Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 29, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-13881 | |
Entity Registrant Name | MARRIOTT INTERNATIONAL INC /MD/ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-2055918 | |
Entity Address, Address Line One | 10400 Fernwood Road | |
Entity Address, City or Town | Bethesda | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20817 | |
City Area Code | 301 | |
Local Phone Number | 380-3000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 324,255,928 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001048286 | |
Current Fiscal Year End Date | --12-31 | |
Nasdaq Global Select Market | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | MAR | |
Security Exchange Name | NASDAQ | |
Chicago Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | MAR | |
Security Exchange Name | CHX |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
REVENUES | ||
Revenues | $ 4,681 | $ 5,012 |
OPERATING COSTS AND EXPENSES | ||
Depreciation, amortization, and other | 150 | 54 |
General, administrative, and other | 270 | 222 |
Merger-related costs and (recoveries) charges | (2) | 9 |
Costs and expenses | 4,567 | 4,502 |
OPERATING INCOME | 114 | 510 |
(Losses) gains and other income, net | (4) | 5 |
Interest expense | (93) | (97) |
Interest income | 6 | 6 |
Equity in (losses) earnings | (4) | 8 |
INCOME BEFORE INCOME TAXES | 19 | 432 |
Benefit (provision) for income taxes | 12 | (57) |
NET INCOME | $ 31 | $ 375 |
EARNINGS PER SHARE | ||
Earnings per share - basic (in USD per share) | $ 0.10 | $ 1.10 |
Earnings per share - diluted (in USD per share) | $ 0.09 | $ 1.09 |
Base management fees | ||
REVENUES | ||
Gross revenues | $ 214 | $ 282 |
Franchise fees | ||
REVENUES | ||
Gross revenues | 415 | 450 |
Incentive management fees | ||
REVENUES | ||
Gross revenues | 0 | 163 |
Fee revenues | ||
REVENUES | ||
Gross revenues | 629 | 895 |
Contract investment amortization | (25) | (14) |
Revenues | 604 | 881 |
Owned, leased, and other | ||
REVENUES | ||
Revenues | 280 | 375 |
OPERATING COSTS AND EXPENSES | ||
Operating costs | 272 | 325 |
Reimbursements | ||
REVENUES | ||
Revenues | 3,797 | 3,756 |
OPERATING COSTS AND EXPENSES | ||
Operating costs | $ 3,877 | $ 3,892 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 31 | $ 375 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments | (383) | 33 |
Derivative instrument adjustments and other, net of tax | 13 | (1) |
Reclassification of gains, net of tax | (8) | (1) |
Net other comprehensive (loss) income | (378) | 31 |
Comprehensive (loss) income | $ (347) | $ 406 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and equivalents | $ 1,760 | $ 225 |
Accounts and notes receivable, net | 2,068 | 2,395 |
Prepaid expenses and other | 213 | 252 |
Assets held for sale | 8 | 255 |
Assets, current, total | 4,049 | 3,127 |
Property and equipment, net | 1,854 | 1,904 |
Intangible assets | ||
Goodwill | 8,901 | 9,048 |
Goodwill and intangible assets, net, total | 17,387 | 17,689 |
Equity method investments | 562 | 577 |
Notes receivable, net | 144 | 117 |
Deferred tax assets | 155 | 154 |
Operating lease assets | 782 | 888 |
Other noncurrent assets | 616 | 595 |
Total assets | 25,549 | 25,051 |
Current liabilities | ||
Current portion of long-term debt | 1,664 | 977 |
Accounts payable | 828 | 720 |
Accrued payroll and benefits | 1,211 | 1,339 |
Accrued expenses and other | 1,263 | 1,383 |
Liabilities, current, total | 6,516 | 6,677 |
Long-term debt | 10,569 | 9,963 |
Deferred tax liabilities | 212 | 290 |
Operating lease liabilities | 846 | 882 |
Other noncurrent liabilities | 2,270 | 2,236 |
Shareholders’ (deficit) equity | ||
Class A Common Stock | 5 | 5 |
Additional paid-in-capital | 5,711 | 5,800 |
Retained earnings | 9,504 | 9,644 |
Treasury stock, at cost | (14,501) | (14,385) |
Accumulated other comprehensive loss | (739) | (361) |
Stockholders' Equity Attributable to Parent | (20) | 703 |
Liabilities and equity (deficit), total | 25,549 | 25,051 |
Brands | ||
Intangible assets | ||
Intangible assets | 5,839 | 5,954 |
Contract acquisition costs and other | ||
Intangible assets | ||
Intangible assets | 2,647 | 2,687 |
Liability for guest loyalty program | ||
Current liabilities | ||
Liability for guest loyalty program | 1,550 | 2,258 |
Contract with customer liabilities | 4,294 | 3,460 |
Deferred revenue | ||
Current liabilities | ||
Contract with customer liabilities | $ 862 | $ 840 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
OPERATING ACTIVITIES | |||
Net income | $ 31 | $ 375 | |
Adjustments to reconcile to cash provided by operating activities: | |||
Depreciation, amortization, and other | 175 | 68 | |
Share-based compensation | 41 | 40 | |
Income taxes | (71) | (7) | |
Contract acquisition costs | (39) | (56) | |
Merger-related charges | (12) | (10) | |
Working capital changes | 245 | (401) | |
Gain on asset dispositions | 0 | (4) | |
Other | 18 | 94 | |
Net cash provided by operating activities | 514 | 151 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (59) | (66) | |
Dispositions | 260 | 2 | |
Loan advances | (32) | 0 | |
Loan collections | 4 | 4 | |
Other | (8) | (28) | |
Net cash provided by (used in) investing activities | 165 | (88) | |
FINANCING ACTIVITIES | |||
Commercial paper/Credit Facility, net | 1,317 | 665 | |
Issuance of long-term debt | 0 | 841 | |
Repayment of long-term debt | (66) | (603) | |
Issuance of Class A Common Stock | 0 | 5 | |
Dividends paid | (156) | (139) | |
Purchase of treasury stock | (150) | (797) | |
Share-based compensation withholding taxes | (95) | (95) | |
Net cash provided by (used in) financing activities | 850 | (123) | |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 1,529 | (60) | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | [1] | 253 | 360 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | [1] | 1,782 | 300 |
Liability for guest loyalty program | |||
Adjustments to reconcile to cash provided by operating activities: | |||
Liability for guest loyalty program | $ 126 | $ 52 | |
[1] | The 2020 amounts include beginning restricted cash of $28 million at December 31, 2019 , and ending restricted cash of $22 million at March 31, 2020 , which we present in the “Prepaid expenses and other” and “Other noncurrent assets” captions of our Balance Sheets. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 22 | $ 28 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The condensed consolidated financial statements present the results of operations, financial position, and cash flows of Marriott International, Inc. and subsidiaries (referred to in this report as “we,” “us,” “Marriott,” or “the Company”). In order to make this report easier to read, we also refer throughout to (i) our Condensed Consolidated Financial Statements as our “Financial Statements,” (ii) our Condensed Consolidated Statements of Income as our “Income Statements,” (iii) our Condensed Consolidated Balance Sheets as our “Balance Sheets,” (iv) our Condensed Consolidated Statements of Cash Flows as our “Statements of Cash Flows,” (v) our properties, brands, or markets in the United States (“U.S.”) and Canada as “North America” or “North American,” and (vi) our properties, brands, or markets in our Caribbean and Latin America region, Europe, Middle East and Africa segment, and Asia Pacific segment, as “International.” In addition, references throughout to numbered “Notes” refer to these Notes to Condensed Consolidated Financial Statements, unless otherwise stated. These Financial Statements have not been audited. We have condensed or omitted certain information and disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (“ 2019 Form 10-K ”). Certain terms not otherwise defined in this Form 10-Q have the meanings specified in our 2019 Form 10-K . Preparation of financial statements that conform with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. The uncertainty created by the coronavirus and efforts to contain it (“COVID-19”) has made such estimates more difficult and subjective. Accordingly, ultimate results could differ from those estimates. The accompanying Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position as of March 31, 2020 and December 31, 2019 , the results of our operations for the three months ended March 31, 2020 and March 31, 2019 , and cash flows for the three months ended March 31, 2020 and March 31, 2019 . Interim results may not be indicative of fiscal year performance because of seasonal and short-term variations, as well as the impact of COVID-19. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements. New Accounting Standards Adopted Accounting Standards Update (“ASU”) No. 2016-13 - “Financial Instruments-Credit Losses” (Topic 326). ASU 2016-13 requires the use of an impairment methodology that reflects an estimate of expected credit losses, measured over the contractual life of an instrument, based on information about past events, current conditions, and forecasts of future economic conditions. We adopted ASU 2016-13 in the 2020 first quarter using the modified retrospective transition method. Upon adoption, we increased our allowance for credit losses in the “Accounts and notes receivable, net” caption of our Balance Sheets by $19 million , from $82 million at December 31, 2019 to $101 million at January 1, 2020. We also recorded a $4 million decrease in the “Deferred tax liabilities” caption of our Balance Sheets and a $15 million cumulative-effect adjustment to retained earnings on our Balance Sheets. In the 2020 first quarter , we further increased our allowance for credit losses by $78 million , primarily due to the negative economic impact caused by COVID-19 and our estimate of future economic conditions. The allowance for credit losses was $178 million at March 31, 2020. |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2020 | |
Acquisitions and Disposal Groups, Including Discontinued Operations [Abstract] | |
Dispositions | DISPOSITIONS In the 2020 first quarter , we sold a North America property for $268 million . We will continue to operate the hotel under a long-term management agreement. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The table below presents the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share: Three Months Ended (in millions, except per share amounts) March 31, 2020 March 31, 2019 Computation of Basic Earnings Per Share Net income $ 31 $ 375 Shares for basic earnings per share 325.4 339.6 Basic earnings per share $ 0.10 $ 1.10 Computation of Diluted Earnings Per Share Net income $ 31 $ 375 Shares for basic earnings per share 325.4 339.6 Effect of dilutive securities Share-based compensation 2.0 3.2 Shares for diluted earnings per share 327.4 342.8 Diluted earnings per share $ 0.09 $ 1.09 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We granted 1.6 million restricted stock units (“RSUs”) during the 2020 first quarter to certain officers and key employees, and those units vest generally over four years in equal annual installments commencing one year after the grant date. We also granted 0.1 million performance-based RSUs (“PSUs”) in the 2020 first quarter to certain executive officers, which are earned, subject to continued employment and the satisfaction of certain performance conditions based on achievement of pre-established targets for gross room openings, active Marriott Bonvoy™ loyalty member growth, and adjusted operating income growth over, or at the end of, a three -year performance period. RSUs, including PSUs, granted in the 2020 first quarter had a weighted average grant-date fair value of $112 per unit. We recorded share-based compensation expense for RSUs and PSUs of $38 million in the 2020 first quarter and $38 million in the 2019 first quarter . Deferred compensation costs for unvested awards for RSUs and PSUs totaled $318 million at March 31, 2020 and $176 million at December 31, 2019 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rate was a benefit of 63.5 percent for the 2020 first quarter compared to a provision of 13.2 percent for the 2019 first quarter . The decrease in our effective tax rate was primarily due to a more favorable impact from stock based compensation as a percentage of lower pre-tax book income. We paid cash for income taxes, net of refunds, of $59 million in the 2020 first quarter and $64 million in the 2019 first quarter |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees We present the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for our debt service, operating profit, and other guarantees (excluding contingent purchase obligations) for which we are the primary obligor at March 31, 2020 in the following table: ($ in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 53 $ 6 Operating profit 225 153 Other 14 3 $ 292 $ 162 Our guarantees listed in the preceding table include $76 million of guarantees that will not be in effect until the underlying properties open and we begin to operate the properties or certain other events occur. Contingent Purchase Obligation Sheraton Grand Chicago . We granted the owner a one-time right, exercisable in 2022, to require us to purchase the leasehold interest in the land and the hotel for $300 million in cash (the “put option”). If the owner exercises the put option, we have the option to purchase, at the same time the put transaction closes, the fee simple interest in the underlying land for an additional $200 million in cash. We accounted for the put option as a guarantee, and our recorded liability at March 31, 2020 was $57 million . Starwood Data Security Incident Description of Event On November 30, 2018, we announced a data security incident involving unauthorized access to the Starwood reservations database (the “Data Security Incident”). Working with leading security experts, we determined that there was unauthorized access to the Starwood network since 2014 and that an unauthorized party had copied information from the Starwood reservations database and taken steps towards removing it. The Starwood reservations database is no longer used for business operations . Expenses and Insurance Recoveries In the 2020 first quarter , we recorded $15 million of expenses and $17 million of accrued insurance recoveries, and in the 2019 first quarter , we recorded $44 million of expenses and $46 million of accrued insurance recoveries, related to the Data Security Incident. We received insurance recoveries of $24 million in the 2020 first quarter and $40 million in the 2019 first quarter . Expenses in the 2020 first quarter primarily included legal costs. We recognize insurance recoveries when they are probable of receipt and present them in our Income Statements in the same caption as the related expense, up to the amount of total expense incurred in prior and current periods. We present expenses and insurance recoveries related to the Data Security Incident in either the “Reimbursed expenses” or “Merger-related costs and (recoveries) charges” captions of our Income Statements. Litigation, Claims, and Government Investigations Following our announcement of the Data Security Incident, approximately 100 lawsuits were filed by consumers and others against us in U.S. federal, U.S. state and Canadian courts related to the incident. All but one of the U.S. cases have been consolidated and transferred to the U.S. District Court for the District of Maryland, pursuant to orders of the U.S. Judicial Panel on Multidistrict Litigation (the “MDL”). The plaintiffs in the U.S. and Canadian cases, who generally purport to represent various classes of consumers, generally claim to have been harmed by alleged actions and/or omissions by the Company in connection with the Data Security Incident and assert a variety of common law and statutory claims seeking monetary damages, injunctive relief, costs and attorneys’ fees, and other related relief. Among the U.S. cases consolidated in the MDL proceeding is a putative class action lawsuit that was filed against us and certain of our current officers and directors on December 1, 2018, alleging violations of the federal securities laws in connection with statements regarding our cybersecurity systems and controls, and seeking certification of a class of affected persons, unspecified monetary damages, costs and attorneys’ fees, and other related relief. The MDL proceeding also includes two shareholder derivative complaints that were filed on February 26, 2019 and March 15, 2019, respectively, against the Company, certain of its officers and certain of the members of our Board of Directors, alleging, among other claims, breach of fiduciary duty, corporate waste, unjust enrichment, mismanagement and violations of the federal