Document
Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 07, 2018 | Jun. 30, 2017 | |
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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Period Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | hlt | ||
Entity Common Stock, Shares Outstanding | 316,118,115 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 12,628,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Current Assets: | |||
Cash and cash equivalents | $ 570 | $ 1,062 | |
Restricted cash and cash equivalents | 100 | 121 | |
Accounts receivable, net of allowance for doubtful accounts | 998 | 755 | |
Prepaid expenses | 111 | 89 | |
Income taxes receivable | 36 | 13 | |
Other | 171 | 39 | |
Current assets of discontinued operations | 0 | 1,478 | |
Total current assets | 1,986 | 3,557 | |
Intangibles and Other Assets: | |||
Goodwill | 5,190 | 5,218 | |
Brands | 4,890 | 4,848 | |
Management and franchise contracts, net | 909 | 963 | |
Other intangible assets, net | 433 | 447 | |
Property and equipment, net | 353 | 341 | |
Deferred income tax assets | 113 | 82 | |
Other | 434 | 408 | |
Intangibles and other assets of discontinued operations | 0 | 10,347 | |
Total intangibles and other assets | 12,322 | 22,654 | |
Total assets | 14,308 | 26,211 | |
Current Liabilities: | |||
Accounts payable, accrued expenses and other | 2,150 | 1,821 | |
Current maturities of long-term debt | 46 | 33 | |
Income taxes payable | 12 | 56 | |
Current liabilities of discontinued operations | 0 | 774 | |
Total current liabilities | 2,208 | 2,684 | |
Long-term debt | 6,556 | 6,583 | |
Deferred revenues | 97 | 42 | |
Deferred income tax liabilities | 1,063 | 1,778 | |
Liability for guest loyalty program | 839 | 889 | |
Other | 1,470 | 1,492 | |
Non-current liabilities of discontinued operations | 0 | 6,894 | |
Total liabilities | 12,233 | 20,362 | |
Commitments and contingencies | |||
Equity: | |||
Preferred stock, value, outstanding | 0 | 0 | |
Common stock, value, outstanding | 3 | 3 | [1] |
Treasury stock, value | (891) | 0 | |
Additional paid-in capital | 10,298 | 10,220 | [1] |
Accumulated deficit | (6,596) | (3,323) | |
Accumulated other comprehensive loss | (742) | (1,001) | |
Total Hilton stockholders' equity | 2,072 | 5,899 | |
Noncontrolling interests | 3 | (50) | |
Total equity | 2,075 | 5,849 | |
Total liabilities and equity | $ 14,308 | $ 26,211 | |
[1] | Balance as of December 31, 2016 was adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts receivable | $ 29 | $ 27 | |
Variable interest entities - current assets | 93 | 167 | |
Variable interest entities - property, intangibles and other assets | 171 | 569 | |
Variable interest entities - current liabilities | 58 | 124 | |
Variable interest entities - total liabilities | $ 271 | $ 766 | |
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 | [1] | 10,000,000,000 | 10,000,000,000 |
Common stock, issued shares | [1] | 331,054,014 | 329,351,581 |
Common stock, outstanding shares | [1] | 317,420,933 | 329,341,992 |
Treasury stock, shares | 13,633,081 | 9,589 | |
[1] | Balance as of December 31, 2016 was adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Revenues | ||||||
Franchise fees | $ 1,382 | $ 1,154 | $ 1,087 | |||
Base and other management fees | 336 | 242 | 230 | |||
Incentive management fees | 222 | 142 | 138 | |||
Owned and leased hotels | 1,450 | 1,452 | 1,596 | |||
Other revenues | 105 | 82 | 71 | |||
Total revenues excluding reimbursement revenue | 3,495 | 3,072 | 3,122 | |||
Other revenues from managed and franchised properties | 5,645 | 4,310 | 4,011 | |||
Total revenues | 9,140 | 7,382 | 7,133 | |||
Expenses | ||||||
Owned and leased hotels | 1,286 | 1,295 | 1,414 | |||
Depreciation and amortization | 347 | 364 | 385 | |||
General and administrative | 434 | 403 | 537 | |||
Other expenses | 56 | 66 | 49 | |||
Costs and expenses excluding cost of reimbursable expense | 2,123 | 2,128 | 2,385 | |||
Other expenses from managed and franchised properties | 5,645 | 4,310 | 4,011 | |||
Total expenses | 7,768 | 6,438 | 6,396 | |||
Gain on sales of assets, net | 0 | 8 | 163 | |||
Operating income | 1,372 | 952 | 900 | |||
Interest expense | (408) | (394) | (377) | |||
Gain (loss) on foreign currency transactions | 3 | (16) | (41) | |||
Loss on debt extinguishment | (60) | 0 | 0 | |||
Other non-operating income, net | 23 | 14 | 51 | |||
Income from continuing operations before income taxes | 930 | 556 | 533 | |||
Income tax benefit (expense) | 334 | (564) | 348 | |||
Income (loss) from continuing operations, net of taxes | 1,264 | (8) | 881 | |||
Income from discontinued operations, net of taxes | 0 | 372 | 535 | |||
Net income | 1,264 | 364 | 1,416 | |||
Net income attributable to noncontrolling interests | (5) | (16) | (12) | |||
Net income (loss) attributable to Hilton stockholders | $ 1,259 | $ 348 | $ 1,404 | |||
Earnings per share: Basic | ||||||
Net income (loss) from continuing operations per share | $ 3.88 | $ (0.05) | [1],[2] | $ 2.67 | [2] | |
Net income from discontinued operations per share | 0 | 1.11 | [1],[2] | 1.60 | [2] | |
Net income per share, basic | 3.88 | [1] | 1.06 | [2] | 4.27 | [2] |
Earnings per share: Diluted | ||||||
Net income (loss) from continuing operations per share | 3.85 | (0.05) | [1],[2] | 2.66 | [2] | |
Net income from discontinued operations per share | 0 | 1.11 | [2] | 1.60 | [2] | |
Net income per share, diluted | 3.85 | [1] | 1.06 | [1],[2] | 4.26 | [2] |
Cash dividends declared per share | $ 0.60 | $ 0.84 | [2] | $ 0.42 | [2] | |
[1] | The sum of the earnings (loss) per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. | |||||
[2] | Weighted average shares outstanding used in the computation of basic and diluted earnings (loss) per share and cash dividends declared per share for the years ended December 31, 2016 and 2015 was adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parentheticals) | Jan. 03, 2017 |
Income Statement [Abstract] | |
Reverse stock split | 1-for-3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 841 | $ 181 | $ 167 | $ 75 | $ (382) | $ 192 | $ 244 | $ 310 | $ 1,264 | $ 364 | $ 1,416 |
Other comprehensive income (loss), net of tax: | |||||||||||
Currency translation adjustment | 161 | (159) | (134) | ||||||||
Pension liability adjustment | 22 | (57) | (15) | ||||||||
Cash flow hedge adjustment | 13 | (2) | (7) | ||||||||
Total other comprehensive income (loss) | 196 | (218) | (156) | ||||||||
Comprehensive income | 1,460 | 146 | 1,260 | ||||||||
Comprehensive income attributable to noncontrolling interests | (5) | (15) | (12) | ||||||||
Comprehensive income attributable to Hilton stockholders | $ 1,455 | $ 131 | $ 1,248 |
Consolidated Statements of Com7
Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax | $ 32 | $ 19 | $ (8) |
Pension liability adjustment, tax | (8) | (2) | 10 |
Cash flow adjustment, tax | $ (7) | $ 2 | $ 4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | |||
Net income | $ 1,264 | $ 364 | $ 1,416 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization including discontinued operations | 347 | 686 | 692 |
Gain on sales of assets, net, including discontinued operations | 0 | (9) | (306) |
Loss (gain) on foreign currency transactions, including discontinued operations | (3) | 13 | 41 |
Loss on debt extinguishment | 60 | 0 | 0 |
Share-based compensation | 74 | 65 | 124 |
Amortization of deferred financing costs and other | 15 | 32 | 38 |
Distributions from unconsolidated affiliates | 1 | 22 | 26 |
Deferred income taxes, including discontinued operations | (727) | (79) | (479) |
Accounts receivable, net | (210) | (143) | (47) |
Inventories | 0 | 15 | (39) |
Prepaid expenses | (15) | 0 | (27) |
Income taxes receivable | (24) | 84 | 35 |
Other current assets | 7 | (2) | 32 |
Accounts payable, accrued expenses and other | 51 | 232 | 90 |
Income taxes payable | (43) | 28 | 13 |
Change in timeshare financing receivables | 0 | (54) | (49) |
Change in deferred revenues | 55 | (219) | (212) |
Change in liability for guest loyalty program | 29 | 154 | 64 |
Change in other liabilities | 8 | 199 | 154 |
Other | 35 | (23) | (120) |
Net cash provided by operating activities | 924 | 1,365 | 1,446 |
Investing Activities: | |||
Capital expenditures for property and equipment | (58) | (317) | (310) |
Acquisitions, net of cash acquired | 0 | 0 | (1,402) |
Proceeds from asset dispositions | 0 | 11 | 2,205 |
Contract acquisition costs | (75) | (55) | (37) |
Capitalized software costs | (75) | (81) | (62) |
Other | (14) | (36) | 20 |
Net cash provided by (used in) investing activities | (222) | (478) | 414 |
Financing Activities: | |||
Borrowings | 1,824 | 4,715 | 48 |
Repayment of debt | (1,860) | (4,359) | (1,624) |
Debt issuance costs and redemption premium | (69) | (76) | 0 |
Dividends paid | (195) | (277) | (138) |
Cash transferred in spin-offs of Park and HGV | (501) | 0 | 0 |
Repurchases of common stock | (891) | 0 | 0 |
Distributions to noncontrolling interests | (1) | (32) | (8) |
Tax withholdings on share-based compensation | (31) | (15) | (31) |
Net cash used in financing activities | 1,724 | 44 | 1,753 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 8 | (15) | (19) |
Net increase (decrease) in cash, restricted cash and cash equivalents | (1,014) | 828 | 88 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,183 | 633 | 628 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 | 140 |
Cash, restricted cash and cash equivalents, beginning of period | 1,684 | 856 | 768 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 670 | 1,183 | 633 |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 501 | 223 |
Cash, restricted cash and cash equivalents, end of period | $ 670 | $ 1,684 | $ 856 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [member] | Treasury 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 | [1] | 328,000,000 | |||||||||
Balance at Dec. 31, 2014 | $ 4,714 | $ 3 | [1] | $ 0 | $ 10,035 | [1] | $ (4,658) | $ (628) | $ (38) | ||
Share-based compensation, shares | 1,000,000 | ||||||||||
Share-based compensation | 115 | 115 | |||||||||
Net income | 1,416 | 1,404 | 12 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Currency translation adjustment | (134) | (134) | |||||||||
Pension liability adjustment | (15) | (15) | |||||||||
Cash flow hedge adjustment | (7) | (7) | |||||||||
Total other comprehensive income (loss) | (156) | (156) | |||||||||
Dividends | (138) | (138) | |||||||||
Excess tax benefits on equity awards | 8 | 8 | |||||||||
Distributions | (8) | (8) | |||||||||
Balance (shares) at Dec. 31, 2015 | [1] | 329,000,000 | |||||||||
Balance at Dec. 31, 2015 | 5,951 | $ 3 | [1] | 0 | 10,158 | [1] | (3,392) | (784) | (34) | ||
Share-based compensation | 62 | 62 | |||||||||
Net income | 364 | 348 | 16 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Currency translation adjustment | (159) | (158) | (1) | ||||||||
Pension liability adjustment | (57) | (57) | |||||||||
Cash flow hedge adjustment | (2) | (2) | |||||||||
Total other comprehensive income (loss) | (218) | (217) | (1) | ||||||||
Dividends | (279) | (279) | |||||||||
Deconsolidation of a variable interest entity | (4) | (4) | |||||||||
Distributions | $ (32) | 32 | |||||||||
Balance (shares) at Dec. 31, 2016 | 329,341,992 | [2] | 329,000,000 | [1] | |||||||
Balance at Dec. 31, 2016 | $ 5,849 | $ 3 | [1] | 0 | 10,220 | [1] | (3,323) | (1,001) | (50) | ||
Other comprehensive income (loss), net of tax: | |||||||||||
Cumulative effect of adoption of accounting principle | Accounting Standards Update 2015-02 [Member] | 5 | 5 | |||||||||
Share-based compensation, shares | 2,000,000 | ||||||||||
Share-based compensation | 77 | 77 | |||||||||
Repurchases of common stock, shares | (14,000,000) | ||||||||||
Repurchases of common stock | (891) | (891) | |||||||||
Net income | 1,264 | 1,259 | 5 | ||||||||
Currency translation adjustment | 161 | 161 | |||||||||
Pension liability adjustment | 22 | 22 | |||||||||
Cash flow hedge adjustment | 13 | 13 | |||||||||
Total other comprehensive income (loss) | 196 | 196 | |||||||||
Dividends | (196) | (196) | |||||||||
Spin-offs of Park and HGV | (4,223) | (4,335) | 63 | 49 | |||||||
Distributions | $ (1) | (1) | |||||||||
Balance (shares) at Dec. 31, 2017 | 317,420,933 | [2] | 317,000,000 | ||||||||
Balance at Dec. 31, 2017 | $ 2,075 | $ 3 | $ (891) | 10,298 | (6,596) | $ (742) | $ 3 | ||||
Other comprehensive income (loss), net of tax: | |||||||||||
Cumulative effect of adoption of accounting principle | Accounting Standards Update 2016-09 [Member] | $ 0 | $ 1 | $ (1) | ||||||||
[1] | Common stock and additional paid-in capital were adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. | ||||||||||
[2] | Balance as of December 31, 2016 was adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |
Consolidated Statements of St10
Consolidated Statements of Stockholders' Equity (Parentheticals) | Jan. 03, 2017 |
Statement of Stockholders' Equity [Abstract] | |
Reverse stock split | 1-for-3 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization 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 and is engaged in managing, franchising, owning and leasing hotels and resorts, including timeshare properties. As of December 31, 2017 , we managed, franchised, owned or leased 5,236 hotel and resort properties, totaling 848,014 rooms in 105 countries and territories. In March 2017, HNA Tourism Group Co., Ltd and certain affiliates (together, "HNA") acquired 82.5 million shares of Hilton common stock from affiliates of The Blackstone Group L.P. ("Blackstone"). As of December 31, 2017 , HNA and Blackstone beneficially owned approximately 26.0 percent and 5.4 percent of our common stock, respectively. Spin-offs On January 3, 2017, we completed the spin-offs of a portfolio of hotels and resorts, as well as our timeshare business, into two independent, publicly traded companies: Park Hotels & Resorts Inc. ("Park") and Hilton Grand Vacations Inc. ("HGV"), respectively, (the "spin-offs"). See Note 3 : " Discontinued Operations " for additional information. Reverse Stock Split On January 3, 2017, we completed a 1-for-3 reverse stock split of Hilton's outstanding common stock (the "Reverse Stock Split"). The authorized number of shares of common stock was reduced from 30,000,000,000 to 10,000,000,000 , par value remained $0.01 per share and the authorized number of shares of preferred stock remained 3,000,000,000 . Stockholders entitled to fractional shares as a result of the Reverse Stock Split received a cash payment in lieu of receiving fractional shares. All share and share-related information presented for periods prior to the Reverse Stock Split have been retrospectively adjusted to reflect the decreased number of shares resulting from the Reverse Stock Split. The retrospective adjustments resulted in the reclassification of $7 million from common stock to additional paid-in capital in the consolidated balance sheets and consolidated statements of stockholders’ equity for periods prior to the date of the Reverse Stock Split, as the par value was unchanged, but the number of outstanding shares was reduced. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation These consolidated financial statements present the consolidated financial position and the results of operations of Hilton as of and for the years ended December 31, 2017 , 2016 and 2015 giving effect to the spin-offs, with the combined historical financial results of Park and HGV reflected as discontinued operations. Unless otherwise indicated, the information in the notes to the consolidated financial statements refer only to Hilton's continuing operations and do not include discussion of balances or activity of Park or HGV. Principles of Consolidation The consolidated financial statements include the accounts of Hilton, our wholly owned subsidiaries and entities in which we have a controlling financial interest, including variable interest entities ("VIEs") where we are the primary beneficiary. Entities in which we have a controlling financial interest generally comprise majority owned real estate ownership and management enterprises. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other ownership interests. If the entity is considered to be a VIE, we determine whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. All material intercompany transactions and balances have been eliminated in consolidation. References in these financial statements to net income (loss) attributable to Hilton stockholders and Hilton stockholders' equity (deficit) do not include noncontrolling interests, which represent the outside ownership interests of our consolidated, non-wholly owned entities and are reported separately. Reclassifications Certain amounts in previously issued financial statements have been reclassified to conform to the presentation following the spin-offs, which includes the reclassification of the combined financial position and results of operations of Park and HGV as discontinued operations as of December 31, 2016 and for the years ended December 31, 2016 and 2015 . Additionally, certain line items in the consolidated statements of operations have been revised to reflect the operating structure of Hilton subsequent to the spin-offs. The primary changes to the consolidated statements of operations are the disaggregation of management and franchise fee revenues and the combination of certain line items that were individually immaterial. Use of Estimates The preparation of financial statements in conformity with United States of America ("U.S.") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Summary of Significant Accounting Policies Revenue Recognition Revenues are primarily derived from the following sources and are generally recognized as services are rendered and when collectibility is reasonably assured. Amounts received in advance of revenue recognition are deferred as liabilities. • Franchise fees represent fees earned in connection with the licensing of one of our brands, usually under long-term contracts with a hotel owner. We charge a monthly franchise royalty fee, generally based on a percentage of the hotel's gross room revenue, and, for our full service brands, a percentage of gross food and beverage revenues and other revenues, as applicable. Additionally, we receive one-time upfront fees upon execution of certain franchise contracts, that consist of application, initiation and other fees for new hotels entering the system, when there is a change in ownership or a contract is extended. We also earn license fees from a license agreement with HGV and co-brand credit card arrangements for the use of certain Hilton marks and intellectual property. We recognize franchise fee revenue as the fees are earned, which is when all material services or conditions have been performed or satisfied by us. • Base and other management fees and incentive management fees represent fees earned from hotels that we manage, usually under long-term contracts with the property owner. Management fees usually include a base fee, which is generally a percentage of the hotel's gross revenue, and an incentive fee, which is typically based on a fixed or variable percentage of hotel operating profits and in some cases may be subject to a stated return threshold to the owner, normally measured over a one-calendar year period. We recognize base fees as revenue when earned in accordance with the terms of the management agreement. For incentive fees, we recognize those amounts that would be due if the contract was terminated at the financial statement date. • Owned and leased hotel revenues primarily consist of hotel room rentals, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking) related to owned, leased and consolidated properties owned or leased by non-wholly owned entities. Revenues are recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. • Other revenues include revenues generated by the incidental support of hotel operations for owned, leased, managed and franchised hotels, including purchasing operations, and other operating income. Purchasing revenues include any amounts received for vendor rebate arrangements that we participate in as a manager of hotel properties. • Other revenues from managed and franchised properties represent contractual reimbursements to us by property owners for the payroll and related costs for properties that we manage where the property employees are legally our responsibility, as well as certain other operating costs of the managed and franchised properties’ operations, marketing expenses and other expenses associated with our brands and shared services that are paid from fees collected in advance from these properties when the costs are incurred. The corresponding expenses are presented as other expenses from managed and franchised properties in our consolidated statements of operations, resulting in no effect on operating income (loss) or net income (loss). We are required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in revenues. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. Discontinued Operations In determining whether a group of assets that is disposed (or to be disposed) should be presented as a discontinued operation, we analyze whether the group of assets being disposed represents a component of the Company; that is, whether it had historic operations and cash flows that were clearly distinguished, both operationally and for financial reporting purposes. In addition, we consider whether the disposal represents a strategic shift that has or will have a major effect on our operations and financial results. The results of discontinued operations, as well as any gain or loss on the disposal, if applicable, are aggregated and separately presented in our consolidated statements of operations, net of income taxes. The historical financial position of discontinued operations are aggregated and separately presented in our consolidated balance sheets. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of three months or less. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents include cash balances established as security for certain guarantees, ground rent and property tax escrows, insurance and furniture, fixtures and equipment replacement reserves required under certain lease agreements. Allowance for Doubtful Accounts An allowance for doubtful accounts is provided on accounts receivable when losses are probable based on historical collection activity and current business conditions. Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below the carrying amount. In connection with the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone (the "Merger"), we recorded goodwill representing the excess purchase price over the fair value of the other identified assets and liabilities. We evaluate goodwill for potential impairment by comparing the carrying value of our reporting units to their fair value. Our reporting units are the same as our operating segments as described in Note 19 : " Business Segments ." We perform this evaluation annually or at an interim date if indicators of impairment exist. In any year we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If we cannot determine qualitatively that the fair value is in excess of the carrying value, or we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit with its carrying value, including goodwill. The estimated fair value is based on internal projections of expected future cash flows and operating plans, as well as market conditions relative to the operations of our reporting units. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired; otherwise, an impairment loss is recognized within our consolidated statements of operations in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Brands We own, lease, manage and franchise hotels under our portfolio of brands. There are no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these brands and, accordingly, the useful lives of these brands are considered to be indefinite. As of December 31, 2017 , our brand portfolio included Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio - A Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton and our timeshare brand, Hilton Grand Vacations. At the time of the Merger, our brands were assigned a fair value based on a common valuation technique known as the relief from royalty approach. Canopy by Hilton, Curio - A Collection by Hilton, Tapestry Collection by Hilton, Tru by Hilton, and Home2 Suites by Hilton were launched post-Merger and, as such, they were not assigned fair values and we do not have any intangible assets for these brands recorded in our consolidated balances sheets. We evaluate our brands for impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of the brand is below the carrying value. If we cannot determine qualitatively that the fair value is in excess of the carrying value, or we decide to bypass the qualitative assessment, we perform a quantitative analysis. If a brand’s estimated current fair value is less than its respective carrying value, the excess of the carrying value over the estimated fair value is recognized in our consolidated statements of operations within impairment loss. Intangible Assets with Finite Useful Lives We have certain finite lived intangible assets that were initially recorded at their fair value at the time of the Merger. These intangible assets consist of management contracts, franchise contracts, leases, certain proprietary technologies and our guest loyalty program, Hilton Honors. Additionally, we capitalize direct and incremental management and franchise contract acquisition costs, including development commissions, as finite lived intangible assets. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which are generally as follows: management contracts recorded at the Merger ( 13 to 16 years), management contract acquisition costs ( 20 to 30 years), franchise contracts recorded at the Merger ( 12 to 13 years), franchise contract acquisition costs ( 10 to 20 years), leases ( 12 to 35 years), Hilton Honors ( 16 years) and capitalized software development costs ( 3 years). We capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses. Internal and external costs incurred in connection with development of upgrades or enhancements that result in additional information technology functionality are also capitalized. These capitalized costs are amortized on a straight-line basis over the estimated useful life of the software. These capitalized costs are recorded in other intangible assets in our consolidated balance sheets. We review all finite lived intangible assets for impairment when circumstances indicate that their carrying values may not be recoverable. If the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the fair value in our consolidated statements of operations. Property and Equipment Property and equipment are recorded at cost. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements ( 8 to 40 years), furniture and equipment ( 3 to 8 years) and computer equipment ( 3 to 5 years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of potential impairment. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset group. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset group, the excess of the net book value over the estimated fair value is recorded in our consolidated statements of operations within impairment loss. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset group using discount and capitalization rates deemed reasonable for the type of assets, as well as prevailing market conditions, appraisals, recent similar transactions in the market and, if appropriate and available, current estimated net sales proceeds from pending offers. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred, which is generally upon acquisition, construction or development or through the normal operation of the asset. Hilton Honors Hilton Honors is a guest loyalty and marketing program provided to hotels and resort properties. Nearly all of our owned, leased, managed and franchised hotels and resort properties participate in the Hilton Honors program. Hilton Honors members earn points based on their spending at our participating properties and through participation in affiliated partner programs. When points are earned by Hilton Honors members, the property or affiliated partner pays Hilton Honors based on an estimated cost per point for the estimated cost of award redemptions, as well as the costs of operating the program, which include marketing, promotion, communication and administrative expenses. Hilton Honors member points are accumulated and may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties, including, but not limited to, airlines, car rentals, cruises, vacation packages, shopping and dining. We record a liability for the payments received from participating hotels and program partners in an amount equal to the estimated cost per point of the future redemption obligation. We engage outside actuaries to assist in determining the fair value of the future award redemption obligation using statistical formulas that project future point redemptions based on factors that include historical experience, an estimate of "breakage" (points that will never be redeemed), an estimate of the points that will eventually be redeemed and the cost of reimbursing hotels and other third parties in respect to other redemption opportunities available to members. Revenue is recognized by participating hotels and resorts only when points that have been redeemed for hotel stay certificates are used by members or their designees at the respective properties. Additionally, when members of the Hilton Honors loyalty program redeem award certificates at our owned and leased hotels, we recognize owned and leased hotel revenues in our consolidated statements of operations. Fair Value Measurements - Valuation Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (i.e., an exit price). We use the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our own assumptions about the data market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized below: • Level 1 - Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. • Level 3 - Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Proper classification of fair value measurements within the valuation hierarchy is considered each reporting period. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. Derivative Instruments We use derivative instruments as part of our overall strategy to manage our exposure to market risks associated with fluctuations in interest rates and foreign currency exchange rates. We regularly monitor the financial stability and credit standing of the counterparties to our derivative instruments. We do not enter into derivative financial instruments for trading or speculative purposes. We record all derivatives at fair value. On the date the derivative contract is entered into, we may designate the derivative as one of the following: a hedge of a forecasted transaction or the variability of cash flows to be paid ("cash flow hedge"), a hedge of the fair value of a recognized asset or liability ("fair value hedge") or a hedge of our investment in a foreign operation ("net investment hedge"). Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge or net investment hedge are recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss) until they are reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings. If we do not specifically designate a derivative as one of the above, changes in the fair value of the undesignated derivative instrument are reported in current period earnings. Likewise, the ineffective portion of designated derivative instruments is reported in current period earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged in the consolidated statements of cash flows, while cash flows from undesignated derivative financial instruments are included as an investing activity. If we determine that we qualify for and will designate a derivative as a hedging instrument, at the designation date we formally document all relationships between hedging activities, including the risk management objective and strategy for undertaking various hedge transactions. This process includes matching all derivatives that are designated as cash flow hedges to specific forecasted transactions, linking all derivatives designated as fair value hedges to specific assets and liabilities in the consolidated balance sheets and determining the foreign currency exposure of the net investment of the foreign operation for a net investment hedge. On a quarterly basis, we assess the effectiveness of our designated hedges in offsetting the variability in the cash flows or fair values of the hedged assets or obligations using the Hypothetical Derivative Method. This method compares the cumulative change in fair value of each hedging instrument to the cumulative change in fair value of a hypothetical hedging instrument, which has terms that identically match the critical terms of the respective hedged transactions. Thus, the hypothetical hedging instrument is presumed to perfectly offset the hedged cash flows. Ineffectiveness results when the cumulative change in the fair value of the hedging instrument exceeds the cumulative change in the fair value of the hypothetical hedging instrument. We discontinue hedge accounting prospectively, when the derivative is no longer highly effective as a hedge, the underlying hedged transaction is no longer probable or the hedging instrument expires, is sold, terminated or exercised. Currency Translation The United States dollar ("USD") is our reporting currency and is the functional currency of our consolidated and unconsolidated entities operating in the U.S. The functional currency for our consolidated and unconsolidated entities operating outside of the U.S. is the currency of the primary economic environment in which the respective entity operates. Assets and liabilities measured in foreign currencies are translated into USD at the prevailing exchange rates in effect as of the financial statement date and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive income (loss) in our consolidated balance sheets. Income and expense accounts are translated at the average exchange rate for the period. Gains and losses from foreign exchange rate changes related to transactions denominated in a currency other than an entity's functional currency or intercompany receivables and payables denominated in a currency other than an entity’s functional currency that are not of a long-term investment nature are recognized as gain (loss) on foreign currency transactions in our consolidated statements of operations. Where certain specific evidence indicates intercompany receivables and payables will not be settled in the foreseeable future and are of a long-term nature, gains and losses from foreign exchange rate changes are recognized as other comprehensive income (loss) in our consolidated statements of comprehensive income (loss). Insurance We are self-insured for losses up to our third-party insurance deductibles for general liability, auto liability and workers' compensation at our owned, leased and managed properties that participate in our programs. We purchase insurance coverage for claim amounts that exceed our deductible obligations. In addition, through our captive insurance subsidiary, we participate in reinsurance arrangements that provide coverage for a certain portion of our deductibles and/or acts as a financial intermediary for claim payments on our self-insurance program, along with property and casualty insurance for certain international hotels that are reinsured by other third parties. These obligations and reinsurance arrangements can cause timing differences in the recognition of assets, liabilities, gains and losses between reporting periods, although these amounts ultimately offset when the related claims are settled. Our insurance reserves are accrued based on our deductibles related to the estimated ultimate cost of claims that occurred during the covered period, which includes claims incurred but not reported, for which we will be responsible. These estimates are prepared with the assistance of outside actuaries and consultants. The ultimate cost of claims for a covered period may differ from our original estimates. Share-based Compensation As part of our 2013 and 2017 Omnibus Incentive Plans, we award time-vesting restricted stock units and restricted stock ("RSUs"), nonqualified stock options ("options") and performance-vesting restricted stock units and restricted stock (collectively, "performance shares") to our eligible employees and deferred share units ("DSUs") to members of our board of directors. • RSUs generally vest in equal annual installments over two or three years from the date of grant. Vested RSUs generally will be settled for the Company's common stock, with the exception of certain awards that will be settled in cash. The grant date fair value is equal to the closing stock price on the grant date. • Options vest over three years in equal annual installments from the grant date and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances. The exercise price is equal to the closing price of the Company’s common stock on the date of grant. The grant date fair value is estimated using the Black-Scholes-Merton option-pricing model. • Performance shares are settled at the end of a three -year performance period with 50 percent of the shares subject to achievement based on a measure of the Company’s Adjusted earnings before interest expense, a provision for income taxes and depreciation and amortization ("EBITDA") compound annual growth rate ("CAGR") ("EBITDA CAGR") and the other 50 percent of the shares subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR ("FCF CAGR"). The total number of performance shares that vest related to each performance measure is based on an achievement factor that, in both cases, ranges from a zero to a 200 percent payout. The grant date fair value for these awards is equal to the closing stock price on the grant date. • DSUs are issued to our independent directors and are fully vested and non-forfeitable on the grant date. DSUs are settled for shares of the Company's common stock, which are deliverable upon the earlier of termination of the individual's service on our board of directors or a change in control. The grant date fair value is equal to the closing stock price on the grant date. We recognize these share-based payment transactions when services from the employees are received and recognize either a corresponding increase in additional paid-in capital or accounts payable, accrued expenses and other in our consolidated balance sheets, depending on whether the instruments granted satisfy the equity or liability classification criteria. The measurement objective for these equity awards is the estimated fair value at the grant date of the equity instruments that we are obligated to issue when employees have rendered the requisite service and satisfied any other conditions necessary to earn the right to benefit from the instruments. The compensation expense for an award classified as an equity instrument is recognized ratably over the requisite service period. The requisite service period is the period during which an employee is required to provide service in exchange for an award. Liability awards are measured based on the award’s fair value and the fair value is remeasured at each reporting date until the date of settlement. Compensation expense for each period until settlement is based on the change (or a portion of the change, depending on the percentage of the requisite service that has been rendered at the reporting date) in the fair value of the instrument for each reporting period. Compensation expense for awards with performance conditions is recognized over the requisite service period if it is probable that the performance condition will be satisfied. If such performance conditions are not considered probable until they occur, no compensation expense for these awards is recognized. Income Taxes We account for income taxes using the asset and liability method. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts and tax attribute carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the respective temporary differences or operating loss or tax credit carryforwards are expected to be recovered or settled. The realization of deferred tax assets and tax loss and tax credit carryforwards is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. On December 22, 2017, H.R.1, known as the Tax Cuts and Jobs Act of 2017 (the "TCJ Act") was signed into law and includes widespread changes to the Internal Revenue Code including, among other items, a reduction to the federal corporate tax rate to 21 percent, a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred and the creation of new taxes on certain foreign earnings. As of December 31, 2017, we had not completed our accounting for the tax effects of enactment of the TCJ Act; however, where possible, we made a reasonable estimate of the effects on our existing deferred t |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On January 3, 2017, we completed the spin-offs of Park and HGV via a pro rata distribution to each of Hilton's stockholders of record, as of close of business on December 15, 2016, of 100 percent of the outstanding common stock of each of Park and HGV (the "Distribution"). Each Hilton stockholder received one share of Park common stock for every five shares of Hilton common stock and one share of HGV common stock for every ten shares of Hilton common stock. Following the spin-offs, Hilton did not retain any ownership interest in Park or HGV. Both Park and HGV have their common stock listed on the New York Stock Exchange under the symbols "PK" and "HGV," respectively. In connection with the spin-offs, on January 2, 2017, Hilton entered into several agreements with Park and HGV that govern Hilton’s relationship with them following the Distribution, including: (i) a Distribution Agreement; (ii) an Employee Matters Agreement; (iii) a Tax Matters Agreement; (iv) a Transition Services Agreement ("TSA"); (v) a License Agreement with HGV; (vi) a Tax Stockholders Agreement; and (vii) management and franchise contracts with Park. Under the TSA with Park and HGV, Hilton or one of its affiliates provides Park and HGV certain services for a period of up to two years from the date of the TSA to facilitate an orderly transition following the Distribution. The services that Hilton agreed to provide under the TSA include: finance; information technology; human resources and compensation; facilities; legal and compliance; and other services. The entity providing the services is compensated for any such services at agreed amounts as set forth in the TSA. The License Agreement with HGV granted HGV the exclusive right, for an initial term of 100 years , to use certain Hilton marks and intellectual property in its timeshare business, subject to the terms and conditions of the agreement. HGV pays a royalty fee of five percent of gross revenues, as defined in the agreement, to Hilton quarterly in arrears, as well as specified additional fees and reimbursements. Additionally, during the term of the License Agreement, HGV will participate in Hilton’s guest loyalty program, Hilton Honors. Under the management and franchise contracts with Park, Park pays agreed upon fees for various services that Hilton provides to support the operations of their hotels, as well as royalty fees for the licensing of Hilton's hotel brands. The terms of the management contracts generally include a base management fee, calculated as three percent of gross hotel revenues or receipts, and an incentive management fee, calculated as six percent of a specified measure of hotel earnings as determined in accordance with the applicable management contract. Additionally, payroll and related costs, certain other operating costs, marketing expenses and other expenses associated with Hilton's brands and shared services are directly reimbursed to Hilton by Park pursuant to the terms of the management and franchise contracts. Financial Information During the year ended December 31, 2017 , we recognized $157 million of management and franchise fees and $1,197 million of other revenues from managed and franchised properties under our management and franchise contracts with Park. We also recognized $87 million of franchise fees under our License Agreement with HGV. Prior to the spin-offs, the results of Park were reported in our ownership segment and the results of HGV were reported in our timeshare segment. Following the spin-offs, we do not report a timeshare segment, as we no longer have timeshare operations. The following table presents the assets and liabilities of Park and HGV that were included in discontinued operations in our consolidated balance sheet: December 31, 2016 (in millions) ASSETS Current Assets: Cash and cash equivalents $ 341 Restricted cash and cash equivalents 160 Accounts receivable, net 250 Prepaid expenses 48 Inventories 527 Current portion of financing receivables, net 136 Other 16 Total current assets of discontinued operations (variable interest entities - $92) 1,478 Intangibles and Other Assets: Goodwill 604 Management and franchise contracts, net 56 Other intangible assets, net 60 Property and equipment, net 8,589 Deferred income tax assets 35 Financing receivables, net 895 Investments in affiliates 81 Other 27 Total intangibles and other assets of discontinued operations (variable interest entities - $405) 10,347 TOTAL ASSETS OF DISCONTINUED OPERATIONS $ 11,825 LIABILITIES Current Liabilities: Accounts payable, accrued expenses and other $ 632 Current maturities of long-term debt 65 Current maturities of timeshare debt 73 Income taxes payable 4 Total current liabilities of discontinued operations (variable interest entities - $81) 774 Long-term debt 3,437 Timeshare debt 621 Deferred revenues 22 Deferred income tax liabilities 2,797 Other 17 TOTAL LIABILITIES OF DISCONTINUED OPERATIONS (variable interest entities - $506) $ 7,668 The following table presents the results of operations of Park and HGV that were included in discontinued operations in our consolidated statements of operations: Year Ended December 31, 2016 2015 (in millions) Total revenues from discontinued operations $ 4,281 $ 4,139 Expenses Owned and leased hotels 1,805 1,754 Timeshare 948 897 Depreciation and amortization 322 307 Other 298 153 Total expenses from discontinued operations 3,373 3,111 Gain on sales of assets, net 1 143 Operating income from discontinued operations 909 1,171 Non-operating loss, net (210 ) (208 ) Income from discontinued operations before income taxes 699 963 Income tax expense (327 ) (428 ) Income from discontinued operations, net of taxes 372 535 Income from discontinued operations attributable to noncontrolling interests, net of taxes (6 ) (7 ) Income from discontinued operations attributable to Hilton stockholders, net of taxes $ 366 $ 528 The following table presents selected financial information of Park and HGV that was included in our consolidated statements of cash flows: Year Ended December 31, 2016 2015 (in millions) Non-cash items included in net income: Depreciation and amortization $ 322 $ 307 Gain on sales of assets, net (1 ) (143 ) Investing activities: Capital expenditures for property and equipment $ (255 ) $ (243 ) Acquisitions, net of cash acquired — (1,402 ) Proceeds from asset dispositions — 1,866 |
Disposals
Disposals | 12 Months Ended |
Dec. 31, 2017 | |
Disposals [Abstract] | |
Disposals | Disposals Hilton Sydney In July 2015, we completed the sale of the Hilton Sydney for a purchase price of 442 million Australian dollars (equivalent to $340 million as of the closing date of the sale). As a result of the sale, we recognized a pre-tax gain of $163 million included in gain on sales of assets, net in our consolidated statement of operations for the year ended December 31, 2015. The pre-tax gain was net of transaction costs, a goodwill reduction of $36 million and a reclassification of a currency translation adjustment of $25 million from accumulated other comprehensive loss into earnings concurrent with the disposition. The goodwill reduction was due to our consideration of the Hilton Sydney property as a business within our ownership segment; therefore, we reduced the carrying value 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. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of December 31, 2017 and 2016 , we consolidated three VIEs: two entities that lease hotel properties and one management company. We are the primary beneficiaries of these consolidated 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 consolidated VIEs are only available to settle the obligations of the respective entities. Our consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following: December 31, 2017 2016 (in millions) Cash and cash equivalents $ 73 $ 57 Accounts receivable, net 16 14 Property and equipment, net 57 52 Deferred income tax assets 56 58 Other non-current assets 57 53 Accounts payable, accrued expenses and other 43 33 Long-term debt (1) 212 212 ____________ (1) Includes capital lease obligations of $191 million as of December 31, 2017 and 2016. During the years ended December 31, 2017 , 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 December 2016, one of our VIEs that we previously consolidated sold the hotel asset that it owned. As a result of the sale, we deconsolidated the VIE, as we no longer had the power to direct the activities that most significantly affected its performance. Our retained interest in the entity was accounted for as an equity investment and was included in other non-current assets in our consolidated balance sheet as of December 31, 2016 . In July 2017, we received a distribution in complete liquidation of our remaining interest in the entity. 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 . Since the capital lease asset was previously fully impaired, this amount was recognized as a gain in other non-operating income, net in our consolidated statement of operations during the year ended December 31, 2015 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management and Franchise (2) Total (in millions) Balance as of December 31, 2015 $ 193 $ 5,087 $ 5,280 Foreign currency translation (9 ) (53 ) (62 ) Balance as of December 31, 2016 184 5,034 5,218 Spin-off of Park (91 ) — (91 ) Foreign currency translation 11 52 63 Balance as of December 31, 2017 $ 104 $ 5,086 $ 5,190 ____________ (1) The balances as of December 31, 2016 and 2015 exclude goodwill of $2,707 million and $2,710 million, respectively, and accumulated impairment losses of $2,103 million that were attributable to Park and included in non-current assets of discontinued operations in our consolidated balance sheets. Amounts for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: Gross Carrying Value Accumulated Impairment Losses Net Carrying Value (in millions) Balance as of December 31, 2015 $ 865 $ (672 ) $ 193 Foreign currency translation (9 ) — (9 ) Balance as of December 31, 2016 856 (672 ) 184 Spin-off of Park (423 ) 332 (91 ) Foreign currency translation 11 — 11 Balance as of December 31, 2017 $ 444 $ (340 ) $ 104 (2) There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2017, 2016 and 2015. Intangible Assets Changes to our brands intangible assets from December 31, 2016 to December 31, 2017 were due to foreign currency translations. Amortizing intangible assets were as follows: December 31, 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,242 $ (1,715 ) $ 527 Contract acquisition costs and other 457 (75 ) 382 $ 2,699 $ (1,790 ) $ 909 Other amortizing intangible assets: Leases (1) $ 301 $ (153 ) $ 148 Capitalized software 585 (428 ) 157 Hilton Honors (1) 341 (217 ) 124 Other 38 (34 ) 4 $ 1,265 $ (832 ) $ 433 December 31, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,221 $ (1,534 ) $ 687 Contract acquisition costs and other 343 (67 ) 276 $ 2,564 $ (1,601 ) $ 963 Other amortizing intangible assets: Leases (1) $ 276 $ (126 ) $ 150 Capitalized software 510 (362 ) 148 Hilton Honors (1) 335 (192 ) 143 Other 37 (31 ) 6 $ 1,158 $ (711 ) $ 447 ____________ (1) Represents intangible assets that were initially recorded at their fair value as part of the Merger. Amortization expe nse on our amortizing intangible assets was $288 million , $312 million and $325 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, including $67 million , $87 million and $87 million , respectively, of amortization expense on our capitalized software . We estimated future amortization expense on our amortizing intangible assets as of December 31, 2017 to be as follows: Year (in millions) 2018 $ 286 2019 274 2020 223 2021 87 2022 75 Thereafter 397 $ 1,342 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment were as follows: December 31, 2017 2016 (in millions) Land $ 12 $ 12 Buildings and leasehold improvements 428 384 Furniture and equipment 346 357 Construction-in-progress 17 14 803 767 Accumulated depreciation (450 ) (426 ) $ 353 $ 341 As of December 31, 2017 and 2016 , property and equipment included approximately $90 million and $122 million , respectively, of capital lease assets primarily consisting of buildings and leasehold improvements, net of $90 million and $74 million , respectively, of accumulated depreciation. Depreciation expense on property and equipment was $59 million , $52 million and $60 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts Payable, Accrued Expenses and Other Accounts payable, accrued expenses and other were as follows: December 31, 2017 2016 (in millions) Accrued employee compensation and benefits $ 502 $ 438 Accounts payable 282 314 Liability for guest loyalty program, current 622 543 Insurance reserves, current 264 122 Other accrued expenses 480 404 $ 2,150 $ 1,821 Other accrued expenses consist of deferred revenues, deposit liabilities related to hotel operations, taxes, rent, interest and other accrued balances. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term Debt Long-term debt balances, including obligations for capital leases, and associated interest rates as of December 31, 2017 were as follows: December 31, 2017 2016 (in millions) Senior notes due 2021 $ — $ 1,500 Senior notes with a rate of 4.250% due 2024 1,000 1,000 Senior notes with a rate of 4.625% due 2025 900 — Senior notes with a rate of 4.875% due 2027 600 — Senior secured term loan facility due 2020 — 750 Senior secured term loan facility with a rate of 3.55%, due 2023 3,929 3,209 Capital lease obligations with an average rate of 6.33%, due 2021 to 2030 233 227 Other debt with an average rate of 2.65%, due 2018 to 2026 21 20 6,683 6,706 Less: unamortized deferred financing costs and discount (81 ) (90 ) Less: current maturities of long-term debt (1) (46 ) (33 ) $ 6,556 $ 6,583 ____________ (1) Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. Senior Notes In March 2017, we issued $900 million aggregate principal amount of 4.625% Senior Notes due 2025 (the "2025 Senior Notes") and $600 million aggregate principal amount of 4.875% Senior Notes due 2027 (the "2027 Senior Notes"), and incurred $21 million of debt issuance costs. Interest on the 2025 Senior Notes and the 2027 Senior Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning from October 2017. We used the net proceeds of the 2025 Senior Notes and the 2027 Senior Notes, along with available cash, to redeem in full our $1.5 billion 5.625% Senior Notes due 2021 (the "2021 Senior Notes"), plus accrued and unpaid interest. In connection with the repayment, we paid a redemption premium of $42 million and accelerated the recognition of $18 million of unamortized debt issuance costs, which were included in loss on debt extinguishment in our consolidated statement of operations for the year ended December 31, 2017 . In August 2016, Hilton issued $1.0 billion aggregate principal amount of 4.25% Senior Notes due 2024 (the "2024 Senior Notes") and incurred $20 million of debt issuance costs. Interest on the 2024 Senior Notes is payable semi-annually in arrears on March 1 and September 1 of each year, beginning from March 2017. The 2024 Senior Notes, 2025 Senior Notes and 2027 Senior Notes are guaranteed on a senior unsecured basis by Hilton and certain of its wholly owned subsidiaries. See Note 23 : " Condensed Consolidating Guarantor Financial Information " for additional details. Senior Secured Credit Facilities Our senior secured credit facility consists of a $1.0 billion senior secured revolving credit facility (the "Revolving Credit Facility") and a senior secured term loan facility (the "Term Loans"). The obligations of our senior secured credit facility are unconditionally and irrevocably guaranteed by Hilton and substantially all of our direct or indirect wholly owned domestic subsidiaries. In November 2016, we amended the Revolving Credit Facility to extend the maturity to November 2021 and incurred $5 million of debt issuance costs. As of December 31, 2017 , we had $41 million of letters of credit outstanding under our Revolving Credit Facility and a borrowing capacity of $959 million . We are required to pay a commitment fee of 0.125 percent per annum under the Revolving Credit Facility in respect of the unused commitments thereunder. In August 2016, we amended the Term Loans pursuant to which $3,225 million of outstanding Term Loans were converted into a new tranche of Term Loans due October 2023 with an interest rate of LIBOR plus 250 basis points . In connection with this modification, we recognized an $8 million discount as a reduction to long-term debt in our consolidated balance sheet and $4 million of other debt issuance costs included in other non-operating income, net in our consolidated statement of operations for the year ended December 31, 2016. In March 2017, we amended the Term Loans again pursuant to which the remaining $750 million of outstanding Term Loans due in 2020 were extended, aligning their maturity with the tranche of Term Loans due 2023. Additionally, concurrent with the extension, the entire balance of the Term Loans was repriced with an interest rate of LIBOR plus 200 basis points . In connection with the refinancing and modification of the Term Loans, we incurred $3 million of debt issuance costs, which were included in other non-operating income, net in our consolidated statement of operations for the year ended December 31, 2017 . Debt Maturities The contractual maturities of our long-term debt as of December 31, 2017 , were as follows: Year (in millions) 2018 $ 54 2019 55 2020 57 2021 58 2022 58 Thereafter 6,401 $ 6,683 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other Liabilities Other long-term liabilities were as follows: December 31, 2017 2016 (in millions) Program surplus $ 549 $ 446 Pension obligations 165 215 Other long-term tax liabilities 397 480 Deferred employee compensation and benefits 117 113 Insurance reserves 162 131 Other 80 107 $ 1,470 $ 1,492 Program surplus represents obligations to operate our marketing, sales and brand programs on behalf of our hotel owners. Our obligations related to the insurance claims are expected to be satisfied, on average, over the next three years . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Cash Flow Hedges In May 2017, we began hedging foreign exchange-based cash flow variability in certain of our foreign currency denominated management and franchise fees using forward contracts (the "Fee Forward Contracts"), and elected to designate these Fee Forward Contracts as cash flow hedges for accounting purposes. As of December 31, 2017 , the Fee Forward Contracts had an aggregate notional amount of $31 million and maturities of 24 months or less. In March 2017, we entered into two interest rate swap agreements with notional amounts of $1.6 billion and $750 million , which swap one-month LIBOR on the Term Loans to fixed rates of 1.98 percent and 2.02 percent, respectively, and expire in March 2022 . We elected to designate these interest rate swaps as cash flow hedges for accounting purposes. Non-designated Hedges As of December 31, 2017 , we held short-term forward contracts with an aggregate notional amount of $353 million to offset exposure to fluctuations in certain of our foreign currency denominated cash balances. We elected not to designate these forwar d contracts as hedging instruments. Depending on the fair value of each contract, we classify it as an asset or liability. In August and September 2016, we dedesignated four interest rate swaps (the "2013 Interest Rate Swaps") that were previously designated as cash flow hedges as they no longer met the criteria for hedge accounting. These interest rate swaps, which had an aggregate notional amount of $1.45 billion and swapped three-month LIBOR on the Term Loans to a fixed rate of 1.87 percent , were settled in March 2017. Fair Value of Derivative Instruments We measure our derivative instruments at fair value, which is estimated using a discounted cash flow analysis, and we consider the inputs used to measure the fair value as Level 2 within the fair value hierarchy. The discounted cash flow analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves and spot and forward rates, as applicable, as well as option volatility. The fair values of our derivative instruments in our consolidated balance sheets were as follows: December 31, Balance Sheet Classification 2017 2016 (in millions) Cash Flow Hedges: Interest rate swaps Other non-current assets $ 11 N/A Forward contracts Accounts payable, accrued expenses and other 1 N/A Non-designated Hedges: Interest rate swaps Other liabilities N/A $ 12 Forward contracts Other current assets 4 3 Forward contracts Accounts payable, accrued expenses and other 1 4 Earnings Effect of Derivative Instruments The gains and losses recognized in our consolidated statements of operations and consolidated statements of comprehensive income (loss) before any effect for income taxes were as follows: Year Ended December 31, Classification of Gain (Loss) Recognized 2017 2016 2015 (in millions) Cash Flow Hedges (1)(2) : Interest rate swaps Other comprehensive income (loss) $ 11 $ (7 ) $ (11 ) Forward contracts Other comprehensive income (loss) (1 ) N/A N/A Non-designated Hedges: Interest rate swaps Other non-operating income, net 2 4 N/A Interest rate swaps (3) Interest expense (10 ) (4 ) N/A Forward contracts Gain (loss) on foreign currency transactions 12 7 11 ____________ (1) There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the years ended December 31, 2017 , 2016 and 2015 . (2) The earnings effect of the Fee Forward Contracts on fee revenues for the year ended December 31, 2017 was less than $1 million. (3) These amounts are related to the dedesignation of the 2013 Interest Rate Swaps as cash flow hedges and were reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
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 values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below (see Note 11 : " Derivative Instruments and Hedging Activities " for the fair value information of our derivatives and Note 15 : " Employee Benefit Plans " for fair value information of our pension assets): December 31, 2017 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 284 $ — $ 284 $ — Restricted cash equivalents 12 — 12 — Liabilities: Long-term debt (1) 6,348 2,575 — 3,954 December 31, 2016 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 782 $ — $ 782 $ — Restricted cash equivalents 11 — 11 — Liabilities: Long-term debt (1) 6,369 2,516 — 4,006 ____________ (1) The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. The fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of December 31, 2017 and 2016 . 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 and time deposits. The estimated fair values were based on available market pricing information of similar financial instruments. 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases We lease hotel properties, land, equipment and corporate office space under operating and capital leases. As of December 31, 2017 and 2016 , we leased 59 hotels and 61 hotels, respectively, under operating leases, and four hotels under capital leases. As of December 31, 2017 and 2016 , two of these capital leases were liabilities of VIEs that we consolidated and were non-recourse to us. Our leases expire at various dates from 2018 through 2196 , with varying renewal options, and the majority expire before 2026 . Our operating leases may require minimum rent payments, contingent rent payments based on a percentage of revenue or income or rent payments equal to the greater of a minimum rent or contingent rent. In addition, we may be required to pay some, or all, of the capital costs for property and equipment in the hotel during the term of the lease. The future minimum rent payments under non-cancelable leases as of December 31, 2017 , were as follows: Operating Capital Non-Recourse Year (in millions) 2018 $ 192 $ 5 $ 19 2019 174 5 24 2020 175 6 24 2021 165 6 24 2022 130 5 24 Thereafter 1,025 34 158 Total minimum rent payments $ 1,861 61 273 Less: amount representing interest (19 ) (82 ) Present value of net minimum rent payments $ 42 $ 191 Rent expense for all operating leases was as follows: Year Ended December 31, 2017 2016 2015 (in millions) Minimum rentals $ 183 $ 224 $ 244 Contingent rentals 101 98 104 $ 284 $ 322 $ 348 The amortization of assets recorded under capital leases is included in depreciation and amortization in our consolidated statements of operations and is recognized over the shorter of the lease term or useful life of the asset. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our tax provision includes federal, state and foreign income taxes payable. The domestic and foreign components of income from continuing operations before income taxes were as follows: Year Ended December 31, 2017 2016 2015 (in millions) U.S. income before tax $ 791 $ 934 $ 262 Foreign income (loss) before tax 139 (378 ) 271 Income from continuing operations before income taxes $ 930 $ 556 $ 533 The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2017 2016 2015 (in millions) Current: Federal $ 239 $ 441 $ 164 State 59 143 51 Foreign 95 70 64 Total current 393 654 279 Deferred: Federal (679 ) (116 ) (606 ) State (24 ) 50 (86 ) Foreign (24 ) (24 ) 65 Total deferred (727 ) (90 ) (627 ) Total provision (benefit) for income taxes $ (334 ) $ 564 $ (348 ) Reconciliations of our tax provision at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2017 2016 2015 (in millions) Statutory U.S. federal income tax provision $ 326 $ 194 $ 187 State income taxes, net of U.S. federal tax benefit 26 23 17 Impact of foreign operations 1 32 3 Effects of the Tax Cuts and Jobs Act (665 ) — — Nontaxable liquidation of subsidiaries — — (628 ) Corporate restructuring — 482 — Change in deferred tax asset valuation allowance (48 ) (22 ) 24 Provision (benefit) for uncertain tax positions 38 (139 ) 18 Non-deductible share-based compensation — — 23 Non-deductible goodwill — — 13 Other, net (12 ) (6 ) (5 ) Provision (benefit) for income taxes $ (334 ) $ 564 $ (348 ) On December 22, 2017, the TCJ Act was signed into law, which permanently reduces the corporate income tax rate from a graduated 35 percent to a flat 21 percent rate and imposes a one-time transition tax on earnings of foreign subsidiaries that were previously deferred. As of December 31, 2017, we had not completed our accounting for the tax effects of enactment of the TCJ Act; however, where possible, as described below, we made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. In other cases, we were not able to make a reasonable estimate and continued to account for those items based on the provisions of the tax laws that were in effect immediately prior to enactment. For the items for which we were able to determine a reasonable estimate, we recognized a provisional benefit of $665 million , of which $517 million was the result of the remeasurement of U.S. deferred tax assets and liabilities and other tax liabilities. Provisional amounts • Deferred tax assets and liabilities and other tax liabilities. We remeasured deferred tax assets and liabilities and other tax liabilities based on the rates at which they are expected to reverse in the future, which is generally 21 percent . The provisional amounts recorded related to the remeasurement of our deferred tax assets and liabilities, uncertain tax position reserves and other tax liabilities were income tax benefits of $517 million , $33 million and $84 million , respectively. However, this remeasurement is based on estimates as of the enactment date of the TCJ Act and our existing analysis of the numerous complex tax law changes in the TCJ Act. As we finalize our analysis of the tax law changes in the TCJ Act, including the impact on our current year tax return filing positions throughout the 2018 fiscal year, we will update our provisional amounts for this remeasurement. • Foreign taxation changes. A one-time transition tax is applied to foreign earnings previously not subjected to U.S. tax. The one-time transition tax is based on our total post-1986 earnings and profits ("E&P") that were previously deferred from U.S. income taxes, but is assessed at a lower tax rate than the federal corporate tax rate of 35 percent . We recorded a provisional amount for our one-time transition tax liability for our foreign subsidiaries based on estimates, as of the enactment date of the TCJ Act, for our controlled foreign subsidiaries and estimates of the total post-1986 E&P for noncontrolled foreign subsidiaries. Additionally, the language in the TCJ Act is not specific enough to address all aspects of the calculation of the transition tax and leaves certain components of the calculation open to interpretation. The U.S. Treasury department is expected to issue regulations to provide clarification. We will update our provisional amounts related to the transition tax for the E&P of our noncontrolled foreign subsidiaries as further guidance is provided by the U.S. Treasury department. We previously recorded a federal deferred tax liability for our deferred earnings at the statutory 35 percent rate. The application of the transition tax results in the deferred earnings previously recorded at 35 percent being subjected to a lower rate, resulting in a provisional income tax benefit of $15 million . We had not recorded certain deferred tax assets, related primarily to E&P deficits, for some foreign subsidiaries based upon an expectation that no tax benefit from such assets would be realized within the foreseeable future. The recognition of tax benefits from the deferred tax assets previously not recorded resulted in a provisional income tax benefit of $16 million . We have not made sufficient progress on our analysis of the TCJ Act’s impact on our recognition of deferred tax assets and liabilities for outside basis differences in our investments in foreign subsidiaries due to the complexity of these calculations on both our U.S. and foreign tax positions and uncertainty regarding the impact of new taxes on certain foreign earnings and, therefore, have not recorded provisional amounts. As of December 31, 2017, we have not recorded any deferred tax assets or liabilities for outside basis differences in our investments in foreign subsidiaries. We will further analyze the impact of these new taxes on foreign earnings and their impact on our tax positions throughout fiscal year 2018 to allow us to complete the required accounting for our outside basis differences in our investments in foreign subsidiaries. We continued to apply Accounting Standards Codification 740 based on the provisions of the tax laws that were in effect immediately prior to the TCJ Act being enacted. During the year ended December 31, 2016, we effected two corporate structuring transactions that included: (i) the organization of Hilton's assets and subsidiaries in preparation for the spin-offs; and (ii) a restructuring of Hilton's international assets and subsidiaries (the "international restructuring"). The international restructuring involved a transfer of certain assets, including intellectual property used in the international business, from U.S. subsidiaries to foreign subsidiaries, and became effective in December 2016. The transfer of the intellectual property resulted in the recognition of tax expense representing the estimated U.S. tax expected to be paid in future years on income generated from the intellectual property transferred to foreign subsidiaries. Further, our deferred effective tax rate is determined based upon the composition of applicable federal and state tax rates. Due to the changes in the footprint of the Company and the expected applicable tax rates at which our domestic deferred tax assets and liabilities will reverse in future periods as a result of the described structuring activities, our estimated deferred effective tax rate increased for the year ended December 31, 2016 . In total, these structuring transactions, which became effective in December 2016, resulted in additional income tax expense of $482 million in the period. Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The tax effects of the temporary differences and carryforwards that give rise to our net deferred tax asset (liability) were as follows: December 31, 2017 2016 (in millions) Deferred tax assets: Net operating loss carryforwards $ 395 $ 394 Compensation 123 214 Other reserves 12 15 Capital lease obligations 78 84 Insurance reserves 27 36 Program surplus 17 84 Property and equipment 32 26 Investments 16 12 Other 57 66 Total gross deferred tax assets 757 931 Less: valuation allowance (408 ) (507 ) Deferred tax assets 349 424 Deferred tax liabilities: Brands (1,121 ) (1,626 ) Amortizing intangible assets (178 ) (305 ) Investment in foreign subsidiaries — (39 ) Deferred income — (150 ) Deferred tax liabilities (1,299 ) (2,120 ) Net deferred taxes $ (950 ) $ (1,696 ) As of December 31, 2017 , we had foreign net operating loss carryforwards of $1.6 billion , which resulted in deferred tax assets of $395 million for foreign jurisdictions. Approximately $6 million of our deferred tax assets as of December 31, 2017 related to net operating loss carryforwards that will expire between 2018 and 2037 with less than $1 million of that amount expiring in 2018. Approximately $389 million of our deferred tax assets as of December 31, 2017 resulted from net operating loss carryforwards that are not subject to expiration. We believe that it is more likely than not that the benefit from certain foreign net operating loss carryforwards will not be realized. In recognition of this assessment, we provided a valuation allowance of $384 million as of December 31, 2017 on the deferred tax assets relating to the foreign net operating loss carryforwards. Our total valuation allowance relating to these net operating loss carryforwards and other deferred tax assets decreased $99 million during the year ended December 31, 2017 . Based on our consideration of all available positive and negative evidence, we determined that it was more likely than not that we would be able to realize the benefit of certain foreign deferred tax assets and released valuation allowances of $48 million against our foreign deferred tax assets through continuing operations. Additionally, other factors that did not have any impact on income tax expense, including revaluations of certain foreign deferred tax assets and their associated valuation allowances, resulted in the reduction of total valuation allowances of $51 million . We classify reserves for tax uncertainties within current income taxes payable and other long-term liabilities in our consolidated balance sheets. Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2017 2016 2015 (in millions) Balance at beginning of year $ 174 $ 315 $ 296 Additions for tax positions related to the prior year 3 77 25 Additions for tax positions related to the current year 126 9 8 Reductions for tax positions related to prior years (10 ) (204 ) (4 ) Settlements (9 ) (21 ) (4 ) Lapse of statute of limitations (2 ) (2 ) (2 ) Currency translation adjustment 1 — (4 ) Balance at end of year $ 283 $ 174 $ 315 The changes to our unrecognized tax benefits during the year ended December 31, 2017 were primarily related to uncertainty regarding the valuation of certain tax assets in the U.S. and the United Kingdom. The changes to our unrecognized tax benefits during the years ended December 31, 2016 and 2015 were primarily the result of items identified, resolved and settled as part of our ongoing U.S. federal audit. We recognize interest and penalties accrued related to uncertain tax positions in income tax expense. During the years ended December 31, 2017 , 2016 and 2015 , we accrued $3 million , $4 million and $5 million , respectively, of interest and penalties and as of December 31, 2017 and 2016 , we had accrued balances of $33 million and $30 million , respectively, for the related payments. Included in the balance of uncertain tax positions as of December 31, 2017 and 2016 were $285 million and $176 million , respectively, associated with positions that if favorably resolved would provide a benefit to our effective tax rate. 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: (i) 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; (ii) in calculating the amount of U.S. taxable income resulting from our Hilton Honors 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 (iii) certain foreign currency denominated loans issued by one of our Luxembourg subsidiaries whose functional currency is 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 Hilton Honors 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, based on continuing appeals process discussions with the IRS, we believe that it is more likely than not that we will not recognize the full benefit related to certain of the issues being appealed. Accordingly, we have recorded $45 million of unrecognized tax benefits related to these issues. We file income tax returns, including returns for our subsidiaries, with federal, state, local and foreign tax 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 federal, state, local 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 December 31, 2017 , we remain subject to federal examinations from 2005 through 2016, state examinations from 2005 through 2016 and foreign examinations of our income tax returns for the years 1996 through 2016. 