Document
Document | 12 Months Ended |
Dec. 31, 2018 | |
Entity Information [Line Items] | |
Entity Registrant Name | Hilton Worldwide Holdings Inc. |
Entity Central Index Key | 0001585689 |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Document Type | S-4 |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Trading Symbol | hlt |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Current Assets: | |||
Cash and cash equivalents | $ 403 | $ 570 | |
Restricted cash and cash equivalents | 81 | 100 | |
Accounts receivable, net of allowance for doubtful accounts | 1,150 | 1,005 | |
Prepaid expenses | 160 | 127 | |
Income taxes receivable | 20 | 36 | |
Other | 169 | 169 | |
Total current assets | 1,983 | 2,007 | |
Intangibles and Other Assets: | |||
Goodwill | 5,160 | 5,190 | |
Brands | 4,869 | 4,890 | |
Management and franchise contracts, net | 872 | 953 | |
Other intangible assets, net | 415 | 433 | |
Property and equipment, net | 367 | 353 | |
Deferred income tax assets | 90 | 111 | |
Other | 239 | 291 | |
Total intangibles and other assets | 12,012 | 12,221 | |
Total assets | 13,995 | 14,228 | |
Current Liabilities: | |||
Accounts payable, accrued expenses and other | 1,530 | 1,416 | |
Deferred revenue, current | 350 | 366 | |
Current maturities of long-term debt | [1] | 16 | 46 |
Income taxes payable | 19 | 12 | |
Current portion of liability for guest loyalty program | 700 | 622 | |
Total current liabilities | 2,615 | 2,462 | |
Long-term debt | 7,266 | 6,556 | |
Deferred revenues | 826 | 829 | |
Deferred income tax liabilities | 898 | 931 | |
Liability for guest loyalty program | 969 | 839 | |
Other | 863 | 920 | |
Total liabilities | 13,437 | 12,537 | |
Commitments and contingencies | |||
Equity: | |||
Preferred stock | 0 | 0 | |
Common stock | 3 | 3 | |
Treasury stock, at cost | (2,625) | (891) | |
Additional paid-in capital | 10,372 | 10,298 | |
Accumulated deficit | (6,417) | (6,981) | |
Accumulated other comprehensive loss | (782) | (741) | |
Total Hilton stockholders' equity | 551 | 1,688 | |
Noncontrolling interests | 7 | 3 | |
Total equity | 558 | 1,691 | |
Total liabilities and equity | $ 13,995 | $ 14,228 | |
[1] | Balance as of December 31, 2017 is net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 42 | $ 29 |
Variable interest entities - current assets | 90 | 93 |
Variable interest entities - non-current assets | 178 | 171 |
Variable interest entities - current liabilities | 56 | 58 |
Variable interest entities - total liabilities | $ 263 | $ 271 |
Preferred stock, par value (per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 3,000,000,000 | 3,000,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 10,000,000,000 | 10,000,000,000 |
Common stock, issued shares | 332,105,163 | 331,054,014 |
Common stock, outstanding shares | 294,815,890 | 317,420,933 |
Treasury stock, at cost | 37,289,273 | 13,633,081 |
Consolidated Statements of Oper
Consolidated Statements of Operations Statement - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Revenues | $ 8,906 | $ 8,131 | $ 6,576 | ||
Depreciation and amortization | 325 | 336 | 353 | ||
General and administrative | 443 | 439 | 409 | ||
Other expenses | 51 | 56 | 66 | ||
Total expenses excluding reimbursable expenses | 2,151 | 2,100 | 2,107 | ||
Total expenses | 7,474 | 6,999 | 5,716 | ||
Gain on sales of assets, net | 0 | 0 | 8 | ||
Operating income | 1,432 | 1,132 | 868 | ||
Interest expense | (371) | (351) | (334) | ||
Gain (loss) on foreign currency transactions | (11) | 3 | (16) | ||
Loss on debt extinguishment | 0 | (60) | 0 | ||
Other non-operating income, net | 28 | 29 | 22 | ||
Income from continuing operations before income taxes | 1,078 | 753 | 540 | ||
Income tax benefit (expense) | (309) | 336 | (557) | ||
Income (loss) from continuing operations, net of taxes | 769 | 1,089 | (17) | ||
Income from discontinued operations, net of taxes | 0 | 0 | 371 | ||
Net income | 769 | 1,089 | 354 | ||
Net income attributable to noncontrolling interests | (5) | (5) | (16) | ||
Net income attributable to Hilton stockholders | $ 764 | $ 1,084 | $ 338 | ||
Earnings per share: Basic | |||||
Net income (loss) from continuing operations per share | $ 2.53 | $ 3.34 | $ (0.08) | ||
Net income from discontinued operations per share | 0 | 0 | 1.11 | ||
Net income per share, basic | 2.53 | [1] | 3.34 | [1] | 1.03 |
Earnings per share: Diluted | |||||
Net income (loss) from continuing operations per share | 2.50 | 3.32 | (0.08) | ||
Net income from discontinued operations per share | 0 | 0 | 1.11 | ||
Net income per share, diluted | 2.50 | [1] | 3.32 | [1] | 1.03 |
Cash dividends declared per share | $ 0.60 | $ 0.60 | $ 0.84 | ||
Franchise and licensing fees [member] | |||||
Revenues | $ 1,530 | $ 1,321 | $ 1,091 | ||
Base and other management fees [member] | |||||
Revenues | 321 | 324 | 230 | ||
Incentive management fees [member] | |||||
Revenues | 235 | 222 | 142 | ||
Owned and leased hotels [member] | |||||
Revenues | 1,484 | 1,432 | 1,434 | ||
Expenses | 1,332 | 1,269 | 1,279 | ||
Other revenues [member] | |||||
Revenues | 98 | 105 | 82 | ||
Total revenues excluding reimbursable revenues [member] | |||||
Revenues | 3,668 | 3,404 | 2,979 | ||
Other revenues from managed and franchised properties [member] | |||||
Revenues | 5,238 | 4,727 | 3,597 | ||
Other expenses from managed and franchised properties [member] | |||||
Expenses | $ 5,323 | $ 4,899 | $ 3,609 | ||
[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. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 225 | $ 164 | $ 217 | $ 163 | $ 730 | $ 160 | $ 151 | $ 48 | $ 769 | $ 1,089 | $ 354 |
Other comprehensive income (loss), net of tax: | |||||||||||
Currency translation adjustment | (70) | 162 | (159) | ||||||||
Pension liability adjustment | (9) | 22 | (57) | ||||||||
Cash flow hedge adjustment | 22 | 13 | (2) | ||||||||
Total other comprehensive income (loss) | (57) | 197 | (218) | ||||||||
Comprehensive income | 712 | 1,286 | 136 | ||||||||
Comprehensive income attributable to noncontrolling interests | (5) | (5) | (15) | ||||||||
Comprehensive income attributable to Hilton stockholders | $ 707 | $ 1,281 | $ 121 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Currency translation adjustment, tax benefit | $ 6 | $ 32 | $ 19 |
Pension liability adjustment, tax benefit (expense) | 3 | (8) | (2) |
Cash flow hedge adjustment, tax benefit (expense) | $ (8) | $ (7) | $ 2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities: | |||
Net income | $ 769 | $ 1,089 | $ 354 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of contract acquisition costs | 27 | 17 | 16 |
Depreciation and amortization from continuing and discontinued operations | 325 | 336 | 673 |
Gain on sales of assets, net, including discontinued operations | 0 | 0 | (9) |
Loss (gain) on foreign currency transactions, including discontinued operations | 11 | (3) | 13 |
Loss on debt extinguishment | 0 | 60 | 0 |
Share-based compensation | 127 | 121 | 91 |
Amortization of deferred financing costs and other | 16 | 15 | 32 |
Distributions from unconsolidated affiliates | 4 | 1 | 22 |
Deferred income taxes, including discontinued operations | (14) | (729) | (85) |
Contract acquisition costs | (103) | (75) | (55) |
Accounts receivable, net | (161) | (204) | (156) |
Prepaid expenses | (39) | (11) | (20) |
Income taxes receivable | 17 | (24) | 84 |
Other current assets | (4) | 0 | (2) |
Accounts payable, accrued expenses and other | 139 | 25 | 248 |
Income taxes payable | 9 | (42) | 28 |
Change in timeshare financing receivables | 0 | 0 | (54) |
Change in deferred revenues | (18) | 334 | 534 |
Change in liability for guest loyalty program | 207 | 29 | 154 |
Change in other liabilities | (53) | (95) | (247) |
Other | (4) | 5 | (311) |
Net cash provided by operating activities | 1,255 | 849 | 1,310 |
Investing Activities: | |||
Capital expenditures for property and equipment | (72) | (58) | (317) |
Payments received on other financing receivables | 50 | 7 | 3 |
Capitalized software costs | (87) | (75) | (81) |
Other | (22) | (21) | (28) |
Net cash used in investing activities | (131) | (147) | (423) |
Financing Activities: | |||
Borrowings | 1,676 | 1,824 | 4,715 |
Repayment of debt | (1,005) | (1,860) | (4,359) |
Debt issuance costs and redemption premium | (21) | (69) | (76) |
Dividends paid | (181) | (195) | (277) |
Cash transferred in spin-offs of Park and HGV | 0 | (501) | 0 |
Repurchases of common stock | (1,721) | (891) | 0 |
Distributions to noncontrolling interests | (1) | (1) | (32) |
Tax withholdings on share-based compensation | (44) | (31) | (15) |
Acquisition of noncontrolling interest | (3) | 0 | 0 |
Net cash used in financing activities | (1,300) | (1,724) | (44) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (10) | 8 | (15) |
Net increase (decrease) in cash, restricted cash and cash equivalents | (186) | (1,014) | 828 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 670 | 1,183 | 633 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 501 | 223 |
Cash, restricted cash and cash equivalents, beginning of period | 670 | 1,684 | 856 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 484 | 670 | 1,183 |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | 501 |
Cash, restricted cash and cash equivalents, end of period | $ 484 | $ 670 | $ 1,684 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity Statement - USD ($) $ in Millions | Total | Common stock | Treasury stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interests |
Beginning balance, shares at Dec. 31, 2015 | 329,000,000 | ||||||
Beginning balance, equity attributable to Hilton stockholders at Dec. 31, 2015 | $ 3 | $ 0 | $ 10,158 | $ (3,392) | $ (784) | ||
Beginning balance, equity attributable to noncontrolling interest at Dec. 31, 2015 | $ (34) | ||||||
Beginning balance, equity at Dec. 31, 2015 | $ 5,951 | ||||||
Net income attributable to Hilton stockholders | 338 | 338 | |||||
Net income attributable to Hilton stockholders | Accounting standards update 2014-09 | (10) | ||||||
Net income attributable to noncontrolling interests | 16 | 16 | |||||
Net income attributable to noncontrolling interests | Accounting standards update 2014-09 | 0 | ||||||
Net income | 354 | ||||||
Net income | Accounting standards update 2014-09 | (10) | ||||||
Currency translation adjustment | (159) | (158) | (1) | ||||
Pension liability adjustment | (57) | (57) | |||||
Cash flow hedge adjustment | (2) | (2) | |||||
Other comprehensive income (loss), net of tax, attributable to Hilton stockholders | (217) | ||||||
Other comprehensive income (loss), net of tax, attributable to noncontrolling interest | (1) | ||||||
Other comprehensive income (loss), net of tax | (218) | ||||||
Dividends | (279) | (279) | |||||
Share-based compensation | 62 | 62 | |||||
Distributions | (32) | (32) | |||||
Acquisition of noncontrolling interest | 0 | ||||||
Deconsolidation of a variable interest entity | (4) | (4) | |||||
Ending balance, shares at Dec. 31, 2016 | 329,000,000 | ||||||
Ending balance, equity attributable to Hilton stockholders at Dec. 31, 2016 | $ 3 | 0 | 10,220 | (3,545) | (1,001) | ||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2016 | (50) | ||||||
Ending balance, equity at Dec. 31, 2016 | 5,627 | ||||||
Cumulative effect of the adoption of ASU | Accounting standards update 2014-09 | (212) | (212) | |||||
Cumulative effect of the adoption of ASU | Accounting standards update 2015-02 | 5 | 5 | |||||
Net income attributable to Hilton stockholders | 1,084 | 1,084 | |||||
Net income attributable to Hilton stockholders | Accounting standards update 2014-09 | (175) | ||||||
Net income attributable to noncontrolling interests | 5 | 5 | |||||
Net income attributable to noncontrolling interests | Accounting standards update 2014-09 | 0 | ||||||
Net income | 1,089 | ||||||
Net income | Accounting standards update 2014-09 | (175) | ||||||
Currency translation adjustment | 162 | 162 | |||||
Pension liability adjustment | 22 | 22 | |||||
Cash flow hedge adjustment | 13 | 13 | |||||
Other comprehensive income (loss), net of tax, attributable to Hilton stockholders | 197 | ||||||
Other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | ||||||
Other comprehensive income (loss), net of tax | 197 | ||||||
Dividends | (196) | (196) | |||||
Repurchases of common stock, shares | (14,000,000) | ||||||
Repurchases of common stock | (891) | (891) | |||||
Share-based compensation, shares | 2,000,000 | ||||||
Share-based compensation | 77 | 77 | |||||
Distributions | (1) | (1) | |||||
Spin-offs of Park and HGV | (4,211) | (4,323) | 63 | 49 | |||
Acquisition of noncontrolling interest | $ 0 | ||||||
Ending balance, shares at Dec. 31, 2017 | 317,420,933 | 317,000,000 | |||||
Ending balance, equity attributable to Hilton stockholders at Dec. 31, 2017 | $ 1,688 | $ 3 | (891) | 10,298 | (6,981) | (741) | |
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2017 | (3) | 3 | |||||
Ending balance, equity at Dec. 31, 2017 | 1,691 | ||||||
Ending balance, equity (Accounting standards update 2014-09) at Dec. 31, 2017 | (384) | ||||||
Cumulative effect of the adoption of ASU | Accounting standards update 2016-09 | 0 | 1 | (1) | ||||
Net income attributable to Hilton stockholders | 764 | 764 | |||||
Net income attributable to noncontrolling interests | 5 | 5 | |||||
Net income | 769 | ||||||
Currency translation adjustment | (70) | (70) | |||||
Pension liability adjustment | (9) | (9) | |||||
Cash flow hedge adjustment | 22 | 22 | |||||
Other comprehensive income (loss), net of tax, attributable to Hilton stockholders | (57) | ||||||
Other comprehensive income (loss), net of tax, attributable to noncontrolling interest | 0 | ||||||
Other comprehensive income (loss), net of tax | (57) | ||||||
Dividends | (184) | (184) | |||||
Repurchases of common stock, shares | (23,000,000) | ||||||
Repurchases of common stock | (1,721) | (1,721) | |||||
Share-based compensation, shares | 1,000,000 | ||||||
Share-based compensation | 64 | (13) | 77 | ||||
Distributions | (1) | (1) | |||||
Acquisition of noncontrolling interest | $ (3) | (3) | |||||
Ending balance, shares at Dec. 31, 2018 | 294,815,890 | 295,000,000 | |||||
Ending balance, equity attributable to Hilton stockholders at Dec. 31, 2018 | $ 551 | $ 3 | $ (2,625) | $ 10,372 | (6,417) | (782) | |
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2018 | (7) | $ 7 | |||||
Ending balance, equity at Dec. 31, 2018 | 558 | ||||||
Cumulative effect of the adoption of ASU | Accounting standards update 2018-02 | $ 0 | $ (16) | $ (16) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 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, 2018 , we managed, franchised, owned or leased 5,685 hotels and resorts, totaling 912,960 rooms in 113 countries and territories. In March 2017, HNA Tourism Group Co., Ltd and certain affiliates ("HNA") acquired 82.5 million shares of Hilton common stock from affiliates of The Blackstone Group L.P. ("Blackstone"), resulting in a 25 percent equity interest of our common stock. In April and May 2018, HNA and Blackstone, respectively, fully divested of their investments in Hilton. 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. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation These consolidated financial statements present the consolidated financial position and results of operations of Hilton as of and for the years ended December 31, 2018 , 2017 and 2016 , with the combined historical financial results of Park and HGV for the year ended December 31, 2016 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 or HGV. Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and entities in which we have a controlling financial interest, including variable interest entities ("VIEs") for which 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. Use of Estimates The preparation of financial statements in conformity with United States ("U.S") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Reclassifications On January 1, 2018, we adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09") using the full retrospective approach as of January 1, 2016. All amounts and disclosures set forth in this prospectus reflect the necessary adjustments required for the adoption of this standard, including the reclassification of prior period balances to conform to current year presentation. See "Summary of Significant Accounting Policies" below for additional information. Summary of Significant Accounting Policies Revenue Recognition Revenues are primarily derived from management and franchise contracts with third-party hotel and resort owners, as well as from our owned and leased hotels. The majority of our performance obligations are a series of distinct goods or services, for which we receive variable consideration through our management and franchise fees or fixed consideration through our owned and leased hotels. We allocate the variable fees to the distinct services to which they relate applying the prescribed variable consideration allocation guidance, and we allocate fixed consideration to the related performance obligations based on their estimated standalone selling prices. We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less, which it is in substantially all cases. Additionally, we do not typically include extended payment terms in our contracts with customers. Management and franchise revenues We identified the following performance obligations in connection with our management and franchise contracts: • Intellectual Property ("IP") licenses grant the right to access our hotel system IP, including brand IP, reservations systems and property management systems. • Hotel management services include providing day-to-day management services of the hotels for the property owners. • Development services include providing consultative services (e.g., design assistance and contractor selection) to the property owner to assist with the construction of the hotel prior to the hotel opening. • Pre-opening services include providing services (e.g., advertising, budgeting, e-commerce strategies, food and beverage testing) to the property owner to assist in preparing for the hotel opening. • Substantive rights for free or discounted goods or services to hotel guests are satisfied at the earlier point in time of either when the substantive right expires or the underlying free or discounted good or service is provided to the hotel guest. Each of the identified performance obligations is considered to be a series of distinct services transferred over time. While the underlying activities may vary from day to day, the nature of the commitments are the same each day, and the property owner can independently benefit from each day's services. Management and franchise fees are typically based on the sales or usage of the underlying hotel, with the exception of fixed upfront fees, which usually represent an insignificant portion of the transaction price. Franchise and licensing fees represent fees earned in connection with the licensing of one of our brands, usually under long-term contracts with the property owner, and include the following: • Royalty fees are generally based on a percentage of the hotel's monthly gross room revenue and, in some cases, may also include a percentage of gross food and beverage revenues and other revenues, as applicable. These fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Application, initiation and other fees are charged when: (i) new hotels enter our system; (ii) there is a change of ownership of a hotel; or (iii) contracts with properties already in our system are extended. These fees are typically fixed and collected upfront and are recognized as revenue over the term of the franchise contract. We do not consider this advance consideration to include a significant financing component, since it is used to protect us from the property owner failing to adequately complete some or all of its obligations under the contract. • Licensing fees are earned from: (i) a license agreement with HGV to use certain Hilton marks and IP in its timeshare business, which are typically billed and collected monthly, and revenue is generally recognized at the same time the fees are billed and (ii) co-brand credit card arrangements, which are recognized as revenue when points for our guest loyalty program, Hilton Honors, are issued, generally as spend on the co-branded credit card occurs; see further discussion below under "Hilton Honors." Consideration paid or anticipated to be paid to incentivize hotel owners to enter into franchise contracts with us is amortized over the life of the applicable contract as a reduction to franchise and licensing fees. Management fees represent fees earned from hotels that we manage, usually under long-term contracts with the property owner, and include the following: • Base management fees are generally based on a percentage of the hotel's monthly gross revenue. Base fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Incentive management fees are generally based on a percentage of the hotel's operating profits and in some cases may be subject to a stated return threshold to the property owner, normally over a one-calendar year period (the "incentive period"). Incentive fee revenue is recognized on a monthly basis, but only to the extent the cumulative fee earned does not exceed the probable fee for the incentive period. Incentive fee payment terms vary, but they are generally billed and collected monthly or annually upon completion of the incentive period. Consideration paid or anticipated to be paid to incentivize hotel owners to enter into management contracts with us is amortized over the life of the applicable contract as a reduction to base and other management fees. We do not estimate revenues expected to be recognized related to our unsatisfied performance obligations for our: (i) royalty fees, since they are considered sales-based royalty fees recognized as hotel room sales occur in exchange for licenses of our brand names over the terms of the franchise contracts and (ii) base management fees and incentive management fees, since they are allocated entirely to the wholly unsatisfied promise to transfer management services, which form part of a single performance obligation in a series, over the term of the individual management contract. Other revenues from managed and franchised properties represent amounts that are contractually reimbursed to us by property owners, either directly as costs are incurred or indirectly through fees that are billed and collected in advance related to certain costs and expenses of the related properties, and include the following: • Direct reimbursements include payroll and related costs and certain other operating costs of the managed and franchised properties' operations, which are contractually reimbursed to us by the property owners as expenses are incurred. Revenue is recognized based on the amount of expenses incurred by Hilton, which are presented as other expenses from managed and franchised properties in our consolidated statements of operations, that are then reimbursed to us by the property owner typically on a monthly basis, which results in no net effect on operating income (loss) or net income (loss). • Indirect reimbursements include marketing expenses and other expenses associated with our brands and shared services, which are paid from fees collected by Hilton from the managed and franchised properties. Indirect reimbursements are typically billed and collected monthly, based on the underlying hotel's sales or usage (such as gross room revenue and number of reservations processed), and revenue is generally recognized as services are provided. System implementation fees charged to property owners are deferred and recognized as revenue over the term of the management or franchise contract. The corresponding expenses are expensed as incurred and are presented as other expenses from managed and franchised properties in our consolidated statements of operations and are expected to equal the revenues earned from indirect reimbursements over time. The management and franchise fees and reimbursements from third-party hotel owners are allocated to the performance obligations and the distinct services to which they relate using their estimated standalone selling prices. The terms of the fees earned under the contract relate to a specific outcome of providing the services (e.g., hotel room sales) or to Hilton's efforts (e.g., costs) to satisfy the performance obligations. Using time as the measure of progress, we recognize fee revenue and indirect reimbursements in the period earned per the terms of the contract and revenue related to direct reimbursements in the period in which the cost is incurred. Owned and leased hotel revenues We identified the following performance obligations in connection with our owned and leased hotel revenues, for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: • Cancellable room reservations or ancillary services are typically satisfied as the good or service is transferred to the hotel guest, which is generally when the room stay occurs. • Noncancellable room reservations and banquet or conference reservations represent a series of distinct goods or services provided over time and satisfied as each distinct good or service is provided, which is reflected by the duration of the reservation. • Substantive rights for free or discounted goods or services are satisfied at the earlier of when: (i) the substantive right expires or (ii) the underlying free or discounted good or service is provided to the hotel guest. • Other ancillary goods and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest. • Components of package reservations for which each component could be sold separately to other hotel guests are considered separate performance obligations and are satisfied as set forth above. Owned and leased hotel revenues primarily consist of hotel room sales, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking) related to owned, leased and consolidated non-wholly owned hotel properties. Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. Owned and leased hotel revenues are reduced upon issuance of Hilton Honors points for Hilton Honors members' paid stay transactions and are recognized when Hilton Honors points are redeemed for a free stay at an owned or leased hotel (see the "Hilton Honors" section below for additional information). Although the transaction prices of hotel room sales, goods and other services are generally fixed and based on the respective room reservation or other agreement, an estimate to reduce the transaction price is required if a discount is expected to be provided to the customer. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. On occasion, the hotel may also provide the customer with a substantive right to a free or discounted good or service in conjunction with a room reservation or banquet contract (e.g., free breakfast and free room night for every four nights booked). These substantive rights are considered separate performance obligations to which a portion of the transaction price is allocated based on the estimated standalone selling prices of the good or service, adjusted for the likelihood the hotel guest will exercise the right. Other revenues Other revenues include revenues generated by the incidental support of hotel operations for owned, leased, managed and franchised hotels, including purchasing operations, and other operating income. Purchasing revenues include any amounts received for vendor rebate arrangements that we participate in as a manager of hotels. Taxes and fees collected on behalf of governmental agencies We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in our measurement of transaction prices. We have elected to present revenue net of sales taxes and other similar taxes. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. 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 historical results and financial position of discontinued operations are separately presented in our consolidated financial statements. 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, including self-insurance collateral, and furniture, fixtures and equipment replacement reserves required under certain lease agreements. 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. Contract Assets Contract assets relate to incentive management fees for which the period of service has passed, but for which our right to consideration is conditional upon completing the requirements of the incentive fee period. Contract assets are included in other current assets in our consolidated balance sheets and are reclassified to accounts receivable when our right to consideration becomes unconditional. 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 affiliates 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 values of our reporting units to their fair values. Our reporting units are the same as our operating segments as described in Note 19 : " Business Segments ." 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 if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, including goodwill. The estimated fair value is based on 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 value, goodwill of the reporting unit is not impaired; otherwise, an impairment loss would be recognized in our consolidated statements of operations in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Brands We manage, franchise, own and lease 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, 2018 , our brand portfolio included Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Motto 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. LXR Hotels & Resorts, Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Motto by Hilton, Tru by Hilton, and Home2 Suites by Hilton were launched post-Merger and, as such, they were not assigned fair values, and we do not have any intangible assets for these brands recorded in our consolidated balances sheets. We evaluate our brands intangible assets for impairment on an annual basis or at other times during the year 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 if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The estimated fair value is based on internal projections of expected future cash flows. If a brand intangible asset’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 as an 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 contracts, franchise contracts, leases, certain proprietary technologies and our Hilton Honors guest loyalty program. Additionally, we capitalize cash consideration paid to incentivize hotel owners to enter into management and franchise contracts with us as contract acquisition costs and the incremental costs to obtain or fulfill the contracts as development commissions, which are generally fixed. We also capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses, as well as internal and external costs incurred in connection with the development of upgrades or enhancements that result in additional information technology functionality. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which for contract acquisition costs and development commissions is the contract term, including any renewal periods that are at our sole option. These estimated useful lives are generally as follows: management contracts recorded at the Merger ( 13 to 16 years); management contract acquisition costs and development commissions ( 20 to 30 years); franchise contracts recorded at the Merger ( 12 to 13 years); franchise contract acquisition costs and development commissions ( 10 to 20 years); leases ( 12 to 35 years); Hilton Honors ( 16 years); and capitalized software development costs ( 3 years). In our consolidated statements of operations, the amortization of these intangible assets, excluding contract acquisition costs, is included in depreciation and amortization expense, and the amortization of contract acquisition costs is recognized as a reduction to franchise and licensing fees and base and other management fees, based on contract type. Costs incurred prior to the acquisition of a contract, such as external legal costs, are expensed as incurred and included in general and administrative expenses in our consolidated statements of operations. Cash flows for contract acquisition costs and development commissions are included as operating activities in our consolidated statements of cash flows, and cash flows for software development costs are included as investing activities. We review all finite lived intangible assets for impairment when indicators of impairment exist. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset group. If the carrying value of the asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the estimated 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 impairment. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset group. If it is determined that the expected undiscounted future cash flows are less than the net carrying value of the asset group, the excess of the net carrying 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 group using discount and capitalization rates deemed reasonable for the type of assets, 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 or through the normal operation of the asset. Contract Liabilities Contract liabilities relate to: (i) advance consideration received from hotel owners at contract inception for services considered to be part of the contract performance obligations, such as application, initiation and other fees; (ii) advance consideration received for certain indirect reimbursements, such as system implementation fees; and (iii) amounts received when points are issued under Hilton Honors, but for which revenue is not yet recognized, since the related points are not yet redeemed. Contract liabilities related to advance consideration received for fees and certain indirect reimbursements are recognized as revenue over the term of the related contract. Contract liabilities related to amounts received for Hilton Honors are recognized as revenue when the points are redeemed for a free good or service by the Hilton Honors member, which, on average, occurs within two years of points issuance. Contract liabilities are included in deferred revenues in our consolidated balance sheets. Hilton Honors Hilton Honors is our guest loyalty and marketing program provided to our hotel and resort properties. Nearly all of our managed, franchised, owned and leased 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, they are provided with a substantive right to free or discounted goods or services in the future upon accumulation of the required level of Hilton Honors points. Points may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties, including, but not limited to, airlines, car rentals, cruises, vacation packages, shopping and dining. As points are issued to a Hilton Honors member, the property or program partner pays Hilton Honors based on an estimated cost per point for the costs of operating the program, which include marketing, promotion, communication and administrative expenses, as well as the estimated cost of award redemptions. When these payments are received we record amounts equal to the estimated cost per point of the future redemption obligation within the liability for guest loyalty program and any amounts received in excess of the estimated cost per point within deferred revenues in our consolidated balance sheets. We engage outside actuaries to assist in determining the fair value of the future redemption obligation using statistical formulas that project future point redemptions based on factors that include historical experience, an estimate of points that will eventually be redeemed, which includes an estimate of "breakage" for points that will never be redeemed, and the cost of reimbursing properties and other third parties with respect to other redemption opportunities available to Hilton Honors members. When points are issued as a result of a stay at an owned or leased hotel, we recognize a reduction in owned and leased hotel revenues, since we are also the guest loyalty program sponsor. For the Hilton Honors fees that are charged to the participating properties, we allocate the fees to the substantive right created by the Hilton Honors points that are issued using the variable consideration allocation guidance, since the fees are directly related to the issuance of Hilton Honors points to the Hilton Honors member and Hilton's efforts to satisfy the future redemption of those Hilton Honors points. The transaction prices for the Hilton Honors points are reduced by the expected payments to the third parties that will provide the free or discounted room or service using the actuarial projection of the cost per point. The remaining transaction price is then further allocated to the points that are expected to be redeemed, adjusting the points that are issued for estimated breakage, and recognized when those points are redeemed. While the points are outstanding, both the estimate of the expected payments to third parties (cost per point) and the estimated breakage are reevaluated, and the amount of revenue recognized when each point is redeemed is adjusted so that the final amount allocated to the substantive right of the customer to use the point is reflective of the amount retained for providing the free or discounted goods and services, net of the payments to third parties and points not redeemed. We also earn licensing fees from co-brand credit card arrangements (see "Management and franchise revenues" within the "Revenue Recognition" section above). The co-brand license fee is allocated between two performance obligations based on their estimated standalone selling prices: (i) an IP license using the relief-from-royalty method and (ii) substantive rights for free or discounted goods or services to the credit card customers using a cost plus method based on an evaluation of other third-party administrators. We satisfy our performance obligation related to points issued under Hilton Honors when points are redeemed for a free or discounted good or service by the Hilton Honors member, and we satisfy our remaining performance obligations over time as the customer simultaneously receives and consumes the benefits of the goods or services provided. Hilton Honors reimburses participating properties and applicable third parties when points are redeemed by members, at which time the redemption obligation is reduced and the related deferred revenue is recognized in other revenues from managed and franchised properties in our consolidated statements of operations. Additionally, when Hilton Honors members redeem award certificates at our owned and leased hotels, we recognize room revenue, included in owned and leased hotel revenues in our consolidated statements of o |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 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 "Spin-Off 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 Spin-Off Distribution, including: (i) a Distribution Agreement; (ii) an Employee Matters Agreement; (iii) a Tax Matters Agreement; (iv) a Transition Services Agreement ("TSA"); (v) a license agreement with HGV; (vi) a Tax Stockholders Agreement; and (vii) management and franchise contracts with Park. Under the TSA with Park and HGV, Hilton or one of its affiliates provided Park and HGV certain services for a period of up to two years from the date of the TSA to facilitate an orderly transition following the Spin-Off Distribution. The services that Hilton provided under the TSA included: finance; information technology; human resources and compensation; facilities; legal and compliance; and other services. The entity that provided the services was compensated for such services at agreed amounts as set forth in the TSA. The license agreement with HGV grants HGV the exclusive right, for an initial term of 100 years , to use certain Hilton marks and IP in its timeshare business, subject to the terms and conditions of the agreement. HGV pays a royalty fee of five percent of gross revenues, as defined in the agreement, to Hilton, as well as specified additional fees and reimbursements. Additionally, during the term of the agreement, HGV will participate in Hilton’s guest loyalty program, Hilton Honors. Under the management and franchise contracts with Park, Park pays management fees for various services that Hilton provides to support the operations of their hotels, as well as royalty fees for the licensing of Hilton's hotel brands. Additionally, payroll and related costs, certain other operating costs, marketing expenses and other expenses associated with Hilton's brands and shared services are reimbursed to Hilton by Park pursuant to the terms of the management and franchise contracts. Financial Information During the years ended December 31, 2018 and 2017 , we recognized $154 million and $157 million , respectively, of management and franchise fees and $1,167 million and $1,197 million , respectively, of other revenues from managed and franchised properties under our management and franchise contracts with Park. We also recognized franchise and licensing fees under our license agreement w ith HGV of $98 million and $87 million , respectively. 