Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 27, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | MAR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 327,298,386 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001048286 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
REVENUES | ||
Revenues | $ 4,199 | $ 2,316 |
OPERATING COSTS AND EXPENSES | ||
Depreciation, amortization, and other | 48 | 52 |
General, administrative, and other | 208 | 211 |
Restructuring, merger-related charges, and other | 9 | 1 |
Costs and expenses | 3,641 | 2,232 |
OPERATING INCOME | 558 | 84 |
Gains and other income, net | 4 | 1 |
Interest expense | (93) | (107) |
Interest income | 5 | 7 |
Equity in earnings (losses) | 2 | (12) |
INCOME (LOSS) BEFORE INCOME TAXES | 476 | (27) |
(Provision) benefit for income taxes | (99) | 16 |
Net income (loss) | $ 377 | $ (11) |
EARNINGS (LOSS) PER SHARE | ||
Earnings (loss) per share - basic (in USD per share) | $ 1.15 | $ (0.03) |
Earnings (loss) per share - diluted (in USD per share) | $ 1.14 | $ (0.03) |
Base management fees | ||
REVENUES | ||
Gross revenues | $ 213 | $ 106 |
Franchise fees | ||
REVENUES | ||
Gross revenues | 500 | 306 |
Incentive management fees | ||
REVENUES | ||
Gross revenues | 102 | 33 |
Fee revenues | ||
REVENUES | ||
Gross revenues | 815 | 445 |
Contract investment amortization | (24) | (17) |
Revenues | 791 | 428 |
Owned, leased, and other | ||
REVENUES | ||
Revenues | 262 | 108 |
OPERATING COSTS AND EXPENSES | ||
Operating costs | 197 | 135 |
Reimbursements | ||
REVENUES | ||
Revenues | 3,146 | 1,780 |
OPERATING COSTS AND EXPENSES | ||
Operating costs | $ 3,179 | $ 1,833 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 377 | $ (11) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 14 | (155) |
Other adjustments, net of tax | 0 | 0 |
Total other comprehensive income (loss), net of tax | 14 | (155) |
Comprehensive income (loss) | $ 391 | $ (166) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and equivalents | $ 1,042 | $ 1,393 |
Accounts and notes receivable, net | 2,112 | 1,982 |
Prepaid expenses and other | 264 | 251 |
Assets, current, total | 3,418 | 3,626 |
Property and equipment, net | 1,531 | 1,503 |
Intangible assets | ||
Goodwill | 9,069 | 9,073 |
Goodwill and intangible assets, net, total | 17,960 | 17,999 |
Equity method investments | 361 | 387 |
Notes receivable, net | 141 | 144 |
Deferred tax assets | 228 | 228 |
Operating lease assets | 1,024 | 1,062 |
Other noncurrent assets | 575 | 604 |
Total assets | 25,238 | 25,553 |
Current liabilities | ||
Current portion of long-term debt | 731 | 805 |
Accounts payable | 737 | 726 |
Accrued payroll and benefits | 1,052 | 1,187 |
Accrued expenses and other | 1,276 | 1,167 |
Liabilities, current, total | 6,422 | 6,407 |
Long-term debt | 8,738 | 9,333 |
Deferred tax liabilities | 179 | 169 |
Operating lease liabilities | 1,066 | 1,098 |
Other noncurrent liabilities | 1,977 | 2,002 |
Stockholders’ equity | ||
Class A Common Stock | 5 | 5 |
Additional paid-in-capital | 5,831 | 5,892 |
Retained earnings | 10,682 | 10,305 |
Treasury stock, at cost | (14,418) | (14,446) |
Accumulated other comprehensive loss | (328) | (342) |
Stockholders’ equity | 1,772 | 1,414 |
Liabilities and equity (deficit), total | 25,238 | 25,553 |
Brands | ||
Intangible assets | ||
Intangible assets | 5,974 | 5,979 |
Contract acquisition costs and other | ||
Intangible assets | ||
Intangible assets | 2,917 | 2,947 |
Liability for guest loyalty program | ||
Current liabilities | ||
Liability for guest loyalty program | 2,626 | 2,522 |
Contract with customer liabilities | 3,963 | 3,949 |
Deferred revenue | ||
Current liabilities | ||
Contract with customer liabilities | $ 1,121 | $ 1,181 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
OPERATING ACTIVITIES | |||
Net income (loss) | $ 377 | $ (11) | |
Adjustments to reconcile to cash provided by operating activities: | |||
Depreciation, amortization, and other | 72 | 69 | |
Stock-based compensation | 44 | 53 | |
Income taxes | 61 | (50) | |
Liability for guest loyalty program | 57 | 74 | |
Contract acquisition costs | (26) | (47) | |
Restructuring, merger-related charges, and other | 7 | (6) | |
Working capital changes | (230) | (27) | |
Deferred revenue changes and other | 36 | (28) | |
Net cash provided by operating activities | 398 | 27 | |
INVESTING ACTIVITIES | |||
Capital and technology expenditures | (49) | (30) | |
Dispositions | 0 | 7 | |
Loan advances | 0 | (2) | |
Loan collections | 7 | 3 | |
Other | 19 | (7) | |
Net cash used in investing activities | (23) | (29) | |
FINANCING ACTIVITIES | |||
Credit Facility, net | (250) | (500) | |
Issuance of long-term debt | 0 | 1,089 | |
Repayment of long-term debt | (401) | (752) | |
Issuance of Class A Common Stock | 0 | 2 | |
Stock-based compensation withholding taxes | (78) | (82) | |
Other | 0 | (7) | |
Net cash used in financing activities | (729) | (250) | |
DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (354) | (252) | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | [1] | 1,421 | 894 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | [1] | $ 1,067 | $ 642 |
[1] | The 2022 amounts include beginning restricted cash of $28 million at December 31, 2021, and ending restricted cash of $25 million at March 31, 2022, which we present in the “Prepaid expenses and other” and “Other noncurrent assets” captions of our Balance Sheets. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 25 | $ 28 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
