Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 07, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 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 | 7750 Wisconsin Avenue | ||
Entity Address, City or Town | Bethesda | ||
Entity Address, State or Province | MD | ||
Entity Address, Postal Zip Code | 20814 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 37,283,265,895 | ||
Entity Common Stock, Shares Outstanding | 308,121,159 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement prepared for the 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001048286 | ||
Current Fiscal Year End Date | --12-31 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tysons, Virginia |
Auditor Firm ID | 42 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
REVENUES | ||||
Total revenue | $ 20,773 | $ 13,857 | $ 10,571 | |
OPERATING COSTS AND EXPENSES | ||||
Depreciation, amortization, and other | 193 | 220 | 346 | |
General, administrative, and other | 891 | 823 | 762 | |
Restructuring, merger-related charges, and other | 12 | 8 | 267 | |
Costs and Expenses, Total | 17,311 | 12,107 | 10,487 | |
OPERATING INCOME | 3,462 | 1,750 | 84 | |
Gains and other income, net | 11 | 10 | 9 | |
Loss on extinguishment of debt | 0 | (164) | 0 | |
Interest expense | (403) | (420) | (445) | |
Interest income | 26 | 28 | 27 | |
Equity in earnings (losses) | [1] | 18 | (24) | (141) |
INCOME (LOSS) BEFORE INCOME TAXES | 3,114 | 1,180 | (466) | |
(Provision) benefit for income taxes | (756) | (81) | 199 | |
NET INCOME (LOSS) | $ 2,358 | $ 1,099 | $ (267) | |
EARNINGS (LOSS) PER SHARE | ||||
Earnings (loss) per share - basic (in USD per share) | $ 7.27 | $ 3.36 | $ (0.82) | |
Earnings (loss) per share - diluted (in USD per share) | $ 7.24 | $ 3.34 | $ (0.82) | |
Base management fees | ||||
REVENUES | ||||
Gross fee revenues | $ 1,044 | $ 669 | $ 443 | |
Franchise fees | ||||
REVENUES | ||||
Gross fee revenues | 2,505 | 1,790 | 1,153 | |
Incentive management fees | ||||
REVENUES | ||||
Gross fee revenues | 529 | 235 | 87 | |
Net fee revenues | ||||
REVENUES | ||||
Gross fee revenues | 4,078 | 2,694 | 1,683 | |
Contract investment amortization | (89) | (75) | (132) | |
Total revenue | 3,989 | 2,619 | 1,551 | |
Owned, leased, and other | ||||
REVENUES | ||||
Total revenue | 1,367 | 796 | 568 | |
OPERATING COSTS AND EXPENSES | ||||
Cost of revenues | 1,074 | 734 | 677 | |
Reimbursements | ||||
REVENUES | ||||
Total revenue | [1] | 15,417 | 10,442 | 8,452 |
OPERATING COSTS AND EXPENSES | ||||
Cost of revenues | [1] | $ 15,141 | $ 10,322 | $ 8,435 |
[1]See Note 15 for disclosure of related party amounts. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ 2,358 | $ 1,099 | $ (267) |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | (389) | (212) | 229 |
Other adjustments, net of tax | 2 | 5 | (3) |
Total other comprehensive income (loss), net of tax | (387) | (207) | 226 |
Comprehensive income (loss) | $ 1,971 | $ 892 | $ (41) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and equivalents | $ 507 | $ 1,393 |
Accounts and notes receivable, net | 2,571 | 1,982 |
Prepaid expenses and other | 235 | 251 |
Total current assets | 3,313 | 3,626 |
Property and equipment, net | 1,585 | 1,503 |
Intangible assets | ||
Intangible assets | 8,747 | 8,926 |
Goodwill | 8,872 | 9,073 |
Total intangible assets | 17,619 | 17,999 |
Equity method investments | 335 | 387 |
Notes receivable, net | 152 | 144 |
Deferred tax assets | 240 | 228 |
Operating lease assets | 987 | 1,062 |
Other noncurrent assets | 584 | 604 |
Total assets | 24,815 | 25,553 |
Current liabilities | ||
Current portion of long-term debt | 684 | 805 |
Accounts payable | 746 | 726 |
Accrued payroll and benefits | 1,299 | 1,187 |
Accrued expenses and other | 1,296 | 1,167 |
Total current liabilities | 7,339 | 6,407 |
Long-term debt | 9,380 | 9,333 |
Deferred tax liabilities | 313 | 169 |
Operating lease liabilities | 1,034 | 1,098 |
Other noncurrent liabilities | 1,842 | 2,002 |
Stockholders’ equity | ||
Class A Common Stock | 5 | 5 |
Additional paid-in-capital | 5,965 | 5,892 |
Retained earnings | 12,342 | 10,305 |
Treasury stock, at cost | (17,015) | (14,446) |
Accumulated other comprehensive loss | (729) | (342) |
Shareholder's equity (deficit) | 568 | 1,414 |
Liabilities and deficit, total | 24,815 | 25,553 |
Brands | ||
Intangible assets | ||
Intangible assets | 5,812 | 5,979 |
Contract acquisition costs and other | ||
Intangible assets | ||
Intangible assets | 2,935 | 2,947 |
Guest loyalty program | ||
Current liabilities | ||
Liability for guest loyalty program | 3,314 | 2,522 |
Contract with customer | 3,280 | 3,949 |
Deferred revenue | ||
Current liabilities | ||
Contract with customer | $ 1,059 | $ 1,181 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
OPERATING ACTIVITIES | |||||
Net income (loss) | $ 2,358 | $ 1,099 | $ (267) | ||
Adjustments to reconcile to cash provided by operating activities: | |||||
Depreciation, amortization, and other | 282 | 295 | 478 | ||
Stock-based compensation | 192 | 182 | 201 | ||
Income taxes | 280 | (281) | (478) | ||
Contract acquisition costs | (149) | (210) | (142) | ||
Restructuring, merger-related charges, and other | (8) | (10) | 200 | ||
Working capital changes | (542) | 110 | (28) | ||
Loss on extinguishment of debt | 0 | 164 | 0 | ||
Deferred revenue changes and other | 69 | (144) | 1,140 | ||
Net cash provided by operating activities | 2,363 | 1,177 | 1,639 | ||
INVESTING ACTIVITIES | |||||
Capital and technology expenditures | (332) | (183) | (135) | ||
Dispositions | 1 | 12 | 260 | ||
Loan advances | (11) | (13) | (41) | ||
Loan collections | 14 | 40 | 8 | ||
Other | 31 | (43) | (57) | ||
Net cash (used in) provided by investing activities | (297) | (187) | 35 | ||
FINANCING ACTIVITIES | |||||
Commercial paper/Credit Facility, net | (182) | 150 | (2,290) | ||
Issuance of long-term debt | 983 | 1,793 | 3,561 | ||
Repayment of long-term debt | (804) | (2,174) | (1,887) | ||
Issuance of Class A Common Stock | 0 | 2 | 0 | ||
Debt extinguishment costs | 0 | (155) | 0 | ||
Dividends paid | (321) | 0 | (156) | ||
Purchase of treasury stock | (2,566) | 0 | (150) | ||
Stock-based compensation withholding taxes | (89) | (90) | (103) | ||
Other | 17 | 11 | (8) | ||
Net cash used in financing activities | (2,962) | (463) | (1,033) | ||
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (896) | 527 | 641 | ||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 1,421 | [1] | 894 | 253 | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | 525 | [1] | 1,421 | [1] | 894 |
Restricted cash | 18 | 28 | |||
Guest loyalty program | |||||
Adjustments to reconcile to cash provided by operating activities: | |||||
Liability for guest loyalty program | $ (119) | $ (28) | $ 535 | ||
[1]The 2022 amounts include beginning restricted cash of $28 million at December 31, 2021 and ending restricted cash of $18 million at December 31, 2022, which we present in the “Prepaid expenses and other” and “Other noncurrent assets” captions of our Balance Sheets. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A Common Stock Class A Common Stock | Additional Paid-in- Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock, at Cost | Accumulated Other Comprehensive Loss | |
Beginning balance at Dec. 31, 2019 | $ 703 | $ (15) | $ 5 | $ 5,800 | $ 9,644 | $ (15) | $ (14,385) | $ (361) | |
Beginning balance (in shares) at Dec. 31, 2019 | 324 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (267) | (267) | |||||||
Other comprehensive income (loss) | 226 | 226 | |||||||
Dividends | (156) | (156) | |||||||
Stock-based compensation plans (in shares) | 1.4 | ||||||||
Stock-based compensation plans | 89 | 51 | 38 | ||||||
Purchase of treasury stock | (150) | (150) | |||||||
Purchase of treasury stock (in shares) | (1) | ||||||||
Ending balance at Dec. 31, 2020 | 430 | $ 5 | 5,851 | 9,206 | (14,497) | (135) | |||
Ending balance (in shares) at Dec. 31, 2020 | 324.4 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 1,099 | 1,099 | |||||||
Other comprehensive income (loss) | (207) | (207) | |||||||
Stock-based compensation plans (in shares) | 1.9 | ||||||||
Stock-based compensation plans | 92 | 41 | 51 | ||||||
Ending balance at Dec. 31, 2021 | 1,414 | $ 5 | 5,892 | 10,305 | (14,446) | (342) | |||
Ending balance (in shares) at Dec. 31, 2021 | 326.3 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 2,358 | 2,358 | |||||||
Other comprehensive income (loss) | (387) | (387) | |||||||
Dividends | (321) | (321) | |||||||
Stock-based compensation plans (in shares) | 1.1 | ||||||||
Stock-based compensation plans | 104 | 73 | 31 | ||||||
Purchase of treasury stock | (2,600) | (2,600) | |||||||
Purchase of treasury stock (in shares) | (16.8) | ||||||||
Ending balance at Dec. 31, 2022 | $ 568 | $ 5 | $ 5,965 | $ 12,342 | $ (17,015) | $ (729) | |||
Ending balance (in shares) at Dec. 31, 2022 | 310.6 | 310.6 | [1] | ||||||
[1]Our restated certificate of incorporation authorizes 800 million shares of our common stock, with a par value of $0.01 per share and 10 million shares of preferred stock, without par value. At year-end 2022, we had 310.6 million of these authorized shares of our common stock and no preferred stock outstanding. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-02 [Member] | ||
Dividends declared (in USD per share) | $ 1 | $ 0.48 | |
Common stock, authorized (in shares) | 800,000,000 | ||
Common stock, par value (in USD per share) | $ 0.01 | ||
Preferred stock, authorized (in shares) | 10,000,000 | ||
Common stock, outstanding (in shares) | 310,600,000 | ||
Preferred stock, outstanding (in shares) | 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The 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 Consolidated Financial Statements as our “Financial Statements,” (2) our Consolidated Statements of Income (Loss) as our “Income Statements,” (3) our Consolidated Balance Sheets as our “Balance Sheets,” (4) our 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 Consolidated Financial Statements, unless otherwise stated. Preparation of financial statements that conform with U.S. generally accepted accounting principles (“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. 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 at fiscal year-end 2022 and fiscal year-end 2021 and the results of our operations and cash flows for fiscal years 2022, 2021, and 2020. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Base Management and Incentive Management Fees : For our managed hotels, we have performance obligations to provide hotel management services and a license to our intellectual property for the use of our brand names. As compensation for such services, we are generally entitled to receive base fees, which are a percentage of the revenues of hotels, and incentive management fees, which are generally based on a measure of hotel profitability. Both the base and incentive management fees are variable consideration, as the transaction price is based on a percentage of revenue or profit, as defined in each contract. We recognize base management fees on a monthly basis over the term of the agreement as those amounts become payable. We recognize incentive management fees on a monthly basis over the term of the agreement based on each property’s financial results, as long as we do not expect a significant reversal due to projected future hotel performance or cash flows in future periods. Franchise Fee and Royalty Fee Revenue : For our franchised hotels, we have a performance obligation to provide franchisees and operators a license to our intellectual property for use of certain of our brand names. As compensation for such services, we are typically entitled to initial application fees and ongoing royalty fees. Our ongoing royalty fees represent variable consideration, as the transaction price is based on a percentage of certain revenues of the hotels, as defined in each contract. We recognize royalty fees on a monthly basis over the term of the agreement as those amounts become payable. Initial application and relicensing fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. Owned and Leased Hotel Revenue : At our owned and leased hotels, we have performance obligations to provide accommodations and other ancillary services to hotel guests. As compensation for such goods and services, we are typically entitled to a fixed nightly fee for an agreed upon period and additional fixed fees for any ancillary services purchased. These fees are generally payable at the time the hotel guest checks out of the hotel. We generally satisfy the performance obligations over time, and we recognize the revenue from room sales and from other ancillary guest services on a daily basis, as the rooms are occupied and we have rendered the services. Cost Reimbursements : Under our management and franchise agreements, we are entitled to be reimbursed for certain costs we incur on behalf of the managed, franchised, and licensed properties, with no added mark-up. These costs primarily consist of payroll and related expenses at managed properties where we are the employer of the employees at the properties and include certain operational and administrative costs as provided for in our contracts with the owners. We are entitled to reimbursement in the period we incur the related reimbursable costs, which we recognize within the “Cost reimbursement revenue” caption of our Income Statements. Under our management and franchise agreements, hotel owners and franchisees participate in certain centralized programs and services, such as marketing, sales, reservations, and insurance programs. We operate these programs and services for the benefit of our hotel owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. The amounts we charge for these programs and services are generally a combination of fixed fees and variable fees based on sales or other metrics and are payable on a monthly basis. We generally recognize revenue within the “Cost reimbursement revenue” caption of our Income Statements when the amounts may be billed to hotel owners, and we recognize expenses within the “Reimbursed expenses” caption as they are incurred. This pattern of recognition results in timing differences between the costs incurred for centralized programs and services and the related reimbursement from hotel owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. In addition, we present in the “ Reimbursed expenses Other Revenue : Includes Global Design fees, which we describe below, termination fees, and other property and brand revenues. We generally recognize termination fees when collection is probable and other revenue as services are rendered. Amounts received in advance are deferred as liabilities. We provide certain hotel design and construction review (“Global Design”) services to our managed and franchised hotel owners, generally during the period prior to a hotel’s opening or during the period a hotel is converting to a Marriott brand (the “pre-opening period”). As compensation for such services, we may be entitled to receive a one-time fixed fee that is payable during the pre-opening period of the hotel. As these services are not a distinct performance obligation, we recognize the fees on a straight-line basis over the initial term of the management or franchise agreement within the “Owned, leased, and other revenue” caption of our Income Statements. Practical Expedients and Exemptions : We do not disclose the amount of variable consideration that we expect to recognize in future periods in the following circumstances: (1) if we recognize the revenue based on the amount invoiced or services performed; (2) for sales-based or usage-based royalty promised in exchange for a license of intellectual property; or (3) if the consideration is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation, and the terms of the consideration relate specifically to our efforts to transfer, or to a specific outcome from transferring the service. We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these to the applicable governmental agencies on a periodic basis. We do not include these taxes in determining the transaction price. Loyalty Program : Loyalty Program members earn points based on the money they spend at our properties; the exchange of timeshare ownership interests; purchases of timeshare interval, fractional ownership, and residential products; and through participation in travel experiences and affiliated partners’ programs, such as those offered by credit card, car rental, airline, and other companies. Members can redeem points for stays at most of our properties, airline tickets, airline frequent flyer program miles, rental cars, merchandise, and a variety of other awards. Points cannot be redeemed for cash. Under our Loyalty Program, we have a performance obligation to provide or arrange for the provision of goods or services for free or at a discount to Loyalty Program members in exchange for the redemption of points earned from past activities. We operate our Loyalty Program as a cross-brand marketing program to participating properties. Our management and franchise agreements require that properties reimburse us for a portion of the costs of operating the Loyalty Program, with no added mark-up, including costs related to the following activities, which we expense as incurred in our “Reimbursed expense” caption: marketing, promotion, communication with, and performing member services for Loyalty Program members. We generally receive monthly cash contributions from managed, franchised, owned, and leased properties based on a portion of qualified spend by Loyalty Program members (when the points are earned). We recognize these contributions into revenue as we provide the related service (when the points are redeemed). The amount of revenue we recognize upon point redemption is based on a blend of historical funding rates and is impacted by our estimate of the “breakage” for points that members will never redeem. We estimate breakage based on our historical experience and expectations of future member behavior. We recognize revenue net of the redemption cost within our “Cost reimbursement revenue” caption on our Income Statements, as our performance obligation is to facilitate the transaction between the Loyalty Program member and the managed or franchised property or program partner. Our redemption cost, which is generally based on redemption rates that can increase in periods in which occupancy at the property exceeds a certain threshold, could be higher or lower than our revenue recognized in any given period. We have multi-year agreements for our co-branded credit cards associated with our Loyalty Program. Under these agreements, we have performance obligations to provide a license to the intellectual property associated with our brands and marketing lists (“Licensed IP”) to the financial institutions that