Document
Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 10, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-36243 | ||
Entity Registrant Name | Hilton Worldwide Holdings Inc. | ||
Entity Central Index Key | 0001585689 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | 2020 | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-4384691 | ||
Entity Address, Address Line One | 7930 Jones Branch Drive | ||
Entity Address, Address Line Two | Suite 1100 | ||
Entity Address, City or Town | McLean | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22102 | ||
City Area Code | 703 | ||
Local Phone Number | 883-1000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | HLT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 19,902 | ||
Entity Common Stock, Shares Outstanding | 277,607,799 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Current Assets: | |||
Cash and cash equivalents | $ 3,218 | $ 538 | |
Restricted cash and cash equivalents | 45 | 92 | |
Accounts receivable, net of allowance for credit losses | 771 | 1,261 | |
Prepaid expenses | 70 | 130 | |
Other | 98 | 72 | |
Total current assets | 4,202 | 2,093 | |
Intangibles and Other Assets: | |||
Goodwill | 5,095 | 5,159 | |
Brands | 4,904 | 4,877 | |
Management and franchise contracts, net | 653 | 780 | |
Other intangible assets, net | 266 | 421 | |
Operating lease right-of-use assets | 772 | 867 | |
Property and equipment, net | 346 | 380 | |
Deferred income tax assets | 194 | 100 | |
Other | 323 | 280 | |
Total intangibles and other assets | 12,553 | 12,864 | |
Total assets | 16,755 | 14,957 | |
Current Liabilities: | |||
Accounts payable, accrued expenses and other | 1,302 | 1,703 | |
Current maturities of long-term debt | [1] | 56 | 37 |
Current portion of deferred revenues | 370 | 332 | |
Total current liabilities | 2,431 | 2,871 | |
Long-term debt | 10,431 | 7,956 | |
Operating lease liabilities | 971 | 1,037 | |
Deferred revenues | 1,004 | 827 | |
Deferred income tax liabilities | 649 | 795 | |
Other | 989 | 883 | |
Total liabilities | 18,241 | 15,429 | |
Commitments and contingencies | |||
Equity (Deficit): | |||
Preferred stock | 0 | 0 | |
Common stock | 3 | 3 | |
Treasury stock, at cost | (4,453) | (4,169) | |
Additional paid-in capital | 10,552 | 10,489 | |
Accumulated deficit | (6,732) | (5,965) | |
Accumulated other comprehensive loss | (860) | (840) | |
Total Hilton stockholders' deficit | (1,490) | (482) | |
Noncontrolling interests | 4 | 10 | |
Total deficit | (1,486) | (472) | |
Total liabilities and equity (deficit) | 16,755 | 14,957 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Current Assets: | |||
Cash and cash equivalents | 40 | 81 | |
Total current assets | 53 | 100 | |
Intangibles and Other Assets: | |||
Property and equipment, net | 76 | 69 | |
Other | 66 | 61 | |
Total intangibles and other assets | 199 | 179 | |
Current Liabilities: | |||
Accounts payable, accrued expenses and other | 27 | 49 | |
Total current liabilities | 57 | 64 | |
Other | 17 | 17 | |
Total liabilities | 248 | 260 | |
Guest Loyalty Program [Member] | |||
Current Liabilities: | |||
Liabilities from contracts with customers, current | 703 | 799 | |
Liabilities from contracts with customers | $ 1,766 | $ 1,060 | |
[1] | Represents current maturities of finance lease liabilities. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for credit losses | $ 132 | $ 44 |
Preferred stock, par value (per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 3,000,000,000 | 3,000,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 10,000,000,000 | 10,000,000,000 |
Common stock, issued shares | 330,511,254 | 333,159,770 |
Common stock, outstanding shares | 277,590,904 | 278,985,125 |
Treasury stock, shares | 52,920,350 | 54,174,645 |
Total current assets | $ 4,202 | $ 2,093 |
Total intangibles and other assets | 12,553 | 12,864 |
Total current liabilities | 2,431 | 2,871 |
Total liabilities | 18,241 | 15,429 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Total current assets | 53 | 100 |
Total intangibles and other assets | 199 | 179 |
Total current liabilities | 57 | 64 |
Total liabilities | $ 248 | $ 260 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues | $ 4,307 | $ 9,452 | $ 8,906 | |
Depreciation and amortization | 331 | 346 | 325 | |
General and administrative | 311 | 441 | 443 | |
Reorganization costs | 41 | 0 | 0 | |
Impairment losses | 258 | 0 | 0 | |
Other expenses | 60 | 72 | 51 | |
Total expenses excluding reimbursable expenses | 1,621 | 2,113 | 2,151 | |
Total expenses | 4,725 | 7,876 | 7,474 | |
Gain on sale of assets, net | 0 | 81 | 0 | |
Operating income (loss) | (418) | 1,657 | 1,432 | |
Interest expense | (429) | (414) | (371) | |
Loss on foreign currency transactions | (27) | (2) | (11) | |
Loss on debt extinguishments | (48) | 0 | 0 | |
Other non-operating income (loss), net | (2) | 3 | 28 | |
Income (loss) before income taxes | (924) | 1,244 | 1,078 | |
Income tax benefit (expense) | 204 | (358) | (309) | |
Net income (loss) | (720) | 886 | 769 | |
Net loss (income) attributable to noncontrolling interests | 5 | (5) | (5) | |
Net income (loss) attributable to Hilton stockholders | $ (715) | $ 881 | $ 764 | |
Earnings (loss) per share, Basic [Abstract] | ||||
Basic EPS | [1] | $ (2.58) | $ 3.07 | $ 2.53 |
Earnings (loss) per share, Diluted [Abstract] | ||||
Diluted EPS | [1] | (2.56) | 3.04 | 2.50 |
Cash dividends declared per share | $ 0.15 | $ 0.60 | $ 0.60 | |
Franchise and licensing fees | ||||
Revenues | $ 945 | $ 1,681 | $ 1,530 | |
Base and other management fees | ||||
Revenues | 123 | 332 | 321 | |
Incentive management fees | ||||
Revenues | 38 | 230 | 235 | |
Owned and leased hotels | ||||
Revenues | 421 | 1,422 | 1,484 | |
Expenses | 620 | 1,254 | 1,332 | |
Other revenues | ||||
Revenues | 73 | 101 | 98 | |
Total revenues excluding reimbursable revenues | ||||
Revenues | 1,600 | 3,766 | 3,668 | |
Other revenues from managed and franchised properties | ||||
Revenues | 2,707 | 5,686 | 5,238 | |
Other expenses from managed and franchised properties | ||||
Expenses | $ 3,104 | $ 5,763 | $ 5,323 | |
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (720) | $ 886 | $ 769 |
Other comprehensive income (loss), net of tax benefit (expense): | |||
Currency translation adjustment | 38 | (4) | (70) |
Pension liability adjustment | (20) | (9) | (9) |
Cash flow hedge adjustment | (38) | (45) | 22 |
Total other comprehensive loss | (20) | (58) | (57) |
Comprehensive income (loss) | (740) | 828 | 712 |
Comprehensive loss (income) attributable to noncontrolling interests | 5 | (5) | (5) |
Comprehensive income (loss) attributable to Hilton stockholders | $ (735) | $ 823 | $ 707 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Currency translation adjustment, tax benefit (expense) | $ (24) | $ (8) | $ 6 |
Pension liability adjustment, tax benefit | 7 | 3 | 3 |
Cash flow hedge adjustment, tax benefit (expense) | $ 13 | $ 15 | $ (8) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Operating Activities: | ||||
Net income (loss) | $ (720) | $ 886 | $ 769 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Amortization of contract acquisition costs | 29 | 29 | 27 | |
Depreciation and amortization | 331 | 346 | 325 | |
Impairment losses | 258 | 0 | 0 | |
Gain on sale of assets, net | 0 | (81) | 0 | |
Loss on foreign currency transactions | 27 | 2 | 11 | |
Share-based compensation | 97 | 154 | 127 | |
Amortization of deferred financing costs and other | 17 | 16 | 16 | |
Deferred income taxes | (235) | (20) | (14) | |
Contract acquisition costs | 50 | 90 | 103 | |
Accounts receivable, net | 488 | (105) | (161) | |
Prepaid expenses | 60 | 6 | (39) | |
Other current assets | (26) | 15 | 13 | |
Accounts payable, accrued expenses and other | (414) | 99 | 148 | |
Change in operating lease right-of-use assets | 94 | 43 | 0 | |
Change in operating lease liabilities | (142) | (80) | 0 | |
Change in deferred revenues | 215 | (17) | (18) | |
Change in liabilities from contracts with customers | [1] | 803 | ||
Change in other liabilities | 8 | (14) | (53) | |
Other | 61 | 4 | 0 | |
Net cash provided by operating activities | 708 | 1,384 | 1,255 | |
Investing Activities: | ||||
Capital expenditures for property and equipment | (46) | (81) | (72) | |
Payments received on other financing receivables | 4 | 3 | 50 | |
Proceeds from asset disposition | 0 | 120 | 0 | |
Capitalized software costs | (46) | (124) | (87) | |
Other | (19) | (41) | (22) | |
Net cash used in investing activities | (107) | (123) | (131) | |
Financing Activities: | ||||
Borrowings | 4,590 | 2,200 | 1,676 | |
Repayment of debt | (2,121) | (1,547) | (1,005) | |
Debt issuance costs and redemption premiums | (71) | (29) | (21) | |
Dividends paid | (42) | (172) | (181) | |
Repurchases of common stock | (296) | (1,538) | (1,721) | |
Share-based compensation tax withholdings and other | (27) | (27) | (44) | |
Other | (1) | 0 | (4) | |
Net cash provided by (used in) financing activities | 2,032 | (1,113) | (1,300) | |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | (2) | (10) | |
Net increase (decrease) in cash, restricted cash and cash equivalents | 2,633 | 146 | (186) | |
Cash, restricted cash and cash equivalents, beginning of period | 630 | 484 | 670 | |
Cash, restricted cash and cash equivalents, end of period | 3,263 | 630 | 484 | |
Guest Loyalty Program [Member] | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Change in liabilities from contracts with customers | $ 610 | $ 191 | $ 207 | |
[1] | Primarily related to Hilton Honors, our guest loyalty program, including $636 million related the Honors Points Pre-Sale; see below for additional information. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) Statement - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Treasury stock | Additional paid-in capital | Accumulated deficit | Accumulated deficitCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive loss | Accumulated other comprehensive lossCumulative Effect, Period of Adoption, Adjustment | Noncontrolling interests |
Beginning balance, shares at Dec. 31, 2017 | 317,000,000 | |||||||||
Beginning balance, equity attributable to Hilton stockholders at Dec. 31, 2017 | $ 3 | $ (891) | $ 10,298 | $ (6,981) | $ (741) | |||||
Beginning balance, equity attributable to noncontrolling interest at Dec. 31, 2017 | $ 3 | |||||||||
Beginning balance, equity at Dec. 31, 2017 | $ 1,691 | |||||||||
Net income (loss) attributable to Hilton stockholders | 764 | 764 | ||||||||
Net loss (income) attributable to noncontrolling interests | 5 | 5 | ||||||||
Net income (loss) | 769 | |||||||||
Currency translation adjustment | (70) | (70) | ||||||||
Pension liability adjustment | (9) | (9) | ||||||||
Cash flow hedge adjustment | 22 | 22 | ||||||||
Other comprehensive income (loss) | (57) | |||||||||
Other comprehensive income (loss) | Accounting standards update 2018-02 | $ 16 | |||||||||
Other comprehensive income (loss), net of tax | (57) | |||||||||
Dividends | (184) | (184) | ||||||||
Repurchases of common stock, shares | (23,000,000) | |||||||||
Repurchases of common stock | (1,721) | (1,721) | ||||||||
Share-based compensation, shares | 1,000,000 | |||||||||
Decrease in treasury stock, excluding share repurchases | (13) | |||||||||
Share-based compensation | 77 | |||||||||
Increase in stockholders' equity from share-based compensation | 64 | |||||||||
Distributions | (1) | (1) | ||||||||
Acquisition of noncontrolling interest | (3) | (3) | ||||||||
Ending balance, shares at Dec. 31, 2018 | 295,000,000 | |||||||||
Ending balance, equity attributable to Hilton stockholders at Dec. 31, 2018 | $ 3 | (2,625) | 10,372 | (6,417) | (782) | |||||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2018 | 7 | |||||||||
Ending balance, equity at Dec. 31, 2018 | 558 | |||||||||
Cumulative effect of the adoption of ASU | Accounting standards update 2018-02 | $ 0 | $ (16) | ||||||||
Net income (loss) attributable to Hilton stockholders | 881 | 881 | ||||||||
Net loss (income) attributable to noncontrolling interests | 5 | 5 | ||||||||
Net income (loss) | 886 | |||||||||
Currency translation adjustment | (4) | (4) | ||||||||
Pension liability adjustment | (9) | (9) | ||||||||
Cash flow hedge adjustment | (45) | (45) | ||||||||
Other comprehensive income (loss) | (58) | |||||||||
Other comprehensive income (loss), net of tax | (58) | |||||||||
Dividends | (173) | (173) | ||||||||
Repurchases of common stock, shares | (17,000,000) | |||||||||
Repurchases of common stock | (1,544) | (1,544) | ||||||||
Share-based compensation, shares | 1,000,000 | |||||||||
Share-based compensation | 117 | |||||||||
Increase in stockholders' equity from share-based compensation | 117 | |||||||||
Deconsolidation of a variable interest entity | $ (2) | (2) | ||||||||
Ending balance, shares at Dec. 31, 2019 | 278,985,125 | 279,000,000 | ||||||||
Ending balance, equity attributable to Hilton stockholders at Dec. 31, 2019 | $ (482) | $ 3 | (4,169) | 10,489 | (5,965) | (840) | ||||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2019 | (10) | 10 | ||||||||
Ending balance, equity at Dec. 31, 2019 | (472) | |||||||||
Cumulative effect of the adoption of ASU | (5,965) | |||||||||
Cumulative effect of the adoption of ASU | Accounting standards update 2016-02 | $ (256) | (256) | ||||||||
Net income (loss) attributable to Hilton stockholders | (715) | (715) | ||||||||
Net loss (income) attributable to noncontrolling interests | (5) | (5) | ||||||||
Net income (loss) | (720) | |||||||||
Currency translation adjustment | 38 | 38 | ||||||||
Pension liability adjustment | (20) | (20) | ||||||||
Cash flow hedge adjustment | (38) | (38) | ||||||||
Other comprehensive income (loss) | (20) | |||||||||
Other comprehensive income (loss), net of tax | (20) | |||||||||
Dividends | (42) | (42) | ||||||||
Repurchases of common stock, shares | (3,000,000) | |||||||||
Repurchases of common stock | (279) | (279) | ||||||||
Share-based compensation, shares | 2,000,000 | |||||||||
Decrease in treasury stock, excluding share repurchases | (5) | |||||||||
Share-based compensation | 63 | |||||||||
Increase in stockholders' equity from share-based compensation | 58 | |||||||||
Distributions | $ (1) | (1) | ||||||||
Ending balance, shares at Dec. 31, 2020 | 277,590,904 | 278,000,000 | ||||||||
Ending balance, equity attributable to Hilton stockholders at Dec. 31, 2020 | $ (1,490) | $ 3 | $ (4,453) | $ 10,552 | $ (6,732) | $ (860) | ||||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2020 | (4) | $ 4 | ||||||||
Ending balance, equity at Dec. 31, 2020 | (1,486) | |||||||||
Cumulative effect of the adoption of ASU | $ (6,732) | |||||||||
Cumulative effect of the adoption of ASU | Accounting Standards Update 2016-13 | $ (10) |
Organization
Organization | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts and licensing its brands and intellectual property ("IP"). As of December 31, 2020, we managed, franchised, owned or leased 6,478 hotels and resorts, including timeshare properties, totaling 1,019,287 rooms in 119 countries and territories. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation These consolidated financial statements present the consolidated financial position of Hilton as of December 31, 2020 and 2019 and results of operations for the years ended December 31, 2020, 2019 and 2018. Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and other entities in which we have a controlling financial interest, including variable interest entities ("VIEs") for which we are the primary beneficiary. Non-wholly owned entities in which we have a controlling financial interest generally comprise majority owned real estate ownership enterprises. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other ownership interests. If the entity is considered to be a VIE, we evaluate whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities other than VIEs when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. We hold interests in VIEs, for which we are not the primary beneficiary, that may provide us with the option to acquire an additional interest in such an entity at a predetermined amount, if certain contingent events occur. In a circumstance that we exercise our option to acquire an additional interest in a VIE, we would 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. All material intercompany transactions and balances have been eliminated in consolidation. References in these financial statements to net income (loss) attributable to Hilton stockholders and Hilton stockholders' equity (deficit) do not include noncontrolling interests, which represent the third-party ownership interests of our consolidated, non-wholly owned entities and are reported separately. Use of Estimates The preparation of financial statements in conformity with United States ("U.S") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. In particular, the novel coronavirus ("COVID-19") pandemic had a material adverse impact on our results for the year ended December 31, 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 period, as well as upcoming periods, are unlikely to be comparable to past performance or indicative of future performance. Reorganization During the year ended December 31, 2020, we recognized expenses 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. Included in these expenses were $41 million of reorganization costs for our corporate operations and $177 million related to amounts to be reimbursed by our third-party hotel owners, including those related to our managed hotels, which were included in other expenses from managed and franchised properties in our consolidated statement of operations. As of December 31, 2020, $35 million of reorganization costs were included in accounts payable, accrued expenses and other in our consolidated balance sheet, with related amounts in accounts receivable for reimbursements by our third-party hotel owners, as applicable. Summary of Significant Accounting Policies Revenue Recognition Revenues are primarily derived from management and franchise contracts with third-party hotel and resort owners, our owned and leased hotels, and from license agreements with Hilton Grand Vacations Inc. ("HGV") and strategic partnerships, including co-branded credit card arrangements. The majority of our performance obligations are a series of distinct goods or services, for which we receive variable consideration through our management and franchise fees or fixed consideration through our owned and leased hotels. We