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 report a timeshare segment, as we no longer have timeshare operations. The following table presents the results of operations of Park and HGV that were included in discontinued operations in our consolidated statement of operations for the year ended December 31, 2016: (in millions) Total revenues from discontinued operations $ 4,236 Expenses Owned and leased hotels 1,770 Timeshare 942 Depreciation and amortization 320 Other 298 Total expenses from discontinued operations 3,330 Gain on sales of assets, net 1 Operating income from discontinued operations 907 Non-operating loss, net (210 ) Income from discontinued operations before income taxes 697 Income tax expense (326 ) Income from discontinued operations, net of taxes 371 Income from discontinued operations attributable to noncontrolling interests, net of taxes (6 ) Income from discontinued operations attributable to Hilton stockholders, net of taxes $ 365 The following table presents selected financial information of Park and HGV that was included in our consolidated statement of cash flows for the year ended December 31, 2016: (in millions) Non-cash items included in net income: Depreciation and amortization $ 320 Gain on sales of assets, net (1 ) Investing activities: Capital expenditures for property and equipment $ (255 ) |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customer | Revenues from Contracts with Customers Contract Liabilities The following table summarizes the activity of our contract liabilities during the year ended December 31, 2018: in millions Balance as of December 31, 2017 $ 1,087 Cash received in advance and not recognized as revenue (1) 377 Revenue recognized (1) (229 ) Other (2) (175 ) Balance as of December 31, 2018 $ 1,060 ____________ (1) Primarily related to Hilton Honors. (2) Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. We recognized revenues that were previously deferred as contract liabilities of $132 million and $211 million during the years ended December 31, 2017 and 2016, respectively. Performance Obligations As of December 31, 2018 , we had $471 million of deferred revenues related to unsatisfied performance obligations under Hilton Honors that will be recognized as revenues when the points are redeemed, which we estimate will occur over the next two years . Additionally, we had $589 million of deferred revenues related to application, initiation and licensing fees, which are expected to be recognized as revenues in future periods over the terms of the related contracts. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of December 31, 2018 and 2017 , we consolidated three VIEs: two entities that lease hotel properties and one management company. We consolidated these VIEs, since we are the primary beneficiaries of them 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 consolidated 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, 2018 2017 (in millions) Cash and cash equivalents $ 71 $ 73 Accounts receivable, net 15 16 Property and equipment, net 68 57 Deferred income tax assets 53 56 Other non-current assets 58 57 Accounts payable, accrued expenses and other 41 43 Long-term debt (1) 205 212 Other long-term liabilities 15 13 ____________ (1) Includes capital lease obligations of $187 million and $191 million as of December 31, 2018 and 2017, respectively. During the years ended December 31, 2018 , 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management and Franchise (2) Total (in millions) Balance as of December 31, 2016 $ 184 $ 5,034 $ 5,218 Spin-off of Park (91 ) — (91 ) Foreign currency translation 11 52 63 Balance as of December 31, 2017 104 5,086 5,190 Foreign currency translation (5 ) (25 ) (30 ) Balance as of December 31, 2018 $ 99 $ 5,061 $ 5,160 ____________ (1) Amounts 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-off of Park (423 ) 332 (91 ) Foreign currency translation 11 — 11 Balance as of December 31, 2017 444 (340 ) 104 Foreign currency translation (5 ) — (5 ) Balance as of December 31, 2018 $ 439 $ (340 ) $ 99 (2) There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2018, 2017 and 2016. Intangible Assets Changes to our brands intangible assets from December 31, 2017 to December 31, 2018 were due to foreign currency translations. Amortizing intangible assets were as follows: December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,228 $ (1,873 ) $ 355 Contract acquisition costs 525 (101 ) 424 Development commissions 108 (15 ) 93 $ 2,861 $ (1,989 ) $ 872 Other intangible assets: Leases (1) $ 288 $ (161 ) $ 127 Capitalized software costs 503 (321 ) 182 Hilton Honors (1) 338 (236 ) 102 Other (1) 38 (34 ) 4 $ 1,167 $ (752 ) $ 415 December 31, 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,242 $ (1,716 ) $ 526 Contract acquisition costs 416 (74 ) 342 Development commissions 97 (12 ) 85 $ 2,755 $ (1,802 ) $ 953 Other intangible assets: Leases (1) $ 301 $ (153 ) $ 148 Capitalized software costs 585 (428 ) 157 Hilton Honors (1) 341 (217 ) 124 Other (1) 38 (34 ) 4 $ 1,265 $ (832 ) $ 433 ____________ (1) Includes intangible assets that were initially recorded at their fair value at the time of the Merger. Amortization of our amortizing intangible assets was as follows: Year Ended December 31, 2018 2017 2016 (in millions) Recognized in depreciation and amortization expense (1) $ 271 $ 277 $ 301 Recognized as a reduction of franchise and licensing fees and base and other management fees 27 17 16 ____________ (1) Includes amortization expense that was associated with assets recorded at their fair value at the time of the Merger of $204 million , $206 million and $208 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, and amortization expense on capitalized software costs of $62 million , $67 million and $87 million , respectively. We estimate future amortization of our amortizing intangible assets as of December 31, 2018 to be as follows: Recognized in Depreciation and Amortization Expense Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees Year (in millions) 2019 $ 279 $ 27 2020 236 25 2021 97 24 2022 66 22 2023 48 22 Thereafter 137 304 $ 863 $ 424 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment were as follows: December 31, 2018 2017 (in millions) Land $ 12 $ 12 Buildings and leasehold improvements (1) 456 428 Furniture and equipment 356 346 Construction-in-progress 24 17 848 803 Accumulated depreciation (1) (481 ) (450 ) $ 367 $ 353 ____________ (1) Buildings and leasehold improvements included $65 million and $68 million of capital lease assets as of December 31, 2018 and 2017 , respectively, with associated accumulated amortization of $45 million and $43 million , respectively. Depreciation expense on property and equipment was $54 million , $59 million and $52 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts Payable, Accrued Expenses and Other Accounts payable, accrued expenses and other were as follows: December 31, 2018 2017 (in millions) Accrued employee compensation and benefits $ 532 $ 502 Accounts payable 283 282 Insurance reserves, current 199 189 Other accrued expenses (1) 516 443 $ 1,530 $ 1,416 ____________ (1) Includes deposit liabilities related to hotel operations and application fees, taxes, interest and other accrued balances. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term Debt Long-term debt balances, including obligations for capital leases, and associated interest rates as of December 31, 2018 were as follows: December 31, 2018 2017 (in millions) Senior notes with a rate of 4.250%, due 2024 $ 1,000 $ 1,000 Senior notes with a rate of 4.625%, due 2025 900 900 Senior notes with a rate of 5.125%, due 2026 1,500 — Senior notes with a rate of 4.875%, due 2027 600 600 Senior secured term loan facility with a rate of 4.26%, due 2023 3,119 3,929 Capital lease obligations with an average rate of 6.43%, due 2021 to 2030 225 233 Other debt with an average rate of 3.08%, due 2026 17 21 7,361 6,683 Less: unamortized deferred financing costs and discount (79 ) (81 ) Less: current maturities of long-term debt (1) (16 ) (46 ) $ 7,266 $ 6,556 ____________ (1) Balance as of December 31, 2017 is net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. Senior Notes In April 2018, we issued $1.5 billion aggregate principal amount of 5.125% Senior Notes due 2026 (the "2026 Senior Notes"), and incurred $21 million of debt issuance costs. Interest on the 2026 Senior Notes is payable semi-annually in arrears on May 1 and November 1 of each year, beginning November 2018. We used a portion of the net proceeds from the issuance of the 2026 Senior Notes, together with borrowings under our senior secured revolving credit facility (the "Revolving Credit Facility") and available cash, to repurchase 16.5 million shares of our common stock from HNA for $1,171 million and repay $500 million outstanding under our senior secured term loan facility (the "Term Loans"). See "Senior Secured Credit Facilities" below for additional information. In March 2017, we used the proceeds from issuances of the 4.625% Senior Notes due 2025 (the "2025 Senior Notes") and the 4.875% Senior Notes due 2027 (the "2027 Senior Notes"), to redeem in full $1.5 billion of Senior Notes due 2021 (the "2021 Senior Notes"). In connection with the repayment, we paid a redemption premium of $42 million and accelerated the recognition of $18 million of unamortized deferred financing costs, which were included in loss on debt extinguishment in our consolidated statement of operations for the year ended December 31, 2017 . The 4.250% Senior Notes due 2024 (the "2024 Senior Notes"), the 2025 Senior Notes, the 2026 Senior Notes and the 2027 Senior Notes are guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries. See Note 23 : " Condensed Consolidating Guarantor Financial Information " for additional information. Senior Secured Credit Facilities Our senior secured credit facility consists of a $1.0 billion Revolving Credit Facility and the Term Loans. The obligations of our senior secured credit facility are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries. During the year ended December 31, 2018, we borrowed $150 million under the Revolving Credit Facility, and all amounts borrowed were repaid in the same period. Subsequent to December 31, 2018, we drew a net $100 million under the Revolving Credit Facility. In December 2018, we repaid an additional $300 million outstanding under our Term Loans, and as a result of the repayments made during the year ended December 31, 2018 , we accelerated the recognition of $8 million of unamortized deferred financing costs and discount, which were included in other non-operating income, net in our consolidated statement of operations. Additionally, the interest rate on the remaining balance of the Term Loans was reduced by 25 basis points to LIBOR plus 175 basis points . As of December 31, 2018 , we had $63 million of letters of credit outstanding under our Revolving Credit Facility and a borrowing capacity of $937 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. Debt Maturities The contractual maturities of long-term debt as of December 31, 2018 , were as follows: Year (in millions) 2019 $ 16 2020 17 2021 18 2022 19 2023 3,139 Thereafter 4,152 $ 7,361 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other Liabilities Other long-term liabilities were as follows: December 31, 2018 2017 (in millions) Pension obligations $ 145 $ 165 Other long-term tax liabilities 395 397 Deferred employee compensation and benefits 113 117 Insurance reserves (1) 146 162 Other 64 79 $ 863 $ 920 ____________ (1) Obligations related to insurance claims are expected to be satisfied, on average, over the next three years . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges In May 2017, we began hedging foreign exchange-based cash flow variability in certain of our foreign currency denominated management and franchise fees using forward contracts (the "Fee Forward Contracts"). We elected to designate these Fee Forward Contracts as cash flow hedges for accounting purposes. As of December 31, 2018 , the Fee Forward Contracts had an aggregate notional amount of $98 million and maturities of 24 months or less. In March 2017, we entered into two interest rate swap agreements with notional amounts of $1.6 billion and $750 million to swap one-month LIBOR on the Term Loans to fixed rates of 1.98 percent and 2.02 percent, respectively, through March 2022 . In May 2018, we settled the interest rate swap with a notional amount of $750 million and received $18 million from the counterparty. Concurrently, we entered into an interest rate swap agreement with a notional amount of $1.6 billion , which swaps one-month LIBOR on the Term Loans to a fixed rate of 3.03 percent, for a term from March 2022 to March 2023 . We elected to designate these interest rate swaps as cash flow hedges for accounting purposes. Non-designated Hedges As of December 31, 2018 , we held short-term forward contracts with an aggregate notional amount of $412 million to offset exposure to fluctuations in certain of our foreign currency denominated cash balances. We elected not to designate these forwar d contracts as hedging instruments. Depending on the fair value of each contract, we classify it as an asset or liability. In 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 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 in 2017. Fair Value of Derivative Instruments We measure our derivative instruments at fair value, which is estimated using a discounted cash flow analysis, and we consider the inputs used to measure the fair value as Level 2 within the fair value hierarchy. The discounted cash flow analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves and spot and forward rates, as applicable, as well as option volatility. The fair values of our derivative instruments in our consolidated balance sheets were as follows: December 31, Balance Sheet Classification 2018 2017 (in millions) Cash Flow Hedges: Interest rate swaps Other non-current assets $ 16 $ 11 Forward contracts Other current assets 1 — Forward contracts Accounts payable, accrued expenses and other — 1 Non-designated Hedges: Forward contracts Other current assets 1 4 Forward contracts Accounts payable, accrued expenses and other 2 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: Year Ended December 31, Classification of Gain (Loss) Recognized 2018 2017 2016 (in millions) Cash Flow Hedges (1)(2) : Interest rate swaps Other comprehensive income (loss) $ 22 $ (5 ) $ (15 ) Interest rate swaps Interest expense (1 ) (16 ) (8 ) Forward contracts Other comprehensive income (loss) 2 (1 ) N/A Non-designated Hedges: Interest rate swaps (3) Other non-operating income, net N/A 2 4 Interest rate swaps (3) Interest expense (5 ) (10 ) (4 ) Forward contracts Gain (loss) on foreign currency transactions (9 ) 12 7 ____________ (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, 2018 , 2017 and 2016 . (2) The earnings effect of the Fee Forward Contracts on fee revenues for the years ended December 31, 2018 and 2017 was less than $1 million. (3) These amounts relate to the interest rate swaps that we have dedesignated and settled. The amounts recognized in interest expense were reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below; see Note 11 : " Derivative Instruments and Hedging Activities " for the fair value information of our derivatives and Note 15 : " Employee Benefit Plans " for fair value information of our pension assets: December 31, 2018 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 87 $ — $ 87 $ — Restricted cash equivalents 18 — 18 — Liabilities: Long-term debt (1) 7,040 3,809 — 3,039 December 31, 2017 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 284 $ — $ 284 $ — Restricted cash equivalents 12 — 12 — Liabilities: Long-term debt (1) 6,348 2,575 — 3,954 ____________ (1) The carrying values include 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 these tables are estimated to be equal to their carrying values as of December 31, 2018 and 2017 . 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases We lease hotel properties, land, corporate office space and equipment used at hotels and corporate offices. As of December 31, 2018 and 2017 , we leased 58 hotels and 59 hotels, respectively, under operating leases, and four hotels under capital leases, two of which were the liabilities of consolidated VIEs and were non-recourse to us. Our hotel leases expire at various dates from 2019 through 2067 , with varying renewal and termination options, and the majority expire before 2029 . Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, or contingent rentals, which are generally based on a percentage of the underlying asset's revenues or are dependent on changes in an index; or (iii) lease payments equal to the greater of the fixed or variable rent. In addition, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel during the term of the lease. For operating leases, lease expense relating to fixed or minimum payments is recognized on a straight-line basis over the lease term and lease expense relating to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses and general and administrative expenses in our consolidated statements of operations. For capital leases, the amortization of the asset is recognized in depreciation and amortization expense in our consolidated statements of operations and is recognized over the shorter of the lease term or useful life of the underlying asset. The interest on the capital lease obligation is recognized in interest expense in our consolidated statements of operations. The future minimum rent payments as of December 31, 2018 , were as follows: Operating Capital Year (in millions) 2019 $ 206 $ 30 2020 191 30 2021 166 30 2022 134 29 2023 119 29 Thereafter 865 164 Total minimum lease payments $ 1,681 312 Less: amount representing interest (87 ) Present value of minimum lease payments $ 225 Lease expense for operating leases was as follows: Year Ended December 31, 2018 2017 2016 (in millions) Fixed $ 225 $ 183 $ 224 Contingent 142 101 98 $ 367 $ 284 $ 322 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision Our tax provision includes federal, state and foreign income taxes payable. The domestic and foreign components of income from continuing operations before income taxes were as follows: Year Ended December 31, 2018 2017 2016 (in millions) U.S. income before tax $ 881 $ 632 $ 906 Foreign income (loss) before tax 197 121 (366 ) Income from continuing operations before income taxes $ 1,078 $ 753 $ 540 The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2018 2017 2016 (in millions) Current: Federal $ 210 $ 239 $ 441 State 53 59 143 Foreign 60 95 70 Total current 323 393 654 Deferred: Federal (52 ) (667 ) (123 ) State (14 ) (35 ) 45 Foreign 52 (27 ) (19 ) Total deferred (14 ) (729 ) (97 ) Total provision (benefit) for income taxes $ 309 $ (336 ) $ 557 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, 2018 2017 2016 (in millions) Statutory U.S. federal income tax provision $ 226 $ 264 $ 189 State income taxes, net of U.S. federal tax benefit 37 19 22 Impact of foreign operations 26 4 34 Effects of the TCJ Act 13 (600 ) — Corporate restructuring 9 — 477 Change in deferred tax asset valuation allowance (6 ) (48 ) (20 ) Provision (benefit) for uncertain tax positions 16 38 (139 ) Other, net (12 ) (13 ) (6 ) Provision (benefit) for income taxes $ 309 $ (336 ) $ 557 Restructuring During the year ended December 31, 2018, our controlled foreign corporations ("CFC") distributed the stock of certain subsidiaries (the "Distributions"). Subsequent to the Distributions, the distributed subsidiaries will now be includible in our U.S. federal and state income tax filings. As a result of the Distributions, we incurred deferred income tax expense of $9 million , including: (i) recording U.S. deferred tax liabilities related to the distributed subsidiaries of $12 million and (ii) remeasuring our existing deferred tax assets and liabilities and other tax liabilities at the effective tax rates at which they will reverse in future periods, resulting in a reduction of liabilities of $3 million . During the year ended 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 IP used in the international business, from U.S. subsidiaries to foreign subsidiaries, and became effective in December 2016. The transfer of the IP 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 IP transferred to foreign subsidiaries. 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 structuring activities, our estimated deferred effective tax rate 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 $477 million in the period. Tax Cuts and Jobs Act of 2017 We recognized a provisional benefit as of December 31, 2017 of $600 million , of which $569 million was the result of the remeasurement of U.S. deferred tax assets and liabilities and other tax liabilities. As of December 31, 2018 , we made adjustments to the provisional amounts recorded as of December 31, 2017 , as described below. • Deferred tax assets and liabilities and other tax liabilities. We remeasured deferred tax assets and liabilities and other tax liabilities based on the rates at which they are expected to reverse in the future, which is generally 21 percent . The provisional amounts recorded as of December 31, 2017 related to the remeasurement of our deferred tax assets and liabilities, uncertain tax position reserves and other tax liabilities were income tax benefits of $452 million , $33 million and $84 million , respectively. However, this remeasurement was based on estimates as of the enactment date of the TCJ Act and our existing analysis of the numerous complex tax law changes in the TCJ Act. Upon completing our analysis of the TCJ Act and associated regulations, we adjusted our provisional amount by recording an additional tax benefit of $10 million during the year ended December 31, 2018, which was included in income tax expense in our consolidated statements of operations. • Foreign taxation changes. A one-time transition tax is applied to foreign earnings previously not subjected to U.S. tax. The one-time transition tax is based on our total post-1986 earnings and profits ("E&P") that were previously deferred from U.S. income taxes, but is assessed at a lower tax rate than the federal corporate tax rate of 35 percent . We recorded a provisional amount for our one-time transition tax liability for our foreign subsidiaries based on estimates, as of the enactment date of the TCJ Act, for our controlled foreign subsidiaries and estimates of the total post-1986 E&P for noncontrolled foreign subsidiaries. We previously recorded a federal deferred tax liability for our deferred earnings at the statutory 35 percent rate, and the application of the transition tax results in these earnings being subjected to a lower rate, resulting in a provisional income tax benefit as of December 31, 2017 of $15 million . As a result of additional guidance issued by the U.S. Treasury Department, we refined our calculations and recorded an additional tax benefit of $2 million during the year ended December 31, 2018. Additionally, we had not recorded certain deferred tax assets, primarily related to E&P deficits, for some foreign subsidiaries based upon an expectation that no tax benefit from such assets would be realized within the foreseeable future. The recognition of tax benefits from the deferred tax assets previously not recorded resulted in an income tax benefit of $16 million during the year ended December 31, 2017. • Outside basis differences . With the changes made to the U.S. taxation of foreign entities, including the change to a territorial system of taxation, the introduction of a dividend participation exemption and the changes to the current taxation of GILTI, we determined our current method of calculating CFC outside basis should be revised to incorporate the TCJ Act changes. As a result, we recorded additional deferred tax liabilities of $31 million during the year ended December 31, 2018 within income tax expense (benefit) in our consolidated statement of operations. Our accounting for the effects of the TCJ Act was complete as of December 31, 2018. Deferred Income Taxes Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The tax effects of the temporary differences and carryforwards that give rise to our net deferred taxes were as follows: December 31, 2018 2017 (in millions) Deferred tax assets: Net operating loss carryforwards $ 389 $ 395 Compensation 118 113 Reserves 18 39 Capital lease obligations 75 78 Deferred income 258 210 Other 42 52 Total gross deferred tax assets 900 887 Less: valuation allowance (399 ) (408 ) Deferred tax assets 501 479 Deferred tax liabilities: Brands (1,123 ) (1,122 ) Amortizing intangible assets (157 ) (177 ) Investment in foreign subsidiaries (29 ) — Deferred tax liabilities (1,309 ) (1,299 ) Net deferred taxes $ (808 ) $ (820 ) As of December 31, 2018 , we had foreign net operating loss carryforwards of $1.5 billion , which resulted in deferred tax assets of $389 million for foreign jurisdictions. Approximately $11 million of our deferred tax assets as of December 31, 2018 related to net operating loss carryforwards that will expire between 2019 and 2038 with less than $1 million of that amount expiring in 2019. Approximately $378 million of our deferred tax assets as of December 31, 2018 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 $379 million as of December 31, 2018 on the deferred tax assets relating to the foreign net operating loss carryforwards. Our total valuation allowance relating to these net operating loss carryforwards and other deferred tax assets decreased $9 million during the year ended December 31, 2018 . Based on our consideration of all available positive and negative evidence, we determined that it was more likely than not that we would be able to realize the benefit of certain foreign deferred tax assets and released valuation allowances of $6 million against our foreign deferred tax assets. Additionally, other factors that did not have any impact on income tax expense, including revaluations of certain foreign deferred tax assets and their associated valuation allowances, resulted in a $3 million reduction of total valuation allowances. Tax Uncertainties 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 amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2018 2017 2016 (in millions) Balance at beginning of year $ 283 $ 174 $ 315 Additions for tax positions related to prior years 37 3 77 Additions for tax positions related to the current year 16 126 9 Reductions for tax positions related to prior years (15 ) (10 ) (204 ) Settlements — (9 ) (21 ) Lapse of statute of limitations (3 ) (2 ) (2 ) Currency translation adjustment — 1 — Balance at end of year $ 318 $ 283 $ 174 The changes to our unrecognized tax benefits during the year ended December 31, 2018 were primarily related to uncertainty regarding the calculations of tax deductions claimed in recently filed tax returns, as well as the addition of current year reserves related to our Hilton Honors guest loyalty program. The changes to our unrecognized tax benefits during the year ended December 31, 2017 were primarily related to uncertainty regarding the valuation of certain tax assets in the U.S. and the United Kingdom. The changes to our unrecognized tax benefits during the year ended December 31, 2016 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 (benefit) in our consolidated statements of operations. As of December 31, 2018 and 2017, we had accrued approximately $40 million and $33 million , respectively, for interest and penalties related to our unrecognized tax benefits in our consolidated balance sheets. Included in the balances of unrecognized tax benefits as of December 31, 2018 and 2017 were $310 million and $285 million , respectively, associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate. In April 2014, we received 30-day Letters from the Internal Revenue Service ("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 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. In January 2016, we received a 30-day Letter from the IRS and the RAR for the December 2007 through 2010 tax years, which included proposed adjustments that reflect the carryover effect of the three protested issues from 2006 through October 2007. These proposed adjustments are also being protested in appeals, and formal appeals protests have been submitted. In April 2016, we requested a Technical Advice Memorandum ("TAM") from the IRS with respect to the treatment of the foreign currency gains and losses on loans issued by our Luxembourg subsidiary. We received a taxpayer favorable TAM in October 2018, and this issue is no longer being pursued by IRS Appeals for any of the open tax years. In September 2018, we received a 30-day Letter from the IRS and the RAR for the 2011 through 2013 tax years, which reflects proposed adjustments for the carryover effect of the two remaining protested issues from 2006 through October 2007. The adjustments for tax years 2011 through 2013 will also be protested in appeals, and formal protests have been submitted. After receipt of the TAM relating to the Luxembourg subsidiary, in total, the two remaining proposed adjustments sought by the IRS for the tax years with open audits would result in additional U.S. federal tax owed of approximately $817 million , excluding interest and penalties and potential state income taxes. The portion of this amount related to Hilton Honors 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 $52 million of unrecognized tax benefits related to these issues. We file income tax returns, including returns for our subsidiaries, with federal, state, local and foreign tax jurisdictions. We are under regular and recurring audit by the IRS and other taxing authorities on open tax positions. The timing of the resolution of tax audits is highly uncertain, as are the amounts, if any, that may ultimately be paid upon such resolution. Changes may result from the conclusion of ongoing audits, appeals or litigation in federal, state, local and foreign tax jurisdictions or from the resolution of various proceedings between the U.S. and foreign tax authorities. We are no longer subject to U.S. federal income tax examination for years through 2004. As of December 31, 2018 , we remain subject to federal examinations from 2005 through 2017, state examinations from 2005 through 2017 and foreign examinations of our income tax returns for the years 1996 through 2017. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor multiple domestic and international employee benefit plans. Benefits are based upon years of service and compensation. We have both a noncontributory retirement plan and multiple employee benefit plans (the "pension plans"). The noncontributory retirement plan is in the U.S. (the "Domestic Plan"), and it covers certain employees not earning union benefits. This plan was frozen for participant benefit accruals in 1996; therefore, the projected benefit obligation is equal to the accumulated benefit obligation. The plan assets will be used to pay benefits due to employees for service through December 31, 1996. Since employees have not accrued additional benefits from that time, we do not utilize salary or pension inflation assumptions in calculating our benefit obligation for the Domestic Plan. The annual measurement date for the Domestic Plan is December 31. The multiple employee benefit plans 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 income (loss), net of taxes. The following table presents the projected benefit obligation, fair value of plan assets, funded status and accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2018 2017 2018 2017 2018 2017 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 384 $ 381 $ 443 $ 404 $ 86 $ 81 Service cost — — 3 2 2 1 Interest cost 12 12 9 10 2 1 Prior service cost (1) — — 4 — — — Actuarial loss (gain) (14 ) 16 (39 ) 4 — 3 Settlements and curtailments (2 ) (1 ) — — (1 ) — Effect of foreign exchange rates — — (25 ) 40 (1 ) 4 Benefits paid (23 ) (24 ) (20 ) (17 ) (5 ) (4 ) Benefit obligation at end of year $ 357 $ 384 $ 375 $ 443 $ 83 $ 86 Change in Plan Assets: Fair value of plan assets at beginning of year $ 306 $ 267 $ 386 $ 336 $ 65 $ 58 Actual return on plan assets, net of expenses (23 ) 43 (14 ) 24 (1 ) 6 Employer contributions 16 21 10 9 4 4 Settlements (2 ) (1 ) — — — — Effect of foreign exchange rates — — (22 ) 34 — 1 Benefits paid (23 ) (24 ) (20 ) (17 ) (5 ) (4 ) Fair value of plan assets at end of year 274 306 340 386 63 65 Funded status at end of year (underfunded) (83 ) (78 ) (35 ) (57 ) (20 ) (21 ) Accumulated benefit obligation $ 357 $ 384 $ 375 $ 443 $ 83 $ 86 ____________ (1) Relates to U.K. pension equalization requirements. Amounts recognized in the consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2018 2017 2018 2017 2018 2017 (in millions) Other non-current assets $ — $ — $ — $ — $ 7 $ 9 Other liabilities (83 ) (78 ) (35 ) (57 ) (27 ) (30 ) Net amount recognized $ (83 ) $ (78 ) $ (35 ) $ (57 ) $ (20 ) $ (21 ) Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan International Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 (in millions) Net actuarial loss (gain) $ 22 $ (15 ) $ — $ (14 ) $ 13 $ 41 $ 3 $ — $ 3 Prior service cost (credit) (4 ) (3 ) (3 ) 4 — — — — — Amortization of net loss (3 ) (3 ) (3 ) (4 ) (4 ) (2 ) (1 ) — (1 ) Net amount recognized $ 15 $ (21 ) $ (6 ) $ (14 ) $ 9 $ 39 $ 2 $ — $ 2 The estimated unrecognized prior service cost and net loss that will be amortized into net periodic pension cost (credit) during the year ended December 31, 2019 are as follows: Domestic Plan U.K. Plan International Plans (in millions) Unrecognized prior service cost (1) $ 3 $ — $ — Unrecognized net loss (1) 3 4 — Amount unrecognized $ 6 $ 4 $ — ____________ (1) Unrecognized prior service cost amounts for the U.K. Plan and International Plans are less than $1 million and unrecognized net loss amounts for the International Plans are less than $1 million. The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 (in millions) Service cost $ 6 $ 8 $ 8 $ 3 $ 2 $ 2 $ 2 $ 2 $ 3 Interest cost 12 12 13 9 10 12 2 2 2 Expected return on plan assets (19 ) (19 ) (19 ) (21 ) (19 ) (22 ) (3 ) (3 ) (3 ) Amortization of prior service cost 3 3 4 — — — — — — Amortization of net loss 3 3 3 4 4 2 1 — — Net periodic pension cost (credit) $ 5 $ 7 $ 9 $ (5 ) $ (3 ) $ (6 ) $ 2 $ 1 $ 2 The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2018 2017 2018 2017 2018 2017 Discount rate 4.3 % 3.6 % 3.1 % 2.6 % 3.3 % 2.4 % Salary inflation N/A N/A 1.8 1.8 2.2 2.2 Pension inflation N/A N/A 3.0 3.0 1.8 1.8 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 3.6 % 4.0 % 4.2 % 2.6 % 2.8 % 3.9 % 2.9 % 3.0 % 3.5 % Expected return on plan assets 7.0 7.0 7.3 5.5 5.5 6.5 4.6 4.3 5.4 Salary inflation N/A N/A N/A 1.8 1.9 1.7 2.2 2.1 2.1 Pension inflation N/A N/A N/A 3.0 3.1 2.8 1.8 1.7 1.6 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, 2018 and 2017 , was 80 percent in funds that invest in equity securities and 20 percent in funds that invest in debt securities. The target asset allocation for the U.K. Plan and the International Plans, as a percentage of total plan assets, as of December 31, 2018 and 2017 , was 75 percent in funds that invest in equity and debt securities and 25 percent in bond funds. The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category: December 31, 2018 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 34 $ 11 Equity funds — 33 2 Bond funds — 39 — Alternative investments — 140 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 44 — Common collective trusts 274 — 40 Other — 50 — $ 274 $ 340 $ 63 December 31, 2017 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ — $ 11 Level 2 Equity funds — — 6 Bond funds — — 5 Net asset value (1) Common collective trusts 306 386 43 $ 306 $ 386 $ 65 ____________ (1) Certain investments are measured at net asset value per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. We expect to contribute approximately $8 million , $9 million and $4 million to the Domestic Plan, the U.K. Plan and the International Plans, respectively, in 2019 . As of December 31, 2018 , 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) 2019 $ 35 $ 19 $ 11 2020 27 19 6 2021 27 20 5 2022 26 20 5 2023 26 20 5 2024-2028 121 107 24 $ 262 $ 205 $ 56 In January 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, 2018 and 2017 , the multiple employer plan had combined plan assets of $297 million and $331 million , respectively, and a projected benefit obligation of $380 million and $409 million , respectively. We have various employee defined contribution investment plans whereby we contribute matching percentages of employee contributions. The aggregate expense under these plans totaled $16 million , $15 million and $17 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized share-based compensation expense of $127 million , $121 million and $81 million during the years ended December 31, 2018 , 2017 and 2016 , respective ly, which included amounts reimbursed by hotel owners. The total tax benefit recognized related to share-based compensation expense was $42 million , $49 million and $31 million for the years ended December 31, 2018 , 2017 and 2016 , respectively . As of December 31, 2018 and 2017 , we ac cr ued $15 million in accounts payable, accrued expenses and other in our consolidated balance sheets for certain awards settled in cash. As of December 31, 2018 , unrecognized compensation costs for unvested awards was approximately $121 million , which is expected to be recognized over a weighted-average period of 1.7 years on a straight-line basis. As of December 31, 2018 , there were 16.1 million shares of common stock available for future issuance under the Hilton 2017 Omnibus Incentive Plan, plus any