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HLT Hilton Worldwide

Document and Entity Information

Document and Entity Information Document - shares3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2020Jul. 31, 2020
Entity Information [Line Items]
Document Type10-Q
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateJun. 30,
2020
Entity File Number001-36243
Entity Registrant NameHilton Worldwide Holdings Inc.
Entity incorporation, sate or country codeDE
Entity Tax Identification Number27-4384691
Entity Address, Address Line One7930 Jones Branch Drive
Entity Address, Address Line TwoSuite 1100
Entity Address, City or TownMcLean
Entity Address, State or ProvinceVA
Entity Address, Postal Zip Code22102
City Area Code703
Local Phone Number883-1000
Title of 12(b) SecurityCommon Stock, $0.01 par value per share
Trading SymbolHLT
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Small Businessfalse
Entity Filer CategoryLarge Accelerated Filer
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity common stock shares outstanding277,309,352
Entity Central Index Key0001585689
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2020
Document Fiscal Period FocusQ2
Amendment Flagfalse
Entity Shell Companyfalse

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in MillionsJun. 30, 2020Dec. 31, 2019
Current Assets:
Cash and cash equivalents $ 3,503 $ 538
Restricted cash and cash equivalents72 92
Accounts receivable, net of allowance for credit losses827 1,261
Prepaid expenses91 130
Other84 72
Total current assets4,577 2,093
Intangibles and Other Assets:
Goodwill5,147 5,159
Brands4,869 4,877
Management and franchise contracts, net688 780
Other intangible assets, net328 421
Operating lease right-of-use assets740 867
Property and equipment, net355 380
Deferred income tax assets118 100
Other304 280
Total intangibles and other assets12,549 12,864
Total assets17,126 14,957
Current Liabilities:
Accounts payable, accrued expenses and other1,372 1,703
Current maturities of long-term debt[1]45 37
Total current liabilities2,306 2,871
Long-term debt10,437 7,956
Operating lease liabilities926 1,037
Deferred income tax liabilities669 795
Other1,008 883
Total liabilities18,417 15,429
Commitments and contingencies
Equity (Deficit):
Preferred stock0 0
Common stock3 3
Treasury stock, at cost(4,457)(4,169)
Additional paid-in capital10,465 10,489
Accumulated deficit(6,429)(5,965)
Accumulated other comprehensive loss(881)(840)
Total Hilton stockholders' deficit(1,299)(482)
Noncontrolling interests8 10
Total deficit(1,291)(472)
Total liabilities and equity (deficit)17,126 14,957
Variable Interest Entity, Primary Beneficiary [Member]
Current Assets:
Total current assets54 100
Intangibles and Other Assets:
Total intangibles and other assets194 179
Current Liabilities:
Total current liabilities47 64
Total liabilities239 260
Deferred revenues [member]
Current Liabilities:
Liabilities from contracts with customers, current242 332
Liabilities from contracts with customers1,445 827
Guest Loyalty Program [member]
Current Liabilities:
Liabilities from contracts with customers, current647 799
Liabilities from contracts with customers $ 1,626 $ 1,060
[1]Represents current maturities of finance lease liabilities.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in MillionsJun. 30, 2020Dec. 31, 2019
Allowance for credit losses $ 70 $ 44
Preferred stock, par value (per share) $ 0.01 $ 0.01
Preferred stock, authorized shares3,000,000,000 3,000,000,000
Preferred stock, issued shares0 0
Preferred stock, outstanding shares0 0
Common stock, par value (per share) $ 0.01 $ 0.01
Common stock, authorized shares10,000,000,000 10,000,000,000
Common stock, issued shares330,229,410 333,159,770
Common stock, outstanding shares277,309,060 278,985,125
Treasury stock, shares52,920,350 54,174,645

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations Statement - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Revenues $ 564 $ 2,484 $ 2,484 $ 4,688
Depreciation and amortization88 86 179 170
General and administrative63 113 123 220
Reorganization costs38 0 38 0
Impairment losses15 0 127 0
Other expenses13 15 27 35
Total expenses excluding reimbursable expenses312 548 828 1,057
Total expenses866 2,006 2,718 3,898
Operating income (loss)(302)478 (234)790
Interest expense(106)(101)(200)(199)
Loss on foreign currency transactions(13)(3)(4)(3)
Other non-operating loss, net(23)(12)(23)(8)
Income (loss) before income taxes(444)362 (461)580
Income tax benefit (expense)12 (101)47 (160)
Net income (loss)(432)261 (414)420
Net loss (income) attributable to noncontrolling interests2 (1)2 (2)
Net income (loss) attributable to Hilton stockholders $ (430) $ 260 $ (412) $ 418
Earnings (Loss) Per Share, Basic [Abstract]
Basic EPS $ (1.55) $ 0.90 $ (1.49) $ 1.43
Earnings (Loss) Per Share, Diluted [Abstract]
Diluted EPS(1.55)0.89(1.48)1.42
Cash dividends declared per share $ 0 $ 0.15 $ 0.15 $ 0.30
Franchise and licensing fees [member]
Revenues $ 132 $ 444 $ 471 $ 826
Base and other management fees [member]
Revenues8 89 68 169
Incentive management fees [member]
Revenues(5)58 18 113
Owned and leased hotels [member]
Revenues31 387 241 699
Expenses95 334 334 632
Other revenues
Revenues10 26 33 52
Total revenues excluding reimbursable revenues [member]
Revenues176 1,004 831 1,859
Other revenues from managed and franchised properties [member]
Revenues388 1,480 1,653 2,829
Other expenses from managed and franchised properties [member]
Expenses $ 554 $ 1,458 $ 1,890 $ 2,841

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss) $ (432) $ 261 $ (414) $ 420
Other comprehensive income (loss), net of tax benefit (expense)
Currency translation adjustment20 15 (4)12
Pension liability adjustment(2)(2)(3)(4)
Cash flow hedge adjustment(4)(25)(40)(40)
Total other comprehensive income (loss)18 (8)(41)(24)
Comprehensive income (loss)(414)253 (455)396
Comprehensive loss (income) attributable to noncontrolling interests2 (1)2 (2)
Comprehensive income (loss) attributable to Hilton stockholders(412)252 (453)394
Currency translation adjustment, tax benefit1 9 9 1
Pension liability adjustment, tax expense(1)0 (1)(1)
Cash flow hedge adjustment, tax benefit $ 1 $ 8 $ 14 $ 13

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Operating Activities:
Net income (loss) $ (414) $ 420
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of contract acquisition costs15 14
Depreciation and amortization179 170
Impairment losses127 0
Loss on foreign currency transactions4 3
Share-based compensation12 81
Deferred income taxes(118)1
Contract acquisition costs(23)(43)
Change in liabilities from contracts with customers[1],[2]725
Working capital changes and other223 (45)
Net cash provided by operating activities946 650
Investing Activities:
Capital expenditures for property and equipment(30)(46)
Capitalized software costs(33)(44)
Other(13)(5)
Net cash used in investing activities(76)(95)
Financing Activities:
Borrowings2,690 1,795
Repayment of debt(213)(1,317)
Debt issuance costs14 27
Dividends paid(42)(87)
Repurchases of common stock(296)(653)
Share-based compensation tax withholdings and other(43)(34)
Net cash provided by (used in) financing activities2,082 (323)
Effect of exchange rate changes on cash, restricted cash and cash equivalents(7)2
Net increase in cash, restricted cash and cash equivalents2,945 234
Cash, restricted cash and cash equivalents, beginning of period630 484
Cash, restricted cash and cash equivalents, end of period3,575 718
Supplemental Disclosures:
Interest200 190
Income taxes, net of refunds53 157
Guest Loyalty Program [member]
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Change in liabilities from contracts with customers413 106
Deferred revenues [member]
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Change in liabilities from contracts with customers $ 528 $ (57)
[1]Includes $636 million recorded as a result of the Hilton Honors points pre-sale to American Express; see below for additional information.
[2]Primarily related to Hilton Honors, our guest loyalty program, which included revenue recognized of $51 million.

Organization and Basis of Prese

Organization and Basis of Presentation6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of PresentationOrganization and Basis of Presentation Organization Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts, and licensing its brands and intellectual property ("IP"). As of June 30, 2020, we managed, franchised, owned or leased 6,215 hotels and resorts, including timeshare properties, totaling 983,465 rooms in 118 countries and territories. Basis of Presentation The accompanying condensed consolidated financial statements for the three and six months ended June 30, 2020 and 2019 have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe the disclosures made are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Additionally, interim results are not necessarily indicative of full year performance. In particular, the novel coronavirus ("COVID-19") pandemic had a material adverse impact on our results for the three and six months ended June 30, 2020, and we expect it to continue to have a material adverse impact on our results for an indeterminate length of time. Management is making estimates and judgments in light of these circumstances, and this interim period, as well as upcoming periods, are unlikely to be comparable to past performance or indicative of future performance. In our opinion, the accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions have been eliminated in consolidation. Reorganization We recognized $38 million of reorganization costs in our condensed consolidated statements of operations during the three and six months ended June 30, 2020 related to organizational changes, including reductions in our workforce and the associated costs, as part of our efforts to reduce future costs for our corporate operations in response to the COVID-19 pandemic. As of June 30, 2020, $35 million of such reorganization costs were included in accounts payable, accrued expenses and other in our condensed consolidated balance sheet.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]
Recently Issued Accounting PronouncementsRecently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2016-13 ("ASU 2016-13"), Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which significantly changes how entities account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. On January 1, 2020, we adopted ASU 2016-13 and subsequent ASUs issued to clarify its application, on a prospective basis, and recognized a $10 million cumulative adjustment, net of taxes, in accumulated deficit. By applying ASU 2016-13 at the adoption date, the presentation of credit losses for periods prior to January 1, 2020 remains unchanged and in accordance with Receivables (Topic 310 ). As a result of the adoption, we consider forecasted business conditions, in addition to current business conditions and historical collection activity, in calculating our allowance for credit losses on our financial instruments. The cumulative adjustment to accumulated deficit that we recognized upon adoption of this ASU did not include the impact of the COVID-19 crisis as a forecasted business condition. However, during the six months ended June 30, 2020, we revised our expected future credit loss rates from those used at adoption, primarily for our accounts receivable balances, in light of business conditions in the current environment. In particular, we considered the expected impact on our hotel owners' and customers' ability to ultimately settle receivables that are or will be due to us.