securities laws, and seeking unspecified monetary damages and restitution, changes to the Company’s corporate governance and internal procedures, costs and attorneys’ fees, and other related relief. A third shareholder derivative complaint was filed in the Delaware Court of Chancery on December 3, 2019 against the Company and certain of its officers and certain current and former members of our Board of Directors, alleging claims and seeking relief generally similar to the claims made and relief sought in the other two derivative cases. This case will not be consolidated with the MDL proceeding. We dispute the allegations in the lawsuits described above and are vigorously defending against such claims. We have filed motions to dismiss several of these cases, some of which have been denied, but the cases generally remain at an early stage. There has been some consolidation of the Canadian cases, with five cases now pending across five provinces, and we expect there could be further consolidation in the future. In addition, in April 2019, we received a letter purportedly on behalf of a shareholder of the Company (also one of the named plaintiffs in the putative securities class action described above) demanding that our Board of Directors take action against the Company’s current and certain former officers and directors to recover damages for alleged breaches of fiduciary duties and related claims arising from the Data Security Incident. The Board of Directors has constituted a demand review committee to investigate the claims made in the demand letter, and the committee has retained independent counsel to assist with the investigation. The committee’s investigation is ongoing. In addition, numerous U.S. federal, U.S. state and foreign governmental authorities are investigating, or otherwise seeking information and/or documents related to, the Data Security Incident and related matters, including Attorneys General offices from all 50 states and the District of Columbia, the Federal Trade Commission, the Securities and Exchange Commission, certain committees of the U.S. Senate and House of Representatives, the Information Commissioner’s Office in the United Kingdom (the “ICO”) as lead supervisory authority in the European Economic Area, and regulatory authorities in various other jurisdictions. In July 2019, the ICO issued a formal notice of intent under the U.K. Data Protection Act 2018 proposing a fine in the amount of £99 million against the Company in relation to the Data Security Incident (the “Proposed ICO Fine”). In late August 2019, we submitted a written response to the ICO vigorously defending our position, and we have continued to engage with the ICO regarding the Data Security Incident and Proposed ICO Fine. We mutually agreed with the ICO to an extension of the regulatory process until September 30, 2020 and the ICO proceeding is ongoing. Our accrual for this loss contingency, which we present in the “Accrued expenses and other” caption of our Balance Sheets, of $65 million at December 31, 2019, remained unchanged at March 31, 2020. While we believe it is reasonably possible that we may incur additional losses associated with the above described proceedings and investigations related to the Data Security Incident, it is not possible to estimate the amount of loss or range of loss, if any, in excess of the amounts already incurred that might result from adverse judgments, settlements, fines, penalties, or other resolution of these proceedings and investigations based on the current stage of these proceedings and investigations, the absence of specific allegations as to alleged damages, the uncertainty as to the certification of a class or classes and the size of any certified class, if applicable, and/or the lack of resolution of significant factual and legal issues. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES The following table presents our future minimum lease payments as of March 31, 2020 : ($ in millions) Operating Leases Finance Leases 2020 , remaining $ 135 $ 10 2021 171 13 2022 166 13 2023 115 13 2024 106 14 Thereafter 570 151 Total minimum lease payments $ 1,263 $ 214 Less: Amount representing interest (280 ) (58 ) Present value of minimum lease payments $ 983 $ 156 Current (1) 137 6 Noncurrent (2) 846 150 $ 983 $ 156 (1) Operating leases recorded in the “Accrued expenses and other” and finance leases recorded in the “Current portion of long-term debt” captions of our Balance Sheets. (2) Operating leases recorded in the “Operating lease liabilities” and finance leases recorded in the “Long-term debt” captions of our Balance Sheets. As of March 31, 2020 , we had entered into an agreement that we expect to account for as an operating lease with a 20 -year term for our new headquarters office, which is not reflected in our Balance Sheets or in the table above as the lease has not commenced. In the 2020 first quarter , we recorded impairment charges of $74 million for right-of-use assets and $16 million for property and equipment, including leasehold improvements, in the “Depreciation, amortization, and other” caption of our Income Statements relating to the impact of COVID-19 on several North America leased hotels. We determined that we may not be able to fully recover the carrying amount of these North America hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates, and demand trends. |
Leases | LEASES The following table presents our future minimum lease payments as of March 31, 2020 : ($ in millions) Operating Leases Finance Leases 2020 , remaining $ 135 $ 10 2021 171 13 2022 166 13 2023 115 13 2024 106 14 Thereafter 570 151 Total minimum lease payments $ 1,263 $ 214 Less: Amount representing interest (280 ) (58 ) Present value of minimum lease payments $ 983 $ 156 Current (1) 137 6 Noncurrent (2) 846 150 $ 983 $ 156 (1) Operating leases recorded in the “Accrued expenses and other” and finance leases recorded in the “Current portion of long-term debt” captions of our Balance Sheets. (2) Operating leases recorded in the “Operating lease liabilities” and finance leases recorded in the “Long-term debt” captions of our Balance Sheets. As of March 31, 2020 , we had entered into an agreement that we expect to account for as an operating lease with a 20 -year term for our new headquarters office, which is not reflected in our Balance Sheets or in the table above as the lease has not commenced. In the 2020 first quarter , we recorded impairment charges of $74 million for right-of-use assets and $16 million for property and equipment, including leasehold improvements, in the “Depreciation, amortization, and other” caption of our Income Statements relating to the impact of COVID-19 on several North America leased hotels. We determined that we may not be able to fully recover the carrying amount of these North America hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates, and demand trends. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table at the end of the 2020 first quarter and year-end 2019 : At Period End ($ in millions) March 31, December 31, Senior Notes: Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 349 349 Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 350 349 Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 399 398 Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 449 449 Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 346 346 Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 747 747 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 744 744 Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 291 291 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 332 332 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 291 291 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 444 444 Series Y Notes, floating rate, face amount of $550, maturing December 1, 2020 (effective interest rate of 2.2% at March 31, 2020) 549 549 Series Z Notes, interest rate of 4.2%, face amount of $350, maturing December 1, 2023 (effective interest rate of 4.4%) 348 347 Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) 297 297 Series BB Notes, floating rate, face amount of $300, maturing March 8, 2021 (effective interest rate of 1.6% at March 31, 2020) 299 299 Series CC Notes, interest rate of 3.6%, face amount of $550, maturing April 15, 2024 (effective interest rate of 