allocate the variable fees to the distinct services to which they relate applying the prescribed variable consideration allocation guidance, and we allocate fixed consideration to the related performance obligations based on their estimated standalone selling prices. We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Additionally, we do not typically include extended payment terms in our contracts with customers. However, in response to cash flow deficiencies experienced by certain property owners resulting from the COVID-19 pandemic, we may amend certain contracts with customers to provide short-term payment relief, expecting that we collect most amounts outstanding in twelve months or less. Management and franchise revenues We identified the following performance obligations in connection with our management and franchise contracts: • IP licenses grant the right to access our hotel system IP, including brand IP, reservations systems and property management systems. • Hotel management services include providing day-to-day management services of the hotels for the property owners. • Development services include providing consultative services (e.g., design assistance and contractor selection) to the property owner to assist with the construction of the hotel prior to the hotel opening. • Pre-opening services include providing services (e.g., advertising, budgeting, e-commerce strategies and food and beverage testing) to the property owner to assist in preparing for the hotel opening. • Substantive rights for free or discounted goods or services to hotel guests are satisfied at the earlier point in time of either when the substantive right expires or the underlying free or discounted good or service is provided to the hotel guest. Each of the identified performance obligations is considered to be a series of distinct services transferred over time, except for the substantive rights for free or discounted goods or services to hotel guests performance obligation, which is satisfied at a point in time. While the underlying activities may vary from day to day, the nature of the commitments are the same each day, and the property owner can independently benefit from each day's services. Management and franchise fees are typically based on the sales or usage of the underlying hotel, with the exception of fixed upfront fees, which usually represent an insignificant portion of the transaction price. Franchise and licensing fees represent fees earned in connection with the licensing of one of our brands, usually under long-term contracts with the property owner, and may also include fees from a licensing agreement for the use of certain Hilton marks and IP, and include the following: • Royalty fees are generally based on a percentage of the hotel's monthly gross room revenue and, in some cases, may also include a percentage of gross food and beverage revenues and other revenues, as applicable. These fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Application, initiation and other fees are charged when: (i) new hotels enter our system; (ii) there is a change of ownership of a hotel; or (iii) contracts with properties already in our system are extended. These fees are typically fixed and collected upfront and are recognized as revenue over the term of the franchise contract. We do not consider this advance consideration to include a significant financing component, since it is used to protect us from the property owner failing to adequately complete some or all of its obligations under the contract, including establishing and maintaining the hotel in accordance with our standards. • Licensing fees are earned from: (i) a license agreement with HGV to use certain Hilton marks and IP in its timeshare business, which are typically billed monthly, and revenue is generally recognized at the same time the fees are billed and (ii) co-branded credit card arrangements, which are recognized as revenue when points for our guest loyalty program, Hilton Honors, are issued, generally as spend on the co-branded credit card occurs; see further discussion below under "Hilton Honors." Consideration paid or anticipated to be paid to incentivize hotel owners to enter into franchise contracts with us is amortized over the life of the applicable contract as a reduction to franchise and licensing fees. Management fees represent fees earned from hotels that we manage, usually under long-term contracts with the property owner, and include the following: • Base management fees are generally based on a percentage of the hotel's monthly gross revenue. Base fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Incentive management fees are generally based on a percentage of the hotel's operating profits and, in some cases, may be subject to a stated return threshold to the property owner, normally over a one-calendar year period (the "incentive period"). Incentive fee revenue is recognized on a monthly basis, but only to the extent the cumulative fee earned does not exceed the probable fee for the incentive period. Incentive fee payment terms vary, but they are generally billed and collected monthly or annually upon completion of the incentive period. Consideration paid or anticipated to be paid to incentivize hotel owners to enter into management contracts with us is amortized over the life of the applicable contract as a reduction to base and other management fees. We do not estimate revenues expected to be recognized related to our unsatisfied performance obligations for our: (i) royalty fees, since they are considered sales-based royalty fees recognized as hotel room sales occur in exchange for licenses of our brand names over the terms of the franchise contracts and (ii) base management fees and incentive management fees, since they are allocated entirely to the wholly unsatisfied promise to transfer management services, which form part of a single performance obligation in a series, over the term of the individual management contract. Other revenues from managed and franchised properties represent amounts that are contractually reimbursed to us by property owners, either directly as costs are incurred or indirectly through fees billed and collected in advance related to certain costs and expenses of the related properties, and include the following: • Direct reimbursements include payroll and related costs and certain other operating costs of the managed and franchised properties' operations, which are contractually reimbursed to us by the property owners as expenses are incurred. Revenue is recognized based on the amount of expenses incurred by Hilton, which are presented as other expenses from managed and franchised properties in our consolidated statements of operations, that are then reimbursed to us by the property owner typically on a monthly basis, which results in no net effect on operating income (loss) or net income (loss). • Indirect reimbursements include marketing expenses and other expenses associated with our brand programs and shared services, which are paid from fees collected by Hilton from the managed and franchised properties. Indirect reimbursements are typically billed and collected monthly, based on the underlying hotel's sales or usage (such as gross room revenue or number of reservations processed), and revenue is generally recognized as services are provided. System implementation fees charged to property owners are deferred and recognized as revenue over the term of the management or franchise contract. The corresponding expenses are expensed as incurred and are presented as other expenses from managed and franchised properties in our consolidated statements of operations and are expected to equal the revenues earned from indirect reimbursements over time. The management and franchise fees and reimbursements from third-party hotel owners are allocated to the performance obligations and the distinct services to which they relate using their estimated standalone selling prices. The terms of the fees earned under the contract relate to a specific outcome of providing the services (e.g., hotel room sales) or to Hilton's efforts (e.g., costs) to satisfy the performance obligations. Using time as the measure of progress, we recognize fee revenue and indirect reimbursements in the period earned per the terms of the contract and revenue related to direct reimbursements in the period in which the cost is incurred. Owned and leased hotel revenues We identified the following performance obligations in connection with our owned and leased hotel revenues, for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: • Cancellable room reservations or ancillary services are typically satisfied as the good or service is transferred to the hotel guest, which is generally when the room stay occurs. • Noncancellable room reservations and banquet or conference reservations represent a series of distinct goods or services provided over time and satisfied as each distinct good or service is provided, which is reflected by the duration of the reservation. • Substantive rights for free or discounted goods or services are satisfied at the earlier of when: (i) the substantive right expires or (ii) the underlying free or discounted good or service is provided to the hotel guest. • Other ancillary goods and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest. • Components of package reservations for which each component could be sold separately to other hotel guests are considered separate performance obligations and are satisfied as set forth above. Owned and leased hotel revenues primarily consist of hotel room sales, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking) related to owned, leased and consolidated non-wholly owned hotel properties. Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. Owned and leased hotel revenues are reduced upon issuance of Hilton Honors points for Hilton Honors members' paid stay transactions and are recognized when Hilton Honors points are redeemed for a free stay at an owned or leased hotel (see the "Hilton Honors" section below for additional information). Although the transaction prices of hotel room sales, goods and other services are generally fixed and based on the respective room reservation or other agreement, an estimate to reduce the transaction price is required if a discount is expected to be provided to the customer. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. On occasion, the hotel may also provide the customer with a substantive right to a free or discounted good or service in conjunction with a room reservation or banquet contract (e.g., free breakfast and free room night for every four nights booked). These substantive rights are considered separate performance obligations to which a portion of the transaction price is allocated based on the estimated standalone selling prices of the good or service, adjusted for the likelihood the hotel guest will exercise the right. Other revenues Other revenues include revenues generated by the incidental support of hotel operations for owned, leased, managed and franchised hotels, including purchasing operations, and other operating income. Purchasing revenues include any amounts received for vendor rebate arrangements that we participate in on behalf of the hotels in our system. Taxes and fees collected on behalf of governmental agencies We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in our measurement of transaction prices. We have elected to present revenue net of sales taxes and other similar taxes. We record a liability when the amounts are collected and relieve the liability when payments are made to the applicable taxing authority or other appropriate governmental agency. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of three months or less. Restricted Cash and Cash Equivalents Restricted cash and cash equivalents include cash balances established as security for certain guarantees, ground rent and property tax escrows, insurance, including self-insurance collateral, and furniture, fixtures and equipment replacement reserves required under certain lease agreements. Allowance for Credit Losses An allowance for credit losses is provided on our financial instruments, primarily accounts receivable. Our expected credit losses are based on historical collection activity, the nature of the financial instrument, geographic considerations and current and forecasted business conditions. Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. In connection with the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (the "Merger"), we recorded goodwill representing the excess purchase price over the fair value of the other identified assets and liabilities. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if indicators of impairment exist. We evaluate goodwill for potential impairment by comparing the carrying values of our reporting units to their fair values. Our reporting units are the same as our operating segments as described in Note 18: "Business Segments." At any time we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If we cannot determine qualitatively that the fair value is not more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, including goodwill. The estimated fair value is based on internal projections of expected future cash flows and operating plans, as well as market conditions relative to the operations of our reporting units. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired; otherwise, an impairment loss would be recognized in our consolidated statements of operations in an amount equal to the excess of the carrying value over the fair value, limited to the total amount of goodwill allocated to that reporting unit. Brands We manage, franchise, own and lease hotels under our portfolio of brands. There are no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these brands and, accordingly, the useful lives of these brands are considered to be indefinite. At the time of the Merger, our portfolio consisted of Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Homewood Suites by Hilton and our timeshare brand, Hilton Grand Vacations. As a result of the Merger, these brands were assigned a fair value using the relief from royalty valuation approach or the excess earnings method, depending on the contract type. All brands that were launched subsequent to the Merger, which include LXR Hotels & Resorts, Canopy by Hilton, Tempo by Hilton, Signia by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Motto by Hilton, Tru by Hilton, and Home2 Suites by Hilton, were not assigned fair values, and we do not have any intangible assets for these brands recorded in our consolidated balance sheets. We evaluate our indefinite-lived brands intangible assets for impairment on an annual basis or at other times during the year if indicators of impairment exist. At any time we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the brand intangible asset is less than its carrying value. If we cannot determine qualitatively that the fair value is not more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The estimated fair value is based on internal projections of expected future cash flows. If a brand intangible asset’s estimated current fair value is less than its respective carrying value, the excess of the carrying value over the estimated fair value is recognized in our consolidated statements of operations as impairment losses. Intangible Assets with Finite Useful Lives We have certain finite-lived intangible assets that were initially recorded at their fair value at the time of the Merger. These intangible assets consist of management contracts, franchise contracts, leases, certain proprietary technologies and our Hilton Honors guest loyalty program. As of December 31, 2020, the intangible assets related to these franchise contracts, U.S. management contracts and certain proprietary technologies were fully amortized. Additionally, we capitalize consideration paid to incentivize hotel owners to enter into management and franchise contracts with us as contract acquisition costs and the incremental costs to obtain or fulfill the contracts as development commissions and other, both of which are generally fixed. We also capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses, as well as internal and external costs incurred in connection with the development of upgrades or enhancements that result in additional information technology functionality. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which for contract acquisition costs and development commissions is the contract term, including any renewal periods that are at our sole option. These estimated useful lives are generally as follows: management contracts recorded at the Merger (13 to 16 years); management contract acquisition costs and development commissions (20 to 30 years); franchise contracts recorded at the Merger (12 to 13 years); franchise contract acquisition costs and development commissions (10 to 20 years); leases (12 to 35 years); Hilton Honors (16 years); and capitalized software costs (3 years). In our consolidated statements of operations, the amortization of these intangible assets, excluding contract acquisition costs, is included in depreciation and amortization expense, and the amortization of contract acquisition costs is recognized as a reduction to franchise and licensing fees and base and other management fees, depending on the contract type. Costs incurred prior to the acquisition of a contract, such as external legal costs, are expensed as incurred and included in general and administrative expenses in our consolidated statements of operations. Cash flows for contract acquisition costs and development commissions are included as operating activities in our consolidated statements of cash flows, and cash flows for capitalized software costs are included as investing activities. We review all finite-lived intangible assets for impairment on an annual basis or at other times during the year when indicators of impairment exist. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net carrying value of the asset group. If the carrying value of the asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the estimated fair value in our consolidated statements of operations. Property and Equipment Property and equipment are recorded at cost. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Refer to "Leases" below for information on right-of-use ("ROU") assets of finance leases, which are included in property and equipment, net in our consolidated balance sheets. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements (8 to 40 years), furniture and equipment (3 to 8 years) and computer equipment (3 to 5 years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of impairment and review the recoverability of the asset group by comparing the estimated future undiscounted cash flows to the net carrying value of the asset group. If the net carrying value of the asset group is determined to be less than its estimated future undiscounted cash flows and, therefore, is not considered to be recoverable and is in excess of the estimated fair value, we record an impairment loss in our consolidated statements of operations. We allocate the impairment loss related to an asset group among the various assets within the asset group pro rata based on the relative carrying value of the respective assets. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred, which is generally upon acquisition, construction or development or through the normal operation of the asset. Leases We determine if a contract is or contains a lease at the inception of the contract, and we classify that lease as a finance lease if it meets certain criteria or as an operating lease when it does not. We reassess if a contract is or contains a leasing arrangement upon modification of the contract. For a contract, in which we are the lessee, that contains fixed payments for both lease and non-lease components, we have elected to account for the components as a single lease component, as permitted. At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a ROU asset representing our right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Current and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current and long-term portions of finance lease liabilities are classified as current maturities of long-term debt and long-term debt, respectively, in our consolidated balance sheets. The ROU asset is measured as the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by us, deferred rent and lease incentives. ROU assets of operating leases are included in operating lease right-of-use assets, and ROU assets of finance leases are included in property and equipment, net in our consolidated balance sheets. We evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group by comparing the estimated future undiscounted cash flows to the net carrying value of the asset group. If the net carrying value of the asset group is determined to be less than its estimated future undiscounted cash flows and, therefore, is not considered to be recoverable and is in excess of the estimated fair value, we record an impairment loss in our consolidated statements of operations. We allocate the impairment loss related to an asset group among the various assets within the asset group pro rata based on the relative carrying value of the respective assets. Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, which, for our hotels, are generally based on a percentage of the underlying asset's revenues or profits, or are dependent on changes in an index; and/or (iii) lease payments equal to the greater of the fixed or variable lease payments. In addition, during the term of our hotel leases, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel property. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term, and lease expense related to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statements of operations. For operating leases for which the ROU asset has been impaired, the lease expense is determined as the sum of the amortization of the ROU asset remaining after impairment on a straight-line basis over the remaining term of the lease and the accretion of the lease liability based on the discount rate applied to the lease liability. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in our consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statements of operations. Contract Liabilities Contract liabilities relate to: (i) advance consideration received from hotel owners at contract inception for services considered to be part of the contract's performance obligations, such as application, initiation and other fees; (ii) advance consideration received for certain indirect reimbursements, such as system implementation fees; (iii) amounts received when points are issued under Hilton Ho |
Disposal
Disposal | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal | Disposal In 2019, we completed the sale of the Hilton Odawara Resort & Spa for a price of 13 billion Japanese yen (equivalent to $122 million as of the closing date) and subsequently entered into a 30-year management contract with the purchaser of the hotel. As a result of the sale, we recognized a pre-tax gain of $81 million included in gain on sale of assets, net in our consolidated statement of operations for the year ended December 31, 2019. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customer | Revenues from Contracts with Customers Contract Liabilities The following table summarizes the activity of our contract liabilities during the year ended December 31, 2020: (in millions) Balance as of December 31, 2019 $ 1,041 Cash received in advance and not recognized as revenue (1) 803 Revenue recognized (2)(3) (324) Other (4) (208) Balance as of December 31, 2020 $ 1,312 ____________ (1) Primarily related to Hilton Honors, our guest loyalty program, including $636 million related the Honors Points Pre-Sale; see below for additional information. (2) Primarily includes $264 million related to Hilton Honors, including amounts recognized as licensing fees from co-branded credit card arrangements. (3) During the years ended December 31, 2019 and 2018, revenue recognized was $288 million and $229 million, respectively. (4) Primarily 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 (the "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 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. Performance Obligations As of December 31, 2020, we had deferred revenues for unsatisfied performance obligations consisting of: (i) $249 million related to Hilton Honors that will be recognized as revenue when the points are redeemed, which we estimate will occur over approximately the next two years; (ii) $471 million related to co-branded credit card arrangements, primarily consisting of deferred revenues for 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) $592 million related to application, initiation and other fees that is expected to be recognized as revenue over the terms of the related contracts. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of December 31, 2020 and 2019, we consolidated two 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 consolidated balance sheets included the assets and liabilities of the VIEs that we consolidated as of the respective periods, which primarily comprised the following: December 31, 2020 2019 (in millions) Cash and cash equivalents $ 40 $ 81 Property and equipment, net 76 69 Deferred income tax assets 57 48 Other non-current assets 66 61 Accounts payable, accrued expenses and other 27 49 Long-term debt (1) 203 194 Other long-term liabilities 17 17 ____________ (1) Includes finance lease liabilities of $184 million and $177 million as of December 31, 2020 and 2019, respectively. To provide financial flexibility in response to the business disruption caused by the COVID-19 pandemic, each of our consolidated VIEs entered into a revolving credit facility during the year ended December 31, 2020. These revolving credit facilities have borrowing capacities totaling 2.75 billion Japanese yen and 2.0 billion Japanese yen (equivalent to $27 million and $19 million, respectively, as of December 31, 2020), and mature in June 2021 and August 2021, respectively. As of December 31, 2020, no amounts have been drawn under these revolving credit facilities. We did not provide any financial or other support to any consolidated VIEs that we were not previously contractually required to provide during the years ended December 31, 2020, 2019 and 2018. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill During the year ended December 31, 2020, we recognized impairment losses of $104 million of goodwill, as a result of the full impairment of the goodwill attributable to our ownership reporting unit. See Note 11: "Fair Value Measurements" for additional information on the impairment analysis performed on goodwill and the resulting impairment losses recognized. Our goodwill balances, by reporting unit, were as follows: Ownership Management and Franchise Total (in millions) Balance as of December 31, 2018 $ 99 $ 5,061 $ 5,160 Foreign currency translation (1) — (1) Balance as of December 31, 2019 98 5,061 5,159 Impairment losses (104) — (104) Foreign currency translation 6 34 40 Balance as of December 31, 2020 $ — $ 5,095 $ 5,095 There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2020, 2019 and 2018. The gross carrying values and accumulated impairment losses for the ownership reporting unit are as follows: Gross Carrying Value Accumulated Impairment Losses Net Carrying Value (in millions) Balance as of December 31, 2018 $ 439 $ (340) $ 99 Foreign currency translation (1) — (1) Balance as of December 31, 2019 438 (340) 98 Impairment losses (444) 340 (104) Foreign currency translation 6 — 6 Balance as of December 31, 2020 $ — $ — $ — Intangible Assets Changes to our brands intangible assets from December 31, 2019 to December 31, 2020 were due to foreign currency translations. Finite-lived intangible assets were as follows: December 31, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1)(2) $ 317 $ (261) $ 56 Contract acquisition costs (3) 632 (144) 488 Development commissions and other 132 (23) 109 $ 1,081 $ (428) $ 653 Other intangible assets: Leases (1)(4) $ 157 $ (95) $ 62 Capitalized software costs 522 (378) 144 Hilton Honors (1) 342 (282) 60 $ 1,021 $ (755) $ 266 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 fair value as part of the Merger. (2) During the year ended December 31, 2020, certain of the assets became fully amortized and, as a result, the gross carrying values and related accumulated amortization were written-off. (3) During the year ended December 31, 2020, we recognized impairment losses of $15 million, which reduced the gross carrying value and accumulated amortization by $18 million and $3 million, respectively. (4) During the year ended December 31, 2020, we recognized impairment losses of $46 million, which reduced the gross carrying value and accumulated amortization by $138 million and $92 million, respectively. See Note 11: "Fair Value Measurements" for additional information. Amortization of our finite-lived intangible assets was as follows: Year Ended December 31, 2020 2019 2018 (in millions) Recognized in depreciation and amortization expense (1) $ 274 $ 286 $ 271 Recognized as a reduction of franchise and licensing fees and base and other management fees 29 29 27 ____________ (1) Includes amortization expense of $164 million, $202 million and $204 million for the years ended December 31, 2020, 2019 and 2018, 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 December 31, 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) 2021 $ 131 $ 29 2022 96 26 2023 63 26 2024 13 26 2025 9 25 Thereafter 119 356 $ 431 $ 488 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment were as follows: December 31, 2020 2019 (in millions) Land $ 11 $ 11 Buildings and leasehold improvements 381 382 Furniture and equipment 346 356 Construction-in-progress 7 20 Finance lease ROU assets 87 120 832 889 Accumulated depreciation and amortization (1) (486) (509) $ 346 $ 380 ____________ (1) During the years ended December 31, 2020, 2019 and 2018, depreciation and amortization expense on property and equipment was $57 million, $60 million and $54 million, respectively. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts Payable, Accrued Expenses and Other Accounts payable, accrued expenses and other were as follows: December 31, 2020 2019 (in millions) Accrued employee compensation and benefits $ 404 $ 554 Accounts payable 224 303 Operating lease liabilities, current 170 133 Insurance reserves, current 68 95 Other liabilities and accrued expenses (1) 436 618 $ 1,302 $ 1,703 ____________ |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term Debt Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of December 31, 2020, were as follows: December 31, 2020 2019 (in millions) Senior secured revolving credit facility with a rate of 1.15%, due 2024 $ 1,690 $ 195 Senior secured term loan facility with a rate of 1.90%, due 2026 2,619 2,619 Senior notes with a rate of 4.250%, due 2024 — 1,000 Senior notes with a rate of 4.625%, due 2025 — 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 3.750%, due 2029 800 — Senior notes with a rate of 4.875%, due 2030 1,000 1,000 Senior notes with a rate of 4.000%, due 2031 1,100 — Finance lease liabilities with a weighted average rate of 5.85%, due 2021 to 2030 252 245 Other debt with a rate of 3.08%, due 2026 19 17 10,580 8,076 Less: unamortized deferred financing costs and discount (93) (83) Less: current maturities of long-term debt (1) (56) (37) $ 10,431 $ 7,956 ____________ (1) Represents current maturities of finance lease liabilities. Senior Notes As part of our response to the COVID-19 pandemic, we completed financing transactions during 2020 and early 2021, in an effort to extend the maturities and reduce the interest rates of our outstanding debt, as well as to bolster liquidity and add to our available cash. In February 2021, we issued $1.5 billion aggregate principal amount of 3.625% Senior Notes due 2032 and used the net proceeds from the issuance, together with available cash, to redeem all $1.5 billion in aggregate principal amount of our outstanding 5.125% Senior Notes due 2026 (the "2026 Senior Notes") and to pay the related redemption premium and all related fees and expenses; see Note 22: "Subsequent Events" for additional information. In December 2020, we issued $800 million aggregate principal amount of 3.750% Senior Notes due 2029 (the "2029 Senior Notes") and $1.1 billion aggregate principal amount of 4.000% Senior Notes due 2031 (the "2031 Senior Notes") and incurred $27 million of debt issuance costs. Interest on the 2029 Senior Notes and the 2031 Senior Notes is payable semi-annually in arrears on May 1 and November 1 of each year, beginning May 1, 2021. We used the net proceeds from the issuances, together with available cash, to redeem all $1.0 billion in aggregate principal amount of our outstanding 4.250% Senior Notes due 2024 and all $900 million in aggregate principal amount of our outstanding 4.625% Senior Notes due 2025, plus accrued and unpaid interest. In connection with these redemptions, we paid redemption premiums totaling $31 million and accelerated the recognition of unamortized deferred financing costs of $17 million, which were both included in loss on debt extinguishments in our consolidated statement of operations for the year ended December 31, 2020. 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. In June 2019, we issued $1.0 billion aggregate principal amount of 4.875% Senior Notes due 2030. We used a portion of the net proceeds from the issuance to repay $500 million outstanding on our senior secured term loan facility (the "Term Loans") and to repay $225 million outstanding under our senior secured revolving credit facility (the "Revolving Credit Facility"). See "Senior Secured Credit Facilities" below for additional information. In April 2018, we issued the 2026 Senior Notes and used the net proceeds, together with borrowings under our Revolving Credit Facility and available cash, to repurchase $1,171 million of shares of our common stock from HNA Tourism Group Co., Ltd and repay $500 million outstanding on our Term Loans. See "Senior Secured Credit Facilities" below for additional information. The 5.375% 2025 Senior Notes, the 2026 Senior Notes, the 4.875% Senior Notes due 2027, the 2028 Senior Notes, the 2029 Senior Notes, the 4.875% Senior Notes due 2030 and the 2031 Senior Notes 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"), an indirect wholly owned subsidiary of the Parent, which is the issuer of all of the series of Senior Notes. Senior Secured Credit Facilities Our senior secured credit facilities consist of the $1.75 billion Revolving Credit Facility and 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 uncertainty in the global markets resulting from the COVID-19 pandemic, we fully drew down on our Revolving Credit Facility. As of December 31, 2020, in addition to our outstanding debt balance of $1.69 billion, we also had $60 million of letters of credit outstanding under our Revolving Credit Facility. In January 2021, we repaid $250 million of the outstanding balance under our Revolving Credit Facility; see Note 22: "Subsequent Events" for additional information. In addition to the repayments of the Term Loans discussed above, we repaid $300 million outstanding under our Term Loans in 2018. During the years ended December 31, 2019 and 2018, we recognized $10 million and $8 million, respectively, of unamortized deferred financing costs and discount and fees, as applicable, related to amendments and repayments of the Term Loans, which were included in other non-operating income (loss), net in our consolidated statements of operations. Debt Maturities The contractual maturities of our long-term debt as of December 31, 2020 were as follows: Year (in millions) 2021 $ 56 2022 29 2023 23 2024 1,713 2025 524 Thereafter 8,235 $ 10,580 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other Liabilities Other long-term liabilities were as follows: December 31, 2020 2019 (in millions) Other long-term tax liabilities $ 400 $ 369 Pension obligations 143 134 Deferred employee compensation and benefits 116 118 Insurance reserves (1) 189 178 Other 141 84 $ 989 $ 883 ____________ (1) The long-term portion of obligations related to insurance claims are expected to be satisfied, on average, over the next three years. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below: December 31, 2020 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 2,270 $ — $ 2,270 $ — Restricted cash equivalents 9 — 9 — Liabilities: Long-term debt (1) 10,216 6,366 — 4,293 Interest rate swaps 82 — 82 — 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 of our VIEs. 