Revenues from Contracts with Cu

Revenues from Contracts with Customers6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenues from Contracts with CustomersRevenues from Contracts with Customers Contract Liabilities The following table summarizes the activity of our contract liabilities, which are classified as a component of current and long-term deferred revenues, during the six months ended June 30, 2020: (in millions) Balance as of December 31, 2019 $ 1,041 Cash received in advance and not recognized as revenue (1)(2) 725 Revenue recognized (1)(3) (110) Other (4) (22) Balance as of June 30, 2020 $ 1,634 ____________ (1) Primarily related to Hilton Honors, our guest loyalty program, which included revenue recognized of $51 million. (2) Includes $636 million recorded as a result of the Hilton Honors points pre-sale to American Express; see below for additional information. (3) During the three months ended June 30, 2020 and 2019, revenue recognized was $56 million and $78 million, respectively, and during the six months ended June 30, 2019 was $135 million. (4) Represents changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. In April 2020, we pre-sold Hilton Honors points to American Express for $1.0 billion in cash ("Honors Points Pre-Sale"), of which $636 million was recorded in deferred revenues and the remainder was recorded in liability for guest loyalty program in our condensed consolidated balance sheet. American Express and their respective designees may use the points in connection with Hilton Honors co-branded credit cards and for promotions, rewards and incentive programs or certain other activities as they may establish or engage in from time to time. We recognize revenue from licensing fees related to these Hilton Honors points when American Express issues the points to customers and other revenues from managed and franchised properties when customers redeem the Hilton Honors points. Performance Obligations As of June 30, 2020, we had deferred revenues for unsatisfied performance obligations consisting of: (i) $422 million related to Hilton Honors that will be recognized as revenues when the points are redeemed, which we estimate will occur over approximately the next two to three years; (ii) $561 million related to the Honors Points Pre-Sale of which a portion will be recognized as revenue when points are awarded, with the remaining portion recognized as revenues when the points are redeemed; and (iii) $651 million related to application, initiation and licensing fees that is expected to be recognized as revenues over the terms of the related contracts. Incentive Management Fees We update our estimates of the expected achievement of incentive management fee targets each reporting period and constrain the recognition of revenue to the extent that we do not expect to achieve the thresholds as specified in our management contracts with incentive fees. Due to revisions of the initial estimates, we reversed certain incentive fees that were recognized in the previous period during the three months ended June 30, 2020, due to the expectation that stated return thresholds to the hotel owners would no longer be met.

Consolidated Variable Interest

Consolidated Variable Interest Entities6 Months Ended
Jun. 30, 2020
Consolidated Variable Interest Entities Disclosure [Abstract]
Consolidated Variable Interest EntitiesConsolidated Variable Interest Entities As of June 30, 2020 and December 31, 2019, we consolidated two variable interest entities ("VIEs") that lease hotel properties. We consolidated these VIEs since we are the primary beneficiary, having 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 condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following: June 30, December 31, 2020 2019 (in millions) Cash and cash equivalents $ 41 $ 81 Property and equipment, net 78 69 Deferred income tax assets 53 48 Other non-current assets 63 61 Accounts payable, accrued expenses and other 27 49 Long-term debt (1) 195 194 Other long-term liabilities 17 17 ____________ (1) Includes finance lease liabilities of $177 million as of June 30, 2020 and December 31, 2019. In June 2020, one of our consolidated VIEs entered into a revolving credit facility to provide financial flexibility in response to business disruption during the COVID-19 pandemic. The revolving credit facility has a borrowing capacity of 2.75 billion Japanese yen (equivalent to $26 million as of June 30, 2020) and matures in June 2021. As of June 30, 2020, no amounts have been drawn under the revolving credit facility. We did not provide any financial or other support to any consolidated VIEs that we were not previously contractually required to provide during the six months ended June 30, 2020 and 2019, and we are not aware of any future obligations to do so.

Finite-Lived Intangible Assets

Finite-Lived Intangible Assets6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible AssetsFinite-Lived Intangible Assets Finite-lived intangible assets were as follows: June 30, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,158 $ (2,051) $ 107 Contract acquisition costs (2) 604 (133) 471 Development commissions and other 131 (21) 110 $ 2,893 $ (2,205) $ 688 Other intangible assets: Leases (1)(3) $ 144 $ (85) $ 59 Capitalized software costs 650 (451) 199 Hilton Honors (1) 337 (267) 70 $ 1,131 $ (803) $ 328 December 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,163 $ (1,974) $ 189 Contract acquisition costs 604 (121) 483 Development commissions and other 127 (19) 108 $ 2,894 $ (2,114) $ 780 Other intangible assets: Leases (1) $ 290 $ (176) $ 114 Capitalized software costs 625 (399) 226 Hilton Honors (1) 338 (257) 81 Other (1) 34 (34) — $ 1,287 $ (866) $ 421 ____________ (1) Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (the "Merger"). (2) We recognized impairment losses during the three and six months ended June 30, 2020 that reduced the gross and net carrying values of contract acquisition costs by $9 million. (3) We recognized impairment losses during the six months ended June 30, 2020 that reduced the gross carrying value of our leases intangible asset by $138 million, the accumulated amortization by $92 million and the net carrying value by $46 million. See Note 7: "Fair Value Measurements" for additional information. Amortization of our finite-lived intangible assets was as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Recognized in depreciation and amortization expense (1) $ 74 $ 71 $ 151 $ 141 Recognized as a reduction of franchise and licensing fees and base and other management fees 7 7 15 14 ____________ (1) Includes amortization expense of $47 million and $51 million for the three months ended June 30, 2020 and 2019, respectively, and $96 million and $102 million for the six months ended June 30, 2020 and 2019, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger. We estimate future amortization of our finite-lived intangible assets as of June 30, 2020 to be as follows: Recognized in Depreciation and Amortization Expense Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees Year (in millions) 2020 (remaining) $ 120 $ 15 2021 129 29 2022 98 26 2023 63 26 2024 13 25 Thereafter 122 350 $ 545 $ 471

Debt

Debt6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]
DebtDebt Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of June 30, 2020, were as follows: June 30, December 31, 2020 2019 (in millions) Senior secured revolving credit facility with a weighted average rate of 1.43%, due 2024 $ 1,690 $ 195 Senior secured term loan facility with a rate of 1.93%, due 2026 2,619 2,619 Senior notes with a rate of 4.250%, due 2024 1,000 1,000 Senior notes with a rate of 4.625%, due 2025 900 900 Senior notes with a rate of 5.375%, due 2025 500 — Senior notes with a rate of 5.125%, due 2026 1,500 1,500 Senior notes with a rate of 4.875%, due 2027 600 600 Senior notes with a rate of 5.750%, due 2028 500 — Senior notes with a rate of 4.875%, due 2030 1,000 1,000 Finance lease liabilities with a weighted average rate of 5.82%, due 2020 to 2030 245 245 Other debt with a rate of 3.08%, due 2026 18 17 10,572 8,076 Less: unamortized deferred financing costs and discount (90) (83) Less: current maturities of long-term debt (1) (45) (37) $ 10,437 $ 7,956 ____________ (1) Represents current maturities of finance lease liabilities. Our senior secured credit facilities consist of a $1.75 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 facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries. In March 2020, as a precautionary measure in order to increase our cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 pandemic, we fully drew down on our Revolving Credit Facility. As of June 30, 2020, we also had $60 million of letters of credit outstanding under the Revolving Credit Facility. In April 2020, we issued $500 million aggregate principal amount of 5.375% Senior Notes due 2025 (the "5.375% 2025 Senior Notes") and $500 million aggregate principal amount of 5.750% Senior Notes due 2028 (the "2028 Senior Notes") and incurred $14 million of debt issuance costs. Interest on the 5.375% 2025 Senior Notes and the 2028 Senior Notes is payable semi-annually in arrears on May 1 and November 1 of each year, beginning November 1, 2020. The 4.250% Senior Notes due 2024, the 4.625% Senior Notes due 2025, the 5.375% 2025 Senior Notes, the 5.125% Senior Notes due 2026, the 4.875% Senior Notes due 2027, the 2028 Senior Notes and the 4.875% Senior Notes due 2030 are collectively referred to as the Senior Notes and are jointly and severally guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries, other than Hilton Domestic Operating Company Inc. ("HOC"), a wholly owned subsidiary of the Parent, which is the issuer. The contractual maturities of our long-term debt as of June 30, 2020 were as follows: Year (in millions) 2020 (remaining) $ 20 2021 41 2022 25 2023 21 2024 2,712 Thereafter 7,753 $ 10,572

Fair Value Measurements

Fair Value Measurements6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value MeasurementsFair Value Measurements Estimates of the fair values of our financial instruments and nonfinancial assets were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below: June 30, 2020 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 3,304 $ — $ 3,304 $ — Restricted cash equivalents 12 — 12 — Liabilities: Long-term debt (1) 10,219 5,934 — 4,156 Interest rate swaps 95 — 95 — December 31, 2019 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 117 $ — $ 117 $ — Restricted cash equivalents 32 — 32 — Liabilities: Long-term debt (1) 7,731 5,230 — 2,834 Interest rate swaps 37 — 37 — ____________ (1) The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt. We measure our interest rate swaps at fair value, which was determined using a discounted cash flow analysis that reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves, as applicable. Our interest rate swaps are included in other long-term liabilities in our condensed consolidated balance sheets. Our nonfinancial assets that were measured at fair value on a non-recurring basis during the six months ended June 30, 2020, and for which we recorded impairment losses, were related to certain hotel properties under operating and finance leases in our ownership segment. See Note 5: "Finite-Lived Intangible Assets" and Note 8: "Leases" for additional information on the impairment losses related to our leased properties. The fair values, which were determined using significant Level 3 unobservable inputs, were as follows: (in millions) Other intangible assets, net (1) $ — Operating lease right-of-use assets (1) 34 Property and equipment, net (1) 8 ____________ (1) Amounts were measured at March 31, 2020, except for $10 million of operating lease right-of-use ("ROU") assets, which were remeasured at June 30, 2020. We recognized impairment losses during the three months ended March 31, 2020 related to certain hotel properties under operating and finance leases. During the three months ended June 30, 2020, the short-term expected results for certain of these leased hotels declined from estimates used in the assessment of recoverability at March 31, 2020, generally due to extensions of government mandated closures and additional visibility into expected hotel customer engagement at such properties. As a result, further analysis of the recoverability of the carrying value of the assets related to leased hotel properties was necessary at June 30, 2020. We assessed recoverability of the assets included in the table above using estimates of undiscounted net cash flows, and concluded that the carrying values of the assets were not fully recoverable. We then estimated the fair value of these assets using discounted cash flow analyses, which included an estimate of the impact of the COVID-19 pandemic on each leased property based on the expected recovery term. The stabilized growth rates after recovery and discount rates used for the fair value of the assets reflect the risk profile of the underlying cash flows and the individual markets where the assets are located, and are not necessarily indicative of our hotel portfolio as a whole. Estimations of stabilized growth rates after the recovery period ranged from 1.7 percent to 4.8 percent, and discount rates ranged from 7.0 percent to 12.0 percent, with the weighted average, based on relative impairment losses, for both inputs being at the lower end of each of the ranges. As a result of these non-recurring fair value measurements, we recognized impairment losses of $6 million and $118 million during the three and six months ended June 30, 2020, respectively. The fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of June 30, 2020 and December 31, 2019.