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 | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [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. (the "Domestic Plan"), which covers certain employees not earning union benefits. This plan was frozen for participant benefit accruals in 1996; therefore, the projected benefit obligation is equal to the accumulated benefit obligation. The plan assets will be used to pay benefits due to employees for service through December 31, 1996. Since employees have not accrued additional benefits from that time, we do not utilize salary or pension inflation assumptions in calculating our benefit obligation for the Domestic Plan. The annual measurement date for the Domestic Plan is December 31. We also have multiple employee benefit plans that cover many of our international employees. These include: (i) a plan that covers workers in the United Kingdom (the "U.K. Plan"), which was frozen to further service accruals on November 30, 2013; and (ii) a number of smaller plans that cover workers in various countries around the world (the "International Plans"). The annual measurement date for all of these plans is December 31. We are required to recognize the funded status of our pension plans, which is the difference between the fair value of plan assets and the projected benefit obligations, in our consolidated balance sheets and make corresponding adjustments for changes in the value through accumulated other comprehensive loss, net of taxes. The following table presents the projected benefit obligation, the fair value of plan assets, the funded status and the accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2017 2016 2017 2016 2017 2016 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 381 $ 394 $ 404 $ 391 $ 81 $ 82 Service cost — — 2 2 1 2 Interest cost 12 13 10 12 1 2 Actuarial loss 16 1 4 87 3 2 Settlements and curtailments (1 ) (2 ) — — — (1 ) Effect of foreign exchange rates — — 40 (74 ) 4 (1 ) Benefits paid (24 ) (25 ) (17 ) (14 ) (4 ) (5 ) Benefit obligation at end of year $ 384 $ 381 $ 443 $ 404 $ 86 $ 81 Change in Plan Assets: Fair value of plan assets at beginning of year $ 267 $ 265 $ 336 $ 368 $ 58 $ 60 Actual return on plan assets, net of expenses 43 11 24 42 6 1 Employer contributions 21 18 9 5 4 3 Settlements (1 ) (2 ) — — — (1 ) Effect of foreign exchange rates — — 34 (65 ) 1 — Benefits paid (24 ) (25 ) (17 ) (14 ) (4 ) (5 ) Fair value of plan assets at end of year 306 267 386 336 65 58 Funded status at end of year (underfunded) (78 ) (114 ) (57 ) (68 ) (21 ) (23 ) Accumulated benefit obligation $ 384 $ 381 $ 443 $ 404 $ 86 $ 81 Amounts recognized in the consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2017 2016 2017 2016 2017 2016 (in millions) Other non-current assets $ — $ 4 $ — $ — $ 9 $ 6 Other liabilities (78 ) (118 ) (57 ) (68 ) (30 ) (29 ) Net amount recognized $ (78 ) $ (114 ) $ (57 ) $ (68 ) $ (21 ) $ (23 ) Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan International Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Net actuarial loss (gain) $ (15 ) $ — $ 15 $ 13 $ 41 $ 16 $ — $ 3 $ 1 Prior service credit (3 ) (3 ) (4 ) — — — — — — Amortization of net loss (3 ) (3 ) (3 ) (4 ) (2 ) (2 ) — (1 ) (9 ) Net amount recognized $ (21 ) $ (6 ) $ 8 $ 9 $ 39 $ 14 $ — $ 2 $ (8 ) The estimated unrecognized net losses and prior service cost that will be amortized into net periodic pension cost over the fiscal year following the indicated year were as follows: Domestic Plan U.K. Plan International Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Unrecognized net losses $ 3 $ 2 $ 2 $ 4 $ 4 $ 2 $ — $ — $ — Unrecognized prior service cost 4 4 4 — — — — — — Amount unrecognized $ 7 $ 6 $ 6 $ 4 $ 4 $ 2 $ — $ — $ — The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Service cost $ 8 $ 8 $ 7 $ 2 $ 2 $ 2 $ 2 $ 3 $ 3 Interest cost 12 13 16 10 12 15 2 2 2 Expected return on plan assets (19 ) (19 ) (19 ) (19 ) (22 ) (25 ) (3 ) (3 ) (4 ) Amortization of prior service cost 3 4 4 — — — — — — Amortization of net loss 3 3 3 4 2 2 — — — Settlement losses — — — — — — — — 10 Net periodic pension cost (credit) $ 7 $ 9 $ 11 $ (3 ) $ (6 ) $ (6 ) $ 1 $ 2 $ 11 The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2017 2016 2017 2016 2017 2016 Discount rate 3.6 % 4.0 % 2.6 % 2.8 % 2.4 % 3.1 % Salary inflation N/A N/A 1.8 1.9 2.2 2.1 Pension inflation N/A N/A 3.0 3.1 1.8 1.7 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 4.0 % 4.2 % 3.9 % 2.8 % 3.9 % 3.8 % 3.0 % 3.5 % 3.3 % Expected return on plan assets 7.0 7.3 7.5 5.5 6.5 6.5 4.3 5.4 5.1 Salary inflation N/A N/A N/A 1.9 1.7 1.6 2.1 2.1 2.2 Pension inflation N/A N/A N/A 3.1 2.8 2.8 1.7 1.6 1.8 The investment objectives for the various plans are preservation of capital, current income and long-term growth of capital. All plan assets are managed by outside investment managers and do not include investments in Hilton stock. Asset allocations are reviewed periodically by the investment managers. Expected long-term returns on plan assets are determined using historical performance for debt and equity securities held by our plans, actual performance of plan assets and current and expected market conditions. Expected returns are formulated based on the target asset allocation. The target asset allocation for the Domestic Plan, as a percentage of total plan assets, as of December 31, 2017 and 2016 , was 80 percent and 65 percent , respectively, in funds that invest in equity securities, and 20 percent and 35 percent , respectively, in funds that invest in debt securities. The target asset allocation for the U.K. Plan and the International Plans was 75 percent and 65 percent in funds that invest in equity and debt securities and 25 percent and 35 percent in bond funds as of December 31, 2017 and 2016 , respectively. The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category. The fair values of Level 2 assets were based on available market pricing information of similar financial instruments. December 31, 2017 Domestic Plan U.K. Plan International Plans Level 1 Level 2 Level 1 Level 2 Level 1 Level 2 (in millions) Cash and cash equivalents $ — $ — $ — $ — $ 11 $ — Equity funds — — — — — 6 Debt securities — — — — — — Bond funds — — — — — 5 Common collective trusts — 306 — 386 — 43 Other — — — — — — Total $ — $ 306 $ — $ 386 $ 11 $ 54 December 31, 2016 Domestic Plan U.K. Plan International Plans Level 1 Level 2 Level 1 Level 2 Level 1 Level 2 (in millions) Cash and cash equivalents $ — $ — $ — $ — $ 10 $ — Equity funds 25 — — — 3 6 Debt securities 1 62 — — — — Bond funds — — — — — 6 Common collective trusts — 139 — 336 — 33 Other — 40 — — — — Total $ 26 $ 241 $ — $ 336 $ 13 $ 45 We expect to contribute approximately $19 million , $9 million and $4 million to the Domestic Plan, the U.K. Plan and the International Plans, respectively, in 2018. As of December 31, 2017 , the benefits expected to be paid in the next five years and in the aggregate for the five years thereafter were as follows: Domestic Plan U.K. Plan International Plans Year (in millions) 2018 $ 33 $ 18 $ 10 2019 26 18 5 2020 26 19 5 2021 26 19 5 2022 26 19 5 2023-2027 121 102 26 $ 258 $ 195 $ 56 As of January 1, 2007, the Domestic Plan and plans maintained for certain domestic hotels currently or formerly managed by us were merged into a multiple employer plan. As of December 31, 2017 and 2016 , the multiple employer plan had combined plan assets of $331 million and $289 million , respectively, and a projected benefit obligation of $409 million and $405 million , respectively. We also have plans covering qualifying employees and non-officer directors (the "Supplemental Plans"). Benefits for the Supplemental Plans are based upon years of service and compensation. Since December 31, 1996, employees and non-officer directors have not accrued additional benefits under the Supplemental Plans. These plans are self-funded by us and, therefore, have no plan assets isolated to pay benefits due to employees. As of December 31, 2017 and 2016 , these plans had benefit obligations of $15 million and $19 million , respectively, which were fully accrued in other liabilities in our consolidated balance sheets. Expenses incurred under the Supplemental Plans for the years ended December 31, 2017 and 2016 were $1 million and $3 million , respectively, and for the year ended December 31, 2015 were less than $1 million . We have various employee defined contribution investment plans whereby we contribute matching percentages of employee contributions. The aggregate expense under these plans totaled $15 million , $17 million and $18 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized share-based compensation expense of $121 million , $81 million and $147 million during the years ended December 31, 2017 , 2016 and 2015 , respective ly, which included amounts reimbursed by hotel owners. The total tax benefit recognized related to this share-based compensation expense was $49 million , $31 million and $31 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Share-based compensation expense for the year ended December 31, 2015 included compensation expense that was recognized when certain rema ining awards granted in connection with our initial public offering vested during 2015. As of December 31, 2017 and 2016 , we ac cru ed $15 million in accounts payable, accrued expenses and other in our consolidated balance sheets for certain awards settled in cash. As of December 31, 2017 , unrecognized compensation costs for unvested awards was approximately $116 million , which is expected to be recognized over a weighted-average period of 1.8 years on a straight-line basis. As of December 31, 2017 , there were 17,968,736 shares of common stock available for future issuance under our 2017 Omnibus Incentive Plan, plus any shares subject to awards outstanding under our 2013 Omnibus Incentive Plan, which will become available for issuance under our 2017 Omnibus Incentive Plan as a result of such outstanding awards expiring or terminating or being canceled or forfeited. All share and share-related information presented for periods prior to January 3, 2017 have been adjusted to reflect the Reverse Stock Split. See Note 1 : " Organization " for additional information. Effect of the Spin-offs on Equity Awards In connection with the spin-offs, the outstanding share-based compensation awards held by employees transferring to Park and HGV were converted to equity awards in Park and HGV common stock, respectively. Share-based compensation awards of employees remaining at Hilton were adjusted using a conversion factor in accordance with the anti-dilution provisions of the 2013 Omnibus Incentive Plan with the intent to preserve the intrinsic value of the original awards (the "Conversion Factor"). The adjustments were determined by comparing the fair value of such awards immediately prior to the spin-offs to the fair value of such awards immediately after the spin-offs. The comparison resulted in no incremental share-based compensation expense. Equity awards that were adjusted generally remain subject to the same vesting, expiration and other terms and conditions as applied to the awards immediately prior to the spin-offs. RSUs The following table provides information about our RSU grants for the last three fiscal years: Year Ended December 31, 2017 2016 2015 Number of shares granted 1,467,396 1,169,238 679,546 Weighted average grant date fair value per share $ 58.80 $ 59.73 $ 82.38 Fair value of shares vested (in millions) $ 78 $ 40 $ 90 The following table summarizes the activity of our RSUs during the year ended December 31, 2017 : Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding as of December 31, 2016 1,624,541 $ 65.24 Conversion from performance shares upon completion of the spin-offs (1) 671,604 72.42 Effect of the spin-offs (2) 439,113 57.60 Granted 1,467,396 58.80 Vested (2) (1,199,987 ) 51.65 Forfeited (2) (161,736 ) 50.33 Outstanding as of December 31, 2017 2,840,931 51.44 ____________ (1) Represents all performance shares outstanding as of December 31, 2016. (2) The weighted average grant date fair value was adjusted to reflect the Conversion Factor. Options The following table provides information about our option grants for the last three fiscal years: Year Ended December 31, 2017 2016 2015 Number of options granted 748,965 503,150 309,528 Weighted average exercise price per share $ 58.40 $ 58.83 $ 82.38 Weighted average grant date fair value per share $ 13.96 $ 16.41 $ 25.17 The grant date fair value of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2017 2016 2015 Expected volatility (1) 24.00 % 32.00 % 28.00 % Dividend yield (2) 0.92% - 1.03% 1.43 % — % Risk-free rate (3) 1.93% - 2.03% 1.36 % 1.67 % Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price and, due to limited trading history, historical volatility of our peer group over a time period consistent with our expected term assumption. (2) Estimated based on the expected annualized dividend payment at the grant date. For the 2015 options granted, we had no plans to pay dividends during the expected term at the time of grant. (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. The following table summarizes the activity of our options during the year ended December 31, 2017 : Number of Shares Weighted Average Exercise Price per Share Outstanding as of December 31, 2016 1,076,031 $ 66.83 Effect of the spin-offs (1) 251,145 57.60 Granted 748,965 58.40 Exercised (1) (61,888 ) 46.75 Forfeited or expired (1) (20,799 ) 53.47 Outstanding as of December 31, 2017 (2) 1,993,454 51.24 Exercisable as of December 31, 2017 (1)(2) 741,798 48.32 ____________ (1) The weighted average exercise price was adjusted to reflect the Conversion Factor. (2) The aggregate intrinsic value of options outstanding and options exercisable was $57 million and $23 million , respectively, as of December 31, 2017. The weighted average remaining contractual term for options outstanding as of December 31, 2017 was 8.6 years. Performance Shares As of December 31, 2016, we had outstanding performance awards 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 based on the Company’s EBITDA CAGR. In November 2016, we modified our performance shares, such that upon completion of the spin-offs, we converted all 671,604 outstanding performance shares to RSUs based on a 100 percent achievement percentage with the same vesting periods as the original awards. We recognized $3.3 million and $0.3 million of incremental expense related to the modification of these awards during the years ended December 31, 2017 and 2016, respectively, and we will recognize additional expense of $2.3 million from the modification in 2018. During the year ended December 31, 2017 , we issued performance shares with 50 percent of the shares subject to achievement based on the Company's EBITDA CAGR and the other 50 percent of the shares subject to achievement based on the Company’s FCF CAGR. The performance shares are settled at the end of the three-year performance period. We determined that the performance condition for these awards is probable of achievement and, as of December 31, 2017 , we recognized compensation expense based on the anticipated achievement percentage of 200 percent and 175 percent for the performance awards based on EBITDA CAGR and FCF CAGR, respectively. As of December 31, 2017 , there were no outstanding performance shares based on relative shareholder return. The following table provides information about our performance share grants for the last three fiscal years: Year Ended December 31, 2017 2016 2015 EBITDA CAGR: Number of shares granted 179,006 300,784 204,523 Weighted average grant date fair value per share $ 58.40 $ 58.83 $ 82.38 Fair value of shares vested (in millions) $ — $ 12 $ — FCF CAGR: Number of shares granted 178,975 N/A N/A Weighted average grant date fair value per share $ 58.40 N/A N/A Fair value of shares vested (in millions) $ — N/A N/A Relative Shareholder Return: Number of shares granted N/A 300,784 204,523 Weighted average grant date fair value per share N/A $ 62.43 $ 98.94 Fair value of shares vested (in millions) N/A $ 16 $ — The following table summarizes the activity of our performance shares during the year ended December 31, 2017 : EBITDA CAGR FCF CAGR Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding as of December 31, 2016 335,802 $ 68.09 — N/A Conversion to RSUs upon completion of the spin-offs (335,802 ) 68.09 — N/A Granted 179,006 58.40 178,975 $ 58.40 Forfeited or canceled (2,915 ) 58.02 (2,914 ) 58.02 Outstanding as of December 31, 2017 176,091 58.41 176,061 58.41 DSUs During the years ended December 31, 2017 , 2016 and 2015, we issued to our independent directors 16,638 , 11,393 and 6,179 DSUs, respectively, with weighted average grant date fair values of $66.09 , $66.12 and $84.96 , respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings (Loss) Per Share The following table presents the calculation of basic and diluted earnings (loss) per share ("EPS"). All share and per share amounts for the years ended December 31, 2016 and 2015 have been adjusted to reflect the Reverse Stock Split. See Note 1 : " Organization " for additional information. Year Ended December 31, 2017 2016 2015 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ 1,259 $ (18 ) $ 876 Denominator: Weighted average shares outstanding 324 329 329 Basic EPS $ 3.88 $ (0.05 ) $ 2.67 Diluted EPS: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ 1,259 $ (18 ) $ 876 Denominator: Weighted average shares outstanding 327 329 330 Diluted EPS $ 3.85 $ (0.05 ) $ 2.66 Approximately 1 million , 2 million and less than 1 million share-based compensation awards were excluded from the weighted average shares outstanding in the computation of diluted EPS for the years ended December 31, 2017 , 2016 and 2015 , respectively, because their effect would have been anti-dilutive under the treasury stock method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
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, 2014 $ (446 ) $ (179 ) $ (3 ) $ (628 ) Other comprehensive loss before reclassifications (150 ) (21 ) (7 ) (178 ) Amounts reclassified from accumulated other comprehensive loss 16 6 — 22 Net current period other comprehensive loss (134 ) (15 ) (7 ) (156 ) Balance as of December 31, 2015 (580 ) (194 ) (10 ) (784 ) Other comprehensive loss before reclassifications (157 ) (63 ) (5 ) (225 ) Amounts reclassified from accumulated other comprehensive loss (1 ) 6 3 8 Net current period other comprehensive loss (158 ) (57 ) (2 ) (217 ) Balance as of December 31, 2016 (738 ) (251 ) (12 ) (1,001 ) Other comprehensive income before reclassifications 160 15 7 182 Amounts reclassified from accumulated other comprehensive loss 1 7 6 14 Net current period other comprehensive income 161 22 13 196 Spin-offs of Park and HGV 63 — — 63 Balance as of December 31, 2017 $ (514 ) $ (229 ) $ 1 $ (742 ) ____________ (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 consolidated statement of operations): Year Ended December 31, 2017 2016 2015 (in millions) Currency translation adjustment: Sale or liquidation of investment in foreign entity (1) $ (2 ) $ — $ (25 ) Gains on net investment hedges (2) 1 1 — Tax benefit (3)(4) — — 9 Total currency translation adjustment reclassifications for the period, net of taxes (1 ) 1 (16 ) Pension liability adjustment: Amortization of prior service cost (5) (3 ) (4 ) (4 ) Amortization of net loss (5) (7 ) (5 ) (5 ) Tax benefit (3) 3 3 3 Total pension liability adjustment reclassifications for the period, net of taxes (7 ) (6 ) (6 ) Cash flow hedge adjustment: Dedesignation of interest rate swaps (6) (10 ) (4 ) — Tax benefit (3) 4 1 — Total cash flow hedge adjustment reclassifications for the period, net of taxes (6 ) (3 ) — Total reclassifications for the period, net of taxes $ (14 ) $ (8 ) $ (22 ) ____________ (1) Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions and gain on sales of assets, net in our consolidated statements of operations for the years ended December 31, 2017 and 2015 , respectively. (2) Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. (3) Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (4) The tax benefit was less than $1 million for the years ended December 31, 2017 and 2016 . (5) Reclassified out of accumulated other comprehensive loss to general and administrative expenses in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost. See Note 15 : " Employee Benefit Plans " for additional information. (6) Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statements of operations. Refer to Note 11 : " Derivative Instruments and Hedging Activities " for additional information. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments We are a hospitality company with operations organized in two distinct operating segments: (i) management and franchise; and (ii) ownership. These segments are managed and reported separately because of their distinct economic characteristics. 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 December 31, 2017 , this segment included 656 managed hotels and 4,507 franchised hotels consisting of 825,808 total rooms, which includes 67 hotels with 35,406 rooms that were previously owned or leased by Hilton or unconsolidated affiliates of Hilton and, upon completion of the spin-offs, were owned or leased by Park or unconsolidated affiliates of Park. This segment also earns fees for managing properties in our ownership segment and, effective upon completion of the spin-offs, a license fee from HGV. As of December 31, 2017 , the ownership segment included 73 properties totaling 22,206 rooms, comprising 64 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and six hotels owned or leased by unconsolidated affiliates. The performance of our operating segments is evaluated primarily on operating income, without allocating corporate and other revenues and other expenses or general and administrative expenses. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2017 2016 2015 (in millions) Management and franchise (1) $ 1,983 $ 1,580 $ 1,496 Ownership 1,450 1,452 1,596 Segment revenues 3,433 3,032 3,092 Other revenues 105 82 71 Other revenues from managed and franchised properties 5,645 4,310 4,011 Intersegment fees elimination (1) (43 ) (42 ) (41 ) Total revenues $ 9,140 $ 7,382 $ 7,133 ____________ (1) Includes management, royalty and intellectual property fees charged to our ownership segment, which were eliminated in our consolidated statements of operations. The following table presents operating income for our reportable segments, reconciled to consolidated income from continuing operations before income taxes: Year Ended December 31, 2017 2016 2015 (in millions) Management and franchise (1) $ 1,983 $ 1,580 $ 1,496 Ownership (1) 121 115 141 Segment operating income 2,104 1,695 1,637 Other revenues, less other expenses 49 16 22 Depreciation and amortization (347 ) (364 ) (385 ) General and administrative (434 ) (403 ) (537 ) Gain on sales of assets, net — 8 163 Operating income 1,372 952 900 Interest expense (408 ) (394 ) (377 ) Gain (loss) on foreign currency transactions 3 (16 ) (41 ) Loss on debt extinguishment (60 ) — — Other non-operating income, net 23 14 51 Income from continuing operations before income taxes $ 930 $ 556 $ 533 ____________ (1) Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated financial statements. The following table presents total assets for our reportable segments, reconciled to consolidated assets of continuing operations: December 31, 2017 2016 (in millions) Management and franchise $ 11,454 $ 10,825 Ownership 964 1,032 Corporate and other 1,890 2,529 $ 14,308 $ 14,386 The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated capital expenditures of continuing operations: Year Ended December 31, 2017 2016 2015 (in millions) Ownership $ 32 $ 45 $ 52 Corporate and other 26 17 15 $ 58 $ 62 $ 67 Total revenues by country were as follows: Year Ended December 31, 2017 2016 2015 (in millions) U.S. $ 7,033 $ 5,315 $ 4,935 United Kingdom 547 955 1,017 All other 1,560 1,112 1,181 $ 9,140 $ 7,382 $ 7,133 Other than the countries included above, there were no countries that individually represented more than 10 percent of total revenues for the years ended December 31, 2017 , 2016 and 2015 . Property and equipment, net by country was as follows: December 31, 2017 2016 (in millions) U.S. $ 105 $ 92 Japan 94 87 United Kingdom 82 79 Germany 36 35 All other 36 48 $ 353 $ 341 Other than the countries included above, there were no countries that individually represented more than 10 percent of total property and equipment, net as of December 31, 2017 and 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies We provide 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 operating performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of December 31, 2017 , we had six contracts containing performance guarantees, with expirations ranging from 2019 to 2030 , and possible cash outlays totaling approximately $79 million . Our obligations under these guarantees in future periods are dependent 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 December 31, 2017 and 2016 , we recorded $12 million and $11 million , respectively, in accounts payable, accrued expenses and other and $9 million and $17 million , respectively, in other liabilities in our consolidated balance sheets for two outstanding performance guarantees that are related to VIEs for which we are not the primary beneficiary. We are involved in 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 December 31, 2017 will not have a material effect on our consolidated financial position, results of operations or cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Equity Investments We hold equity investments in entities that own or lease properties that we manage. The following tables summarize amounts included in our consolidated financial statements related to these management contracts: December 31, 2017 2016 (in millions) Balance Sheets Assets: Accounts receivable, net $ 2 $ 4 Management and franchise contracts, net 20 20 Liabilities: Accounts payable, accrued expenses and other 1 1 Year Ended December 31, 2017 2016 2015 (in millions) Statements of Operations Revenues: Franchise fees $ 1 $ 1 $ 1 Base and other management fees 6 8 6 Incentive management fees 3 4 2 Other revenues from managed and franchised properties 22 21 31 Expenses: Other expenses from managed and franchised properties 22 21 31 Statements of Cash Flows Investing Activities: Contract acquisition costs — — 4 Blackstone Blackstone directly and indirectly owns or controls hotels that we manage or franchise and for which we receive fees in connection with the related management and franchise contracts. Our maximum exposure to loss related to these hotels is limited to the amounts discussed below; therefore, our involvement with these hotels does not expose us to additional variability or risk of loss. Due to continued sales of the Company's common stock, Blackstone was no longer considered a related party of the Company as of October 1, 2017. As such, only financial information related to Blackstone as of December 31, 2016 and for the nine months ended September 30, 2017 and the years ended December 31, 2016 and 2015 is included in the following tables, which summarize amounts included in our consolidated financial statements related to their management and franchise contracts: December 31, 2016 (in millions) Balance Sheets Assets: Accounts receivable, net $ 18 Management and franchise contracts, net 13 Liabilities: Accounts payable, accrued expenses and other 8 Year Ended December 31, 2017 (1) 2016 2015 (in millions) Statements of Operations Revenues: Franchise fees $ 19 $ 29 $ 34 Base and other management fees 5 10 11 Incentive management fees 1 3 3 Other revenues from managed and franchised properties 113 144 160 Expenses: Other expenses from managed and franchised properties 113 144 160 Statements of Cash Flows Investing Activities: Contract acquisition costs 11 — — ____________ (1) Includes amounts only for the nine months ended September 30, 2017, the period in 2017 during which Blackstone was a related party of the Company. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Interest paid during the years ended December 31, 2017 , 2016 and 2015 , was $314 million , $478 million and $485 million , respectively. Income taxes, net of refunds, paid during the years ended December 31, 2017 , 2016 and 2015 were $526 million , $677 million and $475 million , respectively. The following non-cash investing and financing activities were excluded from the consolidated statements of cash flows: • In 2017, we had non-cash financing activities of $25 million in connection with the spin-offs. • In 2016, we transferred $116 million of Park's property and equipment to HGV's timeshare inventory for conversion into timeshare units. • In 2015, we assumed a $450 million loan as a result of an acquisition for Park. • In 2015, one of our consolidated VIEs modified the terms of its capital lease resulting in a reduction in long-term debt of $24 million . |
Condensed Consolidating Guarant
Condensed Consolidating Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
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 "HWF Issuers"), entities that are 100 percent owned by Hilton Worldwide Parent LLC ("HWP"), which is 100 percent owned by the Parent, issued the 2021 Senior Notes. In September 2016, Hilton Domestic Operating Company Inc. ("HOC"), an entity incorporated in July 2016 that is 100 percent owned by Hilton Worldwide Finance LLC and is a guarantor of the 2021 Senior Notes, 2025 Senior Notes and 2027 Senior Notes, assumed the 2024 Senior Notes that were issued in August 2016 by escrow issuers. In March 2017, the HWF Issuers, which are guarantors of the 2024 Senior Notes, issued the 2025 Senior Notes and 2027 Senior Notes, and used the net proceeds and available cash to repay in full the 2021 Senior Notes. The 2024 Senior Notes, 2025 Senior Notes and 2027 Senior Notes are collectively referred to as the Senior Notes. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers. The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by HWP, the Parent and certain of the Parent's 100 percent owned domestic restricted subsidiaries that are themselves not issuers of the applicable series of Senior Notes (together, the "Guarantors''). The indentures that govern the Senior Notes provide that any subsidiary of the Company that provides a guarantee of our senior secured credit facility will guarantee the Senior Notes. As of December 31, 2017 , none of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guarantee the Senior Notes (collectively, the "Non-Guarantors"). In September 2016, certain employees, assets and liabilities of a guarantor subsidiary were transferred into HOC. This transfer was considered to be a transfer of assets rather than a transfer of a business. Accordingly, we have separately presented HOC as a subsidiary issuer in our condensed consolidating financial information prospectively from the date of the transfer. Due to the timing of the transfer, our condensed consolidating statements of operations include the results of operations of HOC beginning October 1, 2016. In connection with the spin-offs, certain entities that were previously guarantors of the 2021 Senior Notes and 2024 Senior Notes were released and no longer guaranteed these senior notes. The condensed consolidating financial information presents the financial information based on the composition of the Guarantors and Non-Guarantors as of December 31, 2017 . The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under our senior secured credit facility; (iii) the subsidiary is declared "unrestricted" for covenant purposes; (iv) the subsidiary is merged with or into the applicable Subsidiary Issuers or another Guarantor or the Guarantor liquidates after transferring all of its assets to the applicable Subsidiary Issuers or another Guarantor; or (v) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied, in each case in compliance with applicable provisions of the indentures. The following tables present the condensed consolidating financial information as of December 31, 2017 and 2016 and for the years ended December 31, 2017 , 2016 and 2015 , for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 2 $ 18 $ 550 $ — $ 570 Restricted cash and cash equivalents — — 61 10 29 — 100 Accounts receivable, net — — 21 702 275 — 998 Intercompany receivables — — — — 40 (40 ) — Prepaid expenses — — 6 24 84 (3 ) 111 Income taxes receivable — — — 60 — (24 ) 36 Other — — 1 15 155 — 171 Total current assets — — 91 829 1,133 (67 ) 1,986 Intangibles and Other Assets: Investments in subsidiaries 2,081 7,451 8,713 2,081 — (20,326 ) — Goodwill — — — 3,824 1,366 — 5,190 Brands — — — 4,405 485 — 4,890 Management and franchise contracts, net — — 2 634 273 — 909 Other intangible assets, net — — 1 283 149 — 433 Property and equipment, net — — 20 67 266 — 353 Deferred income tax assets 6 — 105 — 124 (122 ) 113 Other — 20 31 183 200 — 434 Total intangibles and other assets 2,087 7,471 8,872 11,477 2,863 (20,448 ) 12,322 TOTAL ASSETS $ 2,087 $ 7,471 $ 8,963 $ 12,306 $ 3,996 $ (20,515 ) $ 14,308 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 15 $ 20 $ 256 $ 1,229 $ 633 $ (3 ) $ 2,150 Intercompany payables — — 40 — — (40 ) — Current maturities of long-term debt — 32 — — 14 — 46 Income taxes payable — — — — 36 (24 ) 12 Total current liabilities 15 52 296 1,229 683 (67 ) 2,208 Long-term debt — 5,333 983 — 240 — 6,556 Deferred revenues — — — 97 — — 97 Deferred income tax liabilities — 5 — 1,180 — (122 ) 1,063 Liability for guest loyalty program — — — 839 — — 839 Other — — 233 581 656 — 1,470 Total liabilities 15 5,390 1,512 3,926 1,579 (189 ) 12,233 Equity: Total Hilton stockholders' equity 2,072 2,081 7,451 8,380 2,414 (20,326 ) 2,072 Noncontrolling interests — — — — 3 — 3 Total equity 2,072 2,081 7,451 8,380 2,417 (20,326 ) 2,075 TOTAL LIABILITIES AND EQUITY $ 2,087 $ 7,471 $ 8,963 $ 12,306 $ 3,996 $ (20,515 ) $ 14,308 December 31, 2016 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 22 $ 1,037 $ — $ 1,062 Restricted cash and cash equivalents — — 87 9 25 — 121 Accounts receivable, net — — 7 484 264 — 755 Intercompany receivables — — — — 42 (42 ) — Prepaid expenses — — 6 21 65 (3 ) 89 Income taxes receivable — — — 30 — (17 ) 13 Other — — 1 5 33 — 39 Current assets of discontinued operations — — — — 1,502 (24 ) 1,478 Total current assets — — 104 571 2,968 (86 ) 3,557 Intangibles and Other Assets: Investments in subsidiaries 5,889 11,300 12,583 5,889 — (35,661 ) — Goodwill — — — 3,824 1,394 — 5,218 Brands — — — 4,404 444 — 4,848 Management and franchise contracts, net — — — 716 247 — 963 Other intangible assets, net — — 1 296 150 — 447 Property and equipment, net — — 12 62 267 — 341 Deferred income tax assets 10 2 167 — 82 (179 ) 82 Other — 12 30 213 153 — 408 Non-current assets of discontinued operations — — — 12 10,345 (10 ) 10,347 Total intangibles and other assets 5,899 11,314 12,793 15,416 13,082 (35,850 ) 22,654 TOTAL ASSETS $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 26 $ 293 $ 1,091 $ 414 $ (3 ) $ 1,821 Intercompany payables — — 42 — — (42 ) — Current maturities of long-term debt — 26 — — 7 — 33 Income taxes payable — — — — 73 (17 ) 56 Current liabilities of discontinued operations — — — 77 721 (24 ) 774 Total current liabilities — 52 335 1,168 1,215 (86 ) 2,684 Long-term debt — 5,361 981 — 241 — 6,583 Deferred revenues — — — 42 — — 42 Deferred income tax liabilities — — — 1,919 38 (179 ) 1,778 Liability for guest loyalty program — — — 889 — — 889 Other — 12 277 490 713 — 1,492 Non-current liabilities of discontinued operations — — 4 — 6,900 (10 ) 6,894 Total liabilities — 5,425 1,597 4,508 9,107 (275 ) 20,362 Equity: Total Hilton stockholders' equity 5,899 5,889 11,300 11,479 6,993 (35,661 ) 5,899 Noncontrolling interests — — — — (50 ) — (50 ) Total equity 5,899 5,889 11,300 11,479 6,943 (35,661 ) 5,849 TOTAL LIABILITIES AND EQUITY $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 143 $ 1,127 $ 129 $ (17 ) $ 1,382 Base and other management fees — — 1 201 134 — 336 Incentive management fees — — — 76 146 — 222 Owned and leased hotels — — — — 1,450 — 1,450 Other revenues — — 31 70 11 (7 ) 105 — — 175 1,474 1,870 (24 ) 3,495 Other revenues from managed and franchised properties — — 154 4,893 598 — 5,645 Total revenues — — 329 6,367 2,468 (24 ) 9,140 Expenses Owned and leased hotels — — — — 1,286 — 1,286 Depreciation and amortization — — 5 247 95 — 347 General and administrative — — 327 — 113 (6 ) 434 Other expenses — — 17 29 27 (17 ) 56 — — 349 276 1,521 (23 ) 2,123 Other expenses from managed and franchised properties — — 154 4,893 598 — 5,645 Total expenses — — 503 5,169 2,119 (23 ) 7,768 Gain (loss) on sales of assets, net — — — (1 ) 1 — — Operating income (loss) — — (174 ) 1,197 350 (1 ) 1,372 Interest expense — (244 ) (106 ) — (59 ) 1 (408 ) Gain (loss) on foreign currency transactions — — 10 124 (131 ) — 3 Loss on debt extinguishment — (60 ) — — — — (60 ) Other non-operating income (loss), net — (3 ) 4 7 15 — 23 Income (loss) before income taxes and equity in earnings from subsidiaries — (307 ) (266 ) 1,328 175 — 930 Income tax benefit (expense) (3 ) 122 48 69 98 — 334 Income (loss) before equity in earnings from subsidiaries (3 ) (185 ) (218 ) 1,397 273 — 1,264 Equity in earnings from subsidiaries 1,262 1,447 1,665 1,262 — (5,636 ) — Net income 1,259 1,262 1,447 2,659 273 (5,636 ) 1,264 Net income attributable to noncontrolling interests — — — — (5 ) — (5 ) Net income attributable to Hilton stockholders $ 1,259 $ 1,262 $ 1,447 $ 2,659 $ 268 $ (5,636 ) $ 1,259 Comprehensive income $ 1,455 $ 1,276 $ 1,463 $ 2,662 $ 436 $ (5,832 ) $ 1,460 Comprehensive income attributable to noncontrolling interests — — — — (5 ) — (5 ) Comprehensive income attributable to Hilton stockholders $ 1,455 $ 1,276 $ 1,463 $ 2,662 $ 431 $ (5,832 ) $ 1,455 Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 21 $ 1,031 $ 112 $ (10 ) $ 1,154 Base and other management fees — — — 126 116 — 242 Incentive management fees — — — 16 126 — 142 Owned and leased hotels — — — — 1,452 — 1,452 Other revenues — — 10 61 11 — 82 — — 31 1,234 1,817 (10 ) 3,072 Other revenues from managed and franchised properties — — 32 3,777 501 — 4,310 Total revenues — — 63 5,011 2,318 (10 ) 7,382 Expenses Owned and leased hotels — — — — 1,295 — 1,295 Depreciation and amortization — — 1 272 91 — 364 General and administrative — — 90 204 109 — 403 Other expenses — — 1 31 44 (10 ) 66 — — 92 507 1,539 (10 ) 2,128 Other expenses from managed and franchised properties — — 32 3,777 501 — 4,310 Total expenses — — 124 4,284 2,040 (10 ) 6,438 Gain on sales of assets, net — — — — 8 — 8 Operating income (loss) — — (61 ) 727 286 — 952 Interest expense — (261 ) (30 ) (51 ) (52 ) — (394 ) Gain (loss) on foreign currency transactions — — 11 (150 ) 123 — (16 ) Other non-operating income, net — 1 1 8 4 — 14 Income (loss) from continuing operations before income taxes and equity in losses from subsidiaries — (260 ) (79 ) 534 361 — 556 Income