Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 22, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Hilton Worldwide Holdings Inc. | |
Entity Central Index Key | 1,585,689 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Trading Symbol | hlt | |
Entity Common Stock, Shares Outstanding | 989,776,458 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Current Assets: | |||
Cash and cash equivalents | $ 810 | $ 609 | |
Restricted cash and cash equivalents | 271 | 247 | |
Accounts receivable, net of allowance for doubtful accounts | 1,005 | 876 | |
Inventories | 459 | 442 | |
Current portion of financing receivables, net | 129 | 129 | |
Prepaid expenses | 186 | 147 | |
Income taxes receivable | 18 | 97 | |
Other | 52 | 38 | |
Total current assets | 2,930 | 2,585 | |
Property, Intangibles and Other Assets: | |||
Property and equipment, net | 9,107 | 9,119 | |
Financing receivables, net | 905 | 887 | |
Investments in affiliates | 129 | 138 | |
Goodwill | 5,862 | 5,887 | |
Brands | 4,911 | 4,919 | |
Management and franchise contracts, net | 1,077 | 1,149 | |
Other intangible assets, net | 543 | 586 | |
Deferred income tax assets | 76 | 78 | |
Other | 313 | 274 | |
Total property, intangibles and other assets | 22,923 | 23,037 | |
Total assets | 25,853 | 25,622 | |
Current Liabilities: | |||
Accounts payable, accrued expenses and other | 2,370 | 2,206 | |
Current maturities of long-term debt | [1] | 98 | 94 |
Current maturities of timeshare debt | [2] | 88 | 110 |
Income taxes payable | 107 | 33 | |
Total current liabilities | 2,663 | 2,443 | |
Long-term debt | 9,900 | 9,857 | |
Timeshare debt | 357 | 392 | |
Deferred revenues | 161 | 283 | |
Deferred income tax liabilities | 4,533 | 4,630 | |
Liability for guest loyalty program | 833 | 784 | |
Other | 1,060 | 1,282 | |
Total liabilities | 19,507 | 19,671 | |
Commitments and contingencies - see Note 18 | |||
Equity: | |||
Preferred stock | 0 | 0 | |
Common stock | 10 | 10 | |
Additional paid-in capital | 10,175 | 10,151 | |
Accumulated deficit | (2,984) | (3,392) | |
Accumulated other comprehensive loss | (826) | (784) | |
Total Hilton stockholders' equity | 6,375 | 5,985 | |
Noncontrolling interests | (29) | (34) | |
Total equity | 6,346 | 5,951 | |
Total liabilities and equity | $ 25,853 | $ 25,622 | |
[1] | Net of unamortized deferred financing costs expected to be amortized in the next twelve months. | ||
[2] | Net of unamortized deferred financing costs expected to be amortized in the next twelve months. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 33 | $ 30 |
Variable interest entities - current assets | 171 | 141 |
Variable interest entities - property, intangibles and other assets | 637 | 481 |
Variable interest entities - current liabilities | 253 | 157 |
Variable interest entities - liabilities | $ 803 | $ 627 |
Preferred stock, par value (per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 3,000,000,000 | 3,000,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 30,000,000,000 | 30,000,000,000 |
Common stock, issued shares | 989,805,225 | 987,487,127 |
Common stock, outstanding shares | 989,776,458 | 987,458,360 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Owned and leased hotels | $ 1,105 | $ 1,135 | $ 2,072 | $ 2,092 |
Management and franchise fees and other | 444 | 407 | 830 | 778 |
Timeshare | 336 | 319 | 662 | 640 |
Total revenues excluding reimbursement revenue | 1,885 | 1,861 | 3,564 | 3,510 |
Other revenues from managed and franchised properties | 1,166 | 1,061 | 2,237 | 2,011 |
Total revenues | 3,051 | 2,922 | 5,801 | 5,521 |
Expenses | ||||
Owned and leased hotels | 808 | 817 | 1,564 | 1,585 |
Timeshare | 223 | 220 | 440 | 454 |
Depreciation and amortization | 171 | 173 | 340 | 348 |
Impairment loss | 0 | 0 | 15 | 0 |
General, administrative and other | 132 | 221 | 245 | 348 |
Total expenses excluding cost of reimbursable expense | 1,334 | 1,431 | 2,604 | 2,735 |
Other expenses from managed and franchised properties | 1,166 | 1,061 | 2,237 | 2,011 |
Total expenses | 2,500 | 2,492 | 4,841 | 4,746 |
Gain (loss) on sales of assets, net | 2 | (3) | 2 | 142 |
Operating income | 553 | 427 | 962 | 917 |
Interest income | 4 | 2 | 7 | 8 |
Interest expense | (147) | (149) | (286) | (293) |
Equity in earnings from unconsolidated affiliates | 8 | 9 | 11 | 13 |
Gain (loss) on foreign currency transactions | (13) | 5 | (25) | (13) |
Other gain (loss), net | (5) | 18 | (5) | (7) |
Income before income taxes | 400 | 312 | 664 | 625 |
Income tax expense | (156) | (145) | (110) | (308) |
Net income | 244 | 167 | 554 | 317 |
Net income attributable to noncontrolling interests | (5) | (6) | (6) | (6) |
Net income attributable to Hilton Stockholders | $ 239 | $ 161 | $ 548 | $ 311 |
Earnings per share, basic | ||||
Earnings per share, basic | $ 0.24 | $ 0.16 | $ 0.56 | $ 0.32 |
Earnings per share, diluted | ||||
Earnings per share, diluted | 0.24 | 0.16 | 0.55 | 0.31 |
Cash dividends declared per share | $ 0.07 | $ 0 | $ 0.14 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 244 | $ 167 | $ 554 | $ 317 |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustment | (53) | 192 | (40) | (42) |
Pension liability adjustment | 1 | 1 | 2 | 2 |
Cash flow hedge adjustment | 0 | 2 | (6) | (5) |
Total other comprehensive income (loss) | (52) | 195 | (44) | (45) |
Comprehensive income | 192 | 362 | 510 | 272 |
Comprehensive income attributable to noncontrolling interests | (5) | (6) | (4) | (6) |
Comprehensive income attributable to Hilton stockholders | $ 187 | $ 356 | $ 506 | $ 266 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ (12) | $ 121 | $ (15) | $ 30 |
Pension liability adjustment, tax | 0 | 0 | (1) | (1) |
Cash flow hedge adjustment, tax | $ 0 | $ (1) | $ 4 | $ 3 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities: | ||
Net income | $ 554 | $ 317 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 340 | 348 |
Impairment loss | 15 | 0 |
Gain on sales of assets, net | (2) | (142) |
Equity in earnings from unconsolidated affiliates | (11) | (13) |
Loss on foreign currency transactions | 25 | 13 |
Other loss, net | 5 | 7 |
Share-based compensation | 27 | 100 |
Distributions from unconsolidated affiliates | 11 | 20 |
Deferred income taxes | (100) | 10 |
Change in restricted cash and cash equivalents | (6) | (9) |
Working capital changes and other | (203) | (3) |
Net cash provided by operating activities | 655 | 648 |
Investing Activities: | ||
Capital expenditures for property and equipment | (169) | (159) |
Acquisitions, net of cash acquired | 0 | (1,410) |
Payments received on other financing receivables | 1 | 2 |
Issuance of other financing receivables | (18) | (6) |
Investments in affiliates | 0 | 5 |
Distributions from unconsolidated affiliates | 2 | 9 |
Proceeds from asset dispositions | 1 | 1,869 |
Change in restricted cash and cash equivalents | 14 | 0 |
Contract acquisition costs | (18) | (19) |
Capitalized software costs | (35) | (23) |
Net cash provided by (used in) investing activities | (222) | 258 |
Financing Activities: | ||
Borrowings | 0 | 34 |
Repayment of debt | (64) | (961) |
Change in restricted cash and cash equivalents | (32) | (29) |
Dividends paid | (138) | 0 |
Distributions to noncontrolling interests | (4) | (4) |
Excess tax benefits from share-based compensation | 0 | 8 |
Net cash used in financing activities | (238) | (952) |
Effect of exchange rate changes on cash and cash equivalents | 6 | (9) |
Net increase (decrease) in cash and cash equivalents | 201 | (55) |
Cash and cash equivalents, beginning of period | 609 | 566 |
Cash and cash equivalents, end of period | 810 | 511 |
Supplemental Disclosures: | ||
Interest | 225 | 231 |
Income taxes, net of refunds | 242 | 197 |
Conversion of property and equipment to timeshare inventory | (22) | 0 |
Long-term debt assumed (investing activity) | 0 | (450) |
Long-term debt assumed (financing activity) | 0 | 450 |
Capital lease restructuring | $ 0 | $ (24) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [member] | Additional Paid-in Capital [member] | Accumulated Deficit [member] | Accumulated Other Comprehensive Income (Loss) [member] | Noncontrolling Interest [member] |
Balance (shares) at Dec. 31, 2014 | 985,000,000 | |||||
Balance at Dec. 31, 2014 | $ 4,714 | $ 10 | $ 10,028 | $ (4,658) | $ (628) | $ (38) |
Issuance of common stock (shares) | 2,000,000 | |||||
Share-based compensation | 87 | 87 | ||||
Net income | 317 | 311 | 6 | |||
Other comprehensive income (loss), net of tax: | ||||||
Currency translation adjustment | (42) | (42) | 0 | |||
Pension liability adjustment | 2 | 2 | ||||
Cash flow hedge adjustment | (5) | (5) | ||||
Total other comprehensive income (loss) | (45) | (45) | 0 | |||
Distributions | (4) | (4) | ||||
Balance (shares) at Jun. 30, 2015 | 987,000,000 | |||||
Balance at Jun. 30, 2015 | $ 5,069 | $ 10 | 10,115 | (4,347) | (673) | (36) |
Balance (shares) at Dec. 31, 2015 | 987,458,360 | 987,000,000 | ||||
Balance at Dec. 31, 2015 | $ 5,951 | $ 10 | 10,151 | (3,392) | (784) | (34) |
Issuance of common stock (shares) | 3,000,000 | |||||
Share-based compensation | 24 | 24 | ||||
Net income | 554 | 548 | 6 | |||
Other comprehensive income (loss), net of tax: | ||||||
Currency translation adjustment | (40) | (38) | (2) | |||
Pension liability adjustment | 2 | 2 | ||||
Cash flow hedge adjustment | (6) | (6) | ||||
Total other comprehensive income (loss) | (44) | (42) | (2) | |||
Dividends | (140) | (140) | ||||
Cumulative effect of the adoption of ASU 2015-02 | 5 | 5 | ||||
Distributions | $ (4) | (4) | ||||
Balance (shares) at Jun. 30, 2016 | 989,776,458 | 990,000,000 | ||||
Balance at Jun. 30, 2016 | $ 6,346 | $ 10 | $ 10,175 | $ (2,984) | $ (826) | $ (29) |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world based upon the number of hotel rooms and timeshare units. We are engaged in owning, leasing, managing and franchising hotels, resorts and timeshare properties. As of June 30, 2016 , we owned, leased, managed or franchised 4,680 hotel and resort properties, totaling 768,221 rooms in 104 countries and territories, as well as 47 timeshare properties comprising 7,645 units. As of June 30, 2016 , affiliates of The Blackstone Group L.P. ("Blackstone") beneficially owned approximately 45.8 percent of our common stock. Spin-off In June 2016, Hilton Grand Vacations Inc. and Park Hotels & Resorts Inc. filed initial Registration Statements on Form 10 with the U.S. Securities and Exchange Commission ("SEC") in which they disclosed financial and other details of our previously announced spin-off transactions of a substantial portion of our ownership business, consisting primarily of our owned hotels located in the U.S., as well as our timeshare business resulting in two additional publicly traded companies. Completion of the spin-offs is subject to several conditions, including the SEC declaring effective the registration statements and final approval of the transactions by our board of directors. Basis of Presentation The accompanying condensed consolidated financial statements for the three and six months ended June 30, 2016 and 2015 have been prepared in accordance with United States of America ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. Although we believe the disclosures made are adequate to prevent the information presented from being misleading, these financial statements 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, 2015 . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Interim results are not necessarily indicative of full year performance. In our opinion, the accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions have been eliminated in consolidation. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03 ("ASU 2015-03"), Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset, which is consistent with the presentation of debt discounts and premiums. In August 2015, the FASB issued ASU No. 2015-15 ("ASU 2015-15"), Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements ,which clarifies that absent authoritative guidance in ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the staff of the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted ASU 2015-03 and ASU 2015-15 retrospectively as of January 1, 2016. As a result, approximately $94 million of debt issuance costs that were previously presented in other long-term assets as of December 31, 2015 are now included within long-term debt and timeshare debt. We elected to continue presenting the debt issuance costs related to our line-of-credit arrangements within other long-term assets. In February 2015, the FASB issued ASU No. 2015-02 ("ASU 2015-02"), Consolidation (Topic 810) - Amendments to the Consolidation Analysis . This ASU modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. We elected, as permitted by the standard, to adopt ASU 2015-02 using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of January 1, 2016 of approximately $5 million . Additionally, certain consolidated entities that were not previously considered variable interest entities ("VIEs") prior to the adoption of ASU 2015-02 were considered to be VIEs for which we are the primary beneficiary and continue to be consolidated following adoption; prior period VIE disclosures do not include the balances or activity associated with these VIEs. Accounting Standards Not Yet Adopted In March 2016, the FASB issued ASU No. 2016-09 ("ASU 2016-09"), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This ASU is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The provisions of ASU 2016-09 are effective for reporting periods beginning after December 15, 2016; early adoption is permitted. The provisions of this ASU contain specific transition guidance for each amendment. We are currently evaluating the effect that this ASU will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 ("ASU 2016-02"), Leases (Topic 842) , which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position as right-of-use assets and lease liabilities by lessees. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach and are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. We are currently evaluating the effect that this ASU will have on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606) . This ASU supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) , and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Subsequent to ASU 2014-09, the FASB has issued several related ASUs. The provisions of ASU 2014-09 and the related ASUs are to be applied retrospectively or using a modified retrospective approach. We are currently evaluating our method of adoption and the effect that this ASU will have on our consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Acquisitions Disclosure [Abstract] | |
Acquisitions | Acquisitions Tax Deferred Exchange During the six months ended June 30, 2015 , we used proceeds from the sale of the Waldorf Astoria New York (see Note 4 : " Disposals ") to acquire, as part of a tax deferred exchange of real property, the following properties from sellers affiliated with Blackstone and an unrelated third party, for a total purchase price of $1.87 billion : • the resort complex consisting of the Waldorf Astoria Orlando and the Hilton Orlando Bonnet Creek in Orlando, Florida (the "Bonnet Creek Resort"); • the Casa Marina Resort in Key West, Florida; • the Reach Resort in Key West, Florida; • the Parc 55 in San Francisco, California; and • the Juniper Hotel Cupertino in Cupertino, California. We incurred transaction costs of $7 million and $26 million recognized in other gain (loss), net in our condensed consolidated statements of operations for the three and six months ended June 30, 2015 , respectively. The results of operations from these properties included in the condensed consolidated statements of operations were as follows: Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 (in millions) Total revenues $ 89 $ 144 Income before income taxes 19 34 |
Disposals
Disposals | 6 Months Ended |
Jun. 30, 2016 | |
Disposals [Abstract] | |
Disposals | Disposals In February 2015, we completed the sale of the Waldorf Astoria New York for a purchase price of $1.95 billion , and we repaid in full the existing mortgage loan secured by the Waldorf Astoria New York property (the "Waldorf Astoria Loan") of approximately $525 million . As a result of the sale, we recognized a gain of $144 million included in gain (loss) on sales of assets, net in our condensed consolidated statement of operations for the six months ended June 30, 2015 . The gain was net of transaction costs and a goodwill reduction of $185 million . The goodwill reduction was due to our consideration of the Waldorf Astoria New York property as a business within our ownership segment; therefore, we reduced the carrying amount of our goodwill by the amount representing the fair value of the business disposed relative to the fair value of the portion of our ownership reporting unit goodwill that was retained. Additionally, we recognized a loss of $6 million in other gain (loss), net in our condensed consolidated statement of operations for the six months ended June 30, 2015 related to the reduction of the Waldorf Astoria Loan's remaining carrying amount of debt issuance costs. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment were as follows: June 30, December 31, 2016 2015 (in millions) Land $ 3,473 $ 3,486 Buildings and leasehold improvements 6,476 6,410 Furniture and equipment 1,321 1,263 Construction-in-progress 137 80 11,407 11,239 Accumulated depreciation (2,300 ) (2,120 ) $ 9,107 $ 9,119 Depreciation of property and equipment, including assets recorded for capital lease assets, was $90 million and $89 million during the three months ended June 30, 2016 and 2015 , respectively, and $177 million and $172 million during the six months ended June 30, 2016 and 2015 , respectively. As of June 30, 2016 and December 31, 2015 , property and equipment included approximately $155 million and $144 million , respectively, of capital lease assets primarily consisting of buildings and leasehold improvements, net of $82 million and $71 million , respectively, of accumulated depreciation. |
Financing Receivables
Financing Receivables | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Financing Receivables | Financing Receivables Financing receivables were as follows: June 30, 2016 Securitized Timeshare Unsecuritized Timeshare (1) Other Total (in millions) Financing receivables $ 254 $ 699 $ 51 $ 1,004 Less: allowance for loan loss (11 ) (88 ) — (99 ) 243 611 51 905 Current portion of financing receivables 53 87 2 142 Less: allowance for loan loss (2 ) (11 ) — (13 ) 51 76 2 129 Total financing receivables $ 294 $ 687 $ 53 $ 1,034 December 31, 2015 Securitized Timeshare Unsecuritized Timeshare (1) Other Total (in millions) Financing receivables $ 309 $ 632 $ 39 $ 980 Less: allowance for loan loss (14 ) (79 ) — (93 ) 295 553 39 887 Current portion of financing receivables 58 83 1 142 Less: allowance for loan loss (3 ) (10 ) — (13 ) 55 73 1 129 Total financing receivables $ 350 $ 626 $ 40 $ 1,016 ____________ (1) Included in this balance, we had $164 million and $163 million of gross timeshare financing receivables securing our revolving non-recourse timeshare financing receivables credit facility (the "Timeshare Facility"), as of June 30, 2016 and December 31, 2015 , respectively. Timeshare Financing Receivables As of June 30, 2016 , our timeshare financing receivables had interest rates ranging from 5.15 percent to 20.50 percent , a weighted average interest rate of 11.88 percent , a weighted average remaining term of 7.7 years and maturities through 2026 . Our timeshare financing receivables as of June 30, 2016 mature as follows: Securitized Timeshare Unsecuritized Timeshare Year (in millions) 2016 (remaining) $ 26 $ 51 2017 54 74 2018 53 78 2019 50 80 2020 45 83 Thereafter 79 420 307 786 Less: allowance for loan loss (13 ) (99 ) $ 294 $ 687 As of June 30, 2016 and December 31, 2015 , we had ceased accruing interest on timeshare financing receivables with an aggregate principal balance of $34 million and $32 million , respectively. The following table details an aged analysis of our gross timeshare financing receivables balance: June 30, December 31, 2016 2015 (in millions) Current $ 1,046 $ 1,035 30 - 89 days past due 13 15 90 - 119 days past due 4 4 120 days and greater past due 30 28 $ 1,093 $ 1,082 The changes in our allowance for loan loss were as follows: Six Months Ended June 30, 2016 2015 (in millions) Beginning balance $ 106 $ 96 Write-offs (17 ) (15 ) Provision for loan loss 23 17 Ending balance $ 112 $ 98 |
Investments in Affiliates
Investments in Affiliates | 6 Months Ended |
Jun. 30, 2016 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Investments in Affiliates | Investments in Affiliates Investments in affiliates were as follows: June 30, December 31, 2016 2015 (in millions) Equity investments $ 120 $ 129 Other investments 9 9 $ 129 $ 138 We maintain investments in affiliates accounted for under the equity method, which are primarily investments in entities that owned or leased 15 and 16 hotels as of June 30, 2016 and December 31, 2015 , respectively. These entities had total debt of approximately $956 million and $959 million as of June 30, 2016 and December 31, 2015 , respectively. Substantially all of the debt is secured solely by the affiliates' assets or is guaranteed by other partners without recourse to us. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 6 Months Ended |