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 consolidated balance sheets. Our nonfinancial assets that were measured at fair value on a non-recurring basis during the year ended December 31, 2020, and for which we recorded impairment losses, were primarily related to certain hotel properties under operating and finance leases and goodwill, all of which were part of our ownership reporting unit. See Note 6: "Goodwill and Intangible Assets" and Note 12: "Leases" for additional information on these impairment losses. The fair values, which were determined using significant Level 3 unobservable inputs, were as follows: (in millions) Goodwill (1) $ — Other intangible assets, net (2) — Operating lease right-of-use assets (3) 52 Property and equipment, net (4) 9 ____________ (1) Amount was measured at December 31, 2020. (2) Amount was measured at March 31, 2020. (3) Includes $24 million that was measured at March 31, 2020, $7 million that was measured at June 30, 2020 and $21 million that was measured at December 31, 2020. Amounts that were remeasured are excluded from the original measurement date and are included within the measurement date of their remeasurement. Additionally, certain of these assets were fully impaired at March 31, 2020, June 30, 2020 and December 31, 2020, which were the measurement dates. (4) Includes $4 million that was measured at March 31, 2020 and $5 million that was measured at December 31, 2020. Amounts that were remeasured are excluded from the original measurement date and are included within the measurement date of their remeasurement. Additionally, certain of these assets were fully impaired at March 31, 2020 and September 30, 2020, which were the measurement dates. The prolonged effects of the COVID-19 pandemic resulting from extended travel restrictions and continued declines in demand, including the re-emergence of government travel restrictions and hotel suspensions in late 2020, continued to adversely affect our expected future cash flows, most significantly for our ownership reporting unit, which includes hotel leases, many with fixed rent, and for which we are typically responsible for funding hotel operating losses. This caused us to reevaluate the cost structures for our lease agreements, including fixed rent terms, and the future operations of our ownership reporting unit. As such, during the fourth quarter of 2020, we performed a quantitative analysis of goodwill for potential impairment and we fully impaired the goodwill attributable to our ownership reporting unit by recognizing impairment losses of $104 million during the year ended December 31, 2020. We estimated the fair value of the reporting unit using discounted cash flow analyses, which included an estimate of the impact of the COVID-19 pandemic on the reporting unit's expected future cash flows, a stabilized growth rate of 2.5 percent after recovery and the present value of the reporting unit's terminal value. A discount rate of 12.0 percent was used for the fair value of the ownership reporting unit, which reflects a market rate of return. We recognized impairment losses related to certain hotel properties under operating and finance leases during each reporting period in 2020 as short-term expected results for certain leased hotels declined from estimates used in the previous period's assessment of recoverability, generally due to extensions of government restrictions and additional visibility into expected hotel customer engagement at such properties. We assessed recoverability of any related lease intangible asset, operating and finance lease ROU asset and property and equipment using estimates of undiscounted net cash flows, and concluded that the carrying values of the assets for these certain hotels were not fully recoverable. We then estimated the fair value of these assets using discounted cash flow analyses. Both our undiscounted cash flow estimates used for assessment of recoverability and our discounted cash flows 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 on these assets of $139 million during the year ended December 31, 2020. The fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of December 31, 2020 and 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Leases | Leases 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 December 31, 2020, we leased 48 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 year ended December 31, 2020, we recognized $65 million and $4 million of impairment losses related to certain operating lease and finance lease ROU assets, respectively; see Note 11: "Fair Value Measurements" for additional information. Supplemental balance sheet information related to leases was as follows: December 31, 2020 2019 (dollars in millions) Operating leases: Operating lease right-of-use assets $ 772 $ 867 Accounts payable, accrued expenses and other 170 133 Operating lease liabilities 971 1,037 Finance leases: Property and equipment, net $ 40 $ 52 Current maturities of long-term debt 56 37 Long-term debt 196 208 Weighted average remaining lease term: Operating leases 12.3 years 12.8 years Finance leases 7.8 years 8.6 years Weighted average discount rate: Operating leases 3.82 % 3.76 % Finance leases 5.85 % 5.83 % The components of lease expense were as follows: Year Ended December 31, 2020 2019 (in millions) Operating lease expense for fixed payments $ 129 $ 144 Finance lease expense: Amortization of ROU assets 26 30 Interest on lease liabilities 14 14 Variable lease expense (1) 17 168 ____________ (1) Includes amounts related to variable operating lease terms and interest payments on finance leases. Lease expense for our operating leases for the year ended December 31, 2018 included $225 million of fixed lease expense and $142 million of variable lease expense. Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2020 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 149 $ 187 Financing cash flows from finance leases 26 42 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 33 48 Finance leases 20 61 Our future minimum lease payments as of December 31, 2020 were as follows: Operating Finance Year (in millions) 2021 $ 210 $ 68 2022 156 42 2023 140 33 2024 118 31 2025 117 32 Thereafter 724 111 Total minimum lease payments 1,465 317 Less: imputed interest (324) (65) Total lease liabilities $ 1,141 $ 252 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision (Benefit) Our income tax provision (benefit) includes federal, state and foreign income taxes payable. The domestic and foreign components of income (loss) before income taxes were as follows: Year Ended December 31, 2020 2019 2018 (in millions) U.S. income (loss) before tax $ (267) $ 867 $ 881 Foreign income (loss) before tax (657) 377 197 Income (loss) before income taxes $ (924) $ 1,244 $ 1,078 The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2020 2019 2018 (in millions) Current: Federal $ (6) $ 190 $ 210 State (32) 60 53 Foreign 69 128 60 Total current 31 378 323 Deferred: Federal (102) (61) (52) State (34) (5) (14) Foreign (99) 46 52 Total deferred (235) (20) (14) Total provision (benefit) for income taxes $ (204) $ 358 $ 309 Reconciliations of our tax provision (benefit) at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2020 2019 2018 (in millions) Statutory U.S. federal income tax provision (benefit) $ (194) $ 261 $ 226 State income taxes, net of U.S. federal income tax benefit (24) 47 37 Impact of foreign operations (106) 31 26 Goodwill impairment losses 22 — — Tax rate differential on U.S. federal net operating loss carryback (14) — — Changes in deferred tax asset valuation allowances 116 13 (6) Provision for uncertain tax positions 7 16 16 Effects of the TCJ Act — — 13 Corporate restructuring — — 9 Other, net (11) (10) (12) Provision (benefit) for income taxes $ (204) $ 358 $ 309 Corporate Restructuring During the year ended December 31, 2018, our controlled foreign corporations ("CFC") distributed the stock of certain subsidiaries (the "Distributions"). Subsequent to the Distributions, the distributed subsidiaries were included in our U.S. federal and state income tax filings. As a result of the Distributions, we incurred deferred income tax expense of $9 million for the year ended December 31, 2018, including: (i) recording U.S. deferred tax liabilities related to the distributed subsidiaries of $12 million and (ii) remeasuring our existing deferred tax assets and liabilities and other tax liabilities at the effective tax rates at which they will reverse in future periods, resulting in a reduction of liabilities of $3 million. Tax Cuts and Jobs Act of 2017 During the year ended December 31, 2018, we made adjustments to provisional amounts that were recorded for the TCJ Act as of December 31, 2017, which included a tax benefit of $10 million related to the remeasurement of U.S. deferred tax assets and liabilities, a tax benefit of $2 million related to the transition tax applied to foreign earnings and $31 million of deferred tax liabilities related to CFC outside basis. All adjustment amounts were recognized in income tax expense during the year ended December 31, 2018, and our accounting for the effects of the TCJ Act was complete as of December 31, 2018. Deferred Income Taxes Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The tax effects of the temporary differences and carryforwards that give rise to our net deferred taxes were as follows: December 31, 2020 2019 (in millions) Deferred tax assets: Net tax loss carryforwards and carrybacks $ 593 $ 386 Compensation 135 138 Reserves 71 33 Operating and finance lease liabilities 382 404 Deferred income 271 260 Foreign tax credit carryforwards 48 49 Other 153 51 Total gross deferred tax assets 1,653 1,321 Less: valuation allowance (654) (501) Deferred tax assets 999 820 Deferred tax liabilities: Brands (1,147) (1,133) Finite-lived intangible assets (74) (140) Investment in foreign subsidiaries (26) (32) Operating and finance lease ROU assets (207) (210) Deferred tax liabilities (1,454) (1,515) Net deferred taxes $ (455) $ (695) As of December 31, 2020, we had: (i) a consolidated federal net operating loss carryback of $102 million, which resulted in deferred tax assets of $36 million; (ii) state net operating loss carryforwards and carrybacks of $27 million, which resulted in deferred tax assets of $2 million; (iii) separate return limitation year loss carryforwards of $125 million, which resulted in federal deferred tax assets of $25 million and state deferred tax assets of $6 million; and (iv) foreign net operating loss carryforwards and carrybacks of $2.1 billion and other foreign tax loss carryforwards of $101 million, resulting in deferred tax assets of $502 million and $22 million, respectively. Approximately $36 million of our deferred tax assets as of December 31, 2020 related to net operating loss carryforwards that will expire between 2021 and 2040 with less than $1 million of that amount expiring in 2021. Approximately $504 million of our deferred tax assets as of December 31, 2020 resulted from net operating loss carryforwards that are not subject to expiration. Approximately $53 million of our deferred tax assets as of December 31, 2020 resulted from other tax loss carryforwards that are not subject to expiration. We believe that it is more likely than not that the benefit from certain federal, state and foreign tax loss carryforwards will not be realized. In recognition of this assessment, we provided a valuation allowance of $451 million as of December 31, 2020 on the deferred tax assets relating to these tax loss carryforwards. During the year ended December 31, 2020, we generated net operating losses in various jurisdictions and recorded a deferred tax benefit of $157 million for net operating losses, reduced by valuation allowances of $31 million, which resulted in a net deferred tax benefit of $126 million. We have also provided valuation allowances of $62 million on other deferred tax assets generated during the year. These losses have also caused a change in the expected realizability of existing deferred tax assets and, as a result, we have provided valuation allowances of $23 million on deferred tax assets that existed at the beginning of the year. Management determined whether we were more likely than not to realize the benefit of these assets by considering all available positive and negative evidence to determine whether sufficient future taxable income will be generated to permit the use of the deferred tax assets. Additionally, revaluations of certain existing deferred tax assets and their associated valuation allowances due to tax rate changes, foreign currency exchange rate changes and other changes resulted in no net income tax expense or benefit in the current year, but increased total valuation allowances by $37 million. Overall, our total valuation allowance increased by $153 million during the year ended December 31, 2020. Tax Uncertainties 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 December 31, 2020, we remain subject to federal and state examinations of our income tax returns for tax years from 2005 through 2019 and foreign examinations of our income tax returns for tax years from 1996 through 2019. Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2020 2019 2018 (in millions) Balance at beginning of year $ 395 $ 318 $ 283 Additions for tax positions related to prior years 45 67 37 Additions for tax positions related to the current year 56 13 16 Reductions for tax positions related to prior years (13) (3) (15) Settlements (37) 1 — Lapse of statute of limitations (1) (2) (3) Currency translation adjustment 6 1 — Balance at end of year $ 451 $ 395 $ 318 The changes to our unrecognized tax benefits during the year ended December 31, 2020 primarily related to uncertainty regarding prior year income tax returns in certain foreign jurisdictions where we operate, as well as the addition of reserves related to Hilton Honors. These changes were partially offset by reductions and settlements, primarily relating to the conclusion of certain state audits. The changes to our unrecognized tax benefits during the year ended December 31, 2019 were primarily related to uncertainty regarding affirmative refund claims submitted to the IRS during 2019, as well as the addition of reserves related to Hilton Honors. The changes to our unrecognized tax benefits during the year ended December 31, 2018 were primarily related to uncertainty regarding the calculations of tax deductions claimed in income tax returns filed during the year, as well as the addition of reserves related to Hilton Honors. We recognize interest and penalties accrued related to uncertain tax positions in income tax benefit (expense) in our consolidated statements of operations. During the years ended December 31, 2020, 2019 and 2018, we recognized income tax expense related to interest and penalties of $13 million, $12 million and $6 million, respectively, in our consolidated statements of operations. As of December 31, 2020 and 2019, we had accrued approximately $65 million and $52 million, respectively, for interest and penalties related to our unrecognized tax benefits in our consolidated balance sheets. Included in the balances of unrecognized tax benefits as of December 31, 2020 and 2019 were $400 million and $380 million, respectively, associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate. As a result of the expected resolution of examination issues with federal, state and foreign tax authorities, we believe it is reasonably possible that during the next 12 months, the amount of unrecognized tax benefits will decrease by up to $82 million. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor multiple domestic and international employee benefit plans (the "pension plans"), and the benefits are based upon years of service and compensation. The employee benefit plan in the U.S. (the "Domestic Plan") covers certain employees not earning union benefits. This plan was frozen for participant benefit accruals in 1996; therefore, the projected benefit obligation is equal to the accumulated benefit obligation. The plan assets will be used to pay benefits due to employees for service through December 31, 1996. Since employees have not accrued additional benefits from that time, we do not utilize salary or pension inflation assumptions in calculating our benefit obligation for the Domestic Plan. The annual measurement date for the Domestic Plan is December 31. The employee benefit plans covering many of our international employees include: (i) a plan that covers workers in the United Kingdom (the "U.K. Plan"), which was frozen to further service accruals in 2013 and (ii) a number of smaller plans that cover workers in various countries around the world (the "International Plans"). The annual measurement date for all of these plans is December 31. We are required to recognize the funded status of our pension plans, which is the difference between the fair value of plan assets and the projected benefit obligations, in our consolidated balance sheets and make corresponding adjustments for changes in the value through accumulated other comprehensive income (loss), net of taxes. The following table presents the projected benefit obligation, fair value of plan assets, funded status and accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2020 2019 2020 2019 2020 2019 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 382 $ 357 $ 445 $ 375 $ 87 $ 83 Service cost — — 3 2 1 1 Interest cost 10 14 8 10 2 2 Prior service credit (1) — — — (3) — — Actuarial loss 31 37 78 62 2 6 Settlements and curtailments (1) (2) — — — (1) Effect of foreign currency exchange rates — — 22 13 3 — Benefits paid (23) (24) (15) (14) (5) (4) Benefit obligation at end of year $ 399 $ 382 $ 541 $ 445 $ 90 $ 87 Change in Plan Assets: Fair value of plan assets at beginning of year $ 318 $ 274 $ 404 $ 340 $ 68 $ 63 Actual return on plan assets, net of expenses 41 53 66 57 3 6 Employer contributions 8 17 10 9 2 4 Settlements (1) (2) — — — (1) Effect of foreign currency exchange rates — — 20 12 2 — Benefits paid (23) (24) (15) (14) (5) (4) Fair value of plan assets at end of year 343 318 485 404 70 68 Funded status at end of year (underfunded) (56) (64) (56) (41) (20) (19) Accumulated benefit obligation $ 399 $ 382 $ 541 $ 445 $ 90 $ 87 ____________ (1) Relates to U.K. pension equalization requirements. Amounts recognized in the consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2020 2019 2020 2019 2020 2019 (in millions) Other non-current assets $ — $ — $ — $ — $ 11 $ 10 Other liabilities (56) (64) (56) (41) (31) (29) Net amount recognized $ (56) $ (64) $ (56) $ (41) $ (20) $ (19) Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan International Plans 2020 2019 2018 2020 2019 2018 2020 2019 2018 (in millions) Net actuarial loss (gain) $ 4 $ (3) $ 22 $ 41 $ 29 $ (14) $ 3 $ 3 $ 3 Prior service cost (credit) (4) (4) (4) — (3) 4 — — — Amortization of net loss (4) (3) (3) (4) (3) (4) (1) (1) (1) Net amount recognized $ (4) $ (10) $ 15 $ 37 $ 23 $ (14) $ 2 $ 2 $ 2 The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2020 2019 2018 2020 2019 2018 2020 2019 2018 (in millions) Service cost $ 3 $ 6 $ 6 $ 3 $ 2 $ 3 $ 1 $ 2 $ 2 Interest cost 10 14 12 8 10 9 2 2 2 Expected return on plan assets (17) (19) (19) (20) (19) (21) (3) (3) (3) Amortization of prior service cost 4 4 3 — — — — — — Amortization of net loss 4 3 3 4 3 4 1 1 1 Net periodic pension cost (credit) $ 4 $ 8 $ 5 $ (5) $ (4) $ (5) $ 1 $ 2 $ 2 The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2020 2019 2020 2019 2020 2019 Discount rate 2.4 % 3.2 % 1.3 % 2.1 % 1.8 % 2.2 % Salary inflation N/A N/A 2.1 1.6 2.2 2.2 Pension inflation N/A N/A 2.7 2.8 1.8 1.9 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate 3.2 % 4.3 % 3.6 % 2.1 % 3.1 % 2.6 % 2.0 % 3.1 % 2.9 % Expected return on plan assets 6.3 7.0 7.0 5.0 5.5 5.5 2.7 4.3 4.6 Salary inflation N/A N/A N/A 1.6 1.8 1.8 2.2 2.2 2.2 Pension inflation N/A N/A N/A 2.8 3.0 3.0 1.9 1.8 1.8 The investment objectives for the various plans are preservation of capital, current income and long-term growth of capital. All plan assets are managed by outside investment managers and do not include investments in Hilton stock. Asset allocations are reviewed periodically by the investment managers. Expected long-term returns on plan assets are determined using historical performance for debt and equity securities held by our plans, actual performance of plan assets and current and expected market conditions. Expected returns are formulated based on the target asset allocation. The target asset allocation for the Domestic Plan, as a percentage of total plan assets, as of December 31, 2020 and 2019, was 80 percent in funds that invest in equity securities and 20 percent in funds that invest in debt securities. The target asset allocation for the U.K. Plan and the International Plans, as a percentage of total plan assets, as of December 31, 2020 and 2019, was 75 percent in funds that invest in equity and debt securities and 25 percent in bond funds. The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category: December 31, 2020 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 45 $ 12 Equity funds — 75 3 Bond funds 2 43 — Alternative investments — 105 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 74 — Common collective trusts 341 — 45 Alternative investments — 87 — Other — 56 — $ 343 $ 485 $ 70 December 31, 2019 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 25 $ 12 Equity funds — 61 2 Bond funds 2 40 — Alternative investments — 169 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 54 — Common collective trusts 316 — 44 Other — 55 — $ 318 $ 404 $ 68 ____________ (1) Certain investments are measured at net asset value per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. We expect to contribute approximately $15 million, $10 million and $3 million to the Domestic Plan, the U.K. Plan and the International Plans, respectively, in 2021. As of December 31, 2020, the benefits expected to be paid in the next five years and in the aggregate for the five years thereafter were as follows: Domestic Plan U.K. Plan International Plans Year (in millions) 2021 $ 33 $ 15 $ 13 2022 26 16 6 2023 26 16 6 2024 26 17 6 2025 26 17 5 2026-2030 118 88 26 $ 255 $ 169 $ 62 In January 2007, the Domestic Plan and plans maintained for certain domestic hotels currently or formerly managed by us were merged into a multiple employer plan. As of December 31, 2020 and 2019, the multiple employer plan had combined plan assets of $372 million and $345 million, respectively, and a projected benefit obligation of $426 million and $407 million, respectively. We also have various employee defined contribution investment plans whereby we contribute matching percentages of employee contributions. The aggregate expense under these plans totaled $16 million, $17 million and $16 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized share-based compensation expense of $97 million, $154 million and $127 million during the years ended December 31, 2020, 2019 and 2018, respective ly, which included amounts reimbursed by hotel owners. The total tax benefit recognized related to share-based compensation expense was $35 million , $41 million and $42 million for the years ended December 31, 2020, 2019 and 2018, respectively . As of December 31, 2020 and 2019, we ac cr ued $12 million and $16 million, respectively, in accounts payable, accrued expenses and other in our consolidated balance sheets for certain awards settled in cash. The expense recognized for the year ended December 31, 2020 includes the expense recognized as a result of the modifications of our awards with performance conditions, as described in further detail below, and is net of the reversal of expenses recognized in prior periods for certain of the performance awards, as a result of the determination that they were no longer probable of achievement, prior to the modifications. As of December 31, 2020, unrecognized compensation costs for unvested awards under the 2017 Plan were approximately $136 million, which are expected to be recognized over a weighted-average period of 1.6 years on a straight-line basis. As of December 31, 2020, there were 12.9 million 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 The following table provides information about our RSU grants: Year Ended December 31, 2020 2019 2018 Number of shares granted (in thousands) 942 963 912 Weighted average grant date fair value per share $ 93.48 $ 83.47 $ 79.31 Aggregate intrinsic value of shares vested (in millions) $ 97 $ 92 $ 123 The following table summarizes the activity of our RSUs during the year ended December 31, 2020: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2019 1,780 $ 77.35 Granted 942 93.48 Vested (984) 74.42 Forfeited (245) 86.99 Outstanding as of December 31, 2020 1,493 88.55 Options The following table provides information about our option grants: Year Ended December 31, 2020 2019 2018 (in thousands, except per share data) Number of options granted 755 758 612 Weighted average exercise price per share $ 93.33 $ 83.11 $ 79.36 Weighted average grant date fair value per share $ 21.47 $ 21.08 $ 23.72 The weighted average grant date fair value per share of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2020 2019 2018 Expected volatility (1) 23.69 % 23.51 % 27.91 % Dividend yield (2) 0.55 % 0.81 % 0.74 % Risk-free rate (3) 0.96 % 2.47 % 2.73 % Expected term (in years) (4) 6.0 6.0 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 terms of the options. The following table summarizes the activity of our options during the year ended December 31, 2020: Number of Shares Weighted Average Exercise Price per Share (in thousands) Outstanding as of December 31, 2019 2,828 $ 65.72 Granted 755 93.33 Exercised (355) 60.09 Forfeited (201) 86.55 Outstanding as of December 31, 2020 (1) 3,027 71.88 Exercisable as of December 31, 2020 (2) 1,764 60.31 ____________ (1) The aggregate intrinsic value was $107 million and the weighted average remaining contractual term was 7.0 years. (2) The aggregate intrinsic value was $83 million and the weighted average remaining contractual term was 5.8 years. Performance Shares In December 2020, we modified our outstanding performance shares in response to the COVID-19 pandemic and its negative impact on the hospitality industry and, ultimately, the Company's performance. The modifications were structured to reward for results achieved prior to the COVID-19 pandemic, retain senior business leaders and incentivize for the recovery efforts via metrics most meaningful in assessing our performance during our recovery from the negative impact of the pandemic. Under the modified terms, which include new performance measures, eligible employees will receive the greater of the shares achieved based on the original or the modified terms, with the exception of certain executives who will receive the number of shares achieved under the modified terms. The modified terms did not change the vesting schedules of the original awards. A total of 1,020,000 performance shares were modified, including 392,000 from the 2018 grant, 340,000 from the 2019 grant and 288,000 from the 2020 grant, with a modification date fair value per share of $102.95. Under the modified terms, a portion of the awards vests based on service conditions and the remaining portion of the awards were equally distributed to vest based on four new performance measures. As of December 31, 2020, these four new performance measures were probable of achievement and we recognized $44 million of compensation expense during the year ended December 31, 2020 based on the target achievement percentage. Further, we expect to recognize $62 million of additional expense from the modifications over the remaining terms of the awards. See Note 2: "Basis of Presentation and Summary of Significant Accounting Policies" for additional information regarding the performance measures of the original grants and the new performance measures under the modified terms. The following table provides information about our original performance share grants: Year Ended December 31, 2020 2019 2018 (1) EBITDA CAGR: Number of shares granted (in thousands) 174 192 183 Weighted average grant date fair value per share $ 93.33 $ 83.11 $ 79.36 Aggregate intrinsic value of shares vested (in millions) $ 29 $ — $ — FCF CAGR: Number of shares granted (in thousands) 174 192 183 Weighted average grant date fair value per share $ 93.33 $ 83.11 $ 79.36 Aggregate intrinsic value of shares vested (in millions) 29 $ — $ — ____________ (1) The aggregate intrinsic value of performance shares vested was less than $1 million . The following table summarizes the activity of our performance shares during the year ended December 31, 2020: EBITDA CAGR (1) FCF CAGR (1) Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) (in thousands) Outstanding as of December 31, 2019 527 $ 74.46 527 $ 74.46 Granted 174 93.33 174 93.33 Performance achievement share adjustments (2) 218 64.29 218 64.29 Vested (316) 58.45 (316) 58.45 Forfeited (93) 84.78 (93) 84.78 Outstanding as of December 31, 2020 510 84.57 510 84.57 ____________ (1) This performance measure relates to the original awards and, as discussed above and in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies," we modified our outstanding performance awards in December 2020 whereby the achievement for the performance-based portion of our outstanding awards will be measured under four new performance measures, which include: (i) Adjusted EBITDA, (ii) FCF per share, (iii) NUG CAGR and (iv) RevPAR index growth. (2) Reflects the number of shares achieved above target, based on actual performance, and includes the effect of the modifications; see above for further information. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings (Loss) Per Share The following table presents the calculation of basic and diluted earnings (loss) per share ("EPS"): Year Ended December 31, 2020 2019 2018 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ (715) $ 881 $ 764 Denominator: Weighted average shares outstanding 277 287 302 Basic EPS $ (2.58) $ 3.07 $ 2.53 Diluted EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ (715) $ 881 $ 764 Denominator: Weighted average shares outstanding (1) 279 290 305 Diluted EPS $ (2.56) $ 3.04 $ 2.50 ____________ (1) Approximately 2 million, 1 million and 1 million share-based compensation awards were excluded from the computation of diluted EPS for the years ended December 31, 2020, 2019 and 2018, respectively, because their effect would have been anti-dilutive under the treasury stock method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment (2) Cash Flow Hedge Adjustment (3) Total (in millions) Balance as of December 31, 2017 $ (513) $ (229) $ 1 $ (741) Other comprehensive income (loss) before reclassifications (70) (18) 17 (71) Amounts reclassified from accumulated other comprehensive loss — 9 5 14 Net current period other comprehensive income (loss) (70) (9) 22 (57) Cumulative effect of the adoption of ASU 2018-02 38 (22) — 16 Balance as of December 31, 2018 (545) (260) 23 (782) Other comprehensive loss before reclassifications (5) (17) (35) (57) Amounts reclassified from accumulated other comprehensive loss 1 8 (10) (1) Net current period other comprehensive loss (4) (9) (45) (58) Balance as of December 31, 2019 (549) (269) (22) (840) Other comprehensive income (loss) before reclassifications 33 (30) (46) (43) Amounts reclassified from accumulated other comprehensive loss 5 10 8 23 Net current period other comprehensive income (loss) 38 (20) (38) (20) Balance as of December 31, 2020 $ (511) $ (289) $ (60) $ (860) ____________ (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 in loss on foreign currency transactions in our consolidated statements of operations. (2) Amounts reclassified related to the amortization of prior service costs and amortization of net loss and were recognized in other non-operating income (loss), net in our consolidated statements of operations. (3) Amounts reclassified related to interest rate swaps, including interest rate swaps that were dedesignated and subsequently settled, and forward contracts that hedge our foreign currency denominated fees and were recognized in interest expense and franchise and licensing fees, base and other management fees and other revenues from managed and franchised properties, respectively, in our consolidated statements of operations. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business segments | Business Segments We are a hospitality company with operations organized in two distinct operating segments: (i) management and franchise and (ii) ownership. These segments are managed and reported separately because of their distinct economic characteristics. The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels that license our brands and where we provide other prescribed services, but where the day-to-day services of the hotels are operated or managed by someone other than us. This segment also earns licensing fees from HGV and strategic partnerships, including co-branded credit card arrangements, for the right to use certain Hilton marks and IP, as well as fees for managing properties in our ownership segment. As of December 31, 2020, this segment included 715 managed hotels and 5,646 franchised hotels consisting of 990,857 total rooms. As a result of the COVID-19 pandemic, approximately 1,245 hotels in our management and franchise segment had temporarily suspended operations at some point in time during the year ended December 31, 2020, of which, all but approximately 220 had reopened as of December 31, 2020. As of December 31, 2020, our ownership segment included 61 properties totaling 19,400 rooms. The segment comprised 53 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. As a result of the COVID-19 pandemic, approximately 35 hotels in our ownership segment, the majority of which are located in Europe, had temporarily suspended operations at some point in time during the year ended December 31, 2020. Although all of these hotels had reopened at some point during the year, additional and reinstated restrictions in Europe during the fourth quarter of 2020, resulted in the re-suspension of operations at approximately 10 of these hotels. 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: Year Ended December 31, 2020 2019 2018 (in millions) Franchise and licensing fees $ 956 $ 1,691 $ 1,537 Base and other management fees (1) 144 394 385 Incentive management fees 38 230 235 Management and franchise 1,138 2,315 2,157 Ownership 421 1,422 1,484 Segment revenues 1,559 3,737 3,641 Amortization of contract acquisition costs (29) (29) (27) Other revenues 73 101 98 Direct reimbursements from managed and franchised properties (2) 1,375 3,110 2,881 Indirect reimbursements from managed and franchised properties (2) 1,332 2,576 2,357 Intersegment fees elimination (1) (3) (43) (44) Total revenues $ 4,307 $ 9,452 $ 8,906 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our consolidated statements of operations. The following table presents operating income (loss) for our reportable segments, reconciled to consolidated income (loss) before income taxes: Year Ended December 31, 2020 2019 2018 (in millions) Management and franchise (1) $ 1,138 $ 2,315 $ 2,157 Ownership (1) (202) 125 108 Segment operating income 936 2,440 2,265 Amortization of contract acquisition costs (29) (29) (27) Other revenues, less other expenses 13 29 47 Net other expenses from managed and franchised properties (397) (77) (85) Depreciation and amortization (331) (346) (325) General and administrative (311) (441) (443) Reorganization costs (41) — — Impairment losses (258) — — Gain on sale of assets, net — 81 — Operating income (loss) (418) 1,657 1,432 Interest expense (429) (414) (371) Loss on foreign currency transactions (27) (2) (11) Loss on debt extinguishments (48) — — Other non-operating income (loss), net (2) 3 28 Income (loss) before income taxes $ (924) $ 1,244 $ 1,078 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. The following table presents total assets of our reportable segments, reconciled to consolidated amounts: December 31, 2020 2019 (in millions) Management and franchise $ 11,065 $ 11,455 Ownership 1,242 1,610 Corporate and other 4,448 1,892 $ 16,755 $ 14,957 Total revenues by country were as follows: Year Ended December 31, 2020 2019 2018 (in millions) U.S. $ 3,593 $ 7,423 $ 6,848 All other (1) 714 2,029 2,058 $ 4,307 $ 9,452 $ 8,906 ____________ (1) There are no countries included in this amount that individually represented more than 10 percent of total revenues for the years ended December 31, 2020, 2019 and 2018. Property and equipment, net by country was as follows: December 31, 2020 2019 (in millions) U.S. $ 128 $ 145 United Kingdom 79 84 Japan 77 71 Germany 25 38 All other (1) 37 42 $ 346 $ 380 ____________ (1) There are no countries included in this amount that individually represented more than 10 percent of total property and equipment, net as of December 31, 2020 and 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We provide performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees do not require us to fund shortfalls, but allow for termination of the contract, 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 December 31, 2020, we had four performance guarantees, with expirations ranging from 2023 to 2039, and possible cash outlays totaling approximately $18 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, and we have included the impact of the COVID-19 pandemic on these hotels in our expectations of their future operating performance. As of December 31, 2020 and 2019, we accrued current liabilities of $7 million and $3 million, respectively, for our performance guarantees. We may enter into new contracts containing performance guarantees in the future, which could increase our possible cash outlays. As of December 31, 2020, we guaranteed a $10 million loan, which matures in 2023, for two hotels that we will franchise. Additionally, we have an agreement with the owner of a hotel that we manage to finance capital expenditures at the hotel. As of December 31, 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, which are based on the underlying hotel's sales or usage. As of December 31, 2020 and 2019, we had collected an aggregate of $5 million and $350 million in excess of amounts expended, respectively, across all programs. As a result of the adverse impact of the COVID-19 pandemic on our hotels' sales and, ultimately, the program fees we earn, our costs to operate these programs have outpaced the fees received, resulting in a material decline in our surplus position during the year ended December 31, 2020. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Interest paid during the years ended December 31, 2020, 2019 and 2018 was $433 million, $360 million and $330 million, respectively. Income taxes, net of refunds, paid during the years ended December 31, 2020, 2019 and 2018 were $79 million , $363 million and $288 million, respectively. Refer to Note 12: "Leases" for supplemental disclosures of cash flow information related to operating and finance leases. |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Selected Quarterly Financial Information The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments, including normal recurring items, considered necessary for a fair presentation of our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 1,920 $ 564 $ 933 $ 890 $ 4,307 Operating income (loss) 68 (302) 11 (195) (418) Net income (loss) 18 (432) (81) (225) (720) Net income (loss) attributable to Hilton stockholders 18 (430) (79) (224) (715) Basic earnings (loss) per share (1) $ 0.06 $ (1.55) $ (0.29) $ (0.81) $ (2.58) Diluted earnings (loss) per share (1) $ 0.06 $ (1.55) $ (0.28) $ (0.80) $ (2.56) 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,204 $ 2,484 $ 2,395 $ 2,369 $ 9,452 Operating income 312 478 519 348 1,657 Net income 159 261 290 176 886 Net income attributable to Hilton stockholders 158 260 288 175 881 Basic earnings per share (1) $ 0.54 $ 0.90 $ 1.01 $ 0.62 $ 3.07 Diluted earnings per share (1) $ 0.54 $ 0.89 $ 1.00 $ 0.61 $ 3.04 ____________ |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Senior Notes Offering In February 2021, HOC issued $1.5 billion aggregate principal amount of 3.625% Senior Notes due 2032, which 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 HOC, the issuer. Interest on the 2032 Senior Notes is payable semi-annually in arrears on February 15 and August 15 of each year, beginning August 15, 2021. We used the net proceeds from the issuance, together with available cash, to pay all related fees and expenses, estimated to be approximately $22 million, and to redeem all $1.5 billion in aggregate principal amount of our outstanding 2026 Senior Notes and pay the related redemption premium of $55 million. Upon redemption of the 2026 Senior Notes, we also accelerated the recognition of $14 million of related unamortized deferred financing costs. Repayment of Revolving Credit Facility In January 2021, we repaid $250 million of the outstanding debt balance under our Revolving Credit Facility using available cash, resulting in an outstanding debt balance of $1,440 million under our Revolving Credit Facility. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and other entities in which we have a controlling financial interest, including variable interest entities ("VIEs") for which we are the primary beneficiary. Non-wholly owned entities in which we have a controlling financial interest generally comprise majority owned real estate ownership enterprises. The determination of a controlling financial interest is based upon the terms of the governing agreements of the respective entities, including the evaluation of rights held by other ownership interests. If the entity is considered to be a VIE, we evaluate whether we are the primary beneficiary, and then consolidate those VIEs for which we have determined we are the primary beneficiary. If the entity in which we hold an interest does not meet the definition of a VIE, we evaluate whether we have a controlling financial interest through our voting interests in the entity. We consolidate entities other than VIEs when we own more than 50 percent of the voting shares of a company or otherwise have a controlling financial interest. We hold interests in VIEs, for which we are not the primary beneficiary, that may provide us with the option to acquire an additional interest in such an entity at a predetermined amount, if certain contingent events occur. In a circumstance that we exercise our option to acquire an additional interest in a VIE, we would 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. All material intercompany transactions and balances have been eliminated in consolidation. References in these financial statements to net income (loss) attributable to Hilton stockholders and Hilton stockholders' equity (deficit) do not include noncontrolling interests, which represent the third-party ownership interests of our consolidated, non-wholly owned entities and are reported separately. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with United States ("U.S") generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. In particular, the novel coronavirus ("COVID-19") pandemic had a material adverse impact on our results for the year ended December 31, 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 period, as well as upcoming periods, are unlikely to be comparable to past performance or indicative of future performance. |
Revenue Recognition | Revenue Recognition Revenues are primarily derived from management and franchise contracts with third-party hotel and resort owners, our owned and leased hotels, and from license agreements with Hilton Grand Vacations Inc. ("HGV") and strategic partnerships, including co-branded credit card arrangements. The majority of our performance obligations are a series of distinct goods or services, for which we receive variable consideration through our management and franchise fees or fixed consideration through our owned and leased hotels. We allocate the variable fees to the distinct services to which they relate applying the prescribed variable consideration allocation guidance, and we allocate fixed consideration to the related performance obligations based on their estimated standalone selling prices. We do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Additionally, we do not typically include extended payment terms in our contracts with customers. However, in response to cash flow deficiencies experienced by certain property owners resulting from the COVID-19 pandemic, we may amend certain contracts with customers to provide short-term payment relief, expecting that we collect most amounts outstanding in twelve months or less. Management and franchise revenues We identified the following performance obligations in connection with our management and franchise contracts: • IP licenses grant the right to access our hotel system IP, including brand IP, reservations systems and property management systems. • Hotel management services include providing day-to-day management services of the hotels for the property owners. • Development services include providing consultative services (e.g., design assistance and contractor selection) to the property owner to assist with the construction of the hotel prior to the hotel opening. • Pre-opening services include providing services (e.g., advertising, budgeting, e-commerce strategies and food and beverage testing) to the property owner to assist in preparing for the hotel opening. • Substantive rights for free or discounted goods or services to hotel guests are satisfied at the earlier point in time of either when the substantive right expires or the underlying free or discounted good or service is provided to the hotel guest. Each of the identified performance obligations is considered to be a series of distinct services transferred over time, except for the substantive rights for free or discounted goods or services to hotel guests performance obligation, which is satisfied at a point in time. While the underlying activities may vary from day to day, the nature of the commitments are the same each day, and the property owner can independently benefit from each day's services. Management and franchise fees are typically based on the sales or usage of the underlying hotel, with the exception of fixed upfront fees, which usually represent an insignificant portion of the transaction price. Franchise and licensing fees represent fees earned in connection with the licensing of one of our brands, usually under long-term contracts with the property owner, and may also include fees from a licensing agreement for the use of certain Hilton marks and IP, and include the following: • Royalty fees are generally based on a percentage of the hotel's monthly gross room revenue and, in some cases, may also include a percentage of gross food and beverage revenues and other revenues, as applicable. These fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Application, initiation and other fees are charged when: (i) new hotels enter our system; (ii) there is a change of ownership of a hotel; or (iii) contracts with properties already in our system are extended. These fees are typically fixed and collected upfront and are recognized as revenue over the term of the franchise contract. We do not consider this advance consideration to include a significant financing component, since it is used to protect us from the property owner failing to adequately complete some or all of its obligations under the contract, including establishing and maintaining the hotel in accordance with our standards. • Licensing fees are earned from: (i) a license agreement with HGV to use certain Hilton marks and IP in its timeshare business, which are typically billed monthly, and revenue is generally recognized at the same time the fees are billed and (ii) co-branded credit card arrangements, which are recognized as revenue when points for our guest loyalty program, Hilton Honors, are issued, generally as spend on the co-branded credit card occurs; see further discussion below under "Hilton Honors." Consideration paid or anticipated to be paid to incentivize hotel owners to enter into franchise contracts with us is amortized over the life of the applicable contract as a reduction to franchise and licensing fees. Management fees represent fees earned from hotels that we manage, usually under long-term contracts with the property owner, and include the following: • Base management fees are generally based on a percentage of the hotel's monthly gross revenue. Base fees are typically billed and collected monthly, and revenue is generally recognized as services are provided. • Incentive management fees are generally based on a percentage of the hotel's operating profits and, in some cases, may be subject to a stated return threshold to the property owner, normally over a one-calendar year period (the "incentive period"). Incentive fee revenue is recognized on a monthly basis, but only to the extent the cumulative fee earned does not exceed the probable fee for the incentive period. Incentive fee payment terms vary, but they are generally billed and collected monthly or annually upon completion of the incentive period. Consideration paid or anticipated to be paid to incentivize hotel owners to enter into management contracts with us is amortized over the life of the applicable contract as a reduction to base and other management fees. We do not estimate revenues expected to be recognized related to our unsatisfied performance obligations for our: (i) royalty fees, since they are considered sales-based royalty fees recognized as hotel room sales occur in exchange for licenses of our brand names over the terms of the franchise contracts and (ii) base management fees and incentive management fees, since they are allocated entirely to the wholly unsatisfied promise to transfer management services, which form part of a single performance obligation in a series, over the term of the individual management contract. Other revenues from managed and franchised properties represent amounts that are contractually reimbursed to us by property owners, either directly as costs are incurred or indirectly through fees billed and collected in advance related to certain costs and expenses of the related properties, and include the following: • Direct reimbursements include payroll and related costs and certain other operating costs of the managed and franchised properties' operations, which are contractually reimbursed to us by the property owners as expenses are incurred. Revenue is recognized based on the amount of expenses incurred by Hilton, which are presented as other expenses from managed and franchised properties in our consolidated statements of operations, that are then reimbursed to us by the property owner typically on a monthly basis, which results in no net effect on operating income (loss) or net income (loss). • Indirect reimbursements include marketing expenses and other expenses associated with our brand programs and shared services, which are paid from fees collected by Hilton from the managed and franchised properties. Indirect reimbursements are typically billed and collected monthly, based on the underlying hotel's sales or usage (such as gross room revenue or number of reservations processed), and revenue is generally recognized as services are provided. System implementation fees charged to property owners are deferred and recognized as revenue over the term of the management or franchise contract. The corresponding expenses are expensed as incurred and are presented as other expenses from managed and franchised properties in our consolidated statements of operations and are expected to equal the revenues earned from indirect reimbursements over time. The management and franchise fees and reimbursements from third-party hotel owners are allocated to the performance obligations and the distinct services to which they relate using their estimated standalone selling prices. The terms of the fees earned under the contract relate to a specific outcome of providing the services (e.g., hotel room sales) or to Hilton's efforts (e.g., costs) to satisfy the performance obligations. Using time as the measure of progress, we recognize fee revenue and indirect reimbursements in the period earned per the terms of the contract and revenue related to direct reimbursements in the period in which the cost is incurred. Owned and leased hotel revenues We identified the following performance obligations in connection with our owned and leased hotel revenues, for which revenue is recognized as the respective performance obligations are satisfied, which results in recognizing the amount we expect to be entitled to for providing the goods or services: • Cancellable room reservations or ancillary services are typically satisfied as the good or service is transferred to the hotel guest, which is generally when the room stay occurs. • Noncancellable room reservations and banquet or conference reservations represent a series of distinct goods or services provided over time and satisfied as each distinct good or service is provided, which is reflected by the duration of the reservation. • Substantive rights for free or discounted goods or services are satisfied at the earlier of when: (i) the substantive right expires or (ii) the underlying free or discounted good or service is provided to the hotel guest. • Other ancillary goods and services are purchased independently of the room reservation at standalone selling prices and are considered separate performance obligations, which are satisfied when the related good or service is provided to the hotel guest. • Components of package reservations for which each component could be sold separately to other hotel guests are considered separate performance obligations and are satisfied as set forth above. Owned and leased hotel revenues primarily consist of hotel room sales, revenue from accommodations sold in conjunction with other services (e.g., package reservations), food and beverage sales and other ancillary goods and services (e.g., parking) related to owned, leased and consolidated non-wholly owned hotel properties. Revenue is recognized when rooms are occupied or goods and services have been delivered or rendered, respectively. Payment terms typically align with when the goods and services are provided. Owned and leased hotel revenues are reduced upon issuance of Hilton Honors points for Hilton Honors members' paid stay transactions and are recognized when Hilton Honors points are redeemed for a free stay at an owned or leased hotel (see the "Hilton Honors" section below for additional information). Although the transaction prices of hotel room sales, goods and other services are generally fixed and based on the respective room reservation or other agreement, an estimate to reduce the transaction price is required if a discount is expected to be provided to the customer. For package reservations, the transaction price is allocated to the performance obligations within the package based on the estimated standalone selling prices of each component. On occasion, the hotel may also provide the customer with a substantive right to a free or discounted good or service in conjunction with a room reservation or banquet contract (e.g., free breakfast and free room night for every four nights booked). These substantive rights are considered separate performance obligations to which a portion of the transaction price is allocated based on the estimated standalone selling prices of the good or service, adjusted for the likelihood the hotel guest will exercise the right. Other revenues Other revenues include revenues generated by the incidental support of hotel operations for owned, leased, managed and franchised hotels, including purchasing operations, and other operating income. Purchasing revenues include any amounts received for vendor rebate arrangements that we participate in on behalf of the hotels in our system. Taxes and fees collected on behalf of governmental agencies We are required to collect certain taxes and fees from customers on behalf of governmental agencies and remit these back to the applicable governmental agencies on a periodic basis. We have a legal obligation to act as a collection agent. We do not retain these taxes and fees and, therefore, they are not included in our measurement of transaction prices. We have elected to |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original maturities, when purchased, of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents Restricted cash and cash equivalents include cash balances established as security for certain guarantees, ground rent and property tax escrows, insurance, including self-insurance collateral, and furniture, fixtures and equipment replacement reserves required under certain lease agreements. |