3.9%) 591 564 Series DD Notes, interest rate of 2.1%, face amount of $550, maturing October 3, 2022 (effective interest rate of 2.4%) 561 543 Commercial paper 2,011 3,197 Credit Facility 2,500 — Finance lease obligations 156 157 Other 179 247 $ 12,233 $ 10,940 Less: Current portion of long-term debt (1,664 ) (977 ) $ 10,569 $ 9,963 We paid cash for interest, net of amounts capitalized, of $63 million in the 2020 first quarter and $70 million in the 2019 first quarter . We are party to a multicurrency revolving credit agreement (as amended, the “Credit Facility”) that provides for up to $4.5 billion of aggregate effective borrowings to support our commercial paper program and general corporate needs, including working capital, capital expenditures, letters of credit, and acquisitions. Borrowings under the Credit Facility generally bear interest at LIBOR (the London Interbank Offered Rate) plus a spread based on our public debt rating. We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating. We classify outstanding borrowings under the Credit Facility and outstanding commercial paper borrowings as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis. The Credit Facility expires on June 28, 2024. We borrowed $2.5 billion under the Credit Facility in late March 2020 and another $2.0 billion in early April 2020, resulting in the Credit Facility being fully drawn as of April 2, 2020, with a total of $4.5 billion outstanding. On May 1, 2020, we repaid $1.25 billion , reducing the total outstanding borrowings under the Credit Facility to $3.25 billion as of May 1, 2020. Our borrowings under the Credit Facility were to increase our cash position and preserve financial flexibility in light of the impact on global markets resulting from COVID-19. Remaining proceeds from the Credit Facility borrowings may be used to repay commercial paper when it matures and for general corporate or other purposes permitted by the Credit Facility. In April 2020, we entered into an amendment to the Credit Facility. The amendment waives the quarterly-tested leverage covenant in the Credit Facility through and including the first quarter of 2021 (which waiver period may end sooner at our election), adjusts the required leverage levels for the covenant when it is re-imposed at the end of the waiver period, and imposes a new monthly-tested liquidity covenant for the duration of the waiver period. The amendment also makes certain other amendments to the terms of the Credit Facility, including increasing the interest and fees payable on the Credit Facility for the duration of the period during which the waiver of the leverage covenant remains in effect, tightening certain existing covenants, and imposing additional covenants for the duration of the waiver period. These covenant changes include tightening the lien covenant and the covenant on dividends, share repurchases and distributions, and imposing new covenants limiting asset sales, investments and discretionary capital expenditures. In April 2020, we issued $1.6 billion aggregate principal amount of 5.750 percent Series EE Notes due May 1, 2025 (the “Series EE Notes”). We will pay interest on the Series EE Notes on May 1 and November 1 of each year, commencing on November 1, 2020. We received net proceeds of approximately $1.581 billion from the offering of the Series EE Notes, after deducting the underwriting discount and estimated expenses, which were made available for general corporate purposes. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. We present the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table: March 31, 2020 December 31, 2019 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior, mezzanine, and other loans $ 144 $ 138 $ 117 $ 112 Total noncurrent financial assets $ 144 $ 138 $ 117 $ 112 Senior Notes $ (5,740 ) $ (5,316 ) $ (6,441 ) $ (6,712 ) Commercial paper / Credit Facility (4,511 ) (4,511 ) (3,197 ) (3,197 ) Other long-term debt (168 ) (156 ) (174 ) (179 ) Other noncurrent liabilities (177 ) (177 ) (196 ) (196 ) Total noncurrent financial liabilities $ (10,596 ) $ (10,160 ) $ (10,008 ) $ (10,284 ) In the 2020 first quarter, we determined that the carrying value of our Credit Facility borrowings approximated fair value because they bear interest at a market rate. See Note 13. Fair Value of Financial Instruments and the “Fair Value Measurements” caption of Note 2. Summary of Significant Accounting Policies of our 2019 Form 10-K for more information on the input levels we use in determining fair value. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss and Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss and Shareholders' Equity | ACCUMULATED OTHER COMPREHENSIVE LOSS AND SHAREHOLDERS’ EQUITY The following tables detail the accumulated other comprehensive loss activity for the 2020 first quarter and 2019 first quarter : ($ in millions) Foreign Currency Translation Adjustments Derivative Instrument and Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2019 $ (368 ) $ 7 $ (361 ) Other comprehensive (loss) income before reclassifications (1) (383 ) 13 (370 ) Reclassification of gains — (8 ) (8 ) Net other comprehensive loss (383 ) 5 (378 ) Balance at March 31, 2020 $ (751 ) $ 12 $ (739 ) ($ in millions) Foreign Currency Translation Adjustments Derivative Instrument and Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2018 $ (403 ) $ 12 $ (391 ) Other comprehensive (loss) income before reclassifications (1) 33 (1 ) 32 Reclassification of losses — (1 ) (1 ) Net other comprehensive (loss) income 33 (2 ) 31 Balance at March 31, 2019 $ (370 ) $ 10 $ (360 ) (1) Other comprehensive (loss) income before reclassifications for foreign currency translation adjustments includes intra-entity foreign currency transactions that are of a long-term investment nature, which resulted in gains of $11 million for the 2020 first quarter and $8 million for the 2019 first quarter . The following tables detail the changes in common shares outstanding and shareholders’ (deficit) equity for the 2020 first quarter and 2019 first quarter : (in millions, except per share amounts) Common Shares Outstanding Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 324.0 Balance at year-end 2019 $ 703 $ 5 $ 5,800 $ 9,644 $ (14,385 ) $ (361 ) — Adoption of ASU 2016-13 (15 ) — — (15 ) — — — Net income 31 — — 31 — — — Other comprehensive income (378 ) — — — — (378 ) — Dividends ($0.48 per share) (156 ) — — (156 ) — — 1.2 Share-based compensation plans (55 ) — (89 ) — 34 — (1.0 ) Purchase of treasury stock (150 ) — — — (150 ) — 324.2 Balance at March 31, 2020 (20 ) 5 5,711 9,504 (14,501 ) (739 ) (in millions, except per share amounts) Common Shares Outstanding Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 339.1 Balance at year-end 2018 (as adjusted) 2,225 5 5,814 8,982 (12,185 ) (391 ) — Adoption of ASU 2016-02 1 — — 1 — — — Net income 375 — — 375 — — — Other comprehensive income 31 — — — — 31 — Dividends ($0.41 per share) (139 ) — — (139 ) — — 1.7 Share-based compensation plans (62 ) — (108 ) — 46 — (6.7 ) Purchase of treasury stock (828 ) — — — (828 ) — 334.1 Balance at March 31, 2019 1,603 5 5,706 9,219 (12,967 ) (360 ) |
Contracts with Customers
Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contracts with Customers | CONTRACTS WITH CUSTOMERS Our current and noncurrent Loyalty Program liability increased by $126 million , to $5,844 million at March 31, 2020 , from $5,718 million at December 31, 2019 , primarily reflecting an increase in points earned by members, partially offset by $462 million of revenue recognized in the 2020 first quarter , that was deferred as of December 31, 2019 . The current portion of our Loyalty Program liability decreased compared to December 31, 2019 due to lower estimated redemptions in the short-term as a result of COVID-19. In May 2020, we signed amendments to the existing agreements for our U.S.-issued co-brand credit cards associated with our Loyalty Program. These amendments provided the Company with $920 million of cash from the prepayment of certain future revenues, the early payment of a previously committed signing bonus, and the pre-purchase of Marriott Bonvoy points and other consideration. We will record the cash receipts in the deferred revenue and liability for guest loyalty program captions on our Balance Sheet. We will recognize revenue related to the license of our intellectual property as the credit cards are used and revenue related to the points and free night certificates as the points and free night certificates are redeemed. See the “Loyalty Program” caption of Note 2 of our 2019 Form 10-K for more information on our performance obligations. We did not recognize incentive management fees in the 2020 first quarter because there is significant uncertainty as to whether we will be entitled to such fees on a full year basis due to the impact of COVID-19 on future hotel performance. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS Beginning in the 2020 first quarter, we modified our segment structure due to a change in the way management evaluates results and allocates resources within the Company, resulting in the following operating segments: North America ; Asia Pacific ; Europe, Middle East and Africa (“ EMEA ”); and Caribbean and Latin America (“ CALA ”). Our CALA operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment. We revised the prior period amounts shown in the tables below to conform to our current presentation. We evaluate the performance of our operating segments using “segment profits” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, or merger-related costs and recoveries/charges. We assign gains and losses, equity in earnings or losses from our joint ventures, and direct general, administrative, and other expenses to each of our segments. “ Unallocated corporate and other ” includes a portion of our revenues, including license fees we receive from our credit card programs, fees from vacation ownership licensing agreements, revenues and expenses for our Loyalty Program, general, administrative, and other expenses, merger-related costs and recoveries/charges, equity in earnings or losses, and other gains or losses that we do not allocate to our segments as well as results of our CALA operating segment. Our President and Chief Executive Officer, who is our chief operating decision maker, monitors assets for the consolidated company but does not use assets by operating segment when assessing performance or making operating segment resource allocations. Segment Revenues The following tables present our revenues disaggregated by segment and major revenue stream for the 2020 first quarter and 2019 first quarter : Three Months Ended March 31, 2020 ($ in millions) North America Asia Pacific EMEA Total Gross fee revenues $ 406 $ 32 $ 46 $ 484 Contract investment amortization (19 ) (1 ) (4 ) (24 ) Net fee revenues 387 31 42 460 Owned, leased, and other revenue 102 31 91 224 Cost reimbursement revenue 3,331 107 211 3,649 Total reportable segment revenue $ 3,820 $ 169 $ 344 $ 4,333 Unallocated corporate and other 348 Total revenue $ 4,681 Three Months Ended March 31, 2019 ($ in millions) North America Asia Pacific EMEA Total Gross fee revenues $ 528 $ 118 $ 84 $ 730 Contract investment amortization (11 ) — (2 ) (13 ) Net fee revenues 517 118 82 717 Owned, leased, and other revenue 178 41 122 341 Cost reimbursement revenue 3,379 111 214 3,704 Total reportable segment revenue $ 4,074 $ 270 $ 418 $ 4,762 Unallocated corporate and other 250 Total revenue $ 5,012 Segment Profits and Losses Three Months Ended ($ in millions) March 31, 2020 March 31, 2019 North America $ 158 $ 491 Asia Pacific (10 ) 103 EMEA (37 ) 57 Unallocated corporate and other (5 ) (128 ) Interest expense, net of interest income (87 ) (91 ) Income taxes 12 (57 ) Net Income $ 31 $ 375 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Standards | New Accounting Standards Adopted |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Earnings and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share | The table below presents the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share: Three Months Ended (in millions, except per share amounts) March 31, 2020 March 31, 2019 Computation of Basic Earnings Per Share Net income $ 31 $ 375 Shares for basic earnings per share 325.4 339.6 Basic earnings per share $ 0.10 $ 1.10 Computation of Diluted Earnings Per Share Net income $ 31 $ 375 Shares for basic earnings per share 325.4 339.6 Effect of dilutive securities Share-based compensation 2.0 3.2 Shares for diluted earnings per share 327.4 342.8 Diluted earnings per share $ 0.09 $ 1.09 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings | We present the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for our debt service, operating profit, and other guarantees (excluding contingent purchase obligations) for which we are the primary obligor at March 31, 2020 in the following table: ($ in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 53 $ 6 Operating profit 225 153 Other 14 3 $ 292 $ 162 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Maturities of Finance Lease Liabilities | The following table presents our future minimum lease payments as of March 31, 2020 : ($ in millions) Operating Leases Finance Leases 2020 , remaining $ 135 $ 10 2021 171 13 2022 166 13 2023 115 13 2024 106 14 Thereafter 570 151 Total minimum lease payments $ 1,263 $ 214 Less: Amount representing interest (280 ) (58 ) Present value of minimum lease payments $ 983 $ 156 Current (1) 137 6 Noncurrent (2) 846 150 $ 983 $ 156 (1) Operating leases recorded in the “Accrued expenses and other” and finance leases recorded in the “Current portion of long-term debt” captions of our Balance Sheets. (2) |
Maturities of Operating Lease Liabilities | The following table presents our future minimum lease payments as of March 31, 2020 : ($ in millions) Operating Leases Finance Leases 2020 , remaining $ 135 $ 10 2021 171 13 2022 166 13 2023 115 13 2024 106 14 Thereafter 570 151 Total minimum lease payments $ 1,263 $ 214 Less: Amount representing interest (280 ) (58 ) Present value of minimum lease payments $ 983 $ 156 Current (1) 137 6 Noncurrent (2) 846 150 $ 983 $ 156 (1) Operating leases recorded in the “Accrued expenses and other” and finance leases recorded in the “Current portion of long-term debt” captions of our Balance Sheets. (2) Operating leases recorded in the “Operating lease liabilities” and finance leases recorded in the “Long-term debt” captions of our Balance Sheets. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table at the end of the 2020 first quarter and year-end 2019 : At Period End ($ in millions) March 31, December 31, Senior Notes: Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 349 349 Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 350 349 Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 399 398 Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 449 449 Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 346 346 Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 747 747 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 744 744 Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 291 291 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 332 332 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 291 291 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 444 444 Series Y Notes, floating rate, face amount of $550, maturing December 1, 2020 (effective interest rate of 2.2% at March 31, 2020) 549 549 Series Z Notes, interest rate of 4.2%, face amount of $350, maturing December 1, 2023 (effective interest rate of 4.4%) 348 347 Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) 297 297 Series BB Notes, floating rate, face amount of $300, maturing March 8, 2021 (effective interest rate of 1.6% at March 31, 2020) 299 299 Series CC Notes, interest rate of 3.6%, face amount of $550, maturing April 15, 2024 (effective interest rate of 3.9%) 591 564 Series DD Notes, interest rate of 2.1%, face amount of $550, maturing October 3, 2022 (effective interest rate of 2.4%) 561 543 Commercial paper 2,011 3,197 Credit Facility 2,500 — Finance lease obligations 156 157 Other 179 247 $ 12,233 $ 10,940 Less: Current portion of long-term debt (1,664 ) (977 ) $ 10,569 $ 9,963 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities | We present the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table: March 31, 2020 December 31, 2019 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior, mezzanine, and other loans $ 144 $ 138 $ 117 $ 112 Total noncurrent financial assets $ 144 $ 138 $ 117 $ 112 Senior Notes $ (5,740 ) $ (5,316 ) $ (6,441 ) $ (6,712 ) Commercial