Leases

Leases6 Months Ended
Jun. 30, 2020
Lessee Disclosure [Abstract]
LeasesLeases We lease hotel properties, land, corporate office space and equipment used at hotels and corporate offices, with our most significant lease liabilities related to hotel properties. As of June 30, 2020, we leased 52 hotels under operating leases and six hotels under finance leases, two of which were the liabilities of consolidated VIEs and were non-recourse to us. Our hotel leases expire at various dates, with varying renewal and termination options. During the three and six months ended June 30, 2020, we recognized $6 million and $51 million of impairment losses related to certain operating lease ROU assets, respectively, and, during the six months ended June 30, 2020, we recognized $21 million of impairment losses related to property and equipment, including $2 million of finance lease ROU assets. All of these impairment losses were included in impairment losses in our condensed consolidated statements of operations; see Note 7: "Fair Value Measurements" for additional information. Our future minimum lease payments as of June 30, 2020 were as follows: Operating Finance Year (in millions) 2020 (remaining) $ 116 $ 32 2021 167 48 2022 137 37 2023 123 30 2024 103 30 Thereafter 752 137 Total minimum lease payments 1,398 314 Less: imputed interest (310) (69) Total lease liabilities $ 1,088 $ 245

Income Taxes

Income Taxes6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income TaxesIncome Taxes At the end of each quarter, we estimate the effective income tax rate expected to be applied for the full year to ordinary income, which excludes discrete items. Discrete items that were recognized during the six months ended June 30, 2020 included impairment losses and the vesting of certain share-based compensation awards, which provided us with tax benefits. The effective income tax rate for the full year is determined by the level and composition of income (loss) before income taxes, excluding discrete items as discussed above, which is subject to federal, state, local and foreign income taxes. The Company's forecast includes losses for the full year in many foreign jurisdictions. For certain foreign jurisdictions, we expect to have net operating losses ("NOLs"), which we expect to be utilized in future periods. However, as future utilization of NOLs reduces foreign taxes paid, we expect U.S. foreign tax credits to be reduced, thereby reducing or eliminating the tax benefit of the NOLs on a global basis. Because of the reduced global tax benefit of NOLs in these specific jurisdictions, our effective income tax rate estimate is lower than the combined U.S. statutory rate. Due to forecasted losses before income taxes for the full year, the Company is forecasting an overall tax benefit. 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 Internal Revenue Service ("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. As of June 30, 2020, we remain subject to federal and state examinations of our income tax returns for tax years from 2005 through 2018 and foreign examinations of our income tax returns for tax years from 1996 through 2019. Our total unrecognized tax benefits as of June 30, 2020 and December 31, 2019 were $428 million and $395 million, respectively. As of June 30, 2020 and December 31, 2019, we had accrued approximately $59 million and $52 million, respectively, for interest and penalties related to these unrecognized tax benefits. Included in the balances of unrecognized tax benefits as of June 30, 2020 and December 31, 2019 were $388 million and $380 million, respectively, associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate. In prior periods, we received 30-day Letters from the IRS and the Revenue Agents Reports ("RARs") for the 2006 through the 2013 tax years. We disagreed with several of the proposed adjustments in the RARs and filed formal appeals protests with the IRS. The unsettled proposed adjustments sought by the IRS for the tax years with open audits would result in additional U.S. federal taxes owed of approximately $817 million, excluding interest and penalties and potential state income taxes. We disagree with the IRS's position on each of their 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, as of June 30, 2020, we had recorded $78 million of unrecognized tax benefits related to these issues.

Share-Based Compensation

Share-Based Compensation6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Share-Based CompensationShare-Based Compensation We recognized share-based compensation expense of $24 million and $47 million during the three months ended June 30, 2020 and 2019, respectively, and $12 million and $81 million during the six months ended June 30, 2020 and 2019, respectively, which included amounts reimbursed by hotel owners in all periods. The expenses recognized during the three and six months ended June 30, 2020 were net of the reversal of expenses recognized in prior periods, as a result of the determination that the performance conditions of certain share-based compensation awards were no longer probable of achievement, as described in further detail below. As part of the Hilton 2017 Omnibus Incentive Plan (the "2017 Plan"), we award time-vesting restricted stock units and restricted stock (collectively, "RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares") to our eligible employees. As of June 30, 2020, unrecognized compensation costs for unvested awards under the 2017 Plan were approximately $138 million, which are expected to be recognized over a weighted-average period of 2.0 years on a straight-line basis. As of June 30, 2020, there were 12,541,000 shares of common stock available for future issuance under the 2017 Plan, plus any shares subject to awards outstanding under the 2013 Omnibus Incentive Plan, which will become available for issuance under the 2017 Plan if such outstanding awards expire or are terminated or are canceled or forfeited. RSUs During the six months ended June 30, 2020, we granted 907,000 RSUs with a weighted average grant date fair value per share of $93.43, which generally vest in equal annual installments over two Options During the six months ended June 30, 2020, we granted 755,000 options with a weighted average exercise price per share of $93.33, which vest over three years from the date of grant in equal annual installments and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances. The weighted average grant date fair value per share of the options granted during the six months ended June 30, 2020 was $21.47, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility (1) 23.69 % Dividend yield (2) 0.55 % Risk-free rate (3) 0.96 % Expected term (in years) (4) 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price. (2) Estimated based on the quarterly dividend and the three-month average stock price at the date 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. As of June 30, 2020, 1,965,000 options were exercisable. Performance Shares During the six months ended June 30, 2020, we granted 347,000 performance shares with a weighted average grant date fair value per share of $93.33. The performance shares are settled at the end of the three-year performance period with: (i) 50 percent of the awards subject to achievement based on the compound annual growth rate ("CAGR") of the Company's earnings before interest expense, income tax benefit (expense) and depreciation and amortization ("EBITDA"), adjusted to exclude certain items ("Adjusted EBITDA") and (ii) 50 percent of the awards subject to achievement based on the Company’s free cash flow per share CAGR. The total number of performance shares that vest related to each performance measure is based on an achievement factor, which is estimated each reporting period, that ranges from a zero percent to 200 percent payout, with 100 percent being the target. As of June 30, 2020, we determined that the performance conditions for the outstanding 2018 and 2019 performance shares were not probable of achievement and that the performance conditions for the outstanding 2020 performance shares were probable of achievement, for which we recognized compensation expense at the target achievement percentage. Based on revisions to our estimates of the achievement factor for the outstanding 2018 and 2019 awards, the share-based compensation expense recognized during the three months ended June 30, 2020 is net of the reversal of prior expense recognized related to the outstanding 2019 performance shares, and the expense recognized during the six months ended June 30, 2020 is net of the reversal of prior expense recognized related to the outstanding 2018 and 2019 performance shares.

