $ 16.41 | 25.17 | $ 22.74 | ||
Restricted stock units (RSUs) [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value, granted | $ 58.02 | 59.73 | 82.38 | 64.59 | ||
Conversion from Performance Shares to Restricted Stock Units upon completion of the spin-offs | [1] | 671,604 | ||||
Restricted stock units (RSUs) [member] | Minimum [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Restricted stock units (RSUs) [member] | Maximum [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Performance shares [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Anticipated achievement percentage | 100.00% | |||||
Free cash flow CAGR [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value, granted | $ 58.02 | |||||
Vesting rights, percentage | 50.00% | |||||
EBITDA CAGR [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant date fair value, granted | $ 58.02 | $ 58.83 | $ 82.38 | $ 64.59 | ||
Conversion from Performance Shares to Restricted Stock Units upon completion of the spin-offs | 335,802 | |||||
Vesting rights, percentage | 50.00% | |||||
[1] | Represents all performance shares outstanding as of December 31, 2016. |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Additional Information on Restricted Stock Units (Detail) - Restricted stock units (RSUs) [member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule Of Additional Information On Restricted Stock Units [Line Items] | |||||
Number of shares granted | 1,313,783 | 1,169,238 | 679,546 | 1,883,454 | |
Weighted average grant date fair value per share | $ 58.02 | $ 59.73 | $ 82.38 | $ 64.59 | |
Fair value of shares vested (in millions) | $ 40 | $ 90 | $ 0 | [1] | |
[1] | The fair value of shares vested during the year ended December 31, 2014 was less than $1 million. |
Share-Based Compensation - S107
Share-Based Compensation - Schedule of Restricted Stock Units Award Activity (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion from Performance Shares to Restricted Stock Units upon completion of the spin-offs | 671,604 | |||||
Restricted stock units (RSUs) [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding, beginning balance | 1,624,541 | 1,246,084 | ||||
Conversion from Performance Shares to Restricted Stock Units upon completion of the spin-offs | [1] | 671,604 | ||||
Effect of the spin-offs | 439,113 | |||||
Granted | 1,313,783 | 1,169,238 | 679,546 | 1,883,454 | ||
Vested | (876,145) | (683,262) | ||||
Forfeited | (47,971) | (107,519) | ||||
Outstanding, ending balance | 3,124,925 | 1,624,541 | 1,246,084 | |||
Weighted average grant date fair value, outstanding beginning balance | $ 65.24 | $ 73.44 | ||||
Weighted average grant date fair value, conversion from Performance Shares to Restricted Stock Units upon completion of the spin-offs | [1] | 72.42 | ||||
Weighted average grant date fair value, effect of the spin-offs | 57.60 | |||||
Weighted average grant date fair value, granted | 58.02 | 59.73 | $ 82.38 | $ 64.59 | ||
Weighted average grant date fair value, vested | 47.19 | 70.50 | ||||
Weighted average grant date fair value, forfeited | 47.97 | 66.90 | ||||
Weighted average grant date fair value, outstanding ending balance | $ 52.01 | [2] | $ 65.24 | $ 73.44 | ||
[1] | Represents all performance shares outstanding as of December 31, 2016. | |||||
[2] | The weighted average grant date fair value was adjusted to reflect the Conversion Factor. |
Share-Based Compensation - S108
Share-Based Compensation - Schedule of Additional Information on Stock Options (Detail) - Employee stock option [member] - $ / shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Additional Information on Stock Options [Line Items] | ||||
Number of options granted | 710,967 | 503,150 | 309,528 | 334,530 |
Weighted average exercise price per share | $ 58.02 | $ 58.83 | $ 82.38 | $ 64.59 |
Weighted average grant date fair value per share | $ 13.86 | $ 16.41 | $ 25.17 | $ 22.74 |
Share-Based Compensation - S109
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Detail) - Employee stock option [member] | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected volatility rate | [1] | 24.00% | 32.00% | 28.00% | 33.00% | ||||
Dividend yield | 1.03% | [2] | 1.43% | [3] | 0.00% | [3] | 0.00% | [3] | |
Risk-free interest rate | [4] | 2.03% | 1.36% | 1.67% | 1.85% | ||||
Expected term (in years) | [5] | 6 years | 6 years | 6 years | 6 years | ||||
[1] | Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. | ||||||||
[2] | Estimated based on the expected annualized dividend payment at the date of grant. | ||||||||
[3] | Estimated based on the expected annualized dividend payment at the date of grant. For the 2014 and 2015 options, we had no plans to pay dividends during the expected term at the time of grant. | ||||||||
[4] | Based on the yields of U.S. Department of Treasury instruments with similar expected lives. | ||||||||
[5] | Estimated using the average of the vesting periods and the contractual term of the options. |
Share-Based Compensation - S110
Share-Based Compensation - Schedule of Stock Options Activity (Detail) - Employee stock option [member] - $ / shares | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding, beginning balance | 1,076,031 | 616,832 | |||
Effect of the spin-offs | 251,145 | ||||
Granted | 710,967 | 503,150 | 309,528 | 334,530 | |
Exercised | (10,681) | (5,724) | |||
Forfeited, canceled or expired | (2,146) | (38,227) | |||
Outstanding, ending balance | 2,025,316 | 1,076,031 | 616,832 | ||
Exercisable | 793,005 | 293,517 | |||
Weighted average exercise price, beginning balance | $ 66.83 | $ 73.47 | |||
Weighted average exercise price, effect of the spin-offs | 57.60 | ||||
Weighted average exercise price, granted | 58.02 | 58.83 | $ 82.38 | $ 64.59 | |
Weighted average exercise price, exercised | 45.35 | 64.59 | |||
Weighted average exercise price, forfeited, canceled or expired | 57.99 | 69.03 | |||
Weighted average exercise price, ending balance | 50.89 | [1] | 66.83 | $ 73.47 | |
Weighted average exercise price, exercisable | $ 48.23 | [1] | $ 70.57 | ||
[1] | The weighted average exercise price was adjusted to reflect the Conversion Factor. |
Share-Based Compensation - S111
Share-Based Compensation - Schedule of Additional Information on Performance Shares (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Relative shareholder return [member] | ||||
Schedule of Additional Information on Performance Shares [Line Items] | ||||
Number of shares granted | 300,784 | 204,523 | 176,661 | |
Weighted average grant date fair value per share | $ 62.43 | $ 98.94 | $ 70.68 | |
Fair value of shares vested (in millions) | $ 16 | $ 0 | $ 0 | |
EBITDA CAGR [member] | ||||
Schedule of Additional Information on Performance Shares [Line Items] | ||||
Number of shares granted | 169,843 | 300,784 | 204,523 | 176,661 |
Weighted average grant date fair value per share | $ 58.02 | $ 58.83 | $ 82.38 | $ 64.59 |
Fair value of shares vested (in millions) | $ 12 | $ 0 | $ 0 |
Share-Based Compensation - S112
Share-Based Compensation - Schedule of Performance Shares Valuation Assumptions (Detail) - Relative shareholder return [member] | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 31.00% | 24.00% | 30.00% |
Dividend yield | [2] | 0.00% | 0.00% | 0.00% |
Risk-free rate | [3] | 0.92% | 1.04% | 0.70% |
Expected term | [4] | 2 years 9 months | 2 years 9 months | 2 years 9 months |
[1] | Due to limited trading history for our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. | |||
[2] | As dividends are assumed to be reinvested in shares of common stock and dividends will not be paid to the participants of the performance shares unless the shares vest, we utilized a dividend yield of zero percent. | |||
[3] | Based on the yields of U.S. Department of Treasury instruments with similar expected lives. | |||
[4] | Midpoint of the 30-calendar day period preceding the end of the performance period. |
Share-Based Compensation - S113
Share-Based Compensation - Schedule of Performance Shares Activity (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion from Performance Shares to Restricted Stock Units upon completion of the spin-offs | (671,604) | |||
EBITDA CAGR [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning balance | 335,802 | 366,361 | ||
Conversion from Performance Shares to Restricted Stock Units upon completion of the spin-offs | (335,802) | |||
Granted | 169,843 | 300,784 | 204,523 | 176,661 |
Vested | (152,835) | |||
Forfeited | (178,508) | |||
Outstanding, ending balance | 169,843 | 335,802 | 366,361 | |
Weighted average grant date fair value, outstanding beginning balance | $ 68.09 | $ 74.49 | ||
Weighted average grant date fair value, conversion from Performance Shares to Restricted Stock Units upon completion of the spin-offs | 68.09 | |||
Weighted average grant date fair value, granted | 58.02 | 58.83 | $ 82.38 | $ 64.59 |
Weighted average grant date fair value, vested | 64.59 | |||
Weighted average grant date fair value, forfeited | 68.61 | |||
Weighted average grant date fair value, outstanding ending balance | $ 58.02 | $ 68.09 | $ 74.49 | |
Free cash flow CAGR [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning balance | 0 | |||
Granted | 169,812 | |||
Outstanding, ending balance | 169,812 | 0 | ||
Weighted average grant date fair value, granted | $ 58.02 | |||
Weighted average grant date fair value, outstanding ending balance | $ 58.02 | |||
Relative shareholder return [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning balance | 335,802 | 366,361 | ||
Granted | 300,784 | 204,523 | 176,661 | |
Vested | (152,835) | |||
Forfeited | (178,508) | |||
Outstanding, ending balance | 335,802 | 366,361 | ||
Weighted average grant date fair value, outstanding beginning balance | $ 76.74 | $ 86.37 | ||
Weighted average grant date fair value, granted | 62.43 | $ 98.94 | $ 70.68 | |
Weighted average grant date fair value, vested | 70.68 | |||
Weighted average grant date fair value, forfeited | 77.58 | |||
Weighted average grant date fair value, outstanding ending balance | $ 76.74 | $ 86.37 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||||
Net income (loss) from continuing operations attributable to Hilton stockholders | $ 74 | $ 192 | $ (18) | $ 876 | $ 174 | ||||||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||||||
Weighted average shares outstanding, basic | 330 | 329 | 329 | 329 | 328 | ||||||||||||||||||
Basic earnings (loss) per share | $ 0.22 | $ (1.20) | $ 0.27 | $ 0.29 | $ 0.58 | [1],[2] | $ 2.09 | $ 0.47 | $ 0.11 | $ 0 | $ (0.05) | [1],[3] | $ 2.67 | [3] | $ 0.53 | [3] | |||||||
Diluted earnings (loss) per share: | |||||||||||||||||||||||
Weighted average shares outstanding, diluted | 331 | 330 | 329 | 330 | 329 | ||||||||||||||||||
Diluted earnings (loss) per share | $ 0.22 | $ (1.20) | $ 0.27 | $ 0.29 | $ 0.58 | [1],[2] | $ 2.09 | [1] | $ 0.47 | [1] | $ 0.11 | [1] | $ 0 | [1] | $ (0.05) | [1],[3] | $ 2.66 | [1],[3] | $ 0.53 | [3] | |||
Share based compensation awards [member] | |||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||||||
Antidilutive securities excluded from computation of earnings (loss) per share | 1 | 1 | 2 | 1 | 1 | ||||||||||||||||||
[1] | The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. | ||||||||||||||||||||||