paper / Credit Facility (4,511 ) (4,511 ) (3,197 ) (3,197 ) Other long-term debt (168 ) (156 ) (174 ) (179 ) Other noncurrent liabilities (177 ) (177 ) (196 ) (196 ) Total noncurrent financial liabilities $ (10,596 ) $ (10,160 ) $ (10,008 ) $ (10,284 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss and Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) Activity | The following tables detail the accumulated other comprehensive loss activity for the 2020 first quarter and 2019 first quarter : ($ in millions) Foreign Currency Translation Adjustments Derivative Instrument and Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2019 $ (368 ) $ 7 $ (361 ) Other comprehensive (loss) income before reclassifications (1) (383 ) 13 (370 ) Reclassification of gains — (8 ) (8 ) Net other comprehensive loss (383 ) 5 (378 ) Balance at March 31, 2020 $ (751 ) $ 12 $ (739 ) ($ in millions) Foreign Currency Translation Adjustments Derivative Instrument and Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2018 $ (403 ) $ 12 $ (391 ) Other comprehensive (loss) income before reclassifications (1) 33 (1 ) 32 Reclassification of losses — (1 ) (1 ) Net other comprehensive (loss) income 33 (2 ) 31 Balance at March 31, 2019 $ (370 ) $ 10 $ (360 ) (1) Other comprehensive (loss) income before reclassifications for foreign currency translation adjustments includes intra-entity foreign currency transactions that are of a long-term investment nature, which resulted in gains of $11 million for the 2020 first quarter and $8 million for the 2019 first quarter . |
Changes in Shareholders' Equity | The following tables detail the changes in common shares outstanding and shareholders’ (deficit) equity for the 2020 first quarter and 2019 first quarter : (in millions, except per share amounts) Common Shares Outstanding Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 324.0 Balance at year-end 2019 $ 703 $ 5 $ 5,800 $ 9,644 $ (14,385 ) $ (361 ) — Adoption of ASU 2016-13 (15 ) — — (15 ) — — — Net income 31 — — 31 — — — Other comprehensive income (378 ) — — — — (378 ) — Dividends ($0.48 per share) (156 ) — — (156 ) — — 1.2 Share-based compensation plans (55 ) — (89 ) — 34 — (1.0 ) Purchase of treasury stock (150 ) — — — (150 ) — 324.2 Balance at March 31, 2020 (20 ) 5 5,711 9,504 (14,501 ) (739 ) (in millions, except per share amounts) Common Shares Outstanding Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 339.1 Balance at year-end 2018 (as adjusted) 2,225 5 5,814 8,982 (12,185 ) (391 ) — Adoption of ASU 2016-02 1 — — 1 — — — Net income 375 — — 375 — — — Other comprehensive income 31 — — — — 31 — Dividends ($0.41 per share) (139 ) — — (139 ) — — 1.7 Share-based compensation plans (62 ) — (108 ) — 46 — (6.7 ) Purchase of treasury stock (828 ) — — — (828 ) — 334.1 Balance at March 31, 2019 1,603 5 5,706 9,219 (12,967 ) (360 ) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Revenues | Segment Revenues The following tables present our revenues disaggregated by segment and major revenue stream for the 2020 first quarter and 2019 first quarter : Three Months Ended March 31, 2020 ($ in millions) North America Asia Pacific EMEA Total Gross fee revenues $ 406 $ 32 $ 46 $ 484 Contract investment amortization (19 ) (1 ) (4 ) (24 ) Net fee revenues 387 31 42 460 Owned, leased, and other revenue 102 31 91 224 Cost reimbursement revenue 3,331 107 211 3,649 Total reportable segment revenue $ 3,820 $ 169 $ 344 $ 4,333 Unallocated corporate and other 348 Total revenue $ 4,681 Three Months Ended March 31, 2019 ($ in millions) North America Asia Pacific EMEA Total Gross fee revenues $ 528 $ 118 $ 84 $ 730 Contract investment amortization (11 ) — (2 ) (13 ) Net fee revenues 517 118 82 717 Owned, leased, and other revenue 178 41 122 341 Cost reimbursement revenue 3,379 111 214 3,704 Total reportable segment revenue $ 4,074 $ 270 $ 418 $ 4,762 Unallocated corporate and other 250 Total revenue $ 5,012 |
Segment Profits | Segment Profits and Losses Three Months Ended ($ in millions) March 31, 2020 March 31, 2019 North America $ 158 $ 491 Asia Pacific (10 ) 103 EMEA (37 ) 57 Unallocated corporate and other (5 ) (128 ) Interest expense, net of interest income (87 ) (91 ) Income taxes 12 (57 ) Net Income $ 31 $ 375 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounts and notes receivable, net, allowance for credit losses | $ 178 | $ 101 | $ 82 | ||
Deferred tax liabilities | 212 | 290 | |||
Stockholder's equity | (20) | 703 | $ 1,603 | $ 2,225 | |
Change in allowance for credit losses from COVID-19 | 78 | ||||
Adoption of ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounts and notes receivable, net, allowance for credit losses | 19 | ||||
Deferred tax liabilities | (4) | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholder's equity | $ 9,504 | $ 9,644 | $ 9,219 | $ 8,982 | |
Retained Earnings | Adoption of ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholder's equity | $ (15) |
Dispositions - Dispositions (D
Dispositions - Dispositions (Details) $ in Millions | Mar. 31, 2020USD ($) |
North American Property | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal consideration | $ 268 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Computation of Basic Earnings Per Share | ||
Net income | $ 31 | $ 375 |
Shares for basic earnings per share (in shares) | 325.4 | 339.6 |
Basic earnings per share (in USD per share) | $ 0.10 | $ 1.10 |
Computation of Diluted Earnings Per Share | ||
Net income | $ 31 | $ 375 |
Shares for basic earnings per share (in shares) | 325.4 | 339.6 |
Effect of dilutive securities | ||
Share-based compensation (in shares) | 2 | 3.2 |
Shares for diluted earnings per share (in shares) | 327.4 | 342.8 |
Diluted earnings per share (in USD per share) | $ 0.09 | $ 1.09 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 38 | $ 38 | |
Deferred compensation costs related to unvested awards | $ 318 | $ 176 | |
RSUs and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, weighted average grant-date fair value (in USD per share) | $ 112 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, granted (in shares) | 1.6 | ||
Stock awards, vesting period | 4 years | ||
Stock awards, period of service after grant date | 1 year | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, granted (in shares) | 0.1 | ||
Stock awards, vesting period | 3 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 63.50% | 13.20% |
Cash paid for income taxes, net of refunds | $ 59 | $ 64 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees (Details) $ in Millions | Mar. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | $ 292 |
Recorded Liability for Guarantees | 162 |
Guarantees not in effect until underlying properties open | 76 |
Debt service | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 53 |
Recorded Liability for Guarantees | 6 |
Operating profit | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 225 |
Recorded Liability for Guarantees | 153 |
Other | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 14 |
Recorded Liability for Guarantees | $ 3 |
Commitments and Contingencies_2
Commitments and Contingencies - Contingent Purchase Obligations (Details) $ in Millions | Mar. 31, 2020USD ($) |
Guarantor Obligations [Line Items] | |
Guarantee | $ 292 |
Guarantee, recorded liability | 162 |
Sheraton Grand Chicago Hotel | |
Guarantor Obligations [Line Items] | |
Guarantee, recorded liability | 57 |
Sheraton Grand Chicago Hotel | Hotel and Leasehold | |
Guarantor Obligations [Line Items] | |
Guarantee | 300 |
Sheraton Grand Chicago Hotel | Land | |
Guarantor Obligations [Line Items] | |
Guarantee | $ 200 |
Commitments and Contingencies_3
Commitments and Contingencies - Expenses and Insurance Recoveries (Details) £ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Mar. 15, 2019lawsuit | Mar. 31, 2020USD ($)lawsuitprovince | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Jul. 31, 2019GBP (£) | |
Loss Contingencies [Line Items] | |||||
Insurance recoveries received | $ 24 | $ 40 | |||
Data Security Incident | |||||
Loss Contingencies [Line Items] | |||||
Expense related to data security incident | 15 | 44 | |||
Insurance recoveries related to data security incident | $ 17 | $ 46 | |||
Data Security Incident, UK Information Commissioner's Office | |||||
Loss Contingencies [Line Items] | |||||
Estimated fine | £ | £ 99 | ||||