shares subject to awards outstanding under our 2013 Omnibus Incentive Plan, which will become available for issuance under our 2017 Omnibus Incentive Plan as a result of such outstanding awards expiring or terminating or being canceled or forfeited. RSUs The following table provides information about our RSU grants for the last three fiscal years: Year Ended December 31, 2018 2017 2016 (in millions, except per share data) Number of shares granted 0.9 1.5 1.2 Weighted average grant date fair value per share $ 79.31 $ 58.80 $ 59.73 Aggregate intrinsic value of shares vested $ 123 $ 78 $ 40 The following table summarizes the activity of our RSUs during the year ended December 31, 2018 : Number of Shares Weighted Average Grant Date Fair Value per Share (in millions) Outstanding as of December 31, 2017 2.8 $ 51.44 Granted 0.9 79.31 Vested (1.5 ) 49.56 Forfeited (0.2 ) 56.09 Outstanding as of December 31, 2018 2.0 64.88 Options The following table provides information about our option grants for the last three fiscal years: Year Ended December 31, 2018 2017 2016 (in millions, except per share data) Number of options granted 0.6 0.7 0.5 Weighted average exercise price per share $ 79.36 $ 58.40 $ 58.83 Weighted average grant date fair value per share $ 23.72 $ 13.96 $ 16.41 The weighted average grant date fair value per share of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2018 2017 2016 Expected volatility (1) 27.91 % 24.00 % 32.00 % Dividend yield (2) 0.74 % 0.92% - 1.03% 1.43 % Risk-free rate (3) 2.73 % 1.93% - 2.03% 1.36 % Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price. (2) For the year ended December 31, 2018, estimated based on the quarterly dividend and the three-month average stock price at the grant date; for the years ended December 31, 2017 and 2016, estimated based on the expected annualized dividend payment at the grant date. (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, 2018 : Number of Shares Weighted Average Exercise Price per Share (in millions) Outstanding as of December 31, 2017 2.0 $ 51.24 Granted 0.6 79.36 Exercised (0.2 ) 50.15 Outstanding as of December 31, 2018 (1) 2.4 58.50 Exercisable as of December 31, 2018 (2) 1.1 50.07 ____________ (1) The aggregate intrinsic value was $36 million and the weighted average remaining contractual term was 8 years. (2) The aggregate intrinsic value was $25 million and the weighted average remaining contractual term was 7 years. Performance Shares During the years ended December 31, 2018 and 2017, we issued performance shares with 50 percent of the shares subject to achievement based on the Company's EBITDA CAGR and the other 50 percent of the shares subject to achievement based on the Company's FCF CAGR. The performance shares are settled at the end of the three-year performance period. In 2016, we modified the performance shares that were outstanding as of December 31, 2016 , which were based on a measure of the Company’s total shareholder return relative to the total shareholder returns of members of a peer company group and the Company’s EBITDA CAGR, such that, upon completion of the spin-offs, they were converted to RSUs. We recognized $2.3 million , $3.3 million , and $0.3 million of incremental expense related to the modification of these awards during the years ended December 31, 2018 , 2017 and 2016, respectively. We determined that the performance conditions for performance shares issued in 2018 and 2017 are probable of achievement and, as of December 31, 2018 , we recognized compensation expense related to these awards based on the following anticipated achievement percentages: EBITDA CAGR FCF CAGR 2017 performance shares 200 % 200 % 2018 performance shares 150 % 150 % The following table provides information about our performance share grants for the last three fiscal years: Year Ended December 31, 2018 2017 2016 (in millions, except per share data) EBITDA CAGR: Number of shares granted 0.2 0.2 0.3 Weighted average grant date fair value per share $ 79.36 $ 58.40 $ 58.83 Aggregate intrinsic value of shares vested $ — $ — $ 12 FCF CAGR: Number of shares granted 0.2 0.2 N/A Weighted average grant date fair value per share $ 79.36 $ 58.40 N/A Aggregate intrinsic value of shares vested $ — $ — N/A Relative Shareholder Return: Number of shares granted N/A N/A 0.3 Weighted average grant date fair value per share N/A N/A $ 62.43 Aggregate intrinsic value of shares vested N/A N/A $ 16 The following table summarizes the activity of our performance shares during the year ended December 31, 2018 : EBITDA CAGR FCF CAGR Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share (in millions) (in millions) Outstanding as of December 31, 2017 0.2 $ 58.41 0.2 $ 58.41 Granted 0.2 79.36 0.2 79.36 Outstanding as of December 31, 2018 0.4 69.53 0.4 69.53 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings (Loss) Per Share The following table presents the calculation of basic and diluted earnings (loss) per share ("EPS"). Year Ended December 31, 2018 2017 2016 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ 764 $ 1,084 $ (27 ) Denominator: Weighted average shares outstanding 302 324 329 Basic EPS $ 2.53 $ 3.34 $ (0.08 ) Diluted EPS: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ 764 $ 1,084 $ (27 ) Denominator: Weighted average shares outstanding 305 327 329 Diluted EPS $ 2.50 $ 3.32 $ (0.08 ) Approximately 1 million , 1 million and 2 million share-based compensation awards were excluded from the weighted average shares outstanding used in the computation of diluted EPS for the years ended December 31, 2018 , 2017 and 2016 , respectively, 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, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2015 $ (580 ) $ (194 ) $ (10 ) $ (784 ) Other comprehensive loss before reclassifications (157 ) (63 ) (9 ) (229 ) Amounts reclassified from accumulated other comprehensive loss (1 ) 6 7 12 Net current period other comprehensive loss (158 ) (57 ) (2 ) (217 ) Balance as of December 31, 2016 (738 ) (251 ) (12 ) (1,001 ) Other comprehensive income (loss) before reclassifications 161 15 (4 ) 172 Amounts reclassified from accumulated other comprehensive loss 1 7 17 25 Net current period other comprehensive income 162 22 13 197 Spin-offs of Park and HGV 63 — — 63 Balance as of December 31, 2017 (513 ) (229 ) 1 (741 ) Other comprehensive income (loss) before reclassifications (70 ) (18 ) 17 (71 ) Amounts reclassified from accumulated other comprehensive loss — 9 5 14 Net current period other comprehensive income (loss) (70 ) (9 ) 22 (57 ) Cumulative effect of the adoption of ASU 2018-02 38 (22 ) — 16 Balance as of December 31, 2018 $ (545 ) $ (260 ) $ 23 $ (782 ) ____________ (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 statements of operations): Year Ended December 31, 2018 2017 2016 (in millions) Currency translation adjustment: Sale or liquidation of investment in foreign entity (1) $ — $ (2 ) $ — Gains on net investment hedges (1) — 1 1 Total currency translation adjustment reclassifications for the period, net of taxes — (1 ) 1 Pension liability adjustment: Amortization of prior service cost (2) (3 ) (3 ) (4 ) Amortization of net loss (2) (8 ) (7 ) (5 ) Tax benefit (3) 2 3 3 Total pension liability adjustment reclassifications for the period, net of taxes (9 ) (7 ) (6 ) Cash flow hedge adjustment: Dedesignated interest rate swaps (4) (6 ) (26 ) (12 ) Tax benefit (3) 1 9 5 Total cash flow hedge adjustment reclassifications for the period, net of taxes (5 ) (17 ) (7 ) Total reclassifications for the period, net of taxes $ (14 ) $ (25 ) $ (12 ) ____________ (1) Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. The related tax benefits for the years ended December 31, 2017 and 2016 were less than $1 million and were reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (2) Reclassified out of accumulated other comprehensive loss to other non-operating income, net in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). See Note 15 : " Employee Benefit Plans " for additional information. (3) Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (4) Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statements of operations. See Note 11 : " Derivative Instruments and Hedging Activities " for additional information. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business segments | Business Segments We are a hospitality company with operations organized in two distinct operating segments: (i) management and franchise and (ii) ownership. These segments are managed and reported separately because of their distinct economic characteristics. The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels operated or managed by someone other than us. As of December 31, 2018 , this segment included 689 managed hotels and 4,874 franchised hotels consisting of 882,873 total rooms. This segment also earns licensing fees from HGV and co-brand credit card arrangements, as well as fees for managing properties in our ownership segment. As of December 31, 2018 , the ownership segment included 71 properties totaling 21,720 rooms, comprising 62 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. The performance of our operating segments is evaluated primarily on operating income, without allocating other revenues and expenses or general and administrative expenses. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2018 2017 2016 (in millions) Franchise and licensing fees $ 1,537 $ 1,326 $ 1,095 Base and other management fees (1) 385 379 284 Incentive management fees 235 222 142 Management and franchise 2,157 1,927 1,521 Ownership 1,484 1,432 1,434 Segment revenues 3,641 3,359 2,955 Amortization of contract acquisition costs (27 ) (17 ) (16 ) Other revenues 98 105 82 Direct reimbursements from managed and franchised properties (2) 2,881 2,572 1,644 Indirect reimbursements from managed and franchised properties (2) 2,357 2,155 1,953 Intersegment fees elimination (1) (44 ) (43 ) (42 ) Total revenues $ 8,906 $ 8,131 $ 6,576 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our consolidated statements of operations. The following table presents operating income for our reportable segments, reconciled to consolidated income from continuing operations before income taxes: Year Ended December 31, 2018 2017 2016 (in millions) Management and franchise (1) $ 2,157 $ 1,927 $ 1,521 Ownership (1) 108 120 113 Segment operating income 2,265 2,047 1,634 Amortization of contract acquisition costs (27 ) (17 ) (16 ) Other revenues, less other expenses 47 49 16 Net other expenses from managed and franchised properties (85 ) (172 ) (12 ) Depreciation and amortization (325 ) (336 ) (353 ) General and administrative (443 ) (439 ) (409 ) Gain on sales of assets, net — — 8 Operating income 1,432 1,132 868 Interest expense (371 ) (351 ) (334 ) Gain (loss) on foreign currency transactions (11 ) 3 (16 ) Loss on debt extinguishment — (60 ) — Other non-operating income, net 28 29 22 Income from continuing operations before income taxes $ 1,078 $ 753 $ 540 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. The following table presents total assets for our reportable segments, reconciled to consolidated amounts: December 31, 2018 2017 (in millions) Management and franchise $ 11,362 $ 11,505 Ownership 927 964 Corporate and other 1,706 1,759 $ 13,995 $ 14,228 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, 2018 2017 2016 (in millions) Ownership $ 42 $ 32 $ 45 Corporate and other 30 26 17 $ 72 $ 58 $ 62 Total revenues by country were as follows: Year Ended December 31, 2018 2017 2016 (in millions) U.S. $ 6,848 $ 6,046 $ 4,524 United Kingdom 545 544 942 All other 1,513 1,541 1,110 $ 8,906 $ 8,131 $ 6,576 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, 2018 , 2017 and 2016 . Property and equipment, net by country was as follows: December 31, 2018 2017 (in millions) U.S. $ 109 $ 105 Japan 106 94 United Kingdom 75 82 Germany 40 36 All other 37 36 $ 367 $ 353 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, 2018 and 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We provide performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees allow us to terminate the contract, rather than fund shortfalls, if specified operating performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of December 31, 2018 , we had five performance guarantees, with expirations ranging from 2019 to 2030 , and possible cash outlays totaling approximately $36 million . Our obligations under these guarantees in future periods are dependent on the operating performance level of the related hotel over the remaining term of the performance guarantee. We do not have any letters of credit pledged as collateral against these guarantees. As of December 31, 2018 and 2017 , we accrued liabilities of $12 million and $21 million , respectively, for our performance guarantees, which were related to one hotel and two hotels, respectively, of VIEs for which we were not the primary beneficiary. We may enter into new contracts containing performance guarantees in the future, which could increase our possible cash outlays. We have entered into agreements with owners of certain hotels that we operate or will operate under a management or franchise contract to finance capital expenditures at the hotels for approximately $29 million . As of December 31, 2018, we had not funded any of these commitments and expect to fund $19 million in 2019 and $10 million in 2020. We receive fees from managed and franchised properties to operate our marketing, sales and brand programs on behalf of hotel owners. As of December 31, 2018 and 2017 , we had collected an aggregate of $375 million and $402 million in excess of amounts expended, respectively, across all programs. We are involved in various claims and lawsuits arising in the ordinary course of business, some of which include claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of December 31, 2018 will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Equity Investments We hold equity investments in entities that own or lease properties that we manage. Amounts included in our consolidated balance sheets related to these management contracts as of December 31, 2018 and 2017 primarily included $19 million and $20 million , respectively, of management and franchise contracts, net. Amounts included in our consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 primarily included: (i) management and franchise fees of $10 million , $10 million and $12 million , respectively; (ii) other revenues from managed and franchised properties of $22 million , $22 million and $21 million , respectively; and (iii) other expenses from managed and franchised properties of $22 million , $22 million and $21 million , respectively. Blackstone Blackstone directly and indirectly owns or controls hotels that we manage or franchise and for which we receive fees in connection with the related management and franchise contracts. 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. Due to sales of the Company's common stock, Blackstone was no longer considered a related party of the Company as of October 1, 2017. Amounts included in our consolidated statements of operations related to these management and franchise contracts, for the period of time Blackstone was considered a related party, for the years ended December 31, 2017 and 2016 primarily included: (i) management and franchise fees of $24 million and $42 million , respectively; (ii) other revenues from managed and franchised properties of $113 million and $144 million , respectively; and (iii) other expenses from managed and franchised properties of $113 million and $144 million , respectively. Additionally, our consolidated statements of cash flows included $11 million of contract acquisition costs related to these management and franchise contracts for the year ended December 31, 2017. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Interest paid during the years ended December 31, 2018 , 2017 and 2016 , was $330 million , $314 million and $478 million , respectively. Income taxes, net of refunds, paid during the years ended December 31, 2018 , 2017 and 2016 were $288 million , $526 million and $677 million , respectively. The following non-cash investing and financing activities were excluded from the consolidated statements of cash flows: • In 2017, we had non-cash financing activities of $25 million in connection with the spin-offs. • In 2016, we transferred $116 million of Park's property and equipment to HGV's timeshare inventory for conversion into timeshare units. |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |
Condensed Consolidating Guarantor Financial Information | Condensed Consolidating Guarantor Financial Information In April 2018, Hilton Domestic Operating Company Inc. ("HOC"), which is 100 percent owned by Hilton Worldwide Finance LLC, issued the 2026 Senior Notes. In March 2017, 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 2025 Senior Notes and 2027 Senior Notes. In September 2016, HOC assumed the 2024 Senior Notes that were issued in August 2016 by escrow issuers. In October 2013, the HWF Issuers issued the 2021 Senior Notes, which were redeemed in full in March 2017. See Note 9 : " Debt " for additional information. The HWF Issuers are guarantors of the 2026 Senior Notes and the 2024 Senior Notes. HOC is a guarantor of the 2025 Senior Notes and the 2027 Senior Notes and was a guarantor of the 2021 Senior Notes prior to their redemption. The 2024 Senior Notes, 2025 Senior Notes, 2026 Senior Notes and 2027 Senior Notes are collectively referred to as the Senior Notes. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers. The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by HWP, the Parent and certain of the Parent's 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 our senior secured credit facility will guarantee the Senior Notes. As of December 31, 2018 , none of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guaranteed the Senior Notes (collectively, the "Non-Guarantors"). The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under our senior secured credit 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 tables present the condensed consolidating financial information as of December 31, 2018 and 2017 and for the years ended December 31, 2018 , 2017 and 2016 , for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 17 $ 383 $ — $ 403 Restricted cash and cash equivalents — — 34 15 32 — 81 Accounts receivable, net — — 10 735 405 — 1,150 Intercompany receivables — — — — 40 (40 ) — Prepaid expenses — — 52 37 80 (9 ) 160 Income taxes receivable — — — 23 — (3 ) 20 Other — 1 1 13 154 — 169 Total current assets — 1 100 840 1,094 (52 ) 1,983 Intangibles and Other Assets: Investments in subsidiaries 557 5,131 7,930 557 — (14,175 ) — Goodwill — — — 3,824 1,336 — 5,160 Brands — — — 4,404 465 — 4,869 Management and franchise contracts, net — — — 556 316 — 872 Other intangible assets, net — — — 287 128 — 415 Property and equipment, net — — 27 65 275 — 367 Deferred income tax assets 4 — 94 — 90 (98 ) 90 Other — 23 33 22 161 — 239 Total intangibles and other assets 561 5,154 8,084 9,715 2,771 (14,273 ) 12,012 TOTAL ASSETS $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325 ) $ 13,995 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 10 $ 19 $ 229 $ 529 $ 743 $ — $ 1,530 Current portion of deferred revenues — — 106 239 14 (9 ) 350 Intercompany payables — — 40 — — (40 ) — Current maturities of long-term debt — — — — 16 — 16 Income taxes payable — — — — 22 (3 ) 19 Current portion of liability for guest loyalty program — — — 700 — — 700 Total current liabilities 10 19 375 1,468 795 (52 ) 2,615 Long-term debt — 4,573 2,467 — 226 — 7,266 Deferred revenues — — — 762 64 — 826 Deferred income tax liabilities — 6 — 962 28 (98 ) 898 Liability for guest loyalty program — — — 969 — — 969 Other — — 211 93 559 — 863 Total liabilities 10 4,598 3,053 4,254 1,672 (150 ) 13,437 Equity: Total Hilton stockholders' equity 551 557 5,131 6,301 2,186 (14,175 ) 551 Noncontrolling interests — — — — 7 — 7 Total equity 551 557 5,131 6,301 2,193 (14,175 ) 558 TOTAL LIABILITIES AND EQUITY $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325 ) $ 13,995 December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 2 $ 18 $ 550 $ — $ 570 Restricted cash and cash equivalents — — 61 10 29 — 100 Accounts receivable, net — — 18 712 275 — 1,005 Intercompany receivables — — — — 40 (40 ) — Prepaid expenses — — 25 24 84 (6 ) 127 Income taxes receivable — — — 60 — (24 ) 36 Other — — 1 13 155 — 169 Total current assets — — 107 837 1,133 (70 ) 2,007 Intangibles and Other Assets: Investments in subsidiaries 1,697 7,067 8,326 1,697 — (18,787 ) — Goodwill — — — 3,824 1,366 — 5,190 Brands — — — 4,405 485 — 4,890 Management and franchise contracts, net — — 2 645 306 — 953 Other intangible assets, net — — 1 283 149 — 433 Property and equipment, net — — 20 67 266 — 353 Deferred income tax assets 6 — 104 — 127 (126 ) 111 Other — 20 32 67 172 — 291 Total intangibles and other assets 1,703 7,087 8,485 10,988 2,871 (18,913 ) 12,221 TOTAL ASSETS $ 1,703 $ 7,087 $ 8,592 $ 11,825 $ 4,004 $ (18,983 ) $ 14,228 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 15 $ 20 $ 184 $ 576 $ 624 $ (3 ) $ 1,416 Current portion of deferred revenues — — 90 266 13 (3 ) 366 Intercompany payables — — 40 — — (40 ) — Current maturities of long-term debt — 32 — — 14 — 46 Income taxes payable — — — — 36 (24 ) 12 Current portion of liability for guest loyalty program — — — 622 — — 622 Total current liabilities 15 52 314 1,464 687 (70 ) 2,462 Long-term debt — 5,333 983 — 240 — 6,556 Deferred revenues — — — 770 59 — 829 Deferred income tax liabilities — 5 — 1,052 — (126 ) 931 Liability for guest loyalty program — — — 839 — — 839 Other — — 228 64 628 — 920 Total liabilities 15 5,390 1,525 4,189 1,614 (196 ) 12,537 Equity: Total Hilton stockholders' equity 1,688 1,697 7,067 7,636 2,387 (18,787 ) 1,688 Noncontrolling interests — — — — 3 — 3 Total equity 1,688 1,697 7,067 7,636 2,390 (18,787 ) 1,691 TOTAL LIABILITIES AND EQUITY $ 1,703 $ 7,087 $ 8,592 $ 11,825 $ 4,004 $ (18,983 ) $ 14,228 Year Ended December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 227 $ 1,182 $ 139 $ (18 ) $ 1,530 Base and other management fees — — 1 205 115 — 321 Incentive management fees — — — 78 157 — 235 Owned and leased hotels — — — — 1,484 — 1,484 Other revenues — — 6 81 11 — 98 — — 234 1,546 1,906 (18 ) 3,668 Other revenues from managed and franchised properties — — 245 4,376 617 — 5,238 Total revenues — — 479 5,922 2,523 (18 ) 8,906 Expenses Owned and leased hotels — — — — 1,332 — 1,332 Depreciation and amortization — — 6 237 82 — 325 General and administrative — — 323 — 130 (10 ) 443 Other expenses — — 7 22 30 (8 ) 51 — — 336 259 1,574 (18 ) 2,151 Other expenses from managed and franchised properties — — 236 4,466 621 — 5,323 Total expenses — — 572 4,725 2,195 (18 ) 7,474 Operating income (loss) — — (93 ) 1,197 328 — 1,432 Interest expense — (227 ) (106 ) — (38 ) — (371 ) Gain (loss) on foreign currency transactions — — 4 84 (99 ) — (11 ) Other non-operating income (loss), net — (9 ) 3 16 18 — 28 Income (loss) before income taxes and equity in earnings from subsidiaries — (236 ) (192 ) 1,297 209 — 1,078 Income tax benefit (expense) — 57 39 (309 ) (96 ) — (309 ) Income (loss) before equity in earnings from subsidiaries — (179 ) (153 ) 988 113 — 769 Equity in earnings from subsidiaries 764 943 1,096 764 — (3,567 ) — Net income 764 764 943 1,752 113 (3,567 ) 769 Net income attributable to noncontrolling interests — — — — (5 ) — (5 ) Net income attributable to Hilton stockholders $ 764 $ 764 $ 943 $ 1,752 $ 108 $ (3,567 ) $ 764 Comprehensive income $ 707 $ 784 $ 932 $ 1,751 $ 48 $ (3,510 ) $ 712 Comprehensive income attributable to noncontrolling interests — — — — (5 ) — (5 ) Comprehensive income attributable to Hilton stockholders $ 707 $ 784 $ 932 $ 1,751 $ 43 $ (3,510 ) $ 707 Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 143 $ 1,077 $ 118 $ (17 ) $ 1,321 Base and other management fees — — 1 195 128 — 324 Incentive management fees — — — 76 146 — 222 Owned and leased hotels — — — — 1,432 — 1,432 Other revenues — — 31 70 11 (7 ) 105 — — 175 1,418 1,835 (24 ) 3,404 Other revenues from managed and franchised properties — — 159 3,986 582 — 4,727 Total revenues — — 334 5,404 2,417 (24 ) 8,131 Expenses Owned and leased hotels — — — — 1,269 — 1,269 Depreciation and amortization — — 5 242 89 — 336 General and administrative — — 327 — 118 (6 ) 439 Other expenses — — 17 29 27 (17 ) 56 — — 349 271 1,503 (23 ) 2,100 Other expenses from managed and franchised properties — — 147 4,147 605 — 4,899 Total expenses — — 496 4,418 2,108 (23 ) 6,999 Gain (loss) on sales of assets, net — — — (1 ) 1 — — Operating income (loss) — — (162 ) 985 310 (1 ) 1,132 Interest expense — (244 ) (61 ) — (47 ) 1 (351 ) Gain (loss) on foreign currency transactions — — 10 124 (131 ) — 3 Loss on debt extinguishment — (60 ) — — — — (60 ) Other non-operating income (loss), net — (3 ) 4 7 21 — 29 Income (loss) before income taxes and equity in earnings from subsidiaries — (307 ) (209 ) 1,116 153 — 753 Income tax benefit (expense) (3 ) 122 26 89 102 — 336 Income (loss) before equity in earnings from subsidiaries (3 ) (185 ) (183 ) 1,205 255 — 1,089 Equity in earnings from subsidiaries 1,087 1,272 1,455 1,087 — (4,901 ) — Net income 1,084 1,087 1,272 2,292 255 (4,901 ) 1,089 Net income attributable to noncontrolling interests — — — — (5 ) — (5 ) Net income attributable to Hilton stockholders $ 1,084 $ 1,087 $ 1,272 $ 2,292 $ 250 $ (4,901 ) $ 1,084 Comprehensive income $ 1,281 $ 1,101 $ 1,288 $ 2,295 $ 419 $ (5,098 ) $ 1,286 Comprehensive income attributable to noncontrolling interests — — — — (5 ) — (5 ) Comprehensive income attributable to Hilton stockholders $ 1,281 $ 1,101 $ 1,288 $ 2,295 $ 414 $ (5,098 ) $ 1,281 Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 21 $ 974 $ 106 $ (10 ) $ 1,091 Base and other management fees — — — 122 108 — 230 Incentive management fees — — — 16 126 — 142 Owned and leased hotels — — — — 1,434 — 1,434 Other revenues — — 10 61 11 — 82 — — 31 1,173 1,785 (10 ) 2,979 Other revenues from managed and franchised properties — — 32 3,053 512 — 3,597 Total revenues — — 63 4,226 2,297 (10 ) 6,576 Expenses Owned and leased hotels — — — — 1,279 — 1,279 Depreciation and amortization — — 1 266 86 — 353 General and administrative — — 90 203 116 — 409 Other expenses — — 1 31 44 (10 ) 66 — — 92 500 1,525 (10 ) 2,107 Other expenses from managed and franchised properties — — 32 3,083 494 — 3,609 Total expenses — — 124 3,583 2,019 (10 ) 5,716 Gain on sales of assets, net — — — — 8 — 8 Operating income (loss) — — (61 ) 643 286 — 868 Interest expense — (261 ) (14 ) (12 ) (47 ) — (334 ) Gain (loss) on foreign currency transactions — — 11 (150 ) 123 — (16 ) Other non-operating income, net — 1 1 7 13 — 22 Income (loss) from continuing operations before income taxes and equity in losses from subsidiaries — (260 ) (63 ) 488 375 — 540 Income tax benefit (expense) 193 100 26 (297 ) (579 ) — (557 ) Income (loss) from continuing operations before equity in losses from subsidiaries 193 (160 ) (37 ) 191 (204 ) — (17 ) Equity in losses from subsidiaries (220 ) (60 ) (23 ) (220 ) — 523 — Loss from continuing operations, net of taxes (27 ) (220 ) (60 ) (29 ) (204 ) 523 (17 ) Income from discontinued operations, net of taxes 365 365 365 426 375 (1,525 ) 371 Net income 338 145 305 397 171 (1,002 ) 354 Net income attributable to noncontrolling interests — — — — (16 ) — (16 ) Net income attributable to Hilton stockholders $ 338 $ 145 $ 305 $ 397 $ 155 $ (1,002 ) $ 338 Comprehensive income $ 121 $ 143 $ 310 $ 326 $ 21 $ (785 ) $ 136 Comprehensive income attributable to noncontrolling interests — — — — (15 ) — (15 ) Comprehensive income attributable to Hilton stockholders $ 121 $ 143 $ 310 $ 326 $ 6 $ (785 ) $ 121 Year Ended December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (185 ) $ (8 ) $ 1,267 $ 181 $ — $ 1,255 Investing Activities: Capital expenditures for property and equipment — — (9 ) (7 ) (56 ) — (72 ) Payments received on other financing receivables — — — 49 1 — 50 Capitalized software costs — — — (87 ) — — (87 ) Other — — — (6 ) (16 ) — (22 ) Net cash used in investing activities — — (9 ) (51 ) (71 ) — (131 ) Financing Activities: Borrowings — 175 1,500 — 1 — 1,676 Repayment of debt — (985 ) — — (20 ) — (1,005 ) Debt issuance costs — — (21 ) — — — (21 ) Intercompany transfers 1,902 995 (1,444 ) (1,209 ) (244 ) — — Dividends paid (181 ) — — — — — (181 ) Repurchases of common stock (1,721 ) — — — — — (1,721 ) Distributions to noncontrolling interests — — — — (1 ) — (1 ) Tax withholdings on share-based compensation — — (44 ) — — — (44 ) Acquisition of noncontrolling interest — — — (3 ) — — (3 ) Net cash provided by (used in) financing activities — 185 (9 ) (1,212 ) (264 ) — (1,300 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (10 ) — (10 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — (26 ) 4 (164 ) — (186 ) Cash, restricted cash and cash equivalents, beginning of period — — 63 28 579 — 670 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 37 $ 32 $ 415 $ — $ 484 Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (113 ) $ (103 ) $ 950 $ 285 $ (170 ) $ 849 Investing Activities: Capital expenditures for property and equipment — — (12 ) (12 ) (34 ) — (58 ) Payments received on other financing receivables — — — 7 — — 7 Capitalized software costs — — — (75 ) — — (75 ) Other — (13 ) — (8 ) 3 (3 ) (21 ) Net cash used in investing activities — (13 ) (12 ) (88 ) (31 ) (3 ) (147 ) Financing Activities: Borrowings — 1,822 — — 2 — 1,824 Repayment of debt — (1,852 ) — — (8 ) — (1,860 ) Debt issuance costs and redemption premium — (69 ) — — — — (69 ) Repayment of intercompany borrowings — — (3 ) — — 3 — Intercompany transfers 1,086 225 122 (865 ) (568 ) — — Dividends paid (195 ) — — — — — (195 ) Intercompany dividends — — — — (170 ) 170 — Cash transferred in spin-offs of Park and HGV — — — — (501 ) — (501 ) Repurchases of common stock (891 ) — — — — — (891 ) Distributions to noncontrolling interests — — — — (1 ) — (1 ) Tax withholdings on share-based compensation — — (31 ) — — — (31 ) Net cash provided by (used in) financing activities — 126 88 (865 ) (1,246 ) 173 (1,724 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — 8 — 8 Net decrease in cash, restricted cash and cash equivalents — — (27 ) (3 ) (984 ) — (1,014 ) 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 $ — $ — $ 63 $ 28 $ 579 $ — $ 670 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 ) $ — $ 866 $ 1,086 $ (605 ) $ 1,310 Investing Activities: Capital expenditures for property and equipment — — — (9 ) (308 ) — (317 ) Payments received on other financing receivables — — — 2 1 — 3 Issuance of intercompany receivables — — — (192 ) (42 ) 234 — Payments received on intercompany receivables — — — 192 — (192 ) — Capitalized software costs — — — (73 ) (8 ) — (81 ) Other — (6 ) — (37 ) 15 — (28 ) Net cash used in investing activities — (6 ) — (117 ) (342 ) 42 (423 ) 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 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure (unaudited) [Abstract] | |
Quarterly Financial Information | Selected 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 fairly present our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,074 $ 2,291 $ 2,253 $ 2,288 $ 8,906 Operating income 279 406 385 362 1,432 Net income 163 217 164 225 769 Net income attributable to Hilton stockholders 161 217 162 224 764 Basic earnings per share (1) $ 0.51 $ 0.72 $ 0.55 $ 0.76 $ 2.53 Diluted earnings per share (1) $ 0.51 $ 0.71 $ 0.54 $ 0.75 $ 2.50 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 1,896 $ 2,076 $ 2,091 $ 2,068 $ 8,131 Operating income 217 324 332 259 1,132 Net income 48 151 160 730 1,089 Net income attributable to Hilton stockholders 47 150 158 729 1,084 Basic earnings per share (1) $ 0.14 $ 0.46 $ 0.49 $ 2.29 $ 3.34 Diluted earnings per share (1) $ 0.14 $ 0.46 $ 0.49 $ 2.27 $ 3.32 ____________ (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. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and entities in which we have a controlling financial interest, including variable interest entities ("VIEs") for which 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. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with United States ("U.S") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. |
Reclassifications | Reclassifications On January 1, 2018, we adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09") using the full retrospective approach as of January 1, 2016. All amounts and disclosures set forth in this prospectus reflect the necessary adjustments required for the adoption of this standard, including the reclassification of prior period balances to conform to current year presentation. See "Summary of Significant Accounting Policies" below for additional information. |
Revenue Recognition | Revenue Recognition Revenues are primarily derived from management and franchise contracts with third-party hotel and resort owners, as well as from our owned and leased hotels. The majority of our performance obligations are a series of distinct goods or services, for which we receive variable consideration through our management and franchise fees or fixed consideration through our owned and leased hotels. We allocate the variable fees to the distinct services to which they relate applying the prescribed variable consideration allocation guidance, and we allocate fixed consideration to the related performance obligations based on their estimated standalone selling prices. We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less, which it is in substantially all cases. Additionally, we do not typically include extended payment terms in our contracts with customers. Management and franchise revenues We identified the following performance obligations in connection with our management and franchise contracts: • Intellectual Property ("IP") licenses grant the right to access our hotel system IP, including brand IP, reservations systems and property management systems. • Hotel management services include providing day-to-day management services of the hotels for the property owners. • Development services include providing consultative services (e.g., design assistance and contractor selection) to the property owner to assist with the construction of the hotel prior to the hotel opening. • Pre-opening services include providing services (e.g., advertising, budgeting, e-commerce strategies, food and beverage testing) to the property owner to assist in preparing for the hotel opening. • Substantive rights for free or discounted goods or services to hotel guests are satisfied at the earlier point in time of either when the substantive right expires or the underlying free or discounted good or service is provided to the hotel guest. Each of the identified performance obligations is considered to be a series of distinct services transferred over time. While the underlying activities may vary from day to day, the nature of the commitments are the same each day, and the property owner can independently benefit from each day's services. Management and franchise fees are typically based on the sales or usage of the underlying hotel, with the exception of fixed upfront fees, which usually represent an insignificant portion of the transaction price. Franchise and licensing fees represent fees earned in connection with the licensing of one of our brands, usually under long-term contracts with the property owner, and include the following: • Royalty fees are generally based on a percentage of the hotel's monthly gross room revenue and, in some cases, may also include a percentage of gross food and beverage revenues and other revenues, as applicable. These fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Application, initiation and other fees are charged when: (i) new hotels enter our system; (ii) there is a change of ownership of a hotel; or (iii) contracts with properties already in our system are extended. These fees are typically fixed and collected upfront and are recognized as revenue over the term of the franchise contract. We do not consider this advance consideration to include a significant financing component, since it is used to protect us from the property owner failing to adequately complete some or all of its obligations under the contract. • Licensing fees are earned from: (i) a license agreement with HGV to use certain Hilton marks and IP in its timeshare business, which are typically billed and collected monthly, and revenue is generally recognized at the same time the fees are billed and (ii) co-brand credit card arrangements, which are recognized as revenue when points for our guest loyalty program, Hilton Honors, are issued, generally as spend on the co-branded credit card occurs; see further discussion below under "Hilton Honors." Consideration paid or anticipated to be paid to incentivize hotel owners to enter into franchise contracts with us is amortized over the life of the applicable contract as a reduction to franchise and licensing fees. Management fees represent fees earned from hotels that we manage, usually under long-term contracts with the property owner, and include the following: • Base management fees are generally based on a percentage of the hotel's monthly gross revenue. Base fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Incentive management fees are generally based on a percentage of the hotel's operating profits and in some cases may be subject to a stated return threshold to the property owner, normally over a one-calendar year period (the "incentive period"). Incentive fee revenue is recognized on a monthly basis, but only to the extent the cumulative fee earned does not exceed the probable fee for the incentive period. Incentive fee payment terms vary, but they are generally billed and collected monthly or annually upon completion of the incentive period. Consideration paid or anticipated to be paid to incentivize hotel owners to enter into management contracts with us is amortized over the life of the applicable contract as a reduction to base and other management fees. We do not estimate revenues expected to be recognized related to our unsatisfied performance obligations for our: (i) royalty fees, since they are considered sales-based royalty fees recognized as hotel room sales occur in exchange for licenses of our brand names over the terms of the franchise contracts and (ii) base management fees and incentive management fees, since they are allocated entirely to the wholly unsatisfied promise to transfer management services, which form part of a single performance obligation in a series, over the term of the individual management contract. Other revenues from managed and franchised properties represent amounts that are contractually reimbursed to us by property owners, either directly as costs are incurred or indirectly through fees that are billed and collected in advance related to certain costs and expenses of the related properties, and include the following: • Direct reimbursements include payroll and related costs and certain other operating costs of the managed and franchised properties' operations, which are contractually reimbursed to us by the property owners as expenses are incurred. Revenue is recognized based on the amount of expenses incurred by Hilton, which are presented as other expenses from managed and franchised properties in our consolidated statements of operations, that are then reimbursed to us by the property owner typically on a monthly basis, which results in no net effect on operating income (loss) or net income (loss). • Indirect reimbursements include marketing expenses and other expenses associated with our brands and shared services, which are paid from fees collected by Hilton from the managed and franchised properties. Indirect reimbursements are typically billed and collected monthly, based on the underlying hotel's sales or usage (such as gross room revenue and number of reservations processed), and revenue is generally recognized as services are provided. System implementation fees charged to property owners are deferred and recognized as revenue over the term of the management or franchise contract. The corresponding expenses are expensed as incurred and are presented as other expenses from managed and franchised properties in our consolidated statements of operations and are expected to equal the revenues earned from indirect reimbursements over time. The management and franchise fees and reimbursements from third-party hotel owners are allocated to the performance obligations and the distinct services to which they relate using their estimated standalone selling prices. The terms of the fees earned under the contract relate to a specific outcome of providing the services (e.g., hotel room sales) or to Hilton's efforts (e.g., costs) to satisfy the performance obligations. Using time as the measure of progress, we recognize fee revenue and indirect reimbursements in the period earned per the terms of the contract and revenue related to direct reimbursements in the period in which the cost is incurred. Owned and leased hotel revenues We identified the following performance obligations in connection with our owned and leased hotel revenues, for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: • Cancellable room reservations or ancillary services are typically satisfied as the good or service is transferred to the hotel guest, which is generally when the room stay occurs. • Noncancellable room reservations and banquet or conference reservations represent a series of distinct goods or services provided over time and satisfied as each distinct good or service is provided, which is reflected by the duration of the reservation. • Substantive rights for free or discounted goods or services are satisfied at the earlier of when: (i) the substantive right expires or (ii) the underlying free or discounted good or service is provided to the hotel guest. • Other ancillary goods and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest. • Components of package reservations for which each component could be sold separately to other hotel guests are considered separate performance obligations and are satisfied as set forth above. Owned and leased hotel revenues primarily consist of hotel room sales, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking) related to owned, leased and consolidated non-wholly owned hotel properties. Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. Owned and leased hotel revenues are reduced upon issuance of Hilton Honors points for Hilton Honors members' paid stay transactions and are recognized when Hilton Honors points are redeemed for a free stay at an owned or leased hotel (see the "Hilton Honors" section below for additional information). Although the transaction prices of hotel room sales, goods and other services are generally fixed and based on the respective room reservation or other agreement, an estimate to reduce the transaction price is required if a discount is expected to be provided to the customer. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. On occasion, the hotel may also provide the customer with a substantive right to a free or discounted good or service in conjunction with a room reservation or banquet contract (e.g., free breakfast and free room night for every four nights booked). These substantive rights are considered separate performance obligations to which a portion of the transaction price is allocated based on the estimated standalone selling prices of the good or service, adjusted for the likelihood the hotel guest will exercise the right. Other revenues Other revenues include revenues generated by the incidental support of hotel operations for owned, leased, managed and franchised hotels, including purchasing operations, and other operating income. Purchasing revenues include any amounts received for vendor rebate arrangements that we participate in as a manager of hotels. Taxes and fees collected on behalf of governmental agencies We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in our measurement of transaction prices. We have elected to present revenue net of sales taxes and other similar taxes. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. |