Jun. 30, 2016 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of June 30, 2016 , we consolidated nine VIEs: six that own or lease hotel properties; two that are associated with our timeshare financing receivables securitization transactions that both issued debt (collectively, the "Securitized Timeshare Debt"); and one management company. As of December 31, 2015 and prior to adoption of ASU 2015-02, we consolidated three VIEs that owned or leased hotel properties and two that issued our securitized timeshare debt. Of the four additional entities considered to be VIEs following the adoption of ASU 2015-02, two were previously consolidated by us and two were unconsolidated investments in affiliates. We are the primary beneficiaries of these VIEs as we have the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our VIEs are only available to settle the obligations of these entities. As of June 30, 2016 and December 31, 2015 , our condensed consolidated balance sheets included the assets and liabilities of the nine and five VIEs, respectively, which primarily comprised the following: June 30, December 31, 2016 2015 (in millions) Cash and cash equivalents $ 68 $ 46 Restricted cash and cash equivalents 23 15 Accounts receivable, net 18 19 Property and equipment, net 264 72 Financing receivables, net 294 350 Deferred income tax assets 68 62 Other non-current assets 61 52 Accounts payable, accrued expenses and other 49 35 Long-term debt 391 219 Timeshare debt 295 353 During the six months ended June 30, 2016 and 2015 , we did not provide any financial or other support to any VIEs that we were not previously contractually required to provide, nor do we intend to provide such support in the future. In June 2015, one of our consolidated VIEs modified the terms of its capital lease, resulting in a reduction in long-term debt of $24 million . This amount was recognized as a gain in other gain (loss), net in our condensed consolidated statements of operations during the three and six months ended June 30, 2015 , as the leased asset had previously been fully impaired. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term Debt Long-term debt balances, including obligations for capital leases, and associated interest rates as of June 30, 2016 , were as follows: June 30, December 31, 2016 2015 (in millions) Senior secured term loan facility with a rate of 3.50%, due 2020 $ 4,225 $ 4,225 Senior notes with a rate of 5.625%, due 2021 1,500 1,500 Commercial mortgage-backed securities loan with an average rate of 4.15%, due 2018 (1) 3,418 3,418 Mortgage loans and other property debt with an average rate of 4.22%, due 2016 to 2022 (2) 622 616 Other unsecured notes with a rate of 7.50%, due 2017 54 54 Capital lease obligations with an average rate of 6.38%, due 2018 to 2097 274 245 10,093 10,058 Less: current maturities of long-term debt (3) (98 ) (94 ) Less: unamortized deferred financing costs and discount (95 ) (107 ) $ 9,900 $ 9,857 ____________ (1) The current maturity date of the variable-rate component of this borrowing is November 1, 2016. We assumed all extensions, which are solely at our option, were exercised. (2) For mortgage loans with maturity date extensions that are solely at our option, we assumed they were exercised. (3) Net of unamortized deferred financing costs expected to be amortized in the next twelve months. As of June 30, 2016 , we had $45 million of letters of credit outstanding under our $1.0 billion senior secured revolving credit facility (the "Revolving Credit Facility"), and a borrowing capacity of $955 million . In February 2015, we repaid the $525 million Waldorf Astoria Loan concurrent with the sale of the Waldorf Astoria New York. See Note 4 : " Disposals " for further information on the transaction. We also assumed a $450 million mortgage loan secured by the Bonnet Creek Resort (the "Bonnet Creek Loan") as a result of an acquisition. See Note 3 : " Acquisitions " for further information on the transaction. Our commercial mortgage-backed securities loan secured by 22 of our U.S. owned real estate assets (the "CMBS Loan") and other mortgage loans require us to deposit with the lenders certain cash reserves for restricted uses. As of June 30, 2016 and December 31, 2015 , our condensed consolidated balance sheets included $80 million and $49 million , respectively, of restricted cash and cash equivalents related to these loans. Timeshare Debt Timeshare debt, and associated interest rates as of June 30, 2016 , were as follows: June 30, December 31, 2016 2015 (in millions) Timeshare Facility with a rate of 1.44%, due 2017 $ 150 $ 150 Securitized Timeshare Debt with an average rate of 1.97%, due 2026 298 356 448 506 Less: current maturities of timeshare debt (1) (88 ) (110 ) Less: unamortized deferred financing costs (3 ) (4 ) $ 357 $ 392 ____________ (1) Net of unamortized deferred financing costs expected to be amortized in the next twelve months. We are required to deposit payments received from customers on the pledged timeshare financing receivables and securitized timeshare financing receivables related to the Timeshare Facility and Securitized Timeshare Debt, respectively, into a depository account maintained by a third party. On a monthly basis, the depository account will be used to make any required principal, interest and other payments due with respect to the Timeshare Facility and Securitized Timeshare Debt. The balance in the depository account, totaling $17 million as of June 30, 2016 and December 31, 2015 , was included in restricted cash and cash equivalents in our condensed consolidated balance sheets. Debt Maturities The contractual maturities of our debt as of June 30, 2016 were as follows: Long-term Debt Timeshare Debt Year (in millions) 2016 (remaining) $ 112 $ 48 2017 71 225 2018 (1) 3,451 52 2019 (1) 445 38 2020 4,255 28 Thereafter (1) 1,759 57 $ 10,093 $ 448 ____________ (1) We assumed all extensions that are solely at our option for purposes of calculating maturity dates. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities During the six months ended June 30, 2016 and 2015 , derivatives were used to hedge the interest rate risk associated with variable-rate debt as required by certain loan agreements, as well as foreign exchange risk associated with certain foreign currency denominated cash balances. Cash Flow Hedges As of June 30, 2016 , we held four interest rate swaps with an aggregate notional amount of $1.45 billion , which swap three-month LIBOR on the senior secured term loan facility (the "Term Loans") to a fixed rate of 1.87 percent and expire in October 2018. We elected to designate these interest rate swaps as cash flow hedges for accounting purposes. Non-designated Hedges As of June 30, 2016 , we also held one interest rate cap in the notional amount of $862 million , for the variable-rate component of the CMBS Loan, that expires in November 2016 and caps one-month LIBOR at 6.9 percent , and one interest rate cap in the notional amount of $337 million that expires in May 2017 and caps one-month LIBOR at 3.0 percent on the Bonnet Creek Loan. We did not elect to designate any of these interest rate caps as hedging instruments. As of June 30, 2016 , we held 63 short-term foreign exchange forward contracts with an aggregate notional amount of $340 million to offset exposure to fluctuations in our foreign currency denominated cash balances. We elected not to designate these foreign exchange forwar d contracts as hedging instruments. Fair Value of Derivative Instruments The effects of our derivative instruments on our condensed consolidated balance sheets were as follows: Fair Value June 30, December 31, Balance Sheet Classification 2016 2015 (in millions) Cash Flow Hedges: Interest rate swaps Other liabilities $ 25 $ 15 Non-designated Hedges: Interest rate caps (1) Other assets — — Forward contracts Other assets 7 1 Forward contracts Accounts payable, accrued expenses and other 3 1 ____________ (1) The fair values of our interest rate caps were less than $1 million as of June 30, 2016 and December 31, 2015 . Earnings Effect of Derivative Instruments The effects of our derivative instruments on our condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (loss) before any effect for income taxes were as follows: Three Months Ended June 30, Six Months Ended June 30, Classification of Gain (Loss) Recognized 2016 2015 2016 2015 (in millions) Cash Flow Hedges: Interest rate swaps (1) Other comprehensive income (loss) $ — $ 3 $ (10 ) $ (8 ) Non-designated Hedges: Forward contracts Gain (loss) on foreign currency transactions 2 8 3 6 ____________ (1) There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three and six months ended June 30, 2016 and 2015 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair value of certain financial instruments and the hierarchy level we used to estimate fair values are shown below: June 30, 2016 Hierarchy Level Carrying Amount Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 488 $ — $ 488 $ — Restricted cash equivalents 20 — 20 — Timeshare financing receivables (1) 981 — — 1,092 Liabilities: Long-term debt (2)(3) 9,685 1,616 — 8,290 Timeshare debt (3) 445 — — 448 Interest rate swaps 25 — 25 — December 31, 2015 Hierarchy Level Carrying Amount Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 327 $ — $ 327 $ — Restricted cash equivalents 18 — 18 — Timeshare financing receivables (1) 976 — — 1,080 Liabilities: Long-term debt (2)(3) 9,673 1,619 — 8,267 Timeshare debt (3) 502 — — 506 Interest rate swaps 15 — 15 — ____________ (1) Carrying amount includes allowance for loan loss. (2) Excludes capital lease obligations with a carrying value of $274 million and $245 million as of June 30, 2016 and December 31, 2015 , respectively, and debt of consolidated VIEs with a carrying value of $39 million and $32 million , respectively. (3) Carrying amount includes unamortized deferred financing costs and discount. The fair values of financial instruments not included in this table are estimated to be equal to their carrying amounts as of June 30, 2016 and December 31, 2015 . Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. Cash equivalents and restricted cash equivalents primarily consisted of short-term interest-bearing money market funds with maturities of less than 90 days, time deposits and commercial paper. The estimated fair values were based on available market pricing information of similar financial instruments. The estimated fair values of our timeshare financing receivables were based on the expected future cash flows discounted at weighted-average interest rates of the current portfolio, which reflect the risk of the underlying notes, primarily determined by the creditworthiness of the borrowers. The estimated fair values of our Level 1 long-term debt were based on prices in active debt markets. The estimated fair values of our Level 3 long-term debt were based on indicative quotes received for similar issuances, the expected future cash flows discounted at risk-adjusted rates or the carrying value, where the interest rates approximated current market rates. The estimated fair values of our Level 3 timeshare debt were based on the carrying values, excluding unamortized deferred financing costs, as the interest rates approximated current market rates. We measure our interest rate swaps at fair value, which were estimated using an income approach. The primary inputs into our fair value estimate include interest rates and yield curves based on observable market inputs of similar instruments. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At the end of each quarter we estimate the effective tax rate expected to be applied for the full year. The effective income tax rate is determined by the level and composition of pre-tax income or loss, which is subject to federal, foreign, state and local income taxes. The lower effective tax rate, as compared to our statutory tax rate, for the six months ended June 30, 2016 , was primarily attributable to changes in our uncertain tax positions. Our total unrecognized tax benefits as of June 30, 2016 and December 31, 2015 were $252 million and $407 million , respectively. During the six months ended June 30, 2016 , we released $218 million of reserves related to unrecognized tax benefits that we have either settled or determined that we are more likely than not to receive the full benefit for. In April 2014, we received 30-day Letters from the Internal Revenue Service ("IRS") and the Revenue Agents Report ("RAR") for the 2006 and October 2007 tax years. We disagreed with several of the proposed adjustments in the RAR, filed a formal appeals protest with the IRS and did not make any tax payments related to this audit. The issues being protested in appeals relate to assertions by the IRS that: (1) certain foreign currency denominated intercompany loans from our foreign subsidiaries to certain U.S. subsidiaries should be recharacterized as equity for U.S. federal income tax purposes and constitute deemed dividends from such foreign subsidiaries to our U.S. subsidiaries; (2) in calculating the amount of U.S. taxable income resulting from our Hilton HHonors guest loyalty program, we should not reduce gross income by the estimated costs of future redemptions, but rather such costs would be deductible at the time the points are redeemed; and (3) certain foreign currency denominated loans issued by one of our Luxembourg subsidiaries whose functional currency is U.S. dollar ("USD"), should instead be treated as issued by one of our Belgian subsidiaries whose functional currency is the euro, and thus foreign currency gains and losses with respect to such loans should have been measured in euros, instead of USD. Additionally, in January 2016, we received a 30-day Letter from the IRS and the RAR for the December 2007 through 2010 tax years. The RAR includes the proposed adjustments for tax years December 2007 through 2010 which reflect the carryover effect of the three protested issues from 2006 through October 2007. These proposed adjustments will also be protested in appeals and formal appeals protests have been submitted. In total, the proposed adjustments sought by the IRS would result in additional U.S. federal tax owed of approximately $874 million , excluding interest and penalties and potential state income taxes. The portion of this amount related to our Hilton HHonors guest loyalty program would result in a decrease to our future tax liability when the points are redeemed. We disagree with the IRS's position on each of these assertions and intend to vigorously contest them. However, as a result of recent developments related to the appeals process discussions that have taken place during 2016, we have determined based on on-going discussions with the IRS, it is more likely than not that we will not recognize the full benefit related to certain of the issues being appealed. Accordingly, as of June 30, 2016 , we have recognized a $46 million unrecognized tax benefit. We recognize interest and penalties accrued related to uncertain tax positions in income tax expense. We had accrued approximately $27 million for the payment of interest and penalties as of June 30, 2016 and December 31, 2015 . As a result of the expected resolution of examination issues with federal, state and foreign tax authorities, we believe it is reasonably possible that during the next 12 months the amount of unrecognized tax benefits will decrease up to $1 million . Included in the balance of unrecognized tax benefits as of June 30, 2016 and December 31, 2015 were $209 million and $377 million , respectively, associated with positions that, if favorably resolved, would provide a benefit to our effective tax rate. We file income tax returns, including returns for our subsidiaries, with federal, state and foreign jurisdictions. We are under regular and recurring audit by the IRS and other taxing authorities on open tax positions. The timing of the resolution of tax audits is highly uncertain, as are the amounts, if any, that may ultimately be paid upon such resolution. Changes may result from the conclusion of ongoing audits, appeals or litigation in state, local, federal and foreign tax jurisdictions or from the resolution of various proceedings between the U.S. and foreign tax authorities. We are no longer subject to U.S. federal income tax examination for years through 2004. As of June 30, 2016 , we remain subject to federal examinations from 2005-2014, state examinations from 1999-2014 and foreign examinations of our income tax returns for the years 1996 through 2015. State income tax returns are generally subject to examination for a period of three to five years after filing the respective return; however, the state effect of any federal tax return changes remains subject to examination by various states for a period generally of up to one year after formal notification to the states. The statute of limitations for the foreign jurisdictions generally ranges from three to ten years after filing the respective tax return. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor multiple domestic and international employee benefit plans. Benefits are based upon years of service and compensation. We have a noncontributory retirement plan in the U.S., which covers certain employees not earning union benefits. This plan was frozen for participant benefit accruals in 1996. We also have multiple employee benefit plans that cover many of our international employees. These include a plan that covers workers in the United Kingdom, which was frozen to further accruals in November 2013, and a number of smaller plans that cover workers in various other countries around the world. The net periodic pension cost for our employee benefit plans was $2 million and $3 million for the three months ended June 30, 2016 and 2015 , respectively, and $3 million and $6 million for the six months ended June 30, 2016 and 2015 , respectively. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We issue time-vesting restricted stock units ("RSUs"), nonqualified stock options ("options"), performance-vesting restricted stock units and restricted stock (collectively, "performance shares") and deferred share units ("DSUs"). We recognized share-based compensation expense of $26 million and $91 million during the three months ended June 30, 2016 and 2015 , respectively, and $44 million and $121 million during the six months ended June 30, 2016 and 2015 , respectively, which included amounts reimbursed by hotel owners. Share-based compensation expense for the three and six months ended June 30, 2015 included $64 million of compensation expense that was recognized when certain remaining awards granted in connection with our initial public offering vested in May 2015. As of June 30, 2016 , unrecognized compensation costs for unvested awards was approximate ly $143 million , which is expected to be recognized over a weighted-average period of 2.0 years on a straight-line basis. As of June 30, 2016 , there were 62,117,847 sha res of common stock available for future issuance. RSUs During the six months ended June 30, 2016 , we issued 3,508,885 RSUs with a weighted average grant date fair value of $19.91 , which generally vest in equal annual installments over two or three years from the date of grant. Options During the six months ended June 30, 2016 , we issued 1,509,451 options with an exercise price of $19.61 , which vest over three years from the date of grant and terminate 10 years from the date of grant or earlier if the individual’s service terminates in certain circumstances. The grant date fair value of these options was $5.47 , which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility (1) 32.00 % Dividend yield (2) 1.43 % Risk-free rate (3) 1.36 % Expected term (in years) (4) 6.0 ____________ (1) Due to limited trading history of our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption in addition to our historical and implied volatility. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) Estimated based on the expected annualized dividend payment. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. As of June 30, 2016 , 885,644 option s outstanding were exercisable. Performance Shares During the six months ended June 30, 2016 , we issued 1,804,706 performance shares. The performance shares are settled at the end of the three -year performance period with 50 percent of the shares subject to achievement based on a measure of the Company’s total shareholder return relative to the total shareholder returns of members of a peer company group ("relative shareholder return") and the other 50 percent of the shares subject to achievement based on the Company’s earnings before interest expense, taxes and depreciation and amortization ("EBITDA") compound annual growth rate ("EBITDA CAGR"). The grant date fair value of these performance shares based on relative shareholder return was $20.81 , which was determined using a Monte Carlo simulation valuation model with the following assumptions: Expected volatility (1) 31.00 % Dividend yield (2) — % Risk-free rate (3) 0.92 % Expected term (in years) (4) 2.8 ____________ (1) Due to limited trading history of our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption in addition to our historical and implied volatility. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) As dividends are assumed to be reinvested in shares of common stock and dividends will not be paid to the participants of the performance shares unless the shares vest, we utilized a dividend yield of zero percent. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Midpoint of the 30-calendar day period preceding the end of the performance period. The grant date fair value of these performance shares based on our EBITDA CAGR was $19.61 . For these shares, we determined that the performance condition is probable of achievement and as of June 30, 2016 , we recognized compensation expense based on the anticipated achievement percentage as follows: Achievement Percentage 2014 grants 125% 2015 grants 88% 2016 grants 63% DSUs During the six months ended June 30, 2016 , we issued to our independent directors 34,099 DSUs with a grant date fair value of $22.04 , which are fully vested and non-forfeitable on the grant date. DSUs are settled for shares of our common stock and deliverable upon the earlier of termination of the individual's service on our board of directors or a change in control. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the calculation of basic and diluted earnings per share ("EPS"): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions, except per share amounts) Basic EPS: Numerator: Net income attributable to Hilton stockholders $ 239 $ 161 $ 548 $ 311 Denominator: Weighted average shares outstanding 988 987 988 986 Basic EPS $ 0.24 $ 0.16 $ 0.56 $ 0.32 Diluted EPS: Numerator: Net income attributable to Hilton stockholders $ 239 $ 161 $ 548 $ 311 Denominator: Weighted average shares outstanding 991 989 990 989 Diluted EPS $ 0.24 $ 0.16 $ 0.55 $ 0.31 Approximately 3 million and 4 million share-based compensation awards were excluded from the computation of diluted EPS for the three and six months ended June 30, 2016 , respectively, and 2 million and 1 million awards were excluded for the three and six months ended June 30, 2015 , respectively, because their effect would have been anti-dilutive under the treasury stock method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2015 $ (580 ) $ (194 ) $ (10 ) $ (784 ) Other comprehensive loss before reclassifications (37 ) (1 ) (6 ) (44 ) Amounts reclassified from accumulated other comprehensive loss (1 ) 3 — 2 Net current period other comprehensive income (loss) (38 ) 2 (6 ) (42 ) Balance as of June 30, 2016 $ (618 ) $ (192 ) $ (16 ) $ (826 ) Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2014 $ (446 ) $ (179 ) $ (3 ) $ (628 ) Other comprehensive loss before reclassifications (42 ) (2 ) (5 ) (49 ) Amounts reclassified from accumulated other comprehensive loss — 4 — 4 Net current period other comprehensive income (loss) (42 ) 2 (5 ) (45 ) Balance as of June 30, 2015 $ (488 ) $ (177 ) $ (8 ) $ (673 ) ____________ (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. The following table presents additional information about reclassifications out of accumulated other comprehensive loss; amounts in parentheses indicate a loss in our condensed consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions) Currency translation adjustment: Gains on net investment hedges (1) 1 — 1 — Tax benefit (2)(3) — — — — Total currency translation adjustment reclassifications for the period, net of taxes 1 — 1 — Pension liability adjustment: Amortization of prior service cost (4) $ (1 ) $ (1 ) $ (2 ) $ (2 ) Amortization of net loss (4) (2 ) (2 ) (3 ) (4 ) Tax benefit (2) 1 1 2 2 Total pension liability adjustment reclassifications for the period, net of taxes (2 ) (2 ) (3 ) (4 ) Total reclassifications for the period, net of tax $ (1 ) $ (2 ) $ (2 ) $ (4 ) ____________ (1) Reclassified out of accumulated other comprehensive loss to other gain (loss), net in our condensed consolidated statements of operations. (2) Reclassified out of accumulated other comprehensive loss to income tax expense in our condensed consolidated statements of operations. (3) The tax benefit was less than $1 million for the three and six months ended June 30, 2016 . (4) Reclassified out of accumulated other comprehensive loss to general, administrative and other in our condensed consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We are a diversified hospitality company with operations organized in three distinct operating segments: ownership; management and franchise; and timeshare. Each segment is managed separately because of its distinct economic characteristics. The ownership segment included 143 properties totaling 57,996 rooms, comprising 121 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, six hotels owned or leased by consolidated VIEs and 15 hotels that are owned or leased by unconsolidated investments in affiliates, as of June 30, 2016 . While we do not include equity in earnings (losses) from unconsolidated affiliates in our measures of segment revenues, we manage these investments in our ownership segment and the results are included in our measure of segment profit. The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels operated or managed by someone other than us. As of June 30, 2016 , this segment included 537 managed hotels and 4,000 franchised hotels totaling 4,537 hotels consisting of 710,225 rooms. This segment also earns fees for managing properties in our ownership and timeshare segments. The timeshare segment includes the development of vacation ownership clubs and resorts, marketing and selling of timeshare intervals, providing timeshare customer financing and resort operations. This segment also provides assistance to third-party developers in selling their timeshare inventory. As of June 30, 2016 , this segment included 47 timeshare properties totaling 7,645 units. Corporate and other represents revenues and related operating expenses generated by the incidental support of hotel operations for owned, leased, managed and franchised hotels and other rental income, as well as corporate assets and related expenditures. The performance of our operating segments is evaluated primarily based on Adjusted EBITDA. We define Adjusted EBITDA as EBITDA, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) asset dispositions for both consolidated and unconsolidated investments; (ii) foreign currency transactions; (iii) debt restructurings/retirements; (iv) non-cash impairment losses; (v) furniture, fixtures and equipment ("FF&E") replacement reserves required under certain lease agreements; (vi) reorganization costs; (vii) share-based compensation expense; (viii) severance, relocation and other expenses; and (ix) other items. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions) Revenues Ownership $ 1,114 $ 1,141 $ 2,088 $ 2,105 Management and franchise 471 434 880 825 Timeshare 336 319 662 640 Segment revenues 1,921 1,894 3,630 3,570 Other revenues from managed and franchised properties 1,166 1,061 2,237 2,011 Other revenues 23 21 45 42 Intersegment fees elimination (1) (59 ) (54 ) (111 ) (102 ) Total revenues $ 3,051 $ 2,922 $ 5,801 $ 5,521 ____________ (1) Included the following intercompany charges that were eliminated in our condensed consolidated financial statements: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions) Rental and other fees (a) $ 7 $ 5 $ 13 $ 11 Management, royalty and intellectual property fees (b) 38 36 71 66 Licensing fee (c) 11 11 21 20 Laundry services (d) 1 1 3 3 Other (e) 2 1 3 2 Intersegment fees elimination $ 59 $ 54 $ 111 $ 102 ____________ (a) Represents charges to our timeshare segment by our ownership segment. (b) Represents fees charged to our ownership segment by our management and franchise segment. (c) Represents fees charged to our timeshare segment by our management and franchise segment. (d) Represents charges to our ownership segment for services provided by our wholly owned laundry business. Revenues from our laundry business are included in other revenues. (e) Represents other intercompany charges, which are a benefit to the ownership segment and a cost to corporate and other. The table below provides a reconciliation of segment Adjusted EBITDA to consolidated net income: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions) Ownership (1)(2) $ 299 $ 318 $ 506 $ 508 Management and franchise (2) 471 434 880 825 Timeshare (2) 98 86 193 160 Segment Adjusted EBITDA 868 838 1,579 1,493 Corporate and other (2) (62 ) (61 ) (120 ) (117 ) Interest expense (147 ) (149 ) (286 ) (293 ) Income tax expense (156 ) (145 ) (110 ) (308 ) Depreciation and amortization (171 ) (173 ) (340 ) (348 ) Interest expense, income tax and depreciation and amortization included in equity in earnings from unconsolidated affiliates (7 ) (7 ) (15 ) (14 ) Gain (loss) on sales of assets, net 2 (3 ) 2 142 Gain (loss) on foreign currency transactions (13 ) 5 (25 ) (13 ) FF&E replacement reserve (16 ) (14 ) (29 ) (27 ) Share-based compensation expense (26 ) (92 ) (44 ) (122 ) Impairment loss — — (15 ) — Other gain (loss), net (5 ) 18 (5 ) (7 ) Other adjustment items (23 ) (50 ) (38 ) (69 ) Net income $ 244 $ 167 $ 554 $ 317 ____________ (1) Includes unconsolidated affiliate Adjusted EBITDA. (2) Our measures of Adjusted EBITDA included intercompany charges that were eliminated in our condensed consolidated financial statements. Refer to the footnote to the segment revenues table above for the detail of the intercompany charges. The following table presents total assets for our reportable segments, reconciled to consolidated amounts: June 30, December 31, 2016 2015 (in millions) Ownership $ 11,346 $ 11,269 Management and franchise 10,327 10,392 Timeshare 2,067 1,935 Corporate and other 2,113 2,026 $ 25,853 $ 25,622 The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts: Six Months Ended June 30, 2016 2015 (in millions) Ownership $ 153 $ 148 Timeshare 11 5 Corporate and other 5 6 $ 169 $ 159 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies As of June 30, 2016 , we had outstanding guarantees of $25 million , with remaining terms ranging from four years to seven years , for debt and other obligations of third parties. We have one letter of credit for $25 million that has been pledged as collateral for one of these guarantees. Although we believe it is unlikely that material payments will be required under these guarantees or letters of credit, there can be no assurance that this will be the case. We have also provided performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees allow us to terminate the contract, rather than fund shortfalls, if specified performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of June 30, 2016 , we had seven contracts containing performance guarantees, with expirations ranging from 2019 to 2030 , and possible cash outlays totaling approximately $89 million . Our obligations in future periods depend on the operating performance levels of these hotels over the remaining terms of the performance guarantees. We do not have any letters of credit pledged as collateral against these guarantees. As of June 30, 2016 and December 31, 2015 , we recorded current liabilities of approximately $8 million and non-current liabilities of approximately $22 million and $25 million , respectively, in our condensed consolidated balance sheets for outstanding performance guarantees that are related to certain VIEs for which we are not the primary beneficiary. As of June 30, 2016 , we had outstanding commitments under third-party contracts of approximately $84 million for capital expenditures at certain owned and leased properties. Our contracts contain clauses that allow us to cancel all or some portion of the work. If cancellation of a contract occurs, our commitment would be any costs incurred up to the cancellation date, in addition to any costs associated with the discharge of the contract. We have entered into an agreement with an affiliate of the owner of a hotel whereby we have agreed to provide a $60 million junior mezzanine loan to finance the construction of a new hotel that we will manage. The junior mezzanine loan will be subordinated to a senior mortgage loan and senior mezzanine loan provided by third parties unaffiliated with us and will be funded on a pro rata basis with these loans as the construction costs are incurred. During the six months ended June 30, 2016 and 2015 , we funded $17 million and $6 million of this commitment, respectively, and we currently expect to fund the remainder of our commitment as follows: $21 million in the remainder of 2016 and $5 million in 2017. We have entered into certain arrangements with developers whereby we have committed to purchase timeshare units at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of June 30, 2016 , we are committed to purchase approximately $195 million of inventory over a period of four years. The ultimate amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. During the six months ended June 30, 2016 and 2015 , we purchased $11 million and $17 million , respectively, of inventory as required under our commitments. As of June 30, 2016 , our remaining contractual obligations pursuant to these arrangements was expected to be incurred as follows: $5 million in the remainder of 2016; $8 million in 2017; zero in 2018; and $182 million in 2019. In 2010, an affiliate of Blackstone settled a $75 million liability on our behalf in conjunction with a lawsuit settlement by entering into service contracts with the plaintiff. As part of the settlement, we entered into a guarantee with the plaintiff to pay any shortfall that this affiliate does not fund related to those service contracts up to the value of the settlement amount made by the affiliate. The remaining potential exposure as of June 30, 2016 was approximately $17 million . We have not accrued a liability for this guarantee as we believe the likelihood of any material funding to be remote. We are involved in other litigation arising in the normal course of business, some of which includes claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of June 30, 2016 will not have a material effect on our condensed consolidated results of operations, financial position or cash flows. |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor Financial Information | 6 Months Ended |
Jun. 30, 2016 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |
Condensed Consolidating Guarantor Financial Information | Condensed Consolidating Guarantor Financial Information In October 2013, Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (the "Subsidiary Issuers"), entities formed in August 2013 that are 100 percent owned by the Parent, issued $1.5 billion of 5.625% senior notes due in 2021 (the "Senior Notes"). The obligations of the Subsidiary Issuers are guaranteed jointly and severally on a senior unsecured basis by the Parent and certain of the Parent's 100 percent owned domestic restricted subsidiaries (the "Guarantors"). The indenture that governs the Senior Notes provides that any subsidiary of the Company that provides a guarantee of a senior secured credit facility consisting of the Revolving Credit Facility and the Term Loans (the "Senior Secured Credit Facility") will guarantee the Senior Notes. None of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations; our non-wholly owned subsidiaries; our subsidiaries that secure the CMBS Loan and $448 million in mortgage loans; or certain of our special purpose subsidiaries formed in connection with our Timeshare Facility and Securitized Timeshare Debt guarantee the Senior Notes (collectively, the "Non-Guarantors"). The guarantees are full and unconditional, subject to certain customary release provisions. The indenture that governs the Senior Notes provides that any Guarantor may be released from its guarantee so long as: (a) the subsidiary is sold or sells all of its assets; (b) the subsidiary is released from its guaranty under the Senior Secured Credit Facility; (c) the subsidiary is declared "unrestricted" for covenant purposes; or (d) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied. The following schedules present the condensed consolidating financial information as of June 30, 2016 and December 31, 2015 , and for the three and six months ended June 30, 2016 and 2015 , for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors. June 30, 2016 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 294 $ 516 $ — $ 810 Restricted cash and cash equivalents — — 154 117 — 271 Accounts receivable, net — — 598 407 — 1,005 Intercompany receivables — — 67 — (67 ) — Inventories — — 437 22 — 459 Current portion of financing receivables, net — — 59 70 — 129 Prepaid expenses — — 80 112 (6 ) 186 Income taxes receivable — — 18 — — 18 Other — — 9 43 — 52 Total current assets — — 1,716 1,287 (73 ) 2,930 Property, Intangibles and Other Assets: Property and equipment, net — — 356 8,772 (21 ) 9,107 Financing receivables, net — — 522 383 — 905 Investments in affiliates — — 82 47 — 129 Investments in subsidiaries 6,364 12,069 5,260 — (23,693 ) — Goodwill — — 3,851 2,011 — 5,862 Brands — — 4,405 506 — 4,911 Management and franchise contracts, net — — 820 257 — 1,077 Other intangible assets, net — — 378 165 — 543 Deferred income tax assets 11 6 — 76 (17 ) 76 Other — 8 187 118 — 313 Total property, intangibles and other assets 6,375 12,083 15,861 12,335 (23,731 ) 22,923 TOTAL ASSETS $ 6,375 $ 12,083 $ 17,577 $ 13,622 $ (23,804 ) $ 25,853 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 39 $ 1,647 $ 690 $ (6 ) $ 2,370 Intercompany payables — — — 74 (74 ) — Current maturities of long-term debt — (12 ) — 110 — 98 Current maturities of timeshare debt — — — 88 — 88 Income taxes payable — — 70 37 — 107 Total current liabilities — 27 1,717 999 (80 ) 2,663 Long-term debt — 5,666 55 4,179 — 9,900 Timeshare debt — — — 357 — 357 Deferred revenues — — 160 1 — 161 Deferred income tax liabilities — — 1,953 2,597 (17 ) 4,533 Liability for guest loyalty program — — 833 — — 833 Other — 26 790 244 — 1,060 Total liabilities — 5,719 5,508 8,377 (97 ) 19,507 Equity: Total Hilton stockholders' equity 6,375 6,364 12,069 5,274 (23,707 ) 6,375 Noncontrolling interests — — — (29 ) — (29 ) Total equity 6,375 6,364 12,069 5,245 (23,707 ) 6,346 TOTAL LIABILITIES AND EQUITY $ 6,375 $ 12,083 $ 17,577 $ 13,622 $ (23,804 ) $ 25,853 December 31, 2015 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 223 $ 386 $ — $ 609 Restricted cash and cash equivalents — — 148 99 — 247 Accounts receivable, net — — 501 375 — 876 Intercompany receivables — — 89 — (89 ) — Inventories — — 419 23 — 442 Current portion of financing receivables, net — — 55 74 — 129 Prepaid expenses — — 39 129 (21 ) 147 Income taxes receivable — — 120 — (23 ) 97 Other — — 9 29 — 38 Total current assets — — 1,603 1,115 (133 ) 2,585 Property, Intangibles and Other Assets: Property and equipment, net — — 304 8,815 — 9,119 Financing receivables, net — — 451 436 — 887 Investments in affiliates — — 94 44 — 138 Investments in subsidiaries 6,166 11,854 5,232 — (23,252 ) — Goodwill — — 3,851 2,036 — 5,887 Brands — — 4,405 514 — 4,919 Management and franchise contracts, net — — 877 272 — 1,149 Other intangible assets, net — — 402 184 — 586 Deferred income tax assets 24 3 — 78 (27 ) 78 Other — 9 165 100 — 274 Total property, intangibles and other assets 6,190 11,866 15,781 12,479 (23,279 ) 23,037 TOTAL ASSETS $ 6,190 $ 11,866 $ 17,384 $ 13,594 $ (23,412 ) $ 25,622 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 39 $ 1,542 $ 646 $ (21 ) $ 2,206 Intercompany payables — — — 89 (89 ) — Current maturities of long-term debt — (12 ) — 106 — 94 Current maturities of timeshare debt — — — 110 — 110 Income taxes payable — — 6 50 (23 ) 33 Total current liabilities — 27 1,548 1,001 (133 ) 2,443 Long-term debt — 5,659 54 4,144 — 9,857 Timeshare debt — — — 392 — 392 Deferred revenues — — 282 1 — 283 Deferred income tax liabilities — — 2,041 2,616 (27 ) 4,630 Liability for guest loyalty program — — 784 — — 784 Other 205 14 821 242 — 1,282 Total liabilities 205 5,700 5,530 8,396 (160 ) 19,671 Equity: Total Hilton stockholders' equity 5,985 6,166 11,854 5,232 (23,252 ) 5,985 Noncontrolling interests — — — (34 ) — (34 ) Total equity 5,985 6,166 11,854 5,198 (23,252 ) 5,951 TOTAL LIABILITIES AND EQUITY $ 6,190 $ 11,866 $ 17,384 $ 13,594 $ (23,412 ) $ 25,622 Three Months Ended June 30, 2016 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Owned and leased hotels $ — $ — $ 62 $ 1,051 $ (8 ) $ 1,105 Management and franchise fees and other — — 378 92 (26 ) 444 Timeshare — — 319 17 — 336 — — 759 1,160 (34 ) 1,885 Other revenues from managed and franchised properties — — 1,276 133 (243 ) 1,166 Total revenues — — 2,035 1,293 (277 ) 3,051 Expenses Owned and leased hotels — — 44 788 (24 ) 808 Timeshare — — 226 4 (7 ) 223 Depreciation and amortization — — 81 90 — 171 General, administrative and other — — 98 37 (3 ) 132 — — 449 919 (34 ) 1,334 Other expenses from managed and franchised properties — — 1,276 133 (243 ) 1,166 Total expenses — — 1,725 1,052 (277 ) 2,500 Gain on sales of assets, net — — — 2 — 2 Operating income — — 310 243 — 553 Interest income — — 3 1 — 4 Interest expense — (67 ) (20 ) (60 ) — (147 ) Equity in earnings from unconsolidated affiliates — — 7 1 — 8 Gain (loss) on foreign currency transactions — — (67 ) 54 — (13 ) Other loss, net — — — (5 ) — (5 ) Income (loss) before income taxes and equity in earnings from subsidiaries — (67 ) 233 234 — 400 Income tax benefit (expense) — 25 (93 ) (88 ) — (156 ) Income (loss) before equity in earnings from subsidiaries — (42 ) 140 146 — 244 Equity in earnings from subsidiaries 239 281 141 — (661 ) — Net income 239 239 281 146 (661 ) 244 Net income attributable to noncontrolling interests — — — (5 ) — (5 ) Net income attributable to Hilton stockholders $ 239 $ 239 $ 281 $ 141 $ (661 ) $ 239 Comprehensive income $ 187 $ 239 $ 251 $ 124 $ (609 ) $ 192 Comprehensive income attributable to noncontrolling interests — — — (5 ) — (5 ) Comprehensive income attributable to Hilton stockholders $ 187 $ 239 $ 251 $ 119 $ (609 ) $ 187 Three Months Ended June 30, 2015 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Owned and leased hotels $ — $ — $ 61 $ 1,079 $ (5 ) $ 1,135 Management and franchise fees and other — — 349 83 (25 ) 407 Timeshare — — 298 21 — 319 — — 708 1,183 (30 ) 1,861 Other revenues from managed and franchised properties — — 1,169 124 (232 ) 1,061 Total revenues — — 1,877 1,307 (262 ) 2,922 Expenses Owned and leased hotels — — 41 799 (23 ) 817 Timeshare — — 221 4 (5 ) 220 Depreciation and amortization — — 81 92 — 173 General, administrative and other — — 194 29 (2 ) 221 — — 537 924 (30 ) 1,431 Other expenses from managed and franchised properties — — 1,169 124 (232 ) 1,061 Total expenses — — 1,706 1,048 (262 ) 2,492 Gain (loss) on sales of assets, net — — 1 (4 ) — (3 ) Operating income — — 172 255 — 427 Interest income — — 1 1 — 2 Interest expense — (71 ) (15 ) (63 ) — (149 ) Equity in earnings from unconsolidated affiliates — — 8 1 — 9 Gain (loss) on foreign currency transactions — — (323 ) 328 — 5 Other gain, net — — — 18 — 18 Income (loss) before income taxes and equity in earnings from subsidiaries — (71 ) (157 ) 540 — 312 Income tax benefit (expense) (4 ) 27 53 (221 ) — (145 ) Income (loss) before equity in earnings from subsidiaries (4 ) (44 ) (104 ) 319 — 167 Equity in earnings from subsidiaries 165 209 313 — (687 ) — Net income 161 165 209 319 (687 ) 167 Net income attributable to noncontrolling interests — — — (6 ) — (6 ) Net income attributable to Hilton stockholders $ 161 $ 165 $ 209 $ 313 $ (687 ) $ 161 Comprehensive income $ 356 $ 167 $ 240 $ 481 $ (882 ) $ 362 Comprehensive income attributable to noncontrolling interests — — — (6 ) — (6 ) Comprehensive income attributable to Hilton stockholders $ 356 $ 167 $ 240 $ 475 $ (882 ) $ 356 Six Months Ended June 30, 2016 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Owned and leased hotels $ — $ — $ 114 $ 1,973 $ (15 ) $ 2,072 Management and franchise fees and other — — 712 172 (54 ) 830 Timeshare — — 628 34 — 662 — — 1,454 2,179 (69 ) 3,564 Other revenues from managed and franchised properties — — 2,492 246 (501 ) 2,237 Total revenues — — 3,946 2,425 (570 ) 5,801 Expenses Owned and leased hotels — — 87 1,526 (49 ) 1,564 Timeshare — — 445 8 (13 ) 440 Depreciation and amortization — — 161 179 — 340 Impairment loss — — — 15 — 15 General, administrative and other — — 180 72 (7 ) 245 — — 873 1,800 (69 ) 2,604 Other expenses from managed and franchised properties — — 2,492 246 (501 ) 2,237 Total expenses — — 3,365 2,046 (570 ) 4,841 Gain on sales of assets, net — — — 2 — 2 Operating income — — 581 381 — 962 Interest income — — 5 2 — 7 Interest expense — (134 ) (31 ) (121 ) — (286 ) Equity in earnings from unconsolidated affiliates — — 10 1 — 11 Gain (loss) on foreign currency transactions — — (62 ) 37 — (25 ) Other loss, net — — — (5 ) — (5 ) Income (loss) before income taxes and equity in earnings from subsidiaries — (134 ) 503 295 — 664 Income tax benefit (expense) 192 51 (242 ) (111 ) — (110 ) Income (loss) before equity in earnings from subsidiaries 192 (83 ) 261 184 — 554 Equity in earnings from subsidiaries 356 439 178 — (973 ) — Net income 548 356 439 184 (973 ) 554 Net income attributable to noncontrolling interests — — — (6 ) — (6 ) Net income attributable to Hilton stockholders $ 548 $ 356 $ 439 $ 178 $ (973 ) $ 548 Comprehensive income $ 506 $ 350 $ 400 $ 185 $ (931 ) $ 510 Comprehensive income attributable to noncontrolling interests — — — (4 ) — (4 ) Comprehensive income attributable to Hilton stockholders $ 506 $ 350 $ 400 $ 181 $ (931 ) $ 506 Six Months Ended June 30, 2015 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Owned and leased hotels $ — $ — $ 113 $ 1,991 $ (12 ) $ 2,092 Management and franchise fees and other — — 671 157 (50 ) 778 Timeshare — — 597 43 — 640 — — 1,381 2,191 (62 ) 3,510 Other revenues from managed and franchised properties — — 2,250 229 (468 ) 2,011 Total revenues — — 3,631 2,420 (530 ) 5,521 Expenses Owned and leased hotels — — 82 1,548 (45 ) 1,585 Timeshare — — 457 8 (11 ) 454 Depreciation and amortization — — 173 175 — 348 General, administrative and other — — 288 66 (6 ) 348 — — 1,000 1,797 (62 ) 2,735 Other expenses from managed and franchised properties — — 2,250 229 (468 ) 2,011 Total expenses — — 3,250 2,026 (530 ) 4,746 Gain on sales of assets, net — — — 142 — 142 Operating income — — 381 536 — 917 Interest income — — 7 1 — 8 Interest expense — (144 ) (28 ) (121 ) — (293 ) Equity in earnings from unconsolidated affiliates — — 11 2 — 13 Gain (loss) on foreign currency transactions — — (140 ) 127 — (13 ) Other loss, net — — — (7 ) — (7 ) Income (loss) before income taxes and equity in earnings from subsidiaries — (144 ) 231 538 — 625 Income tax benefit (expense) (5 ) 55 (99 ) (259 ) — (308 ) Income (loss) before equity in earnings from subsidiaries (5 ) (89 ) 132 279 — 317 Equity in earnings from subsidiaries 316 405 273 — (994 ) — Net income 311 316 405 279 (994 ) 317 Net income attributable to noncontrolling interests — — — (6 ) — (6 ) Net income attributable to Hilton stockholders $ 311 $ 316 $ 405 $ 273 $ (994 ) $ 311 Comprehensive income $ 266 $ 311 $ 408 $ 236 $ (949 ) $ 272 Comprehensive income attributable to noncontrolling interests — — — (6 ) — (6 ) Comprehensive income attributable to Hilton stockholders $ 266 $ 311 $ 408 $ 230 $ (949 ) $ 266 Six Months Ended June 30, 2016 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ — $ 211 $ 498 $ (54 ) $ 655 Investing Activities: Capital expenditures for property and equipment — — (19 ) (150 ) — (169 ) Payments received on other financing receivables — — — 1 — 1 Issuance of other financing receivables — — (18 ) — — (18 ) Distributions from unconsolidated affiliates — — 1 1 — 2 Proceeds from asset dispositions — — — 1 — 1 Change in restricted cash and cash equivalents — — — 14 — 14 Contract acquisition costs — — (16 ) (2 ) — (18 ) Capitalized software costs — — (35 ) — — (35 ) Net cash used in investing activities — — (87 ) (135 ) — (222 ) Financing Activities: Repayment of debt — — — (64 ) — (64 ) Change in restricted cash and cash equivalents — — — (32 ) — (32 ) Intercompany transfers 138 — (53 ) (85 ) — — Dividends paid (138 ) — — — — (138 ) Intercompany dividends — — — (54 ) 54 — Distributions to noncontrolling interests — — — (4 ) — (4 ) Net cash used in financing activities — — (53 ) (239 ) 54 (238 ) Effect of exchange rate changes on cash and cash equivalents — — — 6 — 6 Net increase in cash and cash equivalents — — 71 130 — 201 Cash and cash equivalents, beginning of period — — 223 386 — 609 Cash and cash equivalents, end of period $ — $ — $ 294 $ 516 $ — $ 810 Six Months Ended June 30, 2015 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ — $ 300 $ 416 $ (68 ) $ 648 Investing Activities: Capital expenditures for property and equipment — — (14 ) (145 ) — (159 ) Acquisitions, net of cash acquired — — — (1,410 ) — (1,410 ) Payments received on other financing receivables — — 1 1 — 2 Issuance of other financing receivables — — (4 ) (2 ) — (6 ) Investments in affiliates — — (5 ) — — (5 ) Distributions from unconsolidated affiliates — — 9 — — 9 Issuance of intercompany receivables — — (184 ) — 184 — Payments received on intercompany receivables — — 184 — (184 ) — Proceeds from asset dispositions — — — 1,869 — 1,869 Contract acquisition costs — — (11 ) (8 ) — (19 ) Capitalized software costs — — (23 ) — — (23 ) Net cash provided by (used in) investing activities — — (47 ) 305 — 258 Financing Activities: Borrowings — — — 34 — 34 Repayment of debt — (325 ) — (636 ) — (961 ) Intercompany borrowings — — — 184 (184 ) — Repayment of intercompany borrowings — — — (184 ) 184 — Change in restricted cash and cash equivalents — — — (29 ) — (29 ) Intercompany transfers — 325 (334 ) 9 — — Intercompany dividends — — — (68 ) 68 — Distributions to noncontrolling interests — — — (4 ) — (4 ) Excess tax benefits from share-based compensation — — 8 — — 8 Net cash used in financing activities — — (326 ) (694 ) 68 (952 ) Effect of exchange rate changes on cash and cash equivalents — — — (9 ) — (9 ) Net increase (decrease) in cash and cash equivalents — — (73 ) 18 — (55 ) Cash and cash equivalents, beginning of period — — 270 296 — 566 Cash and cash equivalents, end of period $ — $ — $ 197 $ 314 $ — $ 511 |
Recently Issued Accounting Pr28
Recently Issued Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ASU 2015-03, ASU 2015-15 Presentation of Debt Issuance Costs | In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03 ("ASU 2015-03"), Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset, which is consistent with the presentation of debt discounts and premiums. In August 2015, the FASB issued ASU No. 2015-15 ("ASU 2015-15"), Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements ,which clarifies that absent authoritative guidance in ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the staff of the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We adopted ASU 2015-03 and ASU 2015-15 retrospectively as of January 1, 2016. As a result, approximately $94 million of debt issuance costs that were previously presented in other long-term assets as of December 31, 2015 are now included within long-term debt and timeshare debt. We elected to continue presenting the debt issuance costs related to our line-of-credit arrangements within other long-term assets. |
ASU 2015-02 Consolidation | In February 2015, the FASB issued ASU No. 2015-02 ("ASU 2015-02"), Consolidation (Topic 810) - Amendments to the Consolidation Analysis . This ASU modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. We elected, as permitted by the standard, to adopt ASU 2015-02 using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of January 1, 2016 of approximately $5 million . Additionally, certain consolidated entities that were not previously considered variable interest entities ("VIEs") prior to the adoption of ASU 2015-02 were considered to be VIEs for which we are the primary beneficiary and continue to be consolidated following adoption; prior period VIE disclosures do not include the balances or activity associated with these VIEs. |
ASU 2016-09 Stock Compensation | In March 2016, the FASB issued ASU No. 2016-09 ("ASU 2016-09"), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This ASU is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The provisions of ASU 2016-09 are effective for reporting periods beginning after December 15, 2016; early adoption is permitted. The provisions of this ASU contain specific transition guidance for each amendment. We are currently evaluating the effect that this ASU will have on our consolidated financial statements. |
ASU 2016-02 Leases | In February 2016, the FASB issued ASU No. 2016-02 ("ASU 2016-02"), Leases (Topic 842) , which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position as right-of-use assets and lease liabilities by lessees. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach and are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. We are currently evaluating the effect that this ASU will have on our consolidated financial statements. |
ASU 2014-09 and Related ASUs Revenue Recognition | In May 2014, the FASB issued ASU No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606) . This ASU supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) , and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Subsequent to ASU 2014-09, the FASB has issued several related ASUs. The provisions of ASU 2014-09 and the related ASUs are to be applied retrospectively or using a modified retrospective approach. We are currently evaluating our method of adoption and the effect that this ASU will have on our consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Acquisitions Disclosure [Abstract] | |
Earnings from Acquired Businesses | The results of operations from these properties included in the condensed consolidated statements of operations were as follows: Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 (in millions) Total revenues $ 89 $ 144 Income before income taxes 19 34 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment were as follows: June 30, December 31, 2016 2015 (in millions) Land $ 3,473 $ 3,486 Buildings and leasehold improvements 6,476 6,410 Furniture and equipment 1,321 1,263 Construction-in-progress 137 80 11,407 11,239 Accumulated depreciation (2,300 ) (2,120 ) $ 9,107 $ 9,119 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Financing Receivables | Financing receivables were as follows: June 30, 2016 Securitized Timeshare Unsecuritized Timeshare (1) Other Total (in millions) Financing receivables $ 254 $ 699 $ 51 $ 1,004 Less: allowance for loan loss (11 ) (88 ) — (99 ) 243 611 51 905 Current portion of financing receivables 53 87 2 142 Less: allowance for loan loss (2 ) (11 ) — (13 ) 51 76 2 129 Total financing receivables $ 294 $ 687 $ 53 $ 1,034 December 31, 2015 Securitized Timeshare Unsecuritized Timeshare (1) Other Total (in millions) Financing receivables $ 309 $ 632 $ 39 $ 980 Less: allowance for loan loss (14 ) (79 ) — (93 ) 295 553 39 887 Current portion of financing receivables 58 83 1 142 Less: allowance for loan loss (3 ) (10 ) — (13 ) 55 73 1 129 Total financing receivables $ 350 $ 626 $ 40 $ 1,016 ____________ (1) Included in this balance, we had $164 million and $163 million of gross timeshare financing receivables securing our revolving non-recourse timeshare financing receivables credit facility (the "Timeshare Facility"), as of June 30, 2016 and December 31, 2015 , respectively. |
Schedule of Maturities of Timeshare Financing Receivables | Our timeshare financing receivables as of June 30, 2016 mature as follows: Securitized Timeshare Unsecuritized Timeshare Year (in millions) 2016 (remaining) $ 26 $ 51 2017 54 74 2018 53 78 2019 50 80 2020 45 83 Thereafter 79 420 307 786 Less: allowance for loan loss (13 ) (99 ) $ 294 $ 687 |
Aged Analysis of Gross TImeshare Financing Receivables | The following table details an aged analysis of our gross timeshare financing receivables balance: June 30, December 31, 2016 2015 (in millions) Current $ 1,046 $ 1,035 30 - 89 days past due 13 15 90 - 119 days past due 4 4 120 days and greater past due 30 28 $ 1,093 $ 1,082 |
Allowance for Uncollectible Timeshare Financing Receivables | The changes in our allowance for loan loss were as follows: Six Months Ended June 30, 2016 2015 (in millions) Beginning balance $ 106 $ 96 Write-offs (17 ) (15 ) Provision for loan loss 23 17 Ending balance $ 112 $ 98 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Schedule of Investments in Affiliates | Investments in affiliates were as follows: June 30, December 31, 2016 2015 (in millions) Equity investments $ 120 $ 129 Other investments 9 9 $ 129 $ 138 |
Consolidated Variable Interes33
Consolidated Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Schedule of Variable Interest Entities | As of June 30, 2016 and December 31, 2015 , our condensed consolidated balance sheets included the assets and liabilities of the nine and five VIEs, respectively, which primarily comprised the following: June 30, December 31, 2016 2015 (in millions) Cash and cash equivalents $ 68 $ 46 Restricted cash and cash equivalents 23 15 Accounts receivable, net 18 19 Property and equipment, net 264 72 Financing receivables, net 294 350 Deferred income tax assets 68 62 Other non-current assets 61 52 Accounts payable, accrued expenses and other 49 35 Long-term debt 391 219 Timeshare debt 295 353 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt balances, including obligations for capital leases, and associated interest rates as of June 30, 2016 , were as follows: June 30, December 31, 2016 2015 (in millions) Senior secured term loan facility with a rate of 3.50%, due 2020 $ 4,225 $ 4,225 Senior notes with a rate of 5.625%, due 2021 1,500 1,500 Commercial mortgage-backed securities loan with an average rate of 4.15%, due 2018 (1) 3,418 3,418 Mortgage loans and other property debt with an average rate of 4.22%, due 2016 to 2022 (2) 622 616 Other unsecured notes with a rate of 7.50%, due 2017 54 54 Capital lease obligations with an average rate of 6.38%, due 2018 to 2097 274 245 10,093 10,058 Less: current maturities of long-term debt (3) (98 ) (94 ) Less: unamortized deferred financing costs and discount (95 ) (107 ) $ 9,900 $ 9,857 ____________ (1) The current maturity date of the variable-rate component of this borrowing is November 1, 2016. We assumed all extensions, which are solely at our option, were exercised. (2) For mortgage loans with maturity date extensions that are solely at our option, we assumed they were exercised. (3) Net of unamortized deferred financing costs expected to be amortized in the next twelve months. |
Timeshare Debt | Timeshare debt, and associated interest rates as of June 30, 2016 , were as follows: June 30, December 31, 2016 2015 (in millions) Timeshare Facility with a rate of 1.44%, due 2017 $ 150 $ 150 Securitized Timeshare Debt with an average rate of 1.97%, due 2026 298 356 448 506 Less: current maturities of timeshare debt (1) (88 ) (110 ) Less: unamortized deferred financing costs (3 ) (4 ) $ 357 $ 392 ____________ (1) Net of unamortized deferred financing costs expected to be amortized in the next twelve months. |
Debt Maturities | The contractual maturities of our debt as of June 30, 2016 were as follows: Long-term Debt Timeshare Debt Year (in millions) 2016 (remaining) $ 112 $ 48 2017 71 225 2018 (1) 3,451 52 2019 (1) 445 38 2020 4,255 28 Thereafter (1) 1,759 57 $ 10,093 $ 448 ____________ (1) We assumed all extensions that are solely at our option for purposes of calculating maturity dates. |
Derivative Instruments and He35
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The effects of our derivative instruments on our condensed consolidated balance sheets were as follows: Fair Value June 30, December 31, Balance Sheet Classification 2016 2015 (in millions) Cash Flow Hedges: Interest rate swaps Other liabilities $ 25 $ 15 Non-designated Hedges: Interest rate caps (1) Other assets — — Forward contracts Other assets 7 1 Forward contracts Accounts payable, accrued expenses and other 3 1 ____________ (1) The fair values of our interest rate caps were less than $1 million as of June 30, 2016 and December 31, 2015 . |
Earnings Effect of Derivative Instruments | The effects of our derivative instruments on our condensed consolidated statements of operations and condensed consolidated statements of comprehensive income (loss) before any effect for income taxes were as follows: Three Months Ended June 30, Six Months Ended June 30, Classification of Gain (Loss) Recognized 2016 2015 2016 2015 (in millions) Cash Flow Hedges: Interest rate swaps (1) Other comprehensive income (loss) $ — $ 3 $ (10 ) $ (8 ) Non-designated Hedges: Forward contracts Gain (loss) on foreign currency transactions 2 8 3 6 ____________ (1) There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three and six months ended June 30, 2016 and 2015 . |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The fair value of certain financial instruments and the hierarchy level we used to estimate fair values are shown below: June 30, 2016 Hierarchy Level Carrying Amount Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 488 $ — $ 488 $ — Restricted cash equivalents 20 — 20 — Timeshare financing receivables (1) 981 — — 1,092 Liabilities: Long-term debt (2)(3) 9,685 1,616 — 8,290 Timeshare debt (3) 445 — — 448 Interest rate swaps 25 — 25 — December 31, 2015 Hierarchy Level Carrying Amount Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 327 $ — $ 327 $ — Restricted cash equivalents 18 — 18 — Timeshare financing receivables (1) 976 — — 1,080 Liabilities: Long-term debt (2)(3) 9,673 1,619 — 8,267 Timeshare debt (3) 502 — — 506 Interest rate swaps 15 — 15 — ____________ (1) Carrying amount includes allowance for loan loss. (2) Excludes capital lease obligations with a carrying value of $274 million and $245 million as of June 30, 2016 and December 31, 2015 , respectively, and debt of consolidated VIEs with a carrying value of $39 million and $32 million , respectively. (3) Carrying amount includes unamortized deferred financing costs and discount. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The grant date fair value of these options was $5.47 , which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility (1) 32.00 % Dividend yield (2) 1.43 % Risk-free rate (3) 1.36 % Expected term (in years) (4) 6.0 ____________ (1) Due to limited trading history of our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption in addition to our historical and implied volatility. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) Estimated based on the expected annualized dividend payment. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Estimated using the average of the vesting periods and the contractual term of the options. |
Schedule of Share Based Payment Award, Performance Shares, Valuation Assumptions [Table Text Block] | The grant date fair value of these performance shares based on relative shareholder return was $20.81 , which was determined using a Monte Carlo simulation valuation model with the following assumptions: Expected volatility (1) 31.00 % Dividend yield (2) — % Risk-free rate (3) 0.92 % Expected term (in years) (4) 2.8 ____________ (1) Due to limited trading history of our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption in addition to our historical and implied volatility. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. (2) As dividends are assumed to be reinvested in shares of common stock and dividends will not be paid to the participants of the performance shares unless the shares vest, we utilized a dividend yield of zero percent. (3) Based on the yields of U.S. Department of Treasury instruments with similar expected lives. (4) Midpoint of the 30-calendar day period preceding the end of the performance period. |
