Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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, $0.01 par value | |
Trading Symbol | MAR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 303,354,157 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001048286 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
REVENUES | ||
Revenues | $ 5,615 | $ 4,199 |
OPERATING COSTS AND EXPENSES | ||
Depreciation, amortization, and other | 44 | 48 |
General, administrative, and other | 202 | 208 |
Merger-related charges and other | 1 | 9 |
Costs and expenses | 4,664 | 3,641 |
OPERATING INCOME | 951 | 558 |
Gains and other income, net | 3 | 4 |
Interest expense | (126) | (93) |
Interest income | 15 | 5 |
Equity in earnings | 1 | 2 |
INCOME BEFORE INCOME TAXES | 844 | 476 |
Provision for income taxes | (87) | (99) |
NET INCOME | $ 757 | $ 377 |
EARNINGS PER SHARE | ||
Basic (in USD per share) | $ 2.44 | $ 1.15 |
Diluted (in USD per share) | $ 2.43 | $ 1.14 |
Base management fees | ||
REVENUES | ||
Gross revenues | $ 293 | $ 213 |
Franchise fees | ||
REVENUES | ||
Gross revenues | 639 | 500 |
Incentive management fees | ||
REVENUES | ||
Gross revenues | 201 | 102 |
Fee revenues | ||
REVENUES | ||
Gross revenues | 1,133 | 815 |
Contract investment amortization | (21) | (24) |
Revenues | 1,112 | 791 |
Owned, leased, and other | ||
REVENUES | ||
Revenues | 356 | 262 |
OPERATING COSTS AND EXPENSES | ||
Operating costs | 281 | 197 |
Reimbursements | ||
REVENUES | ||
Revenues | 4,147 | 3,146 |
OPERATING COSTS AND EXPENSES | ||
Operating costs | $ 4,136 | $ 3,179 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 757 | $ 377 |
Other comprehensive income | ||
Foreign currency translation adjustments | 84 | 14 |
Other adjustments, net of tax | (2) | 0 |
Total other comprehensive income, net of tax | 82 | 14 |
Comprehensive income | $ 839 | $ 391 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and equivalents | $ 554 | $ 507 |
Accounts and notes receivable, net | 2,462 | 2,571 |
Prepaid expenses and other | 248 | 235 |
Assets, current, total | 3,264 | 3,313 |
Property and equipment, net | 1,595 | 1,585 |
Intangible assets | ||
Goodwill | 8,904 | 8,872 |
Goodwill and intangible assets, net, total | 17,736 | 17,619 |
Equity method investments | 334 | 335 |
Notes receivable, net | 126 | 152 |
Deferred tax assets | 240 | 240 |
Operating lease assets | 984 | 987 |
Other noncurrent assets | 584 | 584 |
Total assets | 24,863 | 24,815 |
Current liabilities | ||
Current portion of long-term debt | 358 | 684 |
Accounts payable | 722 | 746 |
Accrued payroll and benefits | 1,027 | 1,299 |
Accrued expenses and other | 1,481 | 1,296 |
Liabilities, current, total | 6,969 | 7,339 |
Long-term debt | 10,299 | 9,380 |
Deferred tax liabilities | 307 | 313 |
Operating lease liabilities | 1,024 | 1,034 |
Other noncurrent liabilities | 1,711 | 1,842 |
Stockholders’ equity | ||
Class A Common Stock | 5 | 5 |
Additional paid-in-capital | 5,906 | 5,965 |
Retained earnings | 12,975 | 12,342 |
Treasury stock, at cost | (18,099) | (17,015) |
Accumulated other comprehensive loss | (647) | (729) |
Stockholders’ equity | 140 | 568 |
Liabilities and equity (deficit), total | 24,863 | 24,815 |
Brands | ||
Intangible assets | ||
Intangible assets | 5,836 | 5,812 |
Contract acquisition costs and other | ||
Intangible assets | ||
Intangible assets | 2,996 | 2,935 |
Liability for guest loyalty program | ||
Current liabilities | ||
Liability for guest loyalty program | 3,381 | 3,314 |
Contract with customer liabilities | 3,350 | 3,280 |
Deferred revenue | ||
Current liabilities | ||
Contract with customer liabilities | $ 1,063 | $ 1,059 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
OPERATING ACTIVITIES | |||
Net income | $ 757 | $ 377 | |
Adjustments to reconcile to cash provided by operating activities: | |||
Depreciation, amortization, and other | 65 | 72 | |
Stock-based compensation | 37 | 44 | |
Income taxes | 19 | 61 | |
Contract acquisition costs | (58) | (26) | |
Merger-related charges and other | 0 | 7 | |
Working capital changes | (96) | (230) | |
Other | 56 | 36 | |
Net cash provided by operating activities | 887 | 398 | |
INVESTING ACTIVITIES | |||
Capital and technology expenditures | (95) | (49) | |
Loan advances | (1) | 0 | |
Loan collections | 31 | 7 | |
Other | 6 | 19 | |
Net cash used in investing activities | (59) | (23) | |
FINANCING ACTIVITIES | |||
Commercial paper/Credit Facility, net | 117 | (250) | |
Issuance of long-term debt | 783 | 0 | |
Repayment of long-term debt | (328) | (401) | |
Dividends paid | (124) | 0 | |
Purchase of treasury stock | (1,135) | 0 | |
Stock-based compensation withholding taxes | (72) | (78) | |
Other | (23) | 0 | |
Net cash used in financing activities | (782) | (729) | |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 46 | (354) | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | [1] | 525 | 1,421 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | [1] | 571 | 1,067 |
Loyalty Program | |||
Adjustments to reconcile to cash provided by operating activities: | |||
Liability for guest loyalty program | $ 107 | $ 57 | |