[2] | Weighted average shares outstanding used in the computation of basic and diluted earnings per share and cash dividends declared per share were adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. | ||||||||||||||||||||||
[3] | Weighted average shares outstanding used in the computation of basic and diluted earnings per share and cash dividends declared per share were adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. |
Accumulated Other Comprehens115
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Tax expense on pension liability adjustment reclassifications | [1] | $ (3) | $ (3) | $ (3) | ||||
Tax benefit on cash flow hedge adjustment reclassifications | [1] | (1) | 0 | 0 | ||||
Beginning balance | $ (1,001) | $ (784) | (784) | (628) | (264) | |||
Other comprehensive income (loss) before reclassifications | 16 | 9 | (225) | (178) | (357) | |||
Amounts reclassified from accumulated other comprehensive loss | 4 | 1 | 8 | 22 | (1) | |||
Net current period other comprehensive income (loss) | 20 | 10 | (217) | (156) | (358) | |||
Spin-offs of Park and HGV | 63 | |||||||
Equity contributions to consolidated variable interest entities | 0 | |||||||
Ending balance | (918) | (774) | (1,001) | (784) | (628) | |||
Currency translation adjustment [member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | [2] | (738) | (580) | (580) | (446) | (136) | ||
Other comprehensive income (loss) before reclassifications | [2] | 21 | 15 | (157) | (150) | (299) | ||
Amounts reclassified from accumulated other comprehensive loss | [2] | 0 | 0 | (1) | 16 | (5) | ||
Net current period other comprehensive income (loss) | [2] | 21 | 15 | (158) | (134) | (304) | ||
Spin-offs of Park and HGV | [2] | 63 | ||||||
Equity contributions to consolidated variable interest entities | (6) | |||||||
Ending balance | [2] | (654) | (565) | (738) | (580) | (446) | ||
Pension liability adjustment [member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Tax expense on pension liability adjustment reclassifications | 1 | [3] | 1 | [4] | ||||
Beginning balance | (251) | (194) | (194) | (179) | (134) | |||
Other comprehensive income (loss) before reclassifications | (1) | 0 | (63) | (21) | (49) | |||
Amounts reclassified from accumulated other comprehensive loss | 2 | [3] | 1 | [4] | 6 | 6 | 4 | |
Net current period other comprehensive income (loss) | 1 | 1 | (57) | (15) | (45) | |||
Spin-offs of Park and HGV | [3] | 0 | ||||||
Ending balance | (250) | (193) | (251) | (194) | (179) | |||
Cash flow hedge adjustment [member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Tax benefit on cash flow hedge adjustment reclassifications | [5] | (1) | ||||||
Beginning balance | (12) | (10) | (10) | (3) | 6 | |||
Other comprehensive income (loss) before reclassifications | (4) | (6) | (5) | (7) | (9) | |||
Amounts reclassified from accumulated other comprehensive loss | 2 | [5] | 0 | 3 | 0 | 0 | ||
Net current period other comprehensive income (loss) | (2) | (6) | (2) | (7) | (9) | |||
Spin-offs of Park and HGV | [5] | 0 | ||||||
Ending balance | $ (14) | $ (16) | $ (12) | $ (10) | (3) | |||
Accumulated Other Comprehensive Loss [member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Equity contributions to consolidated variable interest entities | $ (6) | |||||||
[1] | Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. | |||||||
[2] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. | |||||||
[3] | Amounts reclassified include the amortization of prior service cost and net loss that were included in our computation of net periodic pension cost. They were recognized in general and administrative expenses, net of a $1 million tax benefit, in our condensed consolidated statement of operations. | |||||||
[4] | Amounts reclassified were recognized in general and administrative expenses, net of a $1 million tax benefit, in our condensed consolidated statement of operations. | |||||||
[5] | Amounts reclassified related to the 2013 Interest Rate Swaps and were recognized in interest expense, net of a $1 million tax benefit, in our condensed consolidated statement of operations. |
Accumulated Other Comprehens116
Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax benefit on currency translation adjustment reclassifications | [1],[2] | $ 0 | $ 9 | $ 0 | |||||||
Amortization of prior service cost | [3] | (4) | (4) | (4) | |||||||
Amortization of net loss | [3] | (5) | (5) | (3) | |||||||
Tax expense on pension liability adjustment reclassifications | [1] | 3 | 3 | 3 | |||||||
Dedesignation of interest rate swaps | [4] | (4) | 0 | 0 | |||||||
Tax benefit on cash flow hedge adjustment reclassifications | [1] | 1 | 0 | 0 | |||||||
Amounts reclassified from accumulated other comprehensive loss | $ (4) | $ (1) | (8) | (22) | 1 | ||||||
Sale and liquidation of foreign assets [member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Currency translation adjustment reclassifications | 0 | (25) | [5] | 3 | [5] | ||||||
Gains on net investment hedges [member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Currency translation adjustment reclassifications | 1 | [6] | 0 | 2 | [6] | ||||||
Currency translation adjustment [member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | [7] | 0 | 0 | 1 | (16) | 5 | |||||
Pension liability adjustment [member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax expense on pension liability adjustment reclassifications | (1) | [8] | (1) | [9] | |||||||
Amounts reclassified from accumulated other comprehensive loss | (2) | [8] | (1) | [9] | (6) | (6) | (4) | ||||
Cash flow hedge adjustment [member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Tax benefit on cash flow hedge adjustment reclassifications | [10] | 1 | |||||||||
Amounts reclassified from accumulated other comprehensive loss | $ (2) | [10] | $ 0 | $ (3) | $ 0 | $ 0 | |||||
[1] | Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. | ||||||||||
[2] | The tax benefit was less than $1 million for the years ended December 31, 2016 and 2014. | ||||||||||
[3] | Reclassified out of accumulated other comprehensive loss to general and administrative expenses in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost. See Note 16: "Employee Benefit Plans" for additional information. | ||||||||||
[4] | Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statement of operations. | ||||||||||
[5] | Reclassified out of accumulated other comprehensive loss to gain on sales of assets, net for the year ended December 31, 2015 and other non-operating income, net for the year ended December 31, 2014 in our consolidated statements of operations. | ||||||||||
[6] | Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. | ||||||||||
[7] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. | ||||||||||
[8] | Amounts reclassified include the amortization of prior service cost and net loss that were included in our computation of net periodic pension cost. They were recognized in general and administrative expenses, net of a $1 million tax benefit, in our condensed consolidated statement of operations. | ||||||||||
[9] | Amounts reclassified were recognized in general and administrative expenses, net of a $1 million tax benefit, in our condensed consolidated statement of operations. | ||||||||||
[10] | Amounts reclassified related to the 2013 Interest Rate Swaps and were recognized in interest expense, net of a $1 million tax benefit, in our condensed consolidated statement of operations. |
Business Segments - Hotel Prope
Business Segments - Hotel Properties by Segment (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017HotelRoomSegments | Dec. 31, 2016HotelRoomSegments | |
Segment Reporting Information [Line Items] | ||
Number of operating business segments | Segments | 2 | 2 |
Management and franchise [member] | ||
Segment Reporting Information [Line Items] | ||
Number of managed hotels | 624 | 559 |
Number of franchised hotels | 4,236 | 4,175 |
Number of managed and franchised hotels | 4,860 | 4,734 |
Number of managed and franchised hotel rooms | Room | 781,978 | 738,724 |
Ownership [member] | ||
Segment Reporting Information [Line Items] | ||
Number of owned and leased hotels | 74 | 74 |
Number of owned and leased hotel rooms | Room | 22,278 | 22,291 |
Number of wholly owned and leased hotels | 65 | 65 |
Number of non-wholly owned hotels | 1 | 1 |
Number of hotels of consolidated VIEs | 2 | 2 |
Number of hotels owned or leased by unconsolidated joint ventures | 6 | 6 |
Discontinued operations, disposed of by means other than sale, spinoff [member] | ||
Segment Reporting Information [Line Items] | ||
Number of managed and franchised hotels | 67 | |
Number of managed and franchised hotel rooms | Room | 35,425 | |
Number of owned and leased hotels | 58 | |
Number of hotels owned or leased by unconsolidated joint ventures | 9 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenue from Segment Amounts to Consolidated Amounts (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | $ 2,161 | $ 1,839 | $ 1,867 | $ 1,950 | $ 1,726 | $ 1,811 | $ 1,847 | $ 1,845 | $ 1,630 | $ 7,382 | $ 7,133 | $ 6,688 | |||||
Other revenues | 37 | 17 | 82 | 71 | 80 | ||||||||||||
Other revenues from managed and franchised properties | 1,395 | 1,041 | 4,310 | 4,011 | 3,567 | ||||||||||||
Ownership [member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | 300 | 319 | 1,452 | 1,596 | 1,776 | ||||||||||||
Management and franchise [member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | 436 | [1] | 357 | [1] | 1,580 | [2] | 1,496 | [2] | 1,302 | [2] | |||||||
Operating segments [member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | 736 | 676 | 3,032 | 3,092 | 3,078 | ||||||||||||
Intersegment eliminations [member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | $ (7) | [1] | $ (8) | [1] | $ (42) | [2] | $ (41) | [2] | $ (37) | [2] | |||||||
[1] | Includes management, royalty and intellectual property fees charged to our ownership segment, which were eliminated in our condensed consolidated financial statements. | ||||||||||||||||
[2] | Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated financial statements. |
Business Segments - Reconcil119
Business Segments - Reconciliation of Segment Operating Income to Consolidated Income from Continuing Operations before Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||
Operating income | $ 277 | $ 244 | $ 265 | $ 273 | $ 170 | $ 231 | $ 391 | $ 135 | $ 143 | $ 952 | $ 900 | $ 703 | |||||
Other revenues, less other expenses | 14 | (1) | 31 | 31 | 22 | ||||||||||||
Depreciation and amortization | (89) | (92) | (364) | (385) | (363) | ||||||||||||
Impairment loss | 0 | (15) | (15) | (9) | 0 | ||||||||||||
General and administrative | (105) | (83) | (403) | (537) | (411) | ||||||||||||
Gain on sales of assets, net | 8 | 163 | 0 | ||||||||||||||
Interest expense | (104) | (90) | (394) | (377) | (416) | ||||||||||||
Gain (loss) on foreign currency transactions | (4) | (12) | (16) | (41) | 26 | ||||||||||||
Loss on debt extinguishment | (60) | 0 | |||||||||||||||
Other non-operating income, net | 1 | 2 | 14 | 51 | 20 | ||||||||||||
Income from continuing operations before income taxes | 110 | 70 | 556 | 533 | 333 | ||||||||||||
Management and franchise [member] | |||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||
Operating income | 436 | [1] | 357 | [1] | 1,580 | [2] | 1,496 | [2] | 1,302 | [2] | |||||||