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 (1) our Condensed Consolidated Financial Statements as our “Financial Statements,” (2) our Condensed Consolidated Statements of Income (Loss) as our “Income Statements,” (3) our Condensed Consolidated Balance Sheets as our “Balance Sheets,” (4) our Condensed Consolidated Statements of Cash Flows as our “Statements of Cash Flows,” (5) our properties, brands, or markets in the United States and Canada as “U.S. & Canada,” and (6) our properties, brands, or markets in our Caribbean and Latin America, Europe, Middle East and Africa, Greater China, and Asia Pacific excluding China regions, 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, 2021 (“2021 Form 10-K”). Certain terms not otherwise defined in this Form 10-Q have the meanings specified in our 2021 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 pandemic 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, 2022 and December 31, 2021, the results of our operations for the three months ended March 31, 2022 and March 31, 2021, and cash flows for the three months ended March 31, 2022 and March 31, 2021. 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 March 31, 2021 Computation of Basic Earnings Per Share Net income (loss) $ 377 $ (11) Shares for basic earnings per share 328.3 326.7 Basic earnings (loss) per share $ 1.15 $ (0.03) Computation of Diluted Earnings Per Share Net income (loss) $ 377 $ (11) Shares for basic earnings per share 328.3 326.7 Effect of dilutive securities Stock-based compensation (1) 1.7 — Shares for diluted earnings per share 330.0 326.7 Diluted earnings (loss) per share $ 1.14 $ (0.03) (1) For the calculation of diluted loss per share for the three months ended March 31, 2021, we excluded stock-based compensation securities of 2.3 million because the effect was anti-dilutive. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | STOCK-BASED COMPENSATION We granted 1.0 million restricted stock units (“RSUs”) during the 2022 first quarter to certain officers and 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 2022 first quarter to certain executives, which are earned, subject to continued employment and the satisfaction of certain performance and market conditions generally based on the degree of achievement of pre-established targets for 2024 adjusted EBITDA performance and relative total stockholder return over the 2022 to 2024 performance period. RSUs, including PSUs, granted in the 2022 first quarter had a weighted average grant-date fair value of $169 per unit. We recorded stock-based compensation expense for RSUs and PSUs of $42 million in the 2022 first quarter and $49 million in the 2021 first quarter. Deferred compensation costs for unvested awards for RSUs and PSUs totaled $320 million at March 31, 2022 and $189 million at December 31, 2021. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We recorded a provision of $99 million with an effective tax rate of 20.7 percent for the 2022 first quarter and a benefit of $16 million with an effective tax rate of 59.2 percent for the 2021 first quarter. The change in our effective tax rate was primarily due to a less favorable impact from stock-based compensation as a percentage of our pre-tax income in the 2022 first quarter compared to a percentage of our pre-tax loss in the 2021 first quarter. We paid cash for income taxes, net of refunds, of $38 million in the 2022 first quarter and $33 million in the 2021 first quarter. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees We present the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for our debt service, operating profit, and other guarantees (excluding contingent purchase obligations) for which we are the primary obligor at March 31, 2022 in the following table: ($ in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 20 $ 5 Operating profit 182 112 Other 17 4 $ 219 $ 121 Our maximum potential guarantees listed in the preceding table include $45 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 . In 2017, we granted the owner a one-time right to require us to purchase the leasehold interest in the land and the hotel for $300 million in cash (the “put option”). In the 2021 third quarter, we entered into an amendment with the owner to move the exercise period of the put option from the 2022 first half to the 2024 first half. If the owner exercises the put option, the closing is expected to occur in the 2024 fourth quarter, and 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 account for the put option as a guarantee, and our recorded liability was $300 million at March 31, 2022 and December 31, 2021. 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 . 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 were 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 was a putative class action lawsuit that was filed on December 1, 2018 against the Company and certain of our current and former officers and directors, 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 “Securities Case”). We filed motions to dismiss in connection with all of the U.S. cases. Our motions to dismiss the Securities Case and three shareholder derivative complaints (two included in the MDL proceeding and one filed in the Delaware Court of Chancery) were granted in 2021. The plaintiff in the Securities Case appealed the dismissal and the dismissal was affirmed by the U.S. Court of Appeals for the Fourth Circuit in April 2022. Motions to dismiss in the other MDL cases have been denied in part or in whole and these cases remain at varying stages. On May 3, 2022, the U.S. District Court for the District of Maryland granted in part and denied in part class certification of various U.S. groups of consumers and we are evaluating how to