[1]The 2023 amounts include beginning restricted cash of $18 million at December 31, 2022, and ending restricted cash of $17 million at March 31, 2023, which we present in the “Prepaid expenses and other” and “Other noncurrent assets” captions of our Balance Sheets. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 17 | $ 18 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The condensed consolidated financial statements present the results of operations, financial position, and cash flows of Marriott International, Inc. and subsidiaries (referred to in this report as “we,” “us,” “Marriott,” or the “Company”). In order to make this report easier to read, we also refer throughout to (1) our Condensed Consolidated Financial Statements as our “Financial Statements,” (2) our Condensed Consolidated Statements of Income as our “Income Statements,” (3) our Condensed Consolidated Balance Sheets as our “Balance Sheets,” (4) our Condensed Consolidated Statements of Cash Flows as our “Statements of Cash Flows,” (5) our properties, brands, or markets in the United States and Canada as “U.S. & Canada,” and (6) our properties, brands, or markets in our Caribbean and Latin America, Europe, Middle East and Africa, Greater China, and Asia Pacific excluding China regions, as “International.” In addition, references throughout to numbered “Notes” refer to these Notes to Condensed Consolidated Financial Statements, unless otherwise stated. These Financial Statements have not been audited. We have condensed or omitted certain information and disclosures normally included in financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial statements in this report should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (“2022 Form 10-K”). Certain terms not otherwise defined in this Form 10-Q have the meanings specified in our 2022 Form 10-K. Preparation of financial statements that conform with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates. The accompanying Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position as of March 31, 2023 and December 31, 2022 and the results of our operations and cash flows for the three months ended March 31, 2023 and March 31, 2022. Interim results may not be indicative of fiscal year performance because of seasonal and short-term variations, as well as the impact of COVID-19. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
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: Three Months Ended (in millions, except per share amounts) March 31, 2023 March 31, 2022 Computation of Basic Earnings Per Share Net income $ 757 $ 377 Shares for basic earnings per share 309.6 328.3 Basic earnings per share $ 2.44 $ 1.15 Computation of Diluted Earnings Per Share Net income $ 757 $ 377 Shares for basic earnings per share 309.6 328.3 Effect of dilutive securities Stock-based compensation 1.4 1.7 Shares for diluted earnings per share 311.0 330.0 Diluted earnings per share $ 2.43 $ 1.14 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | STOCK-BASED COMPENSATION We granted 1.0 million restricted stock units (“RSUs”) during the 2023 first quarter to certain officers and employees, and those units vest generally over four years in equal annual installments commencing one year after the grant date. We also granted 0.1 million performance-based RSUs (“PSUs”) in the 2023 first quarter 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 2025 adjusted EBITDA performance and relative total stockholder return over the 2023 to 2025 performance period. RSUs, including PSUs, granted in the 2023 first quarter had a weighted average grant-date fair value of $167 per unit. We recorded stock-based compensation expense for RSUs and PSUs of $33 million in the 2023 first quarter and $42 million in the 2022 first quarter. Deferred compensation costs for unvested awards for RSUs and PSUs totaled $315 million at March 31, 2023 and $179 million at December 31, 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rate decreased to 10.3 percent for the 2023 first quarter compared to 20.7 percent for the 2022 first quarter, primarily due to the current year release of tax reserves. Our unrecognized tax benefit balance decreased by $99 million to $156 million at March 31, 2023 from $255 million at December 31, 2022, primarily due to the completion of a prior year tax audit. Our unrecognized tax benefit balance included $145 million at March 31, 2023 and $241 million at December 31, 2022 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 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 March 31, 2023, we have settled all issues for tax years through 2019. Our 2020 through 2023 tax year audits are currently ongoing. Various foreign, state, and local income tax returns are also under examination by the applicable taxing authorities. We paid cash for income taxes, net of refunds, of $68 million in the 2023 first quarter and $38 million in the 2022 first quarter. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees We present the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for our debt service, operating profit, and other guarantees (excluding contingent purchase obligations) for which we are the primary obligor at March 31, 2023 in the following table: (in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 60 $ 6 Operating profit 182 98 Other 18 4 $ 260 $ 108 Our maximum potential guarantees listed in the preceding table include $58 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. Contingent Purchase Obligation Sheraton Grand Chicago . In 2017, we granted the owner a one-time right to require us to purchase the leasehold interest in the land and the hotel for $300 million in cash (the “put option”). In the 2021 third quarter, we entered into an amendment with the owner to move the exercise period of the put option from the 2022 first half to the 2024 first half. If the owner exercises the put option, the closing is expected to occur in the 2024 fourth quarter, and we have the option to purchase, at the same time the put transaction closes, the fee simple interest in the underlying land for an additional $200 million in cash. We account for the put option as a guarantee, and our recorded liability was $300 million at March 31, 2023 and December 31, 2022. 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”). The District Court granted in part and denied in part class certification of various U.S. groups of consumers, and our appeal of this decision is pending in the U.S. Court of Appeals for the Fourth Circuit. A case brought by the City of Chicago (which is consolidated in the MDL proceeding) also remains pending. 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. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table as of March 31, 2023 and year-end 2022: (in millions) March 31, December 31, Senior Notes: Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) $ 348 $ 348 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) 747 747 Series U Notes, interest rate of 3.1%, face amount of $291, matured February 15, 2023 (effective interest rate of 3.1%) — 291 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) 324 324 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) 289 289 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 446 446 Series Z Notes, interest rate of 4.2%, face amount of $350, maturing December 1, 2023 (effective interest rate of 4.4%) 350 349 Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) 298 298 Series CC Notes, interest rate of 3.6%, face amount of $550, maturing April 15, 2024 (effective interest rate of 3.9%) 535 531 Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) 597 596 Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) 988 988 Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) 987 987 Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) 1,091 1,090 Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) 694 694 Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) 985 984 Series KK Notes, interest rate of 4.9%, face amount of $800, maturing April 15, 2029 (effective interest rate of 5.3%) 783 — Commercial paper 1,002 871 Credit Facility — — Finance lease obligations 137 139 Other 56 92 $ 10,657 $ 10,064 Less current portion (358) (684) $ 10,299 $ 9,380 We paid cash for interest, net of amounts capitalized, of $15 million in the 2023 first quarter and $29 million in the 2022 first quarter. In March 2023, we issued $800 million aggregate principal amount of 4.9 percent Series KK Notes due April 15, 2029 (the “Series KK Notes”). We will pay interest on the Series KK Notes in April and October of each year, commencing in October 2023. We received net proceeds of approximately $783 million from the offering of the Series KK 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. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONOn May 1, 2023, we completed the acquisition of the City Express brand portfolio from Hoteles City Express, S.A.B. de C.V. for $100 million. As a result of the transaction, we added approximately 150 properties located in Mexico, Costa Rica, Colombia, and Chile to our franchise portfolio. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
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 in the following table: March 31, 2023 December 31, 2022 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior, mezzanine, and other loans $ 126 $ 118 $ 152 $ 142 Total noncurrent financial assets $ 126 $ 118 $ 152 $ 142 Senior Notes $ (9,112) $ (8,646) $ (8,322) $ (7,627) Commercial paper (1,002) (1,002) (871) (871) Other long-term debt (56) (49) (56) (49) Other noncurrent liabilities (387) (387) (394) (394) Total noncurrent financial liabilities $ (10,557) $ (10,084) $ (9,643) $ (8,941) See Note 12. Fair Value of Financial Instruments and the “Fair Value Measurements” caption of Note 2. Summary of Significant Accounting Policies of our 2022 Form 10-K for more information on the input levels we use in determining fair value. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss and Shareholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss and Shareholders' Equity | ACCUMULATED OTHER COMPREHENSIVE LOSS AND STOCKHOLDERS’ EQUITY The following tables detail the accumulated other comprehensive loss activity for the 2023 first quarter and 2022 first quarter: (in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2022 $ (740) $ 11 $ (729) Other comprehensive income (loss) before reclassifications (1) 84 (3) 81 Reclassification adjustments — 1 1 Net other comprehensive income (loss) 84 (2) 82 Balance at March 31, 2023 $ (656) $ 9 $ (647) (in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2021 $ (351) $ 9 $ (342) Other comprehensive income before reclassifications (1) 14 — 14 Reclassification adjustments — — — Net other comprehensive income 14 — 14 Balance at March 31, 2022 $ (337) $ 9 $ (328) (1) Other comprehensive 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 losses of $12 million for the 2023 first quarter and gains of $12 million for the 2022 first quarter. The following tables detail the changes in common shares outstanding and stockholders’ equity for the 2023 first quarter and 2022 first quarter: (in millions, except per share amounts) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 310.6 Balance at year-end 2022 $ 568 $ 5 $ 5,965 $ 12,342 $ (17,015) $ (729) — Net income 757 — — 757 — — — Other comprehensive income 82 — — — — 82 — Dividends ($0.40 per share) (124) — — (124) — — 0.9 Stock-based compensation plans (34) — (59) — 25 — (6.8) Purchase of treasury stock (1,109) — — — (1,109) — 304.7 Balance at March 31, 2023 $ 140 $ 5 $ 5,906 $ 12,975 $ (18,099) $ (647) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 326.3 Balance at year-end 2021 $ 1,414 $ 5 $ 5,892 $ 10,305 $ (14,446) $ (342) — Net income 377 — — 377 — — — Other comprehensive income 14 — — — — 14 1.0 Stock-based compensation plans (33) — (61) — 28 — 327.3 Balance at March 31, 2022 $ 1,772 $ 5 $ 5,831 $ 10,682 $ (14,418) $ (328) |
Contracts with Customers
Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contracts with Customers | CONTRACTS WITH CUSTOMERS Our current and noncurrent liability for guest loyalty program increased by $137 million, to $6,731 million at March 31, 2023, from $6,594 million at December 31, 2022, primarily reflecting an increase in points earned by members. This includes a $30 million reclassification from deferred revenue to the liability for guest loyalty program primarily due to points that were earned during the period by members using our U.S.-issued co-branded credit cards, which were prepaid by the financial institutions in 2020. The increase was partially offset by $745 million of revenue recognized in the 2023 first quarter, that was deferred as of December 31, 2022. The |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2023 | |
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) U.S. & Canada and (2) International. We evaluate the performance of our operating segments using “segment profits” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, or merger-related costs. We assign gains and losses, equity in earnings or losses, and direct general, administrative, and other expenses 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, 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 2023 first quarter and 2022 first quarter: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (in millions) U.S. & Canada International Total U.S. & Canada International Total Gross fee revenues $ 672 $ 291 $ 963 $ 489 $ 177 $ 666 Contract investment amortization (16) (5) (21) (14) (10) (24) Net fee revenues 656 286 942 475 167 642 Owned, leased, and other revenue 117 214 331 92 153 245 Cost reimbursement revenue 3,505 508 4,013 2,704 355 3,059 Total reportable segment revenue $ 4,278 $ 1,008 $ 5,286 $ 3,271 $ 675 $ 3,946 Unallocated corporate and other 329 253 Total revenue $ 5,615 $ 4,199 Segment Profits Three Months Ended (in millions) March 31, 2023 March 31, 2022 U.S. & Canada $ 657 $ 454 International 252 131 Unallocated corporate and other 46 (21) Interest expense, net of interest income (111) (88) Provision for income taxes (87) (99) Net income $ 757 $ 377 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Earnings and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share | The table below 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: Three Months Ended (in millions, except per share amounts) March 31, 2023 March 31, 2022 Computation of Basic Earnings Per Share Net income $ 757 $ 377 Shares for basic earnings per share 309.6 328.3 Basic earnings per share $ 2.44 $ 1.15 Computation of Diluted Earnings Per Share Net income $ 757 $ 377 Shares for basic earnings per share 309.6 328.3 Effect of dilutive securities Stock-based compensation 1.4 1.7 Shares for diluted earnings per share 311.0 330.0 Diluted earnings per share $ 2.43 $ 1.14 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings | We present the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for our debt service, operating profit, and other guarantees (excluding contingent purchase obligations) for which we are the primary obligor at March 31, 2023 in the following table: (in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 60 $ 6 Operating profit 182 98 Other 18 4 $ 260 $ 108 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table as of March 31, 2023 and year-end 2022: (in millions) March 31, December 