Schedule of Share Based Payment Award, Performance Shares, Performance Conditions [Table Text Block] | For these shares, we determined that the performance condition is probable of achievement and as of June 30, 2016 , we recognized compensation expense based on the anticipated achievement percentage as follows: Achievement Percentage 2014 grants 125% 2015 grants 88% 2016 grants 63% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share ("EPS"): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions, except per share amounts) Basic EPS: Numerator: Net income attributable to Hilton stockholders $ 239 $ 161 $ 548 $ 311 Denominator: Weighted average shares outstanding 988 987 988 986 Basic EPS $ 0.24 $ 0.16 $ 0.56 $ 0.32 Diluted EPS: Numerator: Net income attributable to Hilton stockholders $ 239 $ 161 $ 548 $ 311 Denominator: Weighted average shares outstanding 991 989 990 989 Diluted EPS $ 0.24 $ 0.16 $ 0.55 $ 0.31 |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2015 $ (580 ) $ (194 ) $ (10 ) $ (784 ) Other comprehensive loss before reclassifications (37 ) (1 ) (6 ) (44 ) Amounts reclassified from accumulated other comprehensive loss (1 ) 3 — 2 Net current period other comprehensive income (loss) (38 ) 2 (6 ) (42 ) Balance as of June 30, 2016 $ (618 ) $ (192 ) $ (16 ) $ (826 ) Currency Translation Adjustment (1) Pension Liability Adjustment Cash Flow Hedge Adjustment Total (in millions) Balance as of December 31, 2014 $ (446 ) $ (179 ) $ (3 ) $ (628 ) Other comprehensive loss before reclassifications (42 ) (2 ) (5 ) (49 ) Amounts reclassified from accumulated other comprehensive loss — 4 — 4 Net current period other comprehensive income (loss) (42 ) 2 (5 ) (45 ) Balance as of June 30, 2015 $ (488 ) $ (177 ) $ (8 ) $ (673 ) ____________ (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Reclassification Out of Accumulated Other Comprehensive Loss | The following table presents additional information about reclassifications out of accumulated other comprehensive loss; amounts in parentheses indicate a loss in our condensed consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions) Currency translation adjustment: Gains on net investment hedges (1) 1 — 1 — Tax benefit (2)(3) — — — — Total currency translation adjustment reclassifications for the period, net of taxes 1 — 1 — Pension liability adjustment: Amortization of prior service cost (4) $ (1 ) $ (1 ) $ (2 ) $ (2 ) Amortization of net loss (4) (2 ) (2 ) (3 ) (4 ) Tax benefit (2) 1 1 2 2 Total pension liability adjustment reclassifications for the period, net of taxes (2 ) (2 ) (3 ) (4 ) Total reclassifications for the period, net of tax $ (1 ) $ (2 ) $ (2 ) $ (4 ) ____________ (1) Reclassified out of accumulated other comprehensive loss to other gain (loss), net in our condensed consolidated statements of operations. (2) Reclassified out of accumulated other comprehensive loss to income tax expense in our condensed consolidated statements of operations. (3) The tax benefit was less than $1 million for the three and six months ended June 30, 2016 . (4) Reclassified out of accumulated other comprehensive loss to general, administrative and other in our condensed consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segment Amounts to Consolidated Amounts | The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions) Revenues Ownership $ 1,114 $ 1,141 $ 2,088 $ 2,105 Management and franchise 471 434 880 825 Timeshare 336 319 662 640 Segment revenues 1,921 1,894 3,630 3,570 Other revenues from managed and franchised properties 1,166 1,061 2,237 2,011 Other revenues 23 21 45 42 Intersegment fees elimination (1) (59 ) (54 ) (111 ) (102 ) Total revenues $ 3,051 $ 2,922 $ 5,801 $ 5,521 ____________ (1) Included the following intercompany charges that were eliminated in our condensed consolidated financial statements: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions) Rental and other fees (a) $ 7 $ 5 $ 13 $ 11 Management, royalty and intellectual property fees (b) 38 36 71 66 Licensing fee (c) 11 11 21 20 Laundry services (d) 1 1 3 3 Other (e) 2 1 3 2 Intersegment fees elimination $ 59 $ 54 $ 111 $ 102 ____________ (a) Represents charges to our timeshare segment by our ownership segment. (b) Represents fees charged to our ownership segment by our management and franchise segment. (c) Represents fees charged to our timeshare segment by our management and franchise segment. (d) Represents charges to our ownership segment for services provided by our wholly owned laundry business. Revenues from our laundry business are included in other revenues. (e) Represents other intercompany charges, which are a benefit to the ownership segment and a cost to corporate and other. |
Reconciliation of Segment Adjusted EBITDA to Net Income | The table below provides a reconciliation of segment Adjusted EBITDA to consolidated net income: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions) Ownership (1)(2) $ 299 $ 318 $ 506 $ 508 Management and franchise (2) 471 434 880 825 Timeshare (2) 98 86 193 160 Segment Adjusted EBITDA 868 838 1,579 1,493 Corporate and other (2) (62 ) (61 ) (120 ) (117 ) Interest expense (147 ) (149 ) (286 ) (293 ) Income tax expense (156 ) (145 ) (110 ) (308 ) Depreciation and amortization (171 ) (173 ) (340 ) (348 ) Interest expense, income tax and depreciation and amortization included in equity in earnings from unconsolidated affiliates (7 ) (7 ) (15 ) (14 ) Gain (loss) on sales of assets, net 2 (3 ) 2 142 Gain (loss) on foreign currency transactions (13 ) 5 (25 ) (13 ) FF&E replacement reserve (16 ) (14 ) (29 ) (27 ) Share-based compensation expense (26 ) (92 ) (44 ) (122 ) Impairment loss — — (15 ) — Other gain (loss), net (5 ) 18 (5 ) (7 ) Other adjustment items (23 ) (50 ) (38 ) (69 ) Net income $ 244 $ 167 $ 554 $ 317 ____________ (1) Includes unconsolidated affiliate Adjusted EBITDA. (2) Our measures of Adjusted EBITDA included intercompany charges that were eliminated in our condensed consolidated financial statements. Refer to the footnote to the segment revenues table above for the detail of the intercompany charges. |
Schedule of Assets by Segment | The following table presents total assets for our reportable segments, reconciled to consolidated amounts: June 30, December 31, 2016 2015 (in millions) Ownership $ 11,346 $ 11,269 Management and franchise 10,327 10,392 Timeshare 2,067 1,935 Corporate and other 2,113 2,026 $ 25,853 $ 25,622 |
Schedule of Capital Expenditures by Segment | The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts: Six Months Ended June 30, 2016 2015 (in millions) Ownership $ 153 $ 148 Timeshare 11 5 Corporate and other 5 6 $ 169 $ 159 |
Condensed Consolidating Guara41
Condensed Consolidating Guarantor Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |
Condensed Balance Sheet | June 30, 2016 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 294 $ 516 $ — $ 810 Restricted cash and cash equivalents — — 154 117 — 271 Accounts receivable, net — — 598 407 — 1,005 Intercompany receivables — — 67 — (67 ) — Inventories — — 437 22 — 459 Current portion of financing receivables, net — — 59 70 — 129 Prepaid expenses — — 80 112 (6 ) 186 Income taxes receivable — — 18 — — 18 Other — — 9 43 — 52 Total current assets — — 1,716 1,287 (73 ) 2,930 Property, Intangibles and Other Assets: Property and equipment, net — — 356 8,772 (21 ) 9,107 Financing receivables, net — — 522 383 — 905 Investments in affiliates — — 82 47 — 129 Investments in subsidiaries 6,364 12,069 5,260 — (23,693 ) — Goodwill — — 3,851 2,011 — 5,862 Brands — — 4,405 506 — 4,911 Management and franchise contracts, net — — 820 257 — 1,077 Other intangible assets, net — — 378 165 — 543 Deferred income tax assets 11 6 — 76 (17 ) 76 Other — 8 187 118 — 313 Total property, intangibles and other assets 6,375 12,083 15,861 12,335 (23,731 ) 22,923 TOTAL ASSETS $ 6,375 $ 12,083 $ 17,577 $ 13,622 $ (23,804 ) $ 25,853 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 39 $ 1,647 $ 690 $ (6 ) $ 2,370 Intercompany payables — — — 74 (74 ) — Current maturities of long-term debt — (12 ) — 110 — 98 Current maturities of timeshare debt — — — 88 — 88 Income taxes payable — — 70 37 — 107 Total current liabilities — 27 1,717 999 (80 ) 2,663 Long-term debt — 5,666 55 4,179 — 9,900 Timeshare debt — — — 357 — 357 Deferred revenues — — 160 1 — 161 Deferred income tax liabilities — — 1,953 2,597 (17 ) 4,533 Liability for guest loyalty program — — 833 — — 833 Other — 26 790 244 — 1,060 Total liabilities — 5,719 5,508 8,377 (97 ) 19,507 Equity: Total Hilton stockholders' equity 6,375 6,364 12,069 5,274 (23,707 ) 6,375 Noncontrolling interests — — — (29 ) — (29 ) Total equity 6,375 6,364 12,069 5,245 (23,707 ) 6,346 TOTAL LIABILITIES AND EQUITY $ 6,375 $ 12,083 $ 17,577 $ 13,622 $ (23,804 ) $ 25,853 December 31, 2015 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 223 $ 386 $ — $ 609 Restricted cash and cash equivalents — — 148 99 — 247 Accounts receivable, net — — 501 375 — 876 Intercompany receivables — — 89 — (89 ) — Inventories — — 419 23 — 442 Current portion of financing receivables, net — — 55 74 — 129 Prepaid expenses — — 39 129 (21 ) 147 Income taxes receivable — — 120 — (23 ) 97 Other — — 9 29 — 38 Total current assets — — 1,603 1,115 (133 ) 2,585 Property, Intangibles and Other Assets: Property and equipment, net — — 304 8,815 — 9,119 Financing receivables, net — — 451 436 — 887 Investments in affiliates — — 94 44 — 138 Investments in subsidiaries 6,166 11,854 5,232 — (23,252 ) — Goodwill — — 3,851 2,036 — 5,887 Brands — — 4,405 514 — 4,919 Management and franchise contracts, net — — 877 272 — 1,149 Other intangible assets, net — — 402 184 — 586 Deferred income tax assets 24 3 — 78 (27 ) 78 Other — 9 165 100 — 274 Total property, intangibles and other assets 6,190 11,866 15,781 12,479 (23,279 ) 23,037 TOTAL ASSETS $ 6,190 $ 11,866 $ 17,384 $ 13,594 $ (23,412 ) $ 25,622 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 39 $ 1,542 $ 646 $ (21 ) $ 2,206 Intercompany payables — — — 89 (89 ) — Current maturities of long-term debt — (12 ) — 106 — 94 Current maturities of timeshare debt — — — 110 — 110 Income taxes payable — — 6 50 (23 ) 33 Total current liabilities — 27 1,548 1,001 (133 ) 2,443 Long-term debt — 5,659 54 4,144 — 9,857 Timeshare debt — — — 392 — 392 Deferred revenues — — 282 1 — 283 Deferred income tax liabilities — — 2,041 2,616 (27 ) 4,630 Liability for guest loyalty program — — 784 — — 784 Other 205 14 821 242 — 1,282 Total liabilities 205 5,700 5,530 8,396 (160 ) 19,671 Equity: Total Hilton stockholders' equity 5,985 6,166 11,854 5,232 (23,252 ) 5,985 Noncontrolling interests — — — (34 ) — (34 ) Total equity 5,985 6,166 11,854 5,198 (23,252 ) 5,951 TOTAL LIABILITIES AND EQUITY $ 6,190 $ 11,866 $ 17,384 $ 13,594 $ (23,412 ) $ 25,622 |
Condensed Statement of Income and Comprehensive Income | Three Months Ended June 30, 2016 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Owned and leased hotels $ — $ — $ 62 $ 1,051 $ (8 ) $ 1,105 Management and franchise fees and other — — 378 92 (26 ) 444 Timeshare — — 319 17 — 336 — — 759 1,160 (34 ) 1,885 Other revenues from managed and franchised properties — — 1,276 133 (243 ) 1,166 Total revenues — — 2,035 1,293 (277 ) 3,051 Expenses Owned and leased hotels — — 44 788 (24 ) 808 Timeshare — — 226 4 (7 ) 223 Depreciation and amortization — — 81 90 — 171 General, administrative and other — — 98 37 (3 ) 132 — — 449 919 (34 ) 1,334 Other expenses from managed and franchised properties — — 1,276 133 (243 ) 1,166 Total expenses — — 1,725 1,052 (277 ) 2,500 Gain on sales of assets, net — — — 2 — 2 Operating income — — 310 243 — 553 Interest income — — 3 1 — 4 Interest expense — (67 ) (20 ) (60 ) — (147 ) Equity in earnings from unconsolidated affiliates — — 7 1 — 8 Gain (loss) on foreign currency transactions — — (67 ) 54 — (13 ) Other loss, net — — — (5 ) — (5 ) Income (loss) before income taxes and equity in earnings from subsidiaries — (67 ) 233 234 — 400 Income tax benefit (expense) — 25 (93 ) (88 ) — (156 ) Income (loss) before equity in earnings from subsidiaries — (42 ) 140 146 — 244 Equity in earnings from subsidiaries 239 281 141 — (661 ) — Net income 239 239 281 146 (661 ) 244 Net income attributable to noncontrolling interests — — — (5 ) — (5 ) Net income attributable to Hilton stockholders $ 239 $ 239 $ 281 $ 141 $ (661 ) $ 239 Comprehensive income $ 187 $ 239 $ 251 $ 124 $ (609 ) $ 192 Comprehensive income attributable to noncontrolling interests — — — (5 ) — (5 ) Comprehensive income attributable to Hilton stockholders $ 187 $ 239 $ 251 $ 119 $ (609 ) $ 187 Three Months Ended June 30, 2015 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Owned and leased hotels $ — $ — $ 61 $ 1,079 $ (5 ) $ 1,135 Management and franchise fees and other — — 349 83 (25 ) 407 Timeshare — — 298 21 — 319 — — 708 1,183 (30 ) 1,861 Other revenues from managed and franchised properties — — 1,169 124 (232 ) 1,061 Total revenues — — 1,877 1,307 (262 ) 2,922 Expenses Owned and leased hotels — — 41 799 (23 ) 817 Timeshare — — 221 4 (5 ) 220 Depreciation and amortization — — 81 92 — 173 General, administrative and other — — 194 29 (2 ) 221 — — 537 924 (30 ) 1,431 Other expenses from managed and franchised properties — — 1,169 124 (232 ) 1,061 Total expenses — — 1,706 1,048 (262 ) 2,492 Gain (loss) on sales of assets, net — — 1 (4 ) — (3 ) Operating income — — 172 255 — 427 Interest income — — 1 1 — 2 Interest expense — (71 ) (15 ) (63 ) — (149 ) Equity in earnings from unconsolidated affiliates — — 8 1 — 9 Gain (loss) on foreign currency transactions — — (323 ) 328 — 5 Other gain, net — — — 18 — 18 Income (loss) before income taxes and equity in earnings from subsidiaries — (71 ) (157 ) 540 — 312 Income tax benefit (expense) (4 ) 27 53 (221 ) — (145 ) Income (loss) before equity in earnings from subsidiaries (4 ) (44 ) (104 ) 319 — 167 Equity in earnings from subsidiaries 165 209 313 — (687 ) — Net income 161 165 209 319 (687 ) 167 Net income attributable to noncontrolling interests — — — (6 ) — (6 ) Net income attributable to Hilton stockholders $ 161 $ 165 $ 209 $ 313 $ (687 ) $ 161 Comprehensive income $ 356 $ 167 $ 240 $ 481 $ (882 ) $ 362 Comprehensive income attributable to noncontrolling interests — — — (6 ) — (6 ) Comprehensive income attributable to Hilton stockholders $ 356 $ 167 $ 240 $ 475 $ (882 ) $ 356 Six Months Ended June 30, 2016 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Owned and leased hotels $ — $ — $ 114 $ 1,973 $ (15 ) $ 2,072 Management and franchise fees and other — — 712 172 (54 ) 830 Timeshare — — 628 34 — 662 — — 1,454 2,179 (69 ) 3,564 Other revenues from managed and franchised properties — — 2,492 246 (501 ) 2,237 Total revenues — — 3,946 2,425 (570 ) 5,801 Expenses Owned and leased hotels — — 87 1,526 (49 ) 1,564 Timeshare — — 445 8 (13 ) 440 Depreciation and amortization — — 161 179 — 340 Impairment loss — — — 15 — 15 General, administrative and other — — 180 72 (7 ) 245 — — 873 1,800 (69 ) 2,604 Other expenses from managed and franchised properties — — 2,492 246 (501 ) 2,237 Total expenses — — 3,365 2,046 (570 ) 4,841 Gain on sales of assets, net — — — 2 — 2 Operating income — — 581 381 — 962 Interest income — — 5 2 — 7 Interest expense — (134 ) (31 ) (121 ) — (286 ) Equity in earnings from unconsolidated affiliates — — 10 1 — 11 Gain (loss) on foreign currency transactions — — (62 ) 37 — (25 ) Other loss, net — — — (5 ) — (5 ) Income (loss) before income taxes and equity in earnings from subsidiaries — (134 ) 503 295 — 664 Income tax benefit (expense) 192 51 (242 ) (111 ) — (110 ) Income (loss) before equity in earnings from subsidiaries 192 (83 ) 261 184 — 554 Equity in earnings from subsidiaries 356 439 178 — (973 ) — Net income 548 356 439 184 (973 ) 554 Net income attributable to noncontrolling interests — — — (6 ) — (6 ) Net income attributable to Hilton stockholders $ 548 $ 356 $ 439 $ 178 $ (973 ) $ 548 Comprehensive income $ 506 $ 350 $ 400 $ 185 $ (931 ) $ 510 Comprehensive income attributable to noncontrolling interests — — — (4 ) — (4 ) Comprehensive income attributable to Hilton stockholders $ 506 $ 350 $ 400 $ 181 $ (931 ) $ 506 Six Months Ended June 30, 2015 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Owned and leased hotels $ — $ — $ 113 $ 1,991 $ (12 ) $ 2,092 Management and franchise fees and other — — 671 157 (50 ) 778 Timeshare — — 597 43 — 640 — — 1,381 2,191 (62 ) 3,510 Other revenues from managed and franchised properties — — 2,250 229 (468 ) 2,011 Total revenues — — 3,631 2,420 (530 ) 5,521 Expenses Owned and leased hotels — — 82 1,548 (45 ) 1,585 Timeshare — — 457 8 (11 ) 454 Depreciation and amortization — — 173 175 — 348 General, administrative and other — — 288 66 (6 ) 348 — — 1,000 1,797 (62 ) 2,735 Other expenses from managed and franchised properties — — 2,250 229 (468 ) 2,011 Total expenses — — 3,250 2,026 (530 ) 4,746 Gain on sales of assets, net — — — 142 — 142 Operating income — — 381 536 — 917 Interest income — — 7 1 — 8 Interest expense — (144 ) (28 ) (121 ) — (293 ) Equity in earnings from unconsolidated affiliates — — 11 2 — 13 Gain (loss) on foreign currency transactions — — (140 ) 127 — (13 ) Other loss, net — — — (7 ) — (7 ) Income (loss) before income taxes and equity in earnings from subsidiaries — (144 ) 231 538 — 625 Income tax benefit (expense) (5 ) 55 (99 ) (259 ) — (308 ) Income (loss) before equity in earnings from subsidiaries (5 ) (89 ) 132 279 — 317 Equity in earnings from subsidiaries 316 405 273 — (994 ) — Net income 311 316 405 279 (994 ) 317 Net income attributable to noncontrolling interests — — — (6 ) — (6 ) Net income attributable to Hilton stockholders $ 311 $ 316 $ 405 $ 273 $ (994 ) $ 311 Comprehensive income $ 266 $ 311 $ 408 $ 236 $ (949 ) $ 272 Comprehensive income attributable to noncontrolling interests — — — (6 ) — (6 ) Comprehensive income attributable to Hilton stockholders $ 266 $ 311 $ 408 $ 230 $ (949 ) $ 266 |
Condensed Cash Flow Statement | Six Months Ended June 30, 2016 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ — $ 211 $ 498 $ (54 ) $ 655 Investing Activities: Capital expenditures for property and equipment — — (19 ) (150 ) — (169 ) Payments received on other financing receivables — — — 1 — 1 Issuance of other financing receivables — — (18 ) — — (18 ) Distributions from unconsolidated affiliates — — 1 1 — 2 Proceeds from asset dispositions — — — 1 — 1 Change in restricted cash and cash equivalents — — — 14 — 14 Contract acquisition costs — — (16 ) (2 ) — (18 ) Capitalized software costs — — (35 ) — — (35 ) Net cash used in investing activities — — (87 ) (135 ) — (222 ) Financing Activities: Repayment of debt — — — (64 ) — (64 ) Change in restricted cash and cash equivalents — — — (32 ) — (32 ) Intercompany transfers 138 — (53 ) (85 ) — — Dividends paid (138 ) — — — — (138 ) Intercompany dividends — — — (54 ) 54 — Distributions to noncontrolling interests — — — (4 ) — (4 ) Net cash used in financing activities — — (53 ) (239 ) 54 (238 ) Effect of exchange rate changes on cash and cash equivalents — — — 6 — 6 Net increase in cash and cash equivalents — — 71 130 — 201 Cash and cash equivalents, beginning of period — — 223 386 — 609 Cash and cash equivalents, end of period $ — $ — $ 294 $ 516 $ — $ 810 Six Months Ended June 30, 2015 Parent Subsidiary Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ — $ 300 $ 416 $ (68 ) $ 648 Investing Activities: Capital expenditures for property and equipment — — (14 ) (145 ) — (159 ) Acquisitions, net of cash acquired — — — (1,410 ) — (1,410 ) Payments received on other financing receivables — — 1 1 — 2 Issuance of other financing receivables — — (4 ) (2 ) — (6 ) Investments in affiliates — — (5 ) — — (5 ) Distributions from unconsolidated affiliates — — 9 — — 9 Issuance of intercompany receivables — — (184 ) — 184 — Payments received on intercompany receivables — — 184 — (184 ) — Proceeds from asset dispositions — — — 1,869 — 1,869 Contract acquisition costs — — (11 ) (8 ) — (19 ) Capitalized software costs — — (23 ) — — (23 ) Net cash provided by (used in) investing activities — — (47 ) 305 — 258 Financing Activities: Borrowings — — — 34 — 34 Repayment of debt — (325 ) — (636 ) — (961 ) Intercompany borrowings — — — 184 (184 ) — Repayment of intercompany borrowings — — — (184 ) 184 — Change in restricted cash and cash equivalents — — — (29 ) — (29 ) Intercompany transfers — 325 (334 ) 9 — — Intercompany dividends — — — (68 ) 68 — Distributions to noncontrolling interests — — — (4 ) — (4 ) Excess tax benefits from share-based compensation — — 8 — — 8 Net cash used in financing activities — — (326 ) (694 ) 68 (952 ) Effect of exchange rate changes on cash and cash equivalents — — — (9 ) — (9 ) Net increase (decrease) in cash and cash equivalents — — (73 ) 18 — (55 ) Cash and cash equivalents, beginning of period — — 270 296 — 566 Cash and cash equivalents, end of period $ — $ — $ 197 $ 314 $ — $ 511 |
Organization and Basis of Pre42
Organization and Basis of Presentation - Additional Information (Details) | Jun. 30, 2016RoomTimeshareCountryHotelIntervalRate |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of hotel properties | Hotel | 4,680 |
Number of hotel rooms | Room | 768,221 |
Number of countries and territories | Country | 104 |
Number of timeshare properties | Timeshare | 47 |
Number of timeshare units | Interval | 7,645 |
Common stock ownership percentage | Rate | 45.80% |
Recently Issued Accounting Pr43
Recently Issued Accounting Pronouncements Impact of Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Millions | Jan. 01, 2016 | Dec. 31, 2015 |
Impact of Recently Adopted Accounting Pronouncements [Abstract] | ||
Reclassification of debt issuance costs | $ 94 | |
Cumulative effect of new accounting principle in period of adoption | $ 5 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - Tax deferred exchange [member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | ||
Payments to acquire businesses, gross | $ 1,870 | |