proceed. The Canadian cases have effectively been consolidated into a single case in the province of Ontario. We dispute the allegations in the lawsuits described above and are vigorously defending against such claims. In April 2019, we received a letter purportedly on behalf of a stockholder of the Company (also one of the named plaintiffs in the Securities Case described above) demanding that our Board of Directors take action against certain of the Company’s current and former officers and directors to recover damages for alleged breaches of fiduciary duties and related claims arising from the Data Security Incident. In October 2021, we received a letter purportedly on behalf of another stockholder of the Company (also one of the named plaintiffs in one of the dismissed MDL Derivative Cases described above) demanding that our Board of Directors take action against certain of the Company’s current and former officers and directors to recover damages for alleged breaches of fiduciary duties and other claims related to the Data Security Incident or associated disclosures. The Board of Directors has constituted a demand review committee to investigate the claims made in these demand letters, and the committee has retained independent counsel to assist with the investigations. The committee has completed its investigation and reported its findings and recommendations to our Board of Directors, which thereafter resolved, in February 2022, to reject the demands in their entirety. In addition, on August 18, 2020, a purported representative action was brought against us in the High Court of Justice for England and Wales on behalf of an alleged claimant class of English and Welsh residents alleging breaches of the General Data Protection Regulation and/or the U.K. Data Protection Act 2018 (the “U.K. DPA”) in connection with the Data Security Incident. On November 5, 2020, the court issued an order with the consent of all parties staying this action pending resolution of another case raising similar issues, but not involving the Company. That other case was decided by the U.K. Supreme Court on November 10, 2021. The plaintiffs have informed us that they have decided not to pursue this case and the parties are in the process of preparing formal dismissal papers. In addition, numerous U.S. federal, U.S. state and foreign governmental authorities made inquiries, opened investigations, or requested 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. With the exception of the ICO proceeding, which was resolved in October 2020, these matters generally remain open. We are in discussions with the U.S. state Attorneys General, the U.S. Federal Trade Commission, and certain regulatory authorities in other jurisdictions to resolve their investigations and requests. 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. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
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 as of March 31, 2022 and year-end 2021: ($ in millions) March 31, December 31, Senior Notes: Series L Notes, interest rate of 3.3%, face amount of $173, maturing September 15, 2022 (effective interest rate of 3.4%) $ 173 $ 173 Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) 347 347 Series Q Notes, interest rate of 2.3%, face amount of $399, matured January 15, 2022 (effective interest rate of 2.5%) — 399 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) 746 746 Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%) 291 291 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) 326 327 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) 290 290 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 445 445 Series Z Notes, interest rate of 4.2%, face amount of $350, maturing December 1, 2023 (effective interest rate of 4.4%) 349 349 Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) 298 297 Series CC Notes, interest rate of 3.6%, face amount of $550, maturing April 15, 2024 (effective interest rate of 3.9%) 548 566 Series DD Notes, interest rate of 2.1%, face amount of $224, maturing October 3, 2022 (effective interest rate of 1.2%) 224 226 Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) 595 595 Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) 987 987 Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) 986 986 Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) 1,090 1,090 Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) 694 693 Credit Facility 800 1,050 Finance lease obligations 144 146 Other 136 135 $ 9,469 $ 10,138 Less current portion (731) (805) $ 8,738 $ 9,333 We paid cash for interest, net of amounts capitalized, of $29 million in the 2022 first quarter and $38 million in the 2021 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 borrowings for general corporate needs, including working capital, capital expenditures, letters of credit, acquisitions, and to support our commercial paper program if and when we resume issuing commercial paper. 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 (if any) 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. In the 2022 first quarter, we made repayments of $250 million, reducing the total outstanding borrowings under the Credit Facility to $800 million as of March 31, 2022. In April 2022, we repaid an additional $400 million of outstanding borrowings under the Credit Facility. We entered into amendments to the Credit Facility in April 2020 and January 2021 (the “Credit Facility Amendments”). The debt leverage covenant in the Credit Facility, which is tested each quarter and was waived pursuant to the Credit Facility Amendments through and including the fourth quarter of 2021, resumed beginning with the quarter that ended March 31, 2022. The Credit Facility Amendments adjusted the required leverage levels for this covenant starting at 5.50 to 1.00 for the test period that ended on March 31, 2022 and gradually stepping down to 4.00 to 1.00 over the succeeding five fiscal quarters, as further described in the Credit Facility. The Credit Facility Amendments also amended certain other terms of the Credit Facility, including reducing the rate floor for the LIBOR Daily Floating Rate and the Eurocurrency Rate. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. We present the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments in the following table: March 31, 2022 December 31, 2021 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior, mezzanine, and other loans $ 141 $ 128 $ 144 $ 131 Total noncurrent financial assets $ 141 $ 128 $ 144 $ 131 Senior Notes $ (7,701) $ (7,649) $ (8,009) $ (8,480) Credit Facility (800) (800) (1,050) (1,050) Other long-term debt (100) (100) (135) (140) Other noncurrent liabilities (407) (407) (414) (414) Total noncurrent financial liabilities $ (9,008) $ (8,956) $ (9,608) $ (10,084) See Note 12. Fair Value of Financial Instruments and the “Fair Value Measurements” caption of Note 2. Summary of Significant Accounting Policies of our 2021 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, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss and Shareholders' Equity | ACCUMULATED OTHER COMPREHENSIVE LOSS AND STOCKHOLDERS’ EQUITY The following tables detail the accumulated other comprehensive loss activity for the 2022 first quarter and 2021 first quarter: ($ in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2021 $ (351) $ 9 $ (342) Other comprehensive income before reclassifications (1) 14 — 14 Reclassification adjustments — — — Net other comprehensive income 14 — 14 Balance at March 31, 2022 $ (337) $ 9 $ (328) ($ in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2020 $ (139) $ 4 $ (135) Other comprehensive loss before reclassifications (1) (155) — (155) Reclassification adjustments — — — Net other comprehensive loss (155) — (155) Balance at March 31, 2021 $ (294) $ 4 $ (290) (1) Other comprehensive income (loss) 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 $12 million for the 2022 first quarter and $27 million for the 2021 first quarter. The following tables detail the changes in common shares outstanding and stockholders’ equity for the 2022 first quarter and 2021 first quarter: (in millions, except per share amounts) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 326.3 Balance at year-end 2021 $ 1,414 $ 5 $ 5,892 $ 10,305 $ (14,446) $ (342) — Net income 377 — — 377 — — — Other comprehensive income 14 — — — — 14 1.0 Stock-based compensation plans (33) — (61) — 28 — 327.3 Balance at March 31, 2022 $ 1,772 $ 5 $ 5,831 $ 10,682 $ (14,418) $ (328) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 324.4 Balance at year-end 2020 $ 430 $ 5 $ 5,851 $ 9,206 $ (14,497) $ (135) — Net loss (11) — — (11) — — — Other comprehensive loss (155) — — — — (155) 1.2 Stock-based compensation plans (30) — (64) — 34 — 325.6 Balance at March 31, 2021 $ 234 $ 5 $ 5,787 $ 9,195 $ (14,463) $ (290) |
Contracts with Customers
Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contracts with Customers | CONTRACTS WITH CUSTOMERS Our current and noncurrent liability for guest loyalty program increased by $118 million, to $6,589 million at March 31, 2022, from $6,471 million at December 31, 2021, primarily reflecting an increase in points earned by members. This includes a $61 million reclassification from deferred revenue to the liability for guest loyalty program primarily due to points that were earned during the period by members using our U.S.-issued co-brand credit cards, which were prepaid by the financial institutions in 2020. The increase was partially offset by $567 million of revenue recognized in the 2022 first quarter, that was deferred as of December 31, 2021. The current portion of our liability for guest loyalty program increased compared to December 31, 2021, due to higher estimated redemptions in the short-term. Current and noncurrent deferred revenue decreased by $73 million, to $1,454 million at March 31, 2022, from $1,527 million at December 31, 2021, primarily as a result of $92 million of revenue recognized in the 2022 first quarter that was deferred as of December 31, 2021, as well as the reclassification from deferred revenue to the liability for guest loyalty program, which we discuss above . The decrease was partially offset by deferred cash received related to our co-brand credit cards and gift cards, as well as an increase in franchise application and relicensing fees. Our current deferred revenue, which we present in the “Accrued expenses and other” caption of our Balance Sheets, was $333 million at March 31, 2022 and $346 million at year-end 2021. Our allowance for credit losses increased to $200 million at March 31, 2022 from $187 million at December 31, 2021, primarily reflecting our provision for credit losses. Our provision for credit losses totaled $19 million in the 2022 first quarter. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS We discuss our operations in the following two operating segments, both of which meet the applicable criteria for separate disclosure as a reportable business segment: U.S. & Canada and International. We evaluate the performance of our operating segments using “segment profit/loss” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, merger-related costs, or most above-property restructuring charges. We assign gains and losses, equity in earnings or losses, direct general, administrative, and other expenses, and other restructuring charges to each of our segments. “Unallocated corporate and other” includes a portion of our revenues (including license fees we receive from our credit card programs and fees from vacation ownership licensing agreements), revenues and expenses for our Loyalty Program, general, administrative, and other expenses, restructuring, merger-related charges, and other expenses, equity in earnings or losses, and other gains or losses that we do not allocate to our segments. Our chief operating decision maker monitors assets for the consolidated Company but does not use assets by operating segment when assessing performance or making operating segment resource allocations. Segment Revenues The following table presents our revenues disaggregated by segment and major revenue stream for the 2022 first quarter and 2021 first quarter: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 ($ in millions) U.S. & Canada International Total U.S. & Canada International Total Gross fee revenues $ 489 $ 177 $ 666 $ 250 $ 87 $ 337 Contract investment amortization (14) (10) (24) (13) (4) (17) Net fee revenues 475 167 642 237 83 320 Owned, leased, and other revenue 92 153 245 35 66 101 Cost reimbursement revenue 2,704 355 3,059 1,449 242 1,691 Total reportable segment revenue $ 3,271 $ 675 $ 3,946 $ 1,721 $ 391 $ 2,112 Unallocated corporate and other 253 204 Total revenue $ 4,199 $ 2,316 Segment Profit and Loss Three Months Ended ($ in millions) March 31, 2022 March 31, 2021 U.S. & Canada $ 454 $ 143 International 131 (23) Unallocated corporate and other (21) (47) Interest expense, net of interest income (88) (100) (Provision) benefit for income taxes (99) 16 Net income (loss) $ 377 $ (11) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 March 31, 2021 Computation of Basic Earnings Per Share Net income (loss) $ 377 $ (11) Shares for basic earnings per share 328.3 326.7 Basic earnings (loss) per share $ 1.15 $ (0.03) Computation of Diluted Earnings Per Share Net income (loss) $ 377 $ (11) Shares for basic earnings per share 328.3 326.7 Effect of dilutive securities Stock-based compensation (1) 1.7 — Shares for diluted earnings per share 330.0 326.7 Diluted earnings (loss) per share $ 1.14 $ (0.03) (1) For the calculation of diluted loss per share for the three months ended March 31, 2021, we excluded stock-based compensation securities of 2.3 million because the effect was anti-dilutive. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 in the following table: ($ in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 20 $ 5 Operating profit 182 112 Other 17 4 $ 219 $ 121 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 as of March 31, 2022 and year-end 2021: ($ in millions) March 31, December 31, Senior Notes: Series L Notes, interest rate of 3.3%, face amount of $173, maturing September 15, 2022 (effective interest rate of 3.4%) $ 173 $ 173 Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) 347 347 Series Q Notes, interest rate of 2.3%, face amount of $399, matured January 15, 2022 (effective interest rate of 2.5%) — 399 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) 746 746 Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%) 291 291 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) 326 327 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) 290 290 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 445 445 Series Z Notes, interest rate of 4.2%, face amount of $350, maturing December 1, 2023 (effective interest rate of 4.4%) 349 349 Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) 298 297 Series CC Notes, interest rate of 3.6%, face amount of $550, maturing April 15, 2024 (effective interest rate of 3.9%) 548 566 Series DD Notes, interest rate of 2.1%, face amount of $224, maturing October 3, 2022 (effective interest rate of 1.2%) 224 226 Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) 595 595 Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) 987 987 Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) 986 986 Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) 1,090 1,090 Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) 694 693 Credit Facility 800 1,050 Finance lease obligations 144 146 Other 136 135 $ 9,469 $ 10,138 Less current portion (731) (805) $ 8,738 $ 9,333 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 in the following table: March 31, 2022 December 31, 2021 ($ in millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior, mezzanine, and other loans $ 141 $ 128 $ 144 $ 131 Total noncurrent financial assets $ 141 $ 128 $ 144 $ 131 Senior Notes $ (7,701) $ (7,649) $ (8,009) $ (8,480) Credit Facility (800) (800) (1,050) (1,050) Other long-term debt (100) (100) (135) (140) Other noncurrent liabilities (407) (407) (414) (414) Total noncurrent financial liabilities $ (9,008) $ (8,956) $ (9,608) $ (10,084) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss and Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss Activity | The following tables detail the accumulated other comprehensive loss activity for the 2022 first quarter and 2021 first quarter: ($ in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2021 $ (351) $ 9 $ (342) Other comprehensive income before reclassifications (1) 14 — 14 Reclassification adjustments — — — Net other comprehensive income 14 — 14 Balance at March 31, 2022 $ (337) $ 9 $ (328) ($ in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2020 $ (139) $ 4 $ (135) Other comprehensive loss before reclassifications (1) (155) — (155) Reclassification adjustments — — — Net other comprehensive loss (155) — (155) Balance at March 31, 2021 $ (294) $ 4 $ (290) (1) Other comprehensive income (loss) 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 $12 million for the 2022 first quarter and $27 million for the 2021 first quarter. |