31, Senior Notes: Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) $ 348 $ 348 Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) 747 747 Series U Notes, interest rate of 3.1%, face amount of $291, matured February 15, 2023 (effective interest rate of 3.1%) — 291 Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) 324 324 Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) 289 289 Series X Notes, interest rate of 4.0%, face amount of $450, maturing April 15, 2028 (effective interest rate of 4.2%) 446 446 Series Z Notes, interest rate of 4.2%, face amount of $350, maturing December 1, 2023 (effective interest rate of 4.4%) 350 349 Series AA Notes, interest rate of 4.7%, face amount of $300, maturing December 1, 2028 (effective interest rate of 4.8%) 298 298 Series CC Notes, interest rate of 3.6%, face amount of $550, maturing April 15, 2024 (effective interest rate of 3.9%) 535 531 Series EE Notes, interest rate of 5.8%, face amount of $600, maturing May 1, 2025 (effective interest rate of 6.0%) 597 596 Series FF Notes, interest rate of 4.6%, face amount of $1,000, maturing June 15, 2030 (effective interest rate of 4.8%) 988 988 Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) 987 987 Series HH Notes, interest rate of 2.9%, face amount of $1,100, maturing April 15, 2031 (effective interest rate of 3.0%) 1,091 1,090 Series II Notes, interest rate of 2.8%, face amount of $700, maturing October 15, 2033 (effective interest rate of 2.8%) 694 694 Series JJ Notes, interest rate of 5.0%, face amount of $1,000, maturing October 15, 2027 (effective interest rate of 5.4%) 985 984 Series KK Notes, interest rate of 4.9%, face amount of $800, maturing April 15, 2029 (effective interest rate of 5.3%) 783 — Commercial paper 1,002 871 Credit Facility — — Finance lease obligations 137 139 Other 56 92 $ 10,657 $ 10,064 Less current portion (358) (684) $ 10,299 $ 9,380 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 in the following table: March 31, 2023 December 31, 2022 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Senior, mezzanine, and other loans $ 126 $ 118 $ 152 $ 142 Total noncurrent financial assets $ 126 $ 118 $ 152 $ 142 Senior Notes $ (9,112) $ (8,646) $ (8,322) $ (7,627) Commercial paper (1,002) (1,002) (871) (871) Other long-term debt (56) (49) (56) (49) Other noncurrent liabilities (387) (387) (394) (394) Total noncurrent financial liabilities $ (10,557) $ (10,084) $ (9,643) $ (8,941) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss and Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss Activity | The following tables detail the accumulated other comprehensive loss activity for the 2023 first quarter and 2022 first quarter: (in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2022 $ (740) $ 11 $ (729) Other comprehensive income (loss) before reclassifications (1) 84 (3) 81 Reclassification adjustments — 1 1 Net other comprehensive income (loss) 84 (2) 82 Balance at March 31, 2023 $ (656) $ 9 $ (647) (in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2021 $ (351) $ 9 $ (342) Other comprehensive income before reclassifications (1) 14 — 14 Reclassification adjustments — — — Net other comprehensive income 14 — 14 Balance at March 31, 2022 $ (337) $ 9 $ (328) (1) Other comprehensive 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 losses of $12 million for the 2023 first quarter and gains of $12 million for the 2022 first quarter. |
Changes in Shareholders' Equity | The following tables detail the changes in common shares outstanding and stockholders’ equity for the 2023 first quarter and 2022 first quarter: (in millions, except per share amounts) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 310.6 Balance at year-end 2022 $ 568 $ 5 $ 5,965 $ 12,342 $ (17,015) $ (729) — Net income 757 — — 757 — — — Other comprehensive income 82 — — — — 82 — Dividends ($0.40 per share) (124) — — (124) — — 0.9 Stock-based compensation plans (34) — (59) — 25 — (6.8) Purchase of treasury stock (1,109) — — — (1,109) — 304.7 Balance at March 31, 2023 $ 140 $ 5 $ 5,906 $ 12,975 $ (18,099) $ (647) Common Total Class A Common Stock Additional Paid-in-Capital Retained Earnings Treasury Stock, at Cost Accumulated Other Comprehensive Loss 326.3 Balance at year-end 2021 $ 1,414 $ 5 $ 5,892 $ 10,305 $ (14,446) $ (342) — Net income 377 — — 377 — — — Other comprehensive income 14 — — — — 14 1.0 Stock-based compensation plans (33) — (61) — 28 — 327.3 Balance at March 31, 2022 $ 1,772 $ 5 $ 5,831 $ 10,682 $ (14,418) $ (328) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Revenues | The following table presents our revenues disaggregated by segment and major revenue stream for the 2023 first quarter and 2022 first quarter: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (in millions) U.S. & Canada International Total U.S. & Canada International Total Gross fee revenues $ 672 $ 291 $ 963 $ 489 $ 177 $ 666 Contract investment amortization (16) (5) (21) (14) (10) (24) Net fee revenues 656 286 942 475 167 642 Owned, leased, and other revenue 117 214 331 92 153 245 Cost reimbursement revenue 3,505 508 4,013 2,704 355 3,059 Total reportable segment revenue $ 4,278 $ 1,008 $ 5,286 $ 3,271 $ 675 $ 3,946 Unallocated corporate and other 329 253 Total revenue $ 5,615 $ 4,199 |