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 historical results and financial position of discontinued operations are separately presented in our consolidated financial statements. |
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, including self-insurance collateral, and furniture, fixtures and equipment replacement reserves required under certain lease agreements. |
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. |
Contract Assets | Contract Assets Contract assets relate to incentive management fees for which the period of service has passed, but for which our right to consideration is conditional upon completing the requirements of the incentive fee period. Contract assets are included in other current assets in our consolidated balance sheets and are reclassified to accounts receivable when our right to consideration becomes unconditional. |
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 affiliates 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 values of our reporting units to their fair values. Our reporting units are the same as our operating segments as described in Note 19 : " Business Segments ." 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 if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, including goodwill. The estimated fair value is based on 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 value, goodwill of the reporting unit is not impaired; otherwise, an impairment loss would be recognized in our consolidated statements of operations in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. |
Brands | Brands We manage, franchise, own and lease 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, 2018 , our brand portfolio included Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Motto 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. LXR Hotels & Resorts, Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Motto by Hilton, Tru by Hilton, and Home2 Suites by Hilton were launched post-Merger and, as such, they were not assigned fair values, and we do not have any intangible assets for these brands recorded in our consolidated balances sheets. We evaluate our brands intangible assets for impairment on an annual basis or at other times during the year 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 if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The estimated fair value is based on internal projections of expected future cash flows. If a brand intangible asset’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 as an impairment loss. |
Intangible Assets, Finite-Lived | 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 contracts, franchise contracts, leases, certain proprietary technologies and our Hilton Honors guest loyalty program. Additionally, we capitalize cash consideration paid to incentivize hotel owners to enter into management and franchise contracts with us as contract acquisition costs and the incremental costs to obtain or fulfill the contracts as development commissions, which are generally fixed. We also capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses, as well as internal and external costs incurred in connection with the development of upgrades or enhancements that result in additional information technology functionality. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which for contract acquisition costs and development commissions is the contract term, including any renewal periods that are at our sole option. These estimated useful lives are generally as follows: management contracts recorded at the Merger ( 13 to 16 years); management contract acquisition costs and development commissions ( 20 to 30 years); franchise contracts recorded at the Merger ( 12 to 13 years); franchise contract acquisition costs and development commissions ( 10 to 20 years); leases ( 12 to 35 years); Hilton Honors ( 16 years); and capitalized software development costs ( 3 years). In our consolidated statements of operations, the amortization of these intangible assets, excluding contract acquisition costs, is included in depreciation and amortization expense, and the amortization of contract acquisition costs is recognized as a reduction to franchise and licensing fees and base and other management fees, based on contract type. Costs incurred prior to the acquisition of a contract, such as external legal costs, are expensed as incurred and included in general and administrative expenses in our consolidated statements of operations. Cash flows for contract acquisition costs and development commissions are included as operating activities in our consolidated statements of cash flows, and cash flows for software development costs are included as investing activities. We review all finite lived intangible assets for impairment when indicators of impairment exist. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset group. If the carrying value of the asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the estimated 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 impairment. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset group. If it is determined that the expected undiscounted future cash flows are less than the net carrying value of the asset group, the excess of the net carrying 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 group using discount and capitalization rates deemed reasonable for the type of assets, 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 or through the normal operation of the asset. |
Contract Liabilities | Contract Liabilities Contract liabilities relate to: (i) advance consideration received from hotel owners at contract inception for services considered to be part of the contract performance obligations, such as application, initiation and other fees; (ii) advance consideration received for certain indirect reimbursements, such as system implementation fees; and (iii) amounts received when points are issued under Hilton Honors, but for which revenue is not yet recognized, since the related points are not yet redeemed. Contract liabilities related to advance consideration received for fees and certain indirect reimbursements are recognized as revenue over the term of the related contract. Contract liabilities related to amounts received for Hilton Honors are recognized as revenue when the points are redeemed for a free good or service by the Hilton Honors member, which, on average, occurs within two years of points issuance. Contract liabilities are included in deferred revenues in our consolidated balance sheets. |
Hilton Honors | Hilton Honors Hilton Honors is our guest loyalty and marketing program provided to our hotel and resort properties. Nearly all of our managed, franchised, owned and leased 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, they are provided with a substantive right to free or discounted goods or services in the future upon accumulation of the required level of Hilton Honors points. Points may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties, including, but not limited to, airlines, car rentals, cruises, vacation packages, shopping and dining. As points are issued to a Hilton Honors member, the property or program partner pays Hilton Honors based on an estimated cost per point for the costs of operating the program, which include marketing, promotion, communication and administrative expenses, as well as the estimated cost of award redemptions. When these payments are received we record amounts equal to the estimated cost per point of the future redemption obligation within the liability for guest loyalty program and any amounts received in excess of the estimated cost per point within deferred revenues in our consolidated balance sheets. We engage outside actuaries to assist in determining the fair value of the future redemption obligation using statistical formulas that project future point redemptions based on factors that include historical experience, an estimate of points that will eventually be redeemed, which includes an estimate of "breakage" for points that will never be redeemed, and the cost of reimbursing properties and other third parties with respect to other redemption opportunities available to Hilton Honors members. When points are issued as a result of a stay at an owned or leased hotel, we recognize a reduction in owned and leased hotel revenues, since we are also the guest loyalty program sponsor. For the Hilton Honors fees that are charged to the participating properties, we allocate the fees to the substantive right created by the Hilton Honors points that are issued using the variable consideration allocation guidance, since the fees are directly related to the issuance of Hilton Honors points to the Hilton Honors member and Hilton's efforts to satisfy the future redemption of those Hilton Honors points. The transaction prices for the Hilton Honors points are reduced by the expected payments to the third parties that will provide the free or discounted room or service using the actuarial projection of the cost per point. The remaining transaction price is then further allocated to the points that are expected to be redeemed, adjusting the points that are issued for estimated breakage, and recognized when those points are redeemed. While the points are outstanding, both the estimate of the expected payments to third parties (cost per point) and the estimated breakage are reevaluated, and the amount of revenue recognized when each point is redeemed is adjusted so that the final amount allocated to the substantive right of the customer to use the point is reflective of the amount retained for providing the free or discounted goods and services, net of the payments to third parties and points not redeemed. We also earn licensing fees from co-brand credit card arrangements (see "Management and franchise revenues" within the "Revenue Recognition" section above). The co-brand license fee is allocated between two performance obligations based on their estimated standalone selling prices: (i) an IP license using the relief-from-royalty method and (ii) substantive rights for free or discounted goods or services to the credit card customers using a cost plus method based on an evaluation of other third-party administrators. We satisfy our performance obligation related to points issued under Hilton Honors when points are redeemed for a free or discounted good or service by the Hilton Honors member, and we satisfy our remaining performance obligations over time as the customer simultaneously receives and consumes the benefits of the goods or services provided. Hilton Honors reimburses participating properties and applicable third parties when points are redeemed by members, at which time the redemption obligation is reduced and the related deferred revenue is recognized in other revenues from managed and franchised properties in our consolidated statements of operations. Additionally, when Hilton Honors members redeem award certificates at our owned and leased hotels, we recognize room revenue, included in owned and leased hotel revenues in our consolidated statements of operations. |
Fair Value Measurement | Fair Value Measurements – Valuation Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (i.e., an exit price). We use the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our own assumptions about the data market participants would use in pricing the asset or liability developed based on the best information available 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. 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 investment in a foreign operation ("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 our 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 the undesignated derivative instrument 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, while cash flows from undesignated derivative financial instruments are included as an investing activity. 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 the 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 no longer highly effective as a hedge, the underlying hedged transaction is no longer probable or the hedging instrument expires, is sold, terminated or exercised. |
Currency Translation | Currency Translation The 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 currency exchange rate changes related to transactions denominated in a currency other than an entity's functional currency or intercompany receivables and payables denominated in a currency other than an entity’s functional currency that are not of a long-term investment nature are recognized 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 currency 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 reinsurance arrangements that provide coverage for a certain portion of our deductibles and/or acts as a financial intermediary for claim payments on our self-insurance program, along with property and casualty insurance for certain international hotels that are reinsured by other third parties. These obligations and reinsurance arrangements can cause timing differences in the recognition of assets, liabilities, gains and losses between reporting periods, although these amounts ultimately offset when the related claims are settled. 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 and 2017 Omnibus Incentive Plans, we award time-vesting restricted stock units and restricted stock ("RSUs"), nonqualified stock options ("options") and performance-vesting restricted stock units and restricted stock (collectively, "performance shares") to our eligible employees and deferred share units ("DSUs") to members of our board of directors. • RSUs generally vest in equal annual installments over two or three years from the date of grant. Vested RSUs generally will be settled for the Company's common stock, with the exception of certain awards that will be settled in cash. The grant date fair value per share is equal to the closing stock price on the grant date. • Options vest over three years in equal annual installments from the grant date and terminate 10 years from the grant date or earlier if the individual’s service terminates under certain circumstances. The exercise price is equal to the closing stock price on the grant date. The grant date fair value per share is estimated using the Black-Scholes-Merton option-pricing model. • Performance shares are settled at the end of a three -year performance period with 50 percent of the awards subject to achievement based on the compound annual growth rate ("CAGR") of the Company's adjusted earnings before interest expense, a provision for income taxes and depreciation and amortization ("Adjusted EBITDA"), referred to as EBITDA CAGR, and the other 50 percent of the awards subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR, referred to as FCF CAGR. The total number of performance shares that vest related to each performance measure is based on an achievement factor that, in both cases, ranges from a zero percent to 200 percent payout. The grant date fair value per share for these awards is equal to the closing stock price on the grant date. • DSUs are issued to our independent directors and are fully vested and non-forfeitable on the grant date. DSUs are settled for shares of the Company's common stock, which are deliverable upon the earlier of termination of the individual's service on our board of directors or a change in control. The grant date fair value per share is equal to the closing stock price on the grant date. We recognize these share-based payment transactions when services from the employees 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, which is the period during which an employee is required to provide service in exchange for an award. Liability awards are measured based on the award’s 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 for such liability awards. 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 the 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. On December 22, 2017, H.R.1, known as the Tax Cuts and Jobs Act of 2017 (the "TCJ Act") was signed into law and included widespread changes to the Internal Revenue Code including, among other items, the creation of new taxes on certain foreign earnings. The TCJ Act subjects a U.S. stockholder to current tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. In addition, the TCJ Act provides for foreign derived intangible income ("FDII") to be taxed at a lower effective rate than the statutory rate by allowing a tax deduction against the income. Interpretive guidance on the accounting for GILTI states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. We have elected to recognize the current tax on GILTI as an expense in the period the tax is incurred. We include the current tax impact of both GILTI and the FDII deduction in our effective tax rate. See Note 14: "Income Taxes" for additional information on the effects of the TCJ Act on our consolidated financial statements. 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. |
New Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-02 ("ASU 2018-02"), Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU permits a reclassification from accumulated other comprehensive income (loss) to retained earnings (deficit) for stranded tax effects that do not reflect the appropriate tax rates as a result of the TCJ Act. We early adopted, as permitted by the standard, the provisions of ASU 2018-02 during the fourth quarter of 2018 and reclassified $16 million from accumulated other comprehensive loss to accumulated deficit as of January 1, 2018. In March 2017, the FASB issued ASU No. 2017-07 ("ASU 2017-07"), Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This ASU requires employers to report the service cost component of net periodic pension cost in the same line item or items of the statement of operations as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic pension cost must be presented separately from the service cost component and outside of a subtotal of income (loss) from operations. We adopted ASU 2017-07 on January 1, 2018 on a retrospective basis in our consolidated statements of operations, which includes presenting: (i) the service cost component of net periodic pension cost in owned and leased hotel expenses and general and administrative expenses and (ii) the other components of net periodic pension cost in other non-operating income (loss), net. Prior to adoption, all net periodic pension costs were presented in owned and leased hotel expenses and general and administrative expenses. We have applied the practical expedient permitting us to use the amounts disclosed in Note 15 : " Employee Benefit Plans " for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. See the "Prior Period Financial Information" below for the effect of the adoption of ASU 2017-07 on our consolidated statements of operations for the years ended December 31, 2017 and 2016 . In May 2014, the FASB issued ASU 2014-09. This ASU supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) and requires entities to recognize revenue when a customer obtains control of promised goods or services and in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. Subsequent to ASU 2014-09, the FASB issued several related ASUs to clarify the application of the new revenue recognition standard, collectively referred to herein as ASU 2014-09. We adopted the requirements of ASU 2014-09 on January 1, 2018 using the full retrospective approach, as permitted by the standard, resulting in a cumulative adjustment to accumulated deficit of $212 million as of January 1, 2016. The provisions of ASU 2014-09 affected our revenue recognition as follows: • Application, initiation and other fees are recognized over the term of the franchise contract, rather than upon execution of the contract and the unamortized portion of these fees is included in deferred revenues in our consolidated balance sheets. • Contract acquisition costs related to our management and franchise contracts are recognized over the term of the contracts as a reduction to revenue, instead of as amortization expense. This change does not affect net income (loss). • Incentive management fees are 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, as opposed to recognizing amounts that would be due if the management contract was terminated at the end of the reporting period. This change does not affect net income (loss) for any full year period. • Revenue related to our Hilton Honors guest loyalty program is recognized upon point redemption, net of any reward reimbursement paid to a third party, as opposed to recognized on a gross basis at the time points are issued in conjunction with the accrual of the expected future cost of the reward reimbursement. Additionally, points issued at owned and leased hotels are accounted for as a reduction of owned and leased hotel revenues, as opposed to owned and leased hotel expenses. Fees received in excess of the estimated liability for guest loyalty program are included in deferred revenues in our consolidated balance sheets. • Reimbursable fees related to our management and franchise contracts are recognized as they are billed, as opposed to when we incur the related expenses. Timing differences related to the receipt and spend of these fees will no longer be recorded in other assets and other liabilities in our consolidated balance sheets. We have not retrospectively restated for contract modifications of management and franchise contracts that occurred before January 1, 2016. Instead, we have reflected the aggregate effect of all contract modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. The estimated effect of applying this practical expedient is to use a longer period over which to recognize on a straight line basis any fixed consideration either received from the customer or paid to the customer, since all fees will be amortized over the full contract term beginning on the date of initial execution, rather than amortizing fees received upon contract modifications prospectively from the contract modification date. We do not anticipate that this effect is material given the insignificance of the fixed consideration compared to the overall consideration we expect to earn over the term of the contract. We also elected not to disclose the amount of the transaction price and timing of revenue recognition related to our remaining performance obligations as of December 31, 2017 . See the "Prior Period Financial Information" below for the effect of the adoption of ASU 2014-09 on our consolidated balance sheet as of December 31, 2017 and our consolidated statements of operations for the years ended December 31, 2017 and 2016 . Prior Period Financial Information The following table presents the effect of the adoption of ASU 2014-09 for the line items affected in our consolidated balance sheet: December 31, 2017 As Previously Reported Adoption of ASU 2014-09 As Adjusted (in millions) ASSETS Accounts receivable, net $ 998 $ 7 $ 1,005 Prepaid expenses 111 16 127 Other current assets 171 (2 ) 169 Management and franchise contracts, net 909 44 953 Deferred income tax assets 113 (2 ) 111 Other non-current assets 434 (143 ) 291 TOTAL ASSETS 14,308 (80 ) 14,228 LIABILITIES AND EQUITY Current liabilities: Accounts payable, accrued expenses and other (1) 1,487 (71 ) 1,416 Current portion of deferred revenues (1) 41 325 366 Current portion of liability for guest loyalty program (1) 622 — 622 Deferred revenues 97 732 829 Deferred income tax liabilities 1,063 (132 ) 931 Other long-term liabilities 1,470 (550 ) 920 Total liabilities 12,233 304 12,537 Equity: Accumulated deficit (6,596 ) (385 ) (6,981 ) Accumulated other comprehensive loss (742 ) 1 (741 ) Total equity 2,075 (384 ) 1,691 TOTAL LIABILITIES AND EQUITY 14,308 (80 ) 14,228 ____________ (1) The current portion of deferred revenues and current portion of liability for guest loyalty program have been separated from accounts payable, accrued expenses and other in the "As Previously Reported" column to conform with current presentation. The following tables present the effect of the adoption of ASU 2014-09 and ASU 2017-07 on our consolidated statements of operations: Year Ended December 31, 2017 As Previously Reported Adoption of ASU 2014-09 Adoption of ASU 2017-07 As Adjusted (in millions) Revenues Franchise and licensing fees $ 1,382 $ (61 ) $ — $ 1,321 Base and other management fees 336 (12 ) — 324 Incentive management fees 222 — — 222 Owned and leased hotels 1,450 (18 ) — 1,432 Other revenues 105 — — 105 3,495 (91 ) — 3,404 Other revenues from managed and franchised properties 5,645 (918 ) — 4,727 Total revenues 9,140 (1,009 ) — 8,131 Expenses Owned and leased hotels 1,286 (18 ) 1 1,269 Depreciation and amortization 347 (11 ) — 336 General and administrative 434 — 5 439 Other expenses 56 — — 56 2,123 (29 ) 6 2,100 Other expenses from managed and franchised properties 5,645 (746 ) — 4,899 Total expenses 7,768 (775 ) 6 6,999 Operating income 1,372 (234 ) (6 ) 1,132 Interest expense (408 ) 57 — (351 ) Gain on foreign currency transactions 3 — — 3 Loss on debt extinguishment (60 ) — — (60 ) Other non-operating income, net 23 — 6 29 Income before income taxes 930 (177 ) — 753 Income tax benefit 334 2 — 336 Net income 1,264 (175 ) — 1,089 Net income attributable to noncontrolling interests (5 ) — — (5 ) Net income attributable to Hilton stockholders $ 1,259 $ (175 ) $ — $ 1,084 Earnings per share: Basic $ 3.88 $ 3.34 Diluted $ 3.85 $ 3.32 Year Ended December 31, 2016 As Previously Reported Adoption of ASU 2014-09 Adoption of ASU 2017-07 As Adjusted (in millions) Revenues Franchise and licensing fees $ 1,154 $ (63 ) $ — $ 1,091 Base and other management fees 242 (12 ) — 230 Incentive management fees 142 — — 142 Owned and leased hotels 1,452 (18 ) — 1,434 Other revenues 82 — — 82 3,072 (93 ) — 2,979 Other revenues from managed and franchised properties 4,310 (713 ) — 3,597 Total revenues 7,382 (806 ) — 6,576 Expenses Owned and leased hotels 1,295 (18 ) 2 1,279 Depreciation and amortization 364 (11 ) — 353 General and administrative 403 — 6 409 Other expenses 66 — — 66 2,128 (29 ) 8 2,107 Other expenses from managed and franchised properties 4,310 (701 ) — 3,609 Total expenses 6,438 (730 ) 8 5,716 Gain on sales of assets, net 8 — — 8 Operating income 952 (76 ) (8 ) 868 Interest expense (394 ) 60 — (334 ) Loss on foreign currency transactions (16 ) — — (16 ) Other non-operating income, net 14 — 8 22 Income from continuing operations before income taxes 556 (16 ) — 540 Income tax expense (564 ) 7 — (557 ) Loss from continuing operations, net of taxes (8 ) (9 ) — (17 ) Income from discontinued operations, net of taxes 372 (1 ) — 371 Net income 364 (10 ) — 354 Net income attributable to noncontrolling interests (16 ) — — (16 ) Net income attributable to Hilton stockholders $ 348 $ (10 ) $ — $ 338 Earnings (loss) per share: Basic: Net loss from continuing operations per share $ (0.05 ) $ (0.08 ) Net income from discontinued operations per share 1.11 1.11 Net income per share $ 1.06 $ 1.03 Diluted: Net loss from continuing operations per share $ (0.05 ) $ (0.08 ) Net income from discontinued operations per share 1.11 1.11 Net income per share $ 1.06 $ 1.03 Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-15 ("ASU 2018-15"), Intangibles – Goodwill and Other – Internal-use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns guidance for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with guidance for capitalizing implementation costs to develop or obtain internal-use software. Capitalized implementation costs will be amortized over the term of the arrangement and presented in the same line item in the statement of operations as the fees associated with the service contract. The provisions of ASU 2018-15 are effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years; early adoption is permitted. We intend to adopt ASU 2018-15 on January 1, 2019 on a prospective basis, and we do not expect it to have a material effect on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 ("ASU 2016-02"), Leases (Topic 842), which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position of lessees as right-of-use ("ROU") assets and lease liabilities, with certain practical expedients available. Subsequent to ASU 2016-02, the FASB issued related ASUs, including ASU No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements, which provides for another transition method in addition to the modified retrospective approach required by ASU 2016-02. This option allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative adjustment to the opening balance of retained earnings in the period of adoption. We will adopt ASU 2016-02 on January 1, 2019 and apply the package of practical expedients included therein, as well as utilize the transition method included in ASU 2018-11. By applying ASU 2016-02 at the adoption date, as opposed to at the beginning of the earliest period presented, the presentation of financial information for periods prior to January 1, 2019 will remain unchanged and in accordance with Leases (Topic 840) . On January 1, 2019, we expect to recognize additional ROU assets of between $0.9 billion and $1.1 billion and lease liabilities of between $1.2 billion and $1.4 billion in our consolidated balance sheet, with the difference recognized in accumulated deficit as a result of the impairment of ROU assets that occurred in periods prior to the adoption date. In preparation for the adoption, we have designed internal controls and information system functionality to enable the preparation of the necessary financial information and have reached conclusions on key accounting assessments. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table presents the effect of the adoption of ASU 2014-09 for the line items affected in our consolidated balance sheet: December 31, 2017 As Previously Reported Adoption of ASU 2014-09 As Adjusted (in millions) ASSETS Accounts receivable, net $ 998 $ 7 $ 1,005 Prepaid expenses 111 16 127 Other current assets 171 (2 ) 169 Management and franchise contracts, net 909 44 953 Deferred income tax assets 113 (2 ) 111 Other non-current assets 434 (143 ) 291 TOTAL ASSETS 14,308 (80 ) 14,228 LIABILITIES AND EQUITY Current liabilities: Accounts payable, accrued expenses and other (1) 1,487 (71 ) 1,416 Current portion of deferred revenues (1) 41 325 366 Current portion of liability for guest loyalty program (1) 622 — 622 Deferred revenues 97 732 829 Deferred income tax liabilities 1,063 (132 ) 931 Other long-term liabilities 1,470 (550 ) 920 Total liabilities 12,233 304 12,537 Equity: Accumulated deficit (6,596 ) (385 ) (6,981 ) Accumulated other comprehensive loss (742 ) 1 (741 ) Total equity 2,075 (384 ) 1,691 TOTAL LIABILITIES AND EQUITY 14,308 (80 ) 14,228 ____________ (1) The current portion of deferred revenues and current portion of liability for guest loyalty program have been separated from accounts payable, accrued expenses and other in the "As Previously Reported" column to conform with current presentation. The following tables present the effect of the adoption of ASU 2014-09 and ASU 2017-07 on our consolidated statements of operations: Year Ended December 31, 2017 As Previously Reported Adoption of ASU 2014-09 Adoption of ASU 2017-07 As Adjusted (in millions) Revenues Franchise and licensing fees $ 1,382 $ (61 ) $ — $ 1,321 Base and other management fees 336 (12 ) — 324 Incentive management fees 222 — — 222 Owned and leased hotels 1,450 (18 ) — 1,432 Other revenues 105 — — 105 3,495 (91 ) — 3,404 Other revenues from managed and franchised properties 5,645 (918 ) — 4,727 Total revenues 9,140 (1,009 ) — 8,131 Expenses Owned and leased hotels 1,286 (18 ) 1 1,269 Depreciation and amortization 347 (11 ) — 336 General and administrative 434 — 5 439 Other expenses 56 — — 56 2,123 (29 ) 6 2,100 Other expenses from managed and franchised properties 5,645 (746 ) — 4,899 Total expenses 7,768 (775 ) 6 6,999 Operating income 1,372 (234 ) (6 ) 1,132 Interest expense (408 ) 57 — (351 ) Gain on foreign currency transactions 3 — — 3 Loss on debt extinguishment (60 ) — — (60 ) Other non-operating income, net 23 — 6 29 Income before income taxes 930 (177 ) — 753 Income tax benefit 334 2 — 336 Net income 1,264 (175 ) — 1,089 Net income attributable to noncontrolling interests (5 ) — — (5 ) Net income attributable to Hilton stockholders $ 1,259 $ (175 ) $ — $ 1,084 Earnings per share: Basic $ 3.88 $ 3.34 Diluted $ 3.85 $ 3.32 Year Ended December 31, 2016 As Previously Reported Adoption of ASU 2014-09 Adoption of ASU 2017-07 As Adjusted (in millions) Revenues Franchise and licensing fees $ 1,154 $ (63 ) $ — $ 1,091 Base and other management fees 242 (12 ) — 230 Incentive management fees 142 — — 142 Owned and leased hotels 1,452 (18 ) — 1,434 Other revenues 82 — — 82 3,072 (93 ) — 2,979 Other revenues from managed and franchised properties 4,310 (713 ) — 3,597 Total revenues 7,382 (806 ) — 6,576 Expenses Owned and leased hotels 1,295 (18 ) 2 1,279 Depreciation and amortization 364 (11 ) — 353 General and administrative 403 — 6 409 Other expenses 66 — — 66 2,128 (29 ) 8 2,107 Other expenses from managed and franchised properties 4,310 (701 ) — 3,609 Total expenses 6,438 (730 ) 8 5,716 Gain on sales of assets, net 8 — — 8 Operating income 952 (76 ) (8 ) 868 Interest expense (394 ) 60 — (334 ) Loss on foreign currency transactions (16 ) — — (16 ) Other non-operating income, net 14 — 8 22 Income from continuing operations before income taxes 556 (16 ) — 540 Income tax expense (564 ) 7 — (557 ) Loss from continuing operations, net of taxes (8 ) (9 ) — (17 ) Income from discontinued operations, net of taxes 372 (1 ) — 371 Net income 364 (10 ) — 354 Net income attributable to noncontrolling interests (16 ) — — (16 ) Net income attributable to Hilton stockholders $ 348 $ (10 ) $ — $ 338 Earnings (loss) per share: Basic: Net loss from continuing operations per share $ (0.05 ) $ (0.08 ) Net income from discontinued operations per share 1.11 1.11 Net income per share $ 1.06 $ 1.03 Diluted: Net loss from continuing operations per share $ (0.05 ) $ (0.08 ) Net income from discontinued operations per share 1.11 1.11 Net income per share $ 1.06 $ 1.03 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedules of Discontinued Operations | The following table presents the results of operations of Park and HGV that were included in discontinued operations in our consolidated statement of operations for the year ended December 31, 2016: (in millions) Total revenues from discontinued operations $ 4,236 Expenses Owned and leased hotels 1,770 Timeshare 942 Depreciation and amortization 320 Other 298 Total expenses from discontinued operations 3,330 Gain on sales of assets, net 1 Operating income from discontinued operations 907 Non-operating loss, net (210 ) Income from discontinued operations before income taxes 697 Income tax expense (326 ) Income from discontinued operations, net of taxes 371 Income from discontinued operations attributable to noncontrolling interests, net of taxes (6 ) Income from discontinued operations attributable to Hilton stockholders, net of taxes $ 365 The following table presents selected financial information of Park and HGV that was included in our consolidated statement of cash flows for the year ended December 31, 2016: (in millions) Non-cash items included in net income: Depreciation and amortization $ 320 Gain on sales of assets, net (1 ) Investing activities: Capital expenditures for property and equipment $ (255 ) |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities | The following table summarizes the activity of our contract liabilities during the year ended December 31, 2018: in millions Balance as of December 31, 2017 $ 1,087 Cash received in advance and not recognized as revenue (1) 377 Revenue recognized (1) (229 ) Other (2) (175 ) Balance as of December 31, 2018 $ 1,060 ____________ (1) Primarily related to Hilton Honors. (2) Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Schedule of Variable Interest Entities | Our consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following: December 31, 2018 2017 (in millions) Cash and cash equivalents $ 71 $ 73 Accounts receivable, net 15 16 Property and equipment, net 68 57 Deferred income tax assets 53 56 Other non-current assets 58 57 Accounts payable, accrued expenses and other 41 43 Long-term debt (1) 205 212 Other long-term liabilities 15 13 ____________ (1) Includes capital lease obligations of $187 million and $191 million as of December 31, 2018 and 2017, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management and Franchise (2) Total (in millions) Balance as of December 31, 2016 $ 184 $ 5,034 $ 5,218 Spin-off of Park (91 ) — (91 ) Foreign currency translation 11 52 63 Balance as of December 31, 2017 104 5,086 5,190 Foreign currency translation (5 ) (25 ) (30 ) Balance as of December 31, 2018 $ 99 $ 5,061 $ 5,160 ____________ (1) Amounts 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-off of Park (423 ) 332 (91 ) Foreign currency translation 11 — 11 Balance as of December 31, 2017 444 (340 ) 104 Foreign currency translation (5 ) — (5 ) Balance as of December 31, 2018 $ 439 $ (340 ) $ 99 (2) There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2018, 2017 and 2016. |