Ownership [member] | |||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||
Operating income | 21 | [1] | 4 | [1] | 115 | [2] | 141 | [2] | 153 | [2] | |||||||
Operating segments [member] | |||||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||||||||
Operating income | $ 457 | $ 361 | $ 1,695 | $ 1,637 | $ 1,455 | ||||||||||||
[1] | Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated financial statements. | ||||||||||||||||
[2] | Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated financial statements. |
Business Segments - Schedule of
Business Segments - Schedule of Assets by Segment (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 14,287 | $ 26,211 | $ 25,622 |
Total assets of continuing operations | 14,386 | 14,154 | |
Corporate and other [member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,536 | 2,529 | 1,960 |
Management and franchise [member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 10,806 | 10,825 | 11,078 |
Ownership [member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 945 | $ 1,032 | $ 1,116 |
Business Segments - Schedule121
Business Segments - Schedule of Capital Expenditures by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||||
Capital expenditures for property and equipment | $ 9 | $ 84 | $ 317 | $ 310 | $ 268 |
Capital expenditures for property and equipment of continuing operations | 16 | 62 | 67 | 84 | |
Corporate and other [member] | |||||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||||
Capital expenditures for property and equipment | 3 | 3 | 17 | 15 | 8 |
Ownership [member] | |||||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||||
Capital expenditures for property and equipment | $ 6 | $ 13 | $ 45 | $ 52 | $ 76 |
Business Segments - Schedule122
Business Segments - Schedule of Revenue from External Customers by Geographic Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue from External Customer [Line Items] | ||||||||||||
Total revenues | $ 2,161 | $ 1,839 | $ 1,867 | $ 1,950 | $ 1,726 | $ 1,811 | $ 1,847 | $ 1,845 | $ 1,630 | $ 7,382 | $ 7,133 | $ 6,688 |
United States [member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total revenues | 5,315 | 4,935 | 4,355 | |||||||||
United Kingdom [member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total revenues | 955 | 1,017 | 874 | |||||||||
All other [member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total revenues | $ 1,112 | $ 1,181 | $ 1,459 |
Business Segments - Schedule123
Business Segments - Schedule of Property and Equipment, Net by Country (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | $ 341 | $ 341 | $ 411 |
United States [member] | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 92 | 141 | |
Japan [member] | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 87 | 76 | |
United Kingdom [member] | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 79 | 100 | |
Germany [member] | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 35 | 37 | |
All other [member] | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | $ 48 | $ 57 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)Contract | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($) | |
Commitments and Contingencies [Line Items] | ||||
Current liabilities | $ 1,967 | $ 2,684 | $ 2,465 | |
Guarantees for debt and other obligations of third parties [member] | ||||
Commitments and Contingencies [Line Items] | ||||
Guarantor obligations, maximum exposure, undiscounted | $ 5 | $ 5 | ||
Guarantor obligations, term | Six years | seven years | ||
Number of letters of credit pledged as collateral | 1 | 1 | ||
Letters of credit outstanding, amount | $ 5 | $ 25 | ||
Management contract performance guarantees [member] | ||||
Commitments and Contingencies [Line Items] | ||||
Guarantor obligations, maximum exposure, undiscounted | $ 70 | $ 69 | ||
Guarantor obligations, term | 2019 to 2030 | 2019 to 2030 | ||
Number of contracts with performance guarantees | Contract | 7 | 7 | ||
Current liabilities | $ 12 | $ 11 | 8 | |
Non-current liabilities | $ 15 | 17 | 25 | |
Number of contracts with performance guarantees with recorded liabilities | Contract | 2 | |||
Loan commitment [member] | ||||
Commitments and Contingencies [Line Items] | ||||
Long-term purchase commitment, amount | $ 60 | 60 | ||
Commitment payments year to date | 8 | $ 8 | 34 | $ 17 |
2017 fund commitment | $ 9 | |||
Other commitments, future minimum payments, remainder of fiscal year | $ 1 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions, by Related Party (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Accounts receivable, net | $ 911 | $ 755 | $ 664 | ||
Management and franchise contracts, net | 930 | 963 | 1,089 | ||
Accounts payable, accrued expenses and other | 1,798 | 1,821 | 1,619 | ||
Franchise fees | 294 | $ 253 | 1,154 | 1,087 | $ 905 |
Base and other management fees | 83 | 60 | 242 | 230 | 227 |
Incentive management fees | 52 | 36 | 142 | 138 | 133 |
Other revenues from managed and franchised properties | 1,395 | 1,041 | 4,310 | 4,011 | 3,567 |
Depreciation and amortization | 89 | 92 | 364 | 385 | 363 |
Other expenses from managed and franchised properties | 1,395 | 1,041 | 4,310 | 4,011 | 3,567 |
Contract acquisition costs | $ 13 | $ 9 | 55 | 37 | 65 |
Investments in affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable, net | 4 | 8 | |||
Management and franchise contracts, net | 20 | 20 | |||
Accounts payable, accrued expenses and other | 1 | 2 | |||
Franchise fees | 1 | 1 | 1 | ||
Base and other management fees | 8 | 6 | 6 | ||
Incentive management fees | 4 | 2 | 1 | ||
Other revenues from managed and franchised properties | 21 | 31 | 32 | ||
Other expenses from managed and franchised properties | 21 | 31 | 32 | ||
Contract acquisition costs | 0 | 4 | 0 | ||
The Blackstone Group And Affiliates [member] | |||||
Related Party Transaction [Line Items] | |||||
Accounts receivable, net | 18 | 21 | |||
Management and franchise contracts, net | 13 | 16 | |||
Accounts payable, accrued expenses and other | 8 | 9 | |||
Franchise fees | 29 | 34 | 33 | ||
Base and other management fees | 10 | 11 | 23 | ||
Incentive management fees | 3 | 3 | 4 | ||
Other revenues from managed and franchised properties | 144 | 160 | 293 | ||
Depreciation and amortization | 1 | 0 | 0 | ||
Other expenses from managed and franchised properties | 144 | 160 | 293 | ||
Contract acquisition costs | $ 0 | $ 0 | $ 7 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
The Blackstone Group And Affiliates [member] | |||
Related Party Transaction [Line Items] | |||
Purchases of products and services | $ 9 | $ 32 | $ 31 |
Supplemental Disclosures of 127
Supplemental Disclosures of Cash Flow Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2014 | |
Other Significant Noncash Transactions [Line Items] | ||||||
Non-cash conversion of Park's property and equipment to timeshare inventory of HGV | $ 0 | $ 22 | ||||
Non-cash capital lease obligation reduction | $ 24 | |||||
Interest Paid [Abstract] | ||||||
Interest paid | 113 | 86 | $ 478 | 485 | $ 514 | |
Income Taxes Paid, Net [Abstract] | ||||||
Income taxes paid | $ 6 | $ 39 | 677 | 475 | 429 | |
Discontinued operations, disposed of by means other than sale, spinoff [member] | ||||||
Other Significant Noncash Transactions [Line Items] | ||||||
Non-cash conversion of Park's property and equipment to timeshare inventory of HGV | $ 116 | 45 | ||||
Mortgage loan assumed by Park | $ 450 | |||||
Non-cash capital lease asset increase | 11 | |||||
Non-cash capital lease obligation increase | $ 11 | |||||
Discontinued operations, disposed of by means other than sale, spinoff [member] | Equity investments exchange for Park [member] | ||||||
Other Significant Noncash Transactions [Line Items] | ||||||
Property and equipment | $ 144 | |||||
Other intangible assets | 1 | |||||
Long-term debt | 64 | |||||
Equity investments | $ 59 |
Condensed Consolidating Guar128
Condensed Consolidating Guarantor Financial Information - Additional Information (Detail) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
HWF Issuers [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ownership percentage of equity interest | 100.00% | 100.00% | 100.00% | 100.00% |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ownership percentage of equity interest | 100.00% | 100.00% | 100.00% | 100.00% |
Condensed Consolidating Guar129
Condensed Consolidating Guarantor Financial Information - Condensed Balance Sheet (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Current Assets: | ||||||||||
Cash and cash equivalents | $ 862 | $ 1,062 | $ 513 | |||||||
Restricted cash and cash equivalents | 124 | 121 | 120 | |||||||
Accounts receivable, net | 911 | 755 | 664 | |||||||
Intercompany receivables | 0 | 0 | ||||||||
Prepaid expenses | 129 | 89 | 112 | |||||||
Income taxes receivable | 0 | 13 | 97 | |||||||
Other | 43 | 39 | 35 | |||||||
Current assets of discontinued operations | 0 | 1,478 | 1,044 | |||||||
Total current assets | 2,069 | 3,557 | 2,585 | |||||||
Intangibles and Other Assets: | ||||||||||
Investments in subsidiaries | 0 | 0 | 0 | |||||||
Goodwill | 5,135 | 5,218 | 5,280 | $ 5,360 | ||||||
Brands | 4,856 | [1] | 4,848 | [2] | 4,919 | [2] | ||||
Management and franchise contracts, net | 930 | 963 | 1,089 | |||||||
Other intangible assets, net | 431 | 447 | 523 | |||||||
Property and equipment, net | 341 | 341 | 411 | |||||||
Deferred income tax assets | 82 | 82 | 59 | |||||||
Other | 443 | 408 | 332 | |||||||
Non-current assets of discontinued operations | 0 | 10,347 | 10,424 | |||||||
Total intangibles and other assets | 12,218 | 22,654 | 23,037 | |||||||
Total assets | 14,287 | 26,211 | 25,622 | |||||||
Current Liabilities: | ||||||||||
Accounts payable, accrued expenses and other | 1,798 | 1,821 | 1,619 | |||||||
Intercompany payables | 0 | 0 | ||||||||
Current maturities of long-term debt | [3] | 41 | 33 | 7 | ||||||
Income taxes payable | 128 | 56 | 27 | |||||||
Current liabilities of discontinued operations | 0 | 774 | 812 | |||||||
Total current liabilities | 1,967 | 2,684 | 2,465 | |||||||
Long-term debt | 6,588 | 6,583 | 5,887 | |||||||
Deferred revenues | 22 | 42 | 251 | |||||||
Deferred income tax liabilities | 1,723 | 1,778 | 1,875 | |||||||
Liability for guest loyalty program | 898 | 889 | 784 | |||||||
Other | 1,493 | 1,492 | 1,265 | |||||||
Non-current liabilities of discontinued operations | 0 | 6,894 | 7,144 | |||||||
Total liabilities | 12,691 | 20,362 | 19,671 | |||||||
Equity: | ||||||||||
Total Hilton stockholders' equity | 1,598 | 5,899 | 5,985 | |||||||
Noncontrolling interests | (2) | (50) | (34) | |||||||
Total equity | 1,596 | 5,849 | $ 6,205 | 5,951 | $ 4,714 | $ 4,276 | ||||
Total liabilities and equity | 14,287 | 26,211 | 25,622 | |||||||
Eliminations [Member] | ||||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Restricted cash and cash equivalents | 0 | 0 | 0 | |||||||
Accounts receivable, net | 0 | 0 | 0 | |||||||
Intercompany receivables | (40) | (42) | ||||||||
Prepaid expenses | (1) | (3) | (3) | |||||||
Income taxes receivable | (17) | (23) | ||||||||
Other | 0 | 0 | 0 | |||||||
Current assets of discontinued operations | (24) | (26) | ||||||||
Total current assets | (41) | (86) | (52) | |||||||
Intangibles and Other Assets: | ||||||||||