tax benefit (expense) 193 100 32 (319 ) (570 ) — (564 ) Income (loss) from continuing operations before equity in losses from subsidiaries 193 (160 ) (47 ) 215 (209 ) — (8 ) Equity in losses from subsidiaries (211 ) (51 ) (4 ) (211 ) — 477 — Income (loss) from continuing operations, net of taxes (18 ) (211 ) (51 ) 4 (209 ) 477 (8 ) Income from discontinued operations, net of taxes 366 366 366 428 374 (1,528 ) 372 Net income 348 155 315 432 165 (1,051 ) 364 Net income attributable to noncontrolling interests — — — — (16 ) — (16 ) Net income attributable to Hilton stockholders $ 348 $ 155 $ 315 $ 432 $ 149 $ (1,051 ) $ 348 Comprehensive income $ 131 $ 153 $ 320 $ 361 $ 15 $ (834 ) $ 146 Comprehensive income attributable to noncontrolling interests — — — — (15 ) — (15 ) Comprehensive income attributable to Hilton stockholders $ 131 $ 153 $ 320 $ 361 $ — $ (834 ) $ 131 Year Ended December 31, 2015 Parent HWF Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 998 $ 101 $ (12 ) $ 1,087 Base and other management fees — — 125 105 — 230 Incentive management fees — — 18 120 — 138 Owned and leased hotels — — — 1,596 — 1,596 Other revenues — — 61 10 — 71 — — 1,202 1,932 (12 ) 3,122 Other revenues from managed and franchised properties — — 3,510 501 — 4,011 Total revenues — — 4,712 2,433 (12 ) 7,133 Expenses Owned and leased hotels — — — 1,414 — 1,414 Depreciation and amortization — — 288 97 — 385 General and administrative — — 424 113 — 537 Other expenses — — 37 24 (12 ) 49 — — 749 1,648 (12 ) 2,385 Other expenses from managed and franchised properties — — 3,510 501 — 4,011 Total expenses — — 4,259 2,149 (12 ) 6,396 Gain on sales of assets, net — — — 163 — 163 Operating income — — 453 447 — 900 Interest expense — (281 ) (50 ) (46 ) — (377 ) Gain (loss) on foreign currency transactions — — 77 (118 ) — (41 ) Other non-operating income, net — — 14 37 — 51 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (281 ) 494 320 — 533 Income tax benefit (expense) (7 ) 108 189 58 — 348 Income (loss) from continuing operations before equity in earnings from subsidiaries (7 ) (173 ) 683 378 — 881 Equity in earnings from subsidiaries 883 1,056 373 — (2,312 ) — Income from continuing operations, net of taxes 876 883 1,056 378 (2,312 ) 881 Income from discontinued operations, net of taxes 528 528 528 460 (1,509 ) 535 Net income 1,404 1,411 1,584 838 (3,821 ) 1,416 Net income attributable to noncontrolling interests — — — (12 ) — (12 ) Net income attributable to Hilton stockholders $ 1,404 $ 1,411 $ 1,584 $ 826 $ (3,821 ) $ 1,404 Comprehensive income $ 1,248 $ 1,404 $ 1,546 $ 727 $ (3,665 ) $ 1,260 Comprehensive income attributable to noncontrolling interests — — — (12 ) — (12 ) Comprehensive income attributable to Hilton stockholders $ 1,248 $ 1,404 $ 1,546 $ 715 $ (3,665 ) $ 1,248 Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (113 ) $ (103 ) $ 988 $ 322 $ (170 ) $ 924 Investing Activities: Capital expenditures for property and equipment — — (12 ) (12 ) (34 ) — (58 ) Contract acquisition costs — — — (38 ) (37 ) — (75 ) Capitalized software costs — — — (75 ) — — (75 ) Other — (13 ) — (1 ) 3 (3 ) (14 ) Net cash used in investing activities — (13 ) (12 ) (126 ) (68 ) (3 ) (222 ) Financing Activities: Borrowings — 1,822 — — 2 — 1,824 Repayment of debt — (1,852 ) — — (8 ) — (1,860 ) Debt issuance costs and redemption premium — (69 ) — — — — (69 ) Repayment of intercompany borrowings — — (3 ) — — 3 — Intercompany transfers 1,086 225 122 (865 ) (568 ) — — Dividends paid (195 ) — — — — — (195 ) Intercompany dividends — — — — (170 ) 170 — Cash transferred in spin-offs of Park and HGV — — — — (501 ) — (501 ) Repurchases of common stock (891 ) — — — — — (891 ) Distributions to noncontrolling interests — — — — (1 ) — (1 ) Tax withholdings on share-based compensation — — (31 ) — — — (31 ) Net cash provided by (used in) financing activities — 126 88 (865 ) (1,246 ) 173 (1,724 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — 8 — 8 Net decrease in cash, restricted cash and cash equivalents — — (27 ) (3 ) (984 ) — (1,014 ) Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 90 31 1,062 — 1,183 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — — 501 — 501 Cash, restricted cash and cash equivalents, beginning of period — — 90 31 1,563 — 1,684 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 63 $ 28 $ 579 $ — $ 670 Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (37 ) $ — $ 912 $ 1,095 $ (605 ) $ 1,365 Investing Activities: Capital expenditures for property and equipment — — — (9 ) (308 ) — (317 ) Issuance of intercompany receivables — — — (192 ) (42 ) 234 — Payments received on intercompany receivables — — — 192 — (192 ) — Proceeds from asset dispositions — — — — 11 — 11 Contract acquisition costs — — — (46 ) (9 ) — (55 ) Capitalized software costs — — — (73 ) (8 ) — (81 ) Other — (6 ) — (35 ) 5 — (36 ) Net cash used in investing activities — (6 ) — (163 ) (351 ) 42 (478 ) Financing Activities: Borrowings — — 1,000 — 3,715 — 4,715 Repayment of debt — (266 ) — — (4,093 ) — (4,359 ) Debt issuance costs — (17 ) (20 ) — (39 ) — (76 ) Intercompany borrowings — — — 42 192 (234 ) — Repayment of intercompany borrowings — — — — (192 ) 192 — Intercompany transfers 277 326 (890 ) (854 ) 1,141 — — Dividends paid (277 ) — — — — — (277 ) Intercompany dividends — — — — (605 ) 605 — Distributions to noncontrolling interests — — — — (32 ) — (32 ) Tax withholdings on share-based compensation — — — (15 ) — — (15 ) Net cash provided by (used in) financing activities — 43 90 (827 ) 87 563 (44 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (15 ) — (15 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — 90 (78 ) 816 — 828 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — — 109 524 — 633 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — — 223 — 223 Cash, restricted cash and cash equivalents, beginning of period — — — 109 747 — 856 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 90 31 1,062 — 1,183 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — — 501 — 501 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 90 $ 31 $ 1,563 $ — $ 1,684 Year Ended December 31, 2015 Parent HWF Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ 184 $ 975 $ 723 $ (436 ) $ 1,446 Investing Activities: Capital expenditures for property and equipment — — (11 ) (299 ) — (310 ) Acquisitions, net of cash acquired — — — (1,402 ) — (1,402 ) Proceeds from asset dispositions — — — 2,205 — 2,205 Contract acquisition costs — — (23 ) (14 ) — (37 ) Capitalized software costs — — (57 ) (5 ) — (62 ) Other — — 13 7 — 20 Net cash provided by (used in) investing activities — — (78 ) 492 — 414 Financing Activities: Borrowings — — — 48 — 48 Repayment of debt — (775 ) — (849 ) — (1,624 ) Intercompany transfers 138 591 (693 ) (36 ) — — Dividends paid (138 ) — — — — (138 ) Intercompany dividends — — (184 ) (252 ) 436 — Distributions to noncontrolling interests — — — (8 ) — (8 ) Tax withholdings on share-based compensation — — (31 ) — — (31 ) Net cash used in financing activities — (184 ) (908 ) (1,097 ) 436 (1,753 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — (19 ) — (19 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — (11 ) 99 — 88 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 119 509 — 628 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — 1 139 — 140 Cash, restricted cash and cash equivalents, beginning of period — — 120 648 — 768 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 109 524 — 633 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — 223 — 223 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 109 $ 747 $ — $ 856 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure (unaudited) [Abstract] | |
Quarterly Financial Information | Selected Quarterly Financial Information The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to fairly present our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,161 $ 2,346 $ 2,354 $ 2,279 $ 9,140 Operating income 277 365 382 348 1,372 Net income 75 167 181 841 1,264 Net income attributable to Hilton stockholders 74 166 179 840 1,259 Basic earnings per share (1) $ 0.22 $ 0.51 $ 0.56 $ 2.63 $ 3.88 Diluted earnings per share (1) $ 0.22 $ 0.51 $ 0.55 $ 2.61 $ 3.85 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 1,726 $ 1,950 $ 1,867 $ 1,839 $ 7,382 Operating income 170 273 265 244 952 Income (loss) from continuing operations, net of taxes 191 100 89 (388 ) (8 ) Income from discontinued operations, net of taxes 119 144 103 6 372 Net income (loss) 310 244 192 (382 ) 364 Net income (loss) attributable to Hilton stockholders 309 239 187 (387 ) 348 Basic earnings (loss) per share (1) : Net income (loss) from continuing operations $ 0.58 $ 0.29 $ 0.27 $ (1.20 ) $ (0.05 ) Net income from discontinued operations 0.36 0.44 0.30 0.02 1.11 Net income (loss) $ 0.94 $ 0.73 $ 0.57 $ (1.18 ) $ 1.06 Diluted earnings (loss) per share (1) : Net income (loss) from continuing operations $ 0.58 $ 0.29 $ 0.27 $ (1.20 ) $ (0.05 ) Net income from discontinued operations 0.36 0.43 0.30 0.02 1.11 Net income (loss) $ 0.94 $ 0.72 $ 0.57 $ (1.18 ) $ 1.06 ____________ (1) The sum of the earnings (loss) per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. |
Basis of Presentation and Sum35
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Hilton, our wholly owned subsidiaries and entities in which we have a controlling financial interest, including variable interest entities ("VIEs") where we are the primary beneficiary. Entities in which we have a controlling financial interest generally comprise majority owned real estate ownership and management enterprises. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other ownership interests. If the entity is considered to be a VIE, we determine whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. All material intercompany transactions and balances have been eliminated in consolidation. References in these financial statements to net income (loss) attributable to Hilton stockholders and Hilton stockholders' equity (deficit) do not include noncontrolling interests, which represent the outside ownership interests of our consolidated, non-wholly owned entities and are reported separately. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with United States of America ("U.S.") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. |
Reclassifications | Reclassifications Certain amounts in previously issued financial statements have been reclassified to conform to the presentation following the spin-offs, which includes the reclassification of the combined financial position and results of operations of Park and HGV as discontinued operations as of December 31, 2016 and for the years ended December 31, 2016 and 2015 . Additionally, certain line items in the consolidated statements of operations have been revised to reflect the operating structure of Hilton subsequent to the spin-offs. The primary changes to the consolidated statements of operations are the disaggregation of management and franchise fee revenues and the combination of certain line items that were individually immaterial. |
Revenue Recognition | Revenue Recognition Revenues are primarily derived from the following sources and are generally recognized as services are rendered and when collectibility is reasonably assured. Amounts received in advance of revenue recognition are deferred as liabilities. • Franchise fees represent fees earned in connection with the licensing of one of our brands, usually under long-term contracts with a hotel owner. We charge a monthly franchise royalty fee, generally based on a percentage of the hotel's gross room revenue, and, for our full service brands, a percentage of gross food and beverage revenues and other revenues, as applicable. Additionally, we receive one-time upfront fees upon execution of certain franchise contracts, that consist of application, initiation and other fees for new hotels entering the system, when there is a change in ownership or a contract is extended. We also earn license fees from a license agreement with HGV and co-brand credit card arrangements for the use of certain Hilton marks and intellectual property. We recognize franchise fee revenue as the fees are earned, which is when all material services or conditions have been performed or satisfied by us. • Base and other management fees and incentive management fees represent fees earned from hotels that we manage, usually under long-term contracts with the property owner. Management fees usually include a base fee, which is generally a percentage of the hotel's gross revenue, and an incentive fee, which is typically based on a fixed or variable percentage of hotel operating profits and in some cases may be subject to a stated return threshold to the owner, normally measured over a one-calendar year period. We recognize base fees as revenue when earned in accordance with the terms of the management agreement. For incentive fees, we recognize those amounts that would be due if the contract was terminated at the financial statement date. • Owned and leased hotel revenues primarily consist of hotel room rentals, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking) related to owned, leased and consolidated properties owned or leased by non-wholly owned entities. Revenues are recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. • Other revenues include revenues generated by the incidental support of hotel operations for owned, leased, managed and franchised hotels, including purchasing operations, and other operating income. Purchasing revenues include any amounts received for vendor rebate arrangements that we participate in as a manager of hotel properties. • Other revenues from managed and franchised properties represent contractual reimbursements to us by property owners for the payroll and related costs for properties that we manage where the property employees are legally our responsibility, as well as certain other operating costs of the managed and franchised properties’ operations, marketing expenses and other expenses associated with our brands and shared services that are paid from fees collected in advance from these properties when the costs are incurred. The corresponding expenses are presented as other expenses from managed and franchised properties in our consolidated statements of operations, resulting in no effect on operating income (loss) or net income (loss). We are required to collect certain taxes and fees from customers on behalf of government agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in revenues. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. |
Discontinued Operations | Discontinued Operations In determining whether a group of assets that is disposed (or to be disposed) should be presented as a discontinued operation, we analyze whether the group of assets being disposed represents a component of the Company; that is, whether it had historic operations and cash flows that were clearly distinguished, both operationally and for financial reporting purposes. In addition, we consider whether the disposal represents a strategic shift that has or will have a major effect on our operations and financial results. The results of discontinued operations, as well as any gain or loss on the disposal, if applicable, are aggregated and separately presented in our consolidated statements of operations, net of income taxes. The historical financial position of discontinued operations are aggregated and separately presented in our consolidated balance sheets. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents include cash balances established as security for certain guarantees, ground rent and property tax escrows, insurance and |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts An allowance for doubtful accounts is provided on accounts receivable when losses are probable based on historical collection activity and current business conditions. |
Goodwill | Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is below the carrying amount. In connection with the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone (the "Merger"), we recorded goodwill representing the excess purchase price over the fair value of the other identified assets and liabilities. We evaluate goodwill for potential impairment by comparing the carrying value of our reporting units to their fair value. Our reporting units are the same as our operating segments as described in Note 19 : " Business Segments ." We perform this evaluation annually or at an interim date if indicators of impairment exist. In any year we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If we cannot determine qualitatively that the fair value is in excess of the carrying value, or we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit with its carrying value, including goodwill. The estimated fair value is based on internal projections of expected future cash flows and operating plans, as well as market conditions relative to the operations of our reporting units. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired; otherwise, an impairment loss is recognized within our consolidated statements of operations in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. |
Brands | Brands We own, lease, manage and franchise hotels under our portfolio of brands. There are no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these brands and, accordingly, the useful lives of these brands are considered to be indefinite. As of December 31, 2017 , our brand portfolio included Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio - A Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton and our timeshare brand, Hilton Grand Vacations. At the time of the Merger, our brands were assigned a fair value based on a common valuation technique known as the relief from royalty approach. Canopy by Hilton, Curio - A Collection by Hilton, Tapestry Collection by Hilton, Tru by Hilton, and Home2 Suites by Hilton were launched post-Merger and, as such, they were not assigned fair values and we do not have any intangible assets for these brands recorded in our consolidated balances sheets. We evaluate our brands for impairment on an annual basis or at other times during the year if events or circumstances indicate that it is more likely than not that the fair value of the brand is below the carrying value. If we cannot determine qualitatively that the fair value is in excess of the carrying value, or we decide to bypass the qualitative assessment, we perform a quantitative analysis. If a brand’s estimated current fair value is less than its respective carrying value, the excess of the carrying value over the estimated fair value is recognized in our consolidated statements of operations within impairment loss. |
Intangible Assets, Finite-Lived | Intangible Assets with Finite Useful Lives We have certain finite lived intangible assets that were initially recorded at their fair value at the time of the Merger. These intangible assets consist of management contracts, franchise contracts, leases, certain proprietary technologies and our guest loyalty program, Hilton Honors. Additionally, we capitalize direct and incremental management and franchise contract acquisition costs, including development commissions, as finite lived intangible assets. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which are generally as follows: management contracts recorded at the Merger ( 13 to 16 years), management contract acquisition costs ( 20 to 30 years), franchise contracts recorded at the Merger ( 12 to 13 years), franchise contract acquisition costs ( 10 to 20 years), leases ( 12 to 35 years), Hilton Honors ( 16 years) and capitalized software development costs ( 3 years). We capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses. Internal and external costs incurred in connection with development of upgrades or enhancements that result in additional information technology functionality are also capitalized. These capitalized costs are amortized on a straight-line basis over the estimated useful life of the software. These capitalized costs are recorded in other intangible assets in our consolidated balance sheets. We review all finite lived intangible assets for impairment when circumstances indicate that their carrying values may not be recoverable. If the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the fair value in our consolidated statements of operations. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements ( 8 to 40 years), furniture and equipment ( 3 to 8 years) and computer equipment ( 3 to 5 years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of potential impairment. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net book value of the asset group. If it is determined that the expected undiscounted future cash flows are less than the net book value of the asset group, the excess of the net book value over the estimated fair value is recorded in our consolidated statements of operations within impairment loss. Fair value is generally estimated using valuation techniques that consider the discounted cash flows of the asset group using discount and capitalization rates deemed reasonable for the type of assets, as well as prevailing market conditions, appraisals, recent similar transactions in the market and, if appropriate and available, current estimated net sales proceeds from pending offers. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred, which is generally upon acquisition, construction or development or through the normal operation of the asset. |
Hilton Honors | Hilton Honors Hilton Honors is a guest loyalty and marketing program provided to hotels and resort properties. Nearly all of our owned, leased, managed and franchised hotels and resort properties participate in the Hilton Honors program. Hilton Honors members earn points based on their spending at our participating properties and through participation in affiliated partner programs. When points are earned by Hilton Honors members, the property or affiliated partner pays Hilton Honors based on an estimated cost per point for the estimated cost of award redemptions, as well as the costs of operating the program, which include marketing, promotion, communication and administrative expenses. Hilton Honors member points are accumulated and may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties, including, but not limited to, airlines, car rentals, cruises, vacation packages, shopping and dining. We record a liability for the payments received from participating hotels and program partners in an amount equal to the estimated cost per point of the future redemption obligation. We engage outside actuaries to assist in determining the fair value of the future award redemption obligation using statistical formulas that project future point redemptions based on factors that include historical experience, an estimate of "breakage" (points that will never be redeemed), an estimate of the points that will eventually be redeemed and the cost of reimbursing hotels and other third parties in respect to other redemption opportunities available to members. Revenue is recognized by participating hotels and resorts only when points that have been redeemed for hotel stay certificates are used by members or their designees at the respective properties. Additionally, when members of the Hilton Honors loyalty program redeem award certificates at our owned and leased hotels, we recognize owned and leased hotel revenues in our consolidated statements of operations. |
Fair Value Measurement | Fair Value Measurements - Valuation Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (i.e., an exit price). We use the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our own assumptions about the data market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized below: • Level 1 - Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. • Level 3 - Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Proper classification of fair value measurements within the valuation hierarchy is considered each reporting period. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. |
Derivative Instruments | Derivative Instruments We use derivative instruments as part of our overall strategy to manage our exposure to market risks associated with fluctuations in interest rates and foreign currency exchange rates. We regularly monitor the financial stability and credit standing of the counterparties to our derivative instruments. We do not enter into derivative financial instruments for trading or speculative purposes. We record all derivatives at fair value. On the date the derivative contract is entered into, we may designate the derivative as one of the following: a hedge of a forecasted transaction or the variability of cash flows to be paid ("cash flow hedge"), a hedge of the fair value of a recognized asset or liability ("fair value hedge") or a hedge of our investment in a foreign operation ("net investment hedge"). Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge or net investment hedge are recorded in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss) until they are reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings. If we do not specifically designate a derivative as one of the above, changes in the fair value of the undesignated derivative instrument are reported in current period earnings. Likewise, the ineffective portion of designated derivative instruments is reported in current period earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged in the consolidated statements of cash flows, while cash flows from undesignated derivative financial instruments are included as an investing activity. If we determine that we qualify for and will designate a derivative as a hedging instrument, at the designation date we formally document all relationships between hedging activities, including the risk management objective and strategy for undertaking various hedge transactions. This process includes matching all derivatives that are designated as cash flow hedges to specific forecasted transactions, linking all derivatives designated as fair value hedges to specific assets and liabilities in the consolidated balance sheets and determining the foreign currency exposure of the net investment of the foreign operation for a net investment hedge. On a quarterly basis, we assess the effectiveness of our designated hedges in offsetting the variability in the cash flows or fair values of the hedged assets or obligations using the Hypothetical Derivative Method. This method compares the cumulative change in fair value of each hedging instrument to the cumulative change in fair value of a hypothetical hedging instrument, which has terms that identically match the critical terms of the respective hedged transactions. Thus, the hypothetical hedging instrument is presumed to perfectly offset the hedged cash flows. Ineffectiveness results when the cumulative change in the fair value of the hedging instrument exceeds the cumulative change in the fair value of the hypothetical hedging instrument. We discontinue hedge accounting prospectively, when the derivative is no longer highly effective as a hedge, the underlying hedged transaction is no longer probable or the hedging instrument expires, is sold, terminated or exercised. |
Currency Translation | Currency Translation The United States dollar ("USD") is our reporting currency and is the functional currency of our consolidated and unconsolidated entities operating in the U.S. The functional currency for our consolidated and unconsolidated entities operating outside of the U.S. is the currency of the primary economic environment in which the respective entity operates. Assets and liabilities measured in foreign currencies are translated into USD at the prevailing exchange rates in effect as of the financial statement date and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive income (loss) in our consolidated balance sheets. Income and expense accounts are translated at the average exchange rate for the period. Gains and losses from foreign exchange rate changes related to transactions denominated in a currency other than an entity's functional currency or intercompany receivables and payables denominated in a currency other than an entity’s functional currency that are not of a long-term investment nature are recognized as gain (loss) on foreign currency transactions in our consolidated statements of operations. Where certain specific evidence indicates intercompany receivables and payables will not be settled in the foreseeable future and are of a long-term nature, gains and losses from foreign exchange rate changes are recognized as other comprehensive income (loss) in our consolidated statements of comprehensive income (loss). |
Insurance | Insurance We are self-insured for losses up to our third-party insurance deductibles for general liability, auto liability and workers' compensation at our owned, leased and managed properties that participate in our programs. We purchase insurance coverage for claim amounts that exceed our deductible obligations. In addition, through our captive insurance subsidiary, we participate in reinsurance arrangements that provide coverage for a certain portion of our deductibles and/or acts as a financial intermediary for claim payments on our self-insurance program, along with property and casualty insurance for certain international hotels that are reinsured by other third parties. These obligations and reinsurance arrangements can cause timing differences in the recognition of assets, liabilities, gains and losses between reporting periods, although these amounts ultimately offset when the related claims are settled. Our insurance reserves are accrued based on our deductibles related to the estimated ultimate cost of claims that occurred during the covered period, which includes claims incurred but not reported, for which we will be responsible. These estimates are prepared with the assistance of outside actuaries and consultants. The ultimate cost of claims for a covered period may differ from our original estimates. |
Share-based Compensation | Share-based Compensation As part of our 2013 and 2017 Omnibus Incentive Plans, we award time-vesting restricted stock units and restricted stock ("RSUs"), nonqualified stock options ("options") and performance-vesting restricted stock units and restricted stock (collectively, "performance shares") to our eligible employees and deferred share units ("DSUs") to members of our board of directors. • RSUs generally vest in equal annual installments over two or three years from the date of grant. Vested RSUs generally will be settled for the Company's common stock, with the exception of certain awards that will be settled in cash. The grant date fair value is equal to the closing stock price on the grant date. • Options vest over three years in equal annual installments from the grant date and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances. The exercise price is equal to the closing price of the Company’s common stock on the date of grant. The grant date fair value is estimated using the Black-Scholes-Merton option-pricing model. • Performance shares are settled at the end of a three -year performance period with 50 percent of the shares subject to achievement based on a measure of the Company’s Adjusted earnings before interest expense, a provision for income taxes and depreciation and amortization ("EBITDA") compound annual growth rate ("CAGR") ("EBITDA CAGR") and the other 50 percent of the shares subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR ("FCF CAGR"). The total number of performance shares that vest related to each performance measure is based on an achievement factor that, in both cases, ranges from a zero to a 200 percent payout. The grant date fair value for these awards is equal to the closing stock price on the grant date. • DSUs are issued to our independent directors and are fully vested and non-forfeitable on the grant date. DSUs are settled for shares of the Company's common stock, which are deliverable upon the earlier of termination of the individual's service on our board of directors or a change in control. The grant date fair value is equal to the closing stock price on the grant date. We recognize these share-based payment transactions when services from the employees are received and recognize either a corresponding increase in additional paid-in capital or accounts payable, accrued expenses and other in our consolidated balance sheets, depending on whether the instruments granted satisfy the equity or liability classification criteria. The measurement objective for these equity awards is the estimated fair value at the grant date of the equity instruments that we are obligated to issue when employees have rendered the requisite service and satisfied any other conditions necessary to earn the right to benefit from the instruments. The compensation expense for an award classified as an equity instrument is recognized ratably over the requisite service period. The requisite service period is the period during which an employee is required to provide service in exchange for an award. Liability awards are measured based on the award’s fair value and the fair value is remeasured at each reporting date until the date of settlement. Compensation expense for each period until settlement is based on the change (or a portion of the change, depending on the percentage of the requisite service that has been rendered at the reporting date) in the fair value of the instrument for each reporting period. Compensation expense for awards with performance conditions is recognized over the requisite service period if it is probable that the performance condition will be satisfied. If such performance conditions are not considered probable until they occur, no compensation expense for these awards is recognized. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts and tax attribute carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the respective temporary differences or operating loss or tax credit carryforwards are expected to be recovered or settled. The realization of deferred tax assets and tax loss and tax credit carryforwards is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. On December 22, 2017, H.R.1, known as the Tax Cuts and Jobs Act of 2017 (the "TCJ Act") was signed into law and includes widespread changes to the Internal Revenue Code including, among other items, a reduction to the federal corporate tax rate to 21 percent, a one-time transition tax on earnings of certain foreign subsidiaries that were previously deferred and the creation of new taxes on certain foreign earnings. As of December 31, 2017, we had not completed our accounting for the tax effects of enactment of the TCJ Act; however, where possible, we made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. In other cases, we were not able to make a reasonable estimate and continued to account for those items based on the provisions of the tax laws that were in effect immediately prior to enactment. We will update our estimates and finalize our measurement of the result of the TCJ Act over a one-year measurement period, to be completed in or before December 2018. We use a prescribed recognition threshold for the financial statement recognition and measurement of a tax position taken in a tax return. For all income tax positions, we first determine whether it is "more-likely-than-not" that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If it is determined that a position meets the more-likely-than-not recognition threshold, the benefit recognized in the financial statements is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. |