Schedule of Other Intangible Assets | Amortizing intangible assets were as follows: December 31, 2018 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,228 $ (1,873 ) $ 355 Contract acquisition costs 525 (101 ) 424 Development commissions 108 (15 ) 93 $ 2,861 $ (1,989 ) $ 872 Other intangible assets: Leases (1) $ 288 $ (161 ) $ 127 Capitalized software costs 503 (321 ) 182 Hilton Honors (1) 338 (236 ) 102 Other (1) 38 (34 ) 4 $ 1,167 $ (752 ) $ 415 December 31, 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,242 $ (1,716 ) $ 526 Contract acquisition costs 416 (74 ) 342 Development commissions 97 (12 ) 85 $ 2,755 $ (1,802 ) $ 953 Other intangible assets: Leases (1) $ 301 $ (153 ) $ 148 Capitalized software costs 585 (428 ) 157 Hilton Honors (1) 341 (217 ) 124 Other (1) 38 (34 ) 4 $ 1,265 $ (832 ) $ 433 ____________ (1) Includes intangible assets that were initially recorded at their fair value at the time of the Merger. |
Amortization of Amortizing Intangible Assets | Amortization of our amortizing intangible assets was as follows: Year Ended December 31, 2018 2017 2016 (in millions) Recognized in depreciation and amortization expense (1) $ 271 $ 277 $ 301 Recognized as a reduction of franchise and licensing fees and base and other management fees 27 17 16 ____________ (1) Includes amortization expense that was associated with assets recorded at their fair value at the time of the Merger of $204 million , $206 million and $208 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, and amortization expense on capitalized software costs of $62 million , $67 million and $87 million , respectively. |
Schedule of Future Amortization Expense of Other Intangible Assets | We estimate future amortization of our amortizing intangible assets as of December 31, 2018 to be as follows: Recognized in Depreciation and Amortization Expense Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees Year (in millions) 2019 $ 279 $ 27 2020 236 25 2021 97 24 2022 66 22 2023 48 22 Thereafter 137 304 $ 863 $ 424 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment were as follows: December 31, 2018 2017 (in millions) Land $ 12 $ 12 Buildings and leasehold improvements (1) 456 428 Furniture and equipment 356 346 Construction-in-progress 24 17 848 803 Accumulated depreciation (1) (481 ) (450 ) $ 367 $ 353 ____________ (1) Buildings and leasehold improvements included $65 million and $68 million of capital lease assets as of December 31, 2018 and 2017 , respectively, with associated accumulated amortization of $45 million and $43 million , respectively. |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other were as follows: December 31, 2018 2017 (in millions) Accrued employee compensation and benefits $ 532 $ 502 Accounts payable 283 282 Insurance reserves, current 199 189 Other accrued expenses (1) 516 443 $ 1,530 $ 1,416 ____________ (1) Includes deposit liabilities related to hotel operations and application fees, taxes, interest and other accrued balances. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt balances, including obligations for capital leases, and associated interest rates as of December 31, 2018 were as follows: December 31, 2018 2017 (in millions) Senior notes with a rate of 4.250%, due 2024 $ 1,000 $ 1,000 Senior notes with a rate of 4.625%, due 2025 900 900 Senior notes with a rate of 5.125%, due 2026 1,500 — Senior notes with a rate of 4.875%, due 2027 600 600 Senior secured term loan facility with a rate of 4.26%, due 2023 3,119 3,929 Capital lease obligations with an average rate of 6.43%, due 2021 to 2030 225 233 Other debt with an average rate of 3.08%, due 2026 17 21 7,361 6,683 Less: unamortized deferred financing costs and discount (79 ) (81 ) Less: current maturities of long-term debt (1) (16 ) (46 ) $ 7,266 $ 6,556 ____________ (1) Balance as of December 31, 2017 is net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Debt maturities | The contractual maturities of long-term debt as of December 31, 2018 , were as follows: Year (in millions) 2019 $ 16 2020 17 2021 18 2022 19 2023 3,139 Thereafter 4,152 $ 7,361 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other long-term liabilities | Other long-term liabilities were as follows: December 31, 2018 2017 (in millions) Pension obligations $ 145 $ 165 Other long-term tax liabilities 395 397 Deferred employee compensation and benefits 113 117 Insurance reserves (1) 146 162 Other 64 79 $ 863 $ 920 ____________ (1) Obligations related to insurance claims are expected to be satisfied, on average, over the next three years . |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 2018 2017 (in millions) Cash Flow Hedges: Interest rate swaps Other non-current assets $ 16 $ 11 Forward contracts Other current assets 1 — Forward contracts Accounts payable, accrued expenses and other — 1 Non-designated Hedges: Forward contracts Other current assets 1 4 Forward contracts Accounts payable, accrued expenses and other 2 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: Year Ended December 31, Classification of Gain (Loss) Recognized 2018 2017 2016 (in millions) Cash Flow Hedges (1)(2) : Interest rate swaps Other comprehensive income (loss) $ 22 $ (5 ) $ (15 ) Interest rate swaps Interest expense (1 ) (16 ) (8 ) Forward contracts Other comprehensive income (loss) 2 (1 ) N/A Non-designated Hedges: Interest rate swaps (3) Other non-operating income, net N/A 2 4 Interest rate swaps (3) Interest expense (5 ) (10 ) (4 ) Forward contracts Gain (loss) on foreign currency transactions (9 ) 12 7 ____________ (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, 2018 , 2017 and 2016 . (2) The earnings effect of the Fee Forward Contracts on fee revenues for the years ended December 31, 2018 and 2017 was less than $1 million. (3) These amounts relate to the interest rate swaps that we have dedesignated and settled. The amounts recognized in interest expense were reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below; see Note 11 : " Derivative Instruments and Hedging Activities " for the fair value information of our derivatives and Note 15 : " Employee Benefit Plans " for fair value information of our pension assets: December 31, 2018 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 87 $ — $ 87 $ — Restricted cash equivalents 18 — 18 — Liabilities: Long-term debt (1) 7,040 3,809 — 3,039 December 31, 2017 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 284 $ — $ 284 $ — Restricted cash equivalents 12 — 12 — Liabilities: Long-term debt (1) 6,348 2,575 — 3,954 ____________ (1) The carrying values include 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, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rent Payments | The future minimum rent payments as of December 31, 2018 , were as follows: Operating Capital Year (in millions) 2019 $ 206 $ 30 2020 191 30 2021 166 30 2022 134 29 2023 119 29 Thereafter 865 164 Total minimum lease payments $ 1,681 312 Less: amount representing interest (87 ) Present value of minimum lease payments $ 225 |
Schedule of Rent Expense | Lease expense for operating leases was as follows: Year Ended December 31, 2018 2017 2016 (in millions) Fixed $ 225 $ 183 $ 224 Contingent 142 101 98 $ 367 $ 284 $ 322 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income from continuing operations before income taxes were as follows: Year Ended December 31, 2018 2017 2016 (in millions) U.S. income before tax $ 881 $ 632 $ 906 Foreign income (loss) before tax 197 121 (366 ) Income from continuing operations before income taxes $ 1,078 $ 753 $ 540 |
Schedule of Components of Income Tax Expense (Benefit) | The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2018 2017 2016 (in millions) Current: Federal $ 210 $ 239 $ 441 State 53 59 143 Foreign 60 95 70 Total current 323 393 654 Deferred: Federal (52 ) (667 ) (123 ) State (14 ) (35 ) 45 Foreign 52 (27 ) (19 ) Total deferred (14 ) (729 ) (97 ) Total provision (benefit) for income taxes $ 309 $ (336 ) $ 557 |
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, 2018 2017 2016 (in millions) Statutory U.S. federal income tax provision $ 226 $ 264 $ 189 State income taxes, net of U.S. federal tax benefit 37 19 22 Impact of foreign operations 26 4 34 Effects of the TCJ Act 13 (600 ) — Corporate restructuring 9 — 477 Change in deferred tax asset valuation allowance (6 ) (48 ) (20 ) Provision (benefit) for uncertain tax positions 16 38 (139 ) Other, net (12 ) (13 ) (6 ) Provision (benefit) for income taxes $ 309 $ (336 ) $ 557 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the temporary differences and carryforwards that give rise to our net deferred taxes were as follows: December 31, 2018 2017 (in millions) Deferred tax assets: Net operating loss carryforwards $ 389 $ 395 Compensation 118 113 Reserves 18 39 Capital lease obligations 75 78 Deferred income 258 210 Other 42 52 Total gross deferred tax assets 900 887 Less: valuation allowance (399 ) (408 ) Deferred tax assets 501 479 Deferred tax liabilities: Brands (1,123 ) (1,122 ) Amortizing intangible assets (157 ) (177 ) Investment in foreign subsidiaries (29 ) — Deferred tax liabilities (1,309 ) (1,299 ) Net deferred taxes $ (808 ) $ (820 ) |
Summary of Unrecognized Tax Benefits | Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2018 2017 2016 (in millions) Balance at beginning of year $ 283 $ 174 $ 315 Additions for tax positions related to prior years 37 3 77 Additions for tax positions related to the current year 16 126 9 Reductions for tax positions related to prior years (15 ) (10 ) (204 ) Settlements — (9 ) (21 ) Lapse of statute of limitations (3 ) (2 ) (2 ) Currency translation adjustment — 1 — Balance at end of year $ 318 $ 283 $ 174 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The following table presents the projected benefit obligation, fair value of plan assets, funded status and accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2018 2017 2018 2017 2018 2017 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 384 $ 381 $ 443 $ 404 $ 86 $ 81 Service cost — — 3 2 2 1 Interest cost 12 12 9 10 2 1 Prior service cost (1) — — 4 — — — Actuarial loss (gain) (14 ) 16 (39 ) 4 — 3 Settlements and curtailments (2 ) (1 ) — — (1 ) — Effect of foreign exchange rates — — (25 ) 40 (1 ) 4 Benefits paid (23 ) (24 ) (20 ) (17 ) (5 ) (4 ) Benefit obligation at end of year $ 357 $ 384 $ 375 $ 443 $ 83 $ 86 Change in Plan Assets: Fair value of plan assets at beginning of year $ 306 $ 267 $ 386 $ 336 $ 65 $ 58 Actual return on plan assets, net of expenses (23 ) 43 (14 ) 24 (1 ) 6 Employer contributions 16 21 10 9 4 4 Settlements (2 ) (1 ) — — — — Effect of foreign exchange rates — — (22 ) 34 — 1 Benefits paid (23 ) (24 ) (20 ) (17 ) (5 ) (4 ) Fair value of plan assets at end of year 274 306 340 386 63 65 Funded status at end of year (underfunded) (83 ) (78 ) (35 ) (57 ) (20 ) (21 ) Accumulated benefit obligation $ 357 $ 384 $ 375 $ 443 $ 83 $ 86 ____________ (1) Relates to U.K. pension equalization requirements. |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2018 2017 2018 2017 2018 2017 (in millions) Other non-current assets $ — $ — $ — $ — $ 7 $ 9 Other liabilities (83 ) (78 ) (35 ) (57 ) (27 ) (30 ) Net amount recognized $ (83 ) $ (78 ) $ (35 ) $ (57 ) $ (20 ) $ (21 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan International Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 (in millions) Net actuarial loss (gain) $ 22 $ (15 ) $ — $ (14 ) $ 13 $ 41 $ 3 $ — $ 3 Prior service cost (credit) (4 ) (3 ) (3 ) 4 — — — — — Amortization of net loss (3 ) (3 ) (3 ) (4 ) (4 ) (2 ) (1 ) — (1 ) Net amount recognized $ 15 $ (21 ) $ (6 ) $ (14 ) $ 9 $ 39 $ 2 $ — $ 2 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized Over Next Fiscal Year | The estimated unrecognized prior service cost and net loss that will be amortized into net periodic pension cost (credit) during the year ended December 31, 2019 are as follows: Domestic Plan U.K. Plan International Plans (in millions) Unrecognized prior service cost (1) $ 3 $ — $ — Unrecognized net loss (1) 3 4 — Amount unrecognized $ 6 $ 4 $ — |
Schedule of Net Periodic Pension Cost (Credit) | The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 (in millions) Service cost $ 6 $ 8 $ 8 $ 3 $ 2 $ 2 $ 2 $ 2 $ 3 Interest cost 12 12 13 9 10 12 2 2 2 Expected return on plan assets (19 ) (19 ) (19 ) (21 ) (19 ) (22 ) (3 ) (3 ) (3 ) Amortization of prior service cost 3 3 4 — — — — — — Amortization of net loss 3 3 3 4 4 2 1 — — Net periodic pension cost (credit) $ 5 $ 7 $ 9 $ (5 ) $ (3 ) $ (6 ) $ 2 $ 1 $ 2 |
Schedule of Weighted Average Assumptions Used | The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2018 2017 2018 2017 2018 2017 Discount rate 4.3 % 3.6 % 3.1 % 2.6 % 3.3 % 2.4 % Salary inflation N/A N/A 1.8 1.8 2.2 2.2 Pension inflation N/A N/A 3.0 3.0 1.8 1.8 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2018 2017 2016 2018 2017 2016 2018 2017 2016 Discount rate 3.6 % 4.0 % 4.2 % 2.6 % 2.8 % 3.9 % 2.9 % 3.0 % 3.5 % Expected return on plan assets 7.0 7.0 7.3 5.5 5.5 6.5 4.6 4.3 5.4 Salary inflation N/A N/A N/A 1.8 1.9 1.7 2.2 2.1 2.1 Pension inflation N/A N/A N/A 3.0 3.1 2.8 1.8 1.7 1.6 |
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: December 31, 2018 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 34 $ 11 Equity funds — 33 2 Bond funds — 39 — Alternative investments — 140 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 44 — Common collective trusts 274 — 40 Other — 50 — $ 274 $ 340 $ 63 December 31, 2017 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ — $ 11 Level 2 Equity funds — — 6 Bond funds — — 5 Net asset value (1) Common collective trusts 306 386 43 $ 306 $ 386 $ 65 ____________ (1) Certain investments are measured at net asset value per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. |
Schedule of Expected Benefit Payments | As of December 31, 2018 , 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) 2019 $ 35 $ 19 $ 11 2020 27 19 6 2021 27 20 5 2022 26 20 5 2023 26 20 5 2024-2028 121 107 24 $ 262 $ 205 $ 56 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 (in millions, except per share data) Number of shares granted 0.9 1.5 1.2 Weighted average grant date fair value per share $ 79.31 $ 58.80 $ 59.73 Aggregate intrinsic value of shares vested $ 123 $ 78 $ 40 |
Schedule of Restricted Stock Units Activity | The following table summarizes the activity of our RSUs during the year ended December 31, 2018 : Number of Shares Weighted Average Grant Date Fair Value per Share (in millions) Outstanding as of December 31, 2017 2.8 $ 51.44 Granted 0.9 79.31 Vested (1.5 ) 49.56 Forfeited (0.2 ) 56.09 Outstanding as of December 31, 2018 2.0 64.88 |
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, 2018 2017 2016 (in millions, except per share data) Number of options granted 0.6 0.7 0.5 Weighted average exercise price per share $ 79.36 $ 58.40 $ 58.83 Weighted average grant date fair value per share $ 23.72 $ 13.96 $ 16.41 |
Schedule of Stock Options Valuation Assumptions | The weighted average grant date fair value per share of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2018 2017 2016 Expected volatility (1) 27.91 % 24.00 % 32.00 % Dividend yield (2) 0.74 % 0.92% - 1.03% 1.43 % Risk-free rate (3) 2.73 % 1.93% - 2.03% 1.36 % Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price. (2) For the year ended December 31, 2018, estimated based on the quarterly dividend and the three-month average stock price at the grant date; for the years ended December 31, 2017 and 2016, estimated based on the expected annualized dividend payment at the grant date. (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 year ended December 31, 2018 : Number of Shares Weighted Average Exercise Price per Share (in millions) Outstanding as of December 31, 2017 2.0 $ 51.24 Granted 0.6 79.36 Exercised (0.2 ) 50.15 Outstanding as of December 31, 2018 (1) 2.4 58.50 Exercisable as of December 31, 2018 (2) 1.1 50.07 ____________ (1) The aggregate intrinsic value was $36 million and the weighted average remaining contractual term was 8 years. (2) The aggregate intrinsic value was $25 million and the weighted average remaining contractual term was 7 years |
Schedule Performance Shares Achievement Percentages | We determined that the performance conditions for performance shares issued in 2018 and 2017 are probable of achievement and, as of December 31, 2018 , we recognized compensation expense related to these awards based on the following anticipated achievement percentages: EBITDA CAGR FCF CAGR 2017 performance shares 200 % 200 % 2018 performance shares 150 % 150 % |
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, 2018 2017 2016 (in millions, except per share data) EBITDA CAGR: Number of shares granted 0.2 0.2 0.3 Weighted average grant date fair value per share $ 79.36 $ 58.40 $ 58.83 Aggregate intrinsic value of shares vested $ — $ — $ 12 FCF CAGR: Number of shares granted 0.2 0.2 N/A Weighted average grant date fair value per share $ 79.36 $ 58.40 N/A Aggregate intrinsic value of shares vested $ — $ — N/A Relative Shareholder Return: Number of shares granted N/A N/A 0.3 Weighted average grant date fair value per share N/A N/A $ 62.43 Aggregate intrinsic value of shares vested N/A N/A $ 16 |
Schedule of Performance Shares Activity | The following table summarizes the activity of our performance shares during the year ended December 31, 2018 : EBITDA CAGR FCF CAGR Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share (in millions) (in millions) Outstanding as of December 31, 2017 0.2 $ 58.41 0.2 $ 58.41 Granted 0.2 79.36 0.2 79.36 Outstanding as of December 31, 2018 0.4 69.53 0.4 69.53 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings (loss) per share ("EPS"). Year Ended December 31, 2018 2017 2016 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ 764 $ 1,084 $ (27 ) Denominator: Weighted average shares outstanding 302 324 329 Basic EPS $ 2.53 $ 3.34 $ (0.08 ) Diluted EPS: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ 764 $ 1,084 $ (27 ) Denominator: Weighted average shares outstanding 305 327 329 Diluted EPS $ 2.50 $ 3.32 $ (0.08 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2015 $ (580 ) $ (194 ) $ (10 ) $ (784 ) Other comprehensive loss before reclassifications (157 ) (63 ) (9 ) (229 ) Amounts reclassified from accumulated other comprehensive loss (1 ) 6 7 12 Net current period other comprehensive loss (158 ) (57 ) (2 ) (217 ) Balance as of December 31, 2016 (738 ) (251 ) (12 ) (1,001 ) Other comprehensive income (loss) before reclassifications 161 15 (4 ) 172 Amounts reclassified from accumulated other comprehensive loss 1 7 17 25 Net current period other comprehensive income 162 22 13 197 Spin-offs of Park and HGV 63 — — 63 Balance as of December 31, 2017 (513 ) (229 ) 1 (741 ) Other comprehensive income (loss) before reclassifications (70 ) (18 ) 17 (71 ) Amounts reclassified from accumulated other comprehensive loss — 9 5 14 Net current period other comprehensive income (loss) (70 ) (9 ) 22 (57 ) Cumulative effect of the adoption of ASU 2018-02 38 (22 ) — 16 Balance as of December 31, 2018 $ (545 ) $ (260 ) $ 23 $ (782 ) ____________ (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Reclassification Out of Accumulated Other Comprehensive Loss | The following table presents additional information about reclassifications out of accumulated other comprehensive loss (amounts in parentheses indicate a loss in our consolidated statements of operations): Year Ended December 31, 2018 2017 2016 (in millions) Currency translation adjustment: Sale or liquidation of investment in foreign entity (1) $ — $ (2 ) $ — Gains on net investment hedges (1) — 1 1 Total currency translation adjustment reclassifications for the period, net of taxes — (1 ) 1 Pension liability adjustment: Amortization of prior service cost (2) (3 ) (3 ) (4 ) Amortization of net loss (2) (8 ) (7 ) (5 ) Tax benefit (3) 2 3 3 Total pension liability adjustment reclassifications for the period, net of taxes (9 ) (7 ) (6 ) Cash flow hedge adjustment: Dedesignated interest rate swaps (4) (6 ) (26 ) (12 ) Tax benefit (3) 1 9 5 Total cash flow hedge adjustment reclassifications for the period, net of taxes (5 ) (17 ) (7 ) Total reclassifications for the period, net of taxes $ (14 ) $ (25 ) $ (12 ) ____________ (1) Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. The related tax benefits for the years ended December 31, 2017 and 2016 were less than $1 million and were reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (2) Reclassified out of accumulated other comprehensive loss to other non-operating income, net in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). See Note 15 : " Employee Benefit Plans " for additional information. (3) Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (4) Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statements of operations. See Note 11 : " Derivative Instruments and Hedging Activities " for additional information. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segment Amounts to Consolidated Amounts | The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2018 2017 2016 (in millions) Franchise and licensing fees $ 1,537 $ 1,326 $ 1,095 Base and other management fees (1) 385 379 284 Incentive management fees 235 222 142 Management and franchise 2,157 1,927 1,521 Ownership 1,484 1,432 1,434 Segment revenues 3,641 3,359 2,955 Amortization of contract acquisition costs (27 ) (17 ) (16 ) Other revenues 98 105 82 Direct reimbursements from managed and franchised properties (2) 2,881 2,572 1,644 Indirect reimbursements from managed and franchised properties (2) 2,357 2,155 1,953 Intersegment fees elimination (1) (44 ) (43 ) (42 ) Total revenues $ 8,906 $ 8,131 $ 6,576 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our consolidated statements of operations. |
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: Year Ended December 31, 2018 2017 2016 (in millions) Management and franchise (1) $ 2,157 $ 1,927 $ 1,521 Ownership (1) 108 120 113 Segment operating income 2,265 2,047 1,634 Amortization of contract acquisition costs (27 ) (17 ) (16 ) Other revenues, less other expenses 47 49 16 Net other expenses from managed and franchised properties (85 ) (172 ) (12 ) Depreciation and amortization (325 ) (336 ) (353 ) General and administrative (443 ) (439 ) (409 ) Gain on sales of assets, net — — 8 Operating income 1,432 1,132 868 Interest expense (371 ) (351 ) (334 ) Gain (loss) on foreign currency transactions (11 ) 3 (16 ) Loss on debt extinguishment — (60 ) — Other non-operating income, net 28 29 22 Income from continuing operations before income taxes $ 1,078 $ 753 $ 540 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Schedule of Assets by Segment | The following table presents total assets for our reportable segments, reconciled to consolidated amounts: December 31, 2018 2017 (in millions) Management and franchise $ 11,362 $ 11,505 Ownership 927 964 Corporate and other 1,706 1,759 $ 13,995 $ 14,228 |
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: Year Ended December 31, 2018 2017 2016 (in millions) Ownership $ 42 $ 32 $ 45 Corporate and other 30 26 17 $ 72 $ 58 $ 62 |
Revenues by Country | Total revenues by country were as follows: Year Ended December 31, 2018 2017 2016 (in millions) U.S. $ 6,848 $ 6,046 $ 4,524 United Kingdom 545 544 942 All other 1,513 1,541 1,110 $ 8,906 $ 8,131 $ 6,576 |
Property and Equipment, Net by Country | Property and equipment, net by country was as follows: December 31, 2018 2017 (in millions) U.S. $ 109 $ 105 Japan 106 94 United Kingdom 75 82 Germany 40 36 All other 37 36 $ 367 $ 353 |
Condensed Consolidating Guara_2
Condensed Consolidating Guarantor Financial Information (Tables) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |||
Condensed Balance Sheets | The following tables present the condensed consolidating financial information as of December 31, 2018 and 2017 and for the years ended December 31, 2018 , 2017 and 2016 , for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 17 $ 383 $ — $ 403 Restricted cash and cash equivalents — — 34 15 32 — 81 Accounts receivable, net — — 10 735 405 — 1,150 Intercompany receivables — — — — 40 (40 ) — Prepaid expenses — — 52 37 80 (9 ) 160 Income taxes receivable — — — 23 — (3 ) 20 Other — 1 1 13 154 — 169 Total current assets — 1 100 840 1,094 (52 ) 1,983 Intangibles and Other Assets: Investments in subsidiaries 557 5,131 7,930 557 — (14,175 ) — Goodwill — — — 3,824 1,336 — 5,160 Brands — — — 4,404 465 — 4,869 Management and franchise contracts, net — — — 556 316 — 872 Other intangible assets, net — — — 287 128 — 415 Property and equipment, net — — 27 65 275 — 367 Deferred income tax assets 4 — 94 — 90 (98 ) 90 Other — 23 33 22 161 — 239 Total intangibles and other assets 561 5,154 8,084 9,715 2,771 (14,273 ) 12,012 TOTAL ASSETS $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325 ) $ 13,995 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 10 $ 19 $ 229 $ 529 $ 743 $ — $ 1,530 Current portion of deferred revenues — — 106 239 14 (9 ) 350 Intercompany payables — — 40 — — (40 ) — Current maturities of long-term debt — — — — 16 — 16 Income taxes payable — — — — 22 (3 ) 19 Current portion of liability for guest loyalty program — — — 700 — — 700 Total current liabilities 10 19 375 1,468 795 (52 ) 2,615 Long-term debt — 4,573 2,467 — 226 — 7,266 Deferred revenues — — — 762 64 — 826 Deferred income tax liabilities — 6 — 962 28 (98 ) 898 Liability for guest loyalty program — — — 969 — — 969 Other — — 211 93 559 — 863 Total liabilities 10 4,598 3,053 4,254 1,672 (150 ) 13,437 Equity: Total Hilton stockholders' equity 551 557 5,131 6,301 2,186 (14,175 ) 551 Noncontrolling interests — — — — 7 — 7 Total equity 551 557 5,131 6,301 2,193 (14,175 ) 558 TOTAL LIABILITIES AND EQUITY $ 561 $ 5,155 $ 8,184 $ 10,555 $ 3,865 $ (14,325 ) $ 13,995 | December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 2 $ 18 $ 550 $ — $ 570 Restricted cash and cash equivalents — — 61 10 29 — 100 Accounts receivable, net — — 18 712 275 — 1,005 Intercompany receivables — — — — 40 (40 ) — Prepaid expenses — — 25 24 84 (6 ) 127 Income taxes receivable — — — 60 — (24 ) 36 Other — — 1 13 155 — 169 Total current assets — — 107 837 1,133 (70 ) 2,007 Intangibles and Other Assets: Investments in subsidiaries 1,697 7,067 8,326 1,697 — (18,787 ) — Goodwill — — — 3,824 1,366 — 5,190 Brands — — — 4,405 485 — 4,890 Management and franchise contracts, net — — 2 645 306 — 953 Other intangible assets, net — — 1 283 149 — 433 Property and equipment, net — — 20 67 266 — 353 Deferred income tax assets 6 — 104 — 127 (126 ) 111 Other — 20 32 67 172 — 291 Total intangibles and other assets 1,703 7,087 8,485 10,988 2,871 (18,913 ) 12,221 TOTAL ASSETS $ 1,703 $ 7,087 $ 8,592 $ 11,825 $ 4,004 $ (18,983 ) $ 14,228 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 15 $ 20 $ 184 $ 576 $ 624 $ (3 ) $ 1,416 Current portion of deferred revenues — — 90 266 13 (3 ) 366 Intercompany payables — — 40 — — (40 ) — Current maturities of long-term debt — 32 — — 14 — 46 Income taxes payable — — — — 36 (24 ) 12 Current portion of liability for guest loyalty program — — — 622 — — 622 Total current liabilities 15 52 314 1,464 687 (70 ) 2,462 Long-term debt — 5,333 983 — 240 — 6,556 Deferred revenues — — — 770 59 — 829 Deferred income tax liabilities — 5 — 1,052 — (126 ) 931 Liability for guest loyalty program — — — 839 — — 839 Other — — 228 64 628 — 920 Total liabilities 15 5,390 1,525 4,189 1,614 (196 ) 12,537 Equity: Total Hilton stockholders' equity 1,688 1,697 7,067 7,636 2,387 (18,787 ) 1,688 Noncontrolling interests — — — — 3 — 3 Total equity 1,688 1,697 7,067 7,636 2,390 (18,787 ) 1,691 TOTAL LIABILITIES AND EQUITY $ 1,703 $ 7,087 $ 8,592 $ 11,825 $ 4,004 $ (18,983 ) $ 14,228 | |
Condensed Statements of Income and Comprehensive Income | Year Ended December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 227 $ 1,182 $ 139 $ (18 ) $ 1,530 Base and other management fees — — 1 205 115 — 321 Incentive management fees — — — 78 157 — 235 Owned and leased hotels — — — — 1,484 — 1,484 Other revenues — — 6 81 11 — 98 — — 234 1,546 1,906 (18 ) 3,668 Other revenues from managed and franchised properties — — 245 4,376 617 — 5,238 Total revenues — — 479 5,922 2,523 (18 ) 8,906 Expenses Owned and leased hotels — — — — 1,332 — 1,332 Depreciation and amortization — — 6 237 82 — 325 General and administrative — — 323 — 130 (10 ) 443 Other expenses — — 7 22 30 (8 ) 51 — — 336 259 1,574 (18 ) 2,151 Other expenses from managed and franchised properties — — 236 4,466 621 — 5,323 Total expenses — — 572 4,725 2,195 (18 ) 7,474 Operating income (loss) — — (93 ) 1,197 328 — 1,432 Interest expense — (227 ) (106 ) — (38 ) — (371 ) Gain (loss) on foreign currency transactions — — 4 84 (99 ) — (11 ) Other non-operating income (loss), net — (9 ) 3 16 18 — 28 Income (loss) before income taxes and equity in earnings from subsidiaries — (236 ) (192 ) 1,297 209 — 1,078 Income tax benefit (expense) — 57 39 (309 ) (96 ) — (309 ) Income (loss) before equity in earnings from subsidiaries — (179 ) (153 ) 988 113 — 769 Equity in earnings from subsidiaries 764 943 1,096 764 — (3,567 ) — Net income 764 764 943 1,752 113 (3,567 ) 769 Net income attributable to noncontrolling interests — — — — (5 ) — (5 ) Net income attributable to Hilton stockholders $ 764 $ 764 $ 943 $ 1,752 $ 108 $ (3,567 ) $ 764 Comprehensive income $ 707 $ 784 $ 932 $ 1,751 $ 48 $ (3,510 ) $ 712 Comprehensive income attributable to noncontrolling interests — — — — (5 ) — (5 ) Comprehensive income attributable to Hilton stockholders $ 707 $ 784 $ 932 $ 1,751 $ 43 $ (3,510 ) $ 707 | Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 143 $ 1,077 $ 118 $ (17 ) $ 1,321 Base and other management fees — — 1 195 128 — 324 Incentive management fees — — — 76 146 — 222 Owned and leased hotels — — — — 1,432 — 1,432 Other revenues — — 31 70 11 (7 ) 105 — — 175 1,418 1,835 (24 ) 3,404 Other revenues from managed and franchised properties — — 159 3,986 582 — 4,727 Total revenues — — 334 5,404 2,417 (24 ) 8,131 Expenses Owned and leased hotels — — — — 1,269 — 1,269 Depreciation and amortization — — 5 242 89 — 336 General and administrative — — 327 — 118 (6 ) 439 Other expenses — — 17 29 27 (17 ) 56 — — 349 271 1,503 (23 ) 2,100 Other expenses from managed and franchised properties — — 147 4,147 605 — 4,899 Total expenses — — 496 4,418 2,108 (23 ) 6,999 Gain (loss) on sales of assets, net — — — (1 ) 1 — — Operating income (loss) — — (162 ) 985 310 (1 ) 1,132 Interest expense — (244 ) (61 ) — (47 ) 1 (351 ) Gain (loss) on foreign currency transactions — — 10 124 (131 ) — 3 Loss on debt extinguishment — (60 ) — — — — (60 ) Other non-operating income (loss), net — (3 ) 4 7 21 — 29 Income (loss) before income taxes and equity in earnings from subsidiaries — (307 ) (209 ) 1,116 153 — 753 Income tax benefit (expense) (3 ) 122 26 89 102 — 336 Income (loss) before equity in earnings from subsidiaries (3 ) (185 ) (183 ) 1,205 255 — 1,089 Equity in earnings from subsidiaries 1,087 1,272 1,455 1,087 — (4,901 ) — Net income 1,084 1,087 1,272 2,292 255 (4,901 ) 1,089 Net income attributable to noncontrolling interests — — — — (5 ) — (5 ) Net income attributable to Hilton stockholders $ 1,084 $ 1,087 $ 1,272 $ 2,292 $ 250 $ (4,901 ) $ 1,084 Comprehensive income $ 1,281 $ 1,101 $ 1,288 $ 2,295 $ 419 $ (5,098 ) $ 1,286 Comprehensive income attributable to noncontrolling interests — — — — (5 ) — (5 ) Comprehensive income attributable to Hilton stockholders $ 1,281 $ 1,101 $ 1,288 $ 2,295 $ 414 $ (5,098 ) $ 1,281 | Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees $ — $ — $ 21 $ 974 $ 106 $ (10 ) $ 1,091 Base and other management fees — — — 122 108 — 230 Incentive management fees — — — 16 126 — 142 Owned and leased hotels — — — — 1,434 — 1,434 Other revenues — — 10 61 11 — 82 — — 31 1,173 1,785 (10 ) 2,979 Other revenues from managed and franchised properties — — 32 3,053 512 — 3,597 Total revenues — — 63 4,226 2,297 (10 ) 6,576 Expenses Owned and leased hotels — — — — 1,279 — 1,279 Depreciation and amortization — — 1 266 86 — 353 General and administrative — — 90 203 116 — 409 Other expenses — — 1 31 44 (10 ) 66 — — 92 500 1,525 (10 ) 2,107 Other expenses from managed and franchised properties — — 32 3,083 494 — 3,609 Total expenses — — 124 3,583 2,019 (10 ) 5,716 Gain on sales of assets, net — — — — 8 — 8 Operating income (loss) — — (61 ) 643 286 — 868 Interest expense — (261 ) (14 ) (12 ) (47 ) — (334 ) Gain (loss) on foreign currency transactions — — 11 (150 ) 123 — (16 ) Other non-operating income, net — 1 1 7 13 — 22 Income (loss) from continuing operations before income taxes and equity in losses from subsidiaries — (260 ) (63 ) 488 375 — 540 Income tax benefit (expense) 193 100 26 (297 ) (579 ) — (557 ) Income (loss) from continuing operations before equity in losses from subsidiaries 193 (160 ) (37 ) 191 (204 ) — (17 ) Equity in losses from subsidiaries (220 ) (60 ) (23 ) (220 ) — 523 — Loss from continuing operations, net of taxes (27 ) (220 ) (60 ) (29 ) (204 ) 523 (17 ) Income from discontinued operations, net of taxes 365 365 365 426 375 (1,525 ) 371 Net income 338 145 305 397 171 (1,002 ) 354 Net income attributable to noncontrolling interests — — — — (16 ) — (16 ) Net income attributable to Hilton stockholders $ 338 $ 145 $ 305 $ 397 $ 155 $ (1,002 ) $ 338 Comprehensive income $ 121 $ 143 $ 310 $ 326 $ 21 $ (785 ) $ 136 Comprehensive income attributable to noncontrolling interests — — — — (15 ) — (15 ) Comprehensive income attributable to Hilton stockholders $ 121 $ 143 $ 310 $ 326 $ 6 $ (785 ) $ 121 |
Condensed Statements of Cash Flows | Year Ended December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (185 ) $ (8 ) $ 1,267 $ 181 $ — $ 1,255 Investing Activities: Capital expenditures for property and equipment — — (9 ) (7 ) (56 ) — (72 ) Payments received on other financing receivables — — — 49 1 — 50 Capitalized software costs — — — (87 ) — — (87 ) Other — — — (6 ) (16 ) — (22 ) Net cash used in investing activities — — (9 ) (51 ) (71 ) — (131 ) Financing Activities: Borrowings — 175 1,500 — 1 — 1,676 Repayment of debt — (985 ) — — (20 ) — (1,005 ) Debt issuance costs — — (21 ) — — — (21 ) Intercompany transfers 1,902 995 (1,444 ) (1,209 ) (244 ) — — Dividends paid (181 ) — — — — — (181 ) Repurchases of common stock (1,721 ) — — — — — (1,721 ) Distributions to noncontrolling interests — — — — (1 ) — (1 ) Tax withholdings on share-based compensation — — (44 ) — — — (44 ) Acquisition of noncontrolling interest — — — (3 ) — — (3 ) Net cash provided by (used in) financing activities — 185 (9 ) (1,212 ) (264 ) — (1,300 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (10 ) — (10 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — (26 ) 4 (164 ) — (186 ) Cash, restricted cash and cash equivalents, beginning of period — — 63 28 579 — 670 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 37 $ 32 $ 415 $ — $ 484 | Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (113 ) $ (103 ) $ 950 $ 285 $ (170 ) $ 849 Investing Activities: Capital expenditures for property and equipment — — (12 ) (12 ) (34 ) — (58 ) Payments received on other financing receivables — — — 7 — — 7 Capitalized software costs — — — (75 ) — — (75 ) Other — (13 ) — (8 ) 3 (3 ) (21 ) Net cash used in investing activities — (13 ) (12 ) (88 ) (31 ) (3 ) (147 ) Financing Activities: Borrowings — 1,822 — — 2 — 1,824 Repayment of debt — (1,852 ) — — (8 ) — (1,860 ) Debt issuance costs and redemption premium — (69 ) — — — — (69 ) Repayment of intercompany borrowings — — (3 ) — — 3 — Intercompany transfers 1,086 225 122 (865 ) (568 ) — — Dividends paid (195 ) — — — — — (195 ) Intercompany dividends — — — — (170 ) 170 — Cash transferred in spin-offs of Park and HGV — — — — (501 ) — (501 ) Repurchases of common stock (891 ) — — — — — (891 ) Distributions to noncontrolling interests — — — — (1 ) — (1 ) Tax withholdings on share-based compensation — — (31 ) — — — (31 ) Net cash provided by (used in) financing activities — 126 88 (865 ) (1,246 ) 173 (1,724 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — 8 — 8 Net decrease in cash, restricted cash and cash equivalents — — (27 ) (3 ) (984 ) — (1,014 ) 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 $ — $ — $ 63 $ 28 $ 579 $ — $ 670 | 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 ) $ — $ 866 $ 1,086 $ (605 ) $ 1,310 Investing Activities: Capital expenditures for property and equipment — — — (9 ) (308 ) — (317 ) Payments received on other financing receivables — — — 2 1 — 3 Issuance of intercompany receivables — — — (192 ) (42 ) 234 — Payments received on intercompany receivables — — — 192 — (192 ) — Capitalized software costs — — — (73 ) (8 ) — (81 ) Other — (6 ) — (37 ) 15 — (28 ) Net cash used in investing activities — (6 ) — (117 ) (342 ) 42 (423 ) 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 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure (unaudited) [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 fairly present our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,074 $ 2,291 $ 2,253 $ 2,288 $ 8,906 Operating income 279 406 385 362 1,432 Net income 163 217 164 225 769 Net income attributable to Hilton stockholders 161 217 162 224 764 Basic earnings per share (1) $ 0.51 $ 0.72 $ 0.55 $ 0.76 $ 2.53 Diluted earnings per share (1) $ 0.51 $ 0.71 $ 0.54 $ 0.75 $ 2.50 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 1,896 $ 2,076 $ 2,091 $ 2,068 $ 8,131 Operating income 217 324 332 259 1,132 Net income 48 151 160 730 1,089 Net income attributable to Hilton stockholders 47 150 158 729 1,084 Basic earnings per share (1) $ 0.14 $ 0.46 $ 0.49 $ 2.29 $ 3.34 Diluted earnings per share (1) $ 0.14 $ 0.46 $ 0.49 $ 2.27 $ 3.32 ____________ (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 (Details)