Transaction-related costs | $ 7 | $ 26 |
Acquisitions Earnings from Acqu
Acquisitions Earnings from Acquired Businesses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 3,051 | $ 2,922 | $ 5,801 | $ 5,521 |
Income before income taxes | $ 400 | 312 | $ 664 | 625 |
Tax deferred exchange [member] | ||||
Business Acquisition [Line Items] | ||||
Revenues | 89 | 144 | ||
Income before income taxes | $ 19 | $ 34 |
Disposals - Additional Informat
Disposals - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosures by Disposal Group [Line Items] | ||||
Proceeds from asset dispositions | $ 1 | $ 1,869 | ||
Gain (loss) on sales of assets, net | $ 2 | $ (3) | $ 2 | 142 |
Waldorf Astoria New York [member] | ||||
Disclosures by Disposal Group [Line Items] | ||||
Proceeds from asset dispositions | 1,950 | |||
Repayments of debt | 525 | |||
Gain (loss) on sales of assets, net | 144 | |||
Reduction of goodwill | 185 | |||
Reduction of debt issuance costs | $ 6 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 3,473 | $ 3,486 |
Buildings and leasehold improvements | 6,476 | 6,410 |
Furniture and equipment | 1,321 | 1,263 |
Construction-in-progress | 137 | 80 |
Property and equipment, gross | 11,407 | 11,239 |
Accumulated depreciation | (2,300) | (2,120) |
Property and equipment, net | $ 9,107 | $ 9,119 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||||
Depreciation | $ 90 | $ 89 | $ 177 | $ 172 | |
Net capital lease assets included in property and equipment | 155 | 155 | $ 144 | ||
Accumulated depreciation of capital lease assets included in property and equipment | $ 82 | $ 82 | $ 71 |
Financing Receivables - Schedul
Financing Receivables - Schedule of Financing Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, net, non-current | $ 905 | $ 887 | |
Current portion of financing receivables, net | 129 | 129 | |
Securitized timeshare financing receivables [member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross, non-current | 254 | 309 | |
Allowance for loan loss, non-current | (11) | (14) | |
Financing receivables, net, non-current | 243 | 295 | |
Financing receivables, gross, current | 53 | 58 | |
Allowance for loan loss, current | (2) | (3) | |
Current portion of financing receivables, net | 51 | 55 | |
Financing receivables, net | 294 | 350 | |
Unsecuritized timeshare financing receivables [member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross, non-current | [1] | 699 | 632 |
Allowance for loan loss, non-current | (88) | (79) | |
Financing receivables, net, non-current | 611 | 553 | |
Financing receivables, gross, current | 87 | 83 | |
Allowance for loan loss, current | (11) | (10) | |
Current portion of financing receivables, net | 76 | 73 | |
Financing receivables, net | 687 | 626 | |
Other financing receivables [member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross, non-current | 51 | 39 | |
Allowance for loan loss, non-current | 0 | 0 | |
Financing receivables, net, non-current | 51 | 39 | |
Financing receivables, gross, current | 2 | 1 | |
Allowance for loan loss, current | 0 | 0 | |
Current portion of financing receivables, net | 2 | 1 | |
Financing receivables, net | 53 | 40 | |
Financing receivable [member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivables, gross, non-current | 1,004 | 980 | |
Allowance for loan loss, non-current | (99) | (93) | |
Financing receivables, net, non-current | 905 | 887 | |
Financing receivables, gross, current | 142 | 142 | |
Allowance for loan loss, current | (13) | (13) | |
Current portion of financing receivables, net | 129 | 129 | |
Financing receivables, net | $ 1,034 | $ 1,016 | |
[1] | Included in this balance, we had $164 million and $163 million of gross timeshare financing receivables securing our revolving non-recourse timeshare financing receivables credit facility (the "Timeshare Facility"), as of June 30, 2016 and December 31, 2015, respectively. |
Financing Receivables - Sched50
Financing Receivables - Schedule of Maturities of Timeshare Financing Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Maturities of Timeshare Financing Receivables [Line Items] | ||||
Allowance for uncollectible timeshare financing receivables | $ (112) | $ (106) | $ (98) | $ (96) |
Securitized timeshare financing receivables [member] | ||||
Schedule of Maturities of Timeshare Financing Receivables [Line Items] | ||||
2016 (remaining) | 26 | |||
2,017 | 54 | |||
2,018 | 53 | |||
2,019 | 50 | |||
2,020 | 45 | |||
Thereafter | 79 | |||
Timeshare financing receivables, gross | 307 | |||
Allowance for uncollectible timeshare financing receivables | (13) | |||
Timeshare financing receivables, net | 294 | |||
Unsecuritized timeshare financing receivables [member] | ||||
Schedule of Maturities of Timeshare Financing Receivables [Line Items] | ||||
2016 (remaining) | 51 | |||
2,017 | 74 | |||
2,018 | 78 | |||
2,019 | 80 | |||
2,020 | 83 | |||
Thereafter | 420 | |||
Timeshare financing receivables, gross | 786 | |||
Allowance for uncollectible timeshare financing receivables | (99) | |||
Timeshare financing receivables, net | $ 687 |
Financing Receivables - Aged An
Financing Receivables - Aged Analysis of Gross Timeshare Financing Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Current | $ 1,046 | $ 1,035 |
30 - 89 days past due | 13 | 15 |
90 - 119 days past due | 4 | 4 |
120 days and greater past due | 30 | 28 |
Financing receivable, gross | $ 1,093 | $ 1,082 |
Financing Receivables - Sched52
Financing Receivables - Schedule of Allowance Uncollectible Timeshare Financing Receivables (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Timeshare Allowance for Uncollectible Accounts [Roll Forward] | ||
Beginning balance | $ 106 | $ 96 |
Write-offs | (17) | (15) |
Provision for loan loss | 23 | 17 |
Ending balance | $ 112 | $ 98 |
Financing Receivables - Additio
Financing Receivables - Additional Information (Details) $ in Millions | Jun. 30, 2016USD ($)Rate | Dec. 31, 2015USD ($) |
Financing Receivable, Additional Disclosures [Line Items] | ||
Timeshare financing receivables weighted average remaining term | 7.7 | |
Nonaccrual timeshare financing receivables | $ | $ 34 | $ 32 |
Timeshare facility [member] | ||
Financing Receivable, Additional Disclosures [Line Items] | ||
Gross timeshare financing receivables secured under securitized timeshare debt | $ | $ 164 | $ 163 |
Minimum [member] | ||
Financing Receivable, Additional Disclosures [Line Items] | ||
Timeshare financing receivables, interest rate | 5.15% | |
Maximum [member] | ||
Financing Receivable, Additional Disclosures [Line Items] | ||
Timeshare financing receivables, interest rate | 20.50% | |
Weighted Average [Member] | ||
Financing Receivable, Additional Disclosures [Line Items] | ||
Timeshare financing receivables, interest rate | 11.88% |
Investments in Affiliates - Sch
Investments in Affiliates - Schedule of Investments (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | ||
Equity investments | $ 120 | $ 129 |
Other investments | 9 | 9 |
Investments in affiliates | $ 129 | $ 138 |
Investments in Affiliates - Add
Investments in Affiliates - Additional Information (Details) $ in Millions | Jun. 30, 2016USD ($)Hotel | Dec. 31, 2015USD ($)Hotel |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||
Number of hotels owned or leased by unconsolidated joint ventures | Hotel | 15 | 16 |
Debt of unconsolidated joint ventures | $ | $ 956 | $ 959 |
Consolidated Variable Interes56
Consolidated Variable Interest Entities - Additional Information (Details) $ in Millions | 1 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Entity | Jun. 30, 2015USD ($) | Jan. 01, 2016Entity | Dec. 31, 2015Entity | |
Variable Interest Entity [Line Items] | |||||
Number of consolidated variable interest entities | 9 | 5 | |||
Number of newly consolidated variable interest entities | 4 | ||||
Non-cash capital lease obligation reduction | $ | $ 0 | $ 24 | |||
Hotel VIEs [member] | |||||
Variable Interest Entity [Line Items] | |||||
Number of consolidated variable interest entities | 6 | 3 | |||
Non-cash capital lease obligation reduction | $ | $ 24 | ||||
Securitized Timeshare Debt VIEs [member] | |||||
Variable Interest Entity [Line Items] | |||||
Number of consolidated variable interest entities | 2 | 2 | |||
Condo management VIE [member] | |||||
Variable Interest Entity [Line Items] | |||||
Number of consolidated variable interest entities | 1 | ||||
Consolidated non-VIE entities [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Number of newly consolidated variable interest entities | 2 | ||||
Unconsolidated investments in affiliates [member] | |||||
Variable Interest Entity [Line Items] | |||||
Number of newly consolidated variable interest entities | 2 |
Consolidated Variable Interes57
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 810 | $ 609 | $ 511 | $ 566 |
Restricted cash and cash equivalents | 271 | 247 | ||
Accounts receivable, net | 1,005 | 876 | ||
Property and equipment, net | 9,107 | 9,119 | ||
Deferred income tax assets | 76 | 78 | ||
Other non-current assets | 313 | 274 | ||
Accounts payable and accrued liabilities, Current | 2,370 | 2,206 | ||
Long-term debt | 9,900 | 9,857 | ||
Timeshare debt | 448 | 506 | ||
Consolidated VIEs [member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 68 | 46 | ||
Restricted cash and cash equivalents | 23 | 15 | ||
Accounts receivable, net | 18 | 19 | ||
Property and equipment, net | 264 | 72 | ||
Financing receivables, net | 294 | 350 | ||
Deferred income tax assets | 68 | 62 | ||
Other non-current assets | 61 | 52 | ||
Accounts payable and accrued liabilities, Current | 49 | 35 | ||
Long-term debt | 391 | 219 | ||
Timeshare debt | $ 295 | $ 353 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt, including current maturities | $ 10,093 | $ 10,058 | |
Current maturities of long-term debt | [1] | (98) | (94) |
Long-term debt | $ 9,900 | 9,857 | |
Senior secured term loan facility [member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 3.50% | ||
Long-term debt, gross | $ 4,225 | 4,225 | |
Senior notes [member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 5.625% | ||
Long-term debt, gross | $ 1,500 | 1,500 | |
Commercial mortgage-backed securities loan [member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, weighted average interest rate | 4.15% | ||
Long-term debt, gross | [2] | $ 3,418 | 3,418 |
Mortgage loans [member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, weighted average interest rate | 4.22% | ||
Long-term debt, gross | [3] | $ 622 | 616 |
Other unsecured notes [member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 7.50% | ||
Long-term debt, gross | $ 54 | 54 | |
Capital lease obligations [member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, weighted average interest rate | 6.38% | ||
Long-term debt, gross | $ 274 | 245 | |
Long-term debt and capital lease obligations [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, including current maturities | 10,093 | ||
Unamortized deferred financing costs and discount | $ (95) | $ (107) | |
[1] | Net of unamortized deferred financing costs expected to be amortized in the next twelve months. | ||
[2] | The current maturity date of the variable-rate component of this borrowing is November 1, 2016. We assumed all extensions, which are solely at our option, were exercised. | ||
[3] | For mortgage loans with maturity date extensions that are solely at our option, we assumed they were exercised |
Debt - Additional Information (
Debt - Additional Information (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016USD ($)Hotel | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Long-term debt assumed | $ 0 | $ 450 | |
Restricted cash and cash equivalents | $ 271 | $ 247 | |
Commercial mortgage-backed securities loan [member] | |||
Debt Instrument [Line Items] | |||
Number of hotels securing CMBS loan | Hotel | 22 | ||
Timeshare debt [member] | |||
Debt Instrument [Line Items] | |||
Restricted cash and cash equivalents | $ 17 | 17 | |
Senior secured term loan facility [member] | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding, amount | 45 | ||
Line of credit facility, maximum borrowing capacity | 1,000 | ||
Line of credit facility, remaining borrowing capacity | 955 | ||
Mortgage loan agreements [member] | |||
Debt Instrument [Line Items] | |||
Restricted cash and cash equivalents | $ 80 | $ 49 | |
Mortgage loan [member] | |||
Debt Instrument [Line Items] | |||
Voluntary repayments of long-term debt | 525 | ||
Assumed mortgage loan [member] | |||
Debt Instrument [Line Items] | |||
Long-term debt assumed | $ 450 |
Debt - Timeshare Debt (Details)
Debt - Timeshare Debt (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Timeshare Debt [Line Items] | |||
Timeshare debt, including current maturities | $ 448 | $ 506 | |
Current maturities of timeshare debt | [1] | (88) | (110) |
Timeshare debt | $ 357 | 392 | |
Timeshare facility [member] | |||
Timeshare Debt [Line Items] | |||
Debt instrument, interest rate, stated percentage | 1.44% | ||
Timeshare debt, including current maturities | $ 150 | 150 | |
Securitized Timeshare Debt [member] | |||
Timeshare Debt [Line Items] | |||
Debt instrument, weighted average interest rate | 1.97% | ||
Timeshare debt, including current maturities | $ 298 | 356 | |
Timeshare debt [member] | |||
Timeshare Debt [Line Items] | |||
Timeshare debt, including current maturities | 448 | ||
Unamortized deferred financing costs | $ (3) | $ (4) | |
[1] | Net of unamortized deferred financing costs expected to be amortized in the next twelve months. |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt, including current maturities | $ 10,093 | $ 10,058 | |
Timeshare debt, including current maturities | 448 | $ 506 | |
Long-term debt and capital lease obligations [member] | |||
Debt Instrument [Line Items] | |||
2016 (remaining) | 112 | ||
2,017 | 71 | ||
2,018 | [1] | 3,451 | |
2,019 | [1] | 445 | |
2,020 | 4,255 | ||
Thereafter | [1] | 1,759 | |
Long-term debt, including current maturities | 10,093 | ||
Timeshare debt [member] | |||
Debt Instrument [Line Items] | |||
2016 (remaining) | 48 | ||
2,017 | 225 | ||
2,018 | 52 | ||
2,019 | 38 | ||
2,020 | 28 | ||
Thereafter | 57 | ||
Timeshare debt, including current maturities | $ 448 | ||
[1] | We assumed all extensions that are solely at our option for purposes of calculating maturity dates. |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | Jun. 30, 2016USD ($)Derivative |
Designated as hedging instrument [member] | Term loan interest rate swaps [member] | |
Derivative [Line Items] | |
Number of interest rate derivatives held | Derivative | 4 |
Derivative, notional amount | $ | $ 1,450 |
Derivative, swaption interest rate | 1.87% |
Not designated as hedging instrument [member] | CMBS loan interest rate cap [member] | |
Derivative [Line Items] | |
Number of interest rate derivatives held | Derivative | 1 |
Derivative, notional amount | $ | $ 862 |
Derivative, cap interest rate | 6.90% |
Not designated as hedging instrument [member] | Assumed mortgage loan interest rate cap [member] | |
Derivative [Line Items] | |
Number of interest rate derivatives held | Derivative | 1 |
Derivative, notional amount | $ | $ 337 |
Derivative, cap interest rate | 3.00% |
Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | |
Derivative [Line Items] | |
Derivative, notional amount | $ | $ 340 |
Number of foreign exchange forward contracts held | Derivative | 63 |
Derivative Instruments and He63
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Designated as hedging instrument [member] | Term loan interest rate swaps [member] | |||
Derivative [Line Items] | |||
Interest rate swaps, liability | $ 25 | $ 15 | |
Not designated as hedging instrument [member] | Interest rate cap [member] | |||
Derivative [Line Items] | |||
Interest rate swaps, assets | [1] | 0 | 0 |
Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | |||
Derivative [Line Items] | |||
Interest rate swaps, assets | 7 | 1 | |
Interest rate swaps, liability | $ 3 | $ 1 | |
[1] | The fair values of our interest rate caps were less than $1 million as of June 30, 2016 and December 31, 2015. |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities - Earnings Effect of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Designated as hedging instrument [member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Interest rate swaps, gain (loss) recognized in other comprehensive income (loss) | [1] | $ 0 | $ 3 | $ (10) | $ (8) |
Not designated as hedging instrument [member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | 2 | 8 | 3 | 6 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three and six months ended June 30, 2016 and 2015. |
Fair Value Measurements Schedul
Fair Value Measurements Schedule by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Timeshare debt | $ 448 | $ 506 | |
Capital lease obligations [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, gross | 274 | 245 | |
Non-recourse debt of consolidated VIEs [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, gross | 39 | 32 | |
Level 1 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | 1,616 | 1,619 | |
Level 2 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 488 | 327 | |
Restricted cash equivalents | 20 | 18 | |
Interest rate swaps, liability | 25 | 15 | |
Level 3 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Timeshare financing receivables | 1,092 | 1,080 | |
Long-term debt | 8,290 | 8,267 | |
Timeshare debt | 448 | 506 | |
Carrying amount [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 488 | 327 | |
Restricted cash equivalents | 20 | 18 | |
Timeshare financing receivables | [1] | 981 | 976 |
Long-term debt | [2],[3] | 9,685 | 9,673 |
Timeshare debt | [2] | 445 | 502 |
Interest rate swaps, liability | $ 25 | $ 15 | |
[1] | Carrying amount includes allowance for loan loss. | ||
[2] | Carrying amount includes unamortized deferred financing costs and discount. | ||
[3] | Excludes capital lease obligations with a carrying value of $274 million and $245 million as of June 30, 2016 and December 31, 2015, respectively, and debt of consolidated VIEs with a carrying value of $39 million and $32 million, respectively. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits | $ 252 | $ 407 |
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 218 | |
Taxing Authority Proposed Tax Owed Adjustment | 874 | |
Accrual for Taxing Authority Proposed Tax Owed Adjustment | 46 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 27 | 27 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 1 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 209 | $ 377 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Net periodic pension cost | $ 2 | $ 3 | $ 3 | $ 6 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ (26) | $ (92) | $ (44) | $ (122) |
Unrecognized compensation costs related to unvested awards | $ 143 | $ 143 | ||
Unrecognized compensation costs related to unvested awards, weighted-average period | 2 years | |||
Shares of common stock reserved for future issuance | 62,117,847 | 62,117,847 | ||
Restricted stock units (RSUs) [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted during the period | 3,508,885 | |||
Weighted average grant-date fair value | $ 19.91 | |||
Restricted stock units (RSUs) [member] | Minimum [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Restricted stock units (RSUs) [member] | Maximum [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Employee stock option [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Options granted during the period | 1,509,451 | |||
Options, grants in period, weighted-average exercise price | $ 19.61 | |||
Options, expiration period | 10 years | |||
Options, grants in period, grant date fair value | $ 5.47 | |||
Options, exercisable, number | 885,644 | 885,644 | ||
Performance shares [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted during the period | 1,804,706 | |||
Vesting period | 3 years | |||
Relative shareholder return [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value | $ 20.81 | |||
Vesting rights, percentage | 50.00% | |||
EBITDA CAGR [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value | $ 19.61 | |||
Vesting rights, percentage | 50.00% | |||
Deferred share units [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value | $ 22.04 | |||
DSU shares issued | 34,099 | |||
2013 omnibus incentive plan [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 26 | $ 44 | ||
Promote plan and 2013 omnibus incentive plan [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 91 | 121 | ||
Promote plan [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 64 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Employee stock option [member] | 6 Months Ended | |
Jun. 30, 2016Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | 32.00% | [1] |
Dividend yield | 1.43% | [2] |
Risk-free interest rate | 1.36% | [3] |
Expected term (in years) | 6 years | [4] |
[1] | Due to limited trading history of our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption in addition to our historical and implied volatility. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. | |
[2] | Estimated based on the expected annualized dividend payment. | |
[3] | Based on the yields of U.S. Department of Treasury instruments with similar expected lives. | |
[4] | Estimated using the average of the vesting periods and the contractual term of the options. |
Share-Based Compensation - Sc70
Share-Based Compensation - Schedule of Performance Shares Valuation Assumptions (Details) - Relative shareholder return [member] | 6 Months Ended | |
Jun. 30, 2016Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | 31.00% | [1] |
Dividend yield | 0.00% | [2] |