New accounting pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04 ("ASU 2017-04"), Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies the subsequent measurement of goodwill by removing Step 2 from the goodwill impairment test. We elected, as permitted by the standard, to early adopt ASU 2017-04 on a prospective basis as of January 1, 2017. The adoption did not have a material effect on our consolidated financial statements. 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 withholding requirements, as well as to clarify the classification in the statement of cash flows. We adopted ASU 2016-09 as of January 1, 2017. One of the provisions of this ASU requires entities to make an accounting policy election with respect to forfeitures of share-based payment awards, and we elected to account for forfeitures as they occur and adopted this provision of ASU 2016-09 using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of January 1, 2017 of approximately $1 million . Additionally, we have applied the provisions of this ASU on a retrospective basis in our consolidated statements of cash flows, which includes presenting: (i) excess tax benefits as an operating activity, which were previously presented as a financing activity; and (ii) cash payments to tax authorities for employee taxes when shares are withheld to meet statutory withholding requirements as a financing activity, which were previously presented as an operating activity. Accounting Standards Not Yet Adopted 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 intend to adopt the standard on January 1, 2019 and apply the package of practical expedients available to us upon adoption. We are continuing to evaluate the effect that this ASU will have on our consolidated financial statements, but we expect this ASU to have a material effect on our consolidated balance sheet. 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 when a customer obtains control of promised goods or services and in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. Subsequent to ASU 2014-09, the FASB issued several related ASUs to clarify the application of the new revenue recognition standard, collectively referred to herein as ASU 2014-09. ASU 2014-09 permits two transition approaches: full retrospective and modified retrospective. We will adopt ASU 2014-09 on January 1, 2018 using the full retrospective approach. In preparation for adoption, we have implemented internal controls and key system functionality to enable the preparation of the necessary financial information and have reached conclusions on key accounting assessments. The primary anticipated effects of the provisions of ASU 2014-09 on revenues for the year ended December 31, 2017 are as follows: • Application, initiation and other fees, charged when (i) new hotels enter our system; (ii) there is a change of ownership; or (iii) contracts are extended, will be recognized over the term of the franchise contract, rather than upon execution of the contract. This change is expected to reduce franchise fees by $56 million . • Certain contract acquisition costs related to our management and franchise contracts will be recognized over the term of the contracts as a reduction to revenue, instead of as amortization expense. This change is expected to reduce franchise fees and base and other management fees by $5 million and $9 million , respectively, which will accordingly reduce depreciation and amortization by $14 million , with no effect on the Company's net income (loss). • Incentive management fees will be recognized to the extent that it is probable that a significant reversal will not occur as a result of future hotel profits or cash flows, as opposed to recognizing amounts that would be due if the management contract was terminated at the end of the reporting period. This change will not affect the Company's net income (loss) for any full year period. • Revenue related to our Hilton Honors guest loyalty program will be recognized upon point redemption, net of any reward reimbursement paid to a third party, as opposed to recognized on a gross basis at the time points are issued in conjunction with the accrual of the expected future cost of the reward reimbursement. Additionally, since we are also the sponsor of the loyalty program, points issued at owned and leased hotels will be accounted for as a reduction of revenue from owned and leased hotels, as opposed to expenses of owned and leased hotels. These changes are expected to reduce total revenues by $1,009 million , with a corresponding reduction to total expenses of $818 million , primarily reducing other revenues and expenses from managed and franchised properties and an expected offsetting reduction of revenues and expenses from owned and leased hotels of $18 million . • Reimbursable fees related to our management and franchise contracts will be recognized as they are billed, as opposed to when we incur the related expenses. This change is expected to increase other revenues from managed and franchised properties by $73 million , but could increase or reduce these revenues in other periods. Revenue recognition related to our accounting for ongoing royalty and management fee revenues, direct reimbursable fees from our management and franchise contracts and hotel guest transactions at our owned and leased hotels will otherwise remain substantially unchanged. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | The following table presents the assets and liabilities of Park and HGV that were included in discontinued operations in our consolidated balance sheet: December 31, 2016 (in millions) ASSETS Current Assets: Cash and cash equivalents $ 341 Restricted cash and cash equivalents 160 Accounts receivable, net 250 Prepaid expenses 48 Inventories 527 Current portion of financing receivables, net 136 Other 16 Total current assets of discontinued operations (variable interest entities - $92) 1,478 Intangibles and Other Assets: Goodwill 604 Management and franchise contracts, net 56 Other intangible assets, net 60 Property and equipment, net 8,589 Deferred income tax assets 35 Financing receivables, net 895 Investments in affiliates 81 Other 27 Total intangibles and other assets of discontinued operations (variable interest entities - $405) 10,347 TOTAL ASSETS OF DISCONTINUED OPERATIONS $ 11,825 LIABILITIES Current Liabilities: Accounts payable, accrued expenses and other $ 632 Current maturities of long-term debt 65 Current maturities of timeshare debt 73 Income taxes payable 4 Total current liabilities of discontinued operations (variable interest entities - $81) 774 Long-term debt 3,437 Timeshare debt 621 Deferred revenues 22 Deferred income tax liabilities 2,797 Other 17 TOTAL LIABILITIES OF DISCONTINUED OPERATIONS (variable interest entities - $506) $ 7,668 The following table presents the results of operations of Park and HGV that were included in discontinued operations in our consolidated statements of operations: Year Ended December 31, 2016 2015 (in millions) Total revenues from discontinued operations $ 4,281 $ 4,139 Expenses Owned and leased hotels 1,805 1,754 Timeshare 948 897 Depreciation and amortization 322 307 Other 298 153 Total expenses from discontinued operations 3,373 3,111 Gain on sales of assets, net 1 143 Operating income from discontinued operations 909 1,171 Non-operating loss, net (210 ) (208 ) Income from discontinued operations before income taxes 699 963 Income tax expense (327 ) (428 ) Income from discontinued operations, net of taxes 372 535 Income from discontinued operations attributable to noncontrolling interests, net of taxes (6 ) (7 ) Income from discontinued operations attributable to Hilton stockholders, net of taxes $ 366 $ 528 The following table presents selected financial information of Park and HGV that was included in our consolidated statements of cash flows: Year Ended December 31, 2016 2015 (in millions) Non-cash items included in net income: Depreciation and amortization $ 322 $ 307 Gain on sales of assets, net (1 ) (143 ) Investing activities: Capital expenditures for property and equipment $ (255 ) $ (243 ) Acquisitions, net of cash acquired — (1,402 ) Proceeds from asset dispositions — 1,866 |
Consolidated Variable Interes37
Consolidated Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | Our consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following: December 31, 2017 2016 (in millions) Cash and cash equivalents $ 73 $ 57 Accounts receivable, net 16 14 Property and equipment, net 57 52 Deferred income tax assets 56 58 Other non-current assets 57 53 Accounts payable, accrued expenses and other 43 33 Long-term debt (1) 212 212 ____________ (1) Includes capital lease obligations of $191 million as of December 31, 2017 and 2016. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Our goodwill balances, by reporting unit, were as follows: Ownership (1) Management and Franchise (2) Total (in millions) Balance as of December 31, 2015 $ 193 $ 5,087 $ 5,280 Foreign currency translation (9 ) (53 ) (62 ) Balance as of December 31, 2016 184 5,034 5,218 Spin-off of Park (91 ) — (91 ) Foreign currency translation 11 52 63 Balance as of December 31, 2017 $ 104 $ 5,086 $ 5,190 ____________ (1) The balances as of December 31, 2016 and 2015 exclude goodwill of $2,707 million and $2,710 million, respectively, and accumulated impairment losses of $2,103 million that were attributable to Park and included in non-current assets of discontinued operations in our consolidated balance sheets. Amounts for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: Gross Carrying Value Accumulated Impairment Losses Net Carrying Value (in millions) Balance as of December 31, 2015 $ 865 $ (672 ) $ 193 Foreign currency translation (9 ) — (9 ) Balance as of December 31, 2016 856 (672 ) 184 Spin-off of Park (423 ) 332 (91 ) Foreign currency translation 11 — 11 Balance as of December 31, 2017 $ 444 $ (340 ) $ 104 (2) There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2017, 2016 and 2015. |
Schedule of Other Intangible Assets | Amortizing intangible assets were as follows: December 31, 2017 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,242 $ (1,715 ) $ 527 Contract acquisition costs and other 457 (75 ) 382 $ 2,699 $ (1,790 ) $ 909 Other amortizing intangible assets: Leases (1) $ 301 $ (153 ) $ 148 Capitalized software 585 (428 ) 157 Hilton Honors (1) 341 (217 ) 124 Other 38 (34 ) 4 $ 1,265 $ (832 ) $ 433 December 31, 2016 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,221 $ (1,534 ) $ 687 Contract acquisition costs and other 343 (67 ) 276 $ 2,564 $ (1,601 ) $ 963 Other amortizing intangible assets: Leases (1) $ 276 $ (126 ) $ 150 Capitalized software 510 (362 ) 148 Hilton Honors (1) 335 (192 ) 143 Other 37 (31 ) 6 $ 1,158 $ (711 ) $ 447 ____________ (1) Represents intangible assets that were initially recorded at their fair value as part of the Merger. |
Schedule of Future Amortization Expense of Other Intangible Assets | We estimated future amortization expense on our amortizing intangible assets as of December 31, 2017 to be as follows: Year (in millions) 2018 $ 286 2019 274 2020 223 2021 87 2022 75 Thereafter 397 $ 1,342 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment were as follows: December 31, 2017 2016 (in millions) Land $ 12 $ 12 Buildings and leasehold improvements 428 384 Furniture and equipment 346 357 Construction-in-progress 17 14 803 767 Accumulated depreciation (450 ) (426 ) $ 353 $ 341 |
Accounts Payable, Accrued Exp40
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other were as follows: December 31, 2017 2016 (in millions) Accrued employee compensation and benefits $ 502 $ 438 Accounts payable 282 314 Liability for guest loyalty program, current 622 543 Insurance reserves, current 264 122 Other accrued expenses 480 404 $ 2,150 $ 1,821 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt balances, including obligations for capital leases, and associated interest rates as of December 31, 2017 were as follows: December 31, 2017 2016 (in millions) Senior notes due 2021 $ — $ 1,500 Senior notes with a rate of 4.250% due 2024 1,000 1,000 Senior notes with a rate of 4.625% due 2025 900 — Senior notes with a rate of 4.875% due 2027 600 — Senior secured term loan facility due 2020 — 750 Senior secured term loan facility with a rate of 3.55%, due 2023 3,929 3,209 Capital lease obligations with an average rate of 6.33%, due 2021 to 2030 233 227 Other debt with an average rate of 2.65%, due 2018 to 2026 21 20 6,683 6,706 Less: unamortized deferred financing costs and discount (81 ) (90 ) Less: current maturities of long-term debt (1) (46 ) (33 ) $ 6,556 $ 6,583 ____________ (1) Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Debt maturities | The contractual maturities of our long-term debt as of December 31, 2017 , were as follows: Year (in millions) 2018 $ 54 2019 55 2020 57 2021 58 2022 58 Thereafter 6,401 $ 6,683 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other noncurrent liabilities | Other long-term liabilities were as follows: December 31, 2017 2016 (in millions) Program surplus $ 549 $ 446 Pension obligations 165 215 Other long-term tax liabilities 397 480 Deferred employee compensation and benefits 117 113 Insurance reserves 162 131 Other 80 107 $ 1,470 $ 1,492 |
Derivative Instruments and He43
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The fair values of our derivative instruments in our consolidated balance sheets were as follows: December 31, Balance Sheet Classification 2017 2016 (in millions) Cash Flow Hedges: Interest rate swaps Other non-current assets $ 11 N/A Forward contracts Accounts payable, accrued expenses and other 1 N/A Non-designated Hedges: Interest rate swaps Other liabilities N/A $ 12 Forward contracts Other current assets 4 3 Forward contracts Accounts payable, accrued expenses and other 1 4 |
Earnings Effect of Derivative Instruments | The gains and losses recognized in our consolidated statements of operations and consolidated statements of comprehensive income (loss) before any effect for income taxes were as follows: Year Ended December 31, Classification of Gain (Loss) Recognized 2017 2016 2015 (in millions) Cash Flow Hedges (1)(2) : Interest rate swaps Other comprehensive income (loss) $ 11 $ (7 ) $ (11 ) Forward contracts Other comprehensive income (loss) (1 ) N/A N/A Non-designated Hedges: Interest rate swaps Other non-operating income, net 2 4 N/A Interest rate swaps (3) Interest expense (10 ) (4 ) N/A Forward contracts Gain (loss) on foreign currency transactions 12 7 11 ____________ (1) There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the years ended December 31, 2017 , 2016 and 2015 . (2) The earnings effect of the Fee Forward Contracts on fee revenues for the year ended December 31, 2017 was less than $1 million. (3) These amounts are related to the dedesignation of the 2013 Interest Rate Swaps as cash flow hedges and were reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below (see Note 11 : " Derivative Instruments and Hedging Activities " for the fair value information of our derivatives and Note 15 : " Employee Benefit Plans " for fair value information of our pension assets): December 31, 2017 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 284 $ — $ 284 $ — Restricted cash equivalents 12 — 12 — Liabilities: Long-term debt (1) 6,348 2,575 — 3,954 December 31, 2016 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 782 $ — $ 782 $ — Restricted cash equivalents 11 — 11 — Liabilities: Long-term debt (1) 6,369 2,516 — 4,006 ____________ (1) The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments | The future minimum rent payments under non-cancelable leases as of December 31, 2017 , were as follows: Operating Capital Non-Recourse Year (in millions) 2018 $ 192 $ 5 $ 19 2019 174 5 24 2020 175 6 24 2021 165 6 24 2022 130 5 24 Thereafter 1,025 34 158 Total minimum rent payments $ 1,861 61 273 Less: amount representing interest (19 ) (82 ) Present value of net minimum rent payments $ 42 $ 191 |
Schedule of Rent Expense | Rent expense for all operating leases was as follows: Year Ended December 31, 2017 2016 2015 (in millions) Minimum rentals $ 183 $ 224 $ 244 Contingent rentals 101 98 104 $ 284 $ 322 $ 348 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income from continuing operations before income taxes were as follows: Year Ended December 31, 2017 2016 2015 (in millions) U.S. income before tax $ 791 $ 934 $ 262 Foreign income (loss) before tax 139 (378 ) 271 Income from continuing operations before income taxes $ 930 $ 556 $ 533 |
Schedule of Components of Income Tax Expense (Benefit) | The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2017 2016 2015 (in millions) Current: Federal $ 239 $ 441 $ 164 State 59 143 51 Foreign 95 70 64 Total current 393 654 279 Deferred: Federal (679 ) (116 ) (606 ) State (24 ) 50 (86 ) Foreign (24 ) (24 ) 65 Total deferred (727 ) (90 ) (627 ) Total provision (benefit) for income taxes $ (334 ) $ 564 $ (348 ) |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliations of our tax provision at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2017 2016 2015 (in millions) Statutory U.S. federal income tax provision $ 326 $ 194 $ 187 State income taxes, net of U.S. federal tax benefit 26 23 17 Impact of foreign operations 1 32 3 Effects of the Tax Cuts and Jobs Act (665 ) — — Nontaxable liquidation of subsidiaries — — (628 ) Corporate restructuring — 482 — Change in deferred tax asset valuation allowance (48 ) (22 ) 24 Provision (benefit) for uncertain tax positions 38 (139 ) 18 Non-deductible share-based compensation — — 23 Non-deductible goodwill — — 13 Other, net (12 ) (6 ) (5 ) Provision (benefit) for income taxes $ (334 ) $ 564 $ (348 ) |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the temporary differences and carryforwards that give rise to our net deferred tax asset (liability) were as follows: December 31, 2017 2016 (in millions) Deferred tax assets: Net operating loss carryforwards $ 395 $ 394 Compensation 123 214 Other reserves 12 15 Capital lease obligations 78 84 Insurance reserves 27 36 Program surplus 17 84 Property and equipment 32 26 Investments 16 12 Other 57 66 Total gross deferred tax assets 757 931 Less: valuation allowance (408 ) (507 ) Deferred tax assets 349 424 Deferred tax liabilities: Brands (1,121 ) (1,626 ) Amortizing intangible assets (178 ) (305 ) Investment in foreign subsidiaries — (39 ) Deferred income — (150 ) Deferred tax liabilities (1,299 ) (2,120 ) Net deferred taxes $ (950 ) $ (1,696 ) |
Summary of Unrecognized Tax Benefits | Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2017 2016 2015 (in millions) Balance at beginning of year $ 174 $ 315 $ 296 Additions for tax positions related to the prior year 3 77 25 Additions for tax positions related to the current year 126 9 8 Reductions for tax positions related to prior years (10 ) (204 ) (4 ) Settlements (9 ) (21 ) (4 ) Lapse of statute of limitations (2 ) (2 ) (2 ) Currency translation adjustment 1 — (4 ) Balance at end of year $ 283 $ 174 $ 315 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of changes in projected benefit obligations | The following table presents the projected benefit obligation, the fair value of plan assets, the funded status and the accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2017 2016 2017 2016 2017 2016 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 381 $ 394 $ 404 $ 391 $ 81 $ 82 Service cost — — 2 2 1 2 Interest cost 12 13 10 12 1 2 Actuarial loss 16 1 4 87 3 2 Settlements and curtailments (1 ) (2 ) — — — (1 ) Effect of foreign exchange rates — — 40 (74 ) 4 (1 ) Benefits paid (24 ) (25 ) (17 ) (14 ) (4 ) (5 ) Benefit obligation at end of year $ 384 $ 381 $ 443 $ 404 $ 86 $ 81 Change in Plan Assets: Fair value of plan assets at beginning of year $ 267 $ 265 $ 336 $ 368 $ 58 $ 60 Actual return on plan assets, net of expenses 43 11 24 42 6 1 Employer contributions 21 18 9 5 4 3 Settlements (1 ) (2 ) — — — (1 ) Effect of foreign exchange rates — — 34 (65 ) 1 — Benefits paid (24 ) (25 ) (17 ) (14 ) (4 ) (5 ) Fair value of plan assets at end of year 306 267 386 336 65 58 Funded status at end of year (underfunded) (78 ) (114 ) (57 ) (68 ) (21 ) (23 ) Accumulated benefit obligation $ 384 $ 381 $ 443 $ 404 $ 86 $ 81 |
Schedule of amounts recognized in balance sheet | Amounts recognized in the consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2017 2016 2017 2016 2017 2016 (in millions) Other non-current assets $ — $ 4 $ — $ — $ 9 $ 6 Other liabilities (78 ) (118 ) (57 ) (68 ) (30 ) (29 ) Net amount recognized $ (78 ) $ (114 ) $ (57 ) $ (68 ) $ (21 ) $ (23 ) |
Schedule of amounts recognized in other comprehensive income (loss) | Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan International Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Net actuarial loss (gain) $ (15 ) $ — $ 15 $ 13 $ 41 $ 16 $ — $ 3 $ 1 Prior service credit (3 ) (3 ) (4 ) — — — — — — Amortization of net loss (3 ) (3 ) (3 ) (4 ) (2 ) (2 ) — (1 ) (9 ) Net amount recognized $ (21 ) $ (6 ) $ 8 $ 9 $ 39 $ 14 $ — $ 2 $ (8 ) |
Schedule of amounts in accumulated other comprehensive income (loss) to be recognized over next fiscal year | The estimated unrecognized net losses and prior service cost that will be amortized into net periodic pension cost over the fiscal year following the indicated year were as follows: Domestic Plan U.K. Plan International Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Unrecognized net losses $ 3 $ 2 $ 2 $ 4 $ 4 $ 2 $ — $ — $ — Unrecognized prior service cost 4 4 4 — — — — — — Amount unrecognized $ 7 $ 6 $ 6 $ 4 $ 4 $ 2 $ — $ — $ — |
Schedule of net periodic pension cost (credit) | The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 (in millions) Service cost $ 8 $ 8 $ 7 $ 2 $ 2 $ 2 $ 2 $ 3 $ 3 Interest cost 12 13 16 10 12 15 2 2 2 Expected return on plan assets (19 ) (19 ) (19 ) (19 ) (22 ) (25 ) (3 ) (3 ) (4 ) Amortization of prior service cost 3 4 4 — — — — — — Amortization of net loss 3 3 3 4 2 2 — — — Settlement losses — — — — — — — — 10 Net periodic pension cost (credit) $ 7 $ 9 $ 11 $ (3 ) $ (6 ) $ (6 ) $ 1 $ 2 $ 11 |
Schedule of assumptions used | The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2017 2016 2017 2016 2017 2016 Discount rate 3.6 % 4.0 % 2.6 % 2.8 % 2.4 % 3.1 % Salary inflation N/A N/A 1.8 1.9 2.2 2.1 Pension inflation N/A N/A 3.0 3.1 1.8 1.7 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 4.0 % 4.2 % 3.9 % 2.8 % 3.9 % 3.8 % 3.0 % 3.5 % 3.3 % Expected return on plan assets 7.0 7.3 7.5 5.5 6.5 6.5 4.3 5.4 5.1 Salary inflation N/A N/A N/A 1.9 1.7 1.6 2.1 2.1 2.2 Pension inflation N/A N/A N/A 3.1 2.8 2.8 1.7 1.6 1.8 |
Schedule of fair value of pension assets | The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category. The fair values of Level 2 assets were based on available market pricing information of similar financial instruments. December 31, 2017 Domestic Plan U.K. Plan International Plans Level 1 Level 2 Level 1 Level 2 Level 1 Level 2 (in millions) Cash and cash equivalents $ — $ — $ — $ — $ 11 $ — Equity funds — — — — — 6 Debt securities — — — — — — Bond funds — — — — — 5 Common collective trusts — 306 — 386 — 43 Other — — — — — — Total $ — $ 306 $ — $ 386 $ 11 $ 54 December 31, 2016 Domestic Plan U.K. Plan International Plans Level 1 Level 2 Level 1 Level 2 Level 1 Level 2 (in millions) Cash and cash equivalents $ — $ — $ — $ — $ 10 $ — Equity funds 25 — — — 3 6 Debt securities 1 62 — — — — Bond funds — — — — — 6 Common collective trusts — 139 — 336 — 33 Other — 40 — — — — Total $ 26 $ 241 $ — $ 336 $ 13 $ 45 |
Schedule of expected benefit payments | As of December 31, 2017 , the benefits expected to be paid in the next five years and in the aggregate for the five years thereafter were as follows: Domestic Plan U.K. Plan International Plans Year (in millions) 2018 $ 33 $ 18 $ 10 2019 26 18 5 2020 26 19 5 2021 26 19 5 2022 26 19 5 2023-2027 121 102 26 $ 258 $ 195 $ 56 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Additional Information on Restricted Stock Units | The following table provides information about our RSU grants for the last three fiscal years: Year Ended December 31, 2017 2016 2015 Number of shares granted 1,467,396 1,169,238 679,546 Weighted average grant date fair value per share $ 58.80 $ 59.73 $ 82.38 Fair value of shares vested (in millions) $ 78 $ 40 $ 90 |
Schedule of Restricted Stock Units Activity | The following table summarizes the activity of our RSUs during the year ended December 31, 2017 : Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding as of December 31, 2016 1,624,541 $ 65.24 Conversion from performance shares upon completion of the spin-offs (1) 671,604 72.42 Effect of the spin-offs (2) 439,113 57.60 Granted 1,467,396 58.80 Vested (2) (1,199,987 ) 51.65 Forfeited (2) (161,736 ) 50.33 Outstanding as of December 31, 2017 2,840,931 51.44 ____________ (1) Represents all performance shares outstanding as of December 31, 2016. (2) The weighted average grant date fair value was adjusted to reflect the Conversion Factor. |
Schedule of Additional Information on Stock Options | The following table provides information about our option grants for the last three fiscal years: Year Ended December 31, 2017 2016 2015 Number of options granted 748,965 503,150 309,528 Weighted average exercise price per share $ 58.40 $ 58.83 $ 82.38 Weighted average grant date fair value per share $ 13.96 $ 16.41 $ 25.17 |
Schedule of Stock Options Valuation Assumptions | The grant date fair value of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2017 2016 2015 Expected volatility (1) 24.00 % 32.00 % 28.00 % Dividend yield (2) 0.92% - 1.03% 1.43 % — % Risk-free rate (3) 1.93% - 2.03% 1.36 % 1.67 % Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price and, due to limited trading history, historical volatility of our peer group over a time period consistent with our expected term assumption. (2) Estimated based on the expected annualized dividend payment at the grant date. For the 2015 options granted, we had no plans to pay dividends during the expected term at the time of grant. (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 Stock Options Activity | The following table summarizes the activity of our options during the year ended December 31, 2017 : Number of Shares Weighted Average Exercise Price per Share Outstanding as of December 31, 2016 1,076,031 $ 66.83 Effect of the spin-offs (1) 251,145 57.60 Granted 748,965 58.40 Exercised (1) (61,888 ) 46.75 Forfeited or expired (1) (20,799 ) 53.47 Outstanding as of December 31, 2017 (2) 1,993,454 51.24 Exercisable as of December 31, 2017 (1)(2) 741,798 48.32 ____________ (1) The weighted average exercise price was adjusted to reflect the Conversion Factor. (2) The aggregate intrinsic value of options outstanding and options exercisable was $57 million and $23 million , respectively, as of December 31, 2017. |
Schedule of Additional Information on Performance Shares | The following table provides information about our performance share grants for the last three fiscal years: Year Ended December 31, 2017 2016 2015 EBITDA CAGR: Number of shares granted 179,006 300,784 204,523 Weighted average grant date fair value per share $ 58.40 $ 58.83 $ 82.38 Fair value of shares vested (in millions) $ — $ 12 $ — FCF CAGR: Number of shares granted 178,975 N/A N/A Weighted average grant date fair value per share $ 58.40 N/A N/A Fair value of shares vested (in millions) $ — N/A N/A Relative Shareholder Return: Number of shares granted N/A 300,784 204,523 Weighted average grant date fair value per share N/A $ 62.43 $ 98.94 Fair value of shares vested (in millions) N/A $ 16 $ — |
Schedule of Performance Shares Activity | The following table summarizes the activity of our performance shares during the year ended December 31, 2017 : EBITDA CAGR FCF CAGR Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share Outstanding as of December 31, 2016 335,802 $ 68.09 — N/A Conversion to RSUs upon completion of the spin-offs (335,802 ) 68.09 — N/A Granted 179,006 58.40 178,975 $ 58.40 Forfeited or canceled (2,915 ) 58.02 (2,914 ) 58.02 Outstanding as of December 31, 2017 176,091 58.41 176,061 58.41 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings (loss) per share ("EPS"). All share and per share amounts for the years ended December 31, 2016 and 2015 have been adjusted to reflect the Reverse Stock Split. See Note 1 : " Organization " for additional information. Year Ended December 31, 2017 2016 2015 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ 1,259 $ (18 ) $ 876 Denominator: Weighted average shares outstanding 324 329 329 Basic EPS $ 3.88 $ (0.05 ) $ 2.67 Diluted EPS: Numerator: Net income (loss) from continuing operations attributable to Hilton stockholders $ 1,259 $ (18 ) $ 876 Denominator: Weighted average shares outstanding 327 329 330 Diluted EPS $ 3.85 $ (0.05 ) $ 2.66 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2014 $ (446 ) $ (179 ) $ (3 ) $ (628 ) Other comprehensive loss before reclassifications (150 ) (21 ) (7 ) (178 ) Amounts reclassified from accumulated other comprehensive loss 16 6 — 22 Net current period other comprehensive loss (134 ) (15 ) (7 ) (156 ) Balance as of December 31, 2015 (580 ) (194 ) (10 ) (784 ) Other comprehensive loss before reclassifications (157 ) (63 ) (5 ) (225 ) Amounts reclassified from accumulated other comprehensive loss (1 ) 6 3 8 Net current period other comprehensive loss (158 ) (57 ) (2 ) (217 ) Balance as of December 31, 2016 (738 ) (251 ) (12 ) (1,001 ) Other comprehensive income before reclassifications 160 15 7 182 Amounts reclassified from accumulated other comprehensive loss 1 7 6 14 Net current period other comprehensive income 161 22 13 196 Spin-offs of Park and HGV 63 — — 63 Balance as of December 31, 2017 $ (514 ) $ (229 ) $ 1 $ (742 ) ____________ (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 consolidated statement of operations): Year Ended December 31, 2017 2016 2015 (in millions) Currency translation adjustment: Sale or liquidation of investment in foreign entity (1) $ (2 ) $ — $ (25 ) Gains on net investment hedges (2) 1 1 — Tax benefit (3)(4) — — 9 Total currency translation adjustment reclassifications for the period, net of taxes (1 ) 1 (16 ) Pension liability adjustment: Amortization of prior service cost (5) (3 ) (4 ) (4 ) Amortization of net loss (5) (7 ) (5 ) (5 ) Tax benefit (3) 3 3 3 Total pension liability adjustment reclassifications for the period, net of taxes (7 ) (6 ) (6 ) Cash flow hedge adjustment: Dedesignation of interest rate swaps (6) (10 ) (4 ) — Tax benefit (3) 4 1 — Total cash flow hedge adjustment reclassifications for the period, net of taxes (6 ) (3 ) — Total reclassifications for the period, net of taxes $ (14 ) $ (8 ) $ (22 ) ____________ (1) Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions and gain on sales of assets, net in our consolidated statements of operations for the years ended December 31, 2017 and 2015 , respectively. (2) Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. (3) Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (4) The tax benefit was less than $1 million for the years ended December 31, 2017 and 2016 . (5) Reclassified out of accumulated other comprehensive loss to general and administrative expenses in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost. See Note 15 : " Employee Benefit Plans " for additional information. (6) Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statements of operations. Refer to Note 11 : " Derivative Instruments and Hedging Activities " for additional information. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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: Year Ended December 31, 2017 2016 2015 (in millions) Management and franchise (1) $ 1,983 $ 1,580 $ 1,496 Ownership 1,450 1,452 1,596 Segment revenues 3,433 3,032 3,092 Other revenues 105 82 71 Other revenues from managed and franchised properties 5,645 4,310 4,011 Intersegment fees elimination (1) (43 ) (42 ) (41 ) Total revenues $ 9,140 $ 7,382 $ 7,133 ____________ (1) Includes management, royalty and intellectual property fees charged to our ownership segment, which were eliminated in our consolidated statements of operations. |
Reconciliation of Segment Operating Income to Income from Continuing Operations before Income Taxes | The following table presents operating income for our reportable segments, reconciled to consolidated income from continuing operations before income taxes: Year Ended December 31, 2017 2016 2015 (in millions) Management and franchise (1) $ 1,983 $ 1,580 $ 1,496 Ownership (1) 121 115 141 Segment operating income 2,104 1,695 1,637 Other revenues, less other expenses 49 16 22 Depreciation and amortization (347 ) (364 ) (385 ) General and administrative (434 ) (403 ) (537 ) Gain on sales of assets, net — 8 163 Operating income 1,372 952 900 Interest expense (408 ) (394 ) (377 ) Gain (loss) on foreign currency transactions 3 (16 ) (41 ) Loss on debt extinguishment (60 ) — — Other non-operating income, net 23 14 51 Income from continuing operations before income taxes $ 930 $ 556 $ 533 ____________ (1) Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated financial statements. |
Schedule of Assets by Segment | The following table presents total assets for our reportable segments, reconciled to consolidated assets of continuing operations: December 31, 2017 2016 (in millions) Management and franchise $ 11,454 $ 10,825 Ownership 964 1,032 Corporate and other 1,890 2,529 $ 14,308 $ 14,386 |
Schedule of Capital Expenditures by Segment | The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated capital expenditures of continuing operations: Year Ended December 31, 2017 2016 2015 (in millions) Ownership $ 32 $ 45 $ 52 Corporate and other 26 17 15 $ 58 $ 62 $ 67 |
Revenue from External Customers by Geographic Areas | Total revenues by country were as follows: Year Ended December 31, 2017 2016 2015 (in millions) U.S. $ 7,033 $ 5,315 $ 4,935 United Kingdom 547 955 1,017 All other 1,560 1,112 1,181 $ 9,140 $ 7,382 $ 7,133 |
Property and Equipment, Net by Country | Property and equipment, net by country was as follows: December 31, 2017 2016 (in millions) U.S. $ 105 $ 92 Japan 94 87 United Kingdom 82 79 Germany 36 35 All other 36 48 $ 353 $ 341 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions | Equity Investments We hold equity investments in entities that own or lease properties that we manage. The following tables summarize amounts included in our consolidated financial statements related to these management contracts: December 31, 2017 2016 (in millions) Balance Sheets Assets: Accounts receivable, net $ 2 $ 4 Management and franchise contracts, net 20 20 Liabilities: Accounts payable, accrued expenses and other 1 1 Year Ended December 31, 2017 2016 2015 (in millions) Statements of Operations Revenues: Franchise fees $ 1 $ 1 $ 1 Base and other management fees 6 8 6 Incentive management fees 3 4 2 Other revenues from managed and franchised properties 22 21 31 Expenses: Other expenses from managed and franchised properties 22 21 31 Statements of Cash Flows Investing Activities: Contract acquisition costs — — 4 Blackstone Blackstone directly and indirectly owns or controls hotels that we manage or franchise and for which we receive fees in connection with the related management and franchise contracts. Our maximum exposure to loss related to these hotels is limited to the amounts discussed below; therefore, our involvement with these hotels does not expose us to additional variability or risk of loss. Due to continued sales of the Company's common stock, Blackstone was no longer considered a related party of the Company as of October 1, 2017. As such, only financial information related to Blackstone as of December 31, 2016 and for the nine months ended September 30, 2017 and the years ended December 31, 2016 and 2015 is included in the following tables, which summarize amounts included in our consolidated financial statements related to their management and franchise contracts: December 31, 2016 (in millions) Balance Sheets Assets: Accounts receivable, net $ 18 Management and franchise contracts, net 13 Liabilities: Accounts payable, accrued expenses and other 8 Year Ended December 31, 2017 (1) 2016 2015 (in millions) Statements of Operations Revenues: Franchise fees $ 19 $ 29 $ 34 Base and other management fees 5 10 11 Incentive management fees 1 3 3 Other revenues from managed and franchised properties 113 144 160 Expenses: Other expenses from managed and franchised properties 113 144 160 Statements of Cash Flows Investing Activities: Contract acquisition costs 11 — — ____________ (1) Includes amounts only for the nine months ended September 30, 2017, the period in 2017 during which Blackstone was a related party of the Company. |
Condensed Consolidating Guara53
Condensed Consolidating Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Consolidating Guarantor Financial Information [Abstract] | |
Condensed Balance Sheet | December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 2 $ 18 $ 550 $ — $ 570 Restricted cash and cash equivalents — — 61 10 29 — 100 Accounts receivable, net — — 21 702 275 — 998 Intercompany receivables — — — — 40 (40 ) — Prepaid expenses — — 6 24 84 (3 ) 111 Income taxes receivable — — — 60 — (24 ) 36 Other — — 1 15 155 — 171 Total current assets — — 91 829 1,133 (67 ) 1,986 Intangibles and Other Assets: Investments in subsidiaries 2,081 7,451 8,713 2,081 — (20,326 ) — Goodwill — — — 3,824 1,366 — 5,190 Brands — — — 4,405 485 — 4,890 Management and franchise contracts, net — — 2 634 273 — 909 Other intangible assets, net — — 1 283 149 — 433 Property and equipment, net — — 20 67 266 — 353 Deferred income tax assets 6 — 105 — 124 (122 ) 113 Other — 20 31 183 200 — 434 Total intangibles and other assets 2,087 7,471 8,872 11,477 2,863 (20,448 ) 12,322 TOTAL ASSETS $ 2,087 $ 7,471 $ 8,963 $ 12,306 $ 3,996 $ (20,515 ) $ 14,308 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ 15 $ 20 $ 256 $ 1,229 $ 633 $ (3 ) $ 2,150 Intercompany payables — — 40 — — (40 ) — Current maturities of long-term debt — 32 — — 14 — 46 Income taxes payable — — — — 36 (24 ) 12 Total current liabilities 15 52 296 1,229 683 (67 ) 2,208 Long-term debt — 5,333 983 — 240 — 6,556 Deferred revenues — — — 97 — — 97 Deferred income tax liabilities — 5 — 1,180 — (122 ) 1,063 Liability for guest loyalty program — — — 839 — — 839 Other — — 233 581 656 — 1,470 Total liabilities 15 5,390 1,512 3,926 1,579 (189 ) 12,233 Equity: Total Hilton stockholders' equity 2,072 2,081 7,451 8,380 2,414 (20,326 ) 2,072 Noncontrolling interests — — — — 3 — 3 Total equity 2,072 2,081 7,451 8,380 2,417 (20,326 ) 2,075 TOTAL LIABILITIES AND EQUITY $ 2,087 $ 7,471 $ 8,963 $ 12,306 $ 3,996 $ (20,515 ) $ 14,308 December 31, 2016 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents $ — $ — $ 3 $ 22 $ 1,037 $ — $ 1,062 Restricted cash and cash equivalents — — 87 9 25 — 121 Accounts receivable, net — — 7 484 264 — 755 Intercompany receivables — — — — 42 (42 ) — Prepaid expenses — — 6 21 65 (3 ) 89 Income taxes receivable — — — 30 — (17 ) 13 Other — — 1 5 33 — 39 Current assets of discontinued operations — — — — 1,502 (24 ) 1,478 Total current assets — — 104 571 2,968 (86 ) 3,557 Intangibles and Other Assets: Investments in subsidiaries 5,889 11,300 12,583 5,889 — (35,661 ) — Goodwill — — — 3,824 1,394 — 5,218 Brands — — — 4,404 444 — 4,848 Management and franchise contracts, net — — — 716 247 — 963 Other intangible assets, net — — 1 296 150 — 447 Property and equipment, net — — 12 62 267 — 341 Deferred income tax assets 10 2 167 — 82 (179 ) 82 Other — 12 30 213 153 — 408 Non-current assets of discontinued operations — — — 12 10,345 (10 ) 10,347 Total intangibles and other assets 5,899 11,314 12,793 15,416 13,082 (35,850 ) 22,654 TOTAL ASSETS $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other $ — $ 26 $ 293 $ 1,091 $ 414 $ (3 ) $ 1,821 Intercompany payables — — 42 — — (42 ) — Current maturities of long-term debt — 26 — — 7 — 33 Income taxes payable — — — — 73 (17 ) 56 Current liabilities of discontinued operations — — — 77 721 (24 ) 774 Total current liabilities — 52 335 1,168 1,215 (86 ) 2,684 Long-term debt — 5,361 981 — 241 — 6,583 Deferred revenues — — — 42 — — 42 Deferred income tax liabilities — — — 1,919 38 (179 ) 1,778 Liability for guest loyalty program — — — 889 — — 889 Other — 12 277 490 713 — 1,492 Non-current liabilities of discontinued operations — — 4 — 6,900 (10 ) 6,894 Total liabilities — 5,425 1,597 4,508 9,107 (275 ) 20,362 Equity: Total Hilton stockholders' equity 5,899 5,889 11,300 11,479 6,993 (35,661 ) 5,899 Noncontrolling interests — — — — (50 ) — (50 ) Total equity 5,899 5,889 11,300 11,479 6,943 (35,661 ) 5,849 TOTAL LIABILITIES AND EQUITY $ 5,899 $ 11,314 $ 12,897 $ 15,987 $ 16,050 $ (35,936 ) $ 26,211 |