Earnings (Loss) Per Share

Earnings (Loss) Per Share6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]
Earnings (Loss) Per ShareEarnings (Loss) Per Share The following table presents the calculation of basic and diluted earnings (loss) per share ("EPS"): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ (430) $ 260 $ (412) $ 418 Denominator: Weighted average shares outstanding 277 290 277 291 Basic EPS $ (1.55) $ 0.90 $ (1.49) $ 1.43 Diluted EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ (430) $ 260 $ (412) $ 418 Denominator: Weighted average shares outstanding (1) 278 292 279 294 Diluted EPS $ (1.55) $ 0.89 $ (1.48) $ 1.42 ____________ (1) Approximately 3 million and 1 million share-based compensation awards were excluded from the computation of diluted EPS for the three and six months ended June 30, 2020, respectively, and 1 million share-based compensation awards were excluded from the computation of EPS for the three and six months ended June 30, 2019 because their effect would have been anti-dilutive under the treasury stock method.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss6 Months Ended
Jun. 30, 2020
Stockholders' Equity Note [Abstract]
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive LossStockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss The following tables present the changes in the components of stockholders' equity (deficit): Three Months Ended June 30, 2020 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of March 31, 2020 277 $ 3 $ (4,462) $ 10,443 $ (5,999) $ (899) $ 10 $ (904) Net loss — — — — (430) — (2) (432) Other comprehensive income — — — — — 18 — 18 Share-based compensation — — 5 22 — — — 27 Balance as of June 30, 2020 277 $ 3 $ (4,457) $ 10,465 $ (6,429) $ (881) $ 8 $ (1,291) Three Months Ended June 30, 2019 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of March 31, 2019 292 $ 3 $ (2,921) $ 10,374 $ (6,558) $ (798) $ 8 $ 108 Net income — — — — 260 — 1 261 Other comprehensive loss — — — — — (8) — (8) Dividends — — — — (44) — — (44) Repurchases of common stock (4) — (383) — — — — (383) Share-based compensation — — — 45 — — — 45 Deconsolidation of a VIE — — — — — — (2) (2) Balance as of June 30, 2019 288 $ 3 $ (3,304) $ 10,419 $ (6,342) $ (806) $ 7 $ (23) Six Months Ended June 30, 2020 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of December 31, 2019 279 $ 3 $ (4,169) $ 10,489 $ (5,965) $ (840) $ 10 $ (472) Net loss — — — — (412) — (2) (414) Other comprehensive loss — — — — — (41) — (41) Dividends — — — — (42) — — (42) Repurchases of common stock (3) — (279) — — — — (279) Share-based compensation 1 — (9) (24) — — — (33) Cumulative effect of the adoption of ASU 2016-13 — — — — (10) — — (10) Balance as of June 30, 2020 277 $ 3 $ (4,457) $ 10,465 $ (6,429) $ (881) $ 8 $ (1,291) Six Months Ended June 30, 2019 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of December 31, 2018 295 $ 3 $ (2,625) $ 10,372 $ (6,417) $ (782) $ 7 $ 558 Net income — — — — 418 — 2 420 Other comprehensive loss — — — — — (24) — (24) Dividends — — — — (87) — — (87) Repurchases of common stock (8) — (679) — — — — (679) Share-based compensation 1 — — 47 — — — 47 Cumulative effect of the adoption of ASU 2016-02 — — — — (256) — — (256) Deconsolidation of a VIE — — — — — — (2) (2) Balance as of June 30, 2019 288 $ 3 $ (3,304) $ 10,419 $ (6,342) $ (806) $ 7 $ (23) In March 2020, we suspended share repurchases and the payment of dividends. The stock repurchase program remains authorized by the board of directors, and we may resume share repurchases in the future at any time, depending on market conditions, our capital needs and other factors. The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment (2) Cash Flow Hedge Adjustment (3) Total (in millions) Balance as of December 31, 2019 $ (549) $ (269) $ (22) $ (840) Other comprehensive loss before reclassifications (5) (1) (41) (47) Amounts reclassified from accumulated other comprehensive loss 1 4 1 6 Net current period other comprehensive income (loss) (4) 3 (40) (41) Balance as of June 30, 2020 $ (553) $ (266) $ (62) $ (881) Currency Translation Adjustment (1) Pension Liability Adjustment (2) Cash Flow Hedge Adjustment (3) Total (in millions) Balance as of December 31, 2018 $ (545) $ (260) $ 23 $ (782) Other comprehensive income (loss) before reclassifications 11 — (35) (24) Amounts reclassified from accumulated other comprehensive loss 1 4 (5) — Net current period other comprehensive income (loss) 12 4 (40) (24) Balance as of June 30, 2019 $ (533) $ (256) $ (17) $ (806) ____________ (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. Amounts reclassified related to the liquidation of investments in foreign entities and were recognized net of taxes in loss on foreign currency transactions in our condensed consolidated statements of operations. (2) Amounts reclassified related to the amortization of prior service cost and amortization of net loss and were recognized net of taxes in other non-operating loss, net in our condensed consolidated statements of operations. (3) Amounts reclassified related to interest rate swaps and forward contracts that hedge our foreign currency denominated fees and were recognized net of taxes in interest expense and franchise and licensing fees, base and other management fees and other revenues from managed and franchised properties, respectively, in our condensed consolidated statements of operations.

Business Segments

Business Segments6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]
Business SegmentsBusiness 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. This segment also earns licensing fees from Hilton Grand Vacations Inc. ("HGV") and strategic partnerships for the right to use certain Hilton marks and IP, as well as fees for managing properties in our ownership segment. As of June 30, 2020, this segment included 690 managed hotels and 5,405 franchised hotels consisting of 953,946 total rooms. As a result of the COVID-19 pandemic, approximately 1,170 hotels in our management and franchise segment had temporarily suspended operations at some point in time during the six months ended June 30, 2020, largely beginning in mid-March. Of these hotels, more than half had reopened as of June 30, 2020. As of June 30, 2020, the ownership segment included 65 properties totaling 20,562 rooms. As a result of the COVID-19 pandemic, approximately 35 hotels in our ownership segment had temporarily suspended operations at some point in time during the six months ended June 30, 2020, largely beginning in mid-March, of which approximately 10 had reopened as of June 30, 2020. The segment comprised 57 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and five hotels owned or leased by unconsolidated affiliates. The performance of our operating segments is evaluated primarily on operating income (loss), without allocating other revenues and expenses or general and administrative expenses. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Franchise and licensing fees $ 134 $ 445 $ 476 $ 830 Base and other management fees (1) 12 106 78 198 Incentive management fees (5) 58 18 113 Management and franchise 141 609 572 1,141 Ownership 31 387 241 699 Segment revenues 172 996 813 1,840 Amortization of contract acquisition costs (7) (7) (15) (14) Other revenues 10 26 33 52 Direct reimbursements from managed and franchised properties (2) 196 789 941 1,564 Indirect reimbursements from managed and franchised properties (2) 192 691 712 1,265 Intersegment fees elimination (1) 1 (11) — (19) Total revenues $ 564 $ 2,484 $ 2,484 $ 4,688 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations. The following table presents operating income (loss) for our reportable segments, reconciled to consolidated income (loss) before income taxes: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Management and franchise (1) $ 141 $ 609 $ 572 $ 1,141 Ownership (1) (63) 42 (93) 48 Segment operating income 78 651 479 1,189 Amortization of contract acquisition costs (7) (7) (15) (14) Other revenues, less other expenses (3) 11 6 17 Net other revenues (expenses) from managed and franchised properties (166) 22 (237) (12) Depreciation and amortization (88) (86) (179) (170) General and administrative expenses (63) (113) (123) (220) Reorganization costs (38) — (38) — Impairment losses (15) — (127) — Operating income (loss) (302) 478 (234) 790 Interest expense (106) (101) (200) (199) Loss on foreign currency transactions (13) (3) (4) (3) Other non-operating loss, net (23) (12) (23) (8) Income (loss) before income taxes $ (444) $ 362 $ (461) $ 580 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. The following table presents total assets for our reportable segments, reconciled to consolidated amounts: June 30, December 31, 2020 2019 (in millions) Management and franchise $ 11,031 $ 11,455 Ownership 1,323 1,610 Corporate and other 4,772 1,892 $ 17,126 $ 14,957

Commitments and Contingencies

Commitments and Contingencies6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesCommitments 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, creating variable interests in the ownership entities of the hotels, of which we are not the primary beneficiary. As of June 30, 2020, we had four performance guarantees, with expirations ranging from 2023 to 2039, and possible cash outlays totaling approximately $19 million. Our obligations under these guarantees in future periods are dependent on the operating performance level of the related hotel over the remaining term of the performance guarantee. We have included the impact of the COVID-19 pandemic on these hotels in our expectations of their future operating performance and, as of June 30, 2020 and December 31, 2019, we accrued current liabilities of $10 million and $3 million, respectively, for our performance guarantees. We do not have any letters of credit pledged as collateral against our performance guarantees. We may enter into new contracts containing performance guarantees in the future, which could increase our possible cash outlays. We hold interests in VIEs, for which we are not the primary beneficiary, that have entered into loan agreements with third parties. Under the terms of our contractual arrangements with certain of these VIEs, we may provide financial support to such entities under specified circumstances, including default of such a VIE under a third-party loan agreement, and may have the option to acquire a controlling financial interest in such an entity at a predetermined amount. In a circumstance that we provide financial support or exercise our option to acquire an additional interest in a VIE, we may be required to reassess whether we are the primary beneficiary of the VIE. If we determine that we are the primary beneficiary of the VIE, we would be required to consolidate the total assets, liabilities and results of operations of the VIE, which may be material upon consolidation. As of June 30, 2020, we guaranteed two loans for three hotels that we franchise or will franchise for a total of $30 million. One of the loans has an initial maturity date in 2022 with two one-year extension options, and the other loan will mature in 2023. As a result of the COVID-19 pandemic and our assessment of expected losses under these guarantees, we accrued a current liability of $20 million as of June 30, 2020 for the guarantee of one of these loans. We do not have any letters of credit pledged as collateral against these guarantees. We have entered into an agreement with the owner of a hotel that we manage to finance capital expenditures at the hotel. As of June 30, 2020, we had remaining possible cash outlays related to this agreement of approximately $10 million; however, we cannot currently estimate the timing of the payments or if they will be made at all. We receive fees from managed and franchised properties to operate our marketing, sales and brand programs on behalf of hotel owners. As of June 30, 2020 and December 31, 2019, we had collected an aggregate of $150 million and $350 million in excess of amounts expended, respectively, across all programs. We are involved in various claims and lawsuits arising in the ordinary course of business, some of which include claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of June 30, 2020 will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Policies)6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]
New Accounting PronouncementsIn June 2016, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2016-13 ("ASU 2016-13"), Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which significantly changes how entities account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. On January 1, 2020, we adopted ASU 2016-13 and subsequent ASUs issued to clarify its application, on a prospective basis, and recognized a $10 million cumulative adjustment, net of taxes, in accumulated deficit. By applying ASU 2016-13 at the adoption date, the presentation of credit losses for periods prior to January 1, 2020 remains unchanged and in accordance with Receivables (Topic 310 ). As a result of the adoption, we consider forecasted business conditions, in addition to current business conditions and historical collection activity, in calculating our allowance for credit losses on our financial instruments. The cumulative adjustment to accumulated deficit that we recognized upon adoption of this ASU did not include the impact of the COVID-19 crisis as a forecasted business condition. However, during the six months ended June 30, 2020, we revised our expected future credit loss rates from those used at adoption, primarily for our accounts receivable balances, in light of business conditions in the current environment. In particular, we considered the expected impact on our hotel owners' and customers' ability to ultimately settle receivables that are or will be due to us.

Revenues from Contracts with _2

Revenues from Contracts with Customers (Tables)6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Contract LiabilitiesThe following table summarizes the activity of our contract liabilities, which are classified as a component of current and long-term deferred revenues, during the six months ended June 30, 2020: (in millions) Balance as of December 31, 2019 $ 1,041 Cash received in advance and not recognized as revenue (1)(2) 725 Revenue recognized (1)(3) (110) Other (4) (22) Balance as of June 30, 2020 $ 1,634 ____________ (1) Primarily related to Hilton Honors, our guest loyalty program, which included revenue recognized of $51 million. (2) Includes $636 million recorded as a result of the Hilton Honors points pre-sale to American Express; see below for additional information. (3) During the three months ended June 30, 2020 and 2019, revenue recognized was $56 million and $78 million, respectively, and during the six months ended June 30, 2019 was $135 million. (4) Represents changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues.