Accrual for loss contingency | $ 65 | ||||
Putative Class Action Lawsuits Related to Data Security Incident | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits filed | lawsuit | 100 | ||||
Shareholder Derivative Complaints Related to Data Security Incident | |||||
Loss Contingencies [Line Items] | |||||
Number of new lawsuits filed | lawsuit | 2 | ||||
Canadian Putative Class Action Lawsuits Related to Data Security Incident | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits filed | lawsuit | 5 | ||||
Number of provinces where cases are pending | province | 5 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2020, remaining | $ 135 | |
2021 | 171 | |
2022 | 166 | |
2023 | 115 | |
2024 | 106 | |
Thereafter | 570 | |
Total minimum lease payments | 1,263 | |
Less: Amount representing interest | (280) | |
Present value of minimum lease payments | 983 | |
Current | 137 | |
Noncurrent | 846 | $ 882 |
Finance Leases | ||
2020, remaining | 10 | |
2021 | 13 | |
2022 | 13 | |
2023 | 13 | |
2024 | 14 | |
Thereafter | 151 | |
Total minimum lease payments | 214 | |
Less: Amount representing interest | (58) | |
Present value of minimum lease payments | 156 | $ 157 |
Current | 6 | |
Noncurrent | $ 150 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease term | 20 years |
Courtyard | |
Lessee, Lease, Description [Line Items] | |
Impairment charges for right-of-use assets | $ 74 |
Impairment charges for property and equipment | $ 16 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Credit Facility | $ 2,500 | $ 0 |
Finance lease obligations | 156 | 157 |
Total debt | 12,233 | 10,940 |
Less: Current portion of long-term debt | (1,664) | (977) |
Long-term debt, noncurrent | 10,569 | 9,963 |
Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 349 | 349 |
Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 350 | 349 |
Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 399 | 398 |
Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 (effective interest rate of 3.1%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 449 | 449 |
Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 346 | 346 |
Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 (effective interest rate of 2.5%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 747 | 747 |
Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 744 | 744 |
Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 291 | 291 |
Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 332 | 332 |
Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 291 | 291 |
Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 444 | 444 |
Series Y Notes, floating rate, face amount of $550, maturing December 1, 2020 (effective interest rate of 2.2% at March 31, 2020) | ||
Debt Instrument [Line Items] | ||
Senior notes | 549 | 549 |
Series Z Notes, interest rate of 4.2%, face amount of $350, maturing December 1, 2023 (effective interest rate of 4.4%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 348 | 347 |
Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 297 | 297 |
Series BB Notes, floating rate, face amount of $300, maturing March 8, 2021 (effective interest rate of 1.6% at March 31, 2020) | ||
Debt Instrument [Line Items] | ||
Senior notes | 299 | 299 |
Series CC Notes, interest rate of 3.6%, face amount of $550, maturing April 15, 2024 (effective interest rate of 3.9%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 591 | 564 |
Series DD Notes, interest rate of 2.1%, face amount of $550, maturing October 3, 2022 (effective interest rate of 2.4%) | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 561 | 543 |
Senior Notes | Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.30% | |
Senior notes, face amount | $ 350 | |
Effective interest rate | 3.40% | |
Senior Notes | Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.40% | |
Senior notes, face amount | $ 350 | |
Effective interest rate | 3.60% | |
Senior Notes | Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.10% | |
Senior notes, face amount | $ 400 | |
Effective interest rate | 3.40% | |
Senior Notes | Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 (effective interest rate of 3.1%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.90% | |
Senior notes, face amount | $ 450 | |
Effective interest rate | 3.10% | |
Senior Notes | Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.80% | |
Senior notes, face amount | $ 350 | |
Effective interest rate | 4.00% | |
Senior Notes | Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 (effective interest rate of 2.5%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.30% | |
Senior notes, face amount | $ 750 | |
Effective interest rate | 2.50% | |
Senior Notes | Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.10% | |
Senior notes, face amount | $ 750 | |
Effective interest rate | 3.30% | |
Senior Notes | Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.10% | |
Senior notes, face amount | $ 291 | |
Effective interest rate | 3.10% | |
Senior Notes | Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.80% | |
Senior notes, face amount | $ 318 | |
Effective interest rate | 2.80% | |
Senior Notes | Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.50% | |
Senior notes, face amount | $ 278 | |
Effective interest rate | 4.10% | |
Senior Notes | Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | |
Senior notes, face amount | $ 450 | |
Effective interest rate | 4.20% | |
Senior Notes | Series Y Notes, floating rate, face amount of $550, maturing December 1, 2020 (effective interest rate of 2.2% at March 31, 2020) | ||
Debt Instrument [Line Items] | ||
Senior notes, face amount | $ 550 | |
Effective interest rate | 2.20% | |
Senior Notes | Series Z Notes, interest rate of 4.2%, face amount of $350, maturing December 1, 2023 (effective interest rate of 4.4%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.20% | |
Senior notes, face amount | $ 350 | |
Effective interest rate | 4.40% | |
Senior Notes | Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.70% | |
Senior notes, face amount | $ 300 | |
Effective interest rate | 4.80% | |
Senior Notes | Series BB Notes, floating rate, face amount of $300, maturing March 8, 2021 (effective interest rate of 1.6% at March 31, 2020) | ||
Debt Instrument [Line Items] | ||
Senior notes, face amount | $ 300 | |
Effective interest rate | 1.60% | |
Senior Notes | Series CC Notes, interest rate of 3.6%, face amount of $550, maturing April 15, 2024 (effective interest rate of 3.9%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.60% | |
Senior notes, face amount | $ 550 | |
Effective interest rate | 3.90% | |
Senior Notes | Series DD Notes, interest rate of 2.1%, face amount of $550, maturing October 3, 2022 (effective interest rate of 2.4%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.10% | |
Senior notes, face amount | $ 550 | |
Effective interest rate | 2.40% | |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Commercial paper | $ 2,011 | 3,197 |
Other | ||
Debt Instrument [Line Items] | ||
Other | $ 179 | $ 247 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) $ in Millions | May 06, 2020 | May 01, 2020 | Apr. 02, 2020 | Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Debt Disclosure [Abstract] | ||||||
Interest paid, net of amounts capitalized | $ 63 | $ 70 | ||||
Maximum aggregate borrowings under credit facility (up to) | $ 4,500 | 4,500 | ||||
Short-term Debt [Line Items] | ||||||
Repayments of line of credit | $ 66 | $ 603 | ||||
Series EE Notes | Senior Notes | Subsequent Event | ||||||
Short-term Debt [Line Items] | ||||||
Net proceeds | $ 1,581 | |||||
Aggregate principal amount | $ 1,600 | |||||
Interest rate | 575.00% | |||||
Revolving Credit Facility | Line of Credit | ||||||
Short-term Debt [Line Items] | ||||||
Net proceeds | $ 2,500 | |||||
Revolving Credit Facility | Line of Credit | Subsequent Event | ||||||
Short-term Debt [Line Items] | ||||||
Net proceeds | $ 2,000 | |||||
Long term debt | $ 3,250 | $ 4,500 | ||||
Repayments of line of credit | $ 1,250 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | $ 144 | $ 117 |
Other noncurrent liabilities | (2,270) | (2,236) |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 144 | 117 |
Total noncurrent financial assets | 144 | 117 |
Senior Notes | (5,740) | (6,441) |
Commercial paper / Credit Facility | (4,511) | (3,197) |