Organization (Details) | Dec. 31, 2018RoomCountryHotel | Mar. 15, 2017Rateshares |
Organization and basis of presentation [Line Items] | ||
Number of hotel and resort properties | Hotel | 5,685 | |
Number of hotel and resort rooms | Room | 912,960 | |
Number of countries and territories | Country | 113 | |
HNA Tourism Group Co., Ltd. [member] | ||
Organization and basis of presentation [Line Items] | ||
Common stock acquired | shares | 82,500,000 | |
HNA Tourism Group Co., Ltd. [member] | ||
Organization and basis of presentation [Line Items] | ||
Common stock ownership percentage | Rate | 25.00% |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2016 | Jan. 01, 2016 | |
Accounting Policies [Line Items] | ||||
Ownership percentage of voting shares of a company at or above which VIEs are consolidated | 50.00% | |||
Accounting standards update 2014-09 | ||||
Accounting Policies [Line Items] | ||||
Cumulative effect of the adoption of ASU | $ 212 | $ 212 | ||
Accounting standards update 2018-02 | ||||
Accounting Policies [Line Items] | ||||
Cumulative effect of the adoption of ASU | $ 0 | |||
Stock options [member] | ||||
Accounting Policies [Line Items] | ||||
Vesting period | 3 years | |||
Expiration period, options | 10 years | |||
Performance shares [member] | ||||
Accounting Policies [Line Items] | ||||
Vesting period | 3 years | |||
Vesting rights | zero percent to 200 percent | |||
EBITDA CAGR [member] | ||||
Accounting Policies [Line Items] | ||||
Vesting rights, percentage | 50.00% | |||
Free cash flow CAGR [member] | ||||
Accounting Policies [Line Items] | ||||
Vesting rights, percentage | 50.00% | |||
Minimum [member] | Restricted stock units (RSUs) [member] | ||||
Accounting Policies [Line Items] | ||||
Vesting period | 2 years | |||
Minimum [member] | Building and building improvements [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life | 8 years | |||
Minimum [member] | Furniture and equipment [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life | 3 years | |||
Minimum [member] | Computer equipment [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life | 3 years | |||
Maximum [member] | Restricted stock units (RSUs) [member] | ||||
Accounting Policies [Line Items] | ||||
Vesting period | 3 years | |||
Maximum [member] | Building and building improvements [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life | 40 years | |||
Maximum [member] | Furniture and equipment [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life | 8 years | |||
Maximum [member] | Computer equipment [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life | 5 years | |||
Management contracts [member] | Minimum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 13 years | |||
Management contracts [member] | Maximum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 16 years | |||
Management contract acquisition costs [member] | Minimum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 20 years | |||
Management contract acquisition costs [member] | Maximum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 30 years | |||
Franchise contracts [member] | Minimum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 12 years | |||
Franchise contracts [member] | Maximum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 13 years | |||
Franchise contract acquisition costs [member] | Minimum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 10 years | |||
Franchise contract acquisition costs [member] | Maximum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 20 years | |||
Leases [member] | Minimum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 12 years | |||
Leases [member] | Maximum [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 35 years | |||
Hilton Honors intangible [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 16 years | |||
Capitalized software [member] | ||||
Accounting Policies [Line Items] | ||||
Useful life, intangibles | 3 years | |||
Accumulated other comprehensive loss | Accounting standards update 2018-02 | ||||
Accounting Policies [Line Items] | ||||
Cumulative effect of the adoption of ASU | $ 16 | |||
Assets [member] | Minimum [member] | Accounting standards update 2016-02 | ||||
Accounting Policies [Line Items] | ||||
Estimated effect of adoption of ASU | $ 900 | |||
Assets [member] | Maximum [member] | Accounting standards update 2016-02 | ||||
Accounting Policies [Line Items] | ||||
Estimated effect of adoption of ASU | 1,100 | |||
Liability [member] | Minimum [member] | Accounting standards update 2016-02 | ||||
Accounting Policies [Line Items] | ||||
Estimated effect of adoption of ASU | 1,200 | |||
Liability [member] | Maximum [member] | Accounting standards update 2016-02 | ||||
Accounting Policies [Line Items] | ||||
Estimated effect of adoption of ASU | $ 1,400 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Prior Period Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Accounts receivable, net | $ 1,150 | $ 1,005 | $ 1,150 | $ 1,005 | |||||||||||||||||||
Prepaid expenses | 160 | 127 | 160 | 127 | |||||||||||||||||||
Other current assets | 169 | 169 | 169 | 169 | |||||||||||||||||||
Management and franchise contracts, net | 872 | 953 | 872 | 953 | |||||||||||||||||||
Deferred income tax assets | 90 | 111 | 90 | 111 | |||||||||||||||||||
Other non-current assets | 239 | 291 | 239 | 291 | |||||||||||||||||||
Total assets | 13,995 | 14,228 | 13,995 | 14,228 | |||||||||||||||||||
Accounts payable, accrued expenses and other | 1,530 | 1,416 | 1,530 | 1,416 | |||||||||||||||||||
Current portion of deferred revenues | 350 | 366 | 350 | 366 | |||||||||||||||||||
Current portion of liability for guest loyalty program | 700 | 622 | 700 | 622 | |||||||||||||||||||
Deferred revenues | 826 | 829 | 826 | 829 | |||||||||||||||||||
Deferred income tax liabilities | 898 | 931 | 898 | 931 | |||||||||||||||||||
Other long-term liabilities | 863 | 920 | 863 | 920 | |||||||||||||||||||
Total liabilities | 13,437 | 12,537 | 13,437 | 12,537 | |||||||||||||||||||
Accumulated deficit | (6,417) | (6,981) | (6,417) | (6,981) | |||||||||||||||||||
Accumulated other comprehensive loss | (782) | (741) | (782) | (741) | |||||||||||||||||||
Total equity | 558 | 1,691 | 558 | 1,691 | $ 5,627 | $ 5,951 | |||||||||||||||||
Total liabilities and equity | 13,995 | 14,228 | 13,995 | 14,228 | |||||||||||||||||||
Revenues | 2,288 | $ 2,253 | $ 2,291 | $ 2,074 | 2,068 | $ 2,091 | $ 2,076 | $ 1,896 | 8,906 | 8,131 | 6,576 | ||||||||||||
Depreciation and amortization | 336 | 353 | |||||||||||||||||||||
General and administrative | 443 | 439 | 409 | ||||||||||||||||||||
Other expenses | 51 | 56 | 66 | ||||||||||||||||||||
Total expenses excluding reimbursable expenses | 2,151 | 2,100 | 2,107 | ||||||||||||||||||||
Total expenses | 7,474 | 6,999 | 5,716 | ||||||||||||||||||||
Gain on sales of assets, net | 0 | 0 | 8 | ||||||||||||||||||||
Operating income | 362 | 385 | 406 | 279 | 259 | 332 | 324 | 217 | 1,432 | 1,132 | 868 | ||||||||||||
Interest expense | (371) | (351) | (334) | ||||||||||||||||||||
Gain (loss) on foreign currency transactions | (11) | 3 | (16) | ||||||||||||||||||||
Loss on debt extinguishment | 0 | (60) | 0 | ||||||||||||||||||||
Other non-operating income, net | 28 | 29 | 22 | ||||||||||||||||||||
Income from continuing operations before income taxes | 1,078 | 753 | 540 | ||||||||||||||||||||
Income tax benefit (expense) | (309) | 336 | (557) | ||||||||||||||||||||
Income (loss) from continuing operations, net of taxes | 769 | 1,089 | (17) | ||||||||||||||||||||
Income from discontinued operations, net of taxes | 0 | 0 | 371 | ||||||||||||||||||||
Net income | 225 | 164 | 217 | 163 | 730 | 160 | 151 | 48 | 769 | 1,089 | 354 | ||||||||||||
Net income attributable to noncontrolling interests | (5) | (5) | (16) | ||||||||||||||||||||
Net income attributable to Hilton stockholders | $ 224 | $ 162 | $ 217 | $ 161 | $ 729 | $ 158 | $ 150 | $ 47 | $ 764 | $ 1,084 | $ 338 | ||||||||||||
Net income (loss) from continuing operations per share | $ 2.53 | $ 3.34 | $ (0.08) | ||||||||||||||||||||
Net income from discontinued operations per share | 0 | 0 | 1.11 | ||||||||||||||||||||
Net income per share, basic | $ 0.76 | [1] | $ 0.55 | [1] | $ 0.72 | [1] | $ 0.51 | [1] | $ 2.29 | [1] | $ 0.49 | [1] | $ 0.46 | [1] | $ 0.14 | [1] | 2.53 | [1] | 3.34 | [1] | 1.03 | ||
Net income (loss) from continuing operations per share | 2.50 | 3.32 | (0.08) | ||||||||||||||||||||
Net income from discontinued operations per share | 0 | 0 | 1.11 | ||||||||||||||||||||
Net income per share, diluted | $ 0.75 | [1] | $ 0.54 | [1] | $ 0.71 | [1] | $ 0.51 | [1] | $ 2.27 | [1] | $ 0.49 | [1] | $ 0.46 | [1] | $ 0.14 | [1] | $ 2.50 | [1] | $ 3.32 | [1] | $ 1.03 | ||
Previously reported [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Accounts receivable, net | $ 998 | $ 998 | |||||||||||||||||||||
Prepaid expenses | 111 | 111 | |||||||||||||||||||||
Other current assets | 171 | 171 | |||||||||||||||||||||
Management and franchise contracts, net | 909 | 909 | |||||||||||||||||||||
Deferred income tax assets | 113 | 113 | |||||||||||||||||||||
Other non-current assets | 434 | 434 | |||||||||||||||||||||
Total assets | 14,308 | 14,308 | |||||||||||||||||||||
Accounts payable, accrued expenses and other | [2] | 1,487 | 1,487 | ||||||||||||||||||||
Current portion of deferred revenues | [2] | 41 | 41 | ||||||||||||||||||||
Current portion of liability for guest loyalty program | [2] | 622 | 622 | ||||||||||||||||||||
Deferred revenues | 97 | 97 | |||||||||||||||||||||
Deferred income tax liabilities | 1,063 | 1,063 | |||||||||||||||||||||
Other long-term liabilities | 1,470 | 1,470 | |||||||||||||||||||||
Total liabilities | 12,233 | 12,233 | |||||||||||||||||||||
Accumulated deficit | (6,596) | (6,596) | |||||||||||||||||||||
Accumulated other comprehensive loss | (742) | (742) | |||||||||||||||||||||
Total equity | 2,075 | 2,075 | |||||||||||||||||||||
Total liabilities and equity | 14,308 | 14,308 | |||||||||||||||||||||
Revenues | 9,140 | $ 7,382 | |||||||||||||||||||||
Depreciation and amortization | 347 | 364 | |||||||||||||||||||||
General and administrative | 434 | 403 | |||||||||||||||||||||
Other expenses | 56 | 66 | |||||||||||||||||||||
Total expenses excluding reimbursable expenses | 2,123 | 2,128 | |||||||||||||||||||||
Total expenses | 7,768 | 6,438 | |||||||||||||||||||||
Gain on sales of assets, net | 8 | ||||||||||||||||||||||
Operating income | 1,372 | 952 | |||||||||||||||||||||
Interest expense | (408) | (394) | |||||||||||||||||||||
Gain (loss) on foreign currency transactions | 3 | (16) | |||||||||||||||||||||
Loss on debt extinguishment | (60) | ||||||||||||||||||||||
Other non-operating income, net | 23 | 14 | |||||||||||||||||||||
Income from continuing operations before income taxes | 930 | 556 | |||||||||||||||||||||
Income tax benefit (expense) | 334 | (564) | |||||||||||||||||||||
Income (loss) from continuing operations, net of taxes | (8) | ||||||||||||||||||||||
Income from discontinued operations, net of taxes | 372 | ||||||||||||||||||||||
Net income | 1,264 | 364 | |||||||||||||||||||||
Net income attributable to noncontrolling interests | (5) | (16) | |||||||||||||||||||||
Net income attributable to Hilton stockholders | $ 1,259 | $ 348 | |||||||||||||||||||||
Net income (loss) from continuing operations per share | $ (0.05) | ||||||||||||||||||||||
Net income from discontinued operations per share | 1.11 | ||||||||||||||||||||||
Net income per share, basic | $ 3.88 | 1.06 | |||||||||||||||||||||
Net income (loss) from continuing operations per share | (0.05) | ||||||||||||||||||||||
Net income from discontinued operations per share | 1.11 | ||||||||||||||||||||||
Net income per share, diluted | $ 3.85 | $ 1.06 | |||||||||||||||||||||
Accounting standards update 2014-09 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Accounts receivable, net | 7 | $ 7 | |||||||||||||||||||||
Prepaid expenses | 16 | 16 | |||||||||||||||||||||
Other current assets | (2) | (2) | |||||||||||||||||||||
Management and franchise contracts, net | 44 | 44 | |||||||||||||||||||||
Deferred income tax assets | (2) | (2) | |||||||||||||||||||||
Other non-current assets | (143) | (143) | |||||||||||||||||||||
Total assets | (80) | (80) | |||||||||||||||||||||
Accounts payable, accrued expenses and other | (71) | (71) | |||||||||||||||||||||
Current portion of deferred revenues | 325 | 325 | |||||||||||||||||||||
Current portion of liability for guest loyalty program | 0 | 0 | |||||||||||||||||||||
Deferred revenues | 732 | 732 | |||||||||||||||||||||
Deferred income tax liabilities | (132) | (132) | |||||||||||||||||||||
Other long-term liabilities | (550) | (550) | |||||||||||||||||||||
Total liabilities | 304 | 304 | |||||||||||||||||||||
Accumulated deficit | (385) | (385) | |||||||||||||||||||||
Accumulated other comprehensive loss | 1 | 1 | |||||||||||||||||||||
Total equity | (384) | (384) | |||||||||||||||||||||
Total liabilities and equity | (80) | (80) | |||||||||||||||||||||
Revenues | (1,009) | $ (806) | |||||||||||||||||||||
Depreciation and amortization | (11) | (11) | |||||||||||||||||||||
General and administrative | 0 | 0 | |||||||||||||||||||||
Other expenses | 0 | 0 | |||||||||||||||||||||
Total expenses excluding reimbursable expenses | (29) | (29) | |||||||||||||||||||||
Total expenses | (775) | (730) | |||||||||||||||||||||
Gain on sales of assets, net | 0 | ||||||||||||||||||||||
Operating income | (234) | (76) | |||||||||||||||||||||
Interest expense | 57 | 60 | |||||||||||||||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | |||||||||||||||||||||
Loss on debt extinguishment | 0 | ||||||||||||||||||||||
Other non-operating income, net | 0 | 0 | |||||||||||||||||||||
Income from continuing operations before income taxes | (177) | (16) | |||||||||||||||||||||
Income tax benefit (expense) | 2 | 7 | |||||||||||||||||||||
Income (loss) from continuing operations, net of taxes | (9) | ||||||||||||||||||||||
Income from discontinued operations, net of taxes | (1) | ||||||||||||||||||||||
Net income | (175) | (10) | |||||||||||||||||||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||||||||||||||||||
Net income attributable to Hilton stockholders | (175) | (10) | |||||||||||||||||||||
Accounting standards update 2017-07 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Depreciation and amortization | 0 | 0 | |||||||||||||||||||||
General and administrative | 5 | 6 | |||||||||||||||||||||
Other expenses | 0 | 0 | |||||||||||||||||||||
Total expenses excluding reimbursable expenses | 6 | 8 | |||||||||||||||||||||
Total expenses | 6 | 8 | |||||||||||||||||||||
Gain on sales of assets, net | 0 | ||||||||||||||||||||||
Operating income | (6) | (8) | |||||||||||||||||||||
Interest expense | 0 | 0 | |||||||||||||||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | |||||||||||||||||||||
Loss on debt extinguishment | 0 | ||||||||||||||||||||||
Other non-operating income, net | 6 | 8 | |||||||||||||||||||||
Income from continuing operations before income taxes | 0 | 0 | |||||||||||||||||||||
Income tax benefit (expense) | 0 | 0 | |||||||||||||||||||||
Income (loss) from continuing operations, net of taxes | 0 | ||||||||||||||||||||||
Income from discontinued operations, net of taxes | 0 | ||||||||||||||||||||||
Net income | 0 | 0 | |||||||||||||||||||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||||||||||||||||||
Net income attributable to Hilton stockholders | 0 | 0 | |||||||||||||||||||||
Franchise and licensing fees [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | $ 1,530 | 1,321 | 1,091 | ||||||||||||||||||||
Franchise and licensing fees [member] | Previously reported [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 1,382 | 1,154 | |||||||||||||||||||||
Franchise and licensing fees [member] | Accounting standards update 2014-09 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | (61) | (63) | |||||||||||||||||||||
Franchise and licensing fees [member] | Accounting standards update 2017-07 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Base and other management fees [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 321 | 324 | 230 | ||||||||||||||||||||
Base and other management fees [member] | Previously reported [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 336 | 242 | |||||||||||||||||||||
Base and other management fees [member] | Accounting standards update 2014-09 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | (12) | (12) | |||||||||||||||||||||
Base and other management fees [member] | Accounting standards update 2017-07 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Incentive management fees [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 235 | 222 | 142 | ||||||||||||||||||||
Incentive management fees [member] | Previously reported [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 222 | 142 | |||||||||||||||||||||
Incentive management fees [member] | Accounting standards update 2014-09 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Incentive management fees [member] | Accounting standards update 2017-07 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Owned and leased hotels [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 1,484 | 1,432 | 1,434 | ||||||||||||||||||||
Expenses | 1,332 | 1,269 | 1,279 | ||||||||||||||||||||
Owned and leased hotels [member] | Previously reported [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 1,450 | 1,452 | |||||||||||||||||||||
Expenses | 1,286 | 1,295 | |||||||||||||||||||||
Owned and leased hotels [member] | Accounting standards update 2014-09 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | (18) | (18) | |||||||||||||||||||||
Expenses | (18) | (18) | |||||||||||||||||||||
Owned and leased hotels [member] | Accounting standards update 2017-07 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Expenses | 1 | 2 | |||||||||||||||||||||
Other revenues [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 98 | 105 | 82 | ||||||||||||||||||||
Other revenues [member] | Previously reported [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 105 | 82 | |||||||||||||||||||||
Other revenues [member] | Accounting standards update 2014-09 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Other revenues [member] | Accounting standards update 2017-07 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Total revenues excluding reimbursable revenues [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 3,668 | 3,404 | 2,979 | ||||||||||||||||||||
Total revenues excluding reimbursable revenues [member] | Previously reported [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 3,495 | 3,072 | |||||||||||||||||||||
Total revenues excluding reimbursable revenues [member] | Accounting standards update 2014-09 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | (91) | (93) | |||||||||||||||||||||
Total revenues excluding reimbursable revenues [member] | Accounting standards update 2017-07 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Other revenues from managed and franchised properties [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 5,238 | 4,727 | 3,597 | ||||||||||||||||||||
Other revenues from managed and franchised properties [member] | Previously reported [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 5,645 | 4,310 | |||||||||||||||||||||
Other revenues from managed and franchised properties [member] | Accounting standards update 2014-09 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | (918) | (713) | |||||||||||||||||||||
Other revenues from managed and franchised properties [member] | Accounting standards update 2017-07 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Revenues | 0 | 0 | |||||||||||||||||||||
Other expenses from managed and franchised properties [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Expenses | 5,323 | 4,899 | 3,609 | ||||||||||||||||||||
Other expenses from managed and franchised properties [member] | Previously reported [member] | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Expenses | 5,645 | 4,310 | |||||||||||||||||||||
Other expenses from managed and franchised properties [member] | Accounting standards update 2014-09 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Expenses | (746) | (701) | |||||||||||||||||||||
Other expenses from managed and franchised properties [member] | Accounting standards update 2017-07 | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Expenses | 0 | 0 | |||||||||||||||||||||
Accumulated other comprehensive loss | |||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||
Accumulated other comprehensive loss | $ (782) | $ (741) | $ (782) | $ (741) | $ (1,001) | $ (784) | |||||||||||||||||
[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] | The current portion of deferred revenues and current portion of liability for guest loyalty program have been separated from accounts payable, accrued expenses and other in the "As Previously Reported" column to conform with current presentation. |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 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 spin-off companies stock to stockholders | 100.00% | ||
Park and HGV spin-offs [member] | Transition Services Agreement [member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued Operations, period of involvement after disposal | 2 years | ||
HGV spin-off [member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Spin-off company common stock distributed for every ten shares of the Company's common stock | 1 | ||
Common stock to receive for spin-off company common stock | 10 | ||
HGV spin-off [member] | Franchise and licensing fees [member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues from discontinued operations after disposal | $ 98 | $ 87 | |
HGV spin-off [member] | Licensing agreement [member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued Operations, period of involvement after disposal | 100 years | ||
Royalty fee rate | 5.00% | ||
Park spin-off [member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Spin-off company common stock distributed for every five shares of the Company's common stock | 1 | ||
Common stock to receive for spin-off company common stock | 5 | ||
Park spin-off [member] | Management and franchise [member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues from discontinued operations after disposal | 154 | $ 157 | |
Park spin-off [member] | Other revenue from managed and franchised properties [member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues from discontinued operations after disposal | $ 1,167 | $ 1,197 |
Discontinued Operations - Incom
Discontinued Operations - Income Statement Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income from discontinued operations, net of taxes | $ 0 | $ 0 | $ 371 |
Park and HGV spin-offs [member] | Spin-offs [member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total revenues from discontinued operations | 4,236 | ||
Owned and leased hotels | 1,770 | ||
Timeshare | 942 | ||
Depreciation and amortization | 320 | ||
Other expenses | 298 | ||
Total expenses from discontinued operations | 3,330 | ||
Gain on sales of assets, net | 1 | ||
Operating income from discontinued operations | 907 | ||
Non-operating loss, net | (210) | ||
Income from discontinued operations before income taxes | 697 | ||
Income tax expense | (326) | ||
Income from discontinued operations, net of taxes | 371 | ||
Income from discontinued operations attributable to noncontrolling interests, net of taxes | (6) | ||
Income from discontinued operations attributable to Hilton stockholders, net of taxes | $ 365 |
Discontinued Operations - State
Discontinued Operations - Statement of Cash Flow Disclosures (Details) - Park and HGV spin-offs [member] - Spin-offs [member] $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Depreciation and amortization | $ 320 |
Gain on sale of assets, net | (1) |
Capital expenditures for property and equipment | $ (255) |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Balance of contract liabilities | $ 1,060 | $ 1,087 | |||
Cash received in advance not recognized as revenue | [1] | 377 | |||
Revenue recognized | (229) | [1] | $ (132) | $ (211) | |
Other | [2] | (175) | |||
Loyalty Program Revenues [Member] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligation | $ 471 | ||||
Expected timing of satisfaction of performance obligations | 2 years | ||||
Remaining performance obligation | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligation | $ 589 | ||||
[1] | Primarily related to Hilton Honors. | ||||
[2] | Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Additional Information (Details) - Entity | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Number of consolidated variable interest entities | 3 | 3 |
Hotel VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of consolidated variable interest entities | 2 | 2 |
Management company [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of consolidated variable interest entities | 1 | 1 |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 403 | $ 570 | |
Accounts receivable, net | 1,150 | 1,005 | |
Property and equipment, net | 367 | 353 | |
Deferred income tax assets | 90 | 111 | |
Other | 239 | 291 | |
Accounts payable, accrued expenses and other | 1,530 | 1,416 | |
Long-term debt | 7,266 | 6,556 | |
Other | 863 | 920 | |
Consolidated VIEs [member] | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 71 | 73 | |
Accounts receivable, net | 15 | 16 | |
Property and equipment, net | 68 | 57 | |
Deferred income tax assets | 53 | 56 | |
Other | 58 | 57 | |
Accounts payable, accrued expenses and other | 41 | 43 | |
Long-term debt | [1] | 205 | 212 |
Other | 15 | 13 | |
Capital lease obligations | $ 187 | $ 191 | |
[1] | Includes capital lease obligations of $187 million and $191 million as of December 31, 2018 and 2017, respectively. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Goodwill [Line Items] | ||||
Goodwill | $ 5,160 | $ 5,190 | $ 5,218 | |
Spin-off of Park | (91) | |||
Foreign currency translation | (30) | 63 | ||
Ownership [member] | ||||
Goodwill [Line Items] | ||||
Goodwill, gross | 439 | 444 | 856 | |
Accumulated impairment losses | (340) | (340) | (672) | |
Goodwill | [1] | 99 | 104 | 184 |
Gross goodwill, spin-offs of Park and HGV | (423) | |||
Accumulated impairment losses, spin-offs of Park and HGV | 332 | |||
Spin-off of Park | [1] | (91) | ||
Foreign currency translation | [1] | (5) | 11 | |
Management and franchise [member] | ||||
Goodwill [Line Items] | ||||
Goodwill | [2] | 5,061 | 5,086 | $ 5,034 |
Spin-off of Park | 0 | |||
Foreign currency translation | $ (25) | $ 52 | ||
[1] | Amounts 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) $184Spin-off of Park(423) 332 (91)Foreign currency translation11 — 11Balance as of December 31, 2017444 (340) 104Foreign currency translation(5) — (5)Balance as of December 31, 2018$439 $(340) $99 | |||
[2] | There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2018, 2017 and 2016. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | $ 2,861 | $ 2,755 | |
Other intangible assets, gross | 1,167 | 1,265 | |
Management and franchise contracts, accumulated amortization | (1,989) | (1,802) | |
Other intangible assets, accumulated amortization | (752) | (832) | |
Management and franchise contracts, net | 872 | 953 | |
Other intangible assets, net | 415 | 433 | |
Management and franchise contracts recorded at Merger [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | 2,228 | 2,242 | [1] |
Management and franchise contracts, accumulated amortization | (1,873) | (1,716) | [1] |
Management and franchise contracts, net | 355 | 526 | [1] |
Contract acquisition costs [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | 525 | 416 | |
Management and franchise contracts, accumulated amortization | (101) | (74) | |
Management and franchise contracts, net | 424 | 342 | |
Development commissions [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | 108 | 97 | |
Management and franchise contracts, accumulated amortization | (15) | (12) | |
Management and franchise contracts, net | 93 | 85 | |
Leases [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | 288 | 301 | [1] |
Other intangible assets, accumulated amortization | (161) | (153) | [1] |
Other intangible assets, net | 127 | 148 | [1] |
Capitalized software [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | 503 | 585 | |
Other intangible assets, accumulated amortization | (321) | (428) | |
Other intangible assets, net | 182 | 157 | |
Hilton Honors intangible [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | 338 | 341 | [1] |
Other intangible assets, accumulated amortization | (236) | (217) | [1] |
Other intangible assets, net | 102 | 124 | [1] |
Other [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | 38 | 38 | [1] |
Other intangible assets, accumulated amortization | (34) | (34) | [1] |
Other intangible assets, net | $ 4 | $ 4 | [1] |
[1] | Includes intangible assets that were initially recorded at their fair value at the time of the Merger. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization of Amortizing Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Depreciation and amortization [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | [1] | $ 271 | $ 277 | $ 301 |
Depreciation and amortization [member] | Intangible assets recorded at fair value at the time of the Merger [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | 204 | 206 | 208 | |
Depreciation and amortization [member] | Capitalized software [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | 62 | 67 | 87 | |
Franchise and licensing fee and base and other management fee revenues [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 27 | $ 17 | $ 16 | |
[1] | Includes amortization expense that was associated with assets recorded at their fair value at the time of the Merger of $204 million, $206 million and $208 million for the years ended December 31, 2018, 2017 and 2016, respectively, and amortization expense on capitalized software costs of $62 million, $67 million and $87 million, respectively. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule Of Future Amortization (Details) $ in Millions | Dec. 31, 2018USD ($) |
Depreciation and amortization [member] | |
Finite-Lived Intangible Assets [Line Items] | |
2019 | $ 279 |
2020 | 236 |
2021 | 97 |
2022 | 66 |
2023 | 48 |
Thereafter | 137 |
Amortizing intangible assets, net | 863 |
Franchise and licensing fee and base and other management fee revenues [member] | |
Finite-Lived Intangible Assets [Line Items] | |
2019 | 27 |
2020 | 25 |
2021 | 24 |
2022 | 22 |
2023 | 22 |
Thereafter | 304 |
Amortizing intangible assets, net | $ 424 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 12 | $ 12 | |
Buildings and leasehold improvements | [1] | 456 | 428 |
Furniture and equipment | 356 | 346 | |
Construction in progress | 24 | 17 | |
Property and equipment, gross | 848 | 803 | |
Accumulated depreciation | [1] | (481) | (450) |
Property and equipment, net | 367 | 353 | |
Net capital lease assets included in property and equipment | 65 | 68 | |
Accumulated depreciation of capital lease assets included in property and equipment | $ 45 | $ 43 | |
[1] | Buildings and leasehold improvements included $65 million and $68 million of capital lease assets as of December 31, 2018 and 2017, respectively, with associated accumulated amortization of $45 million and $43 million, respectively. |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 54 | $ 59 | $ 52 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |||
Accrued employee compensation and benefits | $ 532 | $ 502 | |
Accounts payable | 283 | 282 | |
Insurance reserves, current | 199 | 189 | |
Other accrued expenses | [1] | 516 | 443 |
Accounts payable, accrued expenses and other | $ 1,530 | $ 1,416 | |
[1] | Includes deposit liabilities related to hotel operations and application fees, taxes, interest and other accrued balances. |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Apr. 01, 2018 | Dec. 31, 2017 | Mar. 01, 2017 | |
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 7,361 | $ 6,683 | |||
Unamortized deferred financing costs and discount | (79) | (81) | |||
Current maturities of long-term debt | [1] | (16) | (46) | ||
Long-term debt | 7,266 | 6,556 | |||
Senior notes due 2024 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,000 | 1,000 | |||
Debt instrument, interest rate, stated percentage | 4.25% | ||||
Senior notes due 2025 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 900 | 900 | |||
Debt instrument, interest rate, stated percentage | 4.625% | 4.625% | |||
Senior notes due 2026 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,500 | 0 | |||
Debt instrument, interest rate, stated percentage | 5.125% | 5.125% | |||
Senior notes due 2027 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 600 | 600 | |||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | |||
Senior secured term loan facility due 2023 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 3,119 | 3,929 | |||
Debt instrument, interest rate, stated percentage | 4.26% | ||||
Capital lease obligations [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 225 | 233 | |||
Debt instrument, weighted average interest rate | 6.43% | ||||
Other debt obligations [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 17 | $ 21 | |||
Debt instrument, weighted average interest rate | 3.08% | ||||
[1] | Balance as of December 31, 2017 is net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Feb. 12, 2019 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 01, 2017 |
Debt Instrument [Line Items] | |||||||
Repurchases of common stock, purchase price | $ 1,721 | $ 891 | |||||
Proceeds from revolving credit facility | $ 150 | ||||||
Senior notes due 2024 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 4.25% | 4.25% | |||||
Senior notes due 2025 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 4.625% | 4.625% | 4.625% | ||||
Senior notes due 2026 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 1,500 | ||||||
Debt instrument, interest rate, stated percentage | 5.125% | 5.125% | 5.125% | ||||
Debt issuance costs, gross | $ 21 | ||||||
Senior notes due 2027 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | 4.875% | ||||
Senior secured term loan facility due 2023 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 4.26% | 4.26% | |||||
Repayments of long-term debt | $ 500 | $ 300 | |||||
Unamortized deferred financing costs and discount | 8 | $ 8 | |||||
Debt instrument, decrease in basis spread on variable rate | 0.25% | ||||||
Debt instrument, basis spread on variable rate | 1.75% | ||||||
Senior notes due 2021 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of long-term debt | $ 1,500 | ||||||
Premium paid to redeem debt instrument | 42 | ||||||
Write off of deferred debt issuance cost | $ 18 | ||||||
Senior secured revolving credit facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 1,000 | 1,000 | |||||
Letters of credit outstanding, amount | 63 | 63 | |||||
Line of credit facility, remaining borrowing capacity | $ 937 | $ 937 | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | ||||||
Other stockholder [member] | |||||||
Debt Instrument [Line Items] | |||||||
Repurchases of common stock, shares | 16,500,000 | ||||||
Repurchases of common stock, purchase price | $ 1,171 | ||||||
Line of credit [member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from revolving credit facility | $ 100 |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2019 | $ 16 | |
2020 | 17 | |
2021 | 18 | |
2022 | 19 | |
2023 | 3,139 | |
Thereafter | 4,152 | |
Long-term debt, gross | $ 7,361 | $ 6,683 |
Other Liabilities - Other Long-
Other Liabilities - Other Long-term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |||
Pension obligations | $ 145 | $ 165 | |
Other long-term tax liabilities | 395 | 397 | |
Deferred employee compensation and benefits | 113 | 117 | |
Insurance reserves | [1] | 146 | 162 |
Other | 64 | 79 | |
Other long-term liabilities | $ 863 | $ 920 | |
[1] | Obligations related to insurance claims are expected to be satisfied, on average, over the next three years. |
Other Liabilities - Additional
Other Liabilities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Insurance claims, satisfied average term | three years |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Designated as hedging instrument | Interest rate swaps | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 16 | $ 11 |
Designated as hedging instrument | Forward contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1 | 0 |
Designated as hedging instrument | Forward contracts | Accounts payable, accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | 1 |
Not designated as hedging instrument | Forward contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1 | 4 |
Not designated as hedging instrument | Forward contracts | Accounts payable, accrued expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 2 | $ 1 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Earnings Effect of Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Designated as hedging instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, ineffective portion and amount excluded from effectiveness testing, net | [1] | $ 0 | $ 0 | $ 0 |
Designated as hedging instrument | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) recognized in OCI | 22 | (5) | (15) | |
Designated as hedging instrument | Interest rate swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) reclassified from accumulated OCI into income | (1) | (16) | (8) | |
Designated as hedging instrument | Forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) recognized in OCI | $ 2 | $ (1) | ||
Designated as hedging instrument | Forward contracts | Franchise fees | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) reclassified from accumulated OCI into income | [2] | less than $1 million | less than $1 million | |
Not designated as hedging instrument | Interest rate swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, loss reclassified from accumulated OCI into income from discontinued cash flow hedges | [3] | $ (5) | $ (10) | (4) |
Not designated as hedging instrument | Interest rate swaps | Other non-operating income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain on interest rate swaps not designated as hedging instruments | [3] | 2 | 4 | |
Not designated as hedging instrument | Forward contracts | Gain (loss) on foreign currency transactions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) recognized on foreign exchange forward contracts not designated as hedging instruments | $ (9) | $ 12 | $ 7 | |
[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, 2018, 2017 and 2016. | |||
[2] | The earnings effect of the Fee Forward Contracts on fee revenues for the years ended December 31, 2018 and 2017 was less than $1 million. | |||
[3] | These amounts relate to the interest rate swaps that we have dedesignated and settled. The amounts recognized in interest expense were reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | May 01, 2018USD ($) | Mar. 01, 2017USD ($)Derivative | Dec. 31, 2016USD ($)Derivative | |