Allowance for Credit Losses | Allowance for Credit Losses An allowance for credit losses is provided on our financial instruments, primarily accounts receivable. Our expected credit losses are based on historical collection activity, the nature of the financial instrument, geographic considerations and current and forecasted business conditions. |
Goodwill | Goodwill Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. In connection with the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (the "Merger"), we recorded goodwill representing the excess purchase price over the fair value of the other identified assets and liabilities. We do not amortize goodwill, but rather evaluate goodwill for potential impairment on an annual basis or at other times during the year if indicators of impairment exist. We evaluate goodwill for potential impairment by comparing the carrying values of our reporting units to their fair values. Our reporting units are the same as our operating segments as described in Note 18: "Business Segments." At any time we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If we cannot determine qualitatively that the fair value is not more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The quantitative analysis is used to identify both the existence of impairment and the amount of the impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, including goodwill. The estimated fair value is based on internal projections of expected future cash flows and operating plans, as well as market conditions relative to the operations of our reporting units. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired; otherwise, an impairment loss would be recognized in our consolidated statements of operations in an amount equal to the excess of the carrying value over the fair value, limited to the total amount of goodwill allocated to that reporting unit. |
Brands | Brands We manage, franchise, own and lease hotels under our portfolio of brands. There are no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these brands and, accordingly, the useful lives of these brands are considered to be indefinite. At the time of the Merger, our portfolio consisted of Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Homewood Suites by Hilton and our timeshare brand, Hilton Grand Vacations. As a result of the Merger, these brands were assigned a fair value using the relief from royalty valuation approach or the excess earnings method, depending on the contract type. All brands that were launched subsequent to the Merger, which include LXR Hotels & Resorts, Canopy by Hilton, Tempo by Hilton, Signia by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Motto by Hilton, Tru by Hilton, and Home2 Suites by Hilton, were not assigned fair values, and we do not have any intangible assets for these brands recorded in our consolidated balance sheets. We evaluate our indefinite-lived brands intangible assets for impairment on an annual basis or at other times during the year if indicators of impairment exist. At any time we may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of the brand intangible asset is less than its carrying value. If we cannot determine qualitatively that the fair value is not more likely than not less than its carrying value, or if we decide to bypass the qualitative assessment, we perform a quantitative analysis. The estimated fair value is based on internal projections of expected future cash flows. If a brand intangible asset’s estimated current fair value is less |
Intangible Assets with Finite Useful Lives | Intangible Assets with Finite Useful Lives We have certain finite-lived intangible assets that were initially recorded at their fair value at the time of the Merger. These intangible assets consist of management contracts, franchise contracts, leases, certain proprietary technologies and our Hilton Honors guest loyalty program. As of December 31, 2020, the intangible assets related to these franchise contracts, U.S. management contracts and certain proprietary technologies were fully amortized. Additionally, we capitalize consideration paid to incentivize hotel owners to enter into management and franchise contracts with us as contract acquisition costs and the incremental costs to obtain or fulfill the contracts as development commissions and other, both of which are generally fixed. We also capitalize costs incurred to develop internal-use computer software and costs to acquire software licenses, as well as internal and external costs incurred in connection with the development of upgrades or enhancements that result in additional information technology functionality. Intangible assets with finite useful lives are amortized using the straight-line method over their respective estimated useful lives, which for contract acquisition costs and development commissions is the contract term, including any renewal periods that are at our sole option. These estimated useful lives are generally as follows: management contracts recorded at the Merger (13 to 16 years); management contract acquisition costs and development commissions (20 to 30 years); franchise contracts recorded at the Merger (12 to 13 years); franchise contract acquisition costs and development commissions (10 to 20 years); leases (12 to 35 years); Hilton Honors (16 years); and capitalized software costs (3 years). In our consolidated statements of operations, the amortization of these intangible assets, excluding contract acquisition costs, is included in depreciation and amortization expense, and the amortization of contract acquisition costs is recognized as a reduction to franchise and licensing fees and base and other management fees, depending on the contract type. Costs incurred prior to the acquisition of a contract, such as external legal costs, are expensed as incurred and included in general and administrative expenses in our consolidated statements of operations. Cash flows for contract acquisition costs and development commissions are included as operating activities in our consolidated statements of cash flows, and cash flows for capitalized software costs are included as investing activities. We review all finite-lived intangible assets for impairment on an annual basis or at other times during the year when indicators of impairment exist. We perform an analysis to determine the recoverability of the asset group carrying value by comparing the expected undiscounted future cash flows to the net carrying value of the asset group. If the carrying value of the asset group is not recoverable, we recognize an impairment loss for the excess carrying value over the estimated fair value in our consolidated statements of operations. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Costs of improvements that extend the economic life or improve service potential are also capitalized. Capitalized costs are depreciated over their estimated useful lives. Costs for normal repairs and maintenance are expensed as incurred. Refer to "Leases" below for information on right-of-use ("ROU") assets of finance leases, which are included in property and equipment, net in our consolidated balance sheets. Depreciation is recorded using the straight-line method over the assets’ estimated useful lives, which are generally as follows: buildings and improvements (8 to 40 years), furniture and equipment (3 to 8 years) and computer equipment (3 to 5 years). Leasehold improvements are depreciated over the shorter of the estimated useful life, based on the estimates above, or the lease term. We evaluate the carrying value of our property and equipment if there are indicators of impairment and review the recoverability of the asset group by comparing the estimated future undiscounted cash flows to the net carrying value of the asset group. If the net carrying value of the asset group is determined to be less than its estimated future undiscounted cash flows and, therefore, is not considered to be recoverable and is in excess of the estimated fair value, we record an impairment loss in our consolidated statements of operations. We allocate the impairment loss related to an asset group among the various assets within the asset group pro rata based on the relative carrying value of the respective assets. If sufficient information exists to reasonably estimate the fair value of a conditional asset retirement obligation, including environmental remediation liabilities, we recognize the fair value of the obligation when the obligation is incurred, which is generally upon acquisition, construction or development or through the normal operation of the asset. |
Leases | Leases We determine if a contract is or contains a lease at the inception of the contract, and we classify that lease as a finance lease if it meets certain criteria or as an operating lease when it does not. We reassess if a contract is or contains a leasing arrangement upon modification of the contract. For a contract, in which we are the lessee, that contains fixed payments for both lease and non-lease components, we have elected to account for the components as a single lease component, as permitted. At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a ROU asset representing our right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Current and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current and long-term portions of finance lease liabilities are classified as current maturities of long-term debt and long-term debt, respectively, in our consolidated balance sheets. The ROU asset is measured as the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by us, deferred rent and lease incentives. ROU assets of operating leases are included in operating lease right-of-use assets, and ROU assets of finance leases are included in property and equipment, net in our consolidated balance sheets. We evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group by comparing the estimated future undiscounted cash flows to the net carrying value of the asset group. If the net carrying value of the asset group is determined to be less than its estimated future undiscounted cash flows and, therefore, is not considered to be recoverable and is in excess of the estimated fair value, we record an impairment loss in our consolidated statements of operations. We allocate the impairment loss related to an asset group among the various assets within the asset group pro rata based on the relative carrying value of the respective assets. Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, which, for our hotels, are generally based on a percentage of the underlying asset's revenues or profits, or are dependent on changes in an index; and/or (iii) lease payments equal to the greater of the fixed or variable lease payments. In addition, during the term of our hotel leases, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel property. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term, and lease expense related to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statements of operations. For operating leases for which the ROU asset has been impaired, the lease expense is determined as the sum of the amortization of the ROU asset remaining after impairment on a straight-line basis over the remaining term of the lease and the accretion of the lease liability based on the discount rate applied to the lease liability. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in our consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statements of operations. |
Contract Liabilities | Contract Liabilities Contract liabilities relate to: (i) advance consideration received from hotel owners at contract inception for services considered to be part of the contract's performance obligations, such as application, initiation and other fees; (ii) advance consideration received for certain indirect reimbursements, such as system implementation fees; (iii) amounts received when points are issued under Hilton Honors, but for which revenue is not yet recognized, since the related points are not yet redeemed; and (iv) a portion of the consideration received for the pre-sale of Hilton Honors points. Contract liabilities related to advance consideration received for fees and certain indirect reimbursements are recognized ratably as revenue over the term of the related contract. Contract liabilities related to amounts received for Hilton Honors are recognized as revenue when the points are redeemed for a free or discounted good or service by the Hilton Honors member. Contract liabilities related to the pre-sale of Hilton Honors points are recognized as revenue from licensing fees when the related points are issued to customers, and the remainder is recognized when customers redeem the Hilton Honors points. Contract liabilities are included in current and long-term deferred revenues in our consolidated balance sheets. |
Hilton Honors | Hilton Honors Hilton Honors is our guest loyalty program provided to our hotel and resort properties. Nearly all of our managed, franchised, owned and leased properties participate in the Hilton Honors program. Hilton Honors members earn points based on their spend at our participating properties and through participation in affiliated partner programs. When points are earned by Hilton Honors members, they are provided with a substantive right to free or discounted goods or services in the future upon accumulation of the required level of Hilton Honors points. Points may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties, including, but not limited to, airlines, car rentals, cruises, vacation packages, shopping and dining. As points are issued to a Hilton Honors member, the property or program partner pays Hilton Honors based on an estimated cost per point for the costs of operating the program, which include marketing, promotion, communication and administrative expenses, as well as the estimated cost of award redemptions. When these payments are received we record amounts equal to the estimated cost per point of the future redemption obligation within liability for guest loyalty program and any amounts received in excess of the estimated cost per point within deferred revenues in our consolidated balance sheets. For the Hilton Honors fees that are charged to the participating properties, we allocate such fees to the substantive right created by the Hilton Honors points that are issued using the variable consideration allocation guidance, since the fees are directly related to the issuance of Hilton Honors points to the Hilton Honors member and Hilton's efforts to satisfy the future redemption of those Hilton Honors points. We engage outside actuaries to assist in determining the fair value of the future redemption obligation using statistical formulas that project future point redemptions based on factors that include historical experience, an estimate of points that will eventually be redeemed, which includes an estimate of "breakage" for points that will never be redeemed, and the cost of reimbursing properties and other third parties with respect to other redemption opportunities available to Hilton Honors members. When points are issued as a result of a stay by a Hilton Honors member at an owned or leased hotel, we recognize a reduction in owned and leased hotel revenues, since we are also the program sponsor. The transaction prices for the Hilton Honors points issued are reduced by the expected payments to the third parties that will provide the free or discounted room or service using the actuarial projection of the cost per point. The remaining transaction price is then further allocated to the points that are expected to be redeemed, adjusting the points that are issued for estimated breakage, and recognized when those points are redeemed. While the points are outstanding, both the estimate of the expected payments to third parties (cost per point) and the estimated breakage are reevaluated, and the combined estimate that yields the amount of revenue recognized when our point obligation is satisfied is adjusted so that the final amount allocated to the substantive right of the customer to use the point is reflective of the amount retained by Hilton Honors for providing the free or discounted goods and services, net of the payments to third parties and points not redeemed. During 2020, we temporarily suspended the expiration of Hilton Honors points, and, as a result, our estimates of breakage include the anticipated point expirations that will occur at the end of the suspension. We also earn licensing fees from co-branded credit card arrangements (see "Management and franchise revenues" within the "Revenue Recognition" section above). The co-branded license fee is allocated between two performance obligations based on their estimated standalone selling prices: (i) an IP license using the relief-from-royalty valuation method and (ii) substantive rights for free or discounted goods or services to the credit card customers using a cost plus method based on an evaluation of other third-party administrators. |