issue the credit cards, to arrange for the redemption of Loyalty Program points as discussed in the preceding paragraph, and to arrange for the redemption of free night certificates and gift cards provided to cardholders. We receive fees from these agreements, including fixed amounts that are primarily payable at contract inception, and variable amounts that are paid to us monthly over the term of the agreements, generally based on: (1) the number of free night certificates issued or redeemed; (2) the number of Loyalty Program points purchased; (3) the volume of cardholder spend; and (4) the number of gift cards issued. We allocate those fees among the performance obligations, including the Licensed IP, our Loyalty Program points, free night certificates, and gift cards provided to cardholders based on their estimated standalone selling prices. The estimation of the standalone selling prices requires significant judgments based upon generally accepted valuation methodologies regarding the value of our Licensed IP, the amount of funding we will receive, and the number of Loyalty Program points, free night certificates, and gift cards cardholders will ultimately redeem. We base our estimates of these amounts on our historical experience and expectation of future cardholder behavior. We recognize the portion of the Licensed IP revenue that meets the sales-based royalty criteria as the credit cards are used and the remaining portion of the Licensed IP revenue on a straight-line basis over the contract term. In our Income Statements, we primarily recognize Licensed IP revenue in the “Franchise fees” caption, and we recognize a portion in the “Cost reimbursement revenue” caption. We recognize the revenue related to the Loyalty Program points as discussed in the preceding paragraph. We recognize the revenue related to the free night certificates and gift cards when the related service is provided. We recognize revenue net of the redemption cost, as our performance obligation is to facilitate the transaction between the Loyalty Program member and the managed or franchised property. Contract Balances : We generally receive payments from customers as we satisfy our performance obligations. We record a receivable when we have an unconditional right to receive payment and only the passage of time is required before payment is due. We record deferred revenue when we receive payment, or have the unconditional right to receive payment, in advance of the satisfaction of our performance obligations related to franchise application and relicensing fees, Global Design fees, credit card branding license fees, and our Loyalty Program. Current and noncurrent deferred revenue decreased by $196 million, to $1,331 million at December 31, 2022, from $1,527 million at December 31, 2021, primarily as a result of $330 million of revenue recognized in 2022 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 below. The decrease was partially offset by revenue deferred in 2022 related to our co-branded credit cards, gift cards, certain centralized programs and services fees, and franchise application and relicensing fees. Our current and noncurrent liability for guest loyalty program increased by $123 million, to $6,594 million at December 31, 2022, from $6,471 million at December 31, 2021, primarily reflecting an increase in points earned by members. This includes a $241 million reclassification from deferred revenue to the liability for guest loyalty program as a result of points that were earned during the period by members using our U.S.-issued co-branded credit cards, which were prepaid by the financial institutions in 2020. The increase was partially offset by $2,692 million of revenue recognized in 2022, 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. At each reporting period, we evaluate the estimates used in the recognition of Loyalty Program revenues, including estimates of the breakage of points that members will never redeem and the amount of funding we expect to receive over the life of the agreements with various third parties. In 2022, the updated estimates resulted in a net increase in revenue, and a corresponding reduction in the liability for guest loyalty program of approximately $106 million. Costs Incurred to Obtain and Fulfill Contracts with Customers We incur certain costs to obtain and fulfill contracts with customers, which we capitalize and amortize on a straight-line basis over the initial, non-cancellable term of the contract. We classify incremental costs of obtaining a contract with a customer in the “Contract acquisition costs and other” caption of our Balance Sheets, the related amortization in the “Contract investment amortization” caption of our Income Statements, and the cash flow impact in the “Contract acquisition costs” caption of our Statements of Cash Flows. We assess the assets for impairment when events or changes in circumstances indicate that we may not be able to recover the carrying amount. We recognize an impairment loss for the amount by which the carrying amount exceeds the expected net future cash flows. We classify certain direct costs to fulfill a contract with a customer in the “Other noncurrent assets” and “Prepaid expenses and other” captions of our Balance Sheets, and the related amortization in the “Owned, leased, and other - direct expenses” caption of our Income Statements. We had capitalized costs to fulfill contracts with customers of $379 million at December 31, 2022 and $368 million at December 31, 2021. See Note 10 for information on capitalized costs incurred to obtain contracts with customers. Real Estate Sales We recognize a gain or loss on real estate transactions when control of the asset transfers to the buyer, generally at the time the sale closes. In sales transactions where we retain a management contract, the terms and conditions of the management contract are generally comparable to the terms and conditions of the management contracts obtained directly with third-party owners in competitive processes. Retirement Savings Plan We contribute to tax-qualified retirement plans for the benefit of U.S. employees who meet certain eligibility requirements and choose to participate in the plans. Participating employees specify the percentage or amount of salary they wish to contribute from their compensation, and the Company typically makes matching or supplemental contributions. We recognized compensation costs from Company contributions of $137 million in 2022, $80 million in 2021, and $75 million in 2020. Non-U.S. Operations The U.S. dollar is the functional currency of our consolidated and unconsolidated entities operating in the U.S. The functional currency of our consolidated and unconsolidated entities operating outside of the U.S. is generally the principal currency of the economic environment in which the entity primarily generates and expends cash. We translate the financial statements of consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars, and we do the same, as needed, for unconsolidated entities whose functional currency is not the U.S. dollar. We translate assets and liabilities at the exchange rate in effect as of the financial statement date and translate income statement accounts using the weighted average exchange rate for the period. We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of stockholders’ equity. We report gains and losses from currency exchange rate changes for intercompany receivables and payables that are not of a long-term investment nature, as well as for third-party transactions, currently in operating costs and expenses. Stock-Based Compensation Our stock-based compensation awards primarily consist of restricted stock units (“RSUs”). We measure compensation costs for our stock-based payment transactions at fair value based on the average of the high and low stock price on the grant date (discounted for the lack of marketability and dividends), and we recognize those costs in our Financial Statements over the vesting period during which the employee provides service in exchange for the award. Advertising Costs We expense costs to produce advertising as they are incurred and to communicate advertising as the communication occurs and record such amounts in our “ Reimbursed expenses Income Taxes We record the amounts of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events we have recognized in our Financial Statements or tax returns, using judgment in assessing future profitability and the likely future tax consequences of those events. We base our estimates of deferred tax assets and liabilities on current tax laws, rates and interpretations, and, in certain cases, business plans and other expectations about future outcomes. We develop our estimates of future profitability based on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. We account for U.S. tax on Global Intangible Low-Taxed Income in the period incurred. We generally recognize the effect of the tax law changes in the period of enactment. Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of our deferred tax liabilities or the valuations of our deferred tax assets over time. Our accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. For tax positions we have taken or expect to take in a tax return, we apply a more likely than not threshold (that is, a likelihood of more than 50 percent), under which we must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, to continue to recognize the benefit. In determining our provision for income taxes, we use judgment, reflecting our estimates and assumptions, in applying the more likely than not threshold. We recognize accrued interest and penalties for our unrecognized tax benefits as a component of tax expense. See Note 6 for further information. Cash and Equivalents We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents. Accounts Receivable Our accounts receivable primarily consist of amounts due from hotel owners with whom we have management and franchise agreements and include reimbursements of costs we incurred on behalf of managed and franchised properties. We record an allowance for credit losses measured over the contractual life of the instrument based on an assessment of historical collection activity and current and forecasted future economic conditions by region. Our allowance for credit losses was $191 million at December 31, 2022 and $187 million at December 31, 2021. The increase during 2022 was primarily due to our provision for credit losses, partially offset by write-offs of amounts deemed uncollectible. Our provision for credit losses totaled $27 million in 2022, $22 million in 2021, and $136 million in 2020. Assets Held for Sale We consider properties to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and we expect the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given our estimate of current market value. Upon designation of a property as an asset held for sale, we record the property’s value at the lower of its carrying amount or its estimated fair value, less estimated costs to sell, and we cease depreciation. Goodwill We test goodwill for potential impairment at least annually in the fourth quarter, or more frequently if an event or other circumstance indicates that we may not be able to recover the carrying amount of the net assets of the reporting unit. In evaluating goodwill for impairment, we may assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Factors we consider when making this determination include, but are not limited to, assessing general economic conditions, hospitality industry trends, and overall financial performance of the reporting unit. If we bypass the qualitative assessment, or if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform a quantitative impairment test by comparing the fair value of a reporting unit with its carrying amount. We calculate the estimated fair value of a reporting unit using a combination of the income and market approaches. For the income approach, we use internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. For the market approach, we use internal analyses based primarily on market comparables. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and macro general economic condition projections, and our expectations. We have had no goodwill impairment charges for the last three fiscal years. Intangibles and Long-Lived Assets We assess indefinite-lived intangible assets for continued indefinite use and for potential impairment annually, or more frequently if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Like goodwill, we may first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying amount. If the carrying amount of the asset exceeds the fair value, we recognize an impairment loss in the amount of that excess. We test definite-lived intangibles and long-lived asset groups for recoverability when changes in circumstances indicate that we may not be able to recover the carrying amount; for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. We also test recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and we expect to complete the plan within a year. We evaluate recoverability of an asset group by comparing its carrying amount, including right-of-use assets, to the future net undiscounted cash flows that we expect the asset group will generate. If the comparison indicates that we will not be able to recover the carrying amount of an asset group, we recognize an impairment loss for the amount by which the carrying amount exceeds the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life. We calculate the estimated fair value of an intangible asset or asset group using the income approach or the market approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation. Investments We hold equity interests in ventures established to develop or acquire and own hotel properties or that otherwise support our hospitality operations. We account for these investments as either an equity method investment, a financial asset, or a controlled subsidiary. We apply the equity method of accounting if we have significant influence over the entity, typically when we hold 20 percent or more of the voting common stock (or equivalent) of an investee but do not have a controlling financial interest. In certain circumstances, such as with investments in limited liability companies or limited partnerships, we apply the equity method of accounting when we own as little as three to five percent. We account for financial assets at fair value if it is readily determinable, or using the fair value alternative method, whereby investments are measured at cost less impairment, adjusted for observable price changes. We consolidate entities that we control. When we acquire an investment that qualifies for the equity method of accounting, we determine the acquisition date fair value of the identifiable assets and liabilities. If our carrying amount exceeds our proportional share in the equity of the investee, we amortize the difference on a straight-line basis over the underlying assets’ estimated useful lives when calculating equity method earnings attributable to us, excluding the difference attributable to land, which we do not amortize. We evaluate an investment for impairment when circumstances indicate that we may not be able to recover the carrying amount. When evaluating our ventures, we consider loan defaults, significant underperformance relative to historical or projected operating performance, or significant negative industry or economic trends. Additionally, a venture’s commitment to a plan to sell some or all of its assets could cause us to evaluate the recoverability of the venture’s individual long-lived assets and possibly the venture itself. We impair investments we account for using the equity method of accounting when we determine that there has been an “other-than-temporary” decline in the venture’s estimated fair value compared to its carrying amount. We perform qualitative assessments for investments we account for using the fair value alternative method and we record any associated impairment when the fair value is less than the carrying amount. Under the accounting guidance for the consolidation of variable interest entities, we analyze our variable interests, including equity investments, loans, and guarantees, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analysis to determine if we must consolidate a variable interest entity as its primary beneficiary. Fair Value Measurements We have various financial instruments we must measure at fair value on a recurring basis, including certain marketable securities and derivatives. See Note 12 for further information. We also apply the provisions of fair value measurement to various nonrecurring measurements for our financial and nonfinancial assets and liabilities. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 inputs include unobservable inputs that reflect our assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data. Derivative Instruments We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if, at inception, we expect the derivative will be highly effective in offsetting the underlying hedged cash flows or fair value and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate a hedge as a cash flow hedge, fair value hedge, or a hedge of the net investment in non-U.S. operations based on the exposure we are hedging. For the effective portion of qualifying cash flow hedges, we record changes in fair value in accumulated other comprehensive income (“AOCI”). We release the derivative’s gain or loss from AOCI to match the timing of the underlying hedged items’ effect on earnings. The change in fair value of qualifying fair value hedges as well as changes in fair value of the underlying hedged items to the hedged risks are recorded concurrently in earnings. We review the effectiveness of our hedging instruments quarterly and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, we release gains and losses from AOCI based on the timing of the underlying cash flows or revenue recognized, unless the termination results from the failure of the intended transaction to occur in the expected time frame. Such untimely transactions require us to immediately recognize in earnings the gains and/or losses that we previously recorded in AOCI. Changes in interest rates, currency exchange rates, and equity securities expose us to market risk. We manage our exposure to these risks by monitoring available financing alternatives, as well as through development and application of credit granting policies. We also use derivative instruments as part of our overall strategy to manage our exposure to market risks. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. Loan Loss Reserves We may make senior, mezzanine, and other loans to owners of hotels that we o |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONIn the 2022 fourth quarter, we announced that we reached an agreement with Hoteles City Express, S.A.B. de C.V. to acquire the City Express brand portfolio for $100 million. As of October 19, 2022, the portfolio included 152 mid-scale hotels (17,356 rooms) located in Mexico, Costa Rica, Colombia, and Chile. Upon closing of the transaction, which is subject to regulatory approval and other customary closing conditions, City Express will become part of our franchise system. We expect the transaction could close in the first half of 2023. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share, the latter of which uses the treasury stock method to calculate the dilutive effect of the Company’s potential common stock: (in millions, except per share amounts) 2022 2021 2020 Computation of Basic Earnings Per Share Net income (loss) $ 2,358 $ 1,099 $ (267) Shares for basic earnings per share 324.4 327.2 325.8 Basic earnings (loss) per share $ 7.27 $ 3.36 $ (0.82) Computation of Diluted Earnings Per Share Net income (loss) $ 2,358 $ 1,099 $ (267) Shares for basic earnings per share 324.4 327.2 325.8 Effect of dilutive securities Stock-based compensation (1) 1.4 2.1 — Shares for diluted earnings per share 325.8 329.3 325.8 Diluted earnings (loss) per share $ 7.24 $ 3.34 $ (0.82) (1) For the calculation of diluted loss per share for 2020, we excluded share-based compensation securities of 1.4 million because the effect was anti-dilutive. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION RSUs and PSUs We granted RSUs in 2022 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 performance-based RSUs (“PSUs”) in 2022 to certain executives, which are earned, subject to continued employment and the satisfaction of certain performance and market conditions 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. We had deferred compensation costs for unvested awards for RSUs, including PSUs, of approximately $179 million at year-end 2022 and $189 million at year-end 2021. The weighted average remaining term for RSUs outstanding at year-end 2022 was 2.0 years. The following table provides additional information on RSUs, including PSUs, for the last three fiscal years: 2022 2021 2020 Stock-based compensation expense (in millions) $ 181 $ 171 $ 188 Weighted average grant-date fair value (per unit) $ 168 $ 141 $ 101 Aggregate intrinsic value of distributed RSUs (in millions) $ 253 $ 205 $ 234 The following table presents the changes in our outstanding RSUs, including PSUs, during 2022 and the associated weighted average grant-date fair values: Number of RSUs (in millions) Weighted Average Grant-Date Fair Value (per unit) Outstanding at year-end 2021 4.4 $ 109 Granted 1.1 168 Distributed (1.5) 114 Forfeited (0.2) 127 Outstanding at year-end 2022 3.8 $ 125 Other Information At year-end 2022, we had 24 million remaining shares authorized under the Marriott and Starwood Hotels & Resorts Worldwide, LLC, formerly known as Starwood Hotels & Resorts Worldwide, Inc. (“Starwood”), stock plans. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of our earnings (losses) before income taxes for the last three fiscal years consisted of: ($ in millions) 2022 2021 2020 U.S. $ 2,268 $ 890 $ (320) Non-U.S. 846 290 (146) $ 3,114 $ 1,180 $ (466) Our (provision) benefit for income taxes for the last three fiscal years consisted of: ($ in millions) 2022 2021 2020 Current -U.S. Federal $ (364) $ 99 $ 9 -U.S. State (82) 24 (41) -Non-U.S. (155) (86) (78) (601) 37 (110) Deferred -U.S. Federal (129) (122) 180 -U.S. State (25) (37) 81 -Non-U.S. (1) 41 48 (155) (118) 309 $ (756) $ (81) $ 199 Unrecognized Tax Benefits The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2020 to the end of 2022: ($ in millions) Amount Unrecognized tax benefit at beginning of 2020 $ 569 Change attributable to tax positions taken in prior years (66) Change attributable to tax positions taken during the current period 4 Decrease attributable to settlements with taxing authorities (43) Unrecognized tax benefit at year-end 2020 464 Change attributable to tax positions taken in prior years (134) Change attributable to tax positions taken during the current period — Decrease attributable to settlements with taxing authorities (48) Unrecognized tax benefit at year-end 2021 282 Change attributable to tax positions taken in prior years (15) Change attributable to tax positions taken during the current period 3 Decrease attributable to settlements with taxing authorities (15) Unrecognized tax benefit at year-end 2022 $ 255 Our unrecognized tax benefit balances included $241 million at year-end 2022, $266 million at year-end 2021, and $410 million at year-end 2020 of tax positions that, if recognized, would impact our effective tax rate. It is reasonably possible that within the next 12 months we will reach resolution of income tax examinations in one or more jurisdictions. The actual amount of any change to our unrecognized tax benefits could vary depending on the timing and nature of the settlement. Therefore, an estimate of the change cannot be provided. We recognize accrued interest and penalties for our unrecognized tax benefits as a component of tax expenses. Related interest expense (benefit) totaled $13 million in 2022, $(21) million in 2021, and $(15) million in 2020. We accrued interest and penalties related to our unrecognized tax benefits of approximately $49 million at year-end 2022 and $45 million at year-end 2021. We file income tax returns, including returns for our subsidiaries, in various jurisdictions around the world. The U.S. Internal Revenue Service (“IRS”) has examined our federal income tax returns, and as of year-end 2022, we have settled all issues for tax years through 2016 and for tax years 2018 and 2019. Our 2017 and 2020 through 2022 tax year audits are currently ongoing. Various foreign, state, and local income tax returns are also under examination by the applicable taxing authorities. Deferred Income Taxes Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as from net operating loss and tax credit carry-forwards. We state those balances at the enacted tax rates we expect will be in effect when we pay or recover the taxes. Deferred income tax assets represent amounts available to reduce income taxes we will pay on taxable income in future years. We evaluate our ability to realize these future tax deductions and credits by assessing whether we expect to have sufficient future taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings, and available tax planning strategies to utilize these future deductions and credits. We establish a valuation allowance when we no longer consider it more likely than not that a deferred tax asset will be realized. The following table presents the tax effect of each type of temporary difference and carry-forward that gave rise to significant portions of our deferred tax assets and liabilities as of year-end 2022 and year-end 2021: ($ in millions) At Year-End 2022 At Year-End 2021 Deferred Tax Assets Employee benefits $ 243 $ 235 Net operating loss carry-forwards 1,096 771 Accrued expenses and other reserves 181 191 Receivables, net 12 11 Tax credits 55 53 Loyalty Program 168 181 Deferred income 66 98 Lease liabilities 304 336 Interest limitation 187 163 Other — 34 Deferred tax assets 2,312 2,073 Valuation allowance (1,359) (984) Deferred tax assets after valuation allowance 953 1,089 Deferred Tax Liabilities Equity method investments (32) (40) Property and equipment (58) (9) Intangibles (626) (666) Right-of-use assets (265) (290) Self-insurance (37) (25) Other (8) — Deferred tax liabilities (1,026) (1,030) Net deferred taxes $ (73) $ 59 Our valuation allowance is primarily attributable to non-U.S. net operating loss carry-forwards. During 2022, our net operating loss carry-forwards increased with an offsetting increase in our valuation allowance primarily due to net operating losses in an international subsidiary. At year-end 2022, we had approximately $39 million of tax credits that will expire through 2032 and $16 million of tax credits that do not expire. We recorded $12 million of net operating loss benefits in 2022 and $51 million in 2021. At year-end 2022, we had approximately $4,988 million of primarily state and foreign net operating losses, of which $3,081 million will expire through 2042. We made no provision for U.S. income taxes or additional non-U.S. taxes on certain undistributed earnings of non-U.S. subsidiaries. These earnings could become subject to additional taxes if the non-U.S. subsidiaries dividend or loan those earnings to an affiliate or if we sell our interests in the non-U.S. subsidiaries. We cannot practically estimate the amount of additional taxes that might be payable on the undistributed earnings. Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years: 2022 2021 2020 U.S. statutory tax rate 21.0 % 21.0 % 21.0 % U.S. state income taxes, net of U.S. federal tax benefit 2.8 2.7 3.8 Non-U.S. income (0.5) (0.5) 12.5 Change in valuation allowance 0.4 (0.7) (20.0) Change in uncertain tax positions 0.3 (12.0) 12.2 Permanent items (0.2) (0.5) 9.4 Tax on asset dispositions 0.0 (0.7) 0.0 Excess tax benefits related to equity awards (0.7) (2.8) 6.4 U.S. tax on foreign earnings 0.2 0.4 (3.0) Other, net 1.0 (0.1) 0.6 Effective rate 24.3 % 6.8 % 42.9 % The non-U.S. income tax benefit presented in the table above includes tax-exempt income in Hong Kong and Singapore, and a tax deduction in Switzerland, which collectively represented 2.5% in 2022, 3.2% in 2021, and 12.9% in 2020. We included the impact of these items in the non-U.S. income line above because we consider them to be equivalent to a reduction of the statutory tax rates in these jurisdictions. The non-U.S. income tax benefit also includes U.S. income tax expense on non-U.S. operations, which represents 0.6% in 2022, (0.5)% in 2021, and 0.8% in 2020. We included the impact of this tax in the non-U.S. income line above because we consider this tax to be an integral part of the foreign taxes. Other Information |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees We issue guarantees to certain lenders and hotel owners, chiefly to obtain long-term management and franchise contracts. The guarantees generally have a stated maximum funding amount and a term of three 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 year-end 2022 in the following table: ($ in millions) Guarantee Type Maximum Potential Recorded Liability for Debt service $ 73 $ 10 Operating profit 191 107 Other 16 4 $ 280 $ 121 Our liability at year-end 2022 for guarantees for which we are the primary obligor is reflected in our Balance Sheets as $32 million of “Accrued expenses and other” and $89 million of “Other noncurrent liabilities.” Our maximum potential guarantees listed in the preceding table include $60 million of operating profit guarantees that will not be in effect until the underlying properties open and we begin to operate the properties or certain other events occur. In conjunction with financing obtained for specific projects or properties owned by us or entities in which we have an investment, we may provide industry standard indemnifications to the lender for loss, liability, or damage occurring as a result of the actions of the entity or our own actions. 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 year-end 2022 and 2021. We concluded that the entity that owns the Sheraton Grand Chicago hotel is a variable interest entity. We did not consolidate the entity because we do not have the power to direct the activities that most significantly impact the entity’s economic performance. Our maximum exposure to loss related to the entity is equal to the difference between the purchase price and the fair value of the hotel at the time that the put option is exercised, plus the maximum funding amount of an operating profit guarantee that we provided for the hotel. Commitments At year-end 2022, we had various purchase commitments for goods and services in the normal course of business, primarily for programs and services for which we are reimbursed by third-party owners, totaling $514 million. We expect to purchase goods and services subject to these commitments as follows: $238 million in 2023, $168 million in 2024, $83 million in 2025, and $25 million thereafter. Letters of Credit At year-end 2022, we had $135 million of letters of credit outstanding (all outside the Credit Facility, as defined in Note 9), most of which were for our self-insurance programs. Surety bonds issued as of year-end 2022 totaled $162 million, most of which state governments requested in connection with our self-insurance programs. 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. The plaintiffs in the cases that remain pending, 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. The active U.S. cases are consolidated in the U.S. District Court for the District of Maryland (the “District Court”), pursuant to orders of the U.S. Judicial Panel on Multidistrict Litigation (the “MDL”). On May 3, 2022, the District Court granted in part and denied in part class certification of various U.S. groups of consumers. On July 14, 2022, the U.S. Court of Appeals for the Fourth Circuit granted our petition to appeal the District Court’s decision, which appeal remains pending. On September 8, 2022, the District Court held that the City of Chicago (which brought claims against us that are consolidated in the MDL proceeding) could not pursue injunctive claims but could pursue monetary claims. The Canadian cases have effectively been consolidated into a single case in the province of Ontario. We dispute the allegations in these lawsuits and are vigorously defending against such claims. In addition, various 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. Although some of these matters have been resolved or no longer appear to be active, some remain open. We are in discussions with the Attorney General offices from 49 states and the District of Columbia and the Federal Trade Commission. Based on the ongoing discussions, we believe it is probable that we will incur losses, and we recorded an accrual in 2022 for an estimated loss contingency; the amount of this accrual is not material to our Financial Statements. While we believe it is reasonably possible that we may incur losses in excess of the amounts recorded associated with the above described MDL proceedings and regulatory investigations related to the Data Security Incident, it is not possible to reasonably estimate the amount of such losses or range of loss that might result from adverse judgments, settlements, fines, penalties or other resolution of these proceedings and investigations based on: (1) in the case of the above described MDL proceedings, the current stage of these proceedings, 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, and the lack of resolution of significant factual and legal issues; and (2) in the case of the above described regulatory investigations, the lack of resolution with the Federal Trade Commission and the state Attorneys General. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five The following table details the composition of lease expense for 2022, 2021, and 2020: ($ in millions) 2022 2021 2020 Operating lease cost $ 165 $ 149 $ 157 Variable lease cost 90 51 60 We recorded impairment charges of $116 million in 2020 in the “Depreciation, amortization, and other” caption of our Income Statements to reduce the carrying amount of certain U.S. & Canada hotel leases right-of-use assets and property and equipment, including leasehold improvements. The impairment charges recorded in 2020 were due to the impact of COVID-19. We determined that we may not be able to fully recover the carrying amount of these U.S. & Canada hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates and demand trends. The following table presents our future minimum lease payments at year-end 2022: ($ in millions) Operating Leases Finance Leases 2023 $ 157 $ 14 2024 154 14 2025 148 14 2026 119 15 2027 85 15 Thereafter 844 107 Total minimum lease payments $ 1,507 $ 179 Less: Amount representing interest 367 40 Present value of minimum lease payments $ 1,140 $ 139 The following table presents the composition of our current and noncurrent lease liability at year-end 2022 and 2021: ($ in millions) December 31, 2022 December 31, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Current (1) $ 106 $ 8 $ 150 $ 7 Noncurrent (2) 1,034 131 1,098 139 $ 1,140 $ 139 $ 1,248 $ 146 (1) Operating leases are recorded in the “ Accrued expenses and other Current portion of long-term debt (2) Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “ Long-term debt The following table presents additional information about our lease obligations at year-end 2022 and 2021: 2022 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted Average Remaining Lease Term (in years) 13 11 14 12 Weighted Average Discount Rate 4.4 % 4.3 % 4.2 % 4.4 % The following table presents supplemental cash flow information for 2022 and 2021: ($ in millions) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 191 $ 181 Lease assets obtained in exchange for lease obligations: Operating leases 75 463 |