Risk-free interest rate | 0.92% | [3] |
Expected term (in years) | 2 years 9 months | [4] |
[1] | Due to limited trading history of our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption in addition to our historical and implied volatility. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation. | |
[2] | As dividends are assumed to be reinvested in shares of common stock and dividends will not be paid to the participants of the performance shares unless the shares vest, we utilized a dividend yield of zero percent. | |
[3] | Based on the yields of U.S. Department of Treasury instruments with similar expected lives. | |
[4] | Midpoint of the 30-calendar day period preceding the end of the performance period. |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Plan Achievement Percentage (Details) - EBITDA CAGR [member] | 6 Months Ended |
Jun. 30, 2016 | |
Awards granted in 2014 [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Anticipated achievement percentage | 125% |
Awards granted in 2015 [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Anticipated achievement percentage | 88% |
Awards granted in 2016 [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Anticipated achievement percentage | 63% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of EPS, amount | 3 | 2 | 4 | 1 |
Net income attributable to Hilton Stockholders | $ 239 | $ 161 | $ 548 | $ 311 |
Basic EPS: | ||||
Weighted average shares outstanding | 988 | 987 | 988 | 986 |
Basic EPS | $ 0.24 | $ 0.16 | $ 0.56 | $ 0.32 |
Diluted EPS: | ||||
Weighted average shares outstanding | 991 | 989 | 990 | 989 |
Diluted EPS | $ 0.24 | $ 0.16 | $ 0.55 | $ 0.31 |
Accumulated Other Comprehensi73
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (784) | $ (628) | |
Other comprehensive income (loss) before reclassifications | (44) | (49) | |
Amounts reclassified from accumulated other comprehensive loss | 2 | 4 | |
Net current period other comprehensive income (loss) | (42) | (45) | |
Ending balance | (826) | (673) | |
Currency translation adjustment [member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | [1] | (580) | (446) |
Other comprehensive income (loss) before reclassifications | [1] | (37) | (42) |
Amounts reclassified from accumulated other comprehensive loss | [1] | (1) | 0 |
Net current period other comprehensive income (loss) | [1] | (38) | (42) |
Ending balance | [1] | (618) | (488) |
Pension liability adjustment [member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (194) | (179) | |
Other comprehensive income (loss) before reclassifications | (1) | (2) | |
Amounts reclassified from accumulated other comprehensive loss | 3 | 4 | |
Net current period other comprehensive income (loss) | 2 | 2 | |
Ending balance | (192) | (177) | |
Cash flow hedge adjustment [member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (10) | (3) | |
Other comprehensive income (loss) before reclassifications | (6) | (5) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Net current period other comprehensive income (loss) | (6) | (5) | |
Ending balance | $ (16) | $ (8) | |
[1] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Accumulated Other Comprehensi74
Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amounts reclassified from accumulated other comprehensive loss | $ (2) | $ (4) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Gains on net investment hedges | [1] | $ 1 | $ 0 | 1 | 0 |
Tax benefit | [2],[3] | 0 | 0 | 0 | 0 |
Total currency translation adjustment reclassifications for the period, net of taxes | 1 | 0 | 1 | 0 | |
Amortization of prior service credit (cost) | [4] | (1) | (1) | (2) | (2) |
Amortization of net gain (loss) | [4] | (2) | (2) | (3) | (4) |
Tax benefit | [2] | 1 | 1 | 2 | 2 |
Total pension liability adjustment reclassifications for the period, net of taxes | (2) | (2) | (3) | (4) | |
Amounts reclassified from accumulated other comprehensive loss | $ (1) | $ (2) | $ (2) | $ (4) | |
[1] | Reclassified out of accumulated other comprehensive loss to other gain (loss), net in our condensed consolidated statements of operations. | ||||
[2] | Reclassified out of accumulated other comprehensive loss to income tax expense in our condensed consolidated statements of operations. | ||||
[3] | The tax benefit was less than $1 million for the three and six months ended June 30, 2016. | ||||
[4] | Reclassified out of accumulated other comprehensive loss to general, administrative and other in our condensed consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). |
Business Segments - Hotel Prope
Business Segments - Hotel Properties by Segment (Detail) | 6 Months Ended | |
Jun. 30, 2016RoomTimeshareHotelInterval | Dec. 31, 2015Hotel | |
Segment Reporting Information [Line Items] | ||
Number of operating business segments | 3 | |
Number of hotels owned or leased by unconsolidated joint ventures | 15 | 16 |
Number of timeshare properties | Timeshare | 47 | |
Number of timeshare units | Interval | 7,645 | |
Ownership [member] | ||
Segment Reporting Information [Line Items] | ||
Number of owned and leased hotel properties | 143 | |
Number of owned and leased hotel rooms | Room | 57,996 | |
Number of wholly owned and leased hotels and resorts | 121 | |
Number of non-wholly owned hotel properties | 1 | |
Number of hotels of consolidated VIEs | 6 | |
Number of hotels owned or leased by unconsolidated joint ventures | 15 | |
Management and franchise [member] | ||
Segment Reporting Information [Line Items] | ||
Number of managed hotels | 537 | |
Number of franchised hotels | 4,000 | |
Number of managed and franchised hotel properties | 4,537 | |
Number of managed and franchised hotel rooms | Room | 710,225 | |
Timeshare [member] | ||
Segment Reporting Information [Line Items] | ||
Number of timeshare properties | 47 | |
Number of timeshare units | Timeshare | 7,645 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenue from Segment Amounts to Consolidated Amounts (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenues | $ 3,051 | $ 2,922 | $ 5,801 | $ 5,521 | |
Other revenues from managed and franchised properties | 1,166 | 1,061 | 2,237 | 2,011 | |
Rental and other fees | [1] | 7 | 5 | 13 | 11 |
Management, royalty and intellectual property fees | [2] | 38 | 36 | 71 | 66 |
Licensing fee | [3] | 11 | 11 | 21 | 20 |
Laundry services | [4] | 1 | 1 | 3 | 3 |
Other | [5] | 2 | 1 | 3 | 2 |
Ownership [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenues | 1,114 | 1,141 | 2,088 | 2,105 | |
Management and franchise [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenues | 471 | 434 | 880 | 825 | |
Timeshare [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenues | 336 | 319 | 662 | 640 | |
Operating segments [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenues | 1,921 | 1,894 | 3,630 | 3,570 | |
Other revenues for segment reconciliation [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenues | 23 | 21 | 45 | 42 | |
Intersegment eliminations [member] | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Total revenues | [6] | $ (59) | $ (54) | $ (111) | $ (102) |
[1] | Represents charges to our timeshare segment by our ownership segment. | ||||
[2] | Represents fees charged to our ownership segment by our management and franchise segment. | ||||
[3] | Represents fees charged to our timeshare segment by our management and franchise segment. | ||||
[4] | Represents charges to our ownership segment for services provided by our wholly owned laundry business. Revenues from our laundry business are included in other revenues. | ||||
[5] | Represents other intercompany charges, which are a benefit to the ownership segment and a cost to corporate and other. | ||||
[6] | Included the following intercompany charges that were eliminated in our condensed consolidated financial statements: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (in millions)Rental and other fees(a)$7 $5 $13 $11Management, royalty and intellectual property fees(b)38 36 71 66Licensing fee(c)11 11 21 20Laundry services(d)1 1 3 3Other(e)2 1 3 2Intersegment fees elimination$59 $54 $111 $102____________(a) Represents charges to our timeshare segment by our ownership segment.(b) Represents fees charged to our ownership segment by our management and franchise segment.(c) Represents fees charged to our timeshare segment by our management and franchise segment.(d) Represents charges to our ownership segment for services provided by our wholly owned laundry business. Revenues from our laundry business are included in other revenues. (e) Represents other intercompany charges, which are a benefit to the ownership segment and a cost to corporate and other. |
Business Segments - Reconcili77
Business Segments - Reconciliation of Adjusted EBITDA to Net Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | |||||
Interest expense | $ (147) | $ (149) | $ (286) | $ (293) | |
Income tax expense | (156) | (145) | (110) | (308) | |
Depreciation and amortization | (171) | (173) | (340) | (348) | |
Interest expense, income tax and depreciation and amortization included in equity in earnings from unconsolidated affiliates | (7) | (7) | (15) | (14) | |
Gain (loss) on sales of assets, net | 2 | (3) | 2 | 142 | |
Gain (loss) on foreign currency transactions | (13) | 5 | (25) | (13) | |
FF&E replacement reserve | (16) | (14) | (29) | (27) | |
Share-based compensation expense | (26) | (92) | (44) | (122) | |
Impairment loss | 0 | 0 | (15) | 0 | |
Other gain (loss), net | (5) | 18 | (5) | (7) | |
Other adjustment items | (23) | (50) | (38) | (69) | |
Net income | 244 | 167 | 554 | 317 | |
Operating segments [member] | |||||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | |||||
Adjusted EBITDA | 868 | 838 | 1,579 | 1,493 | |
Corporate and other [member] | |||||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | |||||
Adjusted EBITDA | [1] | (62) | (61) | (120) | (117) |
Ownership [member] | |||||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | |||||
Adjusted EBITDA | [1],[2] | 299 | 318 | 506 | 508 |
Management and franchise [member] | |||||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | |||||
Adjusted EBITDA | [1] | 471 | 434 | 880 | 825 |
Timeshare [member] | |||||
Reconciliation of Adjusted EBITDA to Net Income [Line Items] | |||||
Adjusted EBITDA | [1] | $ 98 | $ 86 | $ 193 | $ 160 |
[1] | Our measures of Adjusted EBITDA included intercompany charges that were eliminated in our condensed consolidated financial statements. Refer to the footnote to the segment revenues table above for the detail of the intercompany charges. | ||||
[2] | Includes unconsolidated affiliate Adjusted EBITDA. |
Business Segments - Schedule of
Business Segments - Schedule of Assets by Segment (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 25,853 | $ 25,622 |
Ownership [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 11,346 | 11,269 |
Management and franchise [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 10,327 | 10,392 |
Timeshare [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,067 | 1,935 |
Corporate and other [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,113 | $ 2,026 |
Business Segments - Schedule 79
Business Segments - Schedule of Capital Expenditures by Segment (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | $ 169 | $ 159 |
Ownership [member] | ||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | 153 | 148 |
Timeshare [member] | ||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | 11 | 5 |
Corporate and other [member] | ||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | $ 5 | $ 6 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)AgreementContract | Jun. 30, 2015USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies [Line Items] | ||||
Current liabilities | $ 2,663 | $ 2,443 | ||
Guarantees for debt and other obligations of third parties [member] | ||||
Commitments and Contingencies [Line Items] | ||||
Guarantor obligations, maximum exposure, undiscounted | $ 25 | |||
Guarantor obligations, term | four years to seven years | |||
Number of letters of credit pledged as collateral | 1 | |||
Letters of credit outstanding, amount | $ 25 | |||
Number of guarantees with pledged collateral | Agreement | 1 | |||
Management contract performance guarantees [member] | ||||
Commitments and Contingencies [Line Items] | ||||
Guarantor obligations, maximum exposure, undiscounted | $ 89 | |||
Guarantor obligations, term | 2019 to 2030 | |||
Number of contracts with performance guarantees | Contract | 7 | |||
Current liabilities | $ 8 | 8 | ||
Non-current liabilities | 22 | $ 25 | ||
Commitments for capital expenditures [member] | ||||
Commitments and Contingencies [Line Items] | ||||
Purchase commitment, remaining minimum amount committed | 84 | |||
Loan commitment [member] | ||||
Commitments and Contingencies [Line Items] | ||||
Long-term purchase commitment, amount | 60 | |||
Commitment payments year to date | 17 | $ 6 | ||
Other commitments, future minimum payments, remainder of fiscal year | 21 | |||
2017 fund commitment | 5 | |||
Timeshare inventory purchase commitment [member] | ||||
Commitments and Contingencies [Line Items] | ||||
Long-term purchase commitment, amount | $ 195 | |||
Long-term purchase commitment, time period | 4 years | |||
Commitment payments year to date | $ 11 | $ 17 | ||
Contractual obligation, future minimum payments due, remainder of fiscal year | 5 | |||
2017 contractual obligation | 8 | |||
2018 contractual obligation | 0 | |||
2019 contractual obligation | 182 | |||
Settlement guarantee [member] | ||||
Commitments and Contingencies [Line Items] | ||||
Guarantor obligations, maximum exposure, undiscounted | $ 17 | |||
Litigation settlement, amount | $ 75 |
Condensed Consolidating Guara81
Condensed Consolidating Guarantor Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Current Assets: | |||||
Cash and cash equivalents | $ 810 | $ 609 | $ 511 | $ 566 | |
Restricted cash and cash equivalents | 271 | 247 | |||
Accounts receivable, net | 1,005 | 876 | |||
Intercompany receivables | 0 | 0 | |||
Inventories | 459 | 442 | |||
Current portion of financing receivables, net | 129 | 129 | |||
Prepaid expenses | 186 | 147 | |||
Income taxes receivable | 18 | 97 | |||
Other | 52 | 38 | |||
Total current assets | 2,930 | 2,585 | |||
Property, Intangibles and Other Assets: | |||||
Property and equipment, net | 9,107 | 9,119 | |||
Financing receivables, net | 905 | 887 | |||
Investments in affiliates | 129 | 138 | |||
Investments in subsidiaries | 0 | 0 | |||
Goodwill | 5,862 | 5,887 | |||
Brands | 4,911 | 4,919 | |||
Management and franchise contracts, net | 1,077 | 1,149 | |||
Other intangible assets, net | 543 | 586 | |||
Deferred income tax assets | 76 | 78 | |||
Other | 313 | 274 | |||
Total property, intangibles and other assets | 22,923 | 23,037 | |||
Total assets | 25,853 | 25,622 | |||
Current Liabilities: | |||||
Accounts payable, accrued expenses and other | 2,370 | 2,206 | |||
Intercompany payables | 0 | 0 | |||
Current maturities of long-term debt | [1] | 98 | 94 | ||
Current maturities of timeshare debt | [2] | 88 | 110 | ||
Income taxes payable | 107 | 33 | |||
Total current liabilities | 2,663 | 2,443 | |||
Long-term debt | 9,900 | 9,857 | |||
Timeshare debt | 357 | 392 | |||
Deferred revenues | 161 | 283 | |||
Deferred income tax liabilities | 4,533 | 4,630 | |||
Liability for guest loyalty program | 833 | 784 | |||
Other | 1,060 | 1,282 | |||
Total liabilities | 19,507 | 19,671 | |||
Equity: | |||||
Total Hilton stockholders' equity | 6,375 | 5,985 | |||
Noncontrolling interests | (29) | (34) | |||
Total equity | 6,346 | 5,951 | 5,069 | 4,714 | |
Total liabilities and equity | 25,853 | 25,622 | |||
Eliminations [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany receivables | (67) | (89) | |||
Inventories | 0 | 0 | |||
Current portion of financing receivables, net | 0 | 0 | |||
Prepaid expenses | (6) | (21) | |||
Income taxes receivable | 0 | (23) | |||
Other | 0 | 0 | |||
Total current assets | (73) | (133) | |||
Property, Intangibles and Other Assets: | |||||
Property and equipment, net | (21) | 0 | |||
Financing receivables, net | 0 | 0 | |||
Investments in affiliates | 0 | 0 | |||
Investments in subsidiaries | (23,693) | (23,252) | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Deferred income tax assets | (17) | (27) | |||
Other | 0 | 0 | |||
Total property, intangibles and other assets | (23,731) | (23,279) | |||
Total assets | (23,804) | (23,412) | |||
Current Liabilities: | |||||
Accounts payable, accrued expenses and other | (6) | (21) | |||
Intercompany payables | (74) | (89) | |||
Current maturities of long-term debt | 0 | 0 | |||
Current maturities of timeshare debt | 0 | 0 | |||
Income taxes payable | 0 | (23) | |||
Total current liabilities | (80) | (133) | |||
Long-term debt | 0 | 0 | |||
Timeshare debt | 0 | 0 | |||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | (17) | (27) | |||
Liability for guest loyalty program | 0 | 0 | |||
Other | 0 | 0 | |||
Total liabilities | (97) | (160) | |||
Equity: | |||||
Total Hilton stockholders' equity | (23,707) | (23,252) | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | (23,707) | (23,252) | |||
Total liabilities and equity | (23,804) | (23,412) | |||
Parent [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany receivables | 0 | 0 | |||
Inventories | 0 | 0 | |||
Current portion of financing receivables, net | 0 | 0 | |||
Prepaid expenses | 0 | 0 | |||
Income taxes receivable | 0 | 0 | |||
Other | 0 | 0 | |||
Total current assets | 0 | 0 | |||
Property, Intangibles and Other Assets: | |||||
Property and equipment, net | 0 | 0 | |||
Financing receivables, net | 0 | 0 | |||
Investments in affiliates | 0 | 0 | |||
Investments in subsidiaries | 6,364 | 6,166 | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Deferred income tax assets | 11 | 24 | |||
Other | 0 | 0 | |||
Total property, intangibles and other assets | 6,375 | 6,190 | |||
Total assets | 6,375 | 6,190 | |||
Current Liabilities: | |||||
Accounts payable, accrued expenses and other | 0 | 0 | |||
Intercompany payables | 0 | 0 | |||
Current maturities of long-term debt | 0 | 0 | |||
Current maturities of timeshare debt | 0 | 0 | |||
Income taxes payable | 0 | 0 | |||
Total current liabilities | 0 | 0 | |||
Long-term debt | 0 | 0 | |||
Timeshare debt | 0 | 0 | |||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 0 | |||
Liability for guest loyalty program | 0 | 0 | |||
Other | 0 | 205 | |||
Total liabilities | 0 | 205 | |||
Equity: | |||||
Total Hilton stockholders' equity | 6,375 | 5,985 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 6,375 | 5,985 | |||
Total liabilities and equity | 6,375 | 6,190 | |||
Subsidiary Issuer [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Restricted cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany receivables | 0 | 0 | |||
Inventories | 0 | 0 | |||
Current portion of financing receivables, net | 0 | 0 | |||
Prepaid expenses | 0 | 0 | |||
Income taxes receivable | 0 | 0 | |||
Other | 0 | 0 | |||
Total current assets | 0 | 0 | |||
Property, Intangibles and Other Assets: | |||||
Property and equipment, net | 0 | 0 | |||
Financing receivables, net | 0 | 0 | |||
Investments in affiliates | 0 | 0 | |||
Investments in subsidiaries | 12,069 | 11,854 | |||
Goodwill | 0 | 0 | |||
Brands | 0 | 0 | |||
Management and franchise contracts, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Deferred income tax assets | 6 | 3 | |||
Other | 8 | 9 | |||
Total property, intangibles and other assets | 12,083 | 11,866 | |||
Total assets | 12,083 | 11,866 | |||
Current Liabilities: | |||||
Accounts payable, accrued expenses and other | 39 | 39 | |||
Intercompany payables | 0 | 0 | |||
Current maturities of long-term debt | (12) | (12) | |||
Current maturities of timeshare debt | 0 | 0 | |||
Income taxes payable | 0 | 0 | |||
Total current liabilities | 27 | 27 | |||
Long-term debt | 5,666 | 5,659 | |||
Timeshare debt | 0 | 0 | |||
Deferred revenues | 0 | 0 | |||
Deferred income tax liabilities | 0 | 0 | |||
Liability for guest loyalty program | 0 | 0 | |||
Other | 26 | 14 | |||
Total liabilities | 5,719 | 5,700 | |||
Equity: | |||||
Total Hilton stockholders' equity | 6,364 | 6,166 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 6,364 | 6,166 | |||
Total liabilities and equity | 12,083 | 11,866 | |||
Guarantor Subsidiaries [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 294 | 223 | 197 | 270 | |
Restricted cash and cash equivalents | 154 | 148 | |||
Accounts receivable, net | 598 | 501 | |||
Intercompany receivables | 67 | 89 | |||
Inventories | 437 | 419 | |||
Current portion of financing receivables, net | 59 | 55 | |||
Prepaid expenses | 80 | 39 | |||
Income taxes receivable | 18 | 120 | |||
Other | 9 | 9 | |||
Total current assets | 1,716 | 1,603 | |||
Property, Intangibles and Other Assets: | |||||
Property and equipment, net | 356 | 304 | |||
Financing receivables, net | 522 | 451 | |||
Investments in affiliates | 82 | 94 | |||
Investments in subsidiaries | 5,260 | 5,232 | |||
Goodwill | 3,851 | 3,851 | |||
Brands | 4,405 | 4,405 | |||
Management and franchise contracts, net | 820 | 877 | |||
Other intangible assets, net | 378 | 402 | |||
Deferred income tax assets | 0 | 0 | |||
Other | 187 | 165 | |||
Total property, intangibles and other assets | 15,861 | 15,781 | |||
Total assets | 17,577 | 17,384 | |||
Current Liabilities: | |||||
Accounts payable, accrued expenses and other | 1,647 | 1,542 | |||
Intercompany payables | 0 | 0 | |||
Current maturities of long-term debt | 0 | 0 | |||
Current maturities of timeshare debt | 0 | 0 | |||
Income taxes payable | 70 | 6 | |||
Total current liabilities | 1,717 | 1,548 | |||
Long-term debt | 55 | 54 | |||
Timeshare debt | 0 | 0 | |||
Deferred revenues | 160 | 282 | |||