Consolidated Variable Interes_2

Consolidated Variable Interest Entities (Tables)6 Months Ended
Jun. 30, 2020
Consolidated Variable Interest Entities Disclosure [Abstract]
Schedule of Variable Interest EntitiesOur condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following: June 30, December 31, 2020 2019 (in millions) Cash and cash equivalents $ 41 $ 81 Property and equipment, net 78 69 Deferred income tax assets 53 48 Other non-current assets 63 61 Accounts payable, accrued expenses and other 27 49 Long-term debt (1) 195 194 Other long-term liabilities 17 17 ____________ (1) Includes finance lease liabilities of $177 million as of June 30, 2020 and December 31, 2019.

Finite-Lived Intangible Assets

Finite-Lived Intangible Assets (Tables)6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible AssetsFinite-lived intangible assets were as follows: June 30, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,158 $ (2,051) $ 107 Contract acquisition costs (2) 604 (133) 471 Development commissions and other 131 (21) 110 $ 2,893 $ (2,205) $ 688 Other intangible assets: Leases (1)(3) $ 144 $ (85) $ 59 Capitalized software costs 650 (451) 199 Hilton Honors (1) 337 (267) 70 $ 1,131 $ (803) $ 328 December 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1) $ 2,163 $ (1,974) $ 189 Contract acquisition costs 604 (121) 483 Development commissions and other 127 (19) 108 $ 2,894 $ (2,114) $ 780 Other intangible assets: Leases (1) $ 290 $ (176) $ 114 Capitalized software costs 625 (399) 226 Hilton Honors (1) 338 (257) 81 Other (1) 34 (34) — $ 1,287 $ (866) $ 421 ____________ (1) Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (the "Merger"). (2) We recognized impairment losses during the three and six months ended June 30, 2020 that reduced the gross and net carrying values of contract acquisition costs by $9 million. (3) We recognized impairment losses during the six months ended June 30, 2020 that reduced the gross carrying value of our leases intangible asset by $138 million, the accumulated amortization by $92 million and the net carrying value by $46 million. See Note 7: "Fair Value Measurements" for additional information.
Amortization of Finite-Lived Intangible AssetsAmortization of our finite-lived intangible assets was as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Recognized in depreciation and amortization expense (1) $ 74 $ 71 $ 151 $ 141 Recognized as a reduction of franchise and licensing fees and base and other management fees 7 7 15 14 ____________ (1) Includes amortization expense of $47 million and $51 million for the three months ended June 30, 2020 and 2019, respectively, and $96 million and $102 million for the six months ended June 30, 2020 and 2019, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger.
Schedule of Future Amortization Expense of Finite-Lived Intangible AssetsWe estimate future amortization of our finite-lived intangible assets as of June 30, 2020 to be as follows: Recognized in Depreciation and Amortization Expense Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees Year (in millions) 2020 (remaining) $ 120 $ 15 2021 129 29 2022 98 26 2023 63 26 2024 13 25 Thereafter 122 350 $ 545 $ 471

Debt (Tables)

Debt (Tables)6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]
Long-term DebtLong-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of June 30, 2020, were as follows: June 30, December 31, 2020 2019 (in millions) Senior secured revolving credit facility with a weighted average rate of 1.43%, due 2024 $ 1,690 $ 195 Senior secured term loan facility with a rate of 1.93%, due 2026 2,619 2,619 Senior notes with a rate of 4.250%, due 2024 1,000 1,000 Senior notes with a rate of 4.625%, due 2025 900 900 Senior notes with a rate of 5.375%, due 2025 500 — Senior notes with a rate of 5.125%, due 2026 1,500 1,500 Senior notes with a rate of 4.875%, due 2027 600 600 Senior notes with a rate of 5.750%, due 2028 500 — Senior notes with a rate of 4.875%, due 2030 1,000 1,000 Finance lease liabilities with a weighted average rate of 5.82%, due 2020 to 2030 245 245 Other debt with a rate of 3.08%, due 2026 18 17 10,572 8,076 Less: unamortized deferred financing costs and discount (90) (83) Less: current maturities of long-term debt (1) (45) (37) $ 10,437 $ 7,956 ____________ (1) Represents current maturities of finance lease liabilities.
Debt MaturitiesThe contractual maturities of our long-term debt as of June 30, 2020 were as follows: Year (in millions) 2020 (remaining) $ 20 2021 41 2022 25 2023 21 2024 2,712 Thereafter 7,753 $ 10,572

Fair Value Measurements (Tables

Fair Value Measurements (Tables)6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements - Recurring & DisclosureThe fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below: June 30, 2020 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 3,304 $ — $ 3,304 $ — Restricted cash equivalents 12 — 12 — Liabilities: Long-term debt (1) 10,219 5,934 — 4,156 Interest rate swaps 95 — 95 — December 31, 2019 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 117 $ — $ 117 $ — Restricted cash equivalents 32 — 32 — Liabilities: Long-term debt (1) 7,731 5,230 — 2,834 Interest rate swaps 37 — 37 — ____________ (1) The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt.
Fair Value Measurements - NonrecurringOur nonfinancial assets that were measured at fair value on a non-recurring basis during the six months ended June 30, 2020, and for which we recorded impairment losses, were related to certain hotel properties under operating and finance leases in our ownership segment. See Note 5: "Finite-Lived Intangible Assets" and Note 8: "Leases" for additional information on the impairment losses related to our leased properties. The fair values, which were determined using significant Level 3 unobservable inputs, were as follows: (in millions) Other intangible assets, net (1) $ — Operating lease right-of-use assets (1) 34 Property and equipment, net (1) 8 ____________ (1) Amounts were measured at March 31, 2020, except for $10 million of operating lease right-of-use ("ROU") assets, which were remeasured at June 30, 2020.

Leases (Tables)

Leases (Tables)3 Months Ended
Jun. 30, 2020
Lessee Disclosure [Abstract]
Schedule of Future Minimum Lease PaymentsOur future minimum lease payments as of June 30, 2020 were as follows: Operating Finance Year (in millions) 2020 (remaining) $ 116 $ 32 2021 167 48 2022 137 37 2023 123 30 2024 103 30 Thereafter 752 137 Total minimum lease payments 1,398 314 Less: imputed interest (310) (69) Total lease liabilities $ 1,088 $ 245

Share-Based Compensation (Table

Share-Based Compensation (Tables)6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Stock Options Valuation AssumptionsThe weighted average grant date fair value per share of the options granted during the six months ended June 30, 2020 was $21.47, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Expected volatility (1) 23.69 % Dividend yield (2) 0.55 % Risk-free rate (3) 0.96 % Expected term (in years) (4) 6.0 ____________ (1) Estimated using historical movement of Hilton's stock price. (2) Estimated based on the quarterly dividend and the three-month average stock price at the date 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.

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]
Basic and Diluted Earnings (Loss) Per ShareThe following table presents the calculation of basic and diluted earnings (loss) per share ("EPS"): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ (430) $ 260 $ (412) $ 418 Denominator: Weighted average shares outstanding 277 290 277 291 Basic EPS $ (1.55) $ 0.90 $ (1.49) $ 1.43 Diluted EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ (430) $ 260 $ (412) $ 418 Denominator: Weighted average shares outstanding (1) 278 292 279 294 Diluted EPS $ (1.55) $ 0.89 $ (1.48) $ 1.42 ____________ (1) Approximately 3 million and 1 million share-based compensation awards were excluded from the computation of diluted EPS for the three and six months ended June 30, 2020, respectively, and 1 million share-based compensation awards were excluded from the computation of EPS for the three and six months ended June 30, 2019 because their effect would have been anti-dilutive under the treasury stock method.

Stockholders' Equity (Deficit_2

Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss (Tables)6 Months Ended
Jun. 30, 2020
Stockholders' Equity Note [Abstract]
Schedule of Stockholders' Equity (Deficit)The following tables present the changes in the components of stockholders' equity (deficit): Three Months Ended June 30, 2020 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of March 31, 2020 277 $ 3 $ (4,462) $ 10,443 $ (5,999) $ (899) $ 10 $ (904) Net loss — — — — (430) — (2) (432) Other comprehensive income — — — — — 18 — 18 Share-based compensation — — 5 22 — — — 27 Balance as of June 30, 2020 277 $ 3 $ (4,457) $ 10,465 $ (6,429) $ (881) $ 8 $ (1,291) Three Months Ended June 30, 2019 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of March 31, 2019 292 $ 3 $ (2,921) $ 10,374 $ (6,558) $ (798) $ 8 $ 108 Net income — — — — 260 — 1 261 Other comprehensive loss — — — — — (8) — (8) Dividends — — — — (44) — — (44) Repurchases of common stock (4) — (383) — — — — (383) Share-based compensation — — — 45 — — — 45 Deconsolidation of a VIE — — — — — — (2) (2) Balance as of June 30, 2019 288 $ 3 $ (3,304) $ 10,419 $ (6,342) $ (806) $ 7 $ (23) Six Months Ended June 30, 2020 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of December 31, 2019 279 $ 3 $ (4,169) $ 10,489 $ (5,965) $ (840) $ 10 $ (472) Net loss — — — — (412) — (2) (414) Other comprehensive loss — — — — — (41) — (41) Dividends — — — — (42) — — (42) Repurchases of common stock (3) — (279) — — — — (279) Share-based compensation 1 — (9) (24) — — — (33) Cumulative effect of the adoption of ASU 2016-13 — — — — (10) — — (10) Balance as of June 30, 2020 277 $ 3 $ (4,457) $ 10,465 $ (6,429) $ (881) $ 8 $ (1,291) Six Months Ended June 30, 2019 Equity (Deficit) Attributable to Hilton Stockholders Treasury Stock Additional Accumulated Deficit Accumulated Common Stock Noncontrolling Shares Amount Total (in millions) Balance as of December 31, 2018 295 $ 3 $ (2,625) $ 10,372 $ (6,417) $ (782) $ 7 $ 558 Net income — — — — 418 — 2 420 Other comprehensive loss — — — — — (24) — (24) Dividends — — — — (87) — — (87) Repurchases of common stock (8) — (679) — — — — (679) Share-based compensation 1 — — 47 — — — 47 Cumulative effect of the adoption of ASU 2016-02 — — — — (256) — — (256) Deconsolidation of a VIE — — — — — — (2) (2) Balance as of June 30, 2019 288 $ 3 $ (3,304) $ 10,419 $ (6,342) $ (806) $ 7 $ (23)
Schedule of Accumulated Other Comprehensive LossThe changes in the components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment (2) Cash Flow Hedge Adjustment (3) Total (in millions) Balance as of December 31, 2019 $ (549) $ (269) $ (22) $ (840) Other comprehensive loss before reclassifications (5) (1) (41) (47) Amounts reclassified from accumulated other comprehensive loss 1 4 1 6 Net current period other comprehensive income (loss) (4) 3 (40) (41) Balance as of June 30, 2020 $ (553) $ (266) $ (62) $ (881) Currency Translation Adjustment (1) Pension Liability Adjustment (2) Cash Flow Hedge Adjustment (3) Total (in millions) Balance as of December 31, 2018 $ (545) $ (260) $ 23 $ (782) Other comprehensive income (loss) before reclassifications 11 — (35) (24) Amounts reclassified from accumulated other comprehensive loss 1 4 (5) — Net current period other comprehensive income (loss) 12 4 (40) (24) Balance as of June 30, 2019 $ (533) $ (256) $ (17) $ (806) ____________ (1) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. Amounts reclassified related to the liquidation of investments in foreign entities and were recognized net of taxes in loss on foreign currency transactions in our condensed consolidated statements of operations. (2) Amounts reclassified related to the amortization of prior service cost and amortization of net loss and were recognized net of taxes in other non-operating loss, net in our condensed consolidated statements of operations.