Changes in Shareholders' Equity | The following tables detail the changes in common shares outstanding and stockholders’ equity for the 2022 first quarter and 2021 first quarter: (in millions, except per share amounts) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 326.3 Balance at year-end 2021 $ 1,414 $ 5 $ 5,892 $ 10,305 $ (14,446) $ (342) — Net income 377 — — 377 — — — Other comprehensive income 14 — — — — 14 1.0 Stock-based compensation plans (33) — (61) — 28 — 327.3 Balance at March 31, 2022 $ 1,772 $ 5 $ 5,831 $ 10,682 $ (14,418) $ (328) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 324.4 Balance at year-end 2020 $ 430 $ 5 $ 5,851 $ 9,206 $ (14,497) $ (135) — Net loss (11) — — (11) — — — Other comprehensive loss (155) — — — — (155) 1.2 Stock-based compensation plans (30) — (64) — 34 — 325.6 Balance at March 31, 2021 $ 234 $ 5 $ 5,787 $ 9,195 $ (14,463) $ (290) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Revenues | The following table presents our revenues disaggregated by segment and major revenue stream for the 2022 first quarter and 2021 first quarter: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 ($ in millions) U.S. & Canada International Total U.S. & Canada International Total Gross fee revenues $ 489 $ 177 $ 666 $ 250 $ 87 $ 337 Contract investment amortization (14) (10) (24) (13) (4) (17) Net fee revenues 475 167 642 237 83 320 Owned, leased, and other revenue 92 153 245 35 66 101 Cost reimbursement revenue 2,704 355 3,059 1,449 242 1,691 Total reportable segment revenue $ 3,271 $ 675 $ 3,946 $ 1,721 $ 391 $ 2,112 Unallocated corporate and other 253 204 Total revenue $ 4,199 $ 2,316 |
Segment Profits | Segment Profit and Loss Three Months Ended ($ in millions) March 31, 2022 March 31, 2021 U.S. & Canada $ 454 $ 143 International 131 (23) Unallocated corporate and other (21) (47) Interest expense, net of interest income (88) (100) (Provision) benefit for income taxes (99) 16 Net income (loss) $ 377 $ (11) |
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, 2022 | Mar. 31, 2021 | |
Computation of Basic Earnings Per Share | ||
Net income (loss) | $ 377 | $ (11) |
Shares for basic earnings per share (in shares) | 328.3 | 326.7 |
Basic earnings (loss) per share (in USD per share) | $ 1.15 | $ (0.03) |
Computation of Diluted Earnings Per Share | ||
Net income (loss) | $ 377 | $ (11) |
Shares for basic earnings per share (in shares) | 328.3 | 326.7 |
Effect of dilutive securities | ||
Stock-based compensation (in shares) | 1.7 | 0 |
Shares for diluted earnings per share (in shares) | 330 | 326.7 |
Diluted earnings (loss) per share (in USD per share) | $ 1.14 | $ (0.03) |
Antidilutive shares (in shares) | 2.3 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 42 | $ 49 | |
Deferred compensation costs related to unvested awards | $ 320 | $ 189 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, granted (in shares) | 1 | ||
Stock awards, vesting period | 4 years | ||
Stock awards, period of service after grant date | 1 year | ||
Stock awards, weighted average grant-date fair value (in USD per share) | $ 169 | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, granted (in shares) | 0.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 20.70% | 59.20% |
Cash paid for income taxes, net of refunds | $ 38 | $ 33 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees (Details) $ in Millions | Mar. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | $ 219 |
Recorded Liability for Guarantees | 121 |
Guarantees not in effect until underlying properties open | 45 |
Debt service | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 20 |
Recorded Liability for Guarantees | 5 |
Operating profit | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 182 |
Recorded Liability for Guarantees | 112 |
Other | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 17 |
Recorded Liability for Guarantees | $ 4 |
Commitments and Contingencies_2
Commitments and Contingencies - Contingent Purchase Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Guarantor Obligations [Line Items] | ||
Guarantee | $ 219 | |
Guarantee, recorded liability | 121 | |
Sheraton Grand Chicago Hotel | ||
Guarantor Obligations [Line Items] | ||
Guarantee, recorded liability | 300 | $ 300 |
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) - Class Action Lawsuits Related to Data Security Incident - lawsuit | Nov. 30, 2018 | Mar. 31, 2022 |
Loss Contingencies [Line Items] | ||
Number of new lawsuits filed | 100 | |
Claims remaining | 1 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Credit Facility | $ 800,000,000 | $ 1,050,000,000 |
Finance lease obligations | 144,000,000 | 146,000,000 |
Total debt | 9,469,000,000 | 10,138,000,000 |
Less current portion | (731,000,000) | (805,000,000) |
Long-term debt, noncurrent | 8,738,000,000 | 9,333,000,000 |
Series L Notes, interest rate of 3.3%, face amount of $173, maturing September 15, 2022 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 173,000,000 | 173,000,000 |
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 | 347,000,000 | 347,000,000 |
Series Q Notes, interest rate of 2.3%, face amount of $399, matured January 15, 2022 (effective interest rate of 2.5%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 0 | 399,000,000 |
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 | 746,000,000 | 746,000,000 |
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 | 291,000,000 | 291,000,000 |