Investments in subsidiaries | (18,278) | (35,661) | (24,477) | |||||||
Goodwill | 0 | 0 | 0 | |||||||
Brands | 0 | 0 | 0 | |||||||
Management and franchise contracts, net | 0 | 0 | 0 | |||||||
Other intangible assets, net | 0 | 0 | 0 | |||||||
Property and equipment, net | 0 | 0 | 0 | |||||||
Deferred income tax assets | (188) | (179) | (27) | |||||||
Other | 0 | 0 | 0 | |||||||
Non-current assets of discontinued operations | (10) | 0 | ||||||||
Total intangibles and other assets | (18,466) | (35,850) | (24,504) | |||||||
Total assets | (18,507) | (35,936) | (24,556) | |||||||
Current Liabilities: | ||||||||||
Accounts payable, accrued expenses and other | (1) | (3) | (3) | |||||||
Intercompany payables | (40) | (42) | ||||||||
Current maturities of long-term debt | 0 | 0 | 0 | |||||||
Income taxes payable | 0 | (17) | (23) | |||||||
Current liabilities of discontinued operations | (24) | (26) | ||||||||
Total current liabilities | (41) | (86) | (52) | |||||||
Long-term debt | 0 | 0 | 0 | |||||||
Deferred revenues | 0 | 0 | 0 | |||||||
Deferred income tax liabilities | (188) | (179) | (27) | |||||||
Liability for guest loyalty program | 0 | 0 | 0 | |||||||
Other | 0 | 0 | 0 | |||||||
Non-current liabilities of discontinued operations | (10) | 0 | ||||||||
Total liabilities | (229) | (275) | (79) | |||||||
Equity: | ||||||||||
Total Hilton stockholders' equity | (18,278) | (35,661) | (24,477) | |||||||
Noncontrolling interests | 0 | 0 | 0 | |||||||
Total equity | (18,278) | (35,661) | (24,477) | |||||||
Total liabilities and equity | (18,507) | (35,936) | (24,556) | |||||||
Parent [Member] | ||||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Restricted cash and cash equivalents | 0 | 0 | 0 | |||||||
Accounts receivable, net | 0 | 0 | 0 | |||||||
Intercompany receivables | 0 | 0 | ||||||||
Prepaid expenses | 0 | 0 | 0 | |||||||
Income taxes receivable | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | |||||||
Current assets of discontinued operations | 0 | 0 | ||||||||
Total current assets | 0 | 0 | 0 | |||||||
Intangibles and Other Assets: | ||||||||||
Investments in subsidiaries | 1,588 | 5,889 | 6,166 | |||||||
Goodwill | 0 | 0 | 0 | |||||||
Brands | 0 | 0 | 0 | |||||||
Management and franchise contracts, net | 0 | 0 | 0 | |||||||
Other intangible assets, net | 0 | 0 | 0 | |||||||
Property and equipment, net | 0 | 0 | 0 | |||||||
Deferred income tax assets | 10 | 10 | 24 | |||||||
Other | 0 | 0 | 0 | |||||||
Non-current assets of discontinued operations | 0 | 0 | ||||||||
Total intangibles and other assets | 1,598 | 5,899 | 6,190 | |||||||
Total assets | 1,598 | 5,899 | 6,190 | |||||||
Current Liabilities: | ||||||||||
Accounts payable, accrued expenses and other | 0 | 0 | 0 | |||||||
Intercompany payables | 0 | 0 | ||||||||
Current maturities of long-term debt | 0 | 0 | 0 | |||||||
Income taxes payable | 0 | 0 | 0 | |||||||
Current liabilities of discontinued operations | 0 | 0 | ||||||||
Total current liabilities | 0 | 0 | 0 | |||||||
Long-term debt | 0 | 0 | 0 | |||||||
Deferred revenues | 0 | 0 | 0 | |||||||
Deferred income tax liabilities | 0 | 0 | 0 | |||||||
Liability for guest loyalty program | 0 | 0 | 0 | |||||||
Other | 0 | 0 | 205 | |||||||
Non-current liabilities of discontinued operations | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | 205 | |||||||
Equity: | ||||||||||
Total Hilton stockholders' equity | 1,598 | 5,899 | 5,985 | |||||||
Noncontrolling interests | 0 | 0 | 0 | |||||||
Total equity | 1,598 | 5,899 | 5,985 | |||||||
Total liabilities and equity | 1,598 | 5,899 | 6,190 | |||||||
HWF Issuers [Member] | ||||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||
Restricted cash and cash equivalents | 0 | 0 | 0 | |||||||
Accounts receivable, net | 0 | 0 | 0 | |||||||
Intercompany receivables | 0 | 0 | ||||||||
Prepaid expenses | 0 | 0 | 0 | |||||||
Income taxes receivable | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | |||||||
Current assets of discontinued operations | 0 | 0 | ||||||||
Total current assets | 0 | 0 | 0 | |||||||
Intangibles and Other Assets: | ||||||||||
Investments in subsidiaries | 6,975 | 11,300 | 11,854 | |||||||
Goodwill | 0 | 0 | 0 | |||||||
Brands | 0 | 0 | 0 | |||||||
Management and franchise contracts, net | 0 | 0 | 0 | |||||||
Other intangible assets, net | 0 | 0 | 0 | |||||||
Property and equipment, net | 0 | 0 | 0 | |||||||
Deferred income tax assets | 4 | 2 | 3 | |||||||
Other | 11 | 12 | 9 | |||||||
Non-current assets of discontinued operations | 0 | 0 | ||||||||
Total intangibles and other assets | 6,990 | 11,314 | 11,866 | |||||||
Total assets | 6,990 | 11,314 | 11,866 | |||||||
Current Liabilities: | ||||||||||
Accounts payable, accrued expenses and other | 6 | 26 | 39 | |||||||
Intercompany payables | 0 | 0 | ||||||||
Current maturities of long-term debt | 32 | 26 | 0 | |||||||
Income taxes payable | 0 | 0 | 0 | |||||||
Current liabilities of discontinued operations | 0 | 0 | ||||||||
Total current liabilities | 38 | 52 | 39 | |||||||
Long-term debt | 5,357 | 5,361 | 5,647 | |||||||
Deferred revenues | 0 | 0 | 0 | |||||||
Deferred income tax liabilities | 0 | 0 | 0 | |||||||
Liability for guest loyalty program | 0 | 0 | 0 | |||||||
Other | 7 | 12 | 14 | |||||||
Non-current liabilities of discontinued operations | 0 | 0 | ||||||||
Total liabilities | 5,402 | 5,425 | 5,700 | |||||||
Equity: | ||||||||||
Total Hilton stockholders' equity | 1,588 | 5,889 | 6,166 | |||||||
Noncontrolling interests | 0 | 0 | 0 | |||||||
Total equity | 1,588 | 5,889 | 6,166 | |||||||
Total liabilities and equity | 6,990 | 11,314 | 11,866 | |||||||
HOC [Member] | ||||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | 3 | 3 | ||||||||
Restricted cash and cash equivalents | 87 | 87 | ||||||||
Accounts receivable, net | 11 | 7 | ||||||||
Intercompany receivables | 0 | 0 | ||||||||
Prepaid expenses | 8 | 6 | ||||||||
Income taxes receivable | 0 | |||||||||
Other | 1 | 1 | ||||||||
Current assets of discontinued operations | 0 | |||||||||
Total current assets | 110 | 104 | ||||||||
Intangibles and Other Assets: | ||||||||||
Investments in subsidiaries | 8,127 | 12,583 | ||||||||
Goodwill | 0 | 0 | ||||||||
Brands | 0 | 0 | ||||||||
Management and franchise contracts, net | 0 | 0 | ||||||||
Other intangible assets, net | 1 | 1 | ||||||||
Property and equipment, net | 11 | 12 | ||||||||
Deferred income tax assets | 174 | 167 | ||||||||
Other | 31 | 30 | ||||||||
Non-current assets of discontinued operations | 0 | |||||||||
Total intangibles and other assets | 8,344 | 12,793 | ||||||||
Total assets | 8,454 | 12,897 | ||||||||
Current Liabilities: | ||||||||||
Accounts payable, accrued expenses and other | 176 | 293 | ||||||||
Intercompany payables | 40 | 42 | ||||||||
Current maturities of long-term debt | 0 | 0 | ||||||||
Income taxes payable | 0 | 0 | ||||||||
Current liabilities of discontinued operations | 0 | |||||||||
Total current liabilities | 216 | 335 | ||||||||
Long-term debt | 982 | 981 | ||||||||
Deferred revenues | 0 | 0 | ||||||||
Deferred income tax liabilities | 0 | 0 | ||||||||
Liability for guest loyalty program | 0 | 0 | ||||||||
Other | 281 | 277 | ||||||||
Non-current liabilities of discontinued operations | 4 | |||||||||
Total liabilities | 1,479 | 1,597 | ||||||||
Equity: | ||||||||||
Total Hilton stockholders' equity | 6,975 | 11,300 | ||||||||
Noncontrolling interests | 0 | 0 | ||||||||
Total equity | 6,975 | 11,300 | ||||||||
Total liabilities and equity | 8,454 | 12,897 | ||||||||
Guarantor Subsidiaries [Member] | ||||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | 11 | 22 | 18 | |||||||
Restricted cash and cash equivalents | 10 | 9 | 91 | |||||||
Accounts receivable, net | 644 | 484 | 406 | |||||||
Intercompany receivables | 0 | 0 | ||||||||
Prepaid expenses | 48 | 21 | 36 | |||||||
Income taxes receivable | 30 | 120 | ||||||||
Other | 5 | 5 | 3 | |||||||
Current assets of discontinued operations | 0 | 0 | ||||||||
Total current assets | 718 | 571 | 674 | |||||||
Intangibles and Other Assets: | ||||||||||
Investments in subsidiaries | 1,588 | 5,889 | 6,457 | |||||||
Goodwill | 3,824 | 3,824 | 3,824 | |||||||
Brands | 4,405 | 4,404 | 4,405 | |||||||
Management and franchise contracts, net | 683 | 716 | 818 | |||||||
Other intangible assets, net | 282 | 296 | 334 | |||||||
Property and equipment, net | 61 | 62 | 73 | |||||||
Deferred income tax assets | 0 | 0 | 0 | |||||||
Other | 235 | 213 | 200 | |||||||
Non-current assets of discontinued operations | 12 | 28 | ||||||||
Total intangibles and other assets | 11,078 | 15,416 | 16,139 | |||||||
Total assets | 11,796 | 15,987 | 16,813 | |||||||
Current Liabilities: | ||||||||||
Accounts payable, accrued expenses and other | 1,195 | 1,091 | 1,168 | |||||||
Intercompany payables | 0 | 0 | ||||||||
Current maturities of long-term debt | 0 | 0 | 0 | |||||||
Income taxes payable | 49 | 0 | 0 | |||||||
Current liabilities of discontinued operations | 77 | 71 | ||||||||
Total current liabilities | 1,244 | 1,168 | 1,239 | |||||||
Long-term debt | 0 | 0 | 0 | |||||||
Deferred revenues | 22 | 42 | 251 | |||||||
Deferred income tax liabilities | 1,884 | 1,919 | 1,813 | |||||||
Liability for guest loyalty program | 898 | 889 | 784 | |||||||
Other | 499 | 490 | 808 | |||||||
Non-current liabilities of discontinued operations | 0 | 64 | ||||||||
Total liabilities | 4,547 | 4,508 | 4,959 | |||||||
Equity: | ||||||||||
Total Hilton stockholders' equity | 7,249 | 11,479 | 11,854 | |||||||
Noncontrolling interests | 0 | 0 | 0 | |||||||
Total equity | 7,249 | 11,479 | 11,854 | |||||||
Total liabilities and equity | 11,796 | 15,987 | 16,813 | |||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||
Current Assets: | ||||||||||
Cash and cash equivalents | 848 | 1,037 | 495 | |||||||
Restricted cash and cash equivalents | 27 | 25 | 29 | |||||||
Accounts receivable, net | 256 | 264 | 258 | |||||||
Intercompany receivables | 40 | 42 | ||||||||
Prepaid expenses | 74 | 65 | 79 | |||||||
Income taxes receivable | 0 | 0 | ||||||||
Other | 37 | 33 | 32 | |||||||
Current assets of discontinued operations | 1,502 | 1,070 | ||||||||
Total current assets | 1,282 | 2,968 | 1,963 | |||||||
Intangibles and Other Assets: | ||||||||||
Investments in subsidiaries | 0 | 0 | 0 | |||||||
Goodwill | 1,311 | 1,394 | 1,456 | |||||||
Brands | 451 | 444 | 514 | |||||||
Management and franchise contracts, net | 247 | 247 | 271 | |||||||
Other intangible assets, net | 148 | 150 | 189 | |||||||
Property and equipment, net | 269 | 267 | 338 | |||||||
Deferred income tax assets | 82 | 82 | 59 | |||||||
Other | 166 | 153 | 123 | |||||||
Non-current assets of discontinued operations | 10,345 | 10,396 | ||||||||
Total intangibles and other assets | 2,674 | 13,082 | 13,346 | |||||||
Total assets | 3,956 | 16,050 | 15,309 | |||||||
Current Liabilities: | ||||||||||
Accounts payable, accrued expenses and other | 422 | 414 | 415 | |||||||
Intercompany payables | 0 | 0 | ||||||||
Current maturities of long-term debt | 9 | 7 | 7 | |||||||
Income taxes payable | 79 | 73 | 50 | |||||||
Current liabilities of discontinued operations | 721 | 767 | ||||||||
Total current liabilities | 510 | 1,215 | 1,239 | |||||||
Long-term debt | 249 | 241 | 240 | |||||||
Deferred revenues | 0 | 0 | 0 | |||||||
Deferred income tax liabilities | 27 | 38 | 89 | |||||||