Segment Profits | Segment Profits Three Months Ended (in millions) March 31, 2023 March 31, 2022 U.S. & Canada $ 657 $ 454 International 252 131 Unallocated corporate and other 46 (21) Interest expense, net of interest income (111) (88) Provision for income taxes (87) (99) Net income $ 757 $ 377 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Computation of Basic Earnings Per Share | ||
Net income | $ 757 | $ 377 |
Shares for basic earnings per share (in shares) | 309.6 | 328.3 |
Basic (in USD per share) | $ 2.44 | $ 1.15 |
Computation of Diluted Earnings Per Share | ||
Net income | $ 757 | $ 377 |
Shares for basic earnings per share (in shares) | 309.6 | 328.3 |
Effect of dilutive securities | ||
Stock-based compensation (in shares) | 1.4 | 1.7 |
Shares for diluted earnings per share (in shares) | 311 | 330 |
Diluted (in USD per share) | $ 2.43 | $ 1.14 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 33 | $ 42 | |
Deferred compensation costs related to unvested awards | $ 315 | $ 179 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, granted (in shares) | 1 | ||
Stock awards, vesting period | 4 years | ||
Stock awards, period of service after grant date | 1 year | ||
Stock awards, weighted average grant-date fair value (in USD per share) | $ 167 | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, granted (in shares) | 0.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 10.30% | 20.70% | |
Change in unrecognized benefits | $ (99) | ||
Unrecognized tax benefits | 156 | $ 255 | |
Unrecognized tax benefits with tax positions that would impact effective tax rate | 145 | $ 241 | |
Cash paid for income taxes, net of refunds | $ 68 | $ 38 |
Commitments and Contingencies -
Commitments and Contingencies - Guarantees (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | $ 260 |
Recorded Liability for Guarantees | 108 |
Debt service | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 60 |
Recorded Liability for Guarantees | 6 |
Operating profit | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 182 |
Recorded Liability for Guarantees | 98 |
Operating profit | Not Yet In Effect Condition | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 58 |
Other | |
Commitments and Contingencies Disclosure [Line Items] | |
Maximum Potential Amount of Future Fundings | 18 |
Recorded Liability for Guarantees | $ 4 |
Commitments and Contingencies_2
Commitments and Contingencies - Contingent Purchase Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2017 |
Guarantor Obligations [Line Items] | |||
Guarantee | $ 260 | ||
Guarantee, recorded liability | 108 | ||
Sheraton Grand Chicago Hotel | |||
Guarantor Obligations [Line Items] | |||
Guarantee, recorded liability | 300 | $ 300 | |
Sheraton Grand Chicago Hotel | Hotel and Leasehold | |||
Guarantor Obligations [Line Items] | |||
Guarantee | $ 300 | ||
Sheraton Grand Chicago Hotel | Land | |||
Guarantor Obligations [Line Items] | |||
Guarantee | $ 200 |
Commitments and Contingencies_3
Commitments and Contingencies - Expenses and Insurance Recoveries (Details) | Nov. 30, 2018 lawsuit |
Class Action Lawsuits Related to Data Security Incident | |
Loss Contingencies [Line Items] | |
Number of new lawsuits filed | 100 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 1,002,000,000 | $ 871,000,000 |
Credit Facility | 0 | 0 |
Finance lease obligations | 137,000,000 | 139,000,000 |
Other | 56,000,000 | 92,000,000 |
Total debt | 10,657,000,000 | 10,064,000,000 |
Less current portion | (358,000,000) | (684,000,000) |
Long-term debt, noncurrent | 10,299,000,000 | 9,380,000,000 |
Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 348,000,000 | 348,000,000 |
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] | ||
Interest rate | 3.80% | |
Senior notes, face amount | $ 350,000,000 | |
Effective interest rate | 4% | |
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 | 747,000,000 |
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] | ||
Interest rate | 3.10% | |
Senior notes, face amount | $ 750,000,000 | |
Effective interest rate | 3.30% | |
Series U Notes, interest rate of 3.1%, face amount of $291, matured February 15, 2023 (effective interest rate of 3.1%) | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 0 | 291,000,000 |
Series U Notes, interest rate of 3.1%, face amount of $291, matured February 15, 2023 (effective interest rate of 3.1%) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.10% | |
Senior notes, face amount | $ 291,000,000 | |
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 | 324,000,000 |
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] | ||
Interest rate | 3.80% | |
Senior notes, face amount | $ 318,000,000 | |
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 | 289,000,000 |
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] | ||
Interest rate | 4.50% | |
Senior notes, face amount | $ 278,000,000 | |
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 | 446,000,000 |
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] | ||