Deferred income tax liabilities | 1,953 | 2,041 | |||
Liability for guest loyalty program | 833 | 784 | |||
Other | 790 | 821 | |||
Total liabilities | 5,508 | 5,530 | |||
Equity: | |||||
Total Hilton stockholders' equity | 12,069 | 11,854 | |||
Noncontrolling interests | 0 | 0 | |||
Total equity | 12,069 | 11,854 | |||
Total liabilities and equity | 17,577 | 17,384 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 516 | 386 | $ 314 | $ 296 | |
Restricted cash and cash equivalents | 117 | 99 | |||
Accounts receivable, net | 407 | 375 | |||
Intercompany receivables | 0 | 0 | |||
Inventories | 22 | 23 | |||
Current portion of financing receivables, net | 70 | 74 | |||
Prepaid expenses | 112 | 129 | |||
Income taxes receivable | 0 | 0 | |||
Other | 43 | 29 | |||
Total current assets | 1,287 | 1,115 | |||
Property, Intangibles and Other Assets: | |||||
Property and equipment, net | 8,772 | 8,815 | |||
Financing receivables, net | 383 | 436 | |||
Investments in affiliates | 47 | 44 | |||
Investments in subsidiaries | 0 | 0 | |||
Goodwill | 2,011 | 2,036 | |||
Brands | 506 | 514 | |||
Management and franchise contracts, net | 257 | 272 | |||
Other intangible assets, net | 165 | 184 | |||
Deferred income tax assets | 76 | 78 | |||
Other | 118 | 100 | |||
Total property, intangibles and other assets | 12,335 | 12,479 | |||
Total assets | 13,622 | 13,594 | |||
Current Liabilities: | |||||
Accounts payable, accrued expenses and other | 690 | 646 | |||
Intercompany payables | 74 | 89 | |||
Current maturities of long-term debt | 110 | 106 | |||
Current maturities of timeshare debt | 88 | 110 | |||
Income taxes payable | 37 | 50 | |||
Total current liabilities | 999 | 1,001 | |||
Long-term debt | 4,179 | 4,144 | |||
Timeshare debt | 357 | 392 | |||
Deferred revenues | 1 | 1 | |||
Deferred income tax liabilities | 2,597 | 2,616 | |||
Liability for guest loyalty program | 0 | 0 | |||
Other | 244 | 242 | |||
Total liabilities | 8,377 | 8,396 | |||
Equity: | |||||
Total Hilton stockholders' equity | 5,274 | 5,232 | |||
Noncontrolling interests | (29) | (34) | |||
Total equity | 5,245 | 5,198 | |||
Total liabilities and equity | $ 13,622 | $ 13,594 | |||
[1] | Net of unamortized deferred financing costs expected to be amortized in the next twelve months. | ||||
[2] | Net of unamortized deferred financing costs expected to be amortized in the next twelve months. |
Condensed Consolidating Guara82
Condensed Consolidating Guarantor Financial Information - Condensed Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Owned and leased hotels | $ 1,105 | $ 1,135 | $ 2,072 | $ 2,092 |
Management and franchise fees and other | 444 | 407 | 830 | 778 |
Timeshare | 336 | 319 | 662 | 640 |
Total revenues excluding reimbursement revenue | 1,885 | 1,861 | 3,564 | 3,510 |
Other revenues from managed and franchised properties | 1,166 | 1,061 | 2,237 | 2,011 |
Total revenues | 3,051 | 2,922 | 5,801 | 5,521 |
Expenses | ||||
Owned and leased hotels | 808 | 817 | 1,564 | 1,585 |
Timeshare | 223 | 220 | 440 | 454 |
Depreciation and amortization | 171 | 173 | 340 | 348 |
Impairment loss | 0 | 0 | 15 | 0 |
General, administrative and other | 132 | 221 | 245 | 348 |
Total expenses excluding cost of reimbursable expense | 1,334 | 1,431 | 2,604 | 2,735 |
Other expenses from managed and franchised properties | 1,166 | 1,061 | 2,237 | 2,011 |
Total expenses | 2,500 | 2,492 | 4,841 | 4,746 |
Gain (loss) on sales of assets, net | 2 | (3) | 2 | 142 |
Operating income | 553 | 427 | 962 | 917 |
Interest income | 4 | 2 | 7 | 8 |
Interest expense | (147) | (149) | (286) | (293) |
Equity in earnings from unconsolidated affiliates | 8 | 9 | 11 | 13 |
Gain (loss) on foreign currency transactions | (13) | 5 | (25) | (13) |
Other gain (loss), net | (5) | 18 | (5) | (7) |
Income before income taxes | 400 | 312 | 664 | 625 |
Income tax expense | (156) | (145) | (110) | (308) |
Income (Loss) After Taxes Before Income from Subsidiaries Net of Taxes | 244 | 167 | 554 | 317 |
Equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | 0 |
Net income | 244 | 167 | 554 | 317 |
Net income attributable to noncontrolling interests | (5) | (6) | (6) | (6) |
Net income attributable to Hilton Stockholders | 239 | 161 | 548 | 311 |
Comprehensive income (loss) | 192 | 362 | 510 | 272 |
Comprehensive income attributable to noncontrolling interests | (5) | (6) | (4) | (6) |
Comprehensive income attributable to Hilton stockholders | 187 | 356 | 506 | 266 |
Eliminations [Member] | ||||
Revenues | ||||
Owned and leased hotels | (8) | (5) | (15) | (12) |
Management and franchise fees and other | (26) | (25) | (54) | (50) |
Timeshare | 0 | 0 | 0 | 0 |
Total revenues excluding reimbursement revenue | (34) | (30) | (69) | (62) |
Other revenues from managed and franchised properties | (243) | (232) | (501) | (468) |
Total revenues | (277) | (262) | (570) | (530) |
Expenses | ||||
Owned and leased hotels | (24) | (23) | (49) | (45) |
Timeshare | (7) | (5) | (13) | (11) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment loss | 0 | |||
General, administrative and other | (3) | (2) | (7) | (6) |
Total expenses excluding cost of reimbursable expense | (34) | (30) | (69) | (62) |
Other expenses from managed and franchised properties | (243) | (232) | (501) | (468) |
Total expenses | (277) | (262) | (570) | (530) |
Gain (loss) on sales of assets, net | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in earnings from unconsolidated affiliates | 0 | 0 | 0 | 0 |
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | 0 |
Other gain (loss), net | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Income (Loss) After Taxes Before Income from Subsidiaries Net of Taxes | 0 | 0 | 0 | 0 |
Equity in earnings (losses) from subsidiaries | (661) | (687) | (973) | (994) |
Net income | (661) | (687) | (973) | (994) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton Stockholders | (661) | (687) | (973) | (994) |
Comprehensive income (loss) | (609) | (882) | (931) | (949) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | (609) | (882) | (931) | (949) |
Parent [Member] | ||||
Revenues | ||||
Owned and leased hotels | 0 | 0 | 0 | 0 |
Management and franchise fees and other | 0 | 0 | 0 | 0 |
Timeshare | 0 | 0 | 0 | 0 |
Total revenues excluding reimbursement revenue | 0 | 0 | 0 | 0 |
Other revenues from managed and franchised properties | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Expenses | ||||
Owned and leased hotels | 0 | 0 | 0 | 0 |
Timeshare | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment loss | 0 | |||
General, administrative and other | 0 | 0 | 0 | 0 |
Total expenses excluding cost of reimbursable expense | 0 | 0 | 0 | 0 |
Other expenses from managed and franchised properties | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Gain (loss) on sales of assets, net | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in earnings from unconsolidated affiliates | 0 | 0 | 0 | 0 |
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | 0 |
Other gain (loss), net | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | (4) | 192 | (5) |
Income (Loss) After Taxes Before Income from Subsidiaries Net of Taxes | 0 | (4) | 192 | (5) |
Equity in earnings (losses) from subsidiaries | 239 | 165 | 356 | 316 |
Net income | 239 | 161 | 548 | 311 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton Stockholders | 239 | 161 | 548 | 311 |
Comprehensive income (loss) | 187 | 356 | 506 | 266 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 187 | 356 | 506 | 266 |
Subsidiary Issuer [Member] | ||||
Revenues | ||||
Owned and leased hotels | 0 | 0 | 0 | 0 |
Management and franchise fees and other | 0 | 0 | 0 | 0 |
Timeshare | 0 | 0 | 0 | 0 |
Total revenues excluding reimbursement revenue | 0 | 0 | 0 | 0 |
Other revenues from managed and franchised properties | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Expenses | ||||
Owned and leased hotels | 0 | 0 | 0 | 0 |
Timeshare | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment loss | 0 | |||
General, administrative and other | 0 | 0 | 0 | 0 |
Total expenses excluding cost of reimbursable expense | 0 | 0 | 0 | 0 |
Other expenses from managed and franchised properties | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Gain (loss) on sales of assets, net | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Interest expense | (67) | (71) | (134) | (144) |
Equity in earnings from unconsolidated affiliates | 0 | 0 | 0 | 0 |
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | 0 |
Other gain (loss), net | 0 | 0 | 0 | 0 |
Income before income taxes | (67) | (71) | (134) | (144) |
Income tax expense | 25 | 27 | 51 | 55 |
Income (Loss) After Taxes Before Income from Subsidiaries Net of Taxes | (42) | (44) | (83) | (89) |
Equity in earnings (losses) from subsidiaries | 281 | 209 | 439 | 405 |
Net income | 239 | 165 | 356 | 316 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton Stockholders | 239 | 165 | 356 | 316 |
Comprehensive income (loss) | 239 | 167 | 350 | 311 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 239 | 167 | 350 | 311 |
Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Owned and leased hotels | 62 | 61 | 114 | 113 |
Management and franchise fees and other | 378 | 349 | 712 | 671 |
Timeshare | 319 | 298 | 628 | 597 |
Total revenues excluding reimbursement revenue | 759 | 708 | 1,454 | 1,381 |
Other revenues from managed and franchised properties | 1,276 | 1,169 | 2,492 | 2,250 |
Total revenues | 2,035 | 1,877 | 3,946 | 3,631 |
Expenses | ||||
Owned and leased hotels | 44 | 41 | 87 | 82 |
Timeshare | 226 | 221 | 445 | 457 |
Depreciation and amortization | 81 | 81 | 161 | 173 |
Impairment loss | 0 | |||
General, administrative and other | 98 | 194 | 180 | 288 |
Total expenses excluding cost of reimbursable expense | 449 | 537 | 873 | 1,000 |
Other expenses from managed and franchised properties | 1,276 | 1,169 | 2,492 | 2,250 |
Total expenses | 1,725 | 1,706 | 3,365 | 3,250 |
Gain (loss) on sales of assets, net | 0 | 1 | 0 | 0 |
Operating income | 310 | 172 | 581 | 381 |
Interest income | 3 | 1 | 5 | 7 |
Interest expense | (20) | (15) | (31) | (28) |
Equity in earnings from unconsolidated affiliates | 7 | 8 | 10 | 11 |
Gain (loss) on foreign currency transactions | (67) | (323) | (62) | (140) |
Other gain (loss), net | 0 | 0 | 0 | 0 |
Income before income taxes | 233 | (157) | 503 | 231 |
Income tax expense | (93) | 53 | (242) | (99) |
Income (Loss) After Taxes Before Income from Subsidiaries Net of Taxes | 140 | (104) | 261 | 132 |
Equity in earnings (losses) from subsidiaries | 141 | 313 | 178 | 273 |
Net income | 281 | 209 | 439 | 405 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton Stockholders | 281 | 209 | 439 | 405 |
Comprehensive income (loss) | 251 | 240 | 400 | 408 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 251 | 240 | 400 | 408 |
Non-Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Owned and leased hotels | 1,051 | 1,079 | 1,973 | 1,991 |
Management and franchise fees and other | 92 | 83 | 172 | 157 |
Timeshare | 17 | 21 | 34 | 43 |
Total revenues excluding reimbursement revenue | 1,160 | 1,183 | 2,179 | 2,191 |
Other revenues from managed and franchised properties | 133 | 124 | 246 | 229 |
Total revenues | 1,293 | 1,307 | 2,425 | 2,420 |
Expenses | ||||
Owned and leased hotels | 788 | 799 | 1,526 | 1,548 |
Timeshare | 4 | 4 | 8 | 8 |
Depreciation and amortization | 90 | 92 | 179 | 175 |
Impairment loss | 15 | |||
General, administrative and other | 37 | 29 | 72 | 66 |
Total expenses excluding cost of reimbursable expense | 919 | 924 | 1,800 | 1,797 |
Other expenses from managed and franchised properties | 133 | 124 | 246 | 229 |
Total expenses | 1,052 | 1,048 | 2,046 | 2,026 |
Gain (loss) on sales of assets, net | 2 | (4) | 2 | 142 |
Operating income | 243 | 255 | 381 | 536 |
Interest income | 1 | 1 | 2 | 1 |
Interest expense | (60) | (63) | (121) | (121) |
Equity in earnings from unconsolidated affiliates | 1 | 1 | 1 | 2 |
Gain (loss) on foreign currency transactions | 54 | 328 | 37 | 127 |
Other gain (loss), net | (5) | 18 | (5) | (7) |
Income before income taxes | 234 | 540 | 295 | 538 |
Income tax expense | (88) | (221) | (111) | (259) |
Income (Loss) After Taxes Before Income from Subsidiaries Net of Taxes | 146 | 319 | 184 | 279 |
Equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | 0 |
Net income | 146 | 319 | 184 | 279 |
Net income attributable to noncontrolling interests | (5) | (6) | (6) | (6) |
Net income attributable to Hilton Stockholders | 141 | 313 | 178 | 273 |
Comprehensive income (loss) | 124 | 481 | 185 | 236 |
Comprehensive income attributable to noncontrolling interests | (5) | (6) | (4) | (6) |
Comprehensive income attributable to Hilton stockholders | $ 119 | $ 475 | $ 181 | $ 230 |
Condensed Consolidating Guara83
Condensed Consolidating Guarantor Financial Information - Condensed Cash Flow Statement (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities: | ||
Net cash provided by operating activities | $ 655 | $ 648 |
Investing Activities: | ||
Capital expenditures for property and equipment | (169) | (159) |
Acquisitions, net of cash acquired | 0 | (1,410) |
Payments received on other financing receivables | 1 | 2 |
Issuance of other financing receivables | (18) | (6) |
Investments in affiliates | 0 | 5 |
Distributions from unconsolidated affiliates | 2 | 9 |
Issuance of intercompany receivables | 0 | |
Payments received on intercompany receivables | 0 | |
Proceeds from asset dispositions | 1 | 1,869 |
Change in restricted cash and cash equivalents | (14) | 0 |
Contract acquisition costs | (18) | (19) |
Capitalized software costs | (35) | (23) |
Net cash provided by (used in) investing activities | (222) | 258 |
Financing Activities: | ||
Borrowings | 0 | 34 |
Repayment of debt | (64) | (961) |
Intercompany borrowings | 0 | |
Repayment of intercompany borrowings | 0 | |
Change in restricted cash and cash equivalents | (32) | (29) |
Intercompany transfers | 0 | 0 |
Dividends paid | (138) | 0 |
Dividends paid to guarantors | 0 | 0 |
Distributions to noncontrolling interests | (4) | (4) |
Excess tax benefits from share-based compensation | 0 | 8 |
Net cash used in financing activities | (238) | (952) |
Effect of exchange rate changes on cash and cash equivalents | 6 | (9) |
Net increase (decrease) in cash and cash equivalents | 201 | (55) |
Cash and cash equivalents, beginning of period | 609 | 566 |
Cash and cash equivalents, end of period | 810 | 511 |
Eliminations [Member] | ||
Operating Activities: | ||
Net cash provided by operating activities | (54) | (68) |
Investing Activities: | ||
Capital expenditures for property and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | |
Payments received on other financing receivables | 0 | 0 |
Issuance of other financing receivables | 0 | 0 |
Investments in affiliates | 0 | |
Distributions from unconsolidated affiliates | 0 | 0 |
Issuance of intercompany receivables | 184 | |
Payments received on intercompany receivables | (184) | |
Proceeds from asset dispositions | 0 | 0 |
Change in restricted cash and cash equivalents | 0 | |
Contract acquisition costs | 0 | 0 |
Capitalized software costs | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Financing Activities: | ||
Borrowings | 0 | |
Repayment of debt | 0 | 0 |
Intercompany borrowings | (184) | |
Repayment of intercompany borrowings | 184 | |
Change in restricted cash and cash equivalents | 0 | 0 |
Intercompany transfers | 0 | 0 |
Dividends paid | 0 | |
Dividends paid to guarantors | 54 | 68 |
Distributions to noncontrolling interests | 0 | 0 |
Excess tax benefits from share-based compensation | 0 | |
Net cash used in financing activities | 54 | 68 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Parent [Member] | ||
Operating Activities: | ||
Net cash provided by operating activities | 0 | 0 |
Investing Activities: | ||
Capital expenditures for property and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | |
Payments received on other financing receivables | 0 | 0 |
Issuance of other financing receivables | 0 | 0 |
Investments in affiliates | 0 | |
Distributions from unconsolidated affiliates | 0 | 0 |
Issuance of intercompany receivables | 0 | |
Payments received on intercompany receivables | 0 | |
Proceeds from asset dispositions | 0 | 0 |
Change in restricted cash and cash equivalents | 0 | |
Contract acquisition costs | 0 | 0 |
Capitalized software costs | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Financing Activities: | ||
Borrowings | 0 | |
Repayment of debt | 0 | 0 |
Intercompany borrowings | 0 | |
Repayment of intercompany borrowings | 0 | |
Change in restricted cash and cash equivalents | 0 | 0 |
Intercompany transfers | 138 | 0 |
Dividends paid | (138) | |
Dividends paid to guarantors | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Excess tax benefits from share-based compensation | 0 | |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Subsidiary Issuer [Member] | ||
Operating Activities: | ||
Net cash provided by operating activities | 0 | 0 |
Investing Activities: | ||
Capital expenditures for property and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | |
Payments received on other financing receivables | 0 | 0 |
Issuance of other financing receivables | 0 | 0 |
Investments in affiliates | 0 | |
Distributions from unconsolidated affiliates | 0 | 0 |
Issuance of intercompany receivables | 0 | |
Payments received on intercompany receivables | 0 | |
Proceeds from asset dispositions | 0 | 0 |
Change in restricted cash and cash equivalents | 0 | |
Contract acquisition costs | 0 | 0 |
Capitalized software costs | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Financing Activities: | ||
Borrowings | 0 | |
Repayment of debt | 0 | (325) |
Intercompany borrowings | 0 | |
Repayment of intercompany borrowings | 0 | |
Change in restricted cash and cash equivalents | 0 | 0 |
Intercompany transfers | 0 | 325 |
Dividends paid | 0 | |
Dividends paid to guarantors | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Excess tax benefits from share-based compensation | 0 | |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Guarantor Subsidiaries [Member] | ||
Operating Activities: | ||
Net cash provided by operating activities | 211 | 300 |
Investing Activities: | ||
Capital expenditures for property and equipment | (19) | (14) |
Acquisitions, net of cash acquired | 0 | |
Payments received on other financing receivables | 0 | 1 |
Issuance of other financing receivables | (18) | (4) |
Investments in affiliates | 5 | |
Distributions from unconsolidated affiliates | 1 | 9 |
Issuance of intercompany receivables | (184) | |
Payments received on intercompany receivables | 184 | |
Proceeds from asset dispositions | 0 | 0 |
Change in restricted cash and cash equivalents | 0 | |
Contract acquisition costs | (16) | (11) |
Capitalized software costs | (35) | (23) |
Net cash provided by (used in) investing activities | (87) | (47) |
Financing Activities: | ||
Borrowings | 0 | |
Repayment of debt | 0 | 0 |
Intercompany borrowings | 0 | |
Repayment of intercompany borrowings | 0 | |
Change in restricted cash and cash equivalents | 0 | 0 |
Intercompany transfers | (53) | (334) |
Dividends paid | 0 | |
Dividends paid to guarantors | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Excess tax benefits from share-based compensation | 8 | |
Net cash used in financing activities | (53) | (326) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 71 | (73) |
Cash and cash equivalents, beginning of period | 223 | 270 |
Cash and cash equivalents, end of period | 294 | 197 |
Non-Guarantor Subsidiaries [Member] | ||
Operating Activities: | ||
Net cash provided by operating activities | 498 | 416 |
Investing Activities: | ||
Capital expenditures for property and equipment | (150) | (145) |
Acquisitions, net of cash acquired | (1,410) | |
Payments received on other financing receivables | 1 | 1 |
Issuance of other financing receivables | 0 | (2) |
Investments in affiliates | 0 | |
Distributions from unconsolidated affiliates | 1 | 0 |
Issuance of intercompany receivables | 0 | |
Payments received on intercompany receivables | 0 | |
Proceeds from asset dispositions | 1 | 1,869 |
Change in restricted cash and cash equivalents | (14) | |
Contract acquisition costs | (2) | (8) |
Capitalized software costs | 0 | 0 |
Net cash provided by (used in) investing activities | (135) | 305 |
Financing Activities: | ||
Borrowings | 34 | |
Repayment of debt | (64) | (636) |
Intercompany borrowings | 184 | |
Repayment of intercompany borrowings | (184) | |
Change in restricted cash and cash equivalents | (32) | (29) |
Intercompany transfers | (85) | 9 |
Dividends paid | 0 | |
Dividends paid to guarantors | (54) | (68) |
Distributions to noncontrolling interests | (4) | (4) |
Excess tax benefits from share-based compensation | 0 | |
Net cash used in financing activities | (239) | (694) |
Effect of exchange rate changes on cash and cash equivalents | 6 | (9) |
Net increase (decrease) in cash and cash equivalents | 130 | 18 |
Cash and cash equivalents, beginning of period | 386 | 296 |
Cash and cash equivalents, end of period | $ 516 | $ 314 |
Condensed Consolidating Guara84
Condensed Consolidating Guarantor Financial Information - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Subsidiary Issuer [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ownership percentage | 100.00% | 100.00% |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ownership percentage | 100.00% | 100.00% |
Senior notes [member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Long-term debt, gross | $ 1,500 | $ 1,500 |
Debt instrument, interest rate, stated percentage | 5.625% | |
Mortgage loan [member] | Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Long-term debt, gross | $ 448 |