Liability for guest loyalty program | 0 | 0 | 0 | |||||||
Other | 706 | 713 | 238 | |||||||
Non-current liabilities of discontinued operations | 6,900 | 7,080 | ||||||||
Total liabilities | 1,492 | 9,107 | 8,886 | |||||||
Equity: | ||||||||||
Total Hilton stockholders' equity | 2,466 | 6,993 | 6,457 | |||||||
Noncontrolling interests | (2) | (50) | (34) | |||||||
Total equity | 2,464 | 6,943 | 6,423 | |||||||
Total liabilities and equity | $ 3,956 | $ 16,050 | $ 15,309 | |||||||
[1] | Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone (the "Merger"). | |||||||||
[2] | Represents intangible assets that were initially recorded at their fair value at the time of the Merger. | |||||||||
[3] | Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Condensed Consolidating Guar130
Condensed Consolidating Guarantor Financial Information - Condensed Income Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | ||||||||||||
Franchise fees | $ 294 | $ 253 | $ 1,154 | $ 1,087 | $ 905 | |||||||
Base and other management fees | 83 | 60 | 242 | 230 | 227 | |||||||
Incentive management fees | 52 | 36 | 142 | 138 | 133 | |||||||
Owned and leased hotels | 300 | 319 | 1,452 | 1,596 | 1,776 | |||||||
Other revenues | 37 | 17 | 82 | 71 | 80 | |||||||
Total revenues excluding reimbursement revenue | 766 | 685 | 3,072 | 3,122 | 3,121 | |||||||
Other revenues from managed and franchised properties | 1,395 | 1,041 | 4,310 | 4,011 | 3,567 | |||||||
Total revenues | 2,161 | $ 1,839 | $ 1,867 | $ 1,950 | 1,726 | $ 1,811 | $ 1,847 | $ 1,845 | $ 1,630 | 7,382 | 7,133 | 6,688 |
Expenses | ||||||||||||
Owned and leased hotels | 272 | 307 | 1,295 | 1,414 | 1,586 | |||||||
Depreciation and amortization | 89 | 92 | 364 | 385 | 363 | |||||||
Impairment loss | 0 | 15 | 15 | 9 | 0 | |||||||
General and administrative | 105 | 83 | 403 | 537 | 411 | |||||||
Other expenses | 23 | 18 | 51 | 40 | 58 | |||||||
Total expenses excluding cost of reimbursable expense | 489 | 515 | 2,128 | 2,385 | 2,418 | |||||||
Other expenses from managed and franchised properties | 1,395 | 1,041 | 4,310 | 4,011 | 3,567 | |||||||
Total expenses | 1,884 | 1,556 | 6,438 | 6,396 | 5,985 | |||||||
Gain on sales of assets, net | 8 | 163 | 0 | |||||||||
Operating income (loss) | 277 | 244 | 265 | 273 | 170 | 231 | 391 | 135 | 143 | 952 | 900 | 703 |
Interest expense | (104) | (90) | (394) | (377) | (416) | |||||||
Gain (loss) on foreign currency transactions | (4) | (12) | (16) | (41) | 26 | |||||||
Loss on debt extinguishment | (60) | 0 | ||||||||||
Other non-operating income (loss), net | 1 | 2 | 14 | 51 | 20 | |||||||
Income from continuing operations before income taxes | 110 | 70 | 556 | 533 | 333 | |||||||
Income tax benefit (expense) | (35) | 121 | (564) | 348 | (154) | |||||||
Income (loss) from continuing operations before income from subsidiaries, net of taxes | 75 | 191 | (8) | 881 | 179 | |||||||
Equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | 0 | 0 | |||||||
Income (loss) from continuing operations, net of taxes | 75 | (388) | 89 | 100 | 191 | 689 | 153 | 40 | (1) | (8) | 881 | 179 |
Income from discontinued operations, net of taxes | 0 | 6 | 103 | 144 | 119 | 127 | 130 | 127 | 151 | 372 | 535 | 503 |
Net income | 75 | (382) | 192 | 244 | 310 | 816 | 283 | 167 | 150 | 364 | 1,416 | 682 |
Net income attributable to noncontrolling interests | (1) | (1) | (16) | (12) | (9) | |||||||
Net income attributable to Hilton Stockholders | 74 | $ (387) | $ 187 | $ 239 | 309 | $ 814 | $ 279 | $ 161 | $ 150 | 348 | 1,404 | 673 |
Comprehensive income | 94 | 318 | 146 | 1,260 | 329 | |||||||
Comprehensive income attributable to noncontrolling interests | 0 | 1 | (15) | (12) | (14) | |||||||
Comprehensive income attributable to Hilton stockholders | 94 | 319 | 131 | 1,248 | 315 | |||||||
Eliminations [Member] | ||||||||||||
Revenues | ||||||||||||
Franchise fees | (4) | (3) | (10) | (12) | (6) | |||||||
Base and other management fees | 0 | 0 | 0 | 0 | (4) | |||||||
Incentive management fees | 0 | 0 | 0 | 0 | 0 | |||||||
Owned and leased hotels | 0 | 0 | 0 | 0 | 0 | |||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | |||||||
Total revenues excluding reimbursement revenue | (4) | (3) | (10) | (12) | (10) | |||||||
Other revenues from managed and franchised properties | 0 | 0 | 0 | 0 | 0 | |||||||
Total revenues | (4) | (3) | (10) | (12) | (10) | |||||||
Expenses | ||||||||||||
Owned and leased hotels | 0 | 0 | 0 | 0 | 0 | |||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | 0 | |||||||
Impairment loss | 0 | 0 | 0 | |||||||||
General and administrative | 0 | 0 | 0 | 0 | 0 | |||||||
Other expenses | (4) | (3) | (10) | (12) | (10) | |||||||
Total expenses excluding cost of reimbursable expense | (4) | (3) | (10) | (12) | (10) | |||||||
Other expenses from managed and franchised properties | 0 | 0 | 0 | 0 | 0 | |||||||
Total expenses | (4) | (3) | (10) | (12) | (10) | |||||||
Gain on sales of assets, net | 0 | 0 | ||||||||||
Operating income (loss) | 0 | 0 | 0 | 0 | 0 | |||||||
Interest expense | 0 | 0 | 0 | 0 | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | 0 | 0 | |||||||
Loss on debt extinguishment | 0 | |||||||||||
Other non-operating income (loss), net | 0 | 0 | 0 | 0 | 0 | |||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 | 0 | |||||||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | 0 | |||||||
Income (loss) from continuing operations before income from subsidiaries, net of taxes | 0 | 0 | 0 | 0 | 0 | |||||||
Equity in earnings (losses) from subsidiaries | (492) | (32) | 477 | (2,312) | (429) | |||||||
Income (loss) from continuing operations, net of taxes | (32) | 477 | (2,312) | (429) | ||||||||
Income from discontinued operations, net of taxes | (338) | 1,528 | (1,509) | (1,444) | ||||||||
Net income | (492) | (370) | (1,051) | (3,821) | (1,873) | |||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | |||||||
Net income attributable to Hilton Stockholders | (492) | (370) | (1,051) | (3,821) | (1,873) | |||||||
Comprehensive income | (512) | (380) | (834) | (3,665) | (1,515) | |||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | |||||||
Comprehensive income attributable to Hilton stockholders | (512) | (380) | (834) | (3,665) | (1,515) | |||||||
Parent [Member] | ||||||||||||
Revenues | ||||||||||||
Franchise fees | 0 | 0 | 0 | 0 | 0 | |||||||
Base and other management fees | 0 | 0 | 0 | 0 | 0 | |||||||
Incentive management fees | 0 | 0 | 0 | 0 | 0 | |||||||
Owned and leased hotels | 0 | 0 | 0 | 0 | 0 | |||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | |||||||
Total revenues excluding reimbursement revenue | 0 | 0 | 0 | 0 | 0 | |||||||
Other revenues from managed and franchised properties | 0 | 0 | 0 | 0 | 0 | |||||||
Total revenues | 0 | 0 | 0 | 0 | 0 | |||||||
Expenses | ||||||||||||
Owned and leased hotels | 0 | 0 | 0 | 0 | 0 | |||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | 0 | |||||||
Impairment loss | 0 | 0 | 0 | |||||||||
General and administrative | 0 | 0 | 0 | 0 | 0 | |||||||
Other expenses | 0 | 0 | 0 | 0 | 0 | |||||||
Total expenses excluding cost of reimbursable expense | 0 | 0 | 0 | 0 | 0 | |||||||
Other expenses from managed and franchised properties | 0 | 0 | 0 | 0 | 0 | |||||||
Total expenses | 0 | 0 | 0 | 0 | 0 | |||||||
Gain on sales of assets, net | 0 | 0 | ||||||||||
Operating income (loss) | 0 | 0 | 0 | 0 | 0 | |||||||
Interest expense | 0 | 0 | 0 | 0 | 0 | |||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | 0 | 0 | |||||||
Loss on debt extinguishment | 0 | |||||||||||
Other non-operating income (loss), net | 0 | 0 | 0 | 0 | 0 | |||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 | 0 | |||||||
Income tax benefit (expense) | 0 | 192 | 193 | (7) | (5) | |||||||
Income (loss) from continuing operations before income from subsidiaries, net of taxes | 0 | 192 | 193 | (7) | (5) | |||||||
Equity in earnings (losses) from subsidiaries | 74 | 0 | (211) | 883 | 179 | |||||||
Income (loss) from continuing operations, net of taxes | 192 | (18) | 876 | 174 | ||||||||
Income from discontinued operations, net of taxes | 117 | 366 | 528 | 499 | ||||||||
Net income | 74 | 309 | 348 | 1,404 | 673 | |||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | |||||||
Net income attributable to Hilton Stockholders | 74 | 309 | 348 | 1,404 | 673 | |||||||
Comprehensive income | 94 | 319 | 131 | 1,248 | 315 | |||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | |||||||
Comprehensive income attributable to Hilton stockholders | 94 | 319 | 131 | 1,248 | 315 | |||||||
HWF Issuers [Member] | ||||||||||||
Revenues | ||||||||||||
Franchise fees | 0 | 0 | 0 | 0 | 0 | |||||||
Base and other management fees | 0 | 0 | 0 | 0 | 0 | |||||||
Incentive management fees | 0 | 0 | 0 | 0 | 0 | |||||||
Owned and leased hotels | 0 | 0 | 0 | 0 | 0 | |||||||
Other revenues | 0 | 0 | 0 | 0 | 0 | |||||||
Total revenues excluding reimbursement revenue | 0 | 0 | 0 | 0 | 0 | |||||||
Other revenues from managed and franchised properties | 0 | 0 | 0 | 0 | 0 | |||||||
Total revenues | 0 | 0 | 0 | 0 | 0 | |||||||
Expenses | ||||||||||||
Owned and leased hotels | 0 | 0 | 0 | 0 | 0 | |||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | 0 | |||||||
Impairment loss | 0 | 0 | 0 | |||||||||
General and administrative | 0 | 0 | 0 | 0 | 0 | |||||||
Other expenses | 0 | 0 | 0 | 0 | 0 | |||||||
Total expenses excluding cost of reimbursable expense | 0 | 0 | 0 | 0 | 0 | |||||||
Other expenses from managed and franchised properties | 0 | 0 | 0 | 0 | 0 | |||||||
Total expenses | 0 | 0 | 0 | 0 | 0 | |||||||
Gain on sales of assets, net | 0 | 0 | ||||||||||
Operating income (loss) | 0 | 0 | 0 | 0 | 0 | |||||||
Interest expense | (63) | (67) | (261) | (281) | (334) | |||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | 0 | 0 | |||||||
Loss on debt extinguishment | (60) | |||||||||||
Other non-operating income (loss), net | (3) | 0 | 1 | 0 | 0 | |||||||
Income from continuing operations before income taxes | (126) | (67) | (260) | (281) | (334) | |||||||
Income tax benefit (expense) | 49 | 26 | 100 | 108 | 128 | |||||||
Income (loss) from continuing operations before income from subsidiaries, net of taxes | (77) | (41) | (160) | (173) | (206) | |||||||
Equity in earnings (losses) from subsidiaries | 151 | 41 | (51) | 1,056 | 385 | |||||||
Income (loss) from continuing operations, net of taxes | 0 | (211) | 883 | 179 | ||||||||
Income from discontinued operations, net of taxes | 117 | 366 | 528 | 499 | ||||||||
Net income | 74 | 117 | 155 | 1,411 | 678 | |||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | |||||||
Net income attributable to Hilton Stockholders | 74 | 117 | 155 | 1,411 | 678 | |||||||
Comprehensive income | 72 | 111 | 153 | 1,404 | 669 | |||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | |||||||
Comprehensive income attributable to Hilton stockholders | 72 | 111 | 153 | 1,404 | 669 | |||||||
HOC [Member] | ||||||||||||
Revenues | ||||||||||||
Franchise fees | 19 | 21 | ||||||||||
Base and other management fees | 0 | 0 | ||||||||||
Incentive management fees | 0 | 0 | ||||||||||
Owned and leased hotels | 0 | 0 | ||||||||||
Other revenues | 20 | 10 | ||||||||||
Total revenues excluding reimbursement revenue | 39 | 31 | ||||||||||
Other revenues from managed and franchised properties | 45 | 32 | ||||||||||
Total revenues | 84 | 63 | ||||||||||