Interest rate | 4% | |
Senior notes, face amount | $ 450,000,000 | |
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 | $ 350,000,000 | 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] | ||
Interest rate | 4.20% | |
Senior notes, face amount | $ 350,000,000 | |
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 | 298,000,000 |
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] | ||
Interest rate | 4.70% | |
Senior notes, face amount | $ 300,000,000 | |
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 | $ 535,000,000 | 531,000,000 |
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] | ||
Interest rate | 3.60% | |
Senior notes, face amount | $ 550,000,000 | |
Effective interest rate | 3.90% | |
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 | $ 597,000,000 | 596,000,000 |
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] | ||
Interest rate | 5.80% | |
Senior notes, face amount | $ 600,000,000 | |
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 | 988,000,000 |
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] | ||
Interest rate | 4.60% | |
Senior notes, face amount | $ 1,000,000,000 | |
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 | 987,000,000 |
Series GG Notes, interest rate of 3.5%, face amount of $1,000, maturing October 15, 2032 (effective interest rate of 3.7%) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.50% | |
Senior notes, face amount | $ 1,000,000,000 | |
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 | $ 1,091,000,000 | 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] | ||
Interest rate | 2.90% | |
Senior notes, face amount | $ 1,100,000,000 | |
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 | 694,000,000 |
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] | ||
Interest rate | 2.80% | |
Senior notes, face amount | $ 700,000,000 | |
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 | $ 985,000,000 | 984,000,000 |
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] | ||
Interest rate | 5% | |
Senior notes, face amount | $ 1,000,000,000 | |
Effective interest rate | 5.40% | |
Series KK Notes, interest rate of 4.9%, face amount of $800, maturing April 15, 2029 (effective interest rate of 5.3%) | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 783,000,000 | $ 0 |
Series KK Notes, interest rate of 4.9%, face amount of $800, maturing April 15, 2029 (effective interest rate of 5.3%) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.90% | |
Senior notes, face amount | $ 800,000,000 | |
Effective interest rate | 5.30% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |||
Interest paid, net of amounts capitalized | $ 15,000,000 | $ 29,000,000 | |
Maximum aggregate borrowings under credit facility (up to) | $ 4,500,000,000 | 4,500,000,000 | |
Series KK Notes, interest rate of 4.9%, face amount of $800, maturing April 15, 2029 (effective interest rate of 5.3%) | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes, face amount | $ 800,000,000 | $ 800,000,000 | |
Interest rate | 4.90% | 4.90% | |
Proceeds from debt | $ 783,000,000 |
Acquisitions - Acquisitions (De
Acquisitions - Acquisitions (Details) - City Express Brand Portfolio - Subsequent Event $ in Millions | May 01, 2023 USD ($) hotel |
Asset Acquisition [Line Items] | |
Consideration transferred | $ | $ 100 |
Number of hotels | hotel | 150 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | $ 126 | $ 152 |
Commercial paper | (1,002) | (871) |
Other noncurrent liabilities | (1,711) | (1,842) |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 126 | 152 |
Total noncurrent financial assets | 126 | 152 |
Senior Notes | (9,112) | (8,322) |
Commercial paper | (1,002) | (871) |
Other long-term debt | (56) | (56) |
Other noncurrent liabilities | (394) | |
Total noncurrent financial liabilities | (10,557) | (9,643) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior, mezzanine, and other loans | 118 | 142 |
Total noncurrent financial assets | 118 | 142 |
Senior Notes | (8,646) | (7,627) |
Commercial paper | (1,002) | (871) |
Other long-term debt | (49) | (49) |
Other noncurrent liabilities | (387) | (394) |
Total noncurrent financial liabilities | $ (10,084) | $ (8,941) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss and Shareholders' Equity - Accumulated Other Comprehensive (Loss) Income Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 568 | $ 1,414 |
Other comprehensive (loss) income before reclassifications | 81 | 14 |
Reclassification adjustments | 1 | 0 |
Total other comprehensive income, net of tax | 82 | 14 |
Balance at end of period | 140 | 1,772 |
Intra-entity foreign currency long-term-investment (losses) gains | (12) | 12 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (740) | (351) |
Other comprehensive (loss) income before reclassifications | 84 | 14 |
Reclassification adjustments | 0 | 0 |
Total other comprehensive income, net of tax | 84 | 14 |
Balance at end of period | (656) | (337) |
Other Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | 11 | 9 |
Other comprehensive (loss) income before reclassifications | (3) | 0 |
Reclassification adjustments | 1 | 0 |