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 | 326,000,000 | 327,000,000 |
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 | 290,000,000 | 290,000,000 |
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 | 445,000,000 | 445,000,000 |
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 | 349,000,000 | 349,000,000 |
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 | 298,000,000 | 297,000,000 |
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 | 548,000,000 | 566,000,000 |
Series DD Notes, interest rate of 2.1%, face amount of $224, maturing October 3, 2022 (effective interest rate of 1.2%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 224,000,000 | 226,000,000 |
Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 595,000,000 | 595,000,000 |
Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 987,000,000 | 987,000,000 |
Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 986,000,000 | 986,000,000 |
Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,090,000,000 | 1,090,000,000 |
Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 694,000,000 | 693,000,000 |
Senior Notes | Series L Notes, interest rate of 3.3%, face amount of $173, maturing September 15, 2022 (effective interest rate of 3.4%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.30% | |
Senior notes, face amount | $ 173,000,000 | |
Effective interest rate | 3.40% | |
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 | $ 350,000,000 | |
Effective interest rate | 4.00% | |
Senior Notes | Series Q Notes, interest rate of 2.3%, face amount of $399, matured January 15, 2022 (effective interest rate of 2.5%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.30% | |
Senior notes, face amount | $ 399,000,000 | |
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 | $ 750,000,000 | |
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 | $ 291,000,000 | |
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 | $ 318,000,000 | |
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 | $ 278,000,000 | |
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 | $ 450,000,000 | |
Effective interest rate | 4.20% | |
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 | $ 350,000,000 | |
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 | $ 300,000,000 | |
Effective interest rate | 4.80% | |
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 | $ 550,000,000 | |
Effective interest rate | 3.90% | |
Senior Notes | Series DD Notes, interest rate of 2.1%, face amount of $224, maturing October 3, 2022 (effective interest rate of 1.2%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.10% | |
Senior notes, face amount | $ 224,000,000 | |
Effective interest rate | 1.20% | |
Senior Notes | Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.80% | |
Senior notes, face amount | $ 600,000,000 | |
Effective interest rate | 6.00% | |
Senior Notes | Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.60% | |
Senior notes, face amount | $ 1,000,000,000 | |
Effective interest rate | 4.80% | |
Senior Notes | Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.50% | |
Senior notes, face amount | $ 1,000,000,000 | |
Effective interest rate | 3.70% | |
Senior Notes | Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.90% | |
Senior notes, face amount | $ 1,100,000,000 | |
Effective interest rate | 3.00% | |
Senior Notes | Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.80% | |
Senior notes, face amount | $ 700,000,000 | |
Effective interest rate | 2.80% | |
Other | ||
Debt Instrument [Line Items] | ||
Other | $ 136,000,000 | $ 135,000,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2022USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Apr. 01, 2023 | Jan. 01, 2022 | Dec. 31, 2021USD ($) | |
Short-term Debt [Line Items] | ||||||
Interest paid, net of amounts capitalized | $ 29 | $ 38 | ||||
Maximum aggregate borrowings under credit facility (up to) | 4,500 | |||||
Credit Facility | 800 | $ 1,050 | ||||
Line of Credit | Revolving Credit Facility | ||||||
Short-term Debt [Line Items] | ||||||
Maximum leverage ratio | 5.50 | |||||
Repayments of credit facility | 250 | |||||
Credit Facility | $ 800 | |||||
Line of Credit | Revolving Credit Facility | Forecast [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Maximum leverage ratio | 4 | |||||
Line of Credit | Revolving Credit Facility | Subsequent Event | ||||||
Short-term Debt [Line Items] | ||||||
Repayments of credit facility | $ 400 |
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, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | $ 141 | $ 144 |
Credit Facility | (800) | (1,050) |
Other noncurrent liabilities | (1,977) | (2,002) |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 141 | 144 |
Total noncurrent financial assets | 141 | 144 |
Senior Notes | (7,701) | (8,009) |
Credit Facility | (800) | (1,050) |
Other long-term debt | (100) | (135) |
Other noncurrent liabilities | (407) | (414) |
Total noncurrent financial liabilities | (9,008) | (9,608) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 128 | 131 |
Total noncurrent financial assets | 128 | 131 |
Senior Notes | (7,649) | (8,480) |
Credit Facility | (800) | (1,050) |
Other long-term debt | (100) | (140) |
Other noncurrent liabilities | (407) | (414) |
Total noncurrent financial liabilities | $ (8,956) | $ (10,084) |
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, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 1,414 | $ 430 |
Other comprehensive (loss) income before reclassifications | 14 | (155) |
Reclassification adjustments | 0 | 0 |
Total other comprehensive income (loss), net of tax | 14 | (155) |