LEASES | LEASES We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five The following table details the composition of lease expense for 2022, 2021, and 2020: ($ in millions) 2022 2021 2020 Operating lease cost $ 165 $ 149 $ 157 Variable lease cost 90 51 60 We recorded impairment charges of $116 million in 2020 in the “Depreciation, amortization, and other” caption of our Income Statements to reduce the carrying amount of certain U.S. & Canada hotel leases right-of-use assets and property and equipment, including leasehold improvements. The impairment charges recorded in 2020 were due to the impact of COVID-19. We determined that we may not be able to fully recover the carrying amount of these U.S. & Canada hotel leases after evaluating the assets for recovery due to declines in market performance and future cash flow projections. We estimated the fair value using an income approach reflecting internally developed Level 3 discounted cash flows that included, among other things, our expectations of future cash flows based on historical experience and projected growth rates, usage estimates and demand trends. The following table presents our future minimum lease payments at year-end 2022: ($ in millions) Operating Leases Finance Leases 2023 $ 157 $ 14 2024 154 14 2025 148 14 2026 119 15 2027 85 15 Thereafter 844 107 Total minimum lease payments $ 1,507 $ 179 Less: Amount representing interest 367 40 Present value of minimum lease payments $ 1,140 $ 139 The following table presents the composition of our current and noncurrent lease liability at year-end 2022 and 2021: ($ in millions) December 31, 2022 December 31, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Current (1) $ 106 $ 8 $ 150 $ 7 Noncurrent (2) 1,034 131 1,098 139 $ 1,140 $ 139 $ 1,248 $ 146 (1) Operating leases are recorded in the “ Accrued expenses and other Current portion of long-term debt (2) Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “ Long-term debt The following table presents additional information about our lease obligations at year-end 2022 and 2021: 2022 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted Average Remaining Lease Term (in years) 13 11 14 12 Weighted Average Discount Rate 4.4 % 4.3 % 4.2 % 4.4 % The following table presents supplemental cash flow information for 2022 and 2021: ($ in millions) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 191 $ 181 Lease assets obtained in exchange for lease obligations: Operating leases 75 463 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 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 at year-end 2022 and 2021: ($ in millions) At Year-End 2022 At Year-End 2021 Senior Notes: Series L Notes, interest rate of 3.3%, face amount of $173, redeemed June 15, 2022 (effective interest rate of 3.4%) $ — $ 173 Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) 348 347 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%) 747 746 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%) 324 327 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) 289 290 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 446 445 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%) 531 566 Series DD Notes, interest rate of 2.1%, face amount of $224, matured October 3, 2022 (effective interest rate of 1.2%) — 226 Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) 596 595 Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) 988 987 Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) 987 986 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 Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) 984 — Commercial paper 871 — Credit Facility — 1,050 Finance lease obligations 139 146 Other 92 135 $ 10,064 $ 10,138 Less current portion (684) (805) $ 9,380 $ 9,333 All our long-term debt is recourse to us but unsecured. All the Senior Notes shown in the table above are our unsecured and unsubordinated obligations, which rank equally with our other Senior Notes and all other unsecured and unsubordinated indebtedness that we have issued or will issue from time to time, and are governed by the terms of an indenture, dated as of November 16, 1998, between us and The Bank of New York Mellon (formerly The Bank of New York), as trustee. We may redeem some or all of each series of the Senior Notes before maturity under the terms provided in the applicable form of Senior Note. In September 2022, we issued $1.0 billion aggregate principal amount of 5.000 percent Series JJ Notes due October 15, 2027 (the “Series JJ Notes”). We will pay interest on the Series JJ Notes in April and October of each year, commencing in April 2023. We received net proceeds of approximately $983 million from the offering of the Series JJ Notes, after deducting the underwriting discount and estimated expenses, which were made available for general corporate purposes, including working capital, capital expenditures, acquisitions, stock repurchases or repayment of outstanding indebtedness. In June 2022, we redeemed all $173 million aggregate principal amount of our outstanding Series L Notes due in September 2022. In December 2022, we amended and restated our $4.5 billion multicurrency revolving credit agreement (the “Credit Facility”). Available borrowings under the Credit Facility support our commercial paper program and general corporate needs. Borrowings under the Credit Facility generally bear interest at SOFR (the Secured Overnight Financing Rate) plus a spread based on our public debt rating. We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating. We classify outstanding borrowings under the Credit Facility and outstanding commercial paper borrowings as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis. The Credit Facility expires on December 14, 2027. The following table presents future principal payments, net of discounts, premiums, and debt issuance costs, for our debt at year-end 2022: Debt Principal Payments ($ in millions) Amount 2023 $ 684 2024 1,410 2025 1,310 2026 757 2027 995 Thereafter 4,908 Balance at year-end 2022 $ 10,064 We paid cash for interest, net of amounts capitalized, of |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL The following table details the composition of our intangible assets at year-end 2022 and 2021: ($ in millions) At Year-End 2022 At Year-End 2021 Definite-lived Intangible Assets Costs incurred to obtain contracts with customers $ 1,995 $ 1,875 Contracts acquired in business combinations and other 2,173 2,187 4,168 4,062 Accumulated amortization (1,172) (1,052) 2,996 3,010 Indefinite-lived Intangible Brand Assets 5,751 5,916 $ 8,747 $ 8,926 We capitalize direct costs that we incur to obtain management, franchise, and license agreements. We amortize these costs on a straight-line basis over the initial term of the agreements, ranging from 15 to 30 years. In 2020, we recorded impairment charges totaling $64 million in the “Contract investment amortization” caption of our Income Statements to reduce the carrying amount of certain capitalized costs incurred to obtain contracts with customers, primarily due to the impact of COVID-19, most of which we recorded in our U.S. & Canada business segment. For contracts acquired in business combinations and other intangible assets, we recorded amortization expense of $197 million in 2022, $165 million in 2021, and $97 million in 2020 (of which $83 million in 2022, $62 million in 2021, and none in 2020 was included in the “Reimbursed expenses” caption of our Income Statements). For these assets, we estimate that our aggregate amortization expense will be $165 million in 2023, $143 million in 2024, $125 million in 2025, $108 million in 2026, and $93 million in 2027. The following table details the carrying amount of our goodwill at year-end 2022 and 2021: ($ in millions) U.S. & Canada International Total Goodwill Balance at year-end 2021 $ 5,348 $ 3,725 $ 9,073 Foreign currency translation (25) (176) (201) Balance at year-end 2022 $ 5,323 $ 3,549 $ 8,872 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The following table presents the composition of our property and equipment balances at year-end 2022 and 2021: ($ in millions) At Year-End 2022 At Year-End 2021 Land $ 688 $ 686 Buildings and leasehold improvements 1,086 985 Furniture and equipment 649 545 Construction in progress 36 137 2,459 2,353 Accumulated depreciation (874) (850) $ 1,585 $ 1,503 We record property and equipment at cost, including interest and real estate taxes we incur during development and construction. We capitalize the cost of improvements that extend the useful life of property and equipment when we incur them. These capitalized costs may include structural costs, equipment, fixtures, floor, and wall coverings. We expense all repair and maintenance costs when we incur them. We compute depreciation using the straight-line method over the estimated useful lives of the assets (generally three |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 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 amounts 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: At Year-End 2022 At Year-End 2021 ($ in millions) Carrying Fair Value Carrying Fair Value Senior, mezzanine, and other loans $ 152 $ 142 $ 144 $ 131 Total noncurrent financial assets $ 152 $ 142 $ 144 $ 131 Senior Notes $ (8,322) $ (7,627) $ (8,009) $ (8,480) Commercial paper (871) (871) — — Credit Facility — — (1,050) (1,050) Other long-term debt (56) (49) (135) (140) Other noncurrent liabilities (394) (394) (414) (414) Total noncurrent financial liabilities $ (9,643) $ (8,941) $ (9,608) $ (10,084) We estimate the fair value of our senior, mezzanine, and other loans by discounting cash flows using risk-adjusted rates, both of which are Level 3 inputs. We determine the fair value of our Senior Notes using quoted market prices, which are directly observable Level 1 inputs. Even though our commercial paper borrowings generally have short-term maturities of 45 days or less, we classify outstanding commercial paper borrowings as long-term based on our ability and intent to refinance them on a long-term basis. The carrying amount of our commercial paper and Credit Facility borrowings approximate fair value due to their short maturity and because they bear interest at a market rate. We estimate the fair value of our other long-term debt, excluding leases, using quoted market prices, which are directly observable Level 1 inputs. Our other noncurrent liabilities consist of guarantees. As we note in the “Guarantees” caption of Note 2, we measure our liability for guarantees at fair value on a nonrecurring basis, which is when we issue or modify a guarantee using Level 3 internally developed inputs. At year-end 2022 and year-end 2021, we determined that the carrying amounts of our guarantee liabilities approximated their fair values based on Level 3 inputs. See the “Fair Value Measurements” caption of Note 2 for more information on the input levels we use in determining fair value. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table details the accumulated other comprehensive loss activity for 2022, 2021, and 2020: ($ in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2019 $ (368) $ 7 $ (361) Other comprehensive income before reclassifications (1) 229 7 236 Reclassification adjustments — (10) (10) Net other comprehensive income (loss) 229 (3) 226 Balance at year-end 2020 $ (139) $ 4 $ (135) Other comprehensive (loss) income before reclassifications (1) (212) 5 (207) Reclassification adjustments — — — Net other comprehensive (loss) income (212) 5 (207) Balance at year-end 2021 $ (351) $ 9 $ (342) Other comprehensive (loss) income before reclassifications (1) (390) 11 (379) Reclassification adjustments 1 (9) (8) Net other comprehensive (loss) income (389) 2 (387) Balance at year-end 2022 $ (740) $ 11 $ (729) (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 (losses) of $32 million for 2022, $40 million for 2021, and $(44) million for 2020. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS We discuss our operations in the following two operating segments, both of which meet the applicable accounting criteria for separate disclosure as a reportable business segment: (1) United States and Canada (“U.S. & Canada”) and (2) International. We evaluate the performance of our operating segments using “segment profits/loss” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, merger-related costs, or most above-property restructuring charges. We assign gains and losses, equity in earnings or losses, direct general, administrative, and other expenses, and other restructuring charges to each of our segments. “Unallocated corporate and other” includes a portion of our revenues (such as fees we receive from our credit card programs and vacation ownership licensing agreements), revenues and expenses for our Loyalty Program, general, administrative, and other expenses, restructuring, merger-related charges, and other expenses, equity in earnings or losses, and other gains or losses that we do not allocate to our segments. Our chief operating decision maker monitors assets for the consolidated Company but does not use assets by operating segment when assessing performance or making operating segment resource allocations. Segment Revenues The following table presents our revenues disaggregated by segment and major revenue stream for the last three fiscal years: 2022 2021 2020 ($ in millions) U.S. & Canada International Total U.S. & Canada International Total U.S. & Canada International Total Gross fee revenues $ 2,486 $ 917 $ 3,403 $ 1,580 $ 568 $ 2,148 $ 914 $ 338 $ 1,252 Contract investment amortization (60) (29) (89) (55) (20) (75) (108) (24) (132) Net fee revenues 2,426 888 3,314 1,525 548 2,073 806 314 1,120 Owned, leased, and other revenue 479 801 1,280 282 467 749 198 317 515 Cost reimbursement revenue 12,848 1,797 14,645 8,549 1,239 9,788 6,901 966 7,867 Total reportable segment revenue $ 15,753 $ 3,486 $ 19,239 $ 10,356 $ 2,254 $ 12,610 $ 7,905 $ 1,597 $ 9,502 Unallocated corporate and other 1,534 1,247 1,069 Total revenue $ 20,773 $ 13,857 $ 10,571 Revenues attributed to operations located outside the U.S. were $4,032 million in 2022, $2,615 million in 2021, and $1,910 million in 2020, including cost reimbursement revenue outside the U.S. of $2,231 million in 2022, $1,553 million in 2021, and $1,247 million in 2020. Segment Profits and Losses ($ in millions) 2022 2021 2020 U.S. & Canada (1) $ 2,446 $ 1,394 $ 198 International (2) 794 258 (222) Unallocated corporate and other 251 (80) (24) Interest expense, net of interest income (377) (392) (418) (Provision) benefit for income taxes (756) (81) 199 Net income (loss) $ 2,358 $ 1,099 $ (267) (1) Includes cost reimbursements, net of $134 million in 2022, $51 million in 2021, and $(80) million in 2020. (2) Includes cost reimbursements, net of $49 million in 2022, $14 million in 2021, and $(55) million in 2020. Segment profits (losses) attributed to operations located outside the U.S. were $898 million in 2022, $297 million in 2021, and $(198) million in 2020, including cost reimbursements, net (cost reimbursement revenue, net of reimbursed expenses) outside the U.S. of $67 million in 2022, $14 million in 2021, and $(62) million in 2020. Depreciation, Amortization, and Other ($ in millions) 2022 2021 2020 U.S. & Canada $ 81 $ 92 $ 209 International 85 106 113 Unallocated corporate and other 27 22 24 $ 193 $ 220 $ 346 Capital Expenditures ($ in millions) 2022 2021 2020 U.S. & Canada $ 24 $ 13 $ 12 International 17 12 17 Unallocated corporate and other 291 158 106 $ 332 $ 183 $ 135 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Equity Method Investments We have equity method investments in entities that own or lease properties for which we provide management services and receive fees. In addition, in some cases we provide loans, preferred equity, or guarantees to these entities. The following table presents Income Statement data resulting from transactions with these related parties. This table does not include our Financial Statement captions with insignificant related party activity. ($ in millions) 2022 2021 2020 Cost reimbursement revenue $ 104 $ 104 $ 107 Reimbursed expenses (104) (105) (110) Equity in earnings (losses) 18 (24) (141) The carrying amount of our equity method investments was $335 million at year-end 2022 and $387 million at year-end 2021. This value exceeded our share of the book value of the investees’ net assets by $238 million at year-end 2022 and $257 million at year-end 2021, primarily due to the value that we assigned to land, contracts, and buildings owned by the investees. In 2020, we recorded impairment charges of $77 million in the “Equity in earnings (losses)” caption of our Income Statements to reduce the carrying amount of certain investments, primarily due to the impact of COVID-19, most of which we recorded in our U.S. & Canada business segment. Other Related Parties We earned management fees of approximately $11 million in 2022, $6 million in 2021, and $3 million in 2020, plus reimbursement of certain expenses, from our operation of properties in which JWM Family Enterprises, L.P., which is beneficially owned and controlled by J.W. Marriott, Jr., Deborah Marriott Harrison, David S. Marriott, and other members of the Marriott family, indirectly holds varying percentages of ownership. We earned gross fee revenues of approximately $4 million in 2022 and $1 million in 2021, plus reimbursement of certain expenses, and no revenues in 2020 from managed and franchised properties in which other members of the Marriott family hold varying interests. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | In order to make this report easier to read, we also refer throughout to (1) our Consolidated Financial Statements as our “Financial Statements,” (2) our Consolidated Statements of Income (Loss) as our “Income Statements,” (3) our Consolidated Balance Sheets as our “Balance Sheets,” (4) our 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 Consolidated Financial Statements, unless otherwise stated. Preparation of financial statements that conform with U.S. generally accepted accounting principles (“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. 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 at fiscal year-end 2022 and fiscal year-end 2021 and the results of our operations and cash flows for fiscal years 2022, 2021, and 2020. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements. |