Condensed Statement of Income and Comprehensive Income | Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 143 $ 1,127 $ 129 $ (17 ) $ 1,382 Base and other management fees — — 1 201 134 — 336 Incentive management fees — — — 76 146 — 222 Owned and leased hotels — — — — 1,450 — 1,450 Other revenues — — 31 70 11 (7 ) 105 — — 175 1,474 1,870 (24 ) 3,495 Other revenues from managed and franchised properties — — 154 4,893 598 — 5,645 Total revenues — — 329 6,367 2,468 (24 ) 9,140 Expenses Owned and leased hotels — — — — 1,286 — 1,286 Depreciation and amortization — — 5 247 95 — 347 General and administrative — — 327 — 113 (6 ) 434 Other expenses — — 17 29 27 (17 ) 56 — — 349 276 1,521 (23 ) 2,123 Other expenses from managed and franchised properties — — 154 4,893 598 — 5,645 Total expenses — — 503 5,169 2,119 (23 ) 7,768 Gain (loss) on sales of assets, net — — — (1 ) 1 — — Operating income (loss) — — (174 ) 1,197 350 (1 ) 1,372 Interest expense — (244 ) (106 ) — (59 ) 1 (408 ) Gain (loss) on foreign currency transactions — — 10 124 (131 ) — 3 Loss on debt extinguishment — (60 ) — — — — (60 ) Other non-operating income (loss), net — (3 ) 4 7 15 — 23 Income (loss) before income taxes and equity in earnings from subsidiaries — (307 ) (266 ) 1,328 175 — 930 Income tax benefit (expense) (3 ) 122 48 69 98 — 334 Income (loss) before equity in earnings from subsidiaries (3 ) (185 ) (218 ) 1,397 273 — 1,264 Equity in earnings from subsidiaries 1,262 1,447 1,665 1,262 — (5,636 ) — Net income 1,259 1,262 1,447 2,659 273 (5,636 ) 1,264 Net income attributable to noncontrolling interests — — — — (5 ) — (5 ) Net income attributable to Hilton stockholders $ 1,259 $ 1,262 $ 1,447 $ 2,659 $ 268 $ (5,636 ) $ 1,259 Comprehensive income $ 1,455 $ 1,276 $ 1,463 $ 2,662 $ 436 $ (5,832 ) $ 1,460 Comprehensive income attributable to noncontrolling interests — — — — (5 ) — (5 ) Comprehensive income attributable to Hilton stockholders $ 1,455 $ 1,276 $ 1,463 $ 2,662 $ 431 $ (5,832 ) $ 1,455 Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 21 $ 1,031 $ 112 $ (10 ) $ 1,154 Base and other management fees — — — 126 116 — 242 Incentive management fees — — — 16 126 — 142 Owned and leased hotels — — — — 1,452 — 1,452 Other revenues — — 10 61 11 — 82 — — 31 1,234 1,817 (10 ) 3,072 Other revenues from managed and franchised properties — — 32 3,777 501 — 4,310 Total revenues — — 63 5,011 2,318 (10 ) 7,382 Expenses Owned and leased hotels — — — — 1,295 — 1,295 Depreciation and amortization — — 1 272 91 — 364 General and administrative — — 90 204 109 — 403 Other expenses — — 1 31 44 (10 ) 66 — — 92 507 1,539 (10 ) 2,128 Other expenses from managed and franchised properties — — 32 3,777 501 — 4,310 Total expenses — — 124 4,284 2,040 (10 ) 6,438 Gain on sales of assets, net — — — — 8 — 8 Operating income (loss) — — (61 ) 727 286 — 952 Interest expense — (261 ) (30 ) (51 ) (52 ) — (394 ) Gain (loss) on foreign currency transactions — — 11 (150 ) 123 — (16 ) Other non-operating income, net — 1 1 8 4 — 14 Income (loss) from continuing operations before income taxes and equity in losses from subsidiaries — (260 ) (79 ) 534 361 — 556 Income tax benefit (expense) 193 100 32 (319 ) (570 ) — (564 ) Income (loss) from continuing operations before equity in losses from subsidiaries 193 (160 ) (47 ) 215 (209 ) — (8 ) Equity in losses from subsidiaries (211 ) (51 ) (4 ) (211 ) — 477 — Income (loss) from continuing operations, net of taxes (18 ) (211 ) (51 ) 4 (209 ) 477 (8 ) Income from discontinued operations, net of taxes 366 366 366 428 374 (1,528 ) 372 Net income 348 155 315 432 165 (1,051 ) 364 Net income attributable to noncontrolling interests — — — — (16 ) — (16 ) Net income attributable to Hilton stockholders $ 348 $ 155 $ 315 $ 432 $ 149 $ (1,051 ) $ 348 Comprehensive income $ 131 $ 153 $ 320 $ 361 $ 15 $ (834 ) $ 146 Comprehensive income attributable to noncontrolling interests — — — — (15 ) — (15 ) Comprehensive income attributable to Hilton stockholders $ 131 $ 153 $ 320 $ 361 $ — $ (834 ) $ 131 Year Ended December 31, 2015 Parent HWF Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise fees $ — $ — $ 998 $ 101 $ (12 ) $ 1,087 Base and other management fees — — 125 105 — 230 Incentive management fees — — 18 120 — 138 Owned and leased hotels — — — 1,596 — 1,596 Other revenues — — 61 10 — 71 — — 1,202 1,932 (12 ) 3,122 Other revenues from managed and franchised properties — — 3,510 501 — 4,011 Total revenues — — 4,712 2,433 (12 ) 7,133 Expenses Owned and leased hotels — — — 1,414 — 1,414 Depreciation and amortization — — 288 97 — 385 General and administrative — — 424 113 — 537 Other expenses — — 37 24 (12 ) 49 — — 749 1,648 (12 ) 2,385 Other expenses from managed and franchised properties — — 3,510 501 — 4,011 Total expenses — — 4,259 2,149 (12 ) 6,396 Gain on sales of assets, net — — — 163 — 163 Operating income — — 453 447 — 900 Interest expense — (281 ) (50 ) (46 ) — (377 ) Gain (loss) on foreign currency transactions — — 77 (118 ) — (41 ) Other non-operating income, net — — 14 37 — 51 Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries — (281 ) 494 320 — 533 Income tax benefit (expense) (7 ) 108 189 58 — 348 Income (loss) from continuing operations before equity in earnings from subsidiaries (7 ) (173 ) 683 378 — 881 Equity in earnings from subsidiaries 883 1,056 373 — (2,312 ) — Income from continuing operations, net of taxes 876 883 1,056 378 (2,312 ) 881 Income from discontinued operations, net of taxes 528 528 528 460 (1,509 ) 535 Net income 1,404 1,411 1,584 838 (3,821 ) 1,416 Net income attributable to noncontrolling interests — — — (12 ) — (12 ) Net income attributable to Hilton stockholders $ 1,404 $ 1,411 $ 1,584 $ 826 $ (3,821 ) $ 1,404 Comprehensive income $ 1,248 $ 1,404 $ 1,546 $ 727 $ (3,665 ) $ 1,260 Comprehensive income attributable to noncontrolling interests — — — (12 ) — (12 ) Comprehensive income attributable to Hilton stockholders $ 1,248 $ 1,404 $ 1,546 $ 715 $ (3,665 ) $ 1,248 |
Condensed Cash Flow Statement | Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (113 ) $ (103 ) $ 988 $ 322 $ (170 ) $ 924 Investing Activities: Capital expenditures for property and equipment — — (12 ) (12 ) (34 ) — (58 ) Contract acquisition costs — — — (38 ) (37 ) — (75 ) Capitalized software costs — — — (75 ) — — (75 ) Other — (13 ) — (1 ) 3 (3 ) (14 ) Net cash used in investing activities — (13 ) (12 ) (126 ) (68 ) (3 ) (222 ) Financing Activities: Borrowings — 1,822 — — 2 — 1,824 Repayment of debt — (1,852 ) — — (8 ) — (1,860 ) Debt issuance costs and redemption premium — (69 ) — — — — (69 ) Repayment of intercompany borrowings — — (3 ) — — 3 — Intercompany transfers 1,086 225 122 (865 ) (568 ) — — Dividends paid (195 ) — — — — — (195 ) Intercompany dividends — — — — (170 ) 170 — Cash transferred in spin-offs of Park and HGV — — — — (501 ) — (501 ) Repurchases of common stock (891 ) — — — — — (891 ) Distributions to noncontrolling interests — — — — (1 ) — (1 ) Tax withholdings on share-based compensation — — (31 ) — — — (31 ) Net cash provided by (used in) financing activities — 126 88 (865 ) (1,246 ) 173 (1,724 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — 8 — 8 Net decrease in cash, restricted cash and cash equivalents — — (27 ) (3 ) (984 ) — (1,014 ) Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 90 31 1,062 — 1,183 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — — 501 — 501 Cash, restricted cash and cash equivalents, beginning of period — — 90 31 1,563 — 1,684 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 63 $ 28 $ 579 $ — $ 670 Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ — $ (37 ) $ — $ 912 $ 1,095 $ (605 ) $ 1,365 Investing Activities: Capital expenditures for property and equipment — — — (9 ) (308 ) — (317 ) Issuance of intercompany receivables — — — (192 ) (42 ) 234 — Payments received on intercompany receivables — — — 192 — (192 ) — Proceeds from asset dispositions — — — — 11 — 11 Contract acquisition costs — — — (46 ) (9 ) — (55 ) Capitalized software costs — — — (73 ) (8 ) — (81 ) Other — (6 ) — (35 ) 5 — (36 ) Net cash used in investing activities — (6 ) — (163 ) (351 ) 42 (478 ) Financing Activities: Borrowings — — 1,000 — 3,715 — 4,715 Repayment of debt — (266 ) — — (4,093 ) — (4,359 ) Debt issuance costs — (17 ) (20 ) — (39 ) — (76 ) Intercompany borrowings — — — 42 192 (234 ) — Repayment of intercompany borrowings — — — — (192 ) 192 — Intercompany transfers 277 326 (890 ) (854 ) 1,141 — — Dividends paid (277 ) — — — — — (277 ) Intercompany dividends — — — — (605 ) 605 — Distributions to noncontrolling interests — — — — (32 ) — (32 ) Tax withholdings on share-based compensation — — — (15 ) — — (15 ) Net cash provided by (used in) financing activities — 43 90 (827 ) 87 563 (44 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — — (15 ) — (15 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — 90 (78 ) 816 — 828 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — — 109 524 — 633 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — — — 223 — 223 Cash, restricted cash and cash equivalents, beginning of period — — — 109 747 — 856 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 90 31 1,062 — 1,183 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — — 501 — 501 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 90 $ 31 $ 1,563 $ — $ 1,684 Year Ended December 31, 2015 Parent HWF Issuers Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by operating activities $ — $ 184 $ 975 $ 723 $ (436 ) $ 1,446 Investing Activities: Capital expenditures for property and equipment — — (11 ) (299 ) — (310 ) Acquisitions, net of cash acquired — — — (1,402 ) — (1,402 ) Proceeds from asset dispositions — — — 2,205 — 2,205 Contract acquisition costs — — (23 ) (14 ) — (37 ) Capitalized software costs — — (57 ) (5 ) — (62 ) Other — — 13 7 — 20 Net cash provided by (used in) investing activities — — (78 ) 492 — 414 Financing Activities: Borrowings — — — 48 — 48 Repayment of debt — (775 ) — (849 ) — (1,624 ) Intercompany transfers 138 591 (693 ) (36 ) — — Dividends paid (138 ) — — — — (138 ) Intercompany dividends — — (184 ) (252 ) 436 — Distributions to noncontrolling interests — — — (8 ) — (8 ) Tax withholdings on share-based compensation — — (31 ) — — (31 ) Net cash used in financing activities — (184 ) (908 ) (1,097 ) 436 (1,753 ) Effect of exchange rate changes on cash, restricted cash and cash equivalents — — — (19 ) — (19 ) Net increase (decrease) in cash, restricted cash and cash equivalents — — (11 ) 99 — 88 Cash, restricted cash and cash equivalents from continuing operations, beginning of period — — 119 509 — 628 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period — — 1 139 — 140 Cash, restricted cash and cash equivalents, beginning of period — — 120 648 — 768 Cash, restricted cash and cash equivalents from continuing operations, end of period — — 109 524 — 633 Cash, restricted cash and cash equivalents from discontinued operations, end of period — — — 223 — 223 Cash, restricted cash and cash equivalents, end of period $ — $ — $ 109 $ 747 $ — $ 856 |
Selected Quarterly Financial 54
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure (unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to fairly present our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,161 $ 2,346 $ 2,354 $ 2,279 $ 9,140 Operating income 277 365 382 348 1,372 Net income 75 167 181 841 1,264 Net income attributable to Hilton stockholders 74 166 179 840 1,259 Basic earnings per share (1) $ 0.22 $ 0.51 $ 0.56 $ 2.63 $ 3.88 Diluted earnings per share (1) $ 0.22 $ 0.51 $ 0.55 $ 2.61 $ 3.85 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 1,726 $ 1,950 $ 1,867 $ 1,839 $ 7,382 Operating income 170 273 265 244 952 Income (loss) from continuing operations, net of taxes 191 100 89 (388 ) (8 ) Income from discontinued operations, net of taxes 119 144 103 6 372 Net income (loss) 310 244 192 (382 ) 364 Net income (loss) attributable to Hilton stockholders 309 239 187 (387 ) 348 Basic earnings (loss) per share (1) : Net income (loss) from continuing operations $ 0.58 $ 0.29 $ 0.27 $ (1.20 ) $ (0.05 ) Net income from discontinued operations 0.36 0.44 0.30 0.02 1.11 Net income (loss) $ 0.94 $ 0.73 $ 0.57 $ (1.18 ) $ 1.06 Diluted earnings (loss) per share (1) : Net income (loss) from continuing operations $ 0.58 $ 0.29 $ 0.27 $ (1.20 ) $ (0.05 ) Net income from discontinued operations 0.36 0.43 0.30 0.02 1.11 Net income (loss) $ 0.94 $ 0.72 $ 0.57 $ (1.18 ) $ 1.06 ____________ (1) The sum of the earnings (loss) per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. |
Organization (Details)
Organization (Details) $ / shares in Units, $ in Millions | Jan. 03, 2017 | Dec. 31, 2017USD ($)RoomCountryHotel$ / sharesRateshares | Mar. 15, 2017shares | Dec. 31, 2016$ / sharesshares | |
Organization and basis of presentation [Line Items] | |||||
Number of hotel and resort properties | Hotel | 5,236 | ||||
Number of countries and territories | Country | 105 | ||||
Number of hotel and resort rooms | Room | 848,014 | ||||
Reverse stock split | 1-for-3 | ||||
Common stock, authorized shares | [1] | 10,000,000,000 | 10,000,000,000 | ||
Common stock, par value (per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Preferred stock, authorized shares | 3,000,000,000 | 3,000,000,000 | |||
Retrospective adjustment | $ | $ 7 | ||||
HNA Tourism Group Co., Ltd. [Member] | |||||
Organization and basis of presentation [Line Items] | |||||
Hilton common stock acquired | 82.5 | ||||
HNA Tourism Group Co., Ltd. [Member] | |||||
Organization and basis of presentation [Line Items] | |||||
Common stock ownership percentage | Rate | 26.00% | ||||
The Blackstone Group And Affiliates [member] | |||||
Organization and basis of presentation [Line Items] | |||||
Common stock ownership percentage | Rate | 5.40% | ||||
Pre reverse stock split [Member] | |||||
Organization and basis of presentation [Line Items] | |||||
Common stock, authorized shares | 30,000,000,000 | ||||
Post reverse stock split [Member] | |||||
Organization and basis of presentation [Line Items] | |||||
Common stock, authorized shares | 10,000,000,000 | ||||
[1] | Balance as of December 31, 2016 was adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |
Basis of Presentation and Sum56
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Jan. 01, 2017 | |
Accounting Standards Update 2016-09 [Member] | ||
Accounting Policies [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption | $ 1 | |
Reimbursable fees [Member] | Accounting Standards Update 2014-09 [Member] | Other revenue from managed and franchised properties [Member] | ||
Accounting Policies [Line Items] | ||
Estmated effect of adoption of ASU | $ 73 | |
Application, initiation and other fees [Member] | Accounting Standards Update 2014-09 [Member] | Franchise fee revenue [Member] | ||
Accounting Policies [Line Items] | ||
Estmated effect of adoption of ASU | 56 | |
Contract acquisition costs [Member] | Accounting Standards Update 2014-09 [Member] | Franchise fee revenue [Member] | ||
Accounting Policies [Line Items] | ||
Estmated effect of adoption of ASU | 5 | |
Contract acquisition costs [Member] | Accounting Standards Update 2014-09 [Member] | Base and other management fees [Member] | ||
Accounting Policies [Line Items] | ||
Estmated effect of adoption of ASU | 9 | |
Contract acquisition costs [Member] | Accounting Standards Update 2014-09 [Member] | Depreciation and amortization [Member] | ||
Accounting Policies [Line Items] | ||
Estmated effect of adoption of ASU | 14 | |
Hilton Honors [member] | Accounting Standards Update 2014-09 [Member] | Total revenues [Member] | ||
Accounting Policies [Line Items] | ||
Estmated effect of adoption of ASU | 1,009 | |
Hilton Honors [member] | Accounting Standards Update 2014-09 [Member] | Total expenses [Member] | ||
Accounting Policies [Line Items] | ||
Estmated effect of adoption of ASU | 818 | |
Hilton Honors [member] | Accounting Standards Update 2014-09 [Member] | Owned and leased hotel revenues and expenses [Member] | ||
Accounting Policies [Line Items] | ||
Estmated effect of adoption of ASU | $ 18 | |
Post-enactment [Member] | ||
Accounting Policies [Line Items] | ||
Change in enacted tax rate | 21.00% | |
Stock options [member] | ||
Accounting Policies [Line Items] | ||
Vesting period | 3 years | |
Expiration period, options | 10 years | |
Performance shares [Member] | ||
Accounting Policies [Line Items] | ||
Vesting period | 3 years | |
Vesting rights | zero to a 200 percent | |
EBITDA CAGR [member] | ||
Accounting Policies [Line Items] | ||
Vesting rights, percentage | 50.00% | |
Free cash flow CAGR [Member] | ||
Accounting Policies [Line Items] | ||
Vesting rights, percentage | 50.00% | |
Minimum [member] | Restricted stock units (RSUs) [member] | ||
Accounting Policies [Line Items] | ||
Vesting period | 2 years | |
Minimum [member] | Building and Building Improvements [member] | ||
Accounting Policies [Line Items] | ||
Useful life | 8 years | |
Minimum [member] | Furniture and Equipment [member] | ||
Accounting Policies [Line Items] | ||
Useful life | 3 years | |
Minimum [member] | Computer Equipment [Member] | ||
Accounting Policies [Line Items] | ||
Useful life | 3 years | |
Maximum [Member] | Restricted stock units (RSUs) [member] | ||
Accounting Policies [Line Items] | ||
Vesting period | 3 years | |
Maximum [Member] | Building and Building Improvements [member] | ||
Accounting Policies [Line Items] | ||
Useful life | 40 years | |
Maximum [Member] | Furniture and Equipment [member] | ||
Accounting Policies [Line Items] | ||
Useful life | 8 years | |
Maximum [Member] | Computer Equipment [Member] | ||
Accounting Policies [Line Items] | ||
Useful life | 5 years | |
Management contracts [Member] | Minimum [member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 13 years | |
Management contracts [Member] | Maximum [Member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 16 years | |
Management contract acquisition costs [Member] | Minimum [member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 20 years | |
Management contract acquisition costs [Member] | Maximum [Member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 30 years | |
Franchise contracts [Member] | Minimum [member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 12 years | |
Franchise contracts [Member] | Maximum [Member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 13 years | |
Franchise contract acquisition costs [Member] | Minimum [member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 10 years | |
Franchise contract acquisition costs [Member] | Maximum [Member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 20 years | |
Leases [member] | Minimum [member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 12 years | |
Leases [member] | Maximum [Member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 35 years | |
Hilton Honors intangible [Member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 16 years | |
Capitalized software development costs [Member] | ||
Accounting Policies [Line Items] | ||
Useful life, intangibles | 3 years |
Discontinued Operations Balance
Discontinued Operations Balance Sheet Disclosures (Details) - Park and HGV spin-offs [Member] - Discontinued operations, disposed of by means other than sale, spinoff [member] $ in Millions | Dec. 31, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash and cash equivalents | $ 341 |
Restricted cash and cash equivalents | 160 |
Accounts receivable, net | 250 |
Prepaid expenses | 48 |
Inventories | 527 |
Current portion of financing receivables, net | 136 |
Other | 16 |
Total current assets of discontinued operations | 1,478 |
Variable interest entity current assets of discontinued operations | 92 |
Goodwill | 604 |
Management and franchise contracts, net | 56 |
Other intangible assets, net | 60 |
Property and equipment, net | 8,589 |
Deferred income tax assets | 35 |
Financing receivables, net | 895 |
Investments in affiliates | 81 |
Other | 27 |
Total intangibles and other assets of discontinued operations | 10,347 |
Variable interest entity non-current assets of discontinued operations | 405 |
Total assets of discontinued operations | 11,825 |
Accounts payable, accrued expenses and other | 632 |
Current maturities of long-term debt | 65 |
Current maturities of timeshare debt | 73 |
Income taxes payable | 4 |
Total current liabilities of discontinued operations | 774 |
Variable interest entity current liabilities of discontinued operations | 81 |
Long-term debt | 3,437 |
Timeshare debt | 621 |
Deferred revenues | 22 |
Deferred income tax liabilities | 2,797 |
Other | 17 |
Total liabilities of discontinued operations | 7,668 |
Variable interest entity liabilities of discontinued operations | $ 506 |
Discontinued Operations Income
Discontinued Operations Income Statement Disclosures (Details) - Park and HGV spin-offs [Member] - Discontinued operations, disposed of by means other than sale, spinoff [member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total revenues from discontinued operations | $ 4,281 | $ 4,139 |
Owned and leased hotels | 1,805 | 1,754 |
Timeshare | 948 | 897 |
Depreciation and amortization | 322 | 307 |
Other expenses | 298 | 153 |
Total expenses from discontinued operations | 3,373 | 3,111 |
Gain on sales of assets, net | 1 | 143 |
Operating income from discontinued operations | 909 | 1,171 |
Non-operating loss, net | (210) | (208) |
Income from discontinued operations before income taxes | 699 | 963 |
Income tax expense | (327) | (428) |
Income from discontinued operations, net of taxes | 372 | 535 |
Income from discontinued operations attributable to noncontrolling interests, net of taxes | (6) | (7) |
Income from discontinued operations attributable to Hilton stockholders, net of taxes | $ 366 | $ 528 |
Discontinued Operations Non-cas
Discontinued Operations Non-cash Items, Capital Expenditures and Asset Acquisitions and Dispositions (Details) - Park and HGV spin-offs [Member] - Discontinued operations, disposed of by means other than sale, spinoff [member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 322 | $ 307 |
Gain on sales of assets, net | (1) | (143) |
Capital expenditures for property and equipment | (255) | (243) |
Acquisitions, net of cash acquired | 0 | (1,402) |
Proceeds from asset dispositions | $ 0 | $ 1,866 |
Discontinued Operations Additio
Discontinued Operations Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Jan. 03, 2017 | |
Park and HGV spin-offs [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Distribution of spin-off companies stock to Hilton stockholders | 100.00% | |
Park and HGV spin-offs [Member] | Transition Services Agreement [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued operation, period of continuing involvement after disposal | 2 years | |
Park spin-off [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Park common stock distributed for every five shares of Hilton common stock | 1 | |
Hilton common stock to receive spin-off company common stock | 5 | |
Base management fee rate | 3.00% | |
Incentive management fee rate | 6.00% | |
Park spin-off [Member] | Management and franchise [member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues from discontinued operations after disposal | $ 157 | |
Park spin-off [Member] | Other revenue from managed and franchised properties [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues from discontinued operations after disposal | $ 1,197 | |
HGV spin-off [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Hilton common stock to receive spin-off company common stock | 10 | |
HGV common stock distributed for every ten shares of Hilton common stock | 1 | |
Discontinued operation, period of continuing involvement after disposal | 100 years | |
Royalty fee rate | 5.00% | |
Revenues from discontinued operations after disposal | $ 87 |
Disposals - Additional Informat
Disposals - Additional Information (Details) AUD in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015AUD | Dec. 31, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from asset dispositions | $ 0 | $ 11 | $ 2,205 | |
Pre-tax gain from sale | 0 | 8 | 163 | |
Reduction of goodwill | 91 | |||
Currency translation adjustment | $ 161 | $ (159) | (134) | |
Hilton Sydney [member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from asset dispositions | AUD 442 | 340 | ||
Pre-tax gain from sale | 163 | |||
Reduction of goodwill | 36 | |||
Currency translation adjustment | $ 25 |
Consolidated Variable Interes62
Consolidated Variable Interest Entities - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)Entity | Dec. 31, 2016USD ($) | |
Variable Interest Entity [Line Items] | |||
Non-cash capital lease obligation reduction (financing activities) | $ | $ 24 | ||
Number of consolidated variable interest entities | 3 | ||
Capital lease obligations | $ | $ 191 | $ 191 | |
VIEs that leased hotels [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | 2 | ||
Management company VIE [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | 1 |
Consolidated Variable Interes63
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Capital lease obligations | $ 191 | $ 191 | |
Cash and cash equivalents | 570 | 1,062 | |
Accounts receivable, net | 998 | 755 | |
Property and equipment, net | 353 | 341 | |
Deferred income tax assets | 113 | 82 | |
Other non-current assets | 434 | 408 | |
Accounts payable, accrued expenses and other | 2,150 | 1,821 | |
Long-term debt | 6,556 | 6,583 | |
Consolidated VIEs [Member] | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 73 | 57 | |
Accounts receivable, net | 16 | 14 | |
Property and equipment, net | 57 | 52 | |
Deferred income tax assets | 56 | 58 | |
Other non-current assets | 57 | 53 | |
Accounts payable, accrued expenses and other | 43 | 33 | |
Long-term debt | [1] | $ 212 | $ 212 |
[1] | Includes capital lease obligations of $191 million as of December 31, 2017 and 2016. |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Goodwill [Line Items] | ||||
Goodwill | $ 5,190 | $ 5,218 | $ 5,280 | |
Spin-off of Park | (91) | |||
Foreign currency translation | 63 | (62) | ||
Ownership [member] | ||||
Goodwill [Line Items] | ||||
Goodwill, gross | 444 | 856 | 865 | |
Accumulated impairment losses | (340) | (672) | (672) | |
Goodwill | [1] | 104 | 184 | 193 |
Gross carrying value of goodwill included in discontinued operations | 2,707 | 2,710 | ||
Accumulated impairment losses included in discontinued operations | 2,103 | 2,103 | ||
Gross goodwill, spin-offs of Park and HGV | (423) | |||
Accumulated impairment losses, spin-offs of Park and HGV | 332 | |||
Spin-off of Park | [1] | (91) | ||
Foreign currency translation | [1] | 11 | (9) | |
Management and franchise [member] | ||||
Goodwill [Line Items] | ||||
Goodwill | [2] | 5,086 | 5,034 | 5,087 |
Accumulated impairment losses included in discontinued operations | 0 | 0 | $ 0 | |
Spin-off of Park | 0 | |||
Foreign currency translation | $ 52 | $ (53) | ||
[1] | The balances as of December 31, 2016 and 2015 exclude goodwill of $2,707 million and $2,710 million, respectively, and accumulated impairment losses of $2,103 million that were attributable to Park and included in non-current assets of discontinued operations in our consolidated balance sheets. Amounts for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: Gross Carrying Value Accumulated Impairment Losses Net Carrying Value (in millions)Balance as of December 31, 2015$865 $(672) $193Foreign currency translation(9) — (9)Balance as of December 31, 2016856 (672) 184Spin-off of Park(423) 332 (91)Foreign currency translation11 — 11Balance as of December 31, 2017$444 $(340) $104 | |||
[2] | There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2017, 2016 and 2015. |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | $ 2,699 | $ 2,564 | |
Other intangible assets, gross | 1,265 | 1,158 | |
Amortizing intangible assets, accumulated amortization | (1,790) | (1,601) | |
Other intangible assets, accumulated amortization | (832) | (711) | |
Management and franchise contracts, net | 909 | 963 | |
Other intangible assets, net | 433 | 447 | |
Management and franchise contracts recorded at Merger | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | [1] | 2,242 | 2,221 |
Amortizing intangible assets, accumulated amortization | [1] | (1,715) | (1,534) |
Management and franchise contracts, net | [1] | 527 | 687 |
Contract acquisition costs and other [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Management and franchise contracts, gross | 457 | 343 | |
Amortizing intangible assets, accumulated amortization | (75) | (67) | |
Management and franchise contracts, net | 382 | 276 | |
Leases [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | [1] | 301 | 276 |
Other intangible assets, accumulated amortization | [1] | (153) | (126) |
Other intangible assets, net | [1] | 148 | 150 |
Capitalized software [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | 585 | 510 | |
Other intangible assets, accumulated amortization | (428) | (362) | |
Other intangible assets, net | 157 | 148 | |
Hilton Honors [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | [1] | 341 | 335 |
Other intangible assets, accumulated amortization | [1] | (217) | (192) |
Other intangible assets, net | [1] | 124 | 143 |
Other [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other intangible assets, gross | 38 | 37 | |
Other intangible assets, accumulated amortization | (34) | (31) | |
Other intangible assets, net | $ 4 | $ 6 | |
[1] | Represents intangible assets that were initially recorded at their fair value as part of the Merger. |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets - Schedule Of Future Amortization (Details) $ in Millions | Dec. 31, 2017USD ($) |
Other Intangible Assets Disclosure [Abstract] | |
2,018 | $ 286 |
2,019 | 274 |
2,020 | 223 |
2,021 | 87 |
2,022 | 75 |
Thereafter | 397 |
Amortizing intangible assets, net | $ 1,342 |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 288 | $ 312 | $ 325 |
Capitalized software [member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 67 | $ 87 | $ 87 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 12 | $ 12 |
Buildings and leasehold improvements | 428 | 384 |
Furniture and equipment | 346 | 357 |
Construction in progress | 17 | 14 |
Property and equipment, gross | 803 | 767 |
Accumulated depreciation | (450) | (426) |
Property and equipment, net | $ 353 | $ 341 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Net capital lease assets included in property and equipment | $ 90 | $ 122 | |
Accumulated depreciation of capital lease assets included in property and equipment | 90 | 74 | |
Depreciation expense | $ 59 | $ 52 | $ 60 |
Accounts Payable, Accrued Exp70
Accounts Payable, Accrued Expenses and Other (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and benefits | $ 502 | $ 438 |
Accounts payable | 282 | 314 |
Liability for guest loyalty program, current | 622 | 543 |
Insurance reserves, current | 264 | 122 |
Other accrued expenses | 480 | 404 |
Accounts payable, accrued expenses and other | $ 2,150 | $ 1,821 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 01, 2017 | Dec. 31, 2016 | Aug. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Unamortized deferred financing costs and discounts | $ (81) | $ (90) | |||
Long-term debt, current maturities | [1] | (46) | (33) | ||
Long-term debt | 6,556 | 6,583 | |||
Long-term debt, gross | 6,683 | 6,706 | |||
Senior notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 0 | $ 1,500 | 1,500 | ||
Senior notes due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,000 | 1,000 | $ 1,000 | ||
Weighted average interest rate | 4.25% | ||||
Senior notes due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 900 | 900 | 0 | ||
Weighted average interest rate | 4.625% | ||||
Senior notes due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 600 | 600 | 0 | ||
Weighted average interest rate | 4.875% | ||||
Senior secured term loan facility due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 0 | $ 750 | 750 | ||
Senior secured term loan facility due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 3,929 | 3,209 | $ 3,225 | ||
Weighted average interest rate | 3.55% | ||||
Capital lease obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 233 | 227 | |||
Weighted average interest rate | 6.33% | ||||
Other debt obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 21 | $ 20 | |||
Weighted average interest rate | 2.65% | ||||
[1] | Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2016 | Dec. 31, 2017 | Mar. 01, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | |
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 6,683 | $ 6,706 | |||
Senior notes due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 900 | $ 900 | 0 | ||
Debt instrument, interest rate, stated percentage | 4.625% | ||||
Senior notes due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 600 | $ 600 | 0 | ||
Debt instrument, interest rate, stated percentage | 4.875% | ||||
Senior notes due 2025 and senior notes due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs, gross | 21 | ||||
Senior notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 0 | $ 1,500 | 1,500 | ||
Debt instrument, interest rate, stated percentage | 5.625% | ||||
Premium paid to redeem debt instrument | 42 | ||||
Write off of deferred debt issuance cost | 18 | ||||
Senior notes due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 1,000 | 1,000 | 1,000 | ||
Debt instrument, interest rate, stated percentage | 4.25% | ||||
Debt issuance costs, gross | $ 20 | ||||
Senior secured revolving credit facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs, gross | $ 3 | ||||
Line of credit facility, maximum borrowing capacity | 1,000 | ||||
Debt issuance costs, line of credit arrangements, gross | $ 5 | ||||
Letters of credit outstanding, amount | 41 | ||||
Line of credit facility, remaining borrowing capacity | $ 959 | ||||
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | ||||
Senior secured term loan facility due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 3,225 | $ 3,929 | 3,209 | ||
Debt issuance costs, gross | $ 4 | ||||
Debt instrument, basis spread on variable rate | 250.00% | 200.00% | |||
Debt instrument, unamortized discount | $ 8 | ||||
Senior secured term loan facility due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 0 | $ 750 | $ 750 |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 6,683 | $ 6,706 |
Long-term debt and capital lease obligations [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | 54 | |
2,019 | 55 | |
2,020 | 57 | |
2,021 | 58 | |
2,022 | 58 | |
Thereafter | 6,401 | |
Long-term debt, gross | $ 6,683 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Program surplus | $ 549 | $ 446 |
Pension obligations | 165 | 215 |
Other long-term tax liabilities | 397 | 480 |
Deferred employee compensation and benefits | 117 | 113 |
Insurance reserves | 162 | 131 |
Other | 80 | 107 |
Other liabilities, noncurrent | $ 1,470 | $ 1,492 |
Other Liabilities - Additional
Other Liabilities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Insurance claims, satisfied average term | three years |
Derivative Instruments and He76
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Noncurrent Assets [Member] | Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 11 | |
Other liabilities [member] | Not designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 12 | |
Other current assets [member] | Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 4 | 3 |
Accounts payable, accrued expenses and other [member] | Designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 1 | |
Accounts payable, accrued expenses and other [member] | Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 1 | $ 4 |
Derivative Instruments and He77
Derivative Instruments and Hedging Activities - Earnings Effect of Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Designated as hedging instrument [member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, ineffective portion and amount excluded from effectiveness testing, net | [1] | $ 0 | $ 0 | $ 0 |
Term loan interest rate swaps [member] | Designated as hedging instrument [member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) recognized in other comprehensive income (loss), effective portion, net | 11 | (7) | (11) | |
Foreign exchange forward contracts [member] | Designated as hedging instrument [member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments, gain (loss) recognized in other comprehensive income (loss), effective portion, net | (1) | |||
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net | [2] | 0 | ||
Other non-operating income, net [member] | Term loan interest rate swaps [member] | Not designated as hedging instrument [member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on interest rate derivative instruments not designated as hedging instruments | 2 | 4 | ||
Interest expense [member] | Term loan interest rate swaps [member] | Not designated as hedging instrument [member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loss reclassified to earnings, net from discontinued cash flow hedges | [3] | (10) | (4) | |
Gain (loss) on foreign currency transactions [member] | Foreign exchange forward contracts [member] | Not designated as hedging instrument [member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on foreign exchange forward contracts not designated as hedging instruments | $ 12 | $ 7 | $ 11 | |
[1] | There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the years ended December 31, 2017, 2016 and 2015. | |||
[2] | The earnings effect of the Fee Forward Contracts on fee revenues for the year ended December 31, 2017 was less than $1 million. | |||
[3] | These amounts are related to the dedesignation of the 2013 Interest Rate Swaps as cash flow hedges and were reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
Derivative Instruments and He78
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)Derivative | Dec. 31, 2016USD ($)Derivative | |
Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, maturity date | Mar. 1, 2022 | |
Number of interest rate derivatives held | Derivative | 2 | |
Designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 31 | |
Derivative, remaining maturity | 24 months | |
Not designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,450 | |
Derivative, swaption interest rate | 1.87% | |
Number of interest rate derivatives held | Derivative | 4 | |
Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 353 | |
$1.6 billion notional [member] | Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,600 | |
Derivative, swaption interest rate | 1.98% | |
$750 million notional [member] | Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 750 | |
Derivative, swaption interest rate | 2.02% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Level 1 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 2,575 | $ 2,516 |
Level 2 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 284 | 782 | |
Restricted cash equivalents | 12 | 11 | |
Level 3 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 3,954 | 4,006 |
Carrying value [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 284 | 782 | |
Restricted cash equivalents | 12 | 11 | |
Long-term debt | [1] | $ 6,348 | $ 6,369 |
[1] | The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Operating leases [member] | |
Schedule of Future Lease Payments [Line Items] | |
2,018 | $ 192 |
2,019 | 174 |
2,020 | 175 |
2,021 | 165 |
2,022 | 130 |
Thereafter | 1,025 |
Total minimum rent payments | 1,861 |
Recourse capital leases [member] | |
Schedule of Future Lease Payments [Line Items] | |
2,018 | 5 |
2,019 | 5 |
2,020 | 6 |
2,021 | 6 |
2,022 | 5 |
Thereafter | 34 |
Total minimum rent payments | 61 |
Amount representing interest | (19) |
Present value of net minimum rent payments | 42 |
Non-recourse capital leases [member] | |
Schedule of Future Lease Payments [Line Items] | |
2,018 | 19 |
2,019 | 24 |
2,020 | 24 |
2,021 | 24 |
2,022 | 24 |
Thereafter | 158 |
Total minimum rent payments | 273 |
Amount representing interest | (82) |
Present value of net minimum rent payments | $ 191 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Rent Expense [Abstract] | |||
Minimum rentals | $ 183 | $ 224 | $ 244 |
Contingent rentals | 101 | 98 | 104 |
Rent expense | $ 284 | $ 322 | $ 348 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017HotelEntity | Dec. 31, 2016HotelEntity | |
Additional Information [Abstract] | ||
Number of hotel properties under operating leases | 59 | 61 |
Number of hotel properties under capital leases | 4 | 4 |
Number of consolidated variable interest entities capital leases | Entity | 2 | 2 |
Leases starting expiration date | 2,018 | |
Leases ending expiration date | 2,196 | |
Date majority of leases expire | 2,026 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. income before tax | $ 791 | $ 934 | $ 262 |
Foreign income (loss) before tax | 139 | (378) | 271 |
Income from continuing operations before income taxes | $ 930 | $ 556 | $ 533 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 239 | $ 441 | $ 164 |
State | 59 | 143 | 51 |
Foreign | 95 | 70 | 64 |
Total current | 393 | 654 | 279 |