Expenses | ||||||||||||
Owned and leased hotels | 0 | 0 | ||||||||||
Depreciation and amortization | 1 | 1 | ||||||||||
Impairment loss | 0 | |||||||||||
General and administrative | 79 | 90 | ||||||||||
Other expenses | 12 | 1 | ||||||||||
Total expenses excluding cost of reimbursable expense | 92 | 92 | ||||||||||
Other expenses from managed and franchised properties | 45 | 32 | ||||||||||
Total expenses | 137 | 124 | ||||||||||
Gain on sales of assets, net | 0 | |||||||||||
Operating income (loss) | (53) | (61) | ||||||||||
Interest expense | (28) | (30) | ||||||||||
Gain (loss) on foreign currency transactions | 11 | (11) | ||||||||||
Loss on debt extinguishment | 0 | |||||||||||
Other non-operating income (loss), net | 1 | 1 | ||||||||||
Income from continuing operations before income taxes | (69) | (79) | ||||||||||
Income tax benefit (expense) | 27 | 32 | ||||||||||
Income (loss) from continuing operations before income from subsidiaries, net of taxes | (42) | (47) | ||||||||||
Equity in earnings (losses) from subsidiaries | 193 | (4) | ||||||||||
Income (loss) from continuing operations, net of taxes | (51) | |||||||||||
Income from discontinued operations, net of taxes | 366 | |||||||||||
Net income | 151 | 315 | ||||||||||
Net income attributable to noncontrolling interests | 0 | 0 | ||||||||||
Net income attributable to Hilton Stockholders | 151 | 315 | ||||||||||
Comprehensive income | 155 | 320 | ||||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||||||||||
Comprehensive income attributable to Hilton stockholders | 155 | 320 | ||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||
Revenues | ||||||||||||
Franchise fees | 255 | 234 | 1,031 | 998 | 826 | |||||||
Base and other management fees | 50 | 32 | 126 | 125 | 129 | |||||||
Incentive management fees | 22 | 8 | 16 | 18 | 17 | |||||||
Owned and leased hotels | 0 | 0 | 0 | 0 | 0 | |||||||
Other revenues | 13 | 14 | 61 | 61 | 71 | |||||||
Total revenues excluding reimbursement revenue | 340 | 288 | 1,234 | 1,202 | 1,043 | |||||||
Other revenues from managed and franchised properties | 1,220 | 924 | 3,777 | 3,510 | 3,120 | |||||||
Total revenues | 1,560 | 1,212 | 5,011 | 4,712 | 4,163 | |||||||
Expenses | ||||||||||||
Owned and leased hotels | 0 | 0 | 0 | 0 | 0 | |||||||
Depreciation and amortization | 64 | 68 | 272 | 288 | 263 | |||||||
Impairment loss | 0 | 0 | 0 | |||||||||
General and administrative | 2 | 57 | 204 | 424 | 303 | |||||||
Other expenses | 7 | 9 | 31 | 37 | 49 | |||||||
Total expenses excluding cost of reimbursable expense | 73 | 134 | 507 | 749 | 615 | |||||||
Other expenses from managed and franchised properties | 1,220 | 924 | 3,777 | 3,510 | 3,120 | |||||||
Total expenses | 1,293 | 1,058 | 4,284 | 4,259 | 3,735 | |||||||
Gain on sales of assets, net | 0 | 0 | ||||||||||
Operating income (loss) | 267 | 154 | 727 | 453 | 428 | |||||||
Interest expense | 0 | (11) | (51) | (50) | (54) | |||||||
Gain (loss) on foreign currency transactions | 21 | 5 | (150) | 77 | 443 | |||||||
Loss on debt extinguishment | 0 | |||||||||||
Other non-operating income (loss), net | 1 | 2 | 8 | 14 | 9 | |||||||
Income from continuing operations before income taxes | 289 | 150 | 534 | 494 | 826 | |||||||
Income tax benefit (expense) | (108) | (100) | (319) | 189 | (306) | |||||||
Income (loss) from continuing operations before income from subsidiaries, net of taxes | 181 | 50 | 215 | 683 | 520 | |||||||
Equity in earnings (losses) from subsidiaries | 74 | (9) | (211) | 373 | (135) | |||||||
Income (loss) from continuing operations, net of taxes | 41 | 0 | 1,056 | 385 | ||||||||
Income from discontinued operations, net of taxes | 117 | 428 | 528 | 499 | ||||||||
Net income | 255 | 158 | 432 | 1,584 | 884 | |||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | |||||||
Net income attributable to Hilton Stockholders | 255 | 158 | 432 | 1,584 | 884 | |||||||
Comprehensive income | 255 | 149 | 361 | 1,546 | 813 | |||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | |||||||
Comprehensive income attributable to Hilton stockholders | 255 | 149 | 361 | 1,546 | 813 | |||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||
Revenues | ||||||||||||
Franchise fees | 24 | 22 | 112 | 101 | 85 | |||||||
Base and other management fees | 33 | 28 | 116 | 105 | 102 | |||||||
Incentive management fees | 30 | 28 | 126 | 120 | 116 | |||||||
Owned and leased hotels | 300 | 319 | 1,452 | 1,596 | 1,776 | |||||||
Other revenues | 4 | 3 | 11 | 10 | 9 | |||||||
Total revenues excluding reimbursement revenue | 391 | 400 | 1,817 | 1,932 | 2,088 | |||||||
Other revenues from managed and franchised properties | 130 | 117 | 501 | 501 | 447 | |||||||
Total revenues | 521 | 517 | 2,318 | 2,433 | 2,535 | |||||||
Expenses | ||||||||||||
Owned and leased hotels | 272 | 307 | 1,295 | 1,414 | 1,586 | |||||||
Depreciation and amortization | 24 | 24 | 91 | 97 | 100 | |||||||
Impairment loss | 15 | 15 | 9 | |||||||||
General and administrative | 24 | 26 | 109 | 113 | 108 | |||||||
Other expenses | 8 | 12 | 29 | 15 | 19 | |||||||
Total expenses excluding cost of reimbursable expense | 328 | 384 | 1,539 | 1,648 | 1,813 | |||||||
Other expenses from managed and franchised properties | 130 | 117 | 501 | 501 | 447 | |||||||
Total expenses | 458 | 501 | 2,040 | 2,149 | 2,260 | |||||||
Gain on sales of assets, net | 8 | 163 | ||||||||||
Operating income (loss) | 63 | 16 | 286 | 447 | 275 | |||||||
Interest expense | (13) | (12) | (52) | (46) | (28) | |||||||
Gain (loss) on foreign currency transactions | (36) | (17) | 123 | (118) | (417) | |||||||
Loss on debt extinguishment | 0 | |||||||||||
Other non-operating income (loss), net | 2 | 0 | 4 | 37 | 11 | |||||||
Income from continuing operations before income taxes | 16 | (13) | 361 | 320 | (159) | |||||||
Income tax benefit (expense) | (3) | 3 | (570) | 58 | 29 | |||||||
Income (loss) from continuing operations before income from subsidiaries, net of taxes | 13 | (10) | (209) | 378 | (130) | |||||||
Equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | 0 | 0 | |||||||
Income (loss) from continuing operations, net of taxes | (10) | (209) | 378 | (130) | ||||||||
Income from discontinued operations, net of taxes | 106 | 374 | 460 | 450 | ||||||||
Net income | 13 | 96 | 165 | 838 | 320 | |||||||
Net income attributable to noncontrolling interests | (1) | (1) | (16) | (12) | (9) | |||||||
Net income attributable to Hilton Stockholders | 12 | 95 | 149 | 826 | 311 | |||||||
Comprehensive income | 30 | 119 | 15 | 727 | 47 | |||||||
Comprehensive income attributable to noncontrolling interests | 0 | 1 | (15) | (12) | (14) | |||||||
Comprehensive income attributable to Hilton stockholders | $ 30 | $ 120 | $ 0 | $ 715 | $ 33 |
Condensed Consolidating Guar131
Condensed Consolidating Guarantor Financial Information - Condensed Cash Flow Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities: | |||||
Net cash provided by (used in) operating activities | $ 63 | $ 339 | $ 1,365 | $ 1,446 | $ 1,307 |
Investing Activities: | |||||
Capital expenditures for property and equipment | (9) | (84) | (317) | (310) | (268) |
Issuance of intercompany receivables | 0 | ||||
Acquisitions, net of cash acquired | 0 | (1,402) | 0 | ||
Payments received on intercompany receivables | 0 | ||||
Proceeds from asset dispositions | 11 | 2,205 | 44 | ||
Contract acquisition costs | (13) | (9) | (55) | (37) | (65) |
Capitalized software costs | (9) | (11) | (81) | (62) | (69) |
Other | (19) | (6) | (36) | 20 | 48 |
Net cash provided by (used in) investing activities | (50) | (110) | (478) | 414 | (310) |
Financing Activities: | |||||
Borrowings | 1,823 | 0 | 4,715 | 48 | 350 |
Repayment of debt | (1,824) | (32) | (4,359) | (1,624) | (1,424) |
Debt issuance costs | (66) | 0 | (76) | 0 | (9) |
Intercompany borrowings | 0 | ||||
Capital contribution | 0 | 0 | 13 | ||
Repayment of intercompany borrowings | 0 | 0 | |||
Intercompany transfers | 0 | 0 | 0 | 0 | 0 |
Dividends paid | (49) | (69) | (277) | (138) | 0 |
Intercompany dividends | 0 | 0 | |||
Cash transferred in spin-offs of Park and HGV | (501) | 0 | |||
Repurchases of common stock | (70) | 0 | |||
Distributions to noncontrolling interests | (1) | (2) | (32) | (8) | (5) |
Tax withholdings on share-based compensation | (28) | (13) | (15) | (31) | 0 |
Net cash used in financing activities | (716) | (116) | (44) | (1,753) | (1,075) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 5 | 4 | (15) | (19) | (14) |
Net increase (decrease) in cash, restricted cash and cash equivalents | (698) | 117 | 828 | 88 | (92) |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,183 | 633 | 633 | 628 | 706 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 | 223 | 140 | 154 |
Cash, restricted cash and cash equivalents, beginning of period | 1,684 | 856 | 856 | 768 | 860 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 986 | 682 | 1,183 | 633 | 628 |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 291 | 501 | 223 | 140 |
Cash, restricted cash and cash equivalents, end of period | 986 | 973 | 1,684 | 856 | 768 |
Scenario, Previously Reported [Member] | |||||
Financing Activities: | |||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 634 | 634 | |||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 222 | 222 | |||
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 634 | ||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 222 | ||||
Cash, restricted cash and cash equivalents, end of period | 0 | ||||
Eliminations [Member] | |||||
Operating Activities: | |||||
Net cash provided by (used in) operating activities | (3) | 0 | (605) | (436) | (300) |
Investing Activities: | |||||
Capital expenditures for property and equipment | 0 | 0 | 0 | 0 | 0 |
Issuance of intercompany receivables | 234 | ||||
Acquisitions, net of cash acquired | 0 | ||||
Payments received on intercompany receivables | (192) | ||||
Proceeds from asset dispositions | 0 | 0 | 0 | ||
Contract acquisition costs | 0 | 0 | 0 | 0 | 0 |
Capitalized software costs | 0 | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 42 | 0 | 0 |
Financing Activities: | |||||
Borrowings | 0 | 0 | 0 | 0 | |
Repayment of debt | 0 | 0 | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | 0 | ||
Intercompany borrowings | (234) | ||||
Capital contribution | (9) | ||||
Repayment of intercompany borrowings | 3 | 192 | |||
Intercompany transfers | 0 | 0 | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 | 0 | 309 |
Intercompany dividends | 605 | 436 | |||
Cash transferred in spin-offs of Park and HGV | 0 | ||||
Repurchases of common stock | 0 | ||||
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 |
Tax withholdings on share-based compensation | 0 | 0 | 0 | 0 | |
Net cash used in financing activities | 3 | 0 | 563 | 436 | 300 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 | 0 | 0 | 0 |
Eliminations [Member] | Scenario, Previously Reported [Member] | |||||
Financing Activities: | |||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | ||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | ||||
Cash, restricted cash and cash equivalents, end of period | 0 | ||||
Parent [Member] | |||||
Operating Activities: | |||||
Net cash provided by (used in) operating activities | 0 | 0 | 0 | 0 | 0 |
Investing Activities: | |||||
Capital expenditures for property and equipment | 0 | 0 | 0 | 0 | 0 |