Designated as hedging instrument | Forward contracts | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 98 | |||
Derivative, remaining maturity | 24 months | |||
Not designated as hedging instrument | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Number of interest rate derivatives held | Derivative | 4 | |||
Derivative, notional amount | $ 1,450 | |||
Derivative, swaption interest rate | 1.87% | |||
Not designated as hedging instrument | Forward contracts | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 412 | |||
Interest Rate Swaps Maturing 2022 [Member] | Designated as hedging instrument | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Number of interest rate derivatives entered into | Derivative | 2 | |||
Derivative, maturity date | Mar. 1, 2022 | |||
Interest Rate Swaps Maturing 2022 [Member] | $1.6 billion notional [member] | Designated as hedging instrument | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 1,600 | |||
Derivative, swaption interest rate | 1.98% | |||
Interest Rate Swaps Maturing 2022 [Member] | $750 million notional [member] | Designated as hedging instrument | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 750 | |||
Proceeds received for settlement of interest rate swap | $ 18 | |||
Derivative, swaption interest rate | 2.02% | |||
Interest Rate Swaps Maturing 2023 [Member] | $1.6 billion notional [member] | Designated as hedging instrument | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 1,600 | |||
Derivative, term | March 2022 to March 2023 | |||
Derivative, swaption interest rate | 3.03% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Level 1 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 3,809 | $ 2,575 |
Level 2 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 87 | 284 | |
Restricted cash equivalents | 18 | 12 | |
Level 3 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 3,039 | 3,954 |
Carrying value [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 87 | 284 | |
Restricted cash equivalents | 18 | 12 | |
Long-term debt | [1] | $ 7,040 | $ 6,348 |
[1] | The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rent Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating leases | |
Schedule of Future Lease Payments [Line Items] | |
2019 | $ 206 |
2020 | 191 |
2021 | 166 |
2022 | 134 |
2023 | 119 |
Thereafter | 865 |
Total minimum lease payments | 1,681 |
Capital leases | |
Schedule of Future Lease Payments [Line Items] | |
2019 | 30 |
2020 | 30 |
2021 | 30 |
2022 | 29 |
2023 | 29 |
Thereafter | 164 |
Total minimum lease payments | 312 |
Less: amount representing interest | (87) |
Present value of minimum lease payments | $ 225 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Rent Expense [Abstract] | |||
Fixed rent | $ 225 | $ 183 | $ 224 |
Contingent rent | 142 | 101 | 98 |
Lease expense for operating leases | $ 367 | $ 284 | $ 322 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2018HotelEntity | Dec. 31, 2017HotelEntity | |
Additional Information [Abstract] | ||
Number of hotels under operating leases | 58 | 59 |
Number of hotels under capital leases | 4 | 4 |
Number of hotels under capital leases which were the liabilities of consolidated VIEs and were non-recourse to us | Entity | 2 | 2 |
Hotel leases starting expiration date | 2019 | |
Hotel leases ending expiration date | 2067 | |
Date before which the majority of our hotel leases expire | 2029 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. income before tax | $ 881 | $ 632 | $ 906 |
Foreign income (loss) before tax | 197 | 121 | (366) |
Income from continuing operations before income taxes | $ 1,078 | $ 753 | $ 540 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 210 | $ 239 | $ 441 |
State | 53 | 59 | 143 |
Foreign | 60 | 95 | 70 |
Total current | 323 | 393 | 654 |
Federal | (52) | (667) | (123) |
State | (14) | (35) | 45 |
Foreign | 52 | (27) | (19) |
Deferred income taxes | (14) | (729) | (97) |
Provision (benefit) for income taxes | $ 309 | $ (336) | $ 557 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax provision | $ 226 | $ 264 | $ 189 |
State income taxes, net of U.S. federal tax benefit | 37 | 19 | 22 |
Foreign income tax expense | 26 | 4 | 34 |
Effects of the TCJ Act | 13 | (600) | 0 |
Corporate restructuring | 9 | 0 | 477 |
Change in deferred tax asset valuation allowance | (6) | (48) | (20) |
Provision (benefit) for uncertain tax positions | 16 | 38 | (139) |
Other, net | (12) | (13) | (6) |
Provision (benefit) for income taxes | $ 309 | $ (336) | $ 557 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 389 | $ 395 |
Compensation | 118 | 113 |
Reserves | 18 | 39 |
Capital lease obligations | 75 | 78 |
Deferred income | 258 | 210 |
Other | 42 | 52 |
Total gross deferred tax assets | 900 | 887 |
Less: valuation allowance | (399) | (408) |
Deferred tax assets | 501 | 479 |
Brands | (1,123) | (1,122) |
Amortizing intangible assets | (157) | (177) |
Investment in foreign subsidiaries | (29) | 0 |
Deferred tax liabilities | (1,309) | (1,299) |
Net deferred taxes | $ (808) | $ (820) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 283 | $ 174 | $ 315 |
Additions for tax positions related to prior years | 37 | 3 | 77 |
Additions for tax positions related to the current year | 16 | 126 | 9 |
Reductions for tax positions related to prior years | (15) | (10) | (204) |
Settlements | 0 | (9) | (21) |
Lapse of statute of limitations | (3) | (2) | (2) |
Currency translation adjustment | 0 | 1 | 0 |
Balance at end of year | $ 318 | $ 283 | $ 174 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit for transition tax on historic foreign earnings | $ 2 | $ 15 | |
Provisional benefit related to TCJ Act | 600 | ||
Income tax expense | (309) | 336 | $ (557) |
Net operating loss carryforwards | 1,500 | ||
Deferred tax assets, foreign net operating loss carryforwards | 389 | ||
Deferred tax assets, net operating loss carryforwards due to expire | $ 11 | ||
Net operating loss carryforwards expiration range | 2019 and 2038 | ||
Net operating loss carryforwards due to expire in one year | less than $1 million | ||
Deferred tax assets, net operating loss carryforwards not subject to expiration | $ 378 | ||
Net operating loss carryforwards valuation allowance | 379 | ||
Deferred tax asset valuation allowance decrease | 9 | ||
Accrual for interest and penalties | 40 | 33 | |
Unrecognized tax benefits that would impact effective tax rate | 310 | 285 | |
Income tax examination, estimate of possible loss | 817 | ||
Accrual related to IRS proposed additional tax owed | 52 | ||
Release of valuation allowance against foreign deferred tax assets | 6 | ||
Foreign deferred tax assets, valuation allowance, decrease | 3 | ||
Restructuring [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred other tax expense (benefit) | 9 | ||
Income tax expense | $ 477 | ||
Remeasurement of DTAs/DTLs, uncertain tax position reserves and other tax liabilities [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit related to TCJ Act | $ 569 | ||
Adjustment to complete accounting related to TCJ Act | 10 | ||
Pre-enactment [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Federal statutory income tax rate, percent | 35.00% | ||
Post-enactment [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Federal statutory income tax rate, percent | 21.00% | ||
Remeasurement of U.S. DTAs/DTLs [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit related to TCJ Act | $ 452 | ||
Uncertain tax position reserves [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit related to TCJ Act | 33 | ||
Other tax liabilities [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit related to TCJ Act | 84 | ||
Recognition of tax benefits [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit for transition tax on historic foreign earnings | $ 16 | ||
Outside basis difference in controlled foreign corporation [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Adjustment to complete accounting related to TCJ Act | 31 | ||
U.S. DTLs [member] | Restructuring [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred other tax expense (benefit) | 12 | ||
Remeasurement of DTAs/DTLs [member] | Restructuring [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred other tax expense (benefit) | $ (3) |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Projected Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Domestic plan [member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 384 | $ 381 | |
Service cost | 0 | 0 | |
Interest cost | 12 | 12 | |
Prior service cost | 0 | 0 | |
Actuarial loss (gain) | (14) | 16 | |
Settlements and curtailments | (2) | (1) | |
Effect of foreign exchange rates | 0 | 0 | |
Benefits paid | (23) | (24) | |
Benefit obligation at end of year | 357 | 384 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 306 | 267 | |
Actual return on plan assets, net of expenses | (23) | 43 | |
Employer contributions | 16 | 21 | |
Settlements | (2) | (1) | |
Effect of foreign exchange rates | 0 | 0 | |
Benefits paid | (23) | (24) | |
Fair value of plan assets at end of year | 274 | 306 | |
Funded status at end of year (underfunded) | (83) | (78) | |
Defined benefit plan, accumulated benefit obligation | 357 | 384 | |
U.K. plan [member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 443 | 404 | |
Service cost | 3 | 2 | |
Interest cost | 9 | 10 | |
Prior service cost | 4 | [1] | 0 |
Actuarial loss (gain) | (39) | 4 | |
Settlements and curtailments | 0 | 0 | |
Effect of foreign exchange rates | (25) | 40 | |
Benefits paid | (20) | (17) | |
Benefit obligation at end of year | 375 | 443 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 386 | 336 | |
Actual return on plan assets, net of expenses | (14) | 24 | |
Employer contributions | 10 | 9 | |
Settlements | 0 | 0 | |
Effect of foreign exchange rates | (22) | 34 | |
Benefits paid | (20) | (17) | |
Fair value of plan assets at end of year | 340 | 386 | |
Funded status at end of year (underfunded) | (35) | (57) | |
Defined benefit plan, accumulated benefit obligation | 375 | 443 | |
International plans [member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 86 | 81 | |
Service cost | 2 | 1 | |
Interest cost | 2 | 1 | |
Prior service cost | 0 | 0 | |
Actuarial loss (gain) | 0 | 3 | |
Settlements and curtailments | (1) | 0 | |
Effect of foreign exchange rates | (1) | 4 | |
Benefits paid | (5) | (4) | |
Benefit obligation at end of year | 83 | 86 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 65 | 58 | |
Actual return on plan assets, net of expenses | (1) | 6 | |
Employer contributions | 4 | 4 | |
Settlements | 0 | 0 | |
Effect of foreign exchange rates | 0 | 1 | |
Benefits paid | (5) | (4) | |
Fair value of plan assets at end of year | 63 | 65 | |
Funded status at end of year (underfunded) | (20) | (21) | |
Defined benefit plan, accumulated benefit obligation | $ 83 | $ 86 | |
[1] | Relates to U.K. pension equalization requirements. |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | $ (83) | $ (78) |
U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (35) | (57) |
International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (20) | (21) |
Other non-current assets | Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 0 | 0 |
Other non-current assets | U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 0 | 0 |
Other non-current assets | International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 7 | 9 |
Other liabilities [member] | Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (83) | (78) |
Other liabilities [member] | U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (35) | (57) |
Other liabilities [member] | International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | $ (27) | $ (30) |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) | $ 22 | $ (15) | $ 0 |
Prior service cost (credit) | (4) | (3) | (3) |
Amortization of net loss | (3) | (3) | (3) |
Net amount recognized in other comprehensive income (loss) | 15 | (21) | (6) |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) | (14) | 13 | 41 |
Prior service cost (credit) | 4 | 0 | 0 |
Amortization of net loss | (4) | (4) | (2) |
Net amount recognized in other comprehensive income (loss) | (14) | 9 | 39 |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gain (loss) | 3 | 0 | 3 |
Prior service cost (credit) | 0 | 0 | 0 |
Amortization of net loss | (1) | 0 | (1) |
Net amount recognized in other comprehensive income (loss) | $ 2 | $ 0 | $ 2 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Amounts in AOCI to be Recognized over Next Fiscal Year (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | $ 3 | |
Unrecognized net loss | 3 | |
Amount unrecognized | 6 | |
U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net loss | $ 4 | |
Unrecognized prior service cost | less than 1 million | [1] |
Amount unrecognized | $ 4 | |
International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | less than 1 million | [1] |
Unrecognized net loss | less than 1 million | [1] |
Amount unrecognized | less than 1 million | [1] |
[1] | Unrecognized prior service cost amounts for the U.K. Plan and International Plans are less than $1 million and unrecognized net loss amounts for the International Plans are less than $1 million. |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Pension Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 6 | $ 8 | $ 8 |
Interest cost | 12 | 12 | 13 |
Expected return on plan assets | (19) | (19) | (19) |
Amortization of prior service cost | 3 | 3 | 4 |
Amortization of net loss | 3 | 3 | 3 |
Net periodic pension cost (credit) | 5 | 7 | 9 |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 2 | 2 |
Interest cost | 9 | 10 | 12 |
Expected return on plan assets | (21) | (19) | (22) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 4 | 4 | 2 |
Net periodic pension cost (credit) | (5) | (3) | (6) |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 3 |
Interest cost | 2 | 2 | 2 |
Expected return on plan assets | (3) | (3) | (3) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 1 | 0 | 0 |
Net periodic pension cost (credit) | $ 2 | $ 1 | $ 2 |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.30% | 3.60% | |
Discount rate, net periodic pension cost | 3.60% | 4.00% | 4.20% |
Expected return on plan assets | 7.00% | 7.00% | 7.30% |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.10% | 2.60% | |
Salary inflation | 1.80% | 1.80% | |
Pension inflation | 3.00% | 3.00% | |
Discount rate, net periodic pension cost | 2.60% | 2.80% | 3.90% |
Expected return on plan assets | 5.50% | 5.50% | 6.50% |
Salary inflation, net periodic pension cost | 1.80% | 1.90% | 1.70% |
Pension inflation, net periodic pension cost | 3.00% | 3.10% | 2.80% |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.30% | 2.40% | |
Salary inflation | 2.20% | 2.20% | |
Pension inflation | 1.80% | 1.80% | |
Discount rate, net periodic pension cost | 2.90% | 3.00% | 3.50% |
Expected return on plan assets | 4.60% | 4.30% | 5.40% |
Salary inflation, net periodic pension cost | 2.20% | 2.10% | 2.10% |
Pension inflation, net periodic pension cost | 1.80% | 1.70% | 1.60% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Pension Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic plan [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 274 | $ 306 | $ 267 | |
Domestic plan [member] | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Domestic plan [member] | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
Domestic plan [member] | Equity funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Domestic plan [member] | Common collective trusts [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 274 | 306 | |
Domestic plan [member] | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
Domestic plan [member] | Bond funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Domestic plan [member] | Bond funds [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 0 | ||
Domestic plan [member] | Other Investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 0 | ||
Domestic plan [member] | Alternative investments [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
U.K. plan [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 340 | 386 | 336 | |
U.K. plan [member] | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 34 | 0 | ||
U.K. plan [member] | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 33 | |||
U.K. plan [member] | Equity funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. plan [member] | Common collective trusts [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 0 | 386 | |
U.K. plan [member] | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 39 | |||
U.K. plan [member] | Bond funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.K. plan [member] | Bond funds [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 44 | ||
U.K. plan [member] | Other Investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 50 | ||
U.K. plan [member] | Alternative investments [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 140 | |||
International plans [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 63 | 65 | $ 58 | |
International plans [member] | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 11 | 11 | ||
International plans [member] | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2 | |||
International plans [member] | Equity funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4 | 6 | ||
International plans [member] | Common collective trusts [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 40 | 43 | |
International plans [member] | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | |||
International plans [member] | Bond funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 6 | $ 5 | ||
International plans [member] | Bond funds [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 0 | ||
International plans [member] | Other Investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 0 | ||
International plans [member] | Alternative investments [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 0 | |||
[1] | Certain investments are measured at net asset value per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy |
Employee Benefit Plans - Sche_6
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Domestic plan [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | $ 35 |
2020 | 27 |
2021 | 27 |
2022 | 26 |
2023 | 26 |
2024-2028 | 121 |
Defined benefit plan expected future benefit payments | 262 |
U.K. plan [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | 19 |
2020 | 19 |
2021 | 20 |
2022 | 20 |
2023 | 20 |
2024-2028 | 107 |
Defined benefit plan expected future benefit payments | 205 |
International plans [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | 11 |
2020 | 6 |
2021 | 5 |
2022 | 5 |
2023 | 5 |
2024-2028 | 24 |
Defined benefit plan expected future benefit payments | $ 56 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer plans, plan assets | $ 297 | $ 331 | |
Multiemployer plans, accumulated benefit obligation | 380 | 409 | |
Defined contribution plan, cost | $ 16 | 15 | $ 17 |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $8 million | ||
Defined benefit plan, benefit obligation | $ 357 | $ 384 | 381 |
Domestic plan [member] | Debt securities [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 20 percent | 20 percent | |
Domestic plan [member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 80 percent | 80 percent | |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $9 million | ||
Defined benefit plan, benefit obligation | $ 375 | $ 443 | 404 |
UK and international plans [member] | Debt and equity securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 75 percent | 75 percent | |
UK and international plans [member] | Bond funds [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 25 percent | 25 percent | |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $4 million | ||
Defined benefit plan, benefit obligation | $ 83 | $ 86 | $ 81 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 127 | $ 121 | $ 81 |
Tax benefit | 42 | 49 | 31 |
Accrued liabilities | 15 | 15 | |
Unrecognized compensation costs related to unvested awards | $ 121 | ||
Unrecognized compensation costs related to unvested awards, weighted-average period | 1 year 8 months | ||
Shares of common stock reserved for future issuance | 16.1 | ||
Incremental share based compensation expense | $ 2.3 | $ 3.3 | $ 0.3 |
EBITDA CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 50.00% | ||
Free cash flow CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 50.00% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Additional Information on Restricted Stock Units (Details) - Restricted stock units (RSUs) [member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Additional Information On Restricted Stock Units [Line Items] | |||
Number of shares granted | 0.9 | 1.5 | 1.2 |
Weighted average grant date fair value per share | $ 79.31 | $ 58.80 | $ 59.73 |
Aggregate intrinsic value of shares vested | $ 123 | $ 78 | $ 40 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Restricted Stock Units Award Activity (Details) - Restricted stock units (RSUs) [member] - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning balance | 2.8 | ||
Number of shares granted | 0.9 | 1.5 | 1.2 |
Vested | (1.5) | ||
Forfeited | (0.2) | ||
Outstanding, ending balance | 2 | 2.8 | |
Weighted average grant date fair value, outstanding beginning balance | $ 51.44 | ||
Weighted average grant date fair value per share | 79.31 | $ 58.80 | $ 59.73 |
Weighted average grant date fair value, vested | 49.56 | ||
Weighted average grant date fair value, forfeited | 56.09 | ||
Weighted average grant date fair value, outstanding ending balance | $ 64.88 | $ 51.44 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Additional Information on Stock Options (Details) - Stock options [member] - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Additional Information on Stock Options [Line Items] | |||
Number of options granted | 0.6 | 0.7 | 0.5 |
Weighted average exercise price per share | $ 79.36 | $ 58.40 | $ 58.83 |
Weighted average grant date fair value per share | $ 23.72 | $ 13.96 | $ 16.41 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock options [member] | 12 Months Ended | |||
Dec. 31, 2018Rate | Dec. 31, 2017Rate | Dec. 31, 2016Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 27.91% | 24.00% | 32.00% |
Dividend yield | [2] | 0.74% | 1.43% | |
Risk-free interest rate | [3] | 2.73% | 1.36% | |
Expected term (in years) | [4] | 6 years | 6 years | 6 years |
Minimum [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | [2] | 0.92% | ||
Risk-free interest rate | [3] | 1.93% | ||
Maximum [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | [2] | 1.03% | ||
Risk-free interest rate | [3] | 2.03% | ||
[1] | Estimated using historical movement of Hilton's stock price | |||
[2] | For the year ended December 31, 2018, estimated based on the quarterly dividend and the three-month average stock price at the grant date; for the years ended December 31, 2017 and 2016, estimated based on the expected annualized dividend payment at the grant date. | |||
[3] | Based on the yields of U.S. Department of Treasury instruments with similar expected lives. | |||
[4] | Estimated using the average of the vesting periods and the contractual term of the options. |
Share-Based Compensation - Sc_5
Share-Based Compensation - Schedule of Stock Options Activity (Details) - Stock options [member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding | 2.4 | [1] | 2 | ||
Granted | 0.6 | 0.7 | 0.5 | ||
Exercised | (0.2) | ||||
Exercisable, ending balance | [2] | 1.1 | |||
Weighted average exercise price, beginning balance | $ 51.24 | ||||
Weighted average exercise price, granted | 79.36 | $ 58.40 | $ 58.83 | ||
Weighted average exercise price, exercised | 50.15 | ||||
Weighted average exercise price, ending balance | 58.50 | $ 51.24 | |||
Weighted average exercise price, exercisable | $ 50.07 | ||||
Outstanding, aggregate intrinsic value | $ 36 | ||||
Outstanding, weighted average remaining contractual term | 8 years | ||||
Exercisable, aggregate intrinsic value | $ 25 | ||||
Exercisable, weighted average remaining contractual term | 7 years | ||||
[1] | The aggregate intrinsic value was $36 million and the weighted average remaining contractual term was 8 years. | ||||
[2] | The aggregate intrinsic value was $25 million and the weighted average remaining contractual term was 7 years |
Share-Based Compensation - Sc_6
Share-Based Compensation - Schedule of Performance Shares Achievement Percentages (Details) | 12 Months Ended |
Dec. 31, 2018Rate | |
2017 awards [member] | EBITDA CAGR [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Shares achievement percentage | 200.00% |
2017 awards [member] | Free cash flow CAGR [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Shares achievement percentage | 200.00% |
2018 awards [member] | EBITDA CAGR [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Shares achievement percentage | 150.00% |
2018 awards [member] | Free cash flow CAGR [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Shares achievement percentage | 150.00% |
Share-Based Compensation - Sc_7
Share-Based Compensation - Schedule of Additional Information on Performance Shares (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
EBITDA CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 0.2 | 0.2 | 0.3 |
Weighted average grant date fair value per share | $ 79.36 | $ 58.40 | $ 58.83 |
Aggregate intrinsic value of shares vested | $ 0 | $ 0 | $ 12 |
Free cash flow CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 0.2 | 0.2 | |
Weighted average grant date fair value per share | $ 79.36 | $ 58.40 | |
Aggregate intrinsic value of shares vested | $ 0 | $ 0 | |
Relative shareholder return [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 0.3 | ||
Weighted average grant date fair value per share | $ 62.43 | ||
Aggregate intrinsic value of shares vested | $ 16 |
Share-Based Compensation - Sc_8
Share-Based Compensation - Schedule of Performance Shares Award Activity (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
EBITDA CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding | 0.4 | 0.2 | |
Number of shares granted | 0.2 | 0.2 | 0.3 |
Weighted average grant date fair value, outstanding beginning balance | $ 58.41 | ||
Weighted average grant date fair value per share | 79.36 | $ 58.40 | $ 58.83 |
Weighted average grant date fair value, outstanding ending balance | $ 69.53 | $ 58.41 | |
Free cash flow CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding | 0.4 | 0.2 | |
Number of shares granted | 0.2 | 0.2 | |
Weighted average grant date fair value, outstanding beginning balance | $ 58.41 | ||
Weighted average grant date fair value per share | 79.36 | $ 58.40 | |
Weighted average grant date fair value, outstanding ending balance | $ 69.53 | $ 58.41 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income (Loss) Available to Common Stockholders, Operations, Basic [Abstract] | |||
Net income (loss) from continuing operations attributable to Hilton stockholders | $ 764 | $ 1,084 | $ (27) |
Earnings per share: Basic | |||
Weighted average shares outstanding, basic | 302 | 324 | 329 |
Net income (loss) from continuing operations per share | $ 2.53 | $ 3.34 | $ (0.08) |
Net Income (Loss) Available to Common Stockholders, Operations, Diluted [Abstract] | |||
Net income (loss) from continuing operations attributable to Hilton stockholders | $ 764 | $ 1,084 | $ (27) |
Earnings per share: Diluted | |||
Weighted average shares outstanding, diluted | 305 | 327 | 329 |
Net income (loss) from continuing operations per share | $ 2.50 | $ 3.32 | $ (0.08) |
Antidilutive securities excluded from computation of EPS | 1 | 1 | 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (741) | |||
Amounts reclassified from accumulated other comprehensive loss | 14 | $ 25 | $ 12 | |
Spin-offs of Park and HGV | (4,211) | |||
Ending balance | (782) | (741) | ||
Currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [1] | (513) | (738) | (580) |
Other comprehensive income (loss) before reclassifications | [1] | (70) | 161 | (157) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | 1 | (1) |
Net current period other comprehensive income (loss) | [1] | (70) | 162 | (158) |
Spin-offs of Park and HGV | [1] | 63 | ||
Ending balance | [1] | (545) | (513) | (738) |
Pension liability adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (229) | (251) | (194) | |
Other comprehensive income (loss) before reclassifications | (18) | 15 | (63) | |
Amounts reclassified from accumulated other comprehensive loss | 9 | 7 | 6 | |
Net current period other comprehensive income (loss) | (9) | 22 | (57) | |
Spin-offs of Park and HGV | 0 | |||
Ending balance | (260) | (229) | (251) | |
Cash flow hedge adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 1 | (12) | (10) | |
Other comprehensive income (loss) before reclassifications | 17 | (4) | (9) | |
Amounts reclassified from accumulated other comprehensive loss | 5 | 17 | 7 | |
Net current period other comprehensive income (loss) | 22 | 13 | (2) | |
Spin-offs of Park and HGV | 0 | |||
Ending balance | 23 | 1 | (12) | |
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (741) | (1,001) | (784) | |
Other comprehensive income (loss) before reclassifications | (71) | 172 | (229) | |
Amounts reclassified from accumulated other comprehensive loss | 14 | 25 | 12 | |
Net current period other comprehensive income (loss) | (57) | 197 | (217) | |
Spin-offs of Park and HGV | 63 | |||
Ending balance | (782) | $ (741) | $ (1,001) | |
Accounting standards update 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | 0 | |||
Accounting standards update 2018-02 | Currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | [1] | 38 | ||
Accounting standards update 2018-02 | Pension liability adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | (22) | |||
Accounting standards update 2018-02 | Cash flow hedge adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | 0 | |||
Accounting standards update 2018-02 | Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of the adoption of ASU | $ 16 | |||
[1] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amounts reclassified from accumulated other comprehensive loss | $ (14) | $ (25) | $ (12) | |||
Currency translation adjustment | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Tax benefit (expense) | 0 | 0 | [1] | 0 | [1] | |
Amounts reclassified from accumulated other comprehensive loss | [2] | 0 | (1) | 1 | ||
Currency translation adjustment | Sale or liquidation of investment in foreign entity | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Sale and liquidation of foreign assets | 0 | (2) | [1] | 0 | ||
Currency translation adjustment | Gains on net investment hedges | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Sale and liquidation of foreign assets | 0 | 1 | [1] | 1 | [1] | |
Pension liability adjustment | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amortization of prior service cost | [3] | (3) | (3) | (4) | ||
Amortization of net loss | [3] | (8) | (7) | (5) | ||
Tax benefit | [4] | 2 | 3 | 3 | ||
Amounts reclassified from accumulated other comprehensive loss | (9) | (7) | (6) | |||
Cash flow hedge adjustment | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Dedesignated interest rate swaps | [5] | (6) | (26) | (12) | ||
Tax benefit | [4] | 1 | 9 | 5 | ||
Amounts reclassified from accumulated other comprehensive loss | $ (5) | $ (17) | $ (7) | |||
[1] | Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. The related tax benefits for the years ended December 31, 2017 and 2016 were less than $1 million and were reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. | |||||
[2] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. | |||||
[3] | Reclassified out of accumulated other comprehensive loss to other non-operating income, net in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). See Note 15: "Employee Benefit Plans" for additional information. | |||||
[4] | Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. | |||||
[5] | Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statements of operations. See Note 11: "Derivative Instruments and Hedging Activities" for additional information. |
Business Segments - Additional
Business Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018RoomHotelSegment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | Segment | 2 |
Management and franchise [member] | |
Segment Reporting Information [Line Items] | |
Number of managed hotels | 689 |
Number of franchised hotels | 4,874 |
Number of managed and franchised hotel rooms | Room | 882,873 |
Ownership [member] | |
Segment Reporting Information [Line Items] | |
Number of owned and leased hotel properties | 71 |
Number of owned and leased hotel rooms | Room | 21,720 |
Number of wholly owned and leased hotels | 62 |
Number of non wholly owned hotels | 1 |
Number of hotels of consolidated VIEs | 2 |
Number of hotels owned or leased by unconsolidated affiliates | 6 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenues from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Amortization of contract acquisition costs | $ (27) | $ (17) | $ (16) | |||||||||
Revenues | $ 2,288 | $ 2,253 | $ 2,291 | $ 2,074 | $ 2,068 | $ 2,091 | $ 2,076 | $ 1,896 | 8,906 | 8,131 | 6,576 | |
Franchise fees in segment revenues [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 1,537 | 1,326 | 1,095 | |||||||||
Management and franchise [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 2,157 | 1,927 | 1,521 | |||||||||
Base and other management fees in segment revenues [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [1] | 385 | 379 | 284 | ||||||||
Incentive management fees in segment revenues [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 235 | 222 | 142 | |||||||||
Ownership [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 1,484 | 1,432 | 1,434 | |||||||||
Operating segments [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 3,641 | 3,359 | 2,955 | |||||||||
Intersegment eliminations [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [1] | (44) | (43) | (42) | ||||||||
Other revenues [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 98 | 105 | 82 | |||||||||
Direct reimbursements from managed and franchised properties [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [2] | 2,881 | 2,572 | 1,644 | ||||||||
Indirect reimbursements from manged and franchised properties [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [2] | $ 2,357 | $ 2,155 | $ 1,953 | ||||||||
[1] | Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. | |||||||||||
[2] | Included in other revenues from managed and franchised properties in our consolidated statements of operations. |
Business Segments - Reconcili_2
Business Segments - Reconciliation of Segment Operating Income to Income from Continuing Operations before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | $ 362 | $ 385 | $ 406 | $ 279 | $ 259 | $ 332 | $ 324 | $ 217 | $ 1,432 | $ 1,132 | $ 868 | |
Amortization of contract acquisition costs | (27) | (17) | (16) | |||||||||
Other revenues, less other expenses | 47 | 49 | 16 | |||||||||
General and administrative | (443) | (439) | (409) | |||||||||
Gain on sales of assets, net | 0 | 0 | 8 | |||||||||
Interest expense | (371) | (351) | (334) | |||||||||
Gain (loss) on foreign currency transactions | (11) | 3 | (16) | |||||||||
Loss on debt extinguishment | 0 | (60) | 0 | |||||||||
Other non-operating income, net | 28 | 29 | 22 | |||||||||
Income from continuing operations before income taxes | 1,078 | 753 | 540 | |||||||||
Net other expenses from managed and franchised properties | (85) | (172) | (12) | |||||||||
Depreciation and amortization | (325) | (336) | (353) | |||||||||
Management and franchise [member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | [1] | 2,157 | 1,927 | 1,521 | ||||||||
Ownership [member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | [1] | 108 | 120 | 113 | ||||||||
Operating segments [member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | $ 2,265 | $ 2,047 | $ 1,634 | |||||||||
[1] | Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Business Segments - Schedule of
Business Segments - Schedule of Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 13,995 | $ 14,228 |
Corporate and other [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,706 | 1,759 |
Management and franchise [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 11,362 | 11,505 |
Ownership [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 927 | $ 964 |
Business Segments - Schedule _2
Business Segments - Schedule of Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||
Capital expenditures for property and equipment | $ 72 | $ 58 | $ 317 |
Capital expenditures for property and equipment of continuing operations | 72 | 58 | 62 |
Corporate and other [member] | |||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||
Capital expenditures for property and equipment | 30 | 26 | 17 |
Ownership [member] | |||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||
Capital expenditures for property and equipment | $ 42 | $ 32 | $ 45 |
Business Segments - Schedule _3
Business Segments - Schedule of Revenues by Country (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||
Revenues | $ 8,906 | $ 8,131 | $ 6,576 |
United States | |||
Revenue from External Customer [Line Items] | |||
Revenues | 6,848 | 6,046 | 4,524 |
United Kingdom | |||
Revenue from External Customer [Line Items] | |||
Revenues | 545 | 544 | 942 |
All other | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 1,513 | $ 1,541 | $ 1,110 |
Business Segments - Schedule _4
Business Segments - Schedule of Property and Equipment, Net by Country (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | $ 367 | $ 353 |
United States | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 109 | 105 |
Japan | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 106 | 94 |
United Kingdom | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 75 | 82 |
Germany | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 40 | 36 |
All other | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | $ 37 | $ 36 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract | |
Commitments and Contingencies [Line Items] | ||
Liabilities | $ 13,437 | $ 12,537 |
Marketing, sales and brand program commitments | $ 375 | 402 |
Performance guarantees | ||
Commitments and Contingencies [Line Items] | ||
Number of contracts with performance guarantees | Contract | 5 | |
Performance guarantees, range of expirations | 2019 to 2030 | |
Performance guarantees, possible cash outlays | $ 36 | |
Liabilities | $ 12 | $ 21 |
Number of hotels with performance guarantees with recorded liabilities | Contract | 1 | 2 |
Commitments to fund loan | ||
Commitments and Contingencies [Line Items] | ||
Commitment to fund loan | $ 29 | |
Commitment to fund loan, 2019 | 19 | |
Commitment to fund loan, 2020 | $ 10 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction | |||||||||||
Management and franchise contracts, net | $ 872 | $ 953 | $ 872 | $ 953 | |||||||
Revenues | 2,288 | $ 2,253 | $ 2,291 | $ 2,074 | 2,068 | $ 2,091 | $ 2,076 | $ 1,896 | 8,906 | 8,131 | $ 6,576 |
Contract acquisition costs | 103 | 75 | 55 | ||||||||
Other revenues from managed and franchised properties [member] | |||||||||||
Related Party Transaction | |||||||||||
Revenues | 5,238 | 4,727 | 3,597 | ||||||||