Other long-term debt | (168) | (174) |
Other noncurrent liabilities | (177) | (196) |
Total noncurrent financial liabilities | (10,596) | (10,008) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 138 | 112 |
Total noncurrent financial assets | 138 | 112 |
Senior Notes | (5,316) | (6,712) |
Commercial paper / Credit Facility | (4,511) | (3,197) |
Other long-term debt | (156) | (179) |
Other noncurrent liabilities | (177) | (196) |
Total noncurrent financial liabilities | $ (10,160) | $ (10,284) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss and Shareholders' Equity - Accumulated Other Comprehensive (Loss) Income Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 703 | $ 2,225 |
Other comprehensive (loss) income before reclassifications | (370) | 32 |
Reclassification of (income) losses | (8) | (1) |
Net other comprehensive (loss) income | (378) | 31 |
Balance at end of period | (20) | 1,603 |
Other comprehensive income (loss) before reclassification related to foreign current translation adjustment, loss on intra-equity foreign currency transaction | 11 | 8 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (368) | (403) |
Other comprehensive (loss) income before reclassifications | (383) | 33 |
Reclassification of (income) losses | 0 | 0 |
Net other comprehensive (loss) income | (383) | 33 |
Balance at end of period | (751) | (370) |
Derivative Instrument and Other Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | 7 | 12 |
Other comprehensive (loss) income before reclassifications | 13 | (1) |
Reclassification of (income) losses | (8) | (1) |
Net other comprehensive (loss) income | 5 | (2) |
Balance at end of period | 12 | 10 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (361) | (391) |
Net other comprehensive (loss) income | (378) | 31 |
Balance at end of period | $ (739) | $ (360) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss and Shareholders' Equity - Changes in Shareholders' Equity (Deficit) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | |
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | $ 703 | $ 2,225 | ||
Net income | 31 | 375 | ||
Other comprehensive income | (378) | 31 | ||
Dividends | (156) | (139) | ||
Share-based compensation plans | (55) | (62) | ||
Purchase of treasury stock | (150) | (828) | ||
Balance at end of period | $ (20) | $ 1,603 | ||
Cash dividends (in USD per share) | $ 0.48 | $ 0.41 | ||
Class A Common Stock | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | $ 5 | $ 5 | ||
Balance at beginning of period (in shares) | 324 | 339.1 | ||
Share-based compensation plans (in shares) | 1.2 | 1.7 | ||
Purchase of treasury stock (in shares) | (1) | (6.7) | ||
Balance at end of period | $ 5 | $ 5 | ||
Balance at end of period (in shares) | 324.2 | 334.1 | ||
Additional Paid-in- Capital | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | $ 5,800 | $ 5,814 | ||
Share-based compensation plans | (89) | (108) | ||
Balance at end of period | 5,711 | 5,706 | ||
Retained Earnings | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | 9,644 | 8,982 | ||
Net income | 31 | 375 | ||
Dividends | (156) | (139) | ||
Balance at end of period | 9,504 | 9,219 | ||
Treasury Stock, at Cost | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | (14,385) | (12,185) | ||
Share-based compensation plans | 34 | 46 | ||
Purchase of treasury stock | (150) | (828) | ||
Balance at end of period | (14,501) | (12,967) | ||
Accumulated Other Comprehensive Loss | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Balance at beginning of period | (361) | (391) | ||
Other comprehensive income | (378) | 31 | ||
Balance at end of period | $ (739) | $ (360) | ||
Adoption of ASU 2016-13 | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | $ (15) | |||
Adoption of ASU 2016-13 | Class A Common Stock | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | 0 | |||
Adoption of ASU 2016-13 | Additional Paid-in- Capital | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | 0 | |||
Adoption of ASU 2016-13 | Retained Earnings | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | (15) | |||
Adoption of ASU 2016-13 | Treasury Stock, at Cost | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | 0 | |||
Adoption of ASU 2016-13 | Accumulated Other Comprehensive Loss | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | $ 0 | |||
Adoption of ASU 2016-02 | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | $ 1 | |||
Adoption of ASU 2016-02 | Class A Common Stock | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | 0 | |||
Adoption of ASU 2016-02 | Additional Paid-in- Capital | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | 0 | |||
Adoption of ASU 2016-02 | Retained Earnings | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | 1 | |||
Adoption of ASU 2016-02 | Treasury Stock, at Cost | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | 0 | |||
Adoption of ASU 2016-02 | Accumulated Other Comprehensive Loss | ||||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||||
Adoption of ASU | $ 0 |
Contracts with Customers (Detai
Contracts with Customers (Details) - Loyalty Program - USD ($) $ in Millions | May 11, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | |||
Change in contract with customer liability | $ 126 | ||
Contract with customer liability | 5,844 | $ 5,718 | |
Deferred revenue recognized | $ 462 | ||
Subsequent Event | |||
Disaggregation of Revenue [Line Items] | |||
Cash received from prepayment | $ 920 |
Business Segments - Segment Rev
Business Segments - Segment Revenues (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 4,681 | $ 5,012 |
Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4,333 | 4,762 |
Unallocated corporate and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 348 | 250 |
North American | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,820 | 4,074 |
Asia Pacific | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 169 | 270 |
EMEA | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 344 | 418 |
Fee revenues | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 629 | 895 |
Contract investment amortization | (25) | (14) |
Revenues | 604 | 881 |
Fee revenues | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 484 | 730 |
Contract investment amortization | (24) | (13) |
Revenues | 460 | 717 |
Fee revenues | North American | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 406 | 528 |
Contract investment amortization | (19) | (11) |
Revenues | 387 | 517 |
Fee revenues | Asia Pacific | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 32 | 118 |
Contract investment amortization | (1) | 0 |
Revenues | 31 | 118 |
Fee revenues | EMEA | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 46 | 84 |
Contract investment amortization | (4) | (2) |
Revenues | 42 | 82 |
Owned, leased, and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 280 | 375 |
Owned, leased, and other | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 224 | 341 |
Owned, leased, and other | North American | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 102 | 178 |
Owned, leased, and other | Asia Pacific | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 31 | 41 |
Owned, leased, and other | EMEA | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 91 | 122 |
Reimbursements | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,797 | 3,756 |
Reimbursements | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,649 | 3,704 |
Reimbursements | North American | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,331 | 3,379 |
Reimbursements | Asia Pacific | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 107 | 111 |
Reimbursements | EMEA | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 211 | $ 214 |
Business Segments - Segment Pro
Business Segments - Segment Profits (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profits | $ 114 | $ 510 |
Interest expense, net of interest income | (87) | (91) |
Income taxes | 12 | (57) |
NET INCOME | 31 | 375 |
Unallocated corporate and other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profits | (5) | (128) |
North American | Total segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profits | 158 | 491 |
Asia Pacific | Total segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profits | (10) | 103 |
EMEA | Total segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profits | $ (37) | $ 57 |