Federal | (679) | (116) | (606) |
State | (24) | 50 | (86) |
Foreign | (24) | (24) | 65 |
Deferred income taxes | (727) | (90) | (627) |
Provision (benefit) for income taxes | $ (334) | $ 564 | $ (348) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax provision | $ 326 | $ 194 | $ 187 |
State income taxes, net of U.S. federal tax benefit | 26 | 23 | 17 |
Foreign income tax expense | 1 | 32 | 3 |
Change in enacted tax rate | (665) | 0 | 0 |
Nontaxable liquidation of subsidiaries | 0 | 0 | (628) |
Corporate restructuring | 0 | 482 | 0 |
Change in deferred tax asset valuation allowance | (48) | (22) | 24 |
Provision (benefit) for uncertain tax positions | 38 | (139) | 18 |
Non-deductible share-based compensation | 0 | 0 | 23 |
Non-deductible goodwill | 0 | 0 | 13 |
Other, net | (12) | (6) | (5) |
Provision (benefit) for income taxes | $ (334) | $ 564 | $ (348) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 395 | $ 394 |
Compensation | 123 | 214 |
Other reserves | 12 | 15 |
Capital lease obligations | 78 | 84 |
Insurance reserves | 27 | 36 |
Program Surplus | 17 | 84 |
Property and equipment | 32 | 26 |
Investments | 16 | 12 |
Other | 57 | 66 |
Total gross deferred tax assets | 757 | 931 |
Less: valuation allowance | (408) | (507) |
Deferred tax assets | 349 | 424 |
Brands | (1,121) | (1,626) |
Amortizable intangible assets | (178) | (305) |
Investment in foreign subsidiaries | 0 | (39) |
Deferred income | 0 | (150) |
Deferred tax liabilities | (1,299) | (2,120) |
Net deferred taxes | $ (950) | $ (1,696) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 174 | $ 315 | $ 296 |
Additions for tax positions related to the prior year | 3 | 77 | 25 |
Additions for tax positions related to the current year | 126 | 9 | 8 |
Reductions for tax positions for prior years | (10) | (204) | (4) |
Settlements | (9) | (21) | (4) |
Lapse of statute of limitations | (2) | (2) | (2) |
Currency translation adjustment | 1 | 0 | 4 |
Balance at end of year | $ 283 | $ 174 | $ 315 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit from change in enacted tax rate | $ 665 | $ 0 | $ 0 |
Corporate structuring transactions, number | two | ||
Additional income tax expense from structuring transactions | 0 | $ 482 | 0 |
Net operating loss carryforwards | 1,600 | ||
Deferred tax assets, foreign net operating loss carryforwards | 395 | ||
Deferred tax assets, net operating loss carryforwards due to expire | $ 6 | ||
Net operating loss carryforwards expiration range | 2018 and 2037 | ||
Net operating loss carryforwards due to expire in one year | less than $1 million | ||
Deferred tax assets, net operating loss carryforwards not subject to expiration | $ 389 | ||
Net operating loss carryforwards valuation allowance | 384 | ||
Deferred tax asset valuation allowance decrease | 99 | ||
Interest and penalties expense related to uncertain tax positions | 3 | 4 | $ 5 |
Accrued interest and penalties related to uncertain tax positions | 33 | 30 | |
Unrecognized tax benefits that would impact effective tax rate | 285 | $ 176 | |
IRS proposed additional U.S. federal tax owed | 874 | ||
Accrual related to IRS proposed additional tax owed | 45 | ||
Net income [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax asset valuation allowance decrease | 48 | ||
Revaluation of DTA [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax asset valuation allowance decrease | $ 51 | ||
Pre-enactment [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Change in enacted tax rate | 35.00% | ||
Post-enactment [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Change in enacted tax rate | 21.00% | ||
Remeasurement of U.S. DTAs/DTLs [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit from change in enacted tax rate | $ 517 | ||
Uncertain tax position reserves [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit from change in enacted tax rate | 33 | ||
Other tax liabilities [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit from change in enacted tax rate | 84 | ||
Transition tax results [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit from change in enacted tax rate | 15 | ||
Recognition of tax benefits [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Provisional benefit from change in enacted tax rate | $ 16 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Projected Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Domestic plan [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of year | $ 381 | $ 394 |
Service cost | 0 | 0 |
Interest cost | 12 | 13 |
Actuarial loss | 16 | 1 |
Settlements and curtailments | (1) | (2) |
Effect of foreign exchange rates | 0 | 0 |
Benefits paid | (24) | (25) |
Benefit obligation at end of year | 384 | 381 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 267 | 265 |
Actual return on plan assets, net of expenses | 43 | 11 |
Employer contributions | 21 | 18 |
Settlements | (1) | (2) |
Effect of foreign exchange rates | 0 | 0 |
Benefits paid | (24) | (25) |
Fair value of plan assets at end of year | 306 | 267 |
Funded status at end of year (underfunded) | (78) | (114) |
Defined benefit plan, accumulated benefit obligation | 384 | 381 |
U.K. plan [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of year | 404 | 391 |
Service cost | 2 | 2 |
Interest cost | 10 | 12 |
Actuarial loss | 4 | 87 |
Settlements and curtailments | 0 | 0 |
Effect of foreign exchange rates | 40 | (74) |
Benefits paid | (17) | (14) |
Benefit obligation at end of year | 443 | 404 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 336 | 368 |
Actual return on plan assets, net of expenses | 24 | 42 |
Employer contributions | 9 | 5 |
Settlements | 0 | 0 |
Effect of foreign exchange rates | 34 | (65) |
Benefits paid | (17) | (14) |
Fair value of plan assets at end of year | 386 | 336 |
Funded status at end of year (underfunded) | (57) | (68) |
Defined benefit plan, accumulated benefit obligation | 443 | 404 |
International plans [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of year | 81 | 82 |
Service cost | 1 | 2 |
Interest cost | 1 | 2 |
Actuarial loss | 3 | 2 |
Settlements and curtailments | 0 | (1) |
Effect of foreign exchange rates | 4 | (1) |
Benefits paid | (4) | (5) |
Benefit obligation at end of year | 86 | 81 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 58 | 60 |
Actual return on plan assets, net of expenses | 6 | 1 |
Employer contributions | 4 | 3 |
Settlements | 0 | (1) |
Effect of foreign exchange rates | 1 | 0 |
Benefits paid | (4) | (5) |
Fair value of plan assets at end of year | 65 | 58 |
Funded status at end of year (underfunded) | (21) | (23) |
Defined benefit plan, accumulated benefit obligation | $ 86 | $ 81 |
Employee Benefit Plans - Sche90
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Domestic plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | $ 0 | $ 4 |
Non-current liability | (78) | (118) |
Net amount recognized | (78) | (114) |
U.K. plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | 0 | 0 |
Non-current liability | (57) | (68) |
Net amount recognized | (57) | (68) |
International plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current asset | 9 | 6 |
Non-current liability | (30) | (29) |
Net amount recognized | $ (21) | $ (23) |
Employee Benefit Plans - Sche91
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ (15) | $ 0 | $ 15 |
Prior service credit | (3) | (3) | (4) |
Amortization of net loss | (3) | (3) | (3) |
Net amount recognized | (21) | (6) | 8 |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 13 | 41 | 16 |
Prior service credit | 0 | 0 | 0 |
Amortization of net loss | (4) | (2) | (2) |
Net amount recognized | 9 | 39 | 14 |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 0 | 3 | 1 |
Prior service credit | 0 | 0 | 0 |
Amortization of net loss | 0 | (1) | (9) |
Net amount recognized | $ 0 | $ 2 | $ (8) |
Employee Benefit Plans - Sche92
Employee Benefit Plans - Schedule of Amounts in AOCI to be Recognized over Next Fiscal Year (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net losses | $ 3 | $ 2 | $ 2 |
Unrecognized prior service cost | 4 | 4 | 4 |
Amount unrecognized | 7 | 6 | 6 |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net losses | 4 | 4 | 2 |
Unrecognized prior service cost | 0 | 0 | 0 |
Amount unrecognized | 4 | 4 | 2 |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net losses | 0 | 0 | 0 |
Unrecognized prior service cost | 0 | 0 | 0 |
Amount unrecognized | $ 0 | $ 0 | $ 0 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Pension Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8 | $ 8 | $ 7 |
Interest cost | 12 | 13 | 16 |
Expected return on plan assets | (19) | (19) | (19) |
Amortization of prior service cost | 3 | 4 | 4 |
Amortization of net loss | 3 | 3 | 3 |
Settlement losses | 0 | 0 | 0 |
Net periodic pension cost (credit) | 7 | 9 | 11 |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 2 | 2 |
Interest cost | 10 | 12 | 15 |
Expected return on plan assets | (19) | (22) | (25) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 4 | 2 | 2 |
Settlement losses | 0 | 0 | 0 |
Net periodic pension cost (credit) | (3) | (6) | (6) |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2 | 3 | 3 |
Interest cost | 2 | 2 | 2 |
Expected return on plan assets | (3) | (3) | (4) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 0 | 0 | 0 |
Settlement losses | 0 | 0 | 10 |
Net periodic pension cost (credit) | $ 1 | $ 2 | $ 11 |
Employee Benefit Plans - Sche94
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.60% | 4.00% | |
Discount rate, net periodic pension cost | 4.00% | 4.20% | 3.90% |
Expected return on plan assets | 7.00% | 7.30% | 7.50% |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.60% | 2.80% | |
Salary inflation | 1.80% | 1.90% | |
Pension inflation | 3.00% | 3.10% | |
Discount rate, net periodic pension cost | 2.80% | 3.90% | 3.80% |
Expected return on plan assets | 5.50% | 6.50% | 6.50% |
Salary inflation, net periodic pension cost | 1.90% | 1.70% | 1.60% |
Pension inflation, net periodic pension cost | 3.10% | 2.80% | 2.80% |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.40% | 3.10% | |
Salary inflation | 2.20% | 2.10% | |
Pension inflation | 1.80% | 1.70% | |
Discount rate, net periodic pension cost | 3.00% | 3.50% | 3.30% |
Expected return on plan assets | 4.30% | 5.40% | 5.10% |
Salary inflation, net periodic pension cost | 2.10% | 2.10% | 2.20% |
Pension inflation, net periodic pension cost | 1.70% | 1.60% | 1.80% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Pension Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 306 | $ 267 | $ 265 |
Domestic plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 26 | |
Domestic plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 306 | 241 | |
Domestic plan [Member] | Cash and cash equivalents [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic plan [Member] | Cash and cash equivalents [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic plan [Member] | Equity funds [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 25 | |
Domestic plan [Member] | Equity funds [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic plan [Member] | Debt securities [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
Domestic plan [Member] | Debt securities [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 62 | |
Domestic plan [Member] | Bond funds [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic plan [Member] | Bond funds [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic plan [Member] | Common collective trusts [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic plan [Member] | Common collective trusts [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 306 | 139 | |
Domestic plan [Member] | Other [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic plan [Member] | Other [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 40 | |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 386 | 336 | 368 |
U.K. plan [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 386 | 336 | |
U.K. plan [Member] | Cash and cash equivalents [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Cash and cash equivalents [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Equity funds [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Equity funds [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Debt securities [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Debt securities [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Bond funds [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Bond funds [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Common collective trusts [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Common collective trusts [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 386 | 336 | |
U.K. plan [Member] | Other [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.K. plan [Member] | Other [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 65 | 58 | $ 60 |
International plans [Member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 13 | |
International plans [Member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 54 | 45 | |
International plans [Member] | Cash and cash equivalents [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 10 | |
International plans [Member] | Cash and cash equivalents [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International plans [Member] | Equity funds [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 3 | |
International plans [Member] | Equity funds [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 6 | |
International plans [Member] | Debt securities [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International plans [Member] | Debt securities [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International plans [Member] | Bond funds [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International plans [Member] | Bond funds [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 6 | |
International plans [Member] | Common collective trusts [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International plans [Member] | Common collective trusts [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 43 | 33 | |
International plans [Member] | Other [member] | Level 1 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International plans [Member] | Other [member] | Level 2 [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Sche96
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Domestic plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 33 |
2,019 | 26 |
2,020 | 26 |
2,021 | 26 |
2,022 | 26 |
2023-2027 | 121 |
Defined benefit plan expected future benefit payments | 258 |
U.K. plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 18 |
2,019 | 18 |
2,020 | 19 |
2,021 | 19 |
2,022 | 19 |
2023-2027 | 102 |
Defined benefit plan expected future benefit payments | 195 |
International plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 10 |
2,019 | 5 |
2,020 | 5 |
2,021 | 5 |
2,022 | 5 |
2023-2027 | 26 |
Defined benefit plan expected future benefit payments | $ 56 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer plans, plan assets | $ 331 | $ 289 | |
Multiemployer plans, accumulated benefit obligation | 409 | 405 | |
Defined contribution plan, cost | 15 | 17 | $ 18 |
Supplemental plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, benefit obligation | $ 15 | $ 19 | |
Supplemental plan, cost recognized | 1 | 3 | less than $1 million |
Domestic plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $19 million | ||
Defined benefit plan, benefit obligation | $ 384 | $ 381 | $ 394 |
Domestic plan [Member] | Equity securities [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 80 percent | 65 percent | |
Domestic plan [Member] | Debt securities [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 20 percent | 35 percent | |
U.K. plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $9 million | ||
Defined benefit plan, benefit obligation | $ 443 | $ 404 | 391 |
International plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $4 million | ||
Defined benefit plan, benefit obligation | $ 86 | $ 81 | $ 82 |
International plans [Member] | Equity securities [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 75 percent | 65 percent | |
International plans [Member] | Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 25 percent | 35 percent |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 121 | $ 81 | $ 147 | |
Tax benefit | 49 | 31 | $ 31 | |
Share-based compensation liability accrued | 15 | 15 | ||
Unrecognized compensation costs related to unvested awards | $ 116 | |||
Unrecognized compensation costs related to unvested awards, weighted-average period | 1 year 10 months | |||
Shares of common stock reserved for future issuance | 17,968,736 | |||
Conversion from performance shares to RSUs upon completion of the spin-offs | 671,604 | |||
Achievement percentage of performance shares converted to restricted stock units | 100.00% | |||
Incremental compensation expense from modification | $ 3.3 | $ 0.3 | ||
Remaining incremental expense related to modification | $ 2.3 | |||
Stock options [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining contractual term | 8 years 7 months | |||
EBITDA CAGR [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion from performance shares to RSUs upon completion of the spin-offs | (335,802) | |||
Vesting rights, percentage | 50.00% | |||
Anticipated achievement percentage | 200.00% | |||
Number of shares granted | 179,006 | 300,784 | 204,523 | |
Weighted average grant date fair value, granted | $ 58.40 | $ 58.83 | $ 82.38 | |
Free cash flow CAGR [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting rights, percentage | 50.00% | |||
Anticipated achievement percentage | 175.00% | |||
Number of shares granted | 178,975 | |||
Weighted average grant date fair value, granted | $ 58.40 | |||
Relative shareholder return [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 300,784 | 204,523 | ||
Weighted average grant date fair value, granted | $ 62.43 | $ 98.94 | ||
Deferred share units [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 16,638 | 11,393 | 6,179 | |
Weighted average grant date fair value, granted | $ 66.09 | $ 66.12 | $ 84.96 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Additional Information on Restricted Stock Units (Details) - Restricted stock units (RSUs) [member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Additional Information On Restricted Stock Units [Line Items] | |||
Number of shares granted | 1,467,396 | 1,169,238 | 679,546 |
Weighted average grant date fair value, granted | $ 58.80 | $ 59.73 | $ 82.38 |
Fair value of shares vested (in millions) | $ 78 | $ 40 | $ 90 |
Share-Based Compensation - S100
Share-Based Compensation - Schedule of Restricted Stock Units Award Activity (Details) - $ / shares | Jan. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion from performance shares to RSUs upon completion of the spin-offs | 671,604 | ||||
Restricted stock units (RSUs) [member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding, beginning balance | 1,624,541 | ||||
Conversion from performance shares to RSUs upon completion of the spin-offs | [1] | 671,604 | |||
Effect of the spin-offs | 439,113 | ||||
Granted | 1,467,396 | 1,169,238 | 679,546 | ||
Vested | (1,199,987) | ||||
Forfeited | (161,736) | ||||
Outstanding, ending balance | 2,840,931 | 1,624,541 | |||
Weighted average grant date fair value, outstanding beginning balance | $ 65.24 | ||||
Weighted average grant date fair value, conversion from performance shares upon completion of the spin-offs | 72.42 | ||||
Weighted average grant date fair value, effect of the spin-offs | [2] | 57.60 | |||
Weighted average grant date fair value, granted | 58.80 | $ 59.73 | $ 82.38 | ||
Weighted average grant date fair value, vested | [2] | 51.65 | |||
Weighted average grant date fair value, forfeited | [2] | 50.33 | |||
Weighted average grant date fair value, outstanding ending balance | $ 51.44 | $ 65.24 | |||
[1] | Represents all performance shares outstanding as of December 31, 2016. | ||||
[2] | The weighted average grant date fair value was adjusted to reflect the Conversion Factor. |
Share-Based Compensation - S101
Share-Based Compensation - Schedule of Additional Information on Stock Options (Details) - Stock options [member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Additional Information on Stock Options [Line Items] | |||
Number of options granted | 748,965 | 503,150 | 309,528 |
Weighted average exercise price per share | $ 58.40 | $ 58.83 | $ 82.38 |
Weighted average grant date fair value per share | $ 13.96 | $ 16.41 | $ 25.17 |
Share-Based Compensation - S102
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock options [member] | 12 Months Ended | |||
Dec. 31, 2017Rate | Dec. 31, 2016Rate | Dec. 31, 2015Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 24.00% | 32.00% | 28.00% |
Dividend yield | [2] | 1.43% | 0.00% | |
Risk-free interest rate | [3] | 1.36% | 1.67% | |
Expected term (in years) | [4] | 6 years | 6 years | 6 years |
Minimum [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | [2] | 0.92% | ||
Risk-free interest rate | [3] | 1.93% | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield | [2] | 1.03% | ||
Risk-free interest rate | [3] | 2.03% | ||
[1] | Estimated using historical movement of Hilton's stock price and, due to limited trading history, historical volatility of our peer group over a time period consistent with our expected term assumption. | |||
[2] | Estimated based on the expected annualized dividend payment at the grant date. For the 2015 options granted, we had no plans to pay dividends during the expected term at the time of grant. | |||
[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 - S103
Share-Based Compensation - Schedule of Stock Options Activity (Details) - Stock options [member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding, beginning balance | 1,076,031 | ||||
Effect of the spin-offs | 251,145 | ||||
Granted | 748,965 | 503,150 | 309,528 | ||
Exercised | (61,888) | ||||
Forfeited or expired | (20,799) | ||||
Outstanding, ending balance | 1,993,454 | [1] | 1,076,031 | ||
Exercisable | [1] | 741,798 | |||
Weighted average exercise price, beginning balance | $ 66.83 | ||||
Weighted average exercise price, effect of the spin-offs | [2] | 57.60 | |||
Weighted average exercise price, granted | 58.40 | $ 58.83 | $ 82.38 | ||
Weighted average exercise price, exercised | [2] | 46.75 | |||
Weighted average exercise price, forfeited, canceled or expired | [2] | 53.47 | |||
Weighted average exercise price, ending balance | 51.24 | $ 66.83 | |||
Weighted average exercise price, exercisable | [2] | $ 48.32 | |||
Aggregate intrinsic value of outstanding stock options | $ 57 | ||||
Aggregate intrinsic value of exercisable stock options | $ 23 | ||||
[1] | The aggregate intrinsic value of options outstanding and options exercisable was $57 million and $23 million, respectively, as of December 31, 2017. | ||||
[2] | The weighted average exercise price was adjusted to reflect the Conversion Factor. |
Share-Based Compensation - S104
Share-Based Compensation - Schedule of Additional Information on Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EBITDA CAGR [member] | |||
Schedule of Additional Information on Performance Shares [Line Items] | |||
Number of shares granted | 179,006 | 300,784 | 204,523 |
Weighted average grant date fair value, granted | $ 58.40 | $ 58.83 | $ 82.38 |
Fair value of shares vested (in millions) | $ 0 | $ 12 | $ 0 |
Free cash flow CAGR [Member] | |||
Schedule of Additional Information on Performance Shares [Line Items] | |||
Number of shares granted | 178,975 | ||
Weighted average grant date fair value, granted | $ 58.40 | ||
Fair value of shares vested (in millions) | $ 0 | ||
Relative shareholder return [member] | |||
Schedule of Additional Information on Performance Shares [Line Items] | |||
Number of shares granted | 300,784 | 204,523 | |
Weighted average grant date fair value, granted | $ 62.43 | $ 98.94 | |
Fair value of shares vested (in millions) | $ 16 | $ 0 |
Share-Based Compensation - S105
Share-Based Compensation - Schedule of Performance Shares Award Activity (Details) - $ / shares | Jan. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Conversion from performance shares to RSUs upon completion of the spin-offs | 671,604 | |||
EBITDA CAGR [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning balance | 335,802 | |||
Conversion from performance shares to RSUs upon completion of the spin-offs | (335,802) | |||
Granted | 179,006 | 300,784 | 204,523 | |
Forfeited or canceled | (2,915) | |||
Outstanding, ending balance | 176,091 | 335,802 | ||
Weighted average grant date fair value, outstanding beginning balance | $ 68.09 | |||
Weighted average grant date fair value, conversion from performance shares upon completion of the spin-offs | 68.09 | |||
Weighted average grant date fair value, granted | 58.40 | $ 58.83 | $ 82.38 | |
Weighted average grant date fair value, forfeited or canceled | 58.02 | |||
Weighted average grant date fair value, outstanding ending balance | $ 58.41 | $ 68.09 | ||
Free cash flow CAGR [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning balance | 0 | |||
Granted | 178,975 | |||
Forfeited or canceled | (2,914) | |||
Outstanding, ending balance | 176,061 | 0 | ||
Weighted average grant date fair value, granted | $ 58.40 | |||
Weighted average grant date fair value, forfeited or canceled | 58.02 | |||
Weighted average grant date fair value, outstanding ending balance | $ 58.41 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Earnings Per Share [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of EPS, shares | 1 | 2 | |||||||||||
Antidilutive securities excluded from computation of EPS | less than 1 million | ||||||||||||
Net Income (Loss) Available to Common Stockholders, Operations, Basic [Abstract] | |||||||||||||
Net income (loss) from continuing operations attributable to Hilton stockholders | $ 1,259 | $ (18) | $ 876 | ||||||||||
Net Income (Loss) Available to Common Stockholders, Operations, Diluted [Abstract] | |||||||||||||
Net income (loss) from continuing operations attributable to Hilton stockholders | $ 1,259 | $ (18) | $ 876 | ||||||||||
Basic EPS: | |||||||||||||
Weighted average shares outstanding, basic | 324 | 329 | 329 | ||||||||||
Net income (loss) from continuing operations per share | $ (1.20) | $ 0.27 | $ 0.29 | $ 0.58 | $ 3.88 | $ (0.05) | [1],[2] | $ 2.67 | [2] | ||||
Diluted EPS: | |||||||||||||
Weighted average shares outstanding, diluted | 327 | 329 | 330 | ||||||||||
Net income (loss) from continuing operations per share | $ (1.20) | $ 0.27 | $ 0.29 | $ 0.58 | $ 3.85 | $ (0.05) | [1],[2] | $ 2.66 | [2] | ||||
[1] | The sum of the earnings (loss) per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. | ||||||||||||
[2] | Weighted average shares outstanding used in the computation of basic and diluted earnings (loss) per share and cash dividends declared per share for the years ended December 31, 2016 and 2015 was adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |
Accumulated Other Comprehens107
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (1,001) | $ (784) | $ (628) | |
Other comprehensive loss before reclassifications | 182 | (225) | (178) | |
Amounts reclassified from accumulated other comprehensive loss | 14 | 8 | 22 | |
Net current period other comprehensive income (loss) | 196 | (217) | (156) | |
Spin-offs of Park and HGV | (4,223) | |||
Ending balance | (742) | (1,001) | (784) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [1] | (738) | (580) | (446) |
Other comprehensive loss before reclassifications | [1] | 160 | (157) | (150) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 1 | (1) | 16 |
Net current period other comprehensive income (loss) | [1] | 161 | (158) | (134) |
Spin-offs of Park and HGV | [1] | 63 | ||
Ending balance | [1] | (514) | (738) | (580) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (251) | (194) | (179) | |
Other comprehensive loss before reclassifications | 15 | (63) | (21) | |
Amounts reclassified from accumulated other comprehensive loss | 7 | 6 | 6 | |
Net current period other comprehensive income (loss) | 22 | (57) | (15) | |
Spin-offs of Park and HGV | 0 | |||
Ending balance | (229) | (251) | (194) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (12) | (10) | (3) | |
Other comprehensive loss before reclassifications | 7 | (5) | (7) | |
Amounts reclassified from accumulated other comprehensive loss | 6 | 3 | 0 | |
Net current period other comprehensive income (loss) | 13 | (2) | (7) | |
Spin-offs of Park and HGV | 0 | |||
Ending balance | 1 | $ (12) | $ (10) | |
Accumulated Other Comprehensive Income (Loss) [member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Spin-offs of Park and HGV | $ 63 | |||
[1] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. |
Accumulated Other Comprehens108
Accumulated Other Comprehensive Loss - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Amounts reclassified from accumulated other comprehensive loss | $ (14) | $ (8) | $ (22) | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Tax benefit (expense) | [1] | 0 | [2] | 0 | [2] | 9 | |
Amounts reclassified from accumulated other comprehensive loss | [3] | (1) | 1 | (16) | |||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Currency translation adjustment release [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Sale and liquidation of foreign assets | (2) | [4] | 0 | (25) | [4] | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Net Investment Hedging [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Sale and liquidation of foreign assets | 1 | [5] | 1 | [5] | 0 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Amortization of prior service credit (cost) | [6] | (3) | (4) | (4) | |||
Amortization of net gain (loss) | [6] | (7) | (5) | (5) | |||
Tax benefit (expense) | [1] | 3 | 3 | 3 | |||
Amounts reclassified from accumulated other comprehensive loss | (7) | (6) | (6) | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Dedesignation of interest rate swaps | (10) | [7] | (4) | [7] | 0 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 4 | [1] | 1 | [1] | 0 | ||
Amounts reclassified from accumulated other comprehensive loss | $ (6) | $ (3) | $ 0 | ||||
[1] | Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. | ||||||
[2] | The tax benefit was less than $1 million for the years ended December 31, 2017 and 2016. | ||||||
[3] | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. | ||||||
[4] | Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions and gain on sales of assets, net in our consolidated statements of operations for the years ended December 31, 2017 and 2015, respectively. | ||||||
[5] | Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. | ||||||
[6] | Reclassified out of accumulated other comprehensive loss to general and administrative expenses in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost. See Note 15: "Employee Benefit Plans" for additional information. | ||||||
[7] | Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statements of operations. Refer to Note 11: "Derivative Instruments and Hedging Activities" for additional information. |
Business Segments - Additional
Business Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017RoomHotel | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 2 |
Management and franchise [member] | |
Segment Reporting Information [Line Items] | |
Number of Managed Hotels | 656 |
Number of Franchised Hotels | 4,507 |
Number of Managed and Franchised Rooms | Room | 825,808 |
Ownership [member] | |
Segment Reporting Information [Line Items] | |
Number of Owned and Leased Hotel Properties | 73 |
Number of Owned and Leased Hotel Rooms | Room | 22,206 |
Number of Wholly Owned and Leased Hotels and Resorts | 64 |
Number of Non Wholly Owned Hotel Properties | 1 |
Number of Hotels of Consolidated VIEs | 2 |
Number of Hotels Owned or Leased by Unconsolidated Affiliates | 6 |
Discontinued operations, disposed of by means other than sale, spinoff [member] | |
Segment Reporting Information [Line Items] | |
Number of Managed and Franchised Rooms | Room | 35,406 |
Number of Managed and Franchised Hotel Properties | 67 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenues from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | $ 2,279 | $ 2,354 | $ 2,346 | $ 2,161 | $ 1,839 | $ 1,867 | $ 1,950 | $ 1,726 | $ 9,140 | $ 7,382 | $ 7,133 | |
Other revenues | 105 | 82 | 71 | |||||||||
Other revenues from managed and franchised properties | 5,645 | 4,310 | 4,011 | |||||||||
Management and franchise [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [1] | 1,983 | 1,580 | 1,496 | ||||||||
Ownership [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 1,450 | 1,452 | 1,596 | |||||||||
Operating segments [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 3,433 | 3,032 | 3,092 | |||||||||
Intersegment eliminations [member] | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [1] | $ (43) | $ (42) | $ (41) | ||||||||
[1] | Includes management, royalty and intellectual property fees charged to our ownership segment, which were eliminated in our consolidated statements of operations. |
Business Segments - Reconcil111
Business Segments - Reconciliation of Segment Operating Income to Income from Continuing Operations before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | $ 348 | $ 382 | $ 365 | $ 277 | $ 244 | $ 265 | $ 273 | $ 170 | $ 1,372 | $ 952 | $ 900 | |
Other revenues, less other expenses | 49 | 16 | 22 | |||||||||
Depreciation and amortization | (347) | (364) | (385) | |||||||||
General and administrative | (434) | (403) | (537) | |||||||||
Gain on sales of assets, net | 0 | 8 | 163 | |||||||||
Interest expense | (408) | (394) | (377) | |||||||||
Gain (loss) on foreign currency transactions | 3 | (16) | (41) | |||||||||
Loss on debt extinguishment | (60) | 0 | 0 | |||||||||
Other non-operating income, net | 23 | 14 | 51 | |||||||||
Income from continuing operations before income taxes | 930 | 556 | 533 | |||||||||
Management and franchise [member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | [1] | 1,983 | 1,580 | 1,496 | ||||||||
Ownership [member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | [1] | 121 | 115 | 141 | ||||||||
Operating segments [member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income | $ 2,104 | $ 1,695 | $ 1,637 | |||||||||
[1] | Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated financial statements. |
Business Segments - Schedule of
Business Segments - Schedule of Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 14,308 | $ 26,211 |
Total assets of continuing operations | 14,308 | 14,386 |
Corporate and other [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,890 | 2,529 |
Management and franchise [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 11,454 | 10,825 |
Ownership [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 964 | $ 1,032 |
Business Segments - Schedule113
Business Segments - Schedule of Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||
Capital expenditures for property and equipment | $ 58 | $ 317 | $ 310 |
Capital expenditures for property and equipment of continuing operations | 58 | 62 | 67 |
Corporate and other [member] | |||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||
Capital expenditures for property and equipment | 26 | 17 | 15 |
Ownership [member] | |||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | |||
Capital expenditures for property and equipment | $ 32 | $ 45 | $ 52 |
Business Segments - Schedule114
Business Segments - Schedule of Revenue from External Customers by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 2,279 | $ 2,354 | $ 2,346 | $ 2,161 | $ 1,839 | $ 1,867 | $ 1,950 | $ 1,726 | $ 9,140 | $ 7,382 | $ 7,133 |
United States | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 7,033 | 5,315 | 4,935 | ||||||||
United Kingdom | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 547 | 955 | 1,017 | ||||||||
All other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 1,560 | $ 1,112 | $ 1,181 |
Business Segments - Schedule115
Business Segments - Schedule of Property and Equipment, Net by Country (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | $ 353 | $ 341 |
United States | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 105 | 92 |
Japan | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 94 | 87 |
United Kingdom | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 82 | 79 |
Germany | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | 36 | 35 |
All other | ||
Schedule of Property and Equipment, Net by Country [Line Items] | ||
Property and equipment, net | $ 36 | $ 48 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Contract | Sep. 30, 2017Contract | Dec. 31, 2016USD ($) | |
Commitments and Contingencies [Line Items] | |||
Accounts payable, accrued expenses and other | $ 2,208 | $ 2,684 | |
Management contract performance guarantees [member] | |||
Commitments and Contingencies [Line Items] | |||
Number of contracts with performance guarantees | Contract | 6 | ||
Guarantor obligations, term | 2019 to 2030 | ||
Guarantor obligations, maximum exposure, undiscounted | $ 79 | ||
Accounts payable, accrued expenses and other | 12 | 11 | |
Other non-current liabilities | $ 9 | $ 17 | |
Number of contracts with performance guarantees with recorded liabilities | Contract | 2 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions, by Related Party (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Related Party Transaction [Line Items] | ||||
Accounts receivable, net | $ 998 | $ 755 | ||
Management and franchise contracts, net | 909 | 963 | ||
Accounts payable, accrued expenses and other | 2,150 | 1,821 | ||
Franchise fees | 1,382 | 1,154 | $ 1,087 | |
Base and other management fees | 336 | 242 | 230 | |
Incentive management fees | 222 | 142 | 138 | |
Other revenues from managed and franchised properties | 5,645 | 4,310 | 4,011 | |
Other expenses from managed and franchised properties | 5,645 | 4,310 | 4,011 | |
Contract acquisition costs | 75 | 55 | 37 | |
Investments In Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable, net | 2 | 4 | ||
Management and franchise contracts, net | 20 | 20 | ||
Accounts payable, accrued expenses and other | 1 | 1 | ||
Franchise fees | 1 | 1 | 1 | |
Base and other management fees | 6 | 8 | 6 | |
Incentive management fees | 3 | 4 | 2 | |
Other revenues from managed and franchised properties | 22 | 21 | 31 | |
Other expenses from managed and franchised properties | 22 | 21 | 31 | |
Contract acquisition costs | 0 | 0 | 4 | |
The Blackstone Group And Affiliates [member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable, net | 18 | |||
Management and franchise contracts, net | 13 | |||
Accounts payable, accrued expenses and other | 8 | |||
Franchise fees | 19 | [1] | 29 | 34 |
Base and other management fees | 5 | [1] | 10 | 11 |
Incentive management fees | 1 | [1] | 3 | 3 |
Other revenues from managed and franchised properties | 113 | [1] | 144 | 160 |
Other expenses from managed and franchised properties | 113 | [1] | 144 | 160 |
Contract acquisition costs | $ 11 | [1] | $ 0 | $ 0 |