Issuance of intercompany receivables | 0 | ||||
Acquisitions, net of cash acquired | 0 | ||||
Payments received on intercompany receivables | 0 | ||||
Proceeds from asset dispositions | 0 | 0 | 0 | ||
Contract acquisition costs | 0 | 0 | 0 | 0 | 0 |
Capitalized software costs | 0 | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 | 0 | 0 |
Financing Activities: | |||||
Borrowings | 0 | 0 | 0 | 0 | |
Repayment of debt | 0 | 0 | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | 0 | ||
Intercompany borrowings | 0 | ||||
Capital contribution | 0 | ||||
Repayment of intercompany borrowings | 0 | 0 | |||
Intercompany transfers | 119 | 69 | 277 | 138 | 0 |
Dividends paid | (49) | (69) | (277) | (138) | 0 |
Intercompany dividends | 0 | 0 | |||
Cash transferred in spin-offs of Park and HGV | 0 | ||||
Repurchases of common stock | (70) | ||||
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 |
Tax withholdings on share-based compensation | 0 | 0 | 0 | 0 | |
Net cash used in financing activities | 0 | 0 | 0 | 0 | 0 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 | 0 | 0 | 0 |
Parent [Member] | Scenario, Previously Reported [Member] | |||||
Financing Activities: | |||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | ||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | ||||
Cash, restricted cash and cash equivalents, end of period | 0 | ||||
HWF Issuers [Member] | |||||
Operating Activities: | |||||
Net cash provided by (used in) operating activities | 0 | 0 | (37) | 184 | 0 |
Investing Activities: | |||||
Capital expenditures for property and equipment | 0 | 0 | 0 | 0 | 0 |
Issuance of intercompany receivables | 0 | ||||
Acquisitions, net of cash acquired | 0 | ||||
Payments received on intercompany receivables | 0 | ||||
Proceeds from asset dispositions | 0 | 0 | 0 | ||
Contract acquisition costs | 0 | 0 | 0 | 0 | 0 |
Capitalized software costs | 0 | 0 | 0 | 0 | 0 |
Other | (13) | 0 | (6) | 0 | 0 |
Net cash provided by (used in) investing activities | (13) | 0 | (6) | 0 | 0 |
Financing Activities: | |||||
Borrowings | 1,823 | 0 | 0 | 0 | |
Repayment of debt | (1,823) | 0 | (266) | (775) | (1,000) |
Debt issuance costs | (66) | (17) | (6) | ||
Intercompany borrowings | 0 | ||||
Capital contribution | 0 | ||||
Repayment of intercompany borrowings | 0 | 0 | |||
Intercompany transfers | 79 | 0 | 326 | 591 | 1,006 |
Dividends paid | 0 | 0 | 0 | 0 | 0 |
Intercompany dividends | 0 | 0 | |||
Cash transferred in spin-offs of Park and HGV | 0 | ||||
Repurchases of common stock | 0 | ||||
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 |
Tax withholdings on share-based compensation | 0 | 0 | 0 | 0 | |
Net cash used in financing activities | 13 | 0 | 43 | (184) | 0 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 | 0 | 0 | 0 |
HWF Issuers [Member] | Scenario, Previously Reported [Member] | |||||
Financing Activities: | |||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | ||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | ||||
Cash, restricted cash and cash equivalents, end of period | 0 | ||||
HOC [Member] | |||||
Operating Activities: | |||||
Net cash provided by (used in) operating activities | (102) | 0 | |||
Investing Activities: | |||||
Capital expenditures for property and equipment | 0 | 0 | |||
Issuance of intercompany receivables | 0 | ||||
Payments received on intercompany receivables | 0 | ||||
Proceeds from asset dispositions | 0 | ||||
Contract acquisition costs | 0 | 0 | |||
Capitalized software costs | 0 | 0 | |||
Other | 0 | 0 | |||
Net cash provided by (used in) investing activities | 0 | 0 | |||
Financing Activities: | |||||
Borrowings | 0 | 1,000 | |||
Repayment of debt | 0 | 0 | |||
Debt issuance costs | 0 | (20) | |||
Intercompany borrowings | 0 | ||||
Repayment of intercompany borrowings | (3) | 0 | |||
Intercompany transfers | 133 | (890) | |||
Dividends paid | 0 | 0 | |||
Intercompany dividends | 0 | ||||
Cash transferred in spin-offs of Park and HGV | 0 | ||||
Repurchases of common stock | 0 | ||||
Distributions to noncontrolling interests | 0 | 0 | |||
Tax withholdings on share-based compensation | (28) | 0 | |||
Net cash used in financing activities | 102 | 90 | |||
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | |||
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 90 | |||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 90 | 0 | 0 | ||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | 0 | ||
Cash, restricted cash and cash equivalents, beginning of period | 90 | 0 | 0 | ||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 90 | 0 | |||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents, end of period | 90 | 90 | 0 | ||
HOC [Member] | Scenario, Previously Reported [Member] | |||||
Financing Activities: | |||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 90 | ||||
Cash, restricted cash and cash equivalents, beginning of period | 90 | ||||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 90 | ||||
Cash, restricted cash and cash equivalents, end of period | 90 | ||||
Guarantor Subsidiaries [Member] | |||||
Operating Activities: | |||||
Net cash provided by (used in) operating activities | 56 | (279) | 912 | 975 | 1,085 |
Investing Activities: | |||||
Capital expenditures for property and equipment | (1) | 0 | (9) | (11) | (5) |
Issuance of intercompany receivables | (192) | ||||
Acquisitions, net of cash acquired | 0 | ||||
Payments received on intercompany receivables | 192 | ||||
Proceeds from asset dispositions | 0 | 0 | 4 | ||
Contract acquisition costs | (8) | (8) | (46) | (23) | (19) |
Capitalized software costs | (9) | (10) | (73) | (57) | (64) |
Other | (6) | (9) | (35) | 13 | 11 |
Net cash provided by (used in) investing activities | (24) | (27) | (163) | (78) | (73) |
Financing Activities: | |||||
Borrowings | 0 | 0 | 0 | 0 | |
Repayment of debt | 0 | 0 | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |||
Intercompany borrowings | 42 | ||||
Capital contribution | 0 | ||||
Repayment of intercompany borrowings | 0 | ||||
Intercompany transfers | (42) | 317 | (854) | (693) | (1,094) |
Dividends paid | 0 | 0 | 0 | 0 | 0 |
Intercompany dividends | 0 | (184) | |||
Cash transferred in spin-offs of Park and HGV | 0 | ||||
Repurchases of common stock | 0 | ||||
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 |
Tax withholdings on share-based compensation | 0 | (13) | (15) | (31) | |
Net cash used in financing activities | (42) | 304 | (827) | (908) | (1,094) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | (10) | (2) | (78) | (11) | (82) |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 31 | 109 | 109 | 119 | 201 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | 0 | 1 | 1 |
Cash, restricted cash and cash equivalents, beginning of period | 31 | 109 | 109 | 120 | 202 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 106 | 31 | 109 | 119 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | 0 | 1 | |
Cash, restricted cash and cash equivalents, end of period | 21 | 106 | 31 | 109 | 120 |
Guarantor Subsidiaries [Member] | Scenario, Previously Reported [Member] | |||||
Financing Activities: | |||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 108 | 108 | |||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | |||
Cash, restricted cash and cash equivalents, beginning of period | 108 | 108 | |||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 108 | ||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | ||||
Cash, restricted cash and cash equivalents, end of period | 108 | ||||
Non-Guarantor Subsidiaries [Member] | |||||
Operating Activities: | |||||
Net cash provided by (used in) operating activities | 112 | 618 | 1,095 | 723 | 522 |
Investing Activities: | |||||
Capital expenditures for property and equipment | (8) | (84) | (308) | (299) | (263) |
Issuance of intercompany receivables | (42) | ||||
Acquisitions, net of cash acquired | (1,402) | ||||
Payments received on intercompany receivables | 0 | ||||
Proceeds from asset dispositions | 11 | 2,205 | 40 | ||
Contract acquisition costs | (5) | (1) | (9) | (14) | (46) |
Capitalized software costs | 0 | (1) | (8) | (5) | (5) |
Other | 0 | 3 | 5 | 7 | 37 |
Net cash provided by (used in) investing activities | (13) | (83) | (351) | 492 | (237) |
Financing Activities: | |||||
Borrowings | 0 | 3,715 | 48 | 350 | |
Repayment of debt | (1) | (32) | (4,093) | (849) | (424) |
Debt issuance costs | 0 | (39) | (3) | ||
Intercompany borrowings | 192 | ||||
Capital contribution | 22 | ||||
Repayment of intercompany borrowings | 0 | (192) | |||
Intercompany transfers | (289) | (386) | 1,141 | (36) | 88 |
Dividends paid | 0 | 0 | 0 | 0 | (309) |
Intercompany dividends | (605) | (252) | |||
Cash transferred in spin-offs of Park and HGV | (501) | ||||
Repurchases of common stock | 0 | ||||
Distributions to noncontrolling interests | (1) | (2) | (32) | (8) | (5) |
Tax withholdings on share-based compensation | 0 | 0 | 0 | 0 | |
Net cash used in financing activities | (792) | (420) | 87 | (1,097) | (281) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 5 | 4 | (15) | (19) | (14) |
Net increase (decrease) in cash, restricted cash and cash equivalents | (688) | 119 | 816 | 99 | (10) |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,062 | 524 | 524 | 509 | 505 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 | 223 | 139 | 153 |
Cash, restricted cash and cash equivalents, beginning of period | 1,563 | 747 | 747 | 648 | 658 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 576 | 1,062 | 524 | 509 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 291 | 501 | 223 | 139 | |
Cash, restricted cash and cash equivalents, end of period | $ 875 | 867 | 1,563 | 747 | $ 648 |
Non-Guarantor Subsidiaries [Member] | Scenario, Previously Reported [Member] | |||||
Financing Activities: | |||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 526 | 526 | |||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 222 | 222 | |||
Cash, restricted cash and cash equivalents, beginning of period | $ 748 | $ 748 | |||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 526 | ||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 222 | ||||
Cash, restricted cash and cash equivalents, end of period | $ 748 |
Selected Quarterly Financial132
Selected Quarterly Financial Information (unaudited) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||||||
Quarterly Financial Information Disclosure (unaudited) [Abstract] | |||||||||||||||||||||||
Revenues | $ 2,161 | $ 1,839 | $ 1,867 | $ 1,950 | $ 1,726 | $ 1,811 | $ 1,847 | $ 1,845 | $ 1,630 | $ 7,382 | $ 7,133 | $ 6,688 | |||||||||||
Operating income | 277 | 244 | 265 | 273 | 170 | 231 | 391 | 135 | 143 | 952 | 900 | 703 | |||||||||||
Income (loss) from continuing operations, net of taxes | 75 | (388) | 89 | 100 | 191 | 689 | 153 | 40 | (1) | (8) | 881 | 179 | |||||||||||
Income from discontinued operations, net of taxes | 0 | 6 | 103 | 144 | 119 | 127 | 130 | 127 | 151 | 372 | 535 | 503 | |||||||||||
Net income (loss) | 75 | (382) | 192 | 244 | 310 | 816 | 283 | 167 | 150 | 364 | 1,416 | 682 | |||||||||||
Net income (loss) attributable to Hilton stockholders | $ 74 | $ (387) | $ 187 | $ 239 | $ 309 | $ 814 | $ 279 | $ 161 | $ 150 | $ 348 | $ 1,404 | $ 673 | |||||||||||