Revenue | Base Management and Incentive Management Fees : For our managed hotels, we have performance obligations to provide hotel management services and a license to our intellectual property for the use of our brand names. As compensation for such services, we are generally entitled to receive base fees, which are a percentage of the revenues of hotels, and incentive management fees, which are generally based on a measure of hotel profitability. Both the base and incentive management fees are variable consideration, as the transaction price is based on a percentage of revenue or profit, as defined in each contract. We recognize base management fees on a monthly basis over the term of the agreement as those amounts become payable. We recognize incentive management fees on a monthly basis over the term of the agreement based on each property’s financial results, as long as we do not expect a significant reversal due to projected future hotel performance or cash flows in future periods. Franchise Fee and Royalty Fee Revenue : For our franchised hotels, we have a performance obligation to provide franchisees and operators a license to our intellectual property for use of certain of our brand names. As compensation for such services, we are typically entitled to initial application fees and ongoing royalty fees. Our ongoing royalty fees represent variable consideration, as the transaction price is based on a percentage of certain revenues of the hotels, as defined in each contract. We recognize royalty fees on a monthly basis over the term of the agreement as those amounts become payable. Initial application and relicensing fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. Owned and Leased Hotel Revenue : At our owned and leased hotels, we have performance obligations to provide accommodations and other ancillary services to hotel guests. As compensation for such goods and services, we are typically entitled to a fixed nightly fee for an agreed upon period and additional fixed fees for any ancillary services purchased. These fees are generally payable at the time the hotel guest checks out of the hotel. We generally satisfy the performance obligations over time, and we recognize the revenue from room sales and from other ancillary guest services on a daily basis, as the rooms are occupied and we have rendered the services. Cost Reimbursements : Under our management and franchise agreements, we are entitled to be reimbursed for certain costs we incur on behalf of the managed, franchised, and licensed properties, with no added mark-up. These costs primarily consist of payroll and related expenses at managed properties where we are the employer of the employees at the properties and include certain operational and administrative costs as provided for in our contracts with the owners. We are entitled to reimbursement in the period we incur the related reimbursable costs, which we recognize within the “Cost reimbursement revenue” caption of our Income Statements. Under our management and franchise agreements, hotel owners and franchisees participate in certain centralized programs and services, such as marketing, sales, reservations, and insurance programs. We operate these programs and services for the benefit of our hotel owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. The amounts we charge for these programs and services are generally a combination of fixed fees and variable fees based on sales or other metrics and are payable on a monthly basis. We generally recognize revenue within the “Cost reimbursement revenue” caption of our Income Statements when the amounts may be billed to hotel owners, and we recognize expenses within the “Reimbursed expenses” caption as they are incurred. This pattern of recognition results in timing differences between the costs incurred for centralized programs and services and the related reimbursement from hotel owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. In addition, we present in the “ Reimbursed expenses Other Revenue : Includes Global Design fees, which we describe below, termination fees, and other property and brand revenues. We generally recognize termination fees when collection is probable and other revenue as services are rendered. Amounts received in advance are deferred as liabilities. We provide certain hotel design and construction review (“Global Design”) services to our managed and franchised hotel owners, generally during the period prior to a hotel’s opening or during the period a hotel is converting to a Marriott brand (the “pre-opening period”). As compensation for such services, we may be entitled to receive a one-time fixed fee that is payable during the pre-opening period of the hotel. As these services are not a distinct performance obligation, we recognize the fees on a straight-line basis over the initial term of the management or franchise agreement within the “Owned, leased, and other revenue” caption of our Income Statements. Practical Expedients and Exemptions : We do not disclose the amount of variable consideration that we expect to recognize in future periods in the following circumstances: (1) if we recognize the revenue based on the amount invoiced or services performed; (2) for sales-based or usage-based royalty promised in exchange for a license of intellectual property; or (3) if the consideration is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation, and the terms of the consideration relate specifically to our efforts to transfer, or to a specific outcome from transferring the service. We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these to the applicable governmental agencies on a periodic basis. We do not include these taxes in determining the transaction price. We have multi-year agreements for our co-branded credit cards associated with our Loyalty Program. Under these agreements, we have performance obligations to provide a license to the intellectual property associated with our brands and marketing lists (“Licensed IP”) to the financial institutions that issue the credit cards, to arrange for the redemption of Loyalty Program points as discussed in the preceding paragraph, and to arrange for the redemption of free night certificates and gift cards provided to cardholders. We receive fees from these agreements, including fixed amounts that are primarily payable at contract inception, and variable amounts that are paid to us monthly over the term of the agreements, generally based on: (1) the number of free night certificates issued or redeemed; (2) the number of Loyalty Program points purchased; (3) the volume of cardholder spend; and (4) the number of gift cards issued. We allocate those fees among the performance obligations, including the Licensed IP, our Loyalty Program points, free night certificates, and gift cards provided to cardholders based on their estimated standalone selling prices. The estimation of the standalone selling prices requires significant judgments based upon generally accepted valuation methodologies regarding the value of our Licensed IP, the amount of funding we will receive, and the number of Loyalty Program points, free night certificates, and gift cards cardholders will ultimately redeem. We base our estimates of these amounts on our historical experience and expectation of future cardholder behavior. We recognize the portion of the Licensed IP revenue that meets the sales-based royalty criteria as the credit cards are used and the remaining portion of the Licensed IP revenue on a straight-line basis over the contract term. In our Income Statements, we primarily recognize Licensed IP revenue in the “Franchise fees” caption, and we recognize a portion in the “Cost reimbursement revenue” caption. We recognize the revenue related to the Loyalty Program points as discussed in the preceding paragraph. We recognize the revenue related to the free night certificates and gift cards when the related service is provided. We recognize revenue net of the redemption cost, as our performance obligation is to facilitate the transaction between the Loyalty Program member and the managed or franchised property. Contract Balances : We generally receive payments from customers as we satisfy our performance obligations. We record a receivable when we have an unconditional right to receive payment and only the passage of time is required before payment is due. We record deferred revenue when we receive payment, or have the unconditional right to receive payment, in advance of the satisfaction of our performance obligations related to franchise application and relicensing fees, Global Design fees, credit card branding license fees, and our Loyalty Program. Current and noncurrent deferred revenue decreased by $196 million, to $1,331 million at December 31, 2022, from $1,527 million at December 31, 2021, primarily as a result of $330 million of revenue recognized in 2022 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 below. The decrease was partially offset by revenue deferred in 2022 related to our co-branded credit cards, gift cards, certain centralized programs and services fees, and franchise application and relicensing fees. Our current and noncurrent liability for guest loyalty program increased by $123 million, to $6,594 million at December 31, 2022, from $6,471 million at December 31, 2021, primarily reflecting an increase in points earned by members. This includes a $241 million reclassification from deferred revenue to the liability for guest loyalty program as a result of points that were earned during the period by members using our U.S.-issued co-branded credit cards, which were prepaid by the financial institutions in 2020. The increase was partially offset by $2,692 million of revenue recognized in 2022, 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. At each reporting period, we evaluate the estimates used in the recognition of Loyalty Program revenues, including estimates of the breakage of points that members will never redeem and the amount of funding we expect to receive over the life of the agreements with various third parties. In 2022, the updated estimates resulted in a net increase in revenue, and a corresponding reduction in the liability for guest loyalty program of approximately $106 million. |
Real Estate Sales | We recognize a gain or loss on real estate transactions when control of the asset transfers to the buyer, generally at the time the sale closes. In sales transactions where we retain a management contract, the terms and conditions of the management contract are generally comparable to the terms and conditions of the management contracts obtained directly with third-party owners in competitive processes. |
Retirement Savings Plan | We contribute to tax-qualified retirement plans for the benefit of U.S. employees who meet certain eligibility requirements and choose to participate in the plans. Participating employees specify the percentage or amount of salary they wish to contribute from their compensation, and the Company typically makes matching or supplemental contributions. |
Non-U.S. Operations | The U.S. dollar is the functional currency of our consolidated and unconsolidated entities operating in the U.S. The functional currency of our consolidated and unconsolidated entities operating outside of the U.S. is generally the principal currency of the economic environment in which the entity primarily generates and expends cash. We translate the financial statements of consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars, and we do the same, as needed, for unconsolidated entities whose functional currency is not the U.S. dollar. We translate assets and liabilities at the exchange rate in effect as of the financial statement date and translate income statement accounts using the weighted average exchange rate for the period. We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of stockholders’ equity. We report gains and losses from currency exchange rate changes for intercompany receivables and payables that are not of a long-term investment nature, as well as for third-party transactions, currently in operating costs and expenses. |
Stock-Based Compensation | Our stock-based compensation awards primarily consist of restricted stock units (“RSUs”). We measure compensation costs for our stock-based payment transactions at fair value based on the average of the high and low stock price on the grant date (discounted for the lack of marketability and dividends), and we recognize those costs in our Financial Statements over the vesting period during which the employee provides service in exchange for the award. |
Advertising Costs | We expense costs to produce advertising as they are incurred and to communicate advertising as the communication occurs and record such amounts in our “ Reimbursed expenses |
Income Taxes | We record the amounts of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events we have recognized in our Financial Statements or tax returns, using judgment in assessing future profitability and the likely future tax consequences of those events. We base our estimates of deferred tax assets and liabilities on current tax laws, rates and interpretations, and, in certain cases, business plans and other expectations about future outcomes. We develop our estimates of future profitability based on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. We account for U.S. tax on Global Intangible Low-Taxed Income in the period incurred. We generally recognize the effect of the tax law changes in the period of enactment. Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of our deferred tax liabilities or the valuations of our deferred tax assets over time. Our accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. |
Cash and Equivalents | We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents. |
Accounts Receivable | Our accounts receivable primarily consist of amounts due from hotel owners with whom we have management and franchise agreements and include reimbursements of costs we incurred on behalf of managed and franchised properties. We record an allowance for credit losses measured over the contractual life of the instrument based on an assessment of historical collection activity and current and forecasted future economic conditions by region. Our allowance for credit losses was $191 million at December 31, 2022 and $187 million at December 31, 2021. The increase during 2022 was primarily due to our provision for credit losses, partially offset by write-offs of amounts deemed uncollectible. Our provision for credit losses totaled $27 million in 2022, $22 million in 2021, and $136 million in 2020. |
Assets Held for Sale | We consider properties to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and we expect the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given our estimate of current market value. Upon designation of a property as an asset held for sale, we record the property’s value at the lower of its carrying amount or its estimated fair value, less estimated costs to sell, and we cease depreciation. |
Goodwill | We test goodwill for potential impairment at least annually in the fourth quarter, or more frequently if an event or other circumstance indicates that we may not be able to recover the carrying amount of the net assets of the reporting unit. In evaluating goodwill for impairment, we may assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Factors we consider when making this determination include, but are not limited to, assessing general economic conditions, hospitality industry trends, and overall financial performance of the reporting unit. If we bypass the qualitative assessment, or if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform a quantitative impairment test by comparing the fair value of a reporting unit with its carrying amount. We calculate the estimated fair value of a reporting unit using a combination of the income and market approaches. For the income approach, we use internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. For the market approach, we use internal analyses based primarily on market comparables. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and macro general economic condition projections, and our expectations. |
Intangibles and Long-Lived Assets | We assess indefinite-lived intangible assets for continued indefinite use and for potential impairment annually, or more frequently if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Like goodwill, we may first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying amount. If the carrying amount of the asset exceeds the fair value, we recognize an impairment loss in the amount of that excess. We test definite-lived intangibles and long-lived asset groups for recoverability when changes in circumstances indicate that we may not be able to recover the carrying amount; for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. We also test recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and we expect to complete the plan within a year. We evaluate recoverability of an asset group by comparing its carrying amount, including right-of-use assets, to the future net undiscounted cash flows that we expect the asset group will generate. If the comparison indicates that we will not be able to recover the carrying amount of an asset group, we recognize an impairment loss for the amount by which the carrying amount exceeds the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life. We calculate the estimated fair value of an intangible asset or asset group using the income approach or the market approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation. |
Investments | We hold equity interests in ventures established to develop or acquire and own hotel properties or that otherwise support our hospitality operations. We account for these investments as either an equity method investment, a financial asset, or a controlled subsidiary. We apply the equity method of accounting if we have significant influence over the entity, typically when we hold 20 percent or more of the voting common stock (or equivalent) of an investee but do not have a controlling financial interest. In certain circumstances, such as with investments in limited liability companies or limited partnerships, we apply the equity method of accounting when we own as little as three to five percent. We account for financial assets at fair value if it is readily determinable, or using the fair value alternative method, whereby investments are measured at cost less impairment, adjusted for observable price changes. We consolidate entities that we control. When we acquire an investment that qualifies for the equity method of accounting, we determine the acquisition date fair value of the identifiable assets and liabilities. If our carrying amount exceeds our proportional share in the equity of the investee, we amortize the difference on a straight-line basis over the underlying assets’ estimated useful lives when calculating equity method earnings attributable to us, excluding the difference attributable to land, which we do not amortize. We evaluate an investment for impairment when circumstances indicate that we may not be able to recover the carrying amount. When evaluating our ventures, we consider loan defaults, significant underperformance relative to historical or projected operating performance, or significant negative industry or economic trends. Additionally, a venture’s commitment to a plan to sell some or all of its assets could cause us to evaluate the recoverability of the venture’s individual long-lived assets and possibly the venture itself. We impair investments we account for using the equity method of accounting when we determine that there has been an “other-than-temporary” decline in the venture’s estimated fair value compared to its carrying amount. We perform qualitative assessments for investments we account for using the fair value alternative method and we record any associated impairment when the fair value is less than the carrying amount. Under the accounting guidance for the consolidation of variable interest entities, we analyze our variable interests, including equity investments, loans, and guarantees, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analysis to determine if we must consolidate a variable interest entity as its primary beneficiary. |
Fair Value Measurements | We have various financial instruments we must measure at fair value on a recurring basis, including certain marketable securities and derivatives. See Note 12 for further information. We also apply the provisions of fair value measurement to various nonrecurring measurements for our financial and nonfinancial assets and liabilities. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy: Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3 inputs include unobservable inputs that reflect our assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data. |