Business Segments (Tables)

Business Segments (Tables)6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]
Reconciliation of Revenue from Segment Amounts to Consolidated AmountsThe following table presents revenues for our reportable segments, reconciled to consolidated amounts: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Franchise and licensing fees $ 134 $ 445 $ 476 $ 830 Base and other management fees (1) 12 106 78 198 Incentive management fees (5) 58 18 113 Management and franchise 141 609 572 1,141 Ownership 31 387 241 699 Segment revenues 172 996 813 1,840 Amortization of contract acquisition costs (7) (7) (15) (14) Other revenues 10 26 33 52 Direct reimbursements from managed and franchised properties (2) 196 789 941 1,564 Indirect reimbursements from managed and franchised properties (2) 192 691 712 1,265 Intersegment fees elimination (1) 1 (11) — (19) Total revenues $ 564 $ 2,484 $ 2,484 $ 4,688 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations.
Reconciliation of Segment Operating Income to Income (Loss) Before Income TaxesThe following table presents operating income (loss) for our reportable segments, reconciled to consolidated income (loss) before income taxes: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in millions) Management and franchise (1) $ 141 $ 609 $ 572 $ 1,141 Ownership (1) (63) 42 (93) 48 Segment operating income 78 651 479 1,189 Amortization of contract acquisition costs (7) (7) (15) (14) Other revenues, less other expenses (3) 11 6 17 Net other revenues (expenses) from managed and franchised properties (166) 22 (237) (12) Depreciation and amortization (88) (86) (179) (170) General and administrative expenses (63) (113) (123) (220) Reorganization costs (38) — (38) — Impairment losses (15) — (127) — Operating income (loss) (302) 478 (234) 790 Interest expense (106) (101) (200) (199) Loss on foreign currency transactions (13) (3) (4) (3) Other non-operating loss, net (23) (12) (23) (8) Income (loss) before income taxes $ (444) $ 362 $ (461) $ 580 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.
Schedule of Assets by SegmentThe following table presents total assets for our reportable segments, reconciled to consolidated amounts: June 30, December 31, 2020 2019 (in millions) Management and franchise $ 11,031 $ 11,455 Ownership 1,323 1,610 Corporate and other 4,772 1,892 $ 17,126 $ 14,957

Organization and Basis of Pre_2

Organization and Basis of Presentation (Details) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020USD ($)HotelRoomCountryJun. 30, 2019USD ($)Jun. 30, 2020USD ($)HotelRoomCountryJun. 30, 2019USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of hotels and resorts | Hotel6,215 6,215
Number of hotel and resort rooms | Room983,465 983,465
Number of countries and territories | Country118 118
Reorganization costs $ 38 $ 0 $ 38 $ 0
Accrued reorganization costs $ 35 $ 35

Recently Issued Accounting Pr_3

Recently Issued Accounting Pronouncements (Details) $ in MillionsJan. 01, 2020USD ($)
Accounting Standards Update 2016-13 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of the adoption of an ASU $ (10)

Revenues from Contracts with _3

Revenues from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Apr. 30, 2020Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Contract liabilities balance $ 1,634 $ 1,634 $ 1,041
Cash received in advance and not recognized as revenue[1],[2]725
Revenue recognized $ 56 $ 78 110 [2],[3] $ 135
Other[4]22
Revenue recognized from Hilton Honors $ 51
Portion of proceeds from guest loyalty program points pre sale recorded as deferred revenues $ 636
[1]Includes $636 million recorded as a result of the Hilton Honors points pre-sale to American Express; see below for additional information.
[2]Primarily related to Hilton Honors, our guest loyalty program, which included revenue recognized of $51 million.
[3]During the three months ended June 30, 2020 and 2019, revenue recognized was $56 million and $78 million, respectively, and during the six months ended June 30, 2019 was $135 million.
[4]Represents changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues.

Revenues from Contracts with _4

Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Apr. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue recognized $ 56 $ 78 $ 110 [1],[2] $ 135
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Proceeds from guest loyalty program points pre-sale $ 1,000
Portion of proceeds from guest loyalty program points pre sale recorded as deferred revenues $ 636
Loyalty Program Revenues [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations422 $ 422
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanationtwo to three years
Application, initiation and licensing fees [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations651 $ 651
Guest loyalty program pre-sale performance obligations [member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations $ 561 $ 561
[1]During the three months ended June 30, 2020 and 2019, revenue recognized was $56 million and $78 million, respectively, and during the six months ended June 30, 2019 was $135 million.
[2]Primarily related to Hilton Honors, our guest loyalty program, which included revenue recognized of $51 million.

Consolidated Variable Interes_3

Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in MillionsJun. 30, 2020Dec. 31, 2019
Variable Interest Entity [Line Items]
Cash and cash equivalents $ 3,503 $ 538
Property and equipment, net355 380
Deferred income tax assets118 100
Other non-current assets304 280
Accounts payable, accrued expenses and other1,372 1,703
Other long-term liabilities1,008 883
Finance lease liabilities245
Consolidated VIEs [member]
Variable Interest Entity [Line Items]
Cash and cash equivalents41 81
Property and equipment, net78 69
Deferred income tax assets53 48
Other non-current assets63 61
Accounts payable, accrued expenses and other27 49
Long-term debt[1]195 194
Other long-term liabilities17 17
Finance lease liabilities[1] $ 177 $ 177
[1]Includes finance lease liabilities of $177 million as of June 30, 2020 and December 31, 2019.

Consolidated Variable Interes_4

Consolidated Variable Interest Entities - Additional Information (Details) ¥ in Millions, $ in MillionsJun. 30, 2020JPY (¥)HotelJun. 30, 2020USD ($)HotelDec. 31, 2019USD ($)Hotel
Variable Interest Entity [Line Items]
Number of consolidated variable interest entities | Hotel2 2 2
Long-term debt, gross | $ $ 10,572 $ 8,076
VIE revolving credit facility [Member]
Variable Interest Entity [Line Items]
Revolving credit facility, maximum borrowing capacity ¥ 2,750 $ 26

Finite-Lived Intangible Asset_2

Finite-Lived Intangible Assets - Schedule of Finite Lived Intangible Assets (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2020Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Management and franchise contracts, gross $ 2,893 $ 2,893 $ 2,894
Other intangible assets, gross1,131 1,131 1,287
Management and franchise contracts, accumulated amortization(2,205)(2,205)(2,114)
Other intangible assets, accumulated amortization(803)(803)(866)
Management and franchise contracts, net688 688 780
Other intangible assets, net328 328 421
Other intangible assets, net [member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value of assets impaired[1]138
Accumulated amortization of assets impaired[1]92
Net carrying value of assets impaired[1]46
Contract acquisition costs [member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying value of assets impaired[2]9 9
Net carrying value of assets impaired[2]9 9
Management and franchise contracts recorded at merger [member]
Finite-Lived Intangible Assets [Line Items]
Management and franchise contracts, gross[3]2,158 2,158 2,163
Management and franchise contracts, accumulated amortization[3](2,051)(2,051)(1,974)
Management and franchise contracts, net[3]107 107 189
Contract acquisition costs [member]
Finite-Lived Intangible Assets [Line Items]
Management and franchise contracts, gross604 [2]604 [2]604
Management and franchise contracts, accumulated amortization(133)[2](133)[2](121)
Management and franchise contracts, net471 [2]471 [2]483
Development commissions and other [member]
Finite-Lived Intangible Assets [Line Items]
Management and franchise contracts, gross131 131 127
Management and franchise contracts, accumulated amortization(21)(21)(19)
Management and franchise contracts, net110 110 108
Other intangible assets, net [member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross[3]144 [1]144 [1]290
Other intangible assets, accumulated amortization[3](85)[1](85)[1](176)
Other intangible assets, net[3]59 [1]59 [1]114
Capitalized software costs [member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross650 650 625
Other intangible assets, accumulated amortization(451)(451)(399)
Other intangible assets, net199 199 226
Hilton Honors [member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross[3]337 337 338
Other intangible assets, accumulated amortization[3](267)(267)(257)
Other intangible assets, net[3] $ 70 $ 70 81
Other [member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross[3]34
Other intangible assets, accumulated amortization[3](34)
Other intangible assets, net[3] $ 0
[1]We recognized impairment losses during the six months ended June 30, 2020 that reduced the gross carrying value of our leases intangible asset by $138 million, the accumulated amortization by $92 million and the net carrying value by $46 million. See Note 7: "Fair Value Measurements" for additional information.
[2]We recognized impairment losses during the three and six months ended June 30, 2020 that reduced the gross and net carrying values of contract acquisition costs by $9 million.
[3]Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (the "Merger").