Total other comprehensive income, net of tax | (2) | 0 |
Balance at end of period | 9 | 9 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at beginning of period | (729) | (342) |
Total other comprehensive income, net of tax | 82 | 14 |
Balance at end of period | $ (647) | $ (328) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss and Shareholders' Equity - Changes in Shareholders' Equity (Deficit) (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stockholders Equity Note [Line Items] | ||
Cash dividends (in USD per share) | $ 0.40 | |
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | $ 568 | $ 1,414 |
Net income | 757 | 377 |
Other comprehensive income (loss) | 82 | 14 |
Dividends ($0.00 per share) | (124) | |
Stock-based compensation plans | (34) | (33) |
Purchase of treasury stock | (1,109) | |
Balance at end of period | 140 | 1,772 |
Class A Common Stock | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | $ 5 | $ 5 |
Balance at beginning of period (in shares) | 310.6 | 326.3 |
Purchase of treasury stock (in shares) | (6.8) | |
Stock-based compensation plans (in shares) | 0.9 | 1 |
Balance at end of period | $ 5 | $ 5 |
Balance at end of period (in shares) | 304.7 | 327.3 |
Additional Paid-in-Capital | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | $ 5,965 | $ 5,892 |
Stock-based compensation plans | (59) | (61) |
Balance at end of period | 5,906 | 5,831 |
Retained Earnings | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | 12,342 | 10,305 |
Net income | 757 | 377 |
Dividends ($0.00 per share) | (124) | |
Balance at end of period | 12,975 | 10,682 |
Treasury Stock, at Cost | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | (17,015) | (14,446) |
Stock-based compensation plans | 25 | 28 |
Purchase of treasury stock | (1,109) | |
Balance at end of period | (18,099) | (14,418) |
Accumulated Other Comprehensive Loss | ||
(Increase) Decrease in Shareholders' Deficit [Roll Forward] | ||
Balance at beginning of period | (729) | (342) |
Other comprehensive income (loss) | 82 | 14 |
Balance at end of period | $ (647) | $ (328) |
Contracts with Customers (Detai
Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Allowance for credit loss | $ 194 | $ 191 |
Loyalty Program | ||
Disaggregation of Revenue [Line Items] | ||
Change in contract with customer liability | 137 | |
Contract with customer liability | 6,731 | $ 6,594 |
Reclassification of deferred revenue to liability for guest loyalty program | 30 | |
Deferred revenue recognized | $ 745 |
BUSINESS SEGMENTS - Segment Rev
BUSINESS SEGMENTS - Segment Revenues (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 5,615 | $ 4,199 |
Number of operating segments | segment | 2 | |
Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 5,286 | 3,946 |
Total segment | U.S. & Canada | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4,278 | 3,271 |
Total segment | International | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,008 | 675 |
Unallocated corporate and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 329 | 253 |
Fee revenues | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 1,133 | 815 |
Contract investment amortization | (21) | (24) |
Revenues | 1,112 | 791 |
Fee revenues | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 963 | 666 |
Contract investment amortization | (21) | (24) |
Revenues | 942 | 642 |
Fee revenues | Total segment | U.S. & Canada | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 672 | 489 |
Contract investment amortization | (16) | (14) |
Revenues | 656 | 475 |
Fee revenues | Total segment | International | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Gross revenues | 291 | 177 |
Contract investment amortization | (5) | (10) |
Revenues | 286 | 167 |
Owned, leased, and other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 356 | 262 |
Owned, leased, and other | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 331 | 245 |
Owned, leased, and other | Total segment | U.S. & Canada | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 117 | 92 |
Owned, leased, and other | Total segment | International | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 214 | 153 |
Reimbursements | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4,147 | 3,146 |
Reimbursements | Total segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 4,013 | 3,059 |
Reimbursements | Total segment | U.S. & Canada | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 3,505 | 2,704 |
Reimbursements | Total segment | International | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 508 | $ 355 |
BUSINESS SEGMENTS - Segment Pro
BUSINESS SEGMENTS - Segment Profits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | $ 951 | $ 558 |
Interest expense, net of interest income | (111) | (88) |
Provision for income taxes | (87) | (99) |
NET INCOME | 757 | 377 |
Total segment | U.S. & Canada | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | 657 | 454 |
Total segment | International | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | 252 | 131 |
Unallocated corporate and other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total segments profits | $ 46 | $ (21) |