Derivative Instruments | We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if, at inception, we expect the derivative will be highly effective in offsetting the underlying hedged cash flows or fair value and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate a hedge as a cash flow hedge, fair value hedge, or a hedge of the net investment in non-U.S. operations based on the exposure we are hedging. For the effective portion of qualifying cash flow hedges, we record changes in fair value in accumulated other comprehensive income (“AOCI”). We release the derivative’s gain or loss from AOCI to match the timing of the underlying hedged items’ effect on earnings. The change in fair value of qualifying fair value hedges as well as changes in fair value of the underlying hedged items to the hedged risks are recorded concurrently in earnings. We review the effectiveness of our hedging instruments quarterly and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, we release gains and losses from AOCI based on the timing of the underlying cash flows or revenue recognized, unless the termination results from the failure of the intended transaction to occur in the expected time frame. Such untimely transactions require us to immediately recognize in earnings the gains and/or losses that we previously recorded in AOCI. Changes in interest rates, currency exchange rates, and equity securities expose us to market risk. We manage our exposure to these risks by monitoring available financing alternatives, as well as through development and application of credit granting policies. We also use derivative instruments as part of our overall strategy to manage our exposure to market risks. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes. |
Loan Loss Reserves | We may make senior, mezzanine, and other loans to owners of hotels that we operate or franchise, generally to facilitate the development or renovation of a hotel and sometimes to facilitate brand programs or initiatives. We expect the owners to repay the loans in accordance with the loan agreements, or earlier as the performance of the hotels and capital markets permit. We use metrics such as loan-to-value ratios and debt service coverage, and other information about collateral and from third-party rating agencies to assess the credit quality of the loan receivable, both upon entering into the loan agreement and on an ongoing basis as applicable. At inception and throughout the term of the loan agreement, we individually assess loans for impairment. We consider current and forecasted future economic conditions in addition to our historical experience. We use internally generated cash flow projections to determine the likelihood that the loans will be repaid under the terms of the loan agreements. We calculate the present value of expected future cash flows discounted at the loan’s original effective interest rate or the estimated fair value of the collateral. If the present value and the estimated collateral are less than the carrying value of the loan receivable, we establish a specific impairment reserve for the difference. |
Leases | We determine if an arrangement is a lease or contains a lease at the inception of the contract. We evaluate leases for classification as operating or financing upon lease commencement. Our leases generally contain fixed and variable components. The variable components of our leases are primarily based on operating performance of the leased property. Our lease agreements may also include non-lease components, such as common area maintenance, which we combine with the lease component to account for both as a single lease component. Lease liabilities, which represent our obligation to make lease payments arising from the lease, and corresponding right-of-use assets, which represent our right to use an underlying asset for the lease term, are recognized at the commencement date of the lease based on the present value of fixed future payments over the lease term. We calculate the present value of future payments using the discount rate implicit in the lease, if available, or our incremental borrowing rate. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term and lease expense relating to variable payments is expensed as incurred. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset. |
Guarantees | We measure and record our liability for the fair value of a guarantee on a nonrecurring basis, that is when we issue or modify a guarantee, using Level 3 internally developed inputs, as described above in this footnote under the caption “Fair Value Measurements.” We base our calculation of the estimated fair value of a guarantee on the income approach or the market approach, depending on the type of guarantee. For the income approach, we use internally developed discounted cash flow and Monte Carlo simulation models that include the following assumptions, among others: projections of revenues and expenses and related cash flows based on assumed growth rates and demand trends; historical volatility of projected performance; the guaranteed obligations; and applicable discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. For the market approach, we use internal analyses based primarily on market comparable data and our assumptions about market capitalization rates, credit spreads, growth rates, and inflation. The offsetting entry for the guarantee liability depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. In most cases, when we do not forecast any funding, we amortize the liability into income on a straight-line basis over the remaining term of the guarantee. On a quarterly basis, we evaluate all material estimated liabilities based on the operating results and the terms of the guarantee. If we conclude that it is probable that we will be required to fund a greater amount than previously estimated, we record a loss except to the extent that the applicable contracts provide that the advance can be recovered as a loan. |
Self-Insurance Programs | We self-insure for certain levels of liability, workers’ compensation, property insurance and employee medical coverage. We accrue estimated costs of these self-insurance programs at the present value of projected settlements for known and incurred but not reported claims. We use a discount rate of 4.25 percent, based upon market rates, to determine the present value of the projected settlements, which we consider to be reasonable given our history of settled claims, including payment patterns and the fixed nature of the individual settlements. We classify the current portion of our self-insurance reserve in the “Accrued expenses and other” caption and the noncurrent portion in the “Other noncurrent liabilities” caption of our Balance Sheets. |
Legal Contingencies | We are subject to various legal proceedings and claims, the outcomes of which are uncertain. We record an accrual for legal contingencies when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the loss. In making such determinations we evaluate, among other things, the probability of an unfavorable outcome and, when we believe it probable that a liability has been incurred, our ability to make a reasonable estimate of the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances. |
Business Combinations | We allocate the purchase price of an acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. We recognize as goodwill the amount by which the purchase price of an acquired entity exceeds the net of the fair values assigned to the assets acquired and liabilities assumed. In determining the fair values of assets acquired and liabilities assumed, we use various recognized valuation methods including the income and market approaches. Further, we make assumptions within certain valuation techniques, including discount rates, royalty rates, and the amount and timing of future cash flows. We record the net assets and results of operations of an acquired entity in our Financial Statements from the acquisition date. We initially perform these valuations based upon preliminary estimates and assumptions by management or independent valuation specialists under our supervision, where appropriate, and make revisions as estimates and assumptions are finalized. We expense acquisition-related costs as we incur them. |
Asset Acquisitions | Acquisitions that do not meet the definition of a business are accounted for as asset acquisitions. We allocate the cost of the acquisition, including direct and incremental transaction costs, to the individual assets acquired and liabilities assumed on a relative fair value basis. Goodwill is not recognized in an asset acquisition. |
Intangible Assets | We capitalize direct costs that we incur to obtain management, franchise, and license agreements. We amortize these costs on a straight-line basis over the initial term of the agreements, ranging from 15 to 30 years. |
Property and Equipment, Capitalization and Useful Lives | We record property and equipment at cost, including interest and real estate taxes we incur during development and construction. We capitalize the cost of improvements that extend the useful life of property and equipment when we incur them. These capitalized costs may include structural costs, equipment, fixtures, floor, and wall coverings. We expense all repair and maintenance costs when we incur them. We compute depreciation using the straight-line method over the estimated useful lives of the assets (generally three |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share | The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share, the latter of which uses the treasury stock method to calculate the dilutive effect of the Company’s potential common stock: (in millions, except per share amounts) 2022 2021 2020 Computation of Basic Earnings Per Share Net income (loss) $ 2,358 $ 1,099 $ (267) Shares for basic earnings per share 324.4 327.2 325.8 Basic earnings (loss) per share $ 7.27 $ 3.36 $ (0.82) Computation of Diluted Earnings Per Share Net income (loss) $ 2,358 $ 1,099 $ (267) Shares for basic earnings per share 324.4 327.2 325.8 Effect of dilutive securities Stock-based compensation (1) 1.4 2.1 — Shares for diluted earnings per share 325.8 329.3 325.8 Diluted earnings (loss) per share $ 7.24 $ 3.34 $ (0.82) (1) For the calculation of diluted loss per share for 2020, we excluded share-based compensation securities of 1.4 million because the effect was anti-dilutive. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Additional Information on RSUs | The following table provides additional information on RSUs, including PSUs, for the last three fiscal years: 2022 2021 2020 Stock-based compensation expense (in millions) $ 181 $ 171 $ 188 Weighted average grant-date fair value (per unit) $ 168 $ 141 $ 101 Aggregate intrinsic value of distributed RSUs (in millions) $ 253 $ 205 $ 234 |
Changes in Outstanding RSU Grants | The following table presents the changes in our outstanding RSUs, including PSUs, during 2022 and the associated weighted average grant-date fair values: Number of RSUs (in millions) Weighted Average Grant-Date Fair Value (per unit) Outstanding at year-end 2021 4.4 $ 109 Granted 1.1 168 Distributed (1.5) 114 Forfeited (0.2) 127 Outstanding at year-end 2022 3.8 $ 125 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of (Losses) Earnings Before Income Taxes | The components of our earnings (losses) before income taxes for the last three fiscal years consisted of: ($ in millions) 2022 2021 2020 U.S. $ 2,268 $ 890 $ (320) Non-U.S. 846 290 (146) $ 3,114 $ 1,180 $ (466) |
Provision (Benefit) for Income Taxes | Our (provision) benefit for income taxes for the last three fiscal years consisted of: ($ in millions) 2022 2021 2020 Current -U.S. Federal $ (364) $ 99 $ 9 -U.S. State (82) 24 (41) -Non-U.S. (155) (86) (78) (601) 37 (110) Deferred -U.S. Federal (129) (122) 180 -U.S. State (25) (37) 81 -Non-U.S. (1) 41 48 (155) (118) 309 $ (756) $ (81) $ 199 |
Unrecognized Tax Benefits Reconciliation | The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2020 to the end of 2022: ($ in millions) Amount Unrecognized tax benefit at beginning of 2020 $ 569 Change attributable to tax positions taken in prior years (66) Change attributable to tax positions taken during the current period 4 Decrease attributable to settlements with taxing authorities (43) Unrecognized tax benefit at year-end 2020 464 Change attributable to tax positions taken in prior years (134) Change attributable to tax positions taken during the current period — Decrease attributable to settlements with taxing authorities (48) Unrecognized tax benefit at year-end 2021 282 Change attributable to tax positions taken in prior years (15) Change attributable to tax positions taken during the current period 3 Decrease attributable to settlements with taxing authorities (15) Unrecognized tax benefit at year-end 2022 $ 255 |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the tax effect of each type of temporary difference and carry-forward that gave rise to significant portions of our deferred tax assets and liabilities as of year-end 2022 and year-end 2021: ($ in millions) At Year-End 2022 At Year-End 2021 Deferred Tax Assets Employee benefits $ 243 $ 235 Net operating loss carry-forwards 1,096 771 Accrued expenses and other reserves 181 191 Receivables, net 12 11 Tax credits 55 53 Loyalty Program 168 181 Deferred income 66 98 Lease liabilities 304 336 Interest limitation 187 163 Other — 34 Deferred tax assets 2,312 2,073 Valuation allowance (1,359) (984) Deferred tax assets after valuation allowance 953 1,089 Deferred Tax Liabilities Equity method investments (32) (40) Property and equipment (58) (9) Intangibles (626) (666) Right-of-use assets (265) (290) Self-insurance (37) (25) Other (8) — Deferred tax liabilities (1,026) (1,030) Net deferred taxes $ (73) $ 59 |
Reconciliation of the U.S. Statutory Tax Rate to Effective Income Tax Rate | The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years: 2022 2021 2020 U.S. statutory tax rate 21.0 % 21.0 % 21.0 % U.S. state income taxes, net of U.S. federal tax benefit 2.8 2.7 3.8 Non-U.S. income (0.5) (0.5) 12.5 Change in valuation allowance 0.4 (0.7) (20.0) Change in uncertain tax positions 0.3 (12.0) 12.2 Permanent items (0.2) (0.5) 9.4 Tax on asset dispositions 0.0 (0.7) 0.0 Excess tax benefits related to equity awards (0.7) (2.8) 6.4 U.S. tax on foreign earnings 0.2 0.4 (3.0) Other, net 1.0 (0.1) 0.6 Effective rate 24.3 % 6.8 % 42.9 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 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 year-end 2022 in the following table: ($ in millions) Guarantee Type Maximum Potential Recorded Liability for Debt service $ 73 $ 10 Operating profit 191 107 Other 16 4 $ 280 $ 121 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Composition of Lease Expense and Supplemental Cash Flows | The following table details the composition of lease expense for 2022, 2021, and 2020: ($ in millions) 2022 2021 2020 Operating lease cost $ 165 $ 149 $ 157 Variable lease cost 90 51 60 The following table presents additional information about our lease obligations at year-end 2022 and 2021: 2022 2021 Operating Leases Finance Leases Operating Leases Finance Leases Weighted Average Remaining Lease Term (in years) 13 11 14 12 Weighted Average Discount Rate 4.4 % 4.3 % 4.2 % 4.4 % The following table presents supplemental cash flow information for 2022 and 2021: ($ in millions) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 191 $ 181 Lease assets obtained in exchange for lease obligations: Operating leases 75 463 |
Maturities of Finance Lease Liabilities | The following table presents our future minimum lease payments at year-end 2022: ($ in millions) Operating Leases Finance Leases 2023 $ 157 $ 14 2024 154 14 2025 148 14 2026 119 15 2027 85 15 Thereafter 844 107 Total minimum lease payments $ 1,507 $ 179 Less: Amount representing interest 367 40 Present value of minimum lease payments $ 1,140 $ 139 |
Maturities of Operating Lease Liabilities | The following table presents our future minimum lease payments at year-end 2022: ($ in millions) Operating Leases Finance Leases 2023 $ 157 $ 14 2024 154 14 2025 148 14 2026 119 15 2027 85 15 Thereafter 844 107 Total minimum lease payments $ 1,507 $ 179 Less: Amount representing interest 367 40 Present value of minimum lease payments $ 1,140 $ 139 |
Assets And Liabilities, Lessee | The following table presents the composition of our current and noncurrent lease liability at year-end 2022 and 2021: ($ in millions) December 31, 2022 December 31, 2021 Operating Leases Finance Leases Operating Leases Finance Leases Current (1) $ 106 $ 8 $ 150 $ 7 Noncurrent (2) 1,034 131 1,098 139 $ 1,140 $ 139 $ 1,248 $ 146 (1) Operating leases are recorded in the “ Accrued expenses and other Current portion of long-term debt (2) Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “ Long-term debt |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 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 at year-end 2022 and 2021: ($ in millions) At Year-End 2022 At Year-End 2021 Senior Notes: Series L Notes, interest rate of 3.3%, face amount of $173, redeemed June 15, 2022 (effective interest rate of 3.4%) $ — $ 173 Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) 348 347 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%) 747 746 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%) 324 327 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) 289 290 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 446 445 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%) 531 566 Series DD Notes, interest rate of 2.1%, face amount of $224, matured October 3, 2022 (effective interest rate of 1.2%) — 226 Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) 596 595 Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) 988 987 Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) 987 986 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 Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) 984 — Commercial paper 871 — Credit Facility — 1,050 Finance lease obligations 139 146 Other 92 135 $ 10,064 $ 10,138 Less current portion (684) (805) $ 9,380 $ 9,333 |
Future Principal Payments for Debt | The following table presents future principal payments, net of discounts, premiums, and debt issuance costs, for our debt at year-end 2022: Debt Principal Payments ($ in millions) Amount 2023 $ 684 2024 1,410 2025 1,310 2026 757 2027 995 Thereafter 4,908 Balance at year-end 2022 $ 10,064 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Composition of Intangible Assets, Finite-Lived | The following table details the composition of our intangible assets at year-end 2022 and 2021: ($ in millions) At Year-End 2022 At Year-End 2021 Definite-lived Intangible Assets Costs incurred to obtain contracts with customers $ 1,995 $ 1,875 Contracts acquired in business combinations and other 2,173 2,187 4,168 4,062 Accumulated amortization (1,172) (1,052) 2,996 3,010 Indefinite-lived Intangible Brand Assets 5,751 5,916 $ 8,747 $ 8,926 |