Other expenses from managed and franchised properties [member] | |||||||||||
Related Party Transaction | |||||||||||
Expenses | 5,323 | 4,899 | 3,609 | ||||||||
Management and franchise [member] | |||||||||||
Related Party Transaction | |||||||||||
Revenues | 2,157 | 1,927 | 1,521 | ||||||||
Investments in affiliates | |||||||||||
Related Party Transaction | |||||||||||
Management and franchise contracts, net | $ 19 | $ 20 | 19 | 20 | |||||||
Investments in affiliates | Other revenues from managed and franchised properties [member] | |||||||||||
Related Party Transaction | |||||||||||
Revenues | 22 | 22 | 21 | ||||||||
Investments in affiliates | Other expenses from managed and franchised properties [member] | |||||||||||
Related Party Transaction | |||||||||||
Expenses | 22 | 22 | 21 | ||||||||
Investments in affiliates | Management and franchise [member] | |||||||||||
Related Party Transaction | |||||||||||
Revenues | $ 10 | 10 | 12 | ||||||||
The Blackstone Group and affiliates | |||||||||||
Related Party Transaction | |||||||||||
Contract acquisition costs | 11 | ||||||||||
The Blackstone Group and affiliates | Other revenues from managed and franchised properties [member] | |||||||||||
Related Party Transaction | |||||||||||
Revenues | 113 | 144 | |||||||||
The Blackstone Group and affiliates | Other expenses from managed and franchised properties [member] | |||||||||||
Related Party Transaction | |||||||||||
Expenses | 113 | 144 | |||||||||
The Blackstone Group and affiliates | Management and franchise [member] | |||||||||||
Related Party Transaction | |||||||||||
Revenues | $ 24 | $ 42 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities [Abstract] | |||
Interest paid | $ 330 | $ 314 | $ 478 |
Income Taxes Paid, Net [Abstract] | |||
Income taxes, net of refunds | $ 288 | 526 | 677 |
Other Significant Noncash Transactions [Line Items] | |||
Non-cash financing activities | $ 25 | ||
Non-cash investing activities | $ 116 |
Condensed Consolidating Guara_3
Condensed Consolidating Guarantor Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | $ 403 | $ 570 | |||
Restricted cash and cash equivalents | 81 | 100 | |||
Accounts receivable, net | 1,150 | 1,005 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 160 | 127 | |||
Income taxes receivable | 20 | 36 | |||
Other | 169 | 169 | |||
Total current assets | 1,983 | 2,007 | |||
Investments in consolidated subsidiaries | 0 | 0 | |||
Goodwill | 5,160 | 5,190 | $ 5,218 | ||
Brands | 4,869 | 4,890 | |||
Management and franchise contracts, net | 872 | 953 | |||
Other intangible assets, net | 415 | 433 | |||
Property and equipment, net | 367 | 353 | |||
Deferred income tax assets | 90 | 111 | |||
Other | 239 | 291 | |||
Total intangibles and other assets | 12,012 | 12,221 | |||
Total assets | 13,995 | 14,228 | |||
Accounts payable, accrued expenses and other | 1,530 | 1,416 | |||
Deferred revenue, current | 350 | 366 | |||
Intercompany payables | 0 | 0 | |||
Current maturities of long-term debt | [1] | 16 | 46 | ||
Income taxes payable | 19 | 12 | |||
Current portion of liability for guest loyalty program | 700 | 622 | |||
Total current liabilities | 2,615 | 2,462 | |||
Long-term debt | 7,266 | 6,556 | |||
Deferred revenues | 826 | 829 | |||
Deferred income tax liabilities | 898 | 931 | |||
Liability for guest loyalty program | 969 | 839 | |||
Other | 863 | 920 | |||
Total liabilities | 13,437 | 12,537 | |||
Total Hilton stockholders' equity | 551 | 1,688 | |||
Noncontrolling interests | 7 | 3 | |||
Total equity | 558 | 1,691 | $ 5,627 | $ 5,951 | |
Total liabilities and equity | 13,995 | 14,228 | |||
Parent Company [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 0 | 0 | |||
Income taxes receivable | 0 | 0 | |||
Other | 0 | 0 | |||
Total current assets | 0 | 0 | |||
Investments in consolidated subsidiaries | 557 | 1,697 | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Property and equipment, net | 0 | 0 | |||
Deferred income tax assets | 4 | 6 | |||
Other | 0 | 0 | |||
Total intangibles and other assets | 561 | 1,703 | |||
Total assets | 561 | 1,703 | |||
Accounts payable, accrued expenses and other | 10 | 15 | |||
Deferred revenue, current | 0 | 0 | |||
Intercompany payables | 0 | 0 | |||
Current maturities of long-term debt | 0 | 0 | |||
Income taxes payable | 0 | 0 | |||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Total current liabilities | 10 | 15 | |||
Long-term debt | 0 | 0 | |||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 0 | |||
Liability for guest loyalty program | 0 | 0 | |||
Other | 0 | 0 | |||
Total liabilities | 10 | 15 | |||
Total Hilton stockholders' equity | 551 | 1,688 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 551 | 1,688 | |||
Total liabilities and equity | 561 | 1,703 | |||
HWF Issuers [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 0 | 0 | |||
Income taxes receivable | 0 | 0 | |||
Other | 1 | 0 | |||
Total current assets | 1 | 0 | |||
Investments in consolidated subsidiaries | 5,131 | 7,067 | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Property and equipment, net | 0 | 0 | |||
Deferred income tax assets | 0 | 0 | |||
Other | 23 | 20 | |||
Total intangibles and other assets | 5,154 | 7,087 | |||
Total assets | 5,155 | 7,087 | |||
Accounts payable, accrued expenses and other | 19 | 20 | |||
Deferred revenue, current | 0 | 0 | |||
Intercompany payables | 0 | 0 | |||
Current maturities of long-term debt | 0 | 32 | |||
Income taxes payable | 0 | 0 | |||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Total current liabilities | 19 | 52 | |||
Long-term debt | 4,573 | 5,333 | |||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 6 | 5 | |||
Liability for guest loyalty program | 0 | 0 | |||
Other | 0 | 0 | |||
Total liabilities | 4,598 | 5,390 | |||
Total Hilton stockholders' equity | 557 | 1,697 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 557 | 1,697 | |||
Total liabilities and equity | 5,155 | 7,087 | |||
HOC [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 3 | 2 | |||
Restricted cash and cash equivalents | 34 | 61 | |||
Accounts receivable, net | 10 | 18 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 52 | 25 | |||
Income taxes receivable | 0 | 0 | |||
Other | 1 | 1 | |||
Total current assets | 100 | 107 | |||
Investments in consolidated subsidiaries | 7,930 | 8,326 | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 2 | |||
Other intangible assets, net | 0 | 1 | |||
Property and equipment, net | 27 | 20 | |||
Deferred income tax assets | 94 | 104 | |||
Other | 33 | 32 | |||
Total intangibles and other assets | 8,084 | 8,485 | |||
Total assets | 8,184 | 8,592 | |||
Accounts payable, accrued expenses and other | 229 | 184 | |||
Deferred revenue, current | 106 | 90 | |||
Intercompany payables | 40 | 40 | |||
Current maturities of long-term debt | 0 | 0 | |||
Income taxes payable | 0 | 0 | |||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Total current liabilities | 375 | 314 | |||
Long-term debt | 2,467 | 983 | |||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 0 | |||
Liability for guest loyalty program | 0 | 0 | |||
Other | 211 | 228 | |||
Total liabilities | 3,053 | 1,525 | |||
Total Hilton stockholders' equity | 5,131 | 7,067 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 5,131 | 7,067 | |||
Total liabilities and equity | 8,184 | 8,592 | |||
Guarantor Subsidiaries [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 17 | 18 | |||
Restricted cash and cash equivalents | 15 | 10 | |||
Accounts receivable, net | 735 | 712 | |||
Intercompany receivables | 0 | 0 | |||
Prepaid expenses | 37 | 24 | |||
Income taxes receivable | 23 | 60 | |||
Other | 13 | 13 | |||
Total current assets | 840 | 837 | |||
Investments in consolidated subsidiaries | 557 | 1,697 | |||
Goodwill | 3,824 | 3,824 | |||
Brands | 4,404 | 4,405 | |||
Management and franchise contracts, net | 556 | 645 | |||
Other intangible assets, net | 287 | 283 | |||
Property and equipment, net | 65 | 67 | |||
Deferred income tax assets | 0 | 0 | |||
Other | 22 | 67 | |||
Total intangibles and other assets | 9,715 | 10,988 | |||
Total assets | 10,555 | 11,825 | |||
Accounts payable, accrued expenses and other | 529 | 576 | |||
Deferred revenue, current | 239 | 266 | |||
Intercompany payables | 0 | 0 | |||
Current maturities of long-term debt | 0 | 0 | |||
Income taxes payable | 0 | 0 | |||
Current portion of liability for guest loyalty program | 700 | 622 | |||
Total current liabilities | 1,468 | 1,464 | |||
Long-term debt | 0 | 0 | |||
Deferred revenues | 762 | 770 | |||
Deferred income tax liabilities | 962 | 1,052 | |||
Liability for guest loyalty program | 969 | 839 | |||
Other | 93 | 64 | |||
Total liabilities | 4,254 | 4,189 | |||
Total Hilton stockholders' equity | 6,301 | 7,636 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 6,301 | 7,636 | |||
Total liabilities and equity | 10,555 | 11,825 | |||
Non-Guarantor Subsidiaries [member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 383 | 550 | |||
Restricted cash and cash equivalents | 32 | 29 | |||
Accounts receivable, net | 405 | 275 | |||
Intercompany receivables | 40 | 40 | |||
Prepaid expenses | 80 | 84 | |||
Income taxes receivable | 0 | 0 | |||
Other | 154 | 155 | |||
Total current assets | 1,094 | 1,133 | |||
Investments in consolidated subsidiaries | 0 | 0 | |||
Goodwill | 1,336 | 1,366 | |||
Brands | 465 | 485 | |||
Management and franchise contracts, net | 316 | 306 | |||
Other intangible assets, net | 128 | 149 | |||
Property and equipment, net | 275 | 266 | |||
Deferred income tax assets | 90 | 127 | |||
Other | 161 | 172 | |||
Total intangibles and other assets | 2,771 | 2,871 | |||
Total assets | 3,865 | 4,004 | |||
Accounts payable, accrued expenses and other | 743 | 624 | |||
Deferred revenue, current | 14 | 13 | |||
Intercompany payables | 0 | 0 | |||
Current maturities of long-term debt | 16 | 14 | |||
Income taxes payable | 22 | 36 | |||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Total current liabilities | 795 | 687 | |||
Long-term debt | 226 | 240 | |||
Deferred revenues | 64 | 59 | |||
Deferred income tax liabilities | 28 | 0 | |||
Liability for guest loyalty program | 0 | 0 | |||
Other | 559 | 628 | |||
Total liabilities | 1,672 | 1,614 | |||
Total Hilton stockholders' equity | 2,186 | 2,387 | |||
Noncontrolling interests | 7 | 3 | |||
Total equity | 2,193 | 2,390 | |||
Total liabilities and equity | 3,865 | 4,004 | |||
Eliminations [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany receivables | (40) | (40) | |||
Prepaid expenses | (9) | (6) | |||
Income taxes receivable | (3) | (24) | |||
Other | 0 | 0 | |||
Total current assets | (52) | (70) | |||
Investments in consolidated subsidiaries | (14,175) | (18,787) | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Property and equipment, net | 0 | 0 | |||
Deferred income tax assets | (98) | (126) | |||
Other | 0 | 0 | |||
Total intangibles and other assets | (14,273) | (18,913) | |||
Total assets | (14,325) | (18,983) | |||
Accounts payable, accrued expenses and other | 0 | (3) | |||
Deferred revenue, current | (9) | (3) | |||
Intercompany payables | (40) | (40) | |||
Current maturities of long-term debt | 0 | 0 | |||
Income taxes payable | (3) | (24) | |||
Current portion of liability for guest loyalty program | 0 | 0 | |||
Total current liabilities | (52) | (70) | |||
Long-term debt | 0 | 0 | |||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | (98) | (126) | |||
Liability for guest loyalty program | 0 | 0 | |||
Other | 0 | 0 | |||
Total liabilities | (150) | (196) | |||
Total Hilton stockholders' equity | (14,175) | (18,787) | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | (14,175) | (18,787) | |||
Total liabilities and equity | $ (14,325) | $ (18,983) | |||
[1] | Balance as of December 31, 2017 is net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Condensed Consolidating Guara_4
Condensed Consolidating Guarantor Financial Information - Condensed Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | $ 2,288 | $ 2,253 | $ 2,291 | $ 2,074 | $ 2,068 | $ 2,091 | $ 2,076 | $ 1,896 | $ 8,906 | $ 8,131 | $ 6,576 |
Depreciation and amortization | 325 | 336 | 353 | ||||||||
General and administrative | 443 | 439 | 409 | ||||||||
Other expenses | 51 | 56 | 66 | ||||||||
Total expenses excluding reimbursable expenses | 2,151 | 2,100 | 2,107 | ||||||||
Total expenses | 7,474 | 6,999 | 5,716 | ||||||||
Gain on sales of assets, net | 0 | 0 | 8 | ||||||||
Operating income (loss) | 362 | 385 | 406 | 279 | 259 | 332 | 324 | 217 | 1,432 | 1,132 | 868 |
Interest expense | (371) | (351) | (334) | ||||||||
Gain (loss) on foreign currency transactions | (11) | 3 | (16) | ||||||||
Loss on debt extinguishment | 0 | (60) | 0 | ||||||||
Other non-operating income (loss), net | 28 | 29 | 22 | ||||||||
Income from continuing operations before income taxes | 1,078 | 753 | 540 | ||||||||
Income tax benefit (expense) | (309) | 336 | (557) | ||||||||
Income (loss) before equity in earnings (losses) from subsidiaries | 769 | 1,089 | (17) | ||||||||
Equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 225 | 164 | 217 | 163 | 730 | 160 | 151 | 48 | 769 | 1,089 | 354 |
Net income attributable to noncontrolling interests | (5) | (5) | (16) | ||||||||
Net income attributable to Hilton stockholders | $ 224 | $ 162 | $ 217 | $ 161 | $ 729 | $ 158 | $ 150 | $ 47 | 764 | 1,084 | 338 |
Comprehensive income | 712 | 1,286 | 136 | ||||||||
Comprehensive income attributable to noncontrolling interests | (5) | (5) | (15) | ||||||||
Comprehensive income attributable to Hilton stockholders | 707 | 1,281 | 121 | ||||||||
Income (loss) from continuing operations, net of taxes | 769 | 1,089 | (17) | ||||||||
Income from discontinued operations, net of taxes | 0 | 0 | 371 | ||||||||
Franchise fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,530 | 1,321 | 1,091 | ||||||||
Base and other management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 321 | 324 | 230 | ||||||||
Incentive management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 235 | 222 | 142 | ||||||||
Owned and leased hotels [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,484 | 1,432 | 1,434 | ||||||||
Expenses | 1,332 | 1,269 | 1,279 | ||||||||
Other revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 98 | 105 | 82 | ||||||||
Total revenues excluding reimbursable revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 3,668 | 3,404 | 2,979 | ||||||||
Other revenues from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 5,238 | 4,727 | 3,597 | ||||||||
Other expenses from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 5,323 | 4,899 | 3,609 | ||||||||
Parent Company [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Total expenses excluding reimbursable expenses | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Gain on sales of assets, net | 0 | 0 | |||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | 0 | 0 | 0 | ||||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | (3) | 193 | ||||||||
Income (loss) before equity in earnings (losses) from subsidiaries | 0 | (3) | 193 | ||||||||
Equity in earnings (losses) from subsidiaries | 764 | 1,087 | (220) | ||||||||
Net income | 764 | 1,084 | 338 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | 764 | 1,084 | 338 | ||||||||
Comprehensive income | 707 | 1,281 | 121 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 707 | 1,281 | 121 | ||||||||
Income (loss) from continuing operations, net of taxes | (27) | ||||||||||
Income from discontinued operations, net of taxes | 365 | ||||||||||
Parent Company [member] | Franchise fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Base and other management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Incentive management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Owned and leased hotels [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
Parent Company [member] | Other revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Total revenues excluding reimbursable revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Other revenues from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Parent Company [member] | Other expenses from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Total expenses excluding reimbursable expenses | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Gain on sales of assets, net | 0 | 0 | |||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Interest expense | (227) | (244) | (261) | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | (60) | ||||||||||
Other non-operating income (loss), net | (9) | (3) | 1 | ||||||||
Income from continuing operations before income taxes | (236) | (307) | (260) | ||||||||
Income tax benefit (expense) | 57 | 122 | 100 | ||||||||
Income (loss) before equity in earnings (losses) from subsidiaries | (179) | (185) | (160) | ||||||||
Equity in earnings (losses) from subsidiaries | 943 | 1,272 | (60) | ||||||||
Net income | 764 | 1,087 | 145 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | 764 | 1,087 | 145 | ||||||||
Comprehensive income | 784 | 1,101 | 143 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 784 | 1,101 | 143 | ||||||||
Income (loss) from continuing operations, net of taxes | (220) | ||||||||||
Income from discontinued operations, net of taxes | 365 | ||||||||||
HWF Issuers [member] | Franchise fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Base and other management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Incentive management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Owned and leased hotels [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Other revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Total revenues excluding reimbursable revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Other revenues from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HWF Issuers [member] | Other expenses from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 0 | 0 | 0 | ||||||||
HOC [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 479 | 334 | 63 | ||||||||
Depreciation and amortization | 6 | 5 | 1 | ||||||||
General and administrative | 323 | 327 | 90 | ||||||||
Other expenses | 7 | 17 | 1 | ||||||||
Total expenses excluding reimbursable expenses | 336 | 349 | 92 | ||||||||
Total expenses | 572 | 496 | 124 | ||||||||
Gain on sales of assets, net | 0 | 0 | |||||||||
Operating income (loss) | (93) | (162) | (61) | ||||||||
Interest expense | (106) | (61) | (14) | ||||||||
Gain (loss) on foreign currency transactions | 4 | 10 | 11 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | 3 | 4 | 1 | ||||||||
Income from continuing operations before income taxes | (192) | (209) | (63) | ||||||||
Income tax benefit (expense) | 39 | 26 | 26 | ||||||||
Income (loss) before equity in earnings (losses) from subsidiaries | (153) | (183) | (37) | ||||||||
Equity in earnings (losses) from subsidiaries | 1,096 | 1,455 | (23) | ||||||||
Net income | 943 | 1,272 | 305 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | 943 | 1,272 | 305 | ||||||||
Comprehensive income | 932 | 1,288 | 310 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 932 | 1,288 | 310 | ||||||||
Income (loss) from continuing operations, net of taxes | (60) | ||||||||||
Income from discontinued operations, net of taxes | 365 | ||||||||||
HOC [member] | Franchise fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 227 | 143 | 21 | ||||||||
HOC [member] | Base and other management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1 | 1 | 0 | ||||||||
HOC [member] | Incentive management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
HOC [member] | Owned and leased hotels [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
HOC [member] | Other revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 6 | 31 | 10 | ||||||||
HOC [member] | Total revenues excluding reimbursable revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 234 | 175 | 31 | ||||||||
HOC [member] | Other revenues from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 245 | 159 | 32 | ||||||||
HOC [member] | Other expenses from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 236 | 147 | 32 | ||||||||
Guarantor Subsidiaries [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 5,922 | 5,404 | 4,226 | ||||||||
Depreciation and amortization | 237 | 242 | 266 | ||||||||
General and administrative | 0 | 0 | 203 | ||||||||
Other expenses | 22 | 29 | 31 | ||||||||
Total expenses excluding reimbursable expenses | 259 | 271 | 500 | ||||||||
Total expenses | 4,725 | 4,418 | 3,583 | ||||||||
Gain on sales of assets, net | (1) | 0 | |||||||||
Operating income (loss) | 1,197 | 985 | 643 | ||||||||
Interest expense | 0 | 0 | (12) | ||||||||
Gain (loss) on foreign currency transactions | 84 | 124 | (150) | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | 16 | 7 | 7 | ||||||||
Income from continuing operations before income taxes | 1,297 | 1,116 | 488 | ||||||||
Income tax benefit (expense) | (309) | 89 | (297) | ||||||||
Income (loss) before equity in earnings (losses) from subsidiaries | 988 | 1,205 | 191 | ||||||||
Equity in earnings (losses) from subsidiaries | 764 | 1,087 | (220) | ||||||||
Net income | 1,752 | 2,292 | 397 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | 1,752 | 2,292 | 397 | ||||||||
Comprehensive income | 1,751 | 2,295 | 326 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 1,751 | 2,295 | 326 | ||||||||
Income (loss) from continuing operations, net of taxes | (29) | ||||||||||
Income from discontinued operations, net of taxes | 426 | ||||||||||
Guarantor Subsidiaries [member] | Franchise fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,182 | 1,077 | 974 | ||||||||
Guarantor Subsidiaries [member] | Base and other management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 205 | 195 | 122 | ||||||||
Guarantor Subsidiaries [member] | Incentive management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 78 | 76 | 16 | ||||||||
Guarantor Subsidiaries [member] | Owned and leased hotels [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
Guarantor Subsidiaries [member] | Other revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 81 | 70 | 61 | ||||||||
Guarantor Subsidiaries [member] | Total revenues excluding reimbursable revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,546 | 1,418 | 1,173 | ||||||||
Guarantor Subsidiaries [member] | Other revenues from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 4,376 | 3,986 | 3,053 | ||||||||
Guarantor Subsidiaries [member] | Other expenses from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 4,466 | 4,147 | 3,083 | ||||||||
Non-Guarantor Subsidiaries [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 2,523 | 2,417 | 2,297 | ||||||||
Depreciation and amortization | 82 | 89 | 86 | ||||||||
General and administrative | 130 | 118 | 116 | ||||||||
Other expenses | 30 | 27 | 44 | ||||||||
Total expenses excluding reimbursable expenses | 1,574 | 1,503 | 1,525 | ||||||||
Total expenses | 2,195 | 2,108 | 2,019 | ||||||||
Gain on sales of assets, net | 1 | 8 | |||||||||
Operating income (loss) | 328 | 310 | 286 | ||||||||
Interest expense | (38) | (47) | (47) | ||||||||
Gain (loss) on foreign currency transactions | (99) | (131) | 123 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | 18 | 21 | 13 | ||||||||
Income from continuing operations before income taxes | 209 | 153 | 375 | ||||||||
Income tax benefit (expense) | (96) | 102 | (579) | ||||||||
Income (loss) before equity in earnings (losses) from subsidiaries | 113 | 255 | (204) | ||||||||
Equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | ||||||||
Net income | 113 | 255 | 171 | ||||||||
Net income attributable to noncontrolling interests | (5) | (5) | (16) | ||||||||
Net income attributable to Hilton stockholders | 108 | 250 | 155 | ||||||||
Comprehensive income | 48 | 419 | 21 | ||||||||
Comprehensive income attributable to noncontrolling interests | (5) | (5) | (15) | ||||||||
Comprehensive income attributable to Hilton stockholders | 43 | 414 | 6 | ||||||||
Income (loss) from continuing operations, net of taxes | (204) | ||||||||||
Income from discontinued operations, net of taxes | 375 | ||||||||||
Non-Guarantor Subsidiaries [member] | Franchise fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 139 | 118 | 106 | ||||||||
Non-Guarantor Subsidiaries [member] | Base and other management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 115 | 128 | 108 | ||||||||
Non-Guarantor Subsidiaries [member] | Incentive management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 157 | 146 | 126 | ||||||||
Non-Guarantor Subsidiaries [member] | Owned and leased hotels [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,484 | 1,432 | 1,434 | ||||||||
Expenses | 1,332 | 1,269 | 1,279 | ||||||||
Non-Guarantor Subsidiaries [member] | Other revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 11 | 11 | 11 | ||||||||
Non-Guarantor Subsidiaries [member] | Total revenues excluding reimbursable revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 1,906 | 1,835 | 1,785 | ||||||||
Non-Guarantor Subsidiaries [member] | Other revenues from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 617 | 582 | 512 | ||||||||
Non-Guarantor Subsidiaries [member] | Other expenses from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | 621 | 605 | 494 | ||||||||
Eliminations [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | (18) | (24) | (10) | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | (10) | (6) | 0 | ||||||||
Other expenses | (8) | (17) | (10) | ||||||||
Total expenses excluding reimbursable expenses | (18) | (23) | (10) | ||||||||
Total expenses | (18) | (23) | (10) | ||||||||
Gain on sales of assets, net | 0 | 0 | |||||||||
Operating income (loss) | 0 | (1) | 0 | ||||||||
Interest expense | 0 | 1 | 0 | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income (loss), net | 0 | 0 | 0 | ||||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Income (loss) before equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) from subsidiaries | (3,567) | (4,901) | 523 | ||||||||
Net income | (3,567) | (4,901) | (1,002) | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Hilton stockholders | (3,567) | (4,901) | (1,002) | ||||||||
Comprehensive income | (3,510) | (5,098) | (785) | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | (3,510) | (5,098) | (785) | ||||||||
Income (loss) from continuing operations, net of taxes | 523 | ||||||||||
Income from discontinued operations, net of taxes | (1,525) | ||||||||||
Eliminations [Member] | Franchise fees | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | (18) | (17) | (10) | ||||||||
Eliminations [Member] | Base and other management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations [Member] | Incentive management fees [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations [Member] | Owned and leased hotels [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Expenses | 0 | 0 | 0 | ||||||||
Eliminations [Member] | Other revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | (7) | 0 | ||||||||
Eliminations [Member] | Total revenues excluding reimbursable revenues [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | (18) | (24) | (10) | ||||||||
Eliminations [Member] | Other revenues from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations [Member] | Other expenses from managed and franchised properties [member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Expenses | $ 0 | $ 0 | $ 0 |
Condensed Consolidating Guara_5
Condensed Consolidating Guarantor Financial Information - Condensed Cash Flow Statement (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | $ 1,255 | $ 849 | $ 1,310 | |
Capital expenditures for property and equipment | (72) | (58) | (317) | |
Payments received on other financing receivables | 50 | 7 | 3 | |
Issuance of intercompany receivables | 0 | |||
Payments received on intercompany receivables | 0 | |||
Capitalized software costs | (87) | (75) | (81) | |
Other | (22) | (21) | (28) | |
Net cash used in investing activities | (131) | (147) | (423) | |
Borrowings | 1,676 | 1,824 | 4,715 | |
Repayment of debt | (1,005) | (1,860) | (4,359) | |
Debt issuance costs and redemption premium | (21) | (69) | (76) | |
Intercompany borrowings | 0 | |||
Repayment of intercompany borrowings | 0 | 0 | ||
Intercompany transfers | 0 | 0 | 0 | |
Dividends paid | (181) | (195) | (277) | |
Intercompany dividends | 0 | 0 | ||
Cash transferred in spin-offs of Park and HGV | 0 | 501 | 0 | |
Repurchases of common stock | (1,721) | (891) | 0 | |
Distributions to noncontrolling interests | (1) | (1) | (32) | |
Tax withholdings on share-based compensation | (44) | (31) | (15) | |
Acquisition of noncontrolling interest | (3) | 0 | 0 | |
Net cash provided by (used) in financing activities | (1,300) | (1,724) | (44) | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (10) | 8 | (15) | |
Net increase (decrease) in cash, restricted cash and cash equivalents | (186) | (1,014) | 828 | |
Cash, restricted cash and cash equivalents from continuing operations | 484 | 670 | 1,183 | $ 633 |
Cash, restricted cash and cash equivalents from discontinued operations | 0 | 0 | 501 | 223 |
Cash, restricted cash and cash equivalents | 484 | 670 | 1,684 | 856 |
Parent Company [member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 0 | 0 | 0 | |
Capital expenditures for property and equipment | 0 | 0 | 0 | |
Payments received on other financing receivables | 0 | 0 | 0 | |
Issuance of intercompany receivables | 0 | |||
Payments received on intercompany receivables | 0 | |||
Capitalized software costs | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | 0 | |
Borrowings | 0 | 0 | 0 | |
Repayment of debt | 0 | 0 | 0 | |
Debt issuance costs and redemption premium | 0 | 0 | 0 | |
Intercompany borrowings | 0 | |||
Repayment of intercompany borrowings | 0 | 0 | ||
Intercompany transfers | 1,902 | 1,086 | 277 | |
Dividends paid | (181) | (195) | (277) | |
Intercompany dividends | 0 | 0 | ||
Cash transferred in spin-offs of Park and HGV | 0 | |||
Repurchases of common stock | (1,721) | (891) | ||
Distributions to noncontrolling interests | 0 | 0 | 0 | |
Tax withholdings on share-based compensation | 0 | 0 | 0 | |
Acquisition of noncontrolling interest | 0 | |||
Net cash provided by (used) in financing activities | 0 | 0 | 0 | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 | |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents from continuing operations | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations | 0 | 0 | ||
Cash, restricted cash and cash equivalents | 0 | 0 | 0 | 0 |
HWF Issuers [member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (185) | (113) | (37) | |
Capital expenditures for property and equipment | 0 | 0 | 0 | |
Payments received on other financing receivables | 0 | 0 | 0 | |
Issuance of intercompany receivables | 0 | |||
Payments received on intercompany receivables | 0 | |||
Capitalized software costs | 0 | 0 | 0 | |
Other | 0 | (13) | (6) | |
Net cash used in investing activities | 0 | (13) | (6) | |
Borrowings | 175 | 1,822 | 0 | |
Repayment of debt | (985) | (1,852) | (266) | |
Debt issuance costs and redemption premium | 0 | (69) | (17) | |
Intercompany borrowings | 0 | |||
Repayment of intercompany borrowings | 0 | 0 | ||
Intercompany transfers | 995 | 225 | 326 | |
Dividends paid | 0 | 0 | 0 | |
Intercompany dividends | 0 | 0 | ||
Cash transferred in spin-offs of Park and HGV | 0 | |||
Repurchases of common stock | 0 | 0 | ||
Distributions to noncontrolling interests | 0 | 0 | 0 | |
Tax withholdings on share-based compensation | 0 | 0 | 0 | |
Acquisition of noncontrolling interest | 0 | |||
Net cash provided by (used) in financing activities | 185 | 126 | 43 | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 | |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents from continuing operations | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations | 0 | 0 | ||
Cash, restricted cash and cash equivalents | 0 | 0 | 0 | 0 |
HOC [member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (8) | (103) | 0 | |
Capital expenditures for property and equipment | (9) | (12) | 0 | |
Payments received on other financing receivables | 0 | 0 | 0 | |
Issuance of intercompany receivables | 0 | |||
Payments received on intercompany receivables | 0 | |||
Capitalized software costs | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | |
Net cash used in investing activities | (9) | (12) | 0 | |
Borrowings | 1,500 | 0 | 1,000 | |
Repayment of debt | 0 | 0 | 0 | |
Debt issuance costs and redemption premium | (21) | 0 | (20) | |
Intercompany borrowings | 0 | |||
Repayment of intercompany borrowings | (3) | 0 | ||
Intercompany transfers | (1,444) | 122 | (890) | |
Dividends paid | 0 | 0 | 0 | |
Intercompany dividends | 0 | |||
Cash transferred in spin-offs of Park and HGV | 0 | |||
Repurchases of common stock | 0 | 0 | ||
Distributions to noncontrolling interests | 0 | 0 | 0 | |
Tax withholdings on share-based compensation | (44) | (31) | 0 | |
Acquisition of noncontrolling interest | 0 | |||
Net cash provided by (used) in financing activities | (9) | 88 | 90 | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 | |
Net increase (decrease) in cash, restricted cash and cash equivalents | (26) | (27) | 90 | |
Cash, restricted cash and cash equivalents from continuing operations | 63 | 90 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations | 0 | 0 | ||
Cash, restricted cash and cash equivalents | 37 | 63 | 90 | 0 |
Guarantor Subsidiaries [member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 1,267 | 950 | 866 | |
Capital expenditures for property and equipment | (7) | (12) | (9) | |
Payments received on other financing receivables | 49 | 7 | 2 | |
Issuance of intercompany receivables | (192) | |||
Payments received on intercompany receivables | 192 | |||
Capitalized software costs | (87) | (75) | (73) | |
Other | (6) | (8) | (37) | |
Net cash used in investing activities | (51) | (88) | (117) | |
Borrowings | 0 | 0 | 0 | |
Repayment of debt | 0 | 0 | 0 | |
Debt issuance costs and redemption premium | 0 | 0 | 0 | |
Intercompany borrowings | 42 | |||
Repayment of intercompany borrowings | 0 | 0 | ||
Intercompany transfers | (1,209) | (865) | (854) | |
Dividends paid | 0 | 0 | 0 | |
Intercompany dividends | 0 | 0 | ||
Cash transferred in spin-offs of Park and HGV | 0 | |||
Repurchases of common stock | 0 | 0 | ||
Distributions to noncontrolling interests | 0 | 0 | 0 | |
Tax withholdings on share-based compensation | 0 | 0 | (15) | |
Acquisition of noncontrolling interest | (3) | |||
Net cash provided by (used) in financing activities | (1,212) | (865) | (827) | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 | |
Net increase (decrease) in cash, restricted cash and cash equivalents | 4 | (3) | (78) | |
Cash, restricted cash and cash equivalents from continuing operations | 28 | 31 | 109 | |
Cash, restricted cash and cash equivalents from discontinued operations | 0 | 0 | ||
Cash, restricted cash and cash equivalents | 32 | 28 | 31 | 109 |
Non-Guarantor Subsidiaries [member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 181 | 285 | 1,086 | |
Capital expenditures for property and equipment | (56) | (34) | (308) | |
Payments received on other financing receivables | 1 | 0 | 1 | |
Issuance of intercompany receivables | (42) | |||
Payments received on intercompany receivables | 0 | |||
Capitalized software costs | 0 | 0 | (8) | |
Other | (16) | 3 | 15 | |
Net cash used in investing activities | (71) | (31) | (342) | |
Borrowings | 1 | 2 | 3,715 | |
Repayment of debt | (20) | (8) | (4,093) | |
Debt issuance costs and redemption premium | 0 | 0 | (39) | |
Intercompany borrowings | 192 | |||
Repayment of intercompany borrowings | 0 | (192) | ||
Intercompany transfers | (244) | (568) | 1,141 | |
Dividends paid | 0 | 0 | 0 | |
Intercompany dividends | (170) | (605) | ||
Cash transferred in spin-offs of Park and HGV | 501 | |||
Repurchases of common stock | 0 | 0 | ||
Distributions to noncontrolling interests | (1) | (1) | (32) | |
Tax withholdings on share-based compensation | 0 | 0 | 0 | |
Acquisition of noncontrolling interest | 0 | |||
Net cash provided by (used) in financing activities | (264) | (1,246) | 87 | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (10) | 8 | (15) | |
Net increase (decrease) in cash, restricted cash and cash equivalents | (164) | (984) | 816 | |
Cash, restricted cash and cash equivalents from continuing operations | 579 | 1,062 | 524 | |
Cash, restricted cash and cash equivalents from discontinued operations | 501 | 223 | ||
Cash, restricted cash and cash equivalents | 415 | 579 | 1,563 | 747 |
Eliminations [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 0 | (170) | (605) | |
Capital expenditures for property and equipment | 0 | 0 | 0 | |
Payments received on other financing receivables | 0 | 0 | 0 | |
Issuance of intercompany receivables | 234 | |||
Payments received on intercompany receivables | (192) | |||
Capitalized software costs | 0 | 0 | 0 | |
Other | 0 | (3) | 0 | |
Net cash used in investing activities | 0 | (3) | (42) | |
Borrowings | 0 | 0 | 0 | |
Repayment of debt | 0 | 0 | 0 | |
Debt issuance costs and redemption premium | 0 | 0 | 0 | |
Intercompany borrowings | (234) | |||
Repayment of intercompany borrowings | 3 | 192 | ||
Intercompany transfers | 0 | 0 | 0 | |
Dividends paid | 0 | 0 | 0 | |
Intercompany dividends | 170 | 605 | ||
Cash transferred in spin-offs of Park and HGV | 0 | |||
Repurchases of common stock | 0 | 0 | ||
Distributions to noncontrolling interests | 0 | 0 | 0 | |
Tax withholdings on share-based compensation | 0 | 0 | 0 | |
Acquisition of noncontrolling interest | 0 | |||
Net cash provided by (used) in financing activities | 0 | 173 | 563 | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 | |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents from continuing operations | 0 | 0 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations | 0 | 0 | ||
Cash, restricted cash and cash equivalents | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidating Guara_6
Condensed Consolidating Guarantor Financial Information - Additional Information (Details) | Dec. 31, 2018Rate |
HOC [member] | |
Condensed Financial Statements, Captions [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
HWF Issuers [member] | |
Condensed Financial Statements, Captions [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Hilton Worldwide Parent [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Domestic Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Equity Method Investment, Ownership Percentage | 100.00% |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||||
Quarterly Financial Information Disclosure (unaudited) [Abstract] | |||||||||||||||||||||
Revenues | $ 2,288 | $ 2,253 | $ 2,291 | $ 2,074 | $ 2,068 | $ 2,091 | $ 2,076 | $ 1,896 | $ 8,906 | $ 8,131 | $ 6,576 | ||||||||||
Operating income | 362 | 385 | 406 | 279 | 259 | 332 | 324 | 217 | 1,432 | 1,132 | 868 | ||||||||||
Net income | 225 | 164 | 217 | 163 | 730 | 160 | 151 | 48 | 769 | 1,089 | 354 | ||||||||||
Net income attributable to Hilton stockholders | $ 224 | $ 162 | $ 217 | $ 161 | $ 729 | $ 158 | $ 150 | $ 47 | $ 764 | $ 1,084 | $ 338 | ||||||||||
Net income per share, basic | $ 0.76 | [1] | $ 0.55 | [1] | $ 0.72 | [1] | $ 0.51 | [1] | $ 2.29 | [1] | $ 0.49 | [1] | $ 0.46 | [1] | $ 0.14 | [1] | $ 2.53 | [1] | $ 3.34 | [1] | $ 1.03 |
Net income per share, diluted | $ 0.75 | [1] | $ 0.54 | [1] | $ 0.71 | [1] | $ 0.51 | [1] | $ 2.27 | [1] | $ 0.49 | [1] | $ 0.46 | [1] | $ 0.14 | [1] | $ 2.50 | [1] | $ 3.32 | [1] | $ 1.03 |
[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. |