Net income (loss) from continuing operations per share | $ 0.22 | $ (1.20) | [1] | $ 0.27 | [1] | $ 0.29 | [1] | $ 0.58 | [1],[2] | $ 2.09 | $ 0.47 | $ 0.11 | $ 0 | $ (0.05) | [1],[3] | $ 2.67 | [3] | $ 0.53 | [3] | ||||
Net income from discontinued operations per share | 0 | 0.02 | [1] | 0.30 | [1] | 0.44 | [1] | 0.36 | [1],[2] | 0.38 | 0.38 | 0.38 | 0.46 | 1.11 | [1],[3] | 1.60 | [3] | 1.52 | [3] | ||||
Net income per share, basic | 0.22 | (1.18) | 0.57 | 0.73 | 0.94 | [2] | 2.47 | 0.85 | 0.49 | 0.46 | 1.06 | [3] | 4.27 | [3] | 2.05 | [3] | |||||||
Net income (loss) from continuing operations per share | 0.22 | (1.20) | [1] | 0.27 | [1] | 0.29 | [1] | 0.58 | [1],[2] | 2.09 | [1] | 0.47 | [1] | 0.11 | [1] | 0 | [1] | (0.05) | [1],[3] | 2.66 | [1],[3] | 0.53 | [3] |
Net income from discontinued operations per share | 0 | 0.02 | 0.30 | 0.43 | 0.36 | [2] | 0.38 | 0.38 | 0.38 | 0.46 | 1.11 | [3] | 1.60 | [3] | 1.52 | [3] | |||||||
Net income per share, diluted | $ 0.22 | $ (1.18) | [1] | $ 0.57 | [1] | $ 0.72 | [1] | $ 0.94 | [1],[2] | $ 2.47 | [1] | $ 0.85 | [1] | $ 0.49 | [1] | $ 0.46 | [1] | $ 1.06 | [1],[3] | $ 4.26 | [1],[3] | $ 2.05 | [3] |
[1] | The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. | ||||||||||||||||||||||
[2] | Weighted average shares outstanding used in the computation of basic and diluted earnings per share and cash dividends declared per share were adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. | ||||||||||||||||||||||
[3] | Weighted average shares outstanding used in the computation of basic and diluted earnings per share and cash dividends declared per share were adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. |
Subsequent Events (Detail)
Subsequent Events (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |||||||
Jun. 22, 2017USD ($)$ / sharesshares | Aug. 31, 2016USD ($) | Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2016USD ($) | Mar. 15, 2017shares | Mar. 01, 2017USD ($) | Jan. 03, 2017 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Subsequent Event [Line Items] | |||||||||
Spin-offs into new companies | 2 | ||||||||
Long-term debt, gross | $ 6,718 | $ 6,706 | $ 5,972 | ||||||
Shares repurchased, price per share | $ / shares | $ 57.67 | ||||||||
Number of shares repurchased, value | $ 70 | $ 0 | |||||||
Common Stock [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of shares repurchased | shares | 1,000,000 | ||||||||
HNA Tourism Group Co.,Ltd. purchase of Hilton common stock from Blackstone Group and Affiliates [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Hilton common stock acquired | shares | 82,500,000 | ||||||||
Common stock ownership percentage | 25.00% | ||||||||
The Blackstone Group And Affiliates [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock ownership percentage | 15.20% | 40.30% | |||||||
The Blackstone Group And Affiliates [member] | Subsequent event [member] | Common Stock [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of shares sold | shares | 15,000,000 | ||||||||
Number of shares repurchased | shares | 1,500,000 | ||||||||
Shares repurchased, price per share | $ / shares | $ 65.82 | ||||||||
Number of shares repurchased, value | $ 99 | ||||||||
Common stock ownership percentage after transaction | 10.30% | ||||||||
Presale to HNA Tourism Group Co.Ltd. [Member] | The Blackstone Group And Affiliates [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock ownership percentage | 40.00% | ||||||||
Post sale to HNA Tourism Group Co., Ltd. [member] | The Blackstone Group And Affiliates [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock ownership percentage | 15.00% | ||||||||
Senior notes due 2025 [member] | Senior notes [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from issuance of long-term debt | $ 900 | ||||||||
Debt instrument, interest rate, stated percentage | 4.625% | ||||||||
Long-term debt, gross | $ 900 | $ 0 | |||||||
Senior notes due 2027 [member] | Senior notes [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from issuance of long-term debt | $ 600 | ||||||||
Debt instrument, interest rate, stated percentage | 4.875% | ||||||||
Long-term debt, gross | $ 600 | $ 0 | |||||||
Senior notes due 2021 [member] | Senior notes [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 5.625% | ||||||||
Long-term debt, amount redeemed | 1,500 | ||||||||
Long-term debt, gross | $ 0 | $ 1,500 | 1,500 | ||||||
Senior secured term loan facility due 2020 [member] | Secured debt [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 3.50% | ||||||||
Long-term debt, gross | $ 750 | $ 750 | 4,225 | ||||||
Senior secured term loan facility due 2023 [member] | Secured debt [member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 2.98% | 3.26% | |||||||
Long-term debt, gross | $ 3,225 | $ 3,959 | $ 3,209 | $ 3,209 | $ 0 | ||||
Basis spread on variable rate debt | 2.50% | 2.00% |
Recently Issued Accounting P134
Recently Issued Accounting Pronouncements Impact of Recently Issued Accounting Pronouncements (Detail) - USD ($) $ in Millions | Jan. 01, 2017 | Jan. 01, 2016 |
Impact of Recently Adopted Accounting Pronouncements [Abstract] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1 | $ 5 |
Stockholders' Equity and Acc135
Stockholders' Equity and Accumulated Other Comprehensive Loss - Schedule of Stockholders' Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Balance | $ 5,849 | $ 6,205 | $ 5,951 | $ 4,714 | $ 5,951 | $ 4,714 | $ 4,276 | |||||||||||||||
Balance (shares) | [2] | 329,341,992 | [1] | 329,152,787 | 329,152,787 | |||||||||||||||||
Share-based compensation | $ (7) | $ 2 | ||||||||||||||||||||
Repurchases of common stock, purchase price | (70) | |||||||||||||||||||||
Income (Loss) Attributable to Parent | 74 | $ (387) | $ 187 | 239 | 309 | $ 814 | $ 279 | $ 161 | 150 | $ 348 | 1,404 | 673 | ||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | 1 | 16 | 12 | 9 | |||||||||||||||||
Net income | 75 | $ (382) | $ 192 | 244 | 310 | $ 816 | $ 283 | $ 167 | 150 | 364 | 1,416 | 682 | ||||||||||
Comprehensive income attributable to Hilton stockholders | 94 | 319 | 131 | 1,248 | 315 | |||||||||||||||||
Total other comprehensive income (loss) | 19 | 8 | (218) | (156) | (353) | |||||||||||||||||
Comprehensive loss attributable to noncontrolling interests | 0 | (1) | 15 | 12 | 14 | |||||||||||||||||
Dividends | (50) | (69) | (279) | (138) | ||||||||||||||||||
Spin-offs of Park and HGV | (4,219) | |||||||||||||||||||||
Cumulative effect of the adoption of ASU 2016-09 | 0 | 5 | 5 | |||||||||||||||||||
Distributions | $ (1) | (2) | $ (32) | $ (8) | (5) | |||||||||||||||||
Balance (shares) | 329,628,890 | [1] | 329,341,992 | [1],[2] | 329,152,787 | [2] | 329,341,992 | [1],[2] | 329,152,787 | [2] | ||||||||||||
Balance | $ 1,596 | $ 5,849 | 6,205 | $ 5,951 | $ 5,849 | $ 5,951 | 4,714 | |||||||||||||||
Common Stock [member] | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Balance | $ 3 | [2],[3] | $ 3 | [3] | $ 3 | [2],[3] | $ 3 | [2] | $ 3 | [2],[3] | $ 3 | [2] | $ 3 | [2] | ||||||||
Balance (shares) | 329,000,000 | [2],[3] | 329,000,000 | [3] | 329,000,000 | [2],[3] | 328,000,000 | [2] | 329,000,000 | [2],[3] | 328,000,000 | [2] | 328,000,000 | [2] | ||||||||
Share-based payment award transactions net shares | 2,000,000 | 0 | 1,000,000 | [2] | ||||||||||||||||||
Repurchases of common stock, shares | (1,000,000) | |||||||||||||||||||||
Balance (shares) | 330,000,000 | [3] | 329,000,000 | [2],[3] | 329,000,000 | [3] | 329,000,000 | [2],[3] | 329,000,000 | [2],[3] | 329,000,000 | [2],[3] | 328,000,000 | [2] | ||||||||
Balance | $ 3 | [3] | $ 3 | [2],[3] | $ 3 | [3] | $ 3 | [2],[3] | $ 3 | [2],[3] | $ 3 | [2],[3] | $ 3 | [2] | ||||||||
Treasury Stock [member] | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Balance | 0 | |||||||||||||||||||||
Repurchases of common stock, purchase price | $ (70) | |||||||||||||||||||||
Repurchases of common stock, shares | (1,213,415) | |||||||||||||||||||||
Balance | $ (70) | 0 | 0 | |||||||||||||||||||
Additional Paid-in Capital [member] | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Balance | 10,220 | [2] | $ 10,160 | [3] | 10,158 | [2],[3] | $ 10,035 | [2] | 10,158 | [2],[3] | 10,035 | [2] | 9,955 | [2] | ||||||||
Share-based compensation | (7) | 2 | ||||||||||||||||||||
Cumulative effect of the adoption of ASU 2016-09 | 1 | |||||||||||||||||||||
Balance | 10,214 | 10,220 | [2] | 10,160 | [3] | 10,158 | [2],[3] | 10,220 | [2] | 10,158 | [2],[3] | 10,035 | [2] | |||||||||
Accumulated Deficit [member] | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Balance | (3,323) | (3,152) | (3,392) | (4,658) | (3,392) | (4,658) | (5,331) | |||||||||||||||
Income (Loss) Attributable to Parent | 74 | 309 | ||||||||||||||||||||
Net income | 348 | 1,404 | 673 | |||||||||||||||||||
Dividends | (50) | (69) | (279) | (138) | ||||||||||||||||||
Spin-offs of Park and HGV | (4,331) | |||||||||||||||||||||
Cumulative effect of the adoption of ASU 2016-09 | (1) | |||||||||||||||||||||
Balance | (7,631) | (3,323) | (3,152) | (3,392) | (3,323) | (3,392) | (4,658) | |||||||||||||||
Accumulated Other Comprehensive Loss [member] | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Balance | (1,001) | (774) | (784) | (628) | (784) | (628) | (264) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | 20 | 10 | ||||||||||||||||||||
Total other comprehensive income (loss) | (217) | (156) | (358) | |||||||||||||||||||
Spin-offs of Park and HGV | 63 | |||||||||||||||||||||
Balance | (918) | (1,001) | (774) | (784) | (1,001) | (784) | (628) | |||||||||||||||
Noncontrolling Interest [member] | ||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||
Balance | (50) | $ (32) | (34) | $ (38) | (34) | (38) | (87) | |||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | 1 | ||||||||||||||||||||
Net income | 16 | 12 | 9 | |||||||||||||||||||
Total other comprehensive income (loss) | (1) | 5 | ||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interests | [4] | (1) | (2) | |||||||||||||||||||
Spin-offs of Park and HGV | 49 | |||||||||||||||||||||
Cumulative effect of the adoption of ASU 2016-09 | 5 | 5 | ||||||||||||||||||||
Distributions | (1) | (2) | (32) | (8) | (5) | |||||||||||||||||
Balance | $ (2) | $ (50) | $ (32) | $ (34) | $ (50) | $ (34) | $ (38) | |||||||||||||||
[1] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. | |||||||||||||||||||||
[2] | Adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. | |||||||||||||||||||||
[3] | Adjusted to reflect the Reverse Stock Split. See Note 1: "Organization and Basis of Presentation" for additional information. | |||||||||||||||||||||
[4] | Other comprehensive loss attributable to non-controlling interests was related to a currency translation adjustment. |
Stockholders' Equity and Acc136
Stockholders' Equity and Accumulated Other Comprehensive Loss - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Equity, Class of Treasury Stock [Line Items] | |
Stock repurchase program, authorized amount | $ 1,000 |
Common stock repurchased, average cost per share | $ / shares | $ 57.67 |
Repurchases of common stock, purchase price | $ 70 |
Stock repurchase program, remaining authorized repurchase amount | $ 930 |
Treasury Stock [member] | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchases of common stock, shares | shares | 1,213,415 |
Repurchases of common stock, purchase price | $ 70 |