Finite-Lived Intangible Asset_3

Finite-Lived Intangible Assets - Amortization of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Depreciation and amortization [member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets[1] $ 74 $ 71 $ 151 $ 141
Depreciation and amortization [member] | Intangible assets recorded at fair value at the time of the Merger [member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets[1]47 51 96 102
Franchise and licensing fees and base and other management fees [member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets $ 7 $ 7 $ 15 $ 14
[1]Includes amortization expense of $47 million and $51 million for the three months ended June 30, 2020 and 2019, respectively, and $96 million and $102 million for the six months ended June 30, 2020 and 2019, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger.

Finite-Lived Intangible Asset_4

Finite-Lived Intangible Assets - Schedule of Future Amortization (Details) $ in MillionsJun. 30, 2020USD ($)
Depreciation and amortization [member]
Finite-Lived Intangible Assets [Line Items]
2020 (remaining) $ 120
2021129
202298
202363
202413
Thereafter122
Finite-lived intangible assets, net545
Franchise and licensing fees and base and other management fees [member]
Finite-Lived Intangible Assets [Line Items]
2020 (remaining)15
202129
202226
202326
202425
Thereafter350
Finite-lived intangible assets, net $ 471

Debt - Long-term Debt (Details)

Debt - Long-term Debt (Details) - USD ($) $ in MillionsJun. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt, gross $ 10,572 $ 8,076
Unamortized deferred financing costs and discount(90)(83)
Current maturities of long-term debt[1](45)(37)
Long-term debt10,437 7,956
Senior secured revolving credit facility [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 1,690 195
Debt, weighted average interest rate1.43%
Senior secured term loan facility [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 2,619 2,619
Debt instrument, interest rate, stated percentage1.93%
Senior notes due 2024 [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 1,000 1,000
Debt instrument, interest rate, stated percentage4.25%
Senior notes due 2025 [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 900 900
Debt instrument, interest rate, stated percentage4.625%
5.375% Senior notes due 2025 [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 500 0
Debt instrument, interest rate, stated percentage5.375%
Senior notes due 2026 [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 1,500 1,500
Debt instrument, interest rate, stated percentage5.125%
Senior notes due 2027 [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 600 600
Debt instrument, interest rate, stated percentage4.875%
Senior Notes due 2028 [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 500 0
Debt instrument, interest rate, stated percentage5.75%
Senior notes due 2030 [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 1,000 1,000
Debt instrument, interest rate, stated percentage4.875%
Finance lease liabilities [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 245 245
Debt, weighted average interest rate5.82%
Other debt [member]
Debt Instrument [Line Items]
Long-term debt, gross $ 18 $ 17
Debt instrument, interest rate, stated percentage3.08%
[1]Represents current maturities of finance lease liabilities.

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in MillionsJun. 30, 2020Apr. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt, gross $ 10,572 $ 8,076
Senior secured revolving credit facility [member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity1,750
Long-term debt, gross $ 1,690 195
Senior notes due 2024 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage4.25%
Long-term debt, gross $ 1,000 1,000
Senior notes due 2025 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage4.625%
Long-term debt, gross $ 900 900
5.375% Senior notes due 2025 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage5.375%
Long-term debt, gross $ 500 0
Debt Instrument, Face Amount $ 500
Senior notes due 2026 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage5.125%
Long-term debt, gross $ 1,500 1,500
Senior notes due 2027 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage4.875%
Long-term debt, gross $ 600 600
Senior Notes due 2028 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage5.75%
Long-term debt, gross $ 500 0
Debt Instrument, Face Amount $ 500
Senior notes due 2030 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage4.875%
Long-term debt, gross $ 1,000 $ 1,000
Senior notes issued in April 2020 [Member]
Debt Instrument [Line Items]
Debt issuance costs14
Letter of Credit [Member] | Senior secured revolving credit facility [member]
Debt Instrument [Line Items]
Letters of credit outstanding $ 60

Debt - Debt Maturities (Details

Debt - Debt Maturities (Details) - USD ($) $ in MillionsJun. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
2020 (remaining) $ 20
202141
202225
202321
20242,712
Thereafter7,753
Long-term debt, gross $ 10,572 $ 8,076

Fair Value Measurements - Recur

Fair Value Measurements - Recurring & Disclosure (Details) - USD ($) $ in MillionsJun. 30, 2020Dec. 31, 2019
Carrying value [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents $ 3,304 $ 117
Restricted cash equivalents12 32
Long-term debt[1]10,219 7,731
Interest rate swaps, liabilities95 37
Level 1 [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt[1]5,934 5,230
Level 2 [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents3,304 117
Restricted cash equivalents12 32
Interest rate swaps, liabilities95 37
Level 3 [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt[1] $ 4,156 $ 2,834
[1]The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt.

Fair Value Measurements - Nonre

Fair Value Measurements - Nonrecurring (Details) - USD ($) $ in MillionsJun. 30, 2020Mar. 31, 2020Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other intangible assets, net $ 328 $ 421
Operating lease right-of-use assets740 867
Property and equipment, net355 $ 380
Other intangible assets, net [member] | Fair value [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other intangible assets, net[1] $ 0
Operating lease right-of-use assets [member] | Fair value [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Operating lease right-of-use assets $ 10 34
Property and equipment, net [member] | Fair value [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Property and equipment, net $ 8
[1]Amounts were measured at March 31, 2020, except for $10 million of operating lease right-of-use ("ROU") assets, which were remeasured at June 30, 2020.

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impairment losses $ 15 $ 0 $ 127 $ 0
Other intangible assets, operating lease right-of-use assets and property and equipment [member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impairment losses $ 6 $ 118
Growth rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value measurement technique1.7 percent to 4.8 percent
Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value measurement technique7.0 percent to 12.0 percent

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) $ in MillionsJun. 30, 2020USD ($)
Lessee Disclosure [Abstract]
Finance leases, 2020 (remaining) $ 32
Finance leases, 202148
Finance leases, 202237
Finance leases, 202330
Finance leases, 202430
Finance leases, thereafter137
Finance leases, total minimum lease payments314
Less: imputed interest, finance leases(69)
Finance lease liabilities245
Operating leases, 2020 (remaining)116
Operating leases, 2021167
Operating leases, 2022137
Operating leases, 2023123
Operating leases, 2024103
Operating leases, thereafter752
Operating leases, total minimum lease payments1,398
Less: imputed interest, operating leases(310)
Operating lease liabilities $ 1,088

Leases - Additional Information

Leases - Additional Information (Details) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020USD ($)HotelJun. 30, 2019USD ($)Jun. 30, 2020USD ($)HotelJun. 30, 2019USD ($)
Lessee Disclosure [Abstract]
Hotels under operating leases | Hotel52 52
Hotels under finance leases | Hotel6 6
Number of finance leases that were the liabilities of VIEs | Hotel2 2
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment losses $ 15 $ 0 $ 127 $ 0
Operating lease right-of-use assets [member]
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment losses $ 6 51
Finance lease right-of-use assets [member]
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment losses2
Property and equipment, net [member]
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment losses $ 21

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions6 Months Ended
Jun. 30, 2020Dec. 31, 2019
Income Tax Disclosure [Abstract]
Unrecognized tax benefits $ 428 $ 395
Accrual for interest and penalties59 52
Unrecognized tax benefits that would provide benefit to effective tax rate388 $ 380
Income tax examination, estimate of possible loss817
Accrual related to IRS proposed additional tax owed $ 78

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Employee stock option [member]3 Months Ended
Jun. 30, 2020Rate
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility23.69%[1]
Dividend yield0.55%[2]
Risk-free rate0.96%[3]
Expected term (in years)6 years[4]
[1]Estimated using historical movement of Hilton's stock price.
[2]Estimated based on the quarterly dividend and the three-month average stock price at the date 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 - Addi

Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense $ 24 $ 47 $ 12 $ 81
Unrecognized compensation costs related to unvested awards $ 138 $ 138
Unrecognized compensation costs related to unvested awards, weighted-average period2 years
Shares of common stock reserved for future issuance12,541,000 12,541,000
Restricted stock units (RSUs) [member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted907,000
Weighted average grant date fair value, granted $ 93.43
Employee stock option [member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period3 years
Options granted in period755,000
Options granted in period, weighted average exercise price $ 93.33
Options, expiration period10 years
Options, grants in period, grant date fair value $ 21.47
Exercisable, in shares1,965,000 1,965,000
Performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted347,000
Weighted average grant date fair value, granted $ 93.33
EBITDA CAGR [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Terms of performance shares50 percent of the awards subject to achievement based on the compound annual growth rate ("CAGR") of the Company's earnings before interest expense, income tax benefit (expense) and depreciation and amortization ("EBITDA"), adjusted to exclude certain items ("Adjusted EBITDA")
Free cash flow CAGR [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Terms of performance shares50 percent of the awards subject to achievement based on the Company’s free cash flow per share CAGR
Minimum achievement percentage [Member] | Performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage0.00%
Target achievement percentage [Member] | Performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage100.00%
Maximum achievement percentage [Member] | Performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage200.00%
Minimum [Member] | Restricted stock units (RSUs) [member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period2 years
Maximum [Member] | Restricted stock units (RSUs) [member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period3 years

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Basic EPS:
Net income (loss) attributable to Hilton stockholders $ (430) $ 260 $ (412) $ 418
Weighted average shares outstanding277 290 277 291
Basic EPS $ (1.55) $ 0.90 $ (1.49) $ 1.43
Diluted EPS:
Net income (loss) attributable to Hilton stockholders $ (430) $ 260 $ (412) $ 418
Weighted average shares outstanding[1]278 292 279 294
Diluted EPS $ (1.55) $ 0.89 $ (1.48) $ 1.42
Antidilutive securities excluded from the computation of diluted EPS[1]Approximately 3 million1 million1 million1 million
[1]Approximately 3 million and 1 million share-based compensation awards were excluded from the computation of diluted EPS for the three and six months ended June 30, 2020, respectively, and 1 million share-based compensation awards were excluded from the computation of EPS for the three and six months ended June 30, 2019 because their effect would have been anti-dilutive under the treasury stock method.