Composition of Intangible Assets, Indefinite-Lived | The following table details the composition of our intangible assets at year-end 2022 and 2021: ($ in millions) At Year-End 2022 At Year-End 2021 Definite-lived Intangible Assets Costs incurred to obtain contracts with customers $ 1,995 $ 1,875 Contracts acquired in business combinations and other 2,173 2,187 4,168 4,062 Accumulated amortization (1,172) (1,052) 2,996 3,010 Indefinite-lived Intangible Brand Assets 5,751 5,916 $ 8,747 $ 8,926 |
Carrying Amount of Goodwill | The following table details the carrying amount of our goodwill at year-end 2022 and 2021: ($ in millions) U.S. & Canada International Total Goodwill Balance at year-end 2021 $ 5,348 $ 3,725 $ 9,073 Foreign currency translation (25) (176) (201) Balance at year-end 2022 $ 5,323 $ 3,549 $ 8,872 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Composition of Property and Equipment Balances | The following table presents the composition of our property and equipment balances at year-end 2022 and 2021: ($ in millions) At Year-End 2022 At Year-End 2021 Land $ 688 $ 686 Buildings and leasehold improvements 1,086 985 Furniture and equipment 649 545 Construction in progress 36 137 2,459 2,353 Accumulated depreciation (874) (850) $ 1,585 $ 1,503 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities | We present the carrying amounts 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: At Year-End 2022 At Year-End 2021 ($ in millions) Carrying Fair Value Carrying Fair Value Senior, mezzanine, and other loans $ 152 $ 142 $ 144 $ 131 Total noncurrent financial assets $ 152 $ 142 $ 144 $ 131 Senior Notes $ (8,322) $ (7,627) $ (8,009) $ (8,480) Commercial paper (871) (871) — — Credit Facility — — (1,050) (1,050) Other long-term debt (56) (49) (135) (140) Other noncurrent liabilities (394) (394) (414) (414) Total noncurrent financial liabilities $ (9,643) $ (8,941) $ (9,608) $ (10,084) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income Activity | The following table details the accumulated other comprehensive loss activity for 2022, 2021, and 2020: ($ in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2019 $ (368) $ 7 $ (361) Other comprehensive income before reclassifications (1) 229 7 236 Reclassification adjustments — (10) (10) Net other comprehensive income (loss) 229 (3) 226 Balance at year-end 2020 $ (139) $ 4 $ (135) Other comprehensive (loss) income before reclassifications (1) (212) 5 (207) Reclassification adjustments — — — Net other comprehensive (loss) income (212) 5 (207) Balance at year-end 2021 $ (351) $ 9 $ (342) Other comprehensive (loss) income before reclassifications (1) (390) 11 (379) Reclassification adjustments 1 (9) (8) Net other comprehensive (loss) income (389) 2 (387) Balance at year-end 2022 $ (740) $ 11 $ (729) (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 (losses) of $32 million for 2022, $40 million for 2021, and $(44) million for 2020. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Revenues | Segment Revenues The following table presents our revenues disaggregated by segment and major revenue stream for the last three fiscal years: 2022 2021 2020 ($ in millions) U.S. & Canada International Total U.S. & Canada International Total U.S. & Canada International Total Gross fee revenues $ 2,486 $ 917 $ 3,403 $ 1,580 $ 568 $ 2,148 $ 914 $ 338 $ 1,252 Contract investment amortization (60) (29) (89) (55) (20) (75) (108) (24) (132) Net fee revenues 2,426 888 3,314 1,525 548 2,073 806 314 1,120 Owned, leased, and other revenue 479 801 1,280 282 467 749 198 317 515 Cost reimbursement revenue 12,848 1,797 14,645 8,549 1,239 9,788 6,901 966 7,867 Total reportable segment revenue $ 15,753 $ 3,486 $ 19,239 $ 10,356 $ 2,254 $ 12,610 $ 7,905 $ 1,597 $ 9,502 Unallocated corporate and other 1,534 1,247 1,069 Total revenue $ 20,773 $ 13,857 $ 10,571 |
Segment Profits | Segment Profits and Losses ($ in millions) 2022 2021 2020 U.S. & Canada (1) $ 2,446 $ 1,394 $ 198 International (2) 794 258 (222) Unallocated corporate and other 251 (80) (24) Interest expense, net of interest income (377) (392) (418) (Provision) benefit for income taxes (756) (81) 199 Net income (loss) $ 2,358 $ 1,099 $ (267) (1) Includes cost reimbursements, net of $134 million in 2022, $51 million in 2021, and $(80) million in 2020. (2) Includes cost reimbursements, net of $49 million in 2022, $14 million in 2021, and $(55) million in 2020. |
Depreciation and Amortization | Depreciation, Amortization, and Other ($ in millions) 2022 2021 2020 U.S. & Canada $ 81 $ 92 $ 209 International 85 106 113 Unallocated corporate and other 27 22 24 $ 193 $ 220 $ 346 |
Capital Expenditures | Capital Expenditures ($ in millions) 2022 2021 2020 U.S. & Canada $ 24 $ 13 $ 12 International 17 12 17 Unallocated corporate and other 291 158 106 $ 332 $ 183 $ 135 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Financial Data Resulting from Transactions with Related Parties, Income Statement Data | The following table presents Income Statement data resulting from transactions with these related parties. This table does not include our Financial Statement captions with insignificant related party activity. ($ in millions) 2022 2021 2020 Cost reimbursement revenue $ 104 $ 104 $ 107 Reimbursed expenses (104) (105) (110) Equity in earnings (losses) 18 (24) (141) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2017 USD ($) | ||
Significant Accounting Policies [Line Items] | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of revenues | ||||
Compensation costs from retirement savings plan | $ 137,000,000 | $ 80,000,000 | $ 75,000,000 | ||
Advertising costs | 635,000,000 | 470,000,000 | 276,000,000 | ||
Allowance for credit losses | 191,000,000 | 187,000,000 | |||
Change in allowance for credit losses | 27,000,000 | 22,000,000 | 136,000,000 | ||
Goodwill impairment charge | 0 | 0 | 0 | ||
Self-insurance reserve, current | 130,000,000 | 124,000,000 | |||
Self-insurance reserve, noncurrent | $ 287,000,000 | 290,000,000 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Avendra LLC | |||||
Significant Accounting Policies [Line Items] | |||||
Gain (loss) on disposal | $ 664,000,000 | ||||
Gain (loss) on disposal, net of tax | $ 425,000,000 | ||||
Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | |||||
Significant Accounting Policies [Line Items] | |||||
Self insurance review, measurement input | 0.0425 | ||||
Deferred revenue | |||||
Significant Accounting Policies [Line Items] | |||||
Change in customer contract liability | $ (196,000,000) | ||||
Customer contract liability | 1,331,000,000 | 1,527,000,000 | |||
Revenue recognized from customer contract liability | 330,000,000 | ||||
Guest loyalty program | |||||
Significant Accounting Policies [Line Items] | |||||
Change in customer contract liability | 123,000,000 | ||||
Customer contract liability | 6,594,000,000 | 6,471,000,000 | |||
Current deferred revenue | 3,314,000,000 | 2,522,000,000 | |||
Revenue recognized from customer contract liability | 2,692,000,000 | ||||
Reclassification from deferred revenue | 241,000,000 | ||||
Change in customer contract liability from change in estimates | 106,000,000 | ||||
Reimbursements | |||||
Significant Accounting Policies [Line Items] | |||||
Cost of revenues | [1] | 15,141,000,000 | 10,322,000,000 | 8,435,000,000 | |
Reimbursements | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Avendra LLC | |||||
Significant Accounting Policies [Line Items] | |||||
Cost of revenues | 69,000,000 | 56,000,000 | 62,000,000 | ||
Cost of revenues, net of tax | 52,000,000 | 42,000,000 | $ 46,000,000 | ||
Costs Incurred to Fulfill Contracts | |||||
Significant Accounting Policies [Line Items] | |||||
Capitalized costs | $ 379,000,000 | $ 368,000,000 | |||
[1]See Note 15 for disclosure of related party amounts. |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - City Express Brand Portfolio $ in Millions | 3 Months Ended | |
Dec. 31, 2022 USD ($) | Oct. 19, 2022 room hotel | |
Asset Acquisition [Line Items] | ||
Consideration transferred | $ | $ 100 | |
Number of hotels | hotel | 152 | |
Number of rooms | room | 17,356 |
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 (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Computation of Basic Earnings Per Share | |||
Net income (loss) | $ 2,358 | $ 1,099 | $ (267) |
Shares for basic earnings per share (in shares) | 324.4 | 327.2 | 325.8 |
Basic earnings (loss) per share (in USD per share) | $ 7.27 | $ 3.36 | $ (0.82) |
Computation of Diluted Earnings Per Share | |||
Net income (loss) | $ 2,358 | $ 1,099 | $ (267) |
Shares for basic earnings per share (in shares) | 324.4 | 327.2 | 325.8 |
Effect of dilutive securities | |||
Stock-based compensation (in shares) | 1.4 | 2.1 | 0 |
Shares for diluted earnings per share (in shares) | 325.8 | 329.3 | 325.8 |
Diluted earnings (loss) per share (in USD per share) | $ 7.24 | $ 3.34 | $ (0.82) |
Antidilutive shares (in shares) | 1.4 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved under the stock plan (in shares) | 24 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Period of service after grant date | 1 year | |
Deferred compensation costs | $ 179 | $ 189 |
Weighted average remaining term for grants outstanding | 2 years |
STOCK-BASED COMPENSATION - Ad_2
STOCK-BASED COMPENSATION - Additional Information on RSUs (Details) - RSUs - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Restricted Stock Activity [Line Items] | |||
Stock-based compensation expense (in millions) | $ 181 | $ 171 | $ 188 |
Weighted average grant-date fair value (in USD per share) | $ 168 | $ 141 | $ 101 |
Aggregate intrinsic value of distributed RSUs (in millions) | $ 253 | $ 205 | $ 234 |
STOCK-BASED COMPENSATION - Chan
STOCK-BASED COMPENSATION - Changes in Outstanding RSU Grants (Details) - RSUs - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of RSUs (in millions) | |||
Outstanding beginning balance (in shares) | 4.4 | ||
Granted (in shares) | 1.1 | ||
Distributed (in shares) | (1.5) | ||
Forfeited (in shares) | (0.2) | ||
Outstanding ending balance (in shares) | 3.8 | 4.4 | |
Weighted Average Grant-Date Fair Value (per unit) | |||
Outstanding beginning balance (in USD per share) | $ 109 | ||
Granted (in USD per share) | 168 | $ 141 | $ 101 |
Distributed (in USD per share) | 114 | ||
Forfeited (in USD per share) | 127 | ||
Outstanding ending balance (in USD per share) | $ 125 | $ 109 |
INCOME TAXES - Components of Ea
INCOME TAXES - Components of Earnings Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 2,268 | $ 890 | $ (320) |
Non-U.S. | 846 | 290 | (146) |
INCOME (LOSS) BEFORE INCOME TAXES | $ 3,114 | $ 1,180 | $ (466) |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
-U.S. Federal | $ (364) | $ 99 | $ 9 |
-U.S. State | (82) | 24 | (41) |
-Non-U.S. | (155) | (86) | (78) |
Current income tax expense | (601) | 37 | (110) |
Deferred | |||
-U.S. Federal | (129) | (122) | 180 |
-U.S. State | (25) | (37) | 81 |
-Non-U.S. | (1) | 41 | 48 |
Deferred income tax expense | (155) | (118) | 309 |
Provision for income taxes | $ (756) | $ (81) | $ 199 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit at beginning of year | $ 282 | $ 464 | $ 569 |
Change attributable to tax positions taken in prior years | (15) | (134) | (66) |
Change attributable to tax positions taken during the current period | 3 | 0 | 4 |
Decrease attributable to settlements with taxing authorities | (15) | (48) | (43) |
Unrecognized tax benefit at end of year | $ 255 | $ 282 | $ 464 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ 241 | $ 266 | $ 410 |
Interest and penalties related to unrecognized tax benefits | 13 | (21) | $ (15) |
Interest and penalties accrued | 49 | 45 | |
Tax credits which do expire | 39 | ||
Tax credits which do not expire | 16 | ||
Net operating loss benefits | 12 | $ 51 | |
Net operating losses | 4,988 | ||
Net operating losses subject to expiration | $ 3,081 | ||
Income tax benefit from non-U.S. income | (0.50%) | (0.50%) | 12.50% |
Pre-tax income | $ 846 | $ 290 | $ (146) |
Income tax expense (benefit) | 24.30% | 6.80% | 42.90% |
Cash paid for income taxes | $ 476 | $ 362 | $ 279 |
Hong Kong, Singapore and Switzerland | |||
Income Tax Contingency [Line Items] | |||
Income tax benefit from non-U.S. income | 2.50% | 3.20% | 12.90% |
International | |||
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | 0.80% | ||
International | United States | |||
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | 0.60% | (0.50%) |
INCOME TAXES - Types of Tempora
INCOME TAXES - Types of Temporary Differences and Carry-Forwards that Significantly Effect Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets | ||
Employee benefits | $ 243 | $ 235 |
Net operating loss carry-forwards | 1,096 | 771 |
Accrued expenses and other reserves | 181 | 191 |
Receivables, net | 12 | 11 |
Tax credits | 55 | 53 |
Loyalty Program | 168 | 181 |
Deferred income | 66 | 98 |
Lease liabilities | 304 | 336 |
Interest limitation | 187 | 163 |
Other | 0 | 34 |
Deferred tax assets | 2,312 | 2,073 |
Valuation allowance | (1,359) | (984) |
Deferred tax assets after valuation allowance | 953 | 1,089 |
Deferred Tax Liabilities | ||
Equity method investments | (32) | (40) |
Property and equipment | (58) | (9) |
Intangibles | (626) | (666) |
Right-of-use assets | (265) | (290) |
Self-insurance | (37) | (25) |
Other | (8) | 0 |
Deferred tax liabilities | (1,026) | (1,030) |
Net deferred taxes | $ (73) | |
Net deferred taxes | $ 59 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the U.S. Statutory Tax Rate to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory tax rate | 21% | 21% | 21% |
U.S. state income taxes, net of U.S. federal tax benefit | 2.80% | 2.70% | 3.80% |
Non-U.S. income | (0.50%) | (0.50%) | 12.50% |
Change in valuation allowance | 0.40% | (0.70%) | (20.00%) |
Change in uncertain tax positions | 0.30% | (12.00%) | 12.20% |
Permanent items | (0.20%) | (0.50%) | 9.40% |
Tax on asset dispositions | 0% | (0.70%) | 0% |
Excess tax benefits related to equity awards | (0.70%) | (2.80%) | 6.40% |
U.S. tax on foreign earnings | 0.20% | 0.40% | (3.00%) |
Other, net | 1% | (0.10%) | 0.60% |
Effective rate | 24.30% | 6.80% | 42.90% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Maximum Potential Amount of Future Fundings | $ 280 | ||
Recorded Liability for Guarantees | 121 | ||
Debt service | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Maximum Potential Amount of Future Fundings | 73 | ||
Recorded Liability for Guarantees | 10 | ||
Operating profit | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Maximum Potential Amount of Future Fundings | 191 | ||
Recorded Liability for Guarantees | 107 | ||
Other | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Maximum Potential Amount of Future Fundings | 16 | ||
Recorded Liability for Guarantees | 4 | ||
Sheraton Grand Chicago Hotel | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Recorded Liability for Guarantees | 300 | $ 300 | |
Sheraton Grand Chicago Hotel | Land and Hotel | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Maximum Potential Amount of Future Fundings | $ 300 | ||
Sheraton Grand Chicago Hotel | Land | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Maximum Potential Amount of Future Fundings | 200 | ||
Not Yet In Effect Condition | Operating profit | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Maximum Potential Amount of Future Fundings | 60 | ||
Accrued Expenses and Other | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Recorded Liability for Guarantees | 32 | ||
Other noncurrent liabilities | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Recorded Liability for Guarantees | $ 89 | ||
Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee obligations, term | 3 years | ||
Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Guarantee obligations, term | 10 years |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Commitments (Details) $ in Millions | Dec. 31, 2022 USD ($) lawsuit |
Commitments and Contingencies Disclosure [Line Items] | |
Purchase obligation | $ 514 |
Purchase obligation, expected to fund commitments in 2023 | 238 |
Purchase obligation, expected to fund commitments in 2024 | 168 |
Purchase obligation, expected to fund commitments in 2025 | 83 |
Purchase obligation, expected to fund commitments thereafter | 25 |
Letters of credit outstanding | 135 |
Surety bonds issued | $ 162 |
Class Action Lawsuits Related to Data Security Incident | |
Commitments and Contingencies Disclosure [Line Items] | |
Number of lawsuits filed | lawsuit | 100 |
LEASES - Additional Information
LEASES - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 renewal_option | Dec. 31, 2020 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Lease term | 20 years | |
Number of renewals (or more than) | renewal_option | 1 | |
U.S. and Canada Leased Hotels | ||
Lessee, Lease, Description [Line Items] | ||
Impairment loss | $ | $ 116 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 5 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 10 years |
LEASES - Composition of Lease E
LEASES - Composition of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 165 | $ 149 | $ 157 |
Variable lease cost | $ 90 | $ 51 | $ 60 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 157 | |
2024 | 154 | |
2025 | 148 | |
2026 | 119 | |
2027 | 85 | |
Thereafter | 844 | |
Total minimum lease payments | 1,507 | |
Less: Amount representing interest | 367 | |
Present value of minimum lease payments | 1,140 | $ 1,248 |
Finance Leases | ||
2023 | 14 | |
2024 | 14 | |
2025 | 14 | |
2026 | 15 | |
2027 | 15 | |
Thereafter | 107 | |
Total minimum lease payments | 179 | |
Less: Amount representing interest | 40 | |
Finance lease obligations | $ 139 | $ 146 |
LEASES - Current and Noncurrent
LEASES - Current and Noncurrent Lease Liability (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Current | $ 106 | $ 150 |
Noncurrent | 1,034 | 1,098 |
Present value of minimum lease payments | 1,140 | 1,248 |
Finance Lease Liability [Abstract] | ||
Current | 8 | 7 |
Noncurrent | 131 | 139 |
Present value of minimum lease payments | $ 139 | $ 146 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other | Accrued expenses and other |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt, noncurrent | Long-term debt, noncurrent |
LEASES - Lease Terms and Discou
LEASES - Lease Terms and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted Average Remaining Lease Term (in years) | ||
Operating Leases | 13 years | 14 years |
Finance Leases | 11 years | 12 years |
Weighted Average Discount Rate | ||
Operating Leases | 4.40% | 4.20% |
Finance Leases | 4.30% | 4.40% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flows Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows for operating leases | $ 191 | $ 181 |