[1] | Includes amounts only for the nine months ended September 30, 2017, the period in 2017 during which Blackstone was a related party of the Company. |
Supplemental Disclosures of 118
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Paid [Abstract] | |||
Interest paid | $ 314 | $ 478 | $ 485 |
Income Taxes Paid, Net [Abstract] | |||
Income taxes, net of refunds | 526 | 677 | 475 |
Other Significant Noncash Transactions [Line Items] | |||
Non-cash spin-offs of Park and HGV (financing activities) | $ 25 | ||
Non-cash capital lease obligation reduction (financing activities) | 24 | ||
Discontinued operations, disposed of by means other than sale, spinoff [member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Conversion of Park's property and equipment to timeshare inventory of HGV (investing activities) | $ 116 | ||
Mortgage loan assumed by Park (financing activities) | $ 450 |
Condensed Consolidating Guar119
Condensed Consolidating Guarantor Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||||
Cash and cash equivalents | $ 570 | $ 1,062 | ||
Restricted cash and cash equivalents | 100 | 121 | ||
Accounts receivable, net | 998 | 755 | ||
Intercompany receivables | 0 | 0 | ||
Prepaid expenses | 111 | 89 | ||
Income taxes receivable | 36 | 13 | ||
Other | 171 | 39 | ||
Current assets of discontinued operations | 0 | 1,478 | ||
Total current assets | 1,986 | 3,557 | ||
Intangibles and Other Assets: | ||||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 5,190 | 5,218 | $ 5,280 | |
Brands | 4,890 | 4,848 | ||
Management and franchise contracts, net | 909 | 963 | ||
Other intangible assets, net | 433 | 447 | ||
Property and equipment, net | 353 | 341 | ||
Deferred income tax assets | 113 | 82 | ||
Other | 434 | 408 | ||
Intangibles and other assets of discontinued operations | 0 | 10,347 | ||
Total intangibles and other assets | 12,322 | 22,654 | ||
Total assets | 14,308 | 26,211 | ||
Current Liabilities: | ||||
Accounts payable, accrued expenses and other | 2,150 | 1,821 | ||
Intercompany payables | 0 | 0 | ||
Current maturities of long-term debt | 46 | 33 | ||
Income taxes payable | 12 | 56 | ||
Current liabilities of discontinued operations | 0 | 774 | ||
Total current liabilities | 2,208 | 2,684 | ||
Long-term debt | 6,556 | 6,583 | ||
Deferred revenues | 97 | 42 | ||
Deferred income tax liabilities | 1,063 | 1,778 | ||
Liability for guest loyalty program | 839 | 889 | ||
Other | 1,470 | 1,492 | ||
Non-current liabilities of discontinued operations | 0 | 6,894 | ||
Total liabilities | 12,233 | 20,362 | ||
Equity: | ||||
Total Hilton stockholders' equity | 2,072 | 5,899 | ||
Noncontrolling interests | 3 | (50) | ||
Total equity | 2,075 | 5,849 | $ 5,951 | $ 4,714 |
Total liabilities and equity | 14,308 | 26,211 | ||
Eliminations [member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | (40) | (42) | ||
Prepaid expenses | (3) | (3) | ||
Income taxes receivable | (24) | (17) | ||
Other | 0 | 0 | ||
Current assets of discontinued operations | (24) | |||
Total current assets | (67) | (86) | ||
Intangibles and Other Assets: | ||||
Investments in subsidiaries | (20,326) | (35,661) | ||
Goodwill | 0 | 0 | ||
Brands | 0 | 0 | ||
Management and franchise contracts, net | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Deferred income tax assets | (122) | (179) | ||
Other | 0 | 0 | ||
Intangibles and other assets of discontinued operations | (10) | |||
Total intangibles and other assets | (20,448) | (35,850) | ||
Total assets | (20,515) | (35,936) | ||
Current Liabilities: | ||||
Accounts payable, accrued expenses and other | (3) | (3) | ||
Intercompany payables | (40) | (42) | ||
Current maturities of long-term debt | 0 | 0 | ||
Income taxes payable | (24) | (17) | ||
Current liabilities of discontinued operations | (24) | |||
Total current liabilities | (67) | (86) | ||
Long-term debt | 0 | 0 | ||
Deferred revenues | 0 | 0 | ||
Deferred income tax liabilities | (122) | (179) | ||
Liability for guest loyalty program | 0 | 0 | ||
Other | 0 | 0 | ||
Non-current liabilities of discontinued operations | (10) | |||
Total liabilities | (189) | (275) | ||
Equity: | ||||
Total Hilton stockholders' equity | (20,326) | (35,661) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (20,326) | (35,661) | ||
Total liabilities and equity | (20,515) | (35,936) | ||
Parent [member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Income taxes receivable | 0 | 0 | ||
Other | 0 | 0 | ||
Current assets of discontinued operations | 0 | |||
Total current assets | 0 | 0 | ||
Intangibles and Other Assets: | ||||
Investments in subsidiaries | 2,081 | 5,889 | ||
Goodwill | 0 | 0 | ||
Brands | 0 | 0 | ||
Management and franchise contracts, net | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Deferred income tax assets | 6 | 10 | ||
Other | 0 | 0 | ||
Intangibles and other assets of discontinued operations | 0 | |||
Total intangibles and other assets | 2,087 | 5,899 | ||
Total assets | 2,087 | 5,899 | ||
Current Liabilities: | ||||
Accounts payable, accrued expenses and other | 15 | 0 | ||
Intercompany payables | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Current liabilities of discontinued operations | 0 | |||
Total current liabilities | 15 | 0 | ||
Long-term debt | 0 | 0 | ||
Deferred revenues | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Liability for guest loyalty program | 0 | 0 | ||
Other | 0 | 0 | ||
Non-current liabilities of discontinued operations | 0 | |||
Total liabilities | 15 | 0 | ||
Equity: | ||||
Total Hilton stockholders' equity | 2,072 | 5,899 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 2,072 | 5,899 | ||
Total liabilities and equity | 2,087 | 5,899 | ||
Guarantor Subsidiaries [member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 18 | 22 | ||
Restricted cash and cash equivalents | 10 | 9 | ||
Accounts receivable, net | 702 | 484 | ||
Intercompany receivables | 0 | 0 | ||
Prepaid expenses | 24 | 21 | ||
Income taxes receivable | 60 | 30 | ||
Other | 15 | 5 | ||
Current assets of discontinued operations | 0 | |||
Total current assets | 829 | 571 | ||
Intangibles and Other Assets: | ||||
Investments in subsidiaries | 2,081 | 5,889 | ||
Goodwill | 3,824 | 3,824 | ||
Brands | 4,405 | 4,404 | ||
Management and franchise contracts, net | 634 | 716 | ||
Other intangible assets, net | 283 | 296 | ||
Property and equipment, net | 67 | 62 | ||
Deferred income tax assets | 0 | 0 | ||
Other | 183 | 213 | ||
Intangibles and other assets of discontinued operations | 12 | |||
Total intangibles and other assets | 11,477 | 15,416 | ||
Total assets | 12,306 | 15,987 | ||
Current Liabilities: | ||||
Accounts payable, accrued expenses and other | 1,229 | 1,091 | ||
Intercompany payables | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Current liabilities of discontinued operations | 77 | |||
Total current liabilities | 1,229 | 1,168 | ||
Long-term debt | 0 | 0 | ||
Deferred revenues | 97 | 42 | ||
Deferred income tax liabilities | 1,180 | 1,919 | ||
Liability for guest loyalty program | 839 | 889 | ||
Other | 581 | 490 | ||
Non-current liabilities of discontinued operations | 0 | |||
Total liabilities | 3,926 | 4,508 | ||
Equity: | ||||
Total Hilton stockholders' equity | 8,380 | 11,479 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 8,380 | 11,479 | ||
Total liabilities and equity | 12,306 | 15,987 | ||
Non-Guarantor Subsidiaries [member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 550 | 1,037 | ||
Restricted cash and cash equivalents | 29 | 25 | ||
Accounts receivable, net | 275 | 264 | ||
Intercompany receivables | 40 | 42 | ||
Prepaid expenses | 84 | 65 | ||
Income taxes receivable | 0 | 0 | ||
Other | 155 | 33 | ||
Current assets of discontinued operations | 1,502 | |||
Total current assets | 1,133 | 2,968 | ||
Intangibles and Other Assets: | ||||
Investments in subsidiaries | 0 | 0 | ||
Goodwill | 1,366 | 1,394 | ||
Brands | 485 | 444 | ||
Management and franchise contracts, net | 273 | 247 | ||
Other intangible assets, net | 149 | 150 | ||
Property and equipment, net | 266 | 267 | ||
Deferred income tax assets | 124 | 82 | ||
Other | 200 | 153 | ||
Intangibles and other assets of discontinued operations | 10,345 | |||
Total intangibles and other assets | 2,863 | 13,082 | ||
Total assets | 3,996 | 16,050 | ||
Current Liabilities: | ||||
Accounts payable, accrued expenses and other | 633 | 414 | ||
Intercompany payables | 0 | 0 | ||
Current maturities of long-term debt | 14 | 7 | ||
Income taxes payable | 36 | 73 | ||
Current liabilities of discontinued operations | 721 | |||
Total current liabilities | 683 | 1,215 | ||
Long-term debt | 240 | 241 | ||
Deferred revenues | 0 | 0 | ||
Deferred income tax liabilities | 0 | 38 | ||
Liability for guest loyalty program | 0 | 0 | ||
Other | 656 | 713 | ||
Non-current liabilities of discontinued operations | 6,900 | |||
Total liabilities | 1,579 | 9,107 | ||
Equity: | ||||
Total Hilton stockholders' equity | 2,414 | 6,993 | ||
Noncontrolling interests | 3 | (50) | ||
Total equity | 2,417 | 6,943 | ||
Total liabilities and equity | 3,996 | 16,050 | ||
HOC [member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 2 | 3 | ||
Restricted cash and cash equivalents | 61 | 87 | ||
Accounts receivable, net | 21 | 7 | ||
Intercompany receivables | 0 | 0 | ||
Prepaid expenses | 6 | 6 | ||
Income taxes receivable | 0 | 0 | ||
Other | 1 | 1 | ||
Current assets of discontinued operations | 0 | |||
Total current assets | 91 | 104 | ||
Intangibles and Other Assets: | ||||
Investments in subsidiaries | 8,713 | 12,583 | ||
Goodwill | 0 | 0 | ||
Brands | 0 | 0 | ||
Management and franchise contracts, net | 2 | 0 | ||
Other intangible assets, net | 1 | 1 | ||
Property and equipment, net | 20 | 12 | ||
Deferred income tax assets | 105 | 167 | ||
Other | 31 | 30 | ||
Intangibles and other assets of discontinued operations | 0 | |||
Total intangibles and other assets | 8,872 | 12,793 | ||
Total assets | 8,963 | 12,897 | ||
Current Liabilities: | ||||
Accounts payable, accrued expenses and other | 256 | 293 | ||
Intercompany payables | 40 | 42 | ||
Current maturities of long-term debt | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Current liabilities of discontinued operations | 0 | |||
Total current liabilities | 296 | 335 | ||
Long-term debt | 983 | 981 | ||
Deferred revenues | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Liability for guest loyalty program | 0 | 0 | ||
Other | 233 | 277 | ||
Non-current liabilities of discontinued operations | 4 | |||
Total liabilities | 1,512 | 1,597 | ||
Equity: | ||||
Total Hilton stockholders' equity | 7,451 | 11,300 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 7,451 | 11,300 | ||
Total liabilities and equity | 8,963 | 12,897 | ||
HWF Issuers [member] | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Income taxes receivable | 0 | 0 | ||
Other | 0 | 0 | ||
Current assets of discontinued operations | 0 | |||
Total current assets | 0 | 0 | ||
Intangibles and Other Assets: | ||||
Investments in subsidiaries | 7,451 | 11,300 | ||
Goodwill | 0 | 0 | ||
Brands | 0 | 0 | ||
Management and franchise contracts, net | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Deferred income tax assets | 0 | 2 | ||
Other | 20 | 12 | ||
Intangibles and other assets of discontinued operations | 0 | |||
Total intangibles and other assets | 7,471 | 11,314 | ||
Total assets | 7,471 | 11,314 | ||
Current Liabilities: | ||||
Accounts payable, accrued expenses and other | 20 | 26 | ||
Intercompany payables | 0 | 0 | ||
Current maturities of long-term debt | 32 | 26 | ||
Income taxes payable | 0 | 0 | ||
Current liabilities of discontinued operations | 0 | |||
Total current liabilities | 52 | 52 | ||
Long-term debt | 5,333 | 5,361 | ||
Deferred revenues | 0 | 0 | ||
Deferred income tax liabilities | 5 | 0 | ||
Liability for guest loyalty program | 0 | 0 | ||
Other | 0 | 12 | ||
Non-current liabilities of discontinued operations | 0 | |||
Total liabilities | 5,390 | 5,425 | ||
Equity: | ||||
Total Hilton stockholders' equity | 2,081 | 5,889 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 2,081 | 5,889 | ||
Total liabilities and equity | $ 7,471 | $ 11,314 |
Condensed Consolidating Guar120
Condensed Consolidating Guarantor Financial Information - Condensed Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Franchise fees | $ 1,382 | $ 1,154 | $ 1,087 | ||||||||
Base and other management fees | 336 | 242 | 230 | ||||||||
Incentive management fees | 222 | 142 | 138 | ||||||||
Owned and leased hotels | 1,450 | 1,452 | 1,596 | ||||||||
Other revenues | 105 | 82 | 71 | ||||||||
Total revenues excluding reimbursement revenue | 3,495 | 3,072 | 3,122 | ||||||||
Other revenues from managed and franchised properties | 5,645 | 4,310 | 4,011 | ||||||||
Total revenues | $ 2,279 | $ 2,354 | $ 2,346 | $ 2,161 | $ 1,839 | $ 1,867 | $ 1,950 | $ 1,726 | 9,140 | 7,382 | 7,133 |
Expenses | |||||||||||
Owned and leased hotels | 1,286 | 1,295 | 1,414 | ||||||||
Depreciation and amortization | 347 | 364 | 385 | ||||||||
General and administrative | 434 | 403 | 537 | ||||||||
Other expenses | 56 | 66 | 49 | ||||||||
Costs and expenses excluding cost of reimbursable expense | 2,123 | 2,128 | 2,385 | ||||||||
Other expenses from managed and franchised properties | 5,645 | 4,310 | 4,011 | ||||||||
Total expenses | 7,768 | 6,438 | 6,396 | ||||||||
Gain on sales of assets, net | 0 | 8 | 163 | ||||||||
Operating income | 348 | 382 | 365 | 277 | 244 | 265 | 273 | 170 | 1,372 | 952 | 900 |
Interest expense | (408) | (394) | (377) | ||||||||
Gain (loss) on foreign currency transactions | 3 | (16) | (41) | ||||||||
Loss on debt extinguishment | (60) | 0 | 0 | ||||||||
Other non-operating income, net | 23 | 14 | 51 | ||||||||
Income from continuing operations before income taxes | 930 | 556 | 533 | ||||||||
Income tax benefit (expense) | 334 | (564) | 348 | ||||||||
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | 1,264 | (8) | 881 | ||||||||
Equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations, net of taxes | (388) | 89 | 100 | 191 | 1,264 | (8) | 881 | ||||
Income from discontinued operations, net of taxes | 6 | 103 | 144 | 119 | 0 | 372 | 535 | ||||
Net income | 841 | 181 | 167 | 75 | (382) | 192 | 244 | 310 | 1,264 | 364 | 1,416 |
Net income attributable to noncontrolling interests | (5) | (16) | (12) | ||||||||
Net income (loss) attributable to Hilton stockholders | $ 840 | $ 179 | $ 166 | $ 74 | $ (387) | $ 187 | $ 239 | $ 309 | 1,259 | 348 | 1,404 |
Comprehensive income | 1,460 | 146 | 1,260 | ||||||||
Comprehensive income attributable to noncontrolling interests | (5) | (15) | (12) | ||||||||
Comprehensive income attributable to Hilton stockholders | 1,455 | 131 | 1,248 | ||||||||
Eliminations [member] | |||||||||||
Revenues | |||||||||||
Franchise fees | (17) | (10) | (12) | ||||||||
Base and other management fees | 0 | 0 | 0 | ||||||||
Incentive management fees | 0 | 0 | 0 | ||||||||
Owned and leased hotels | 0 | 0 | 0 | ||||||||
Other revenues | (7) | 0 | 0 | ||||||||
Total revenues excluding reimbursement revenue | (24) | (10) | (12) | ||||||||
Other revenues from managed and franchised properties | 0 | 0 | 0 | ||||||||
Total revenues | (24) | (10) | (12) | ||||||||
Expenses | |||||||||||
Owned and leased hotels | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | (6) | 0 | 0 | ||||||||
Other expenses | (17) | (10) | (12) | ||||||||
Costs and expenses excluding cost of reimbursable expense | (23) | (10) | (12) | ||||||||
Other expenses from managed and franchised properties | 0 | 0 | 0 | ||||||||
Total expenses | (23) | (10) | (12) | ||||||||
Gain on sales of assets, net | 0 | 0 | 0 | ||||||||
Operating income | (1) | 0 | 0 | ||||||||
Interest expense | 1 | 0 | 0 | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income, net | 0 | 0 | 0 | ||||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) from subsidiaries | (5,636) | 477 | (2,312) | ||||||||
Income (loss) from continuing operations, net of taxes | 477 | (2,312) | |||||||||
Income from discontinued operations, net of taxes | (1,528) | (1,509) | |||||||||
Net income | (5,636) | (1,051) | (3,821) | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Hilton stockholders | (5,636) | (1,051) | (3,821) | ||||||||
Comprehensive income | (5,832) | (834) | (3,665) | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | (5,832) | (834) | (3,665) | ||||||||
Parent [member] | |||||||||||
Revenues | |||||||||||
Franchise fees | 0 | 0 | 0 | ||||||||
Base and other management fees | 0 | 0 | 0 | ||||||||
Incentive management fees | 0 | 0 | 0 | ||||||||
Owned and leased hotels | 0 | 0 | 0 | ||||||||
Other revenues | 0 | 0 | 0 | ||||||||
Total revenues excluding reimbursement revenue | 0 | 0 | 0 | ||||||||
Other revenues from managed and franchised properties | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Expenses | |||||||||||
Owned and leased hotels | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Costs and expenses excluding cost of reimbursable expense | 0 | 0 | 0 | ||||||||
Other expenses from managed and franchised properties | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Gain on sales of assets, net | 0 | 0 | 0 | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income, net | 0 | 0 | 0 | ||||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | ||||||||
Income tax benefit (expense) | (3) | 193 | (7) | ||||||||
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | (3) | 193 | (7) | ||||||||
Equity in earnings (losses) from subsidiaries | 1,262 | (211) | 883 | ||||||||
Income (loss) from continuing operations, net of taxes | (18) | 876 | |||||||||
Income from discontinued operations, net of taxes | 366 | 528 | |||||||||
Net income | 1,259 | 348 | 1,404 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Hilton stockholders | 1,259 | 348 | 1,404 | ||||||||
Comprehensive income | 1,455 | 131 | 1,248 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 1,455 | 131 | 1,248 | ||||||||
Guarantor Subsidiaries [member] | |||||||||||
Revenues | |||||||||||
Franchise fees | 1,127 | 1,031 | 998 | ||||||||
Base and other management fees | 201 | 126 | 125 | ||||||||
Incentive management fees | 76 | 16 | 18 | ||||||||
Owned and leased hotels | 0 | 0 | 0 | ||||||||
Other revenues | 70 | 61 | 61 | ||||||||
Total revenues excluding reimbursement revenue | 1,474 | 1,234 | 1,202 | ||||||||
Other revenues from managed and franchised properties | 4,893 | 3,777 | 3,510 | ||||||||
Total revenues | 6,367 | 5,011 | 4,712 | ||||||||
Expenses | |||||||||||
Owned and leased hotels | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 247 | 272 | 288 | ||||||||
General and administrative | 0 | 204 | 424 | ||||||||
Other expenses | 29 | 31 | 37 | ||||||||
Costs and expenses excluding cost of reimbursable expense | 276 | 507 | 749 | ||||||||
Other expenses from managed and franchised properties | 4,893 | 3,777 | 3,510 | ||||||||
Total expenses | 5,169 | 4,284 | 4,259 | ||||||||
Gain on sales of assets, net | (1) | 0 | 0 | ||||||||
Operating income | 1,197 | 727 | 453 | ||||||||
Interest expense | 0 | (51) | (50) | ||||||||
Gain (loss) on foreign currency transactions | 124 | (150) | 77 | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income, net | 7 | 8 | 14 | ||||||||
Income from continuing operations before income taxes | 1,328 | 534 | 494 | ||||||||
Income tax benefit (expense) | 69 | (319) | 189 | ||||||||
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | 1,397 | 215 | 683 | ||||||||
Equity in earnings (losses) from subsidiaries | 1,262 | (211) | 373 | ||||||||
Income (loss) from continuing operations, net of taxes | 4 | 1,056 | |||||||||
Income from discontinued operations, net of taxes | 428 | 528 | |||||||||
Net income | 2,659 | 432 | 1,584 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Hilton stockholders | 2,659 | 432 | 1,584 | ||||||||
Comprehensive income | 2,662 | 361 | 1,546 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | 2,662 | 361 | 1,546 | ||||||||
Non-Guarantor Subsidiaries [member] | |||||||||||
Revenues | |||||||||||
Franchise fees | 129 | 112 | 101 | ||||||||
Base and other management fees | 134 | 116 | 105 | ||||||||
Incentive management fees | 146 | 126 | 120 | ||||||||
Owned and leased hotels | 1,450 | 1,452 | 1,596 | ||||||||
Other revenues | 11 | 11 | 10 | ||||||||
Total revenues excluding reimbursement revenue | 1,870 | 1,817 | 1,932 | ||||||||
Other revenues from managed and franchised properties | 598 | 501 | 501 | ||||||||
Total revenues | 2,468 | 2,318 | 2,433 | ||||||||
Expenses | |||||||||||
Owned and leased hotels | 1,286 | 1,295 | 1,414 | ||||||||
Depreciation and amortization | 95 | 91 | 97 | ||||||||
General and administrative | 113 | 109 | 113 | ||||||||
Other expenses | 27 | 44 | 24 | ||||||||
Costs and expenses excluding cost of reimbursable expense | 1,521 | 1,539 | 1,648 | ||||||||
Other expenses from managed and franchised properties | 598 | 501 | 501 | ||||||||
Total expenses | 2,119 | 2,040 | 2,149 | ||||||||
Gain on sales of assets, net | 1 | 8 | 163 | ||||||||
Operating income | 350 | 286 | 447 | ||||||||
Interest expense | (59) | (52) | (46) | ||||||||
Gain (loss) on foreign currency transactions | (131) | 123 | (118) | ||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income, net | 15 | 4 | 37 | ||||||||
Income from continuing operations before income taxes | 175 | 361 | 320 | ||||||||
Income tax benefit (expense) | 98 | (570) | 58 | ||||||||
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | 273 | (209) | 378 | ||||||||
Equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations, net of taxes | (209) | 378 | |||||||||
Income from discontinued operations, net of taxes | 374 | 460 | |||||||||
Net income | 273 | 165 | 838 | ||||||||
Net income attributable to noncontrolling interests | (5) | (16) | (12) | ||||||||
Net income (loss) attributable to Hilton stockholders | 268 | 149 | 826 | ||||||||
Comprehensive income | 436 | 15 | 727 | ||||||||
Comprehensive income attributable to noncontrolling interests | (5) | (15) | (12) | ||||||||
Comprehensive income attributable to Hilton stockholders | 431 | 0 | 715 | ||||||||
HOC [member] | |||||||||||
Revenues | |||||||||||
Franchise fees | 143 | 21 | |||||||||
Base and other management fees | 1 | 0 | |||||||||
Incentive management fees | 0 | 0 | |||||||||
Owned and leased hotels | 0 | 0 | |||||||||
Other revenues | 31 | 10 | |||||||||
Total revenues excluding reimbursement revenue | 175 | 31 | |||||||||
Other revenues from managed and franchised properties | 154 | 32 | |||||||||
Total revenues | 329 | 63 | |||||||||
Expenses | |||||||||||
Owned and leased hotels | 0 | 0 | |||||||||
Depreciation and amortization | 5 | 1 | |||||||||
General and administrative | 327 | 90 | |||||||||
Other expenses | 17 | 1 | |||||||||
Costs and expenses excluding cost of reimbursable expense | 349 | 92 | |||||||||
Other expenses from managed and franchised properties | 154 | 32 | |||||||||
Total expenses | 503 | 124 | |||||||||
Gain on sales of assets, net | 0 | 0 | |||||||||
Operating income | (174) | (61) | |||||||||
Interest expense | (106) | (30) | |||||||||
Gain (loss) on foreign currency transactions | 10 | 11 | |||||||||
Loss on debt extinguishment | 0 | ||||||||||
Other non-operating income, net | 4 | 1 | |||||||||
Income from continuing operations before income taxes | (266) | (79) | |||||||||
Income tax benefit (expense) | 48 | 32 | |||||||||
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | (218) | (47) | |||||||||
Equity in earnings (losses) from subsidiaries | 1,665 | (4) | |||||||||
Income (loss) from continuing operations, net of taxes | (51) | ||||||||||
Income from discontinued operations, net of taxes | 366 | ||||||||||
Net income | 1,447 | 315 | |||||||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income (loss) attributable to Hilton stockholders | 1,447 | 315 | |||||||||
Comprehensive income | 1,463 | 320 | |||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | |||||||||
Comprehensive income attributable to Hilton stockholders | 1,463 | 320 | |||||||||
HWF Issuers [member] | |||||||||||
Revenues | |||||||||||
Franchise fees | 0 | 0 | 0 | ||||||||
Base and other management fees | 0 | 0 | 0 | ||||||||
Incentive management fees | 0 | 0 | 0 | ||||||||
Owned and leased hotels | 0 | 0 | 0 | ||||||||
Other revenues | 0 | 0 | 0 | ||||||||
Total revenues excluding reimbursement revenue | 0 | 0 | 0 | ||||||||
Other revenues from managed and franchised properties | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Expenses | |||||||||||
Owned and leased hotels | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Costs and expenses excluding cost of reimbursable expense | 0 | 0 | 0 | ||||||||
Other expenses from managed and franchised properties | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Gain on sales of assets, net | 0 | 0 | 0 | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Interest expense | (244) | (261) | (281) | ||||||||
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | ||||||||
Loss on debt extinguishment | (60) | ||||||||||
Other non-operating income, net | (3) | 1 | 0 | ||||||||
Income from continuing operations before income taxes | (307) | (260) | (281) | ||||||||
Income tax benefit (expense) | 122 | 100 | 108 | ||||||||
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | (185) | (160) | (173) | ||||||||
Equity in earnings (losses) from subsidiaries | 1,447 | (51) | 1,056 | ||||||||
Income (loss) from continuing operations, net of taxes | (211) | 883 | |||||||||
Income from discontinued operations, net of taxes | 366 | 528 | |||||||||
Net income | 1,262 | 155 | 1,411 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Hilton stockholders | 1,262 | 155 | 1,411 | ||||||||
Comprehensive income | 1,276 | 153 | 1,404 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Hilton stockholders | $ 1,276 | $ 153 | $ 1,404 |
Condensed Consolidating Guar121
Condensed Consolidating Guarantor Financial Information - Condensed Cash Flow Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | |||
Net cash provided by (used in) operating activities | $ 924 | $ 1,365 | $ 1,446 |
Investing Activities: | |||
Capital expenditures for property and equipment | (58) | (317) | (310) |
Acquisitions, net of cash acquired | 0 | 0 | (1,402) |
Issuance of intercompany receivables | 0 | ||
Payments received on intercompany receivables | 0 | ||
Proceeds from asset dispositions | 0 | 11 | 2,205 |
Contract acquisition costs | (75) | (55) | (37) |
Capitalized software costs | (75) | (81) | (62) |
Other | (14) | (36) | 20 |
Net cash provided by (used in) investing activities | (222) | (478) | 414 |
Financing Activities: | |||
Borrowings | 1,824 | 4,715 | 48 |
Repayment of debt | (1,860) | (4,359) | (1,624) |
Debt issuance costs and redemption premium | (69) | (76) | 0 |
Intercompany borrowings | 0 | ||
Repayments of intercompany borrowings | 0 | 0 | |
Intercompany transfers | 0 | 0 | 0 |
Dividends paid | (195) | (277) | (138) |
Intercompany dividends | 0 | 0 | 0 |
Cash transferred in spin-offs of Park and HGV | 501 | 0 | 0 |
Repurchases of common stock | (891) | 0 | 0 |
Distributions to noncontrolling interests | (1) | (32) | (8) |
Tax withholdings on share-based compensation | (31) | (15) | (31) |
Net cash provided by (used in) financing activities | (1,724) | (44) | (1,753) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 8 | (15) | (19) |
Net increase (decrease) in cash, restricted cash and cash equivalents | (1,014) | 828 | 88 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,183 | 633 | 628 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 | 140 |
Cash, restricted cash and cash equivalents, beginning of period | 1,684 | 856 | 768 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 670 | 1,183 | 633 |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 501 | 223 |
Cash, restricted cash and cash equivalents, end of period | 670 | 1,684 | 856 |
Eliminations [member] | |||
Operating Activities: | |||
Net cash provided by (used in) operating activities | (170) | (605) | (436) |
Investing Activities: | |||
Capital expenditures for property and equipment | 0 | 0 | 0 |
Acquisitions, net of cash acquired | 0 | ||
Issuance of intercompany receivables | 234 | ||
Payments received on intercompany receivables | (192) | ||
Proceeds from asset dispositions | 0 | 0 | |
Contract acquisition costs | 0 | 0 | 0 |
Capitalized software costs | 0 | 0 | 0 |
Other | (3) | 0 | 0 |
Net cash provided by (used in) investing activities | (3) | 42 | 0 |
Financing Activities: | |||
Borrowings | 0 | 0 | 0 |
Repayment of debt | 0 | 0 | 0 |
Debt issuance costs and redemption premium | 0 | 0 | |
Intercompany borrowings | (234) | ||
Repayments of intercompany borrowings | 3 | 192 | |
Intercompany transfers | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Intercompany dividends | 170 | 605 | 436 |
Cash transferred in spin-offs of Park and HGV | 0 | ||
Repurchases of common stock | 0 | ||
Distributions to noncontrolling interests | 0 | 0 | 0 |
Tax withholdings on share-based compensation | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 173 | 563 | 436 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 | 0 |
Parent [member] | |||
Operating Activities: | |||
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Investing Activities: | |||
Capital expenditures for property and equipment | 0 | 0 | 0 |
Acquisitions, net of cash acquired | 0 | ||
Issuance of intercompany receivables | 0 | ||
Payments received on intercompany receivables | 0 | ||
Proceeds from asset dispositions | 0 | 0 | |
Contract acquisition costs | 0 | 0 | 0 |
Capitalized software costs | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Financing Activities: | |||
Borrowings | 0 | 0 | 0 |
Repayment of debt | 0 | 0 | 0 |
Debt issuance costs and redemption premium | 0 | 0 | |
Intercompany borrowings | 0 | ||
Repayments of intercompany borrowings | 0 | 0 | |
Intercompany transfers | 1,086 | 277 | 138 |
Dividends paid | (195) | (277) | (138) |
Intercompany dividends | 0 | 0 | 0 |
Cash transferred in spin-offs of Park and HGV | 0 | ||
Repurchases of common stock | (891) | ||
Distributions to noncontrolling interests | 0 | 0 | 0 |
Tax withholdings on share-based compensation | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 | 0 |
Guarantor Subsidiaries [member] | |||
Operating Activities: | |||
Net cash provided by (used in) operating activities | 988 | 912 | 975 |
Investing Activities: | |||
Capital expenditures for property and equipment | (12) | (9) | (11) |
Acquisitions, net of cash acquired | 0 | ||
Issuance of intercompany receivables | (192) | ||
Payments received on intercompany receivables | 192 | ||
Proceeds from asset dispositions | 0 | 0 | |
Contract acquisition costs | (38) | (46) | (23) |
Capitalized software costs | (75) | (73) | (57) |
Other | (1) | (35) | 13 |
Net cash provided by (used in) investing activities | (126) | (163) | (78) |
Financing Activities: | |||
Borrowings | 0 | 0 | 0 |
Repayment of debt | 0 | 0 | 0 |
Debt issuance costs and redemption premium | 0 | 0 | |
Intercompany borrowings | 42 | ||
Repayments of intercompany borrowings | 0 | 0 | |
Intercompany transfers | (865) | (854) | (693) |
Dividends paid | 0 | 0 | 0 |
Intercompany dividends | 0 | 0 | (184) |
Cash transferred in spin-offs of Park and HGV | 0 | ||
Repurchases of common stock | 0 | ||
Distributions to noncontrolling interests | 0 | 0 | 0 |
Tax withholdings on share-based compensation | 0 | (15) | (31) |
Net cash provided by (used in) financing activities | (865) | (827) | (908) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | (3) | (78) | (11) |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 31 | 109 | 119 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | 1 |
Cash, restricted cash and cash equivalents, beginning of period | 31 | 109 | 120 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 31 | 109 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | |
Cash, restricted cash and cash equivalents, end of period | 28 | 31 | 109 |
Non-Guarantor Subsidiaries [member] | |||
Operating Activities: | |||
Net cash provided by (used in) operating activities | 322 | 1,095 | 723 |
Investing Activities: | |||
Capital expenditures for property and equipment | (34) | (308) | (299) |
Acquisitions, net of cash acquired | (1,402) | ||
Issuance of intercompany receivables | (42) | ||
Payments received on intercompany receivables | 0 | ||
Proceeds from asset dispositions | 11 | 2,205 | |
Contract acquisition costs | (37) | (9) | (14) |
Capitalized software costs | 0 | (8) | (5) |
Other | 3 | 5 | 7 |
Net cash provided by (used in) investing activities | (68) | (351) | 492 |
Financing Activities: | |||
Borrowings | 2 | 3,715 | 48 |
Repayment of debt | (8) | (4,093) | (849) |
Debt issuance costs and redemption premium | 0 | (39) | |
Intercompany borrowings | 192 | ||
Repayments of intercompany borrowings | 0 | (192) | |
Intercompany transfers | (568) | 1,141 | (36) |
Dividends paid | 0 | 0 | 0 |
Intercompany dividends | (170) | (605) | (252) |
Cash transferred in spin-offs of Park and HGV | 501 | ||
Repurchases of common stock | 0 | ||
Distributions to noncontrolling interests | (1) | (32) | (8) |
Tax withholdings on share-based compensation | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (1,246) | 87 | (1,097) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 8 | (15) | (19) |
Net increase (decrease) in cash, restricted cash and cash equivalents | (984) | 816 | 99 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,062 | 524 | 509 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 | 139 |
Cash, restricted cash and cash equivalents, beginning of period | 1,563 | 747 | 648 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 1,062 | 524 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 501 | 223 | |
Cash, restricted cash and cash equivalents, end of period | 579 | 1,563 | 747 |
HWF Issuers [member] | |||
Operating Activities: | |||
Net cash provided by (used in) operating activities | (113) | (37) | 184 |
Investing Activities: | |||
Capital expenditures for property and equipment | 0 | 0 | 0 |
Acquisitions, net of cash acquired | 0 | ||
Issuance of intercompany receivables | 0 | ||
Payments received on intercompany receivables | 0 | ||
Proceeds from asset dispositions | 0 | 0 | |
Contract acquisition costs | 0 | 0 | 0 |
Capitalized software costs | 0 | 0 | 0 |
Other | (13) | (6) | 0 |
Net cash provided by (used in) investing activities | (13) | (6) | 0 |
Financing Activities: | |||
Borrowings | 1,822 | 0 | 0 |
Repayment of debt | (1,852) | (266) | (775) |
Debt issuance costs and redemption premium | (69) | (17) | |
Intercompany borrowings | 0 | ||
Repayments of intercompany borrowings | 0 | 0 | |
Intercompany transfers | 225 | 326 | 591 |
Dividends paid | 0 | 0 | 0 |
Intercompany dividends | 0 | 0 | 0 |
Cash transferred in spin-offs of Park and HGV | 0 | ||
Repurchases of common stock | 0 | ||
Distributions to noncontrolling interests | 0 | 0 | 0 |
Tax withholdings on share-based compensation | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 126 | 43 | (184) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 | 0 |
HOC [member] | |||
Operating Activities: | |||
Net cash provided by (used in) operating activities | (103) | 0 | |
Investing Activities: | |||
Capital expenditures for property and equipment | (12) | 0 | |
Issuance of intercompany receivables | 0 | ||
Payments received on intercompany receivables | 0 | ||
Proceeds from asset dispositions | 0 | ||
Contract acquisition costs | 0 | 0 | |
Capitalized software costs | 0 | 0 | |
Other | 0 | 0 | |
Net cash provided by (used in) investing activities | (12) | 0 | |
Financing Activities: | |||
Borrowings | 0 | 1,000 | |
Repayment of debt | 0 | 0 | |
Debt issuance costs and redemption premium | 0 | (20) | |
Intercompany borrowings | 0 | ||
Repayments of intercompany borrowings | (3) | 0 | |
Intercompany transfers | 122 | (890) | |
Dividends paid | 0 | 0 | |
Intercompany dividends | 0 | 0 | |
Cash transferred in spin-offs of Park and HGV | 0 | ||
Repurchases of common stock | 0 | ||
Distributions to noncontrolling interests | 0 | 0 | |
Tax withholdings on share-based compensation | (31) | 0 | |
Net cash provided by (used in) financing activities | 88 | 90 | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 | |
Net increase (decrease) in cash, restricted cash and cash equivalents | (27) | 90 | |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 90 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 | |
Cash, restricted cash and cash equivalents, beginning of period | 90 | 0 | |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 90 | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 0 | |
Cash, restricted cash and cash equivalents, end of period | $ 63 | $ 90 | $ 0 |
Condensed Consolidating Guar122
Condensed Consolidating Guarantor Financial Information - Additional Information (Details) | Dec. 31, 2017Rate |
HWF Issuers [member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
Hilton Worldwide Parent [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
HOC [member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
Domestic Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
Selected Quarterly Financial123
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||||
Quarterly Financial Information Disclosure (unaudited) [Abstract] | ||||||||||||||||||||||
Revenues | $ 2,279 | $ 2,354 | $ 2,346 | $ 2,161 | $ 1,839 | $ 1,867 | $ 1,950 | $ 1,726 | $ 9,140 | $ 7,382 | $ 7,133 | |||||||||||
Operating income | 348 | 382 | 365 | 277 | 244 | 265 | 273 | 170 | 1,372 | 952 | 900 | |||||||||||
Income (loss) from continuing operations, net of taxes | (388) | 89 | 100 | 191 | 1,264 | (8) | 881 | |||||||||||||||
Income from discontinued operations, net of taxes | 6 | 103 | 144 | 119 | 0 | 372 | 535 | |||||||||||||||
Net income (loss) | 841 | 181 | 167 | 75 | (382) | 192 | 244 | 310 | 1,264 | 364 | 1,416 | |||||||||||
Net income (loss) attributable to Hilton stockholders | $ 840 | $ 179 | $ 166 | $ 74 | $ (387) | $ 187 | $ 239 | $ 309 | $ 1,259 | $ 348 | $ 1,404 | |||||||||||
Net income (loss) from continuing operations per share | $ (1.20) | [1] | $ 0.27 | [1] | $ 0.29 | [1] | $ 0.58 | [1] | $ 3.88 | $ (0.05) | [1],[2] | $ 2.67 | [2] | |||||||||
Net income from discontinued operations per share | 0.02 | [1] | 0.30 | [1] | 0.44 | [1] | 0.36 | [1] | 0 | 1.11 | [1],[2] | 1.60 | [2] | |||||||||
Net income per share, basic | $ 2.63 | [1] | $ 0.56 | [1] | $ 0.51 | [1] | $ 0.22 | [1] | (1.18) | 0.57 | 0.73 | 0.94 | 3.88 | [1] | 1.06 | [2] | 4.27 | [2] | ||||
Net income (loss) from continuing operations per share | (1.20) | [1] | 0.27 | [1] | 0.29 | [1] | 0.58 | [1] | 3.85 | (0.05) | [1],[2] | 2.66 | [2] | |||||||||
Net income from discontinued operations per share | 0.02 | 0.30 | 0.43 | 0.36 | 0 | 1.11 | [2] | 1.60 | [2] | |||||||||||||
Net income per share, diluted | $ 2.61 | [1] | $ 0.55 | [1] | $ 0.51 | [1] | $ 0.22 | [1] | $ (1.18) | [1] | $ 0.57 | [1] | $ 0.72 | [1] | $ 0.94 | [1] | $ 3.85 | [1] | $ 1.06 | [1],[2] | $ 4.26 | [2] |
[1] | The sum of the earnings (loss) per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. | |||||||||||||||||||||
[2] | Weighted average shares outstanding used in the computation of basic and diluted earnings (loss) per share and cash dividends declared per share for the years ended December 31, 2016 and 2015 was adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization" for additional information. |