Stockholders' Equity (Deficit_3

Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Schedule of Stockholders' Equity (Deficit) (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Mar. 31, 2020Jan. 01, 2020Dec. 31, 2019Mar. 31, 2019Jan. 01, 2019Dec. 31, 2018
Class of Stock [Line Items]
Beginning Balance, shares278,985,125
Beginning Balance $ (904) $ 108 $ (472) $ 558
Equity (deficit) attributable to Hilton stockholders(1,299)(1,299) $ (482)
Equity attributable to noncontrolling interests(8)(8)(10)
Net income (loss) attributable to Hilton stockholders(430)260 (412)418
Net income (loss) attributable to noncontrolling interests(2)1 (2)2
Net income (loss)(432)261 (414)420
Other comprehensive income (loss) $ 18 (8)(41)(24)
Dividends(44)(42)(87)
Repurchases of common stock(383) $ (279)(679)
Share-based compensation45 47
Ending Balance, shares277,309,060 277,309,060
Ending Balance $ (1,291)(23) $ (1,291)(23)
Deconsolidation of a VIE $ (2) $ (2)
us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationAndExerciseOfStockOptions $ 27 $ (33)
Accounting Standards Update 2016-13 [Member]
Class of Stock [Line Items]
Cumulative effect of the adoption of an ASU $ (10)
Accounting Standards Update 2016-02 [Member]
Class of Stock [Line Items]
Cumulative effect of the adoption of an ASU $ (256)
Common stock [member]
Class of Stock [Line Items]
Beginning Balance, shares277,000,000 292,000,000 279,000,000 295,000,000
Equity (deficit) attributable to Hilton stockholders $ 3 $ 3 $ 3 $ 3 $ 3 3 $ 3 $ 3
Repurchases of common stock, shares(4,000,000)(3,000,000)(8,000,000)
Share-based compensation, shares0 0 1,000,000 1,000,000
Ending Balance, shares277,000,000 288,000,000 277,000,000 288,000,000
Treasury stock [member]
Class of Stock [Line Items]
Equity (deficit) attributable to Hilton stockholders $ (4,457) $ (3,304) $ (4,457) $ (3,304)(4,462)(4,169)(2,921)(2,625)
Repurchases of common stock(383)(279)(679)
Increase (Decrease) in Treasury stock, Excluding Share Repurchases5 (9)
Additional paid-in capital [member]
Class of Stock [Line Items]
Equity (deficit) attributable to Hilton stockholders10,465 10,419 10,465 10,419 10,443 10,489 10,374 10,372
Share-based compensation22 45 (24)47
Accumulated deficit [member]
Class of Stock [Line Items]
Equity (deficit) attributable to Hilton stockholders(6,429)(6,342)(6,429)(6,342)(5,999)(5,965)(6,558)(6,417)
Net income (loss) attributable to Hilton stockholders(430)260 (412)418
Dividends(44)(42)(87)
Accumulated deficit [member] | Accounting Standards Update 2016-13 [Member]
Class of Stock [Line Items]
Cumulative effect of the adoption of an ASU $ (10)
Accumulated deficit [member] | Accounting Standards Update 2016-02 [Member]
Class of Stock [Line Items]
Cumulative effect of the adoption of an ASU $ (256)
Accumulated other comprehensive loss [member]
Class of Stock [Line Items]
Equity (deficit) attributable to Hilton stockholders(881)(806)(881)(806)(899)(840)(798)(782)
Other comprehensive income (loss) attributable to Hilton stockholders18 (8)(41)(24)
Noncontrolling interests [member]
Class of Stock [Line Items]
Equity attributable to noncontrolling interests8 7 8 7 $ 10 $ 10 $ 8 $ 7
Net income (loss) attributable to noncontrolling interests(2)1 (2)2
Other comprehensive income (loss) attributable to noncontrolling interests $ 0 0 $ 0 0
Deconsolidation of a VIE $ (2) $ (2)

Stockholders' Equity (Deficit_4

Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance $ (840)
Ending balance $ (881)(881)
Currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance(549) $ (545)[1]
Other comprehensive loss before reclassifications(5)11 [1]
Amounts reclassified from accumulated other comprehensive loss1 1 [1]
Net current period other comprehensive income (loss)(4)12 [1]
Ending balance(553) $ (533)[1](553)(533)[1]
Pension liability adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance(269)(260)
Other comprehensive loss before reclassifications(1)0
Amounts reclassified from accumulated other comprehensive loss4 4 [2]
Net current period other comprehensive income (loss)3 4
Ending balance(266)(256)(266)(256)
Cash flow hedge adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance(22)23
Other comprehensive loss before reclassifications(41)(35)
Amounts reclassified from accumulated other comprehensive loss1 (5)[3]
Net current period other comprehensive income (loss)(40)(40)
Ending balance(62)(17)(62)(17)
Accumulated other comprehensive loss [member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance(840)(782)
Other comprehensive loss before reclassifications(47)(24)
Amounts reclassified from accumulated other comprehensive loss6 0
Net current period other comprehensive income (loss)18 (8)(41)(24)
Ending balance $ (881) $ (806) $ (881) $ (806)
[1]Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. Amounts reclassified related to the liquidation of investments in foreign entities and were recognized net of taxes in loss on foreign currency transactions in our condensed consolidated statements of operations.
[2]Amounts reclassified related to the amortization of prior service cost and amortization of net loss and were recognized net of taxes in other non-operating loss, net in our condensed consolidated statements of operations.
[3]Amounts reclassified related to interest rate swaps and forward contracts that hedge our foreign currency denominated fees and were recognized net of taxes in interest expense and franchise and licensing fees, base and other management fees and other revenues from managed and franchised properties, respectively, in our condensed consolidated statements of operations.

Business Segments - Hotel Prope

Business Segments - Hotel Properties by Segment (Details)6 Months Ended
Jun. 30, 2020HotelRoomSegment
Segment Reporting Information [Line Items]
Number of operating segments | Segment2
Management and franchise
Segment Reporting Information [Line Items]
Number of managed hotels690
Number of franchised hotels5,405
Number of managed and franchised hotel rooms | Room953,946
Number of hotels with suspended operations at some time during the period1,170
Hotels with suspended operations that had reopenedmore than half
Ownership
Segment Reporting Information [Line Items]
Number of hotels with suspended operations at some time during the period35
Number of owned and leased hotel properties65
Number of owned and leased hotel rooms | Room20,562
Number of wholly owned and leased hotels57
Number of non-wholly owned hotels1
Number of hotels leased by consolidated VIEs2
Number of hotels owned or leased by unconsolidated affiliates5
Number of hotels with suspended operations that had reopened10

Business Segments - Reconciliat

Business Segments - Reconciliation of Revenue from Segment Amounts to Consolidated Amounts (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues $ 564 $ 2,484 $ 2,484 $ 4,688
Amortization of contract acquisition costs(7)(7)(15)(14)
Franchise and licensing fees
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues134 445 476 830
Base and other management fees
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues[1]12 106 78 198
Incentive management fees
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues(5)58 18 113
Management and franchise
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues141 609 572 1,141
Ownership
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues31 387 241 699
Segment revenues
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues172 996 813 1,840
Intersegment eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues[1]1 (11)0 (19)
Other revenues
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues10 26 33 52
Direct reimbursements from managed and franchised properties
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues[2]196 789 941 1,564
Indirect reimbursements from managed and franchised properties
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues[2] $ 192 $ 691 $ 712 $ 1,265
[1]Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.
[2]Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations.

Business Segments - Reconcili_2

Business Segments - Reconciliation of Segment Operating Income to Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Amortization of contract acquisition costs $ (7) $ (7) $ (15) $ (14)
Other revenues, less other expenses(3)11 6 17
Net other revenues (expenses) from managed and franchised properties(166)22 (237)(12)
Depreciation and amortization(88)(86)(179)(170)
General and administrative(63)(113)(123)(220)
Reorganization costs38 0 38 0
Impairment losses(15)0 (127)0
Operating income (loss)(302)478 (234)790
Interest expense(106)(101)(200)(199)
Loss on foreign currency transactions(13)(3)(4)(3)
Other non-operating loss, net(23)(12)(23)(8)
Income (loss) before income taxes(444)362 (461)580
Management and franchise
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)[1]141 609 572 1,141
Ownership
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)[1](63)42 (93)48
Segment operating income
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss) $ 78 $ 651 $ 479 $ 1,189
[1]Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.

Business Segments - Schedule of

Business Segments - Schedule of Assets by Segment (Details) - USD ($) $ in MillionsJun. 30, 2020Dec. 31, 2019
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets $ 17,126 $ 14,957
Management and franchise
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets11,031 11,455
Ownership
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets1,323 1,610
Corporate and other [member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets $ 4,772 $ 1,892

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions6 Months Ended
Jun. 30, 2020USD ($)ContractHotelDec. 31, 2019USD ($)
Commitments and Contingencies [Line Items]
Current liabilities $ 2,306 $ 2,871
Marketing, sales, and brand program commitments150 350
Commitments to fund loans
Commitments and Contingencies [Line Items]
Commitment to fund loans $ 10
Performance guarantees
Commitments and Contingencies [Line Items]
Number of contracts with guarantees | Contract4
Guarantees, expiration2023 to 2039
Guarantees, possible cash outlays $ 19
Current liabilities $ 10 $ 3
Debt guarantee
Commitments and Contingencies [Line Items]
Guarantees, expirationOne of the loans has an initial maturity date in 2022 with two one-year extension options, and the other loan will mature in 2023
Guarantees, possible cash outlays $ 30
Current liabilities $ 20
Number of debt guarantees | Contract2
Number of hotels with debt guarantees | Hotel3
Number of debt guarantees for which a liability has been accrued | Contract1