Lease assets obtained in exchange for lease obligations: | ||
Operating leases | $ 75 | $ 463 |
LONG-TERM DEBT - Detail on Long
LONG-TERM DEBT - Detail on Long-term Debt Balances (Details) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Commercial paper | $ 871,000,000 | $ 0 | |
Credit Facility | 0 | 1,050,000,000 | |
Finance lease obligations | 139,000,000 | 146,000,000 | |
Other | 92,000,000 | 135,000,000 | |
Long-term debt | 10,064,000,000 | 10,138,000,000 | |
Less current portion | (684,000,000) | (805,000,000) | |
Long-term debt, noncurrent | 9,380,000,000 | 9,333,000,000 | |
Series L Notes, interest rate of 3.3%, face amount of $173, redeemed June 15, 2022 (effective interest rate of 3.4%) | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 0 | 173,000,000 | |
Series L Notes, interest rate of 3.3%, face amount of $173, redeemed June 15, 2022 (effective interest rate of 3.4%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.30% | ||
Senior notes, face amount | $ 173,000,000 | ||
Senior notes, effective interest rate | 3.40% | ||
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 | $ 348,000,000 | 347,000,000 | |
Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.80% | ||
Senior notes, face amount | $ 350,000,000 | ||
Senior notes, effective interest rate | 4% | ||
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 Q Notes, interest rate of 2.3%, face amount of $399, matured January 15, 2022 (effective interest rate of 2.5%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 2.30% | ||
Senior notes, face amount | $ 399,000,000 | ||
Senior notes, effective interest rate | 2.50% | ||
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 | $ 747,000,000 | 746,000,000 | |
Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.10% | ||
Senior notes, face amount | $ 750,000,000 | ||
Senior notes, effective interest rate | 3.30% | ||
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 U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.10% | ||
Senior notes, face amount | $ 291,000,000 | ||
Senior notes, effective interest rate | 3.10% | ||
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 | $ 324,000,000 | 327,000,000 | |
Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.80% | ||
Senior notes, face amount | $ 318,000,000 | ||
Senior notes, effective interest rate | 2.80% | ||
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 | $ 289,000,000 | 290,000,000 | |
Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 4.50% | ||
Senior notes, face amount | $ 278,000,000 | ||
Senior notes, effective interest rate | 4.10% | ||
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 | $ 446,000,000 | 445,000,000 | |
Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 4% | ||
Senior notes, face amount | $ 450,000,000 | ||
Senior notes, effective interest rate | 4.20% | ||
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 Z Notes, interest rate of 4.2%, face amount of $350, maturing December 1, 2023 (effective interest rate of 4.4%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 4.20% | ||
Senior notes, face amount | $ 350,000,000 | ||
Senior notes, effective interest rate | 4.40% | ||
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 AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 4.70% | ||
Senior notes, face amount | $ 300,000,000 | ||
Senior notes, effective interest rate | 4.80% | ||
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 | $ 531,000,000 | 566,000,000 | |
Series CC Notes, interest rate of 3.6%, face amount of $550, maturing April 15, 2024 (effective interest rate of 3.9%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.60% | ||
Senior notes, face amount | $ 550,000,000 | ||
Senior notes, effective interest rate | 3.90% | ||
Series DD Notes, interest rate of 2.1%, face amount of $224, matured October 3, 2022 (effective interest rate of 1.2%) | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 0 | 226,000,000 | |
Series DD Notes, interest rate of 2.1%, face amount of $224, matured October 3, 2022 (effective interest rate of 1.2%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 2.10% | ||
Senior notes, face amount | $ 224,000,000 | ||
Senior notes, effective interest rate | 1.20% | ||
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 | $ 596,000,000 | 595,000,000 | |
Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 5.80% | ||
Senior notes, face amount | $ 600,000,000 | ||
Senior notes, effective interest rate | 6% | ||
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 | $ 988,000,000 | 987,000,000 | |
Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 4.60% | ||
Senior notes, face amount | $ 1,000,000,000 | ||
Senior notes, effective interest rate | 4.80% | ||
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 | $ 987,000,000 | 986,000,000 | |
Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.50% | ||
Senior notes, face amount | $ 1,000,000,000 | ||
Senior notes, effective interest rate | 3.70% | ||
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 HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 2.90% | ||
Senior notes, face amount | $ 1,100,000,000 | ||
Senior notes, effective interest rate | 3% | ||
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 | |
Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 2.80% | ||
Senior notes, face amount | $ 700,000,000 | ||
Senior notes, effective interest rate | 2.80% | ||
Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 984,000,000 | $ 0 | |
Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 5% | 5% | |
Senior notes, face amount | $ 1,000,000,000 | $ 1,000,000,000 | |
Senior notes, effective interest rate | 5.40% |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Maximum aggregate borrowings under credit facility (up to) | $ 4,500,000,000 | ||||
Cash paid for interest, net of amounts capitalized | 345,000,000 | $ 391,000,000 | $ 377,000,000 | ||
Senior Notes | Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 1,000,000,000 | $ 1,000,000,000 | |||
Interest rate | 5% | 5% | |||
Net proceeds | $ 983,000,000 | ||||
Senior Notes | Series L Notes, interest rate of 3.3%, face amount of $173, redeemed June 15, 2022 (effective interest rate of 3.4%) | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 173,000,000 | ||||
Interest rate | 3.30% | ||||
Debt retired | $ 173,000,000 |
LONG-TERM DEBT - Future Princip
LONG-TERM DEBT - Future Principal Payments for Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 684 | |
2024 | 1,410 | |
2025 | 1,310 | |
2026 | 757 | |
2027 | 995 | |
Thereafter | 4,908 | |
Long-term debt | $ 10,064 | $ 10,138 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Composition of Acquired Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived Intangible Assets, gross | $ 4,168 | $ 4,062 |
Accumulated amortization | (1,172) | (1,052) |
Definite-lived Intangible Assets, net | 2,996 | 3,010 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets | 8,747 | 8,926 |
Indefinite-lived Intangible Brand Assets | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Brand Assets | 5,751 | 5,916 |
Costs incurred to obtain contracts with customers | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived Intangible Assets, gross | 1,995 | 1,875 |
Contracts acquired in business combinations and other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived Intangible Assets, gross | $ 2,173 | $ 2,187 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible assets | $ 64,000,000 | ||
Expected aggregate future amortization expense of intangible assets for 2023 | $ 165,000,000 | ||
Expected aggregate future amortization expense of intangible assets for 2024 | 143,000,000 | ||
Expected aggregate future amortization expense of intangible assets for 2025 | 125,000,000 | ||
Expected aggregate future amortization expense of intangible assets for 2026 | 108,000,000 | ||
Expected aggregate future amortization expense of intangible assets for 2027 | $ 93,000,000 | ||
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Range of amortization life of intangible assets | 15 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Range of amortization life of intangible assets | 30 years | ||
Contracts acquired in business combinations and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 197,000,000 | $ 165,000,000 | 97,000,000 |
Contracts acquired in business combinations and other | Reimbursed Expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 83,000,000 | $ 62,000,000 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Carrying Amount of Goodwill (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 9,073 |
Foreign currency translation | (201) |
Ending balance | 8,872 |
U.S. & Canada | |
Goodwill [Roll Forward] | |
Beginning balance | 5,348 |
Foreign currency translation | (25) |
Ending balance | 5,323 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 3,725 |
Foreign currency translation | (176) |
Ending balance | $ 3,549 |
PROPERTY AND EQUIPMENT - Compos
PROPERTY AND EQUIPMENT - Composition of our Property and Equipment Balances (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,459 | $ 2,353 |
Accumulated depreciation | (874) | (850) |
Property and equipment, net | 1,585 | 1,503 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 688 | 686 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,086 | 985 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 649 | 545 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 36 | $ 137 |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 114 | $ 138 | $ 322 |
Property and equipment, net | 1,585 | 1,503 | |
International | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | 592 | 623 | |
Reimbursed Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 35 | $ 49 | $ 109 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 40 years |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | $ 152 | $ 144 |
Commercial paper | (871) | 0 |
Credit Facility | 0 | (1,050) |
Other noncurrent liabilities | (1,842) | (2,002) |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 152 | 144 |
Total noncurrent financial assets | 152 | 144 |
Senior Notes | (8,322) | (8,009) |
Commercial paper | (871) | 0 |
Credit Facility | 0 | (1,050) |
Other long-term debt | (56) | (135) |
Other noncurrent liabilities | (394) | (414) |
Total noncurrent financial liabilities | (9,643) | (9,608) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 142 | 131 |
Total noncurrent financial assets | 142 | 131 |
Senior Notes | (7,627) | (8,480) |
Commercial paper | (871) | 0 |
Credit Facility | 0 | (1,050) |
Other long-term debt | (49) | (140) |
Other noncurrent liabilities | (394) | (414) |
Total noncurrent financial liabilities | $ (8,941) | $ (10,084) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Accumulated Other Comprehensive Income Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent [Roll forward] [Abstract] | |||
Beginning balance | $ 1,414 | $ 430 | $ 703 |
Other comprehensive (loss) income before reclassifications | (379) | (207) | 236 |
Reclassification adjustments | (8) | 0 | (10) |
Total other comprehensive income (loss), net of tax | (387) | (207) | 226 |
Ending balance | 568 | 1,414 | 430 |
Intra-entity foreign currency long-term-investment gains (losses) | 32 | 40 | (44) |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent [Roll forward] [Abstract] | |||
Beginning balance | (351) | (139) | (368) |
Other comprehensive (loss) income before reclassifications | (390) | (212) | 229 |
Reclassification adjustments | 1 | 0 | 0 |
Total other comprehensive income (loss), net of tax | (389) | (212) | 229 |
Ending balance | (740) | (351) | (139) |
Other Adjustments | |||
AOCI Attributable to Parent [Roll forward] [Abstract] | |||
Beginning balance | 9 | 4 | 7 |
Other comprehensive (loss) income before reclassifications | 11 | 5 | 7 |
Reclassification adjustments | (9) | 0 | (10) |
Total other comprehensive income (loss), net of tax | 2 | 5 | (3) |
Ending balance | 11 | 9 | 4 |
Accumulated Other Comprehensive Loss | |||
AOCI Attributable to Parent [Roll forward] [Abstract] | |||
Beginning balance | (342) | (135) | (361) |
Total other comprehensive income (loss), net of tax | (387) | (207) | 226 |
Ending balance | $ (729) | $ (342) | $ (135) |
BUSINESS SEGMENTS - Segment Rev
BUSINESS SEGMENTS - Segment Revenues (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Number of reporting segments | segment | 2 | |||
Total revenue | $ 20,773 | $ 13,857 | $ 10,571 | |
Total segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 19,239 | 12,610 | 9,502 | |
Total segment | Non-US | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 4,032 | 2,615 | 1,910 | |
Total segment | U.S. & Canada | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 15,753 | 10,356 | 7,905 | |
Total segment | International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 3,486 | 2,254 | 1,597 | |
Unallocated corporate and other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 1,534 | 1,247 | 1,069 | |
Net fee revenues | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Gross fee revenues | 4,078 | 2,694 | 1,683 | |
Contract investment amortization | (89) | (75) | (132) | |
Total revenue | 3,989 | 2,619 | 1,551 | |
Net fee revenues | Total segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Gross fee revenues | 3,403 | 2,148 | 1,252 | |
Contract investment amortization | (89) | (75) | (132) | |
Total revenue | 3,314 | 2,073 | 1,120 | |
Net fee revenues | Total segment | U.S. & Canada | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Gross fee revenues | 2,486 | 1,580 | 914 | |
Contract investment amortization | (60) | (55) | (108) | |
Total revenue | 2,426 | 1,525 | 806 | |
Net fee revenues | Total segment | International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Gross fee revenues | 917 | 568 | 338 | |
Contract investment amortization | (29) | (20) | (24) | |
Total revenue | 888 | 548 | 314 | |
Owned, leased, and other | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 1,367 | 796 | 568 | |
Owned, leased, and other | Total segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 1,280 | 749 | 515 | |
Owned, leased, and other | Total segment | U.S. & Canada | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 479 | 282 | 198 | |
Owned, leased, and other | Total segment | International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 801 | 467 | 317 | |
Reimbursements | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | [1] | 15,417 | 10,442 | 8,452 |
Reimbursements | Total segment | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 14,645 | 9,788 | 7,867 | |
Reimbursements | Total segment | Non-US | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 2,231 | 1,553 | 1,247 | |
Reimbursements | Total segment | U.S. & Canada | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | 12,848 | 8,549 | 6,901 | |
Reimbursements | Total segment | International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Total revenue | $ 1,797 | $ 1,239 | $ 966 | |
[1]See Note 15 for disclosure of related party amounts. |
BUSINESS SEGMENTS - Segment Pro
BUSINESS SEGMENTS - Segment Profits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segments profits | $ 3,462 | $ 1,750 | $ 84 |
Interest expense, net of interest income | (377) | (392) | (418) |
(Provision) benefit for income taxes | (756) | (81) | 199 |
NET INCOME (LOSS) | 2,358 | 1,099 | (267) |
Non-US | Reimbursements | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segments profits | 67 | 14 | (62) |
Total segment | Non-US | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segments profits | 898 | 297 | (198) |
Total segment | U.S. & Canada | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segments profits | 2,446 | 1,394 | 198 |
Total segment | U.S. & Canada | Reimbursements | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segments profits | 134 | 51 | (80) |
Total segment | International | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segments profits | 794 | 258 | (222) |
Total segment | International | Reimbursements | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segments profits | 49 | 14 | (55) |
Unallocated corporate and other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segments profits | $ 251 | $ (80) | $ (24) |
BUSINESS SEGMENTS - Depreciatio
BUSINESS SEGMENTS - Depreciation and Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Depreciation, amortization, and other | $ 193 | $ 220 | $ 346 |
Total segment | U.S. & Canada | |||
Segment Reporting Information [Line Items] | |||
Depreciation, amortization, and other | 81 | 92 | 209 |
Total segment | International | |||
Segment Reporting Information [Line Items] | |||
Depreciation, amortization, and other | 85 | 106 | 113 |
Unallocated corporate and other | |||
Segment Reporting Information [Line Items] | |||
Depreciation, amortization, and other | $ 27 | $ 22 | $ 24 |
BUSINESS SEGMENTS - Capital Exp
BUSINESS SEGMENTS - Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 332 | $ 183 | $ 135 |
Total segment | U.S. & Canada | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 24 | 13 | 12 |
Total segment | International | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 17 | 12 | 17 |
Unallocated corporate and other | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 291 | $ 158 | $ 106 |
RELATED PARTY TRANSACTIONS - Fi
RELATED PARTY TRANSACTIONS - Financial Data Resulting from Transactions with Related Parties, Income Statement Data (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Related Party Transaction [Line Items] | ||||
Cost reimbursement revenue | $ 20,773 | $ 13,857 | $ 10,571 | |
Equity in earnings (losses) | [1] | 18 | (24) | (141) |
Equity Method Investment | ||||
Related Party Transaction [Line Items] | ||||
Equity in earnings (losses) | 18 | (24) | (141) | |
Reimbursements | ||||
Related Party Transaction [Line Items] | ||||
Cost reimbursement revenue | [1] | 15,417 | 10,442 | 8,452 |
Reimbursed expenses | [1] | (15,141) | (10,322) | (8,435) |
Reimbursements | Equity Method Investment | ||||
Related Party Transaction [Line Items] | ||||
Cost reimbursement revenue | 104 | 104 | 107 | |
Reimbursed expenses | $ (104) | $ (105) | $ (110) | |
[1]See Note 15 for disclosure of related party amounts. |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |||
Carrying amount of equity method investments | $ 335,000,000 | $ 387,000,000 | |
Amount by which the fair value of equity method investments exceeds company's share of the book value of the investee's net assets | 238,000,000 | 257,000,000 | |
Impairment charges | $ 77,000,000 | ||
JWM Family Enterprise, L.P. | |||
Related Party Transaction [Line Items] | |||
Management fees | 11,000,000 | 6,000,000 | 3,000,000 |
Affiliated Members Of The Marriott Family | |||
Related Party Transaction [Line Items] | |||
Management fees | $ 4,000,000 | $ 1,000,000 | $ 0 |