Balance at end of period | 1,772 | 234 |
Intra-entity foreign currency long-term-investment gains (losses) | 12 | 27 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (351) | (139) |
Other comprehensive (loss) income before reclassifications | 14 | (155) |
Reclassification adjustments | 0 | 0 |
Total other comprehensive income (loss), net of tax | 14 | (155) |
Balance at end of period | (337) | (294) |
Other Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | 9 | 4 |
Other comprehensive (loss) income before reclassifications | 0 | 0 |
Reclassification adjustments | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 |
Balance at end of period | 9 | 4 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (342) | (135) |
Total other comprehensive income (loss), net of tax | 14 | (155) |
Balance at end of period | $ (328) | $ (290) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss and Shareholders' Equity - Changes in Shareholders' Equity (Deficit) (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | $ 1,414 | $ 430 |
Net income (loss) | 377 | (11) |
Other comprehensive income (loss) | 14 | (155) |
Stock-based compensation plans | (33) | (30) |
Balance at end of period | 1,772 | 234 |
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) | 326.3 | 324.4 |
Stock-based compensation plans (in shares) | 1 | 1.2 |
Balance at end of period | $ 5 | $ 5 |
Balance at end of period (in shares) | 327.3 | 325.6 |
Additional Paid-in-Capital | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | $ 5,892 | $ 5,851 |
Stock-based compensation plans | (61) | (64) |
Balance at end of period | 5,831 | 5,787 |
Retained Earnings | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | 10,305 | 9,206 |
Net income (loss) | 377 | (11) |
Balance at end of period | 10,682 | 9,195 |
Treasury Stock, at Cost | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | (14,446) | (14,497) |
Stock-based compensation plans | 28 | 34 |
Balance at end of period | (14,418) | (14,463) |
Accumulated Other Comprehensive Loss | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | (342) | (135) |
Other comprehensive income (loss) | 14 | (155) |
Balance at end of period | $ (328) | $ (290) |
Contracts with Customers (Detai
Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Accounts and notes receivable, net, allowance for credit losses | $ 200 | $ 187 |
Provision for credit losses | 19 | |
Accrued Expenses and Other | ||
Disaggregation of Revenue [Line Items] | ||
Liability for guest loyalty program | 333 | 346 |
Loyalty Program | ||
Disaggregation of Revenue [Line Items] | ||
Change in contract with customer liability | 118 | |
Contract with customer liability | 6,589 | 6,471 |
Reclassification of deferred revenue to liability for guest loyalty program | 61 | |
Deferred revenue recognized | 567 | |
Liability for guest loyalty program | 2,626 | 2,522 |
Deferred revenue | ||
Disaggregation of Revenue [Line Items] | ||
Change in contract with customer liability | (73) | |
Contract with customer liability | 1,454 | $ 1,527 |
Deferred revenue recognized | $ 92 |
Business Segments - Segment Rev
Business Segments - Segment Revenues (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 2 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Number of operating segments | segment | 2 | |
Revenues | $ 4,199 | $ 2,316 |
Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,946 | 2,112 |
Unallocated corporate and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 253 | 204 |
U.S. & Canada | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,271 | 1,721 |
International | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 675 | 391 |
Fee revenues | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 815 | 445 |
Contract investment amortization | (24) | (17) |
Revenues | 791 | 428 |
Fee revenues | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 666 | 337 |
Contract investment amortization | (24) | (17) |
Revenues | 642 | 320 |
Fee revenues | U.S. & Canada | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 489 | 250 |
Contract investment amortization | (14) | (13) |
Revenues | 475 | 237 |
Fee revenues | International | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 177 | 87 |
Contract investment amortization | (10) | (4) |
Revenues | 167 | 83 |
Owned, leased, and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 262 | 108 |
Owned, leased, and other | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 245 | 101 |
Owned, leased, and other | U.S. & Canada | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 92 | 35 |
Owned, leased, and other | International | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 153 | 66 |
Reimbursements | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,146 | 1,780 |
Reimbursements | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,059 | 1,691 |
Reimbursements | U.S. & Canada | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 2,704 | 1,449 |
Reimbursements | International | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 355 | $ 242 |
Business Segments - Segment Pro
Business Segments - Segment Profits (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profits | $ 558 | $ 84 |
Interest expense, net of interest income | (88) | (100) |
(Provision) benefit for income taxes | (99) | 16 |
Net income (loss) | 377 | (11) |
Unallocated corporate and other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profits | (21) | (47) |
U.S. & Canada | Total segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profits | 454 | 143 |
International | Total segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profits | $ 131 | $ (23) |