Fair Value Measurement - Valuation Hierarchy | Fair Value Measurements – Valuation Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (i.e., an exit price). We use the three-level valuation hierarchy for classification of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our own assumptions about the data market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized below: • Level 1 – Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. • Level 3 – Valuation is based upon other unobservable inputs that are significant to the fair value measurement. The classification of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement in its entirety. Proper classification of fair value measurements within the valuation hierarchy is considered each reporting period. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. Estimates of the fair values of our financial instruments and nonfinancial assets are determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. We have not elected the fair value measurement option for any of our financial assets or liabilities. |
Derivative Instruments | Derivative Instruments We use derivative instruments as part of our overall strategy to manage our exposure to market risks associated with fluctuations in interest rates and foreign currency exchange rates. We regularly monitor the financial stability and credit standing of the counterparties to our derivative instruments. We do not enter into derivative financial instruments for speculative purposes. We record all derivatives at fair value. On the date the derivative contract is entered into, we may designate the derivative as one of the following: (i) a hedge of a forecasted transaction or the variability of cash flows to be paid ("cash flow hedge"); (ii) a hedge of the fair value of a recognized asset or liability ("fair value hedge") or (iii) a hedge of our investment in a foreign operation ("net investment hedge"). Changes in the fair value of a derivative that is qualified and designated as a cash flow hedge or net investment hedge are recorded in other comprehensive income (loss) in our consolidated statements of comprehensive income (loss) until they are reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of a derivative that is qualified and designated as a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings. If we do not specifically designate a derivative as one of the above, changes in the fair value of the undesignated derivative instrument are reported in current period earnings. Cash flows from designated derivative financial instruments are classified within the same category as the item being hedged in the consolidated statements of cash flows, while cash flows from undesignated derivative financial instruments are included as an investing activity. If we determine that we qualify for and will designate a derivative as a hedging instrument, we formally document all relationships between hedging activities, including the risk management objective and strategy for undertaking various hedge transactions. This process includes matching all derivatives that are designated as cash flow hedges to specific forecasted transactions, linking all derivatives designated as fair value hedges to specific assets and liabilities in the consolidated balance sheets and determining the foreign currency exposure of the net investment of the foreign operation for a net investment hedge. We perform an initial prospective assessment of hedge effectiveness on a quantitative basis between the inception date and the earlier of the first quarterly hedge effectiveness date or the issuance of the financial statements that include the hedged transaction. On a quarterly basis, we assess the effectiveness of our designated hedges in offsetting the variability in the cash flows or fair values of the hedged assets or obligations using the Hypothetical Derivative Method. This method compares the cumulative change in fair value of each hedging instrument to the cumulative change in fair value of a hypothetical hedging instrument, which has terms that identically match the critical terms of the respective hedged transactions. Thus, the hypothetical hedging instrument is presumed to perfectly offset the hedged cash flows. Ineffectiveness results when the cumulative change in the fair value of the hedging instrument exceeds the cumulative change in the fair value of the hypothetical hedging instrument. We discontinue hedge accounting prospectively when the derivative is no longer highly effective as a hedge, the underlying hedged transaction is no longer probable or the hedging instrument expires, is sold, terminated or exercised. |
Currency Translation | Currency Translation The U.S. dollar ("USD") is our reporting currency and is the functional currency of our entities operating in the U.S. The functional currency for our entities operating outside of the U.S. is the currency of the primary economic environment in which the respective entity operates. Assets and liabilities measured in foreign currencies are translated into USD at the prevailing exchange rates in effect as of the financial statement date and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive income (loss) in our consolidated balance sheets. Income and expense accounts are translated at the average foreign currency exchange rate for the period. Gains and losses from foreign currency exchange rate changes related to transactions denominated in a currency other than an entity's functional currency or intercompany receivables and payables denominated in a currency other than an entity’s functional currency that are not of a long-term investment nature are recognized within gain (loss) on foreign currency transactions in our consolidated statements of operations. Where certain specific evidence indicates intercompany receivables and payables will not be settled in the foreseeable future and are of a long-term nature, gains and losses from foreign currency exchange rate changes are recognized within other comprehensive income (loss) in our consolidated statements of comprehensive income (loss). |
Insurance | InsuranceWe are self-insured for losses up to our third-party insurance deductibles for general liability, auto liability and workers' compensation at our owned, leased and managed properties that participate in our insurance programs. We are also self-insured for health coverage for the employees of our U.S. corporate operations and some managed properties. In addition, through our captive insurance subsidiary, we participate in reinsurance arrangements that provide coverage and/or act as a financial intermediary for claim payments on our self-insurance program. These obligations and reinsurance arrangements can cause timing differences in the recognition of assets, liabilities, gains and losses between reporting periods, although we expect these amounts to ultimately offset when the related claims are settled. Our insurance reserves are accrued based on our deductibles related to the estimated ultimate cost of claims that occurred during the covered period, which includes claims incurred but not reported, for which we will be responsible. These estimates are prepared with the assistance of outside actuaries and consultants. The ultimate cost of claims for a covered period are reviewed at least annually and are adjusted based on the latest information available to us, which may differ from our original estimates. |
Share-Based Compensation | Share-Based Compensation 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: • RSUs generally vest in equal annual installments over two three • Options vest over three • Performance shares are settled at the end of the defined performance period, and the grant date fair value per share is equal to the closing stock price on the date of grant. During the year ended December 31, 2020, the terms of all outstanding performance shares were modified such that participants would receive the greater of the payout under the original award or the modified award, with the exception of certain executives who will receive the number of shares achieved under the modified award, based on the fact that the performance conditions applicable to the original awards were no longer expected to be achieved due to the significant and unforeseen challenges related to the COVID-19 pandemic. Under the terms of the original awards: (i) 50 percent of the awards are subject to achievement based on the three-year compound annual growth rate ("CAGR") of the Company's earnings before interest expense, a provision for income tax benefit (expense) and depreciation and amortization ("EBITDA"), adjusted to exclude certain items ("Adjusted EBITDA"), referred to as EBITDA CAGR, and (ii) 50 percent of the awards are subject to achievement based on the Company’s three-year free cash flow ("FCF") per share CAGR, referred to as FCF CAGR. Under the terms of the modified awards, the outstanding 2018 awards and a portion of the outstanding 2019 awards were modified to vest based on performance prior to the pandemic and continued service, and the remaining portion of the outstanding 2019 awards and the outstanding 2020 awards were converted to performance awards that will vest based |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and to recognize the deferred tax assets and liabilities that relate to tax consequences in future years, which result from differences between the respective tax basis of assets and liabilities and their financial reporting amounts and tax attribute carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which the respective temporary differences or operating loss or tax credit carryforwards are expected to be recovered or settled. The realization of deferred tax assets and tax loss and tax credit carryforwards is contingent upon the generation of future taxable income and other restrictions that may exist under the tax laws of the jurisdiction in which a deferred tax asset exists. Valuation allowances are provided to reduce such deferred tax assets to amounts more likely than not to be ultimately realized. In December 2017, H.R.1, known as the Tax Cuts and Jobs Act of 2017 (the "TCJ Act"), was signed into law and included widespread changes to the Internal Revenue Code including, among other items, the creation of new taxes on certain foreign earnings. The TCJ Act subjects a U.S. stockholder to current tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. In addition, the TCJ Act provides for foreign derived intangible income ("FDII") to be taxed at a lower effective rate than the statutory rate by allowing a tax deduction against the income. We recognize the current tax on GILTI as an expense in the period the tax is incurred. We include the current tax impact of both GILTI and the FDII deduction in our effective tax rate. See Note 13: "Income Taxes" for additional information on the effects of the TCJ Act on our consolidated financial statements. We use a prescribed recognition threshold for the financial statement recognition and measurement of a tax position taken in a tax return. For all income tax positions, we first determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If it is determined that a position meets the more-likely-than-not recognition threshold, the benefit recognized in the financial statements is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. |
Recently issued Accounting Pronouncements | Recently 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 ). The cumulative adjustment to accumulated deficit that we recognized upon adoption of this ASU did not include the impact of the COVID-19 pandemic as a forecasted business condition. However, during the year ended December 31, 2020, we revised our expected 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 and recorded a related provision for credit losses of $76 million during the year ended December 31, 2020. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities | The following table summarizes the activity of our contract liabilities during the year ended December 31, 2020: (in millions) Balance as of December 31, 2019 $ 1,041 Cash received in advance and not recognized as revenue (1) 803 Revenue recognized (2)(3) (324) Other (4) (208) Balance as of December 31, 2020 $ 1,312 ____________ (1) Primarily related to Hilton Honors, our guest loyalty program, including $636 million related the Honors Points Pre-Sale; see below for additional information. (2) Primarily includes $264 million related to Hilton Honors, including amounts recognized as licensing fees from co-branded credit card arrangements. (3) During the years ended December 31, 2019 and 2018, revenue recognized was $288 million and $229 million, respectively. (4) Primarily 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) | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Schedule of Variable Interest Entities | Our consolidated balance sheets included the assets and liabilities of the VIEs that we consolidated as of the respective periods, which primarily comprised the following: December 31, 2020 2019 (in millions) Cash and cash equivalents $ 40 $ 81 Property and equipment, net 76 69 Deferred income tax assets 57 48 Other non-current assets 66 61 Accounts payable, accrued expenses and other 27 49 Long-term debt (1) 203 194 Other long-term liabilities 17 17 ____________ |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Our goodwill balances, by reporting unit, were as follows: Ownership Management and Franchise Total (in millions) Balance as of December 31, 2018 $ 99 $ 5,061 $ 5,160 Foreign currency translation (1) — (1) Balance as of December 31, 2019 98 5,061 5,159 Impairment losses (104) — (104) Foreign currency translation 6 34 40 Balance as of December 31, 2020 $ — $ 5,095 $ 5,095 |
Schedule of Ownership Reporting Unit | The gross carrying values and accumulated impairment losses for the ownership reporting unit are as follows: Gross Carrying Value Accumulated Impairment Losses Net Carrying Value (in millions) Balance as of December 31, 2018 $ 439 $ (340) $ 99 Foreign currency translation (1) — (1) Balance as of December 31, 2019 438 (340) 98 Impairment losses (444) 340 (104) Foreign currency translation 6 — 6 Balance as of December 31, 2020 $ — $ — $ — |
Schedule of Finite-Lived Intangible Assets | Finite-lived intangible assets were as follows: December 31, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management and franchise contracts recorded at Merger (1)(2) $ 317 $ (261) $ 56 Contract acquisition costs (3) 632 (144) 488 Development commissions and other 132 (23) 109 $ 1,081 $ (428) $ 653 Other intangible assets: Leases (1)(4) $ 157 $ (95) $ 62 Capitalized software costs 522 (378) 144 Hilton Honors (1) 342 (282) 60 $ 1,021 $ (755) $ 266 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 fair value as part of the Merger. (2) During the year ended December 31, 2020, certain of the assets became fully amortized and, as a result, the gross carrying values and related accumulated amortization were written-off. (3) During the year ended December 31, 2020, we recognized impairment losses of $15 million, which reduced the gross carrying value and accumulated amortization by $18 million and $3 million, respectively. (4) During the year ended December 31, 2020, we recognized impairment losses of $46 million, which reduced the gross carrying value and accumulated amortization by $138 million and $92 million, respectively. See Note 11: "Fair Value Measurements" for additional information. |
Schedule of Amortization of Finite-lived Intangible Assets | Amortization of our finite-lived intangible assets was as follows: Year Ended December 31, 2020 2019 2018 (in millions) Recognized in depreciation and amortization expense (1) $ 274 $ 286 $ 271 Recognized as a reduction of franchise and licensing fees and base and other management fees 29 29 27 ____________ (1) Includes amortization expense of $164 million, $202 million and $204 million for the years ended December 31, 2020, 2019 and 2018, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger. |
Schedule of Future Amortization of Finite-lived Intangible Assets | We estimate future amortization of our finite-lived intangible assets as of December 31, 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) 2021 $ 131 $ 29 2022 96 26 2023 63 26 2024 13 26 2025 9 25 Thereafter 119 356 $ 431 $ 488 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment were as follows: December 31, 2020 2019 (in millions) Land $ 11 $ 11 Buildings and leasehold improvements 381 382 Furniture and equipment 346 356 Construction-in-progress 7 20 Finance lease ROU assets 87 120 832 889 Accumulated depreciation and amortization (1) (486) (509) $ 346 $ 380 ____________ |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other were as follows: December 31, 2020 2019 (in millions) Accrued employee compensation and benefits $ 404 $ 554 Accounts payable 224 303 Operating lease liabilities, current 170 133 Insurance reserves, current 68 95 Other liabilities and accrued expenses (1) 436 618 $ 1,302 $ 1,703 ____________ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of December 31, 2020, were as follows: December 31, 2020 2019 (in millions) Senior secured revolving credit facility with a rate of 1.15%, due 2024 $ 1,690 $ 195 Senior secured term loan facility with a rate of 1.90%, due 2026 2,619 2,619 Senior notes with a rate of 4.250%, due 2024 — 1,000 Senior notes with a rate of 4.625%, due 2025 — 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 3.750%, due 2029 800 — Senior notes with a rate of 4.875%, due 2030 1,000 1,000 Senior notes with a rate of 4.000%, due 2031 1,100 — Finance lease liabilities with a weighted average rate of 5.85%, due 2021 to 2030 252 245 Other debt with a rate of 3.08%, due 2026 19 17 10,580 8,076 Less: unamortized deferred financing costs and discount (93) (83) Less: current maturities of long-term debt (1) (56) (37) $ 10,431 $ 7,956 ____________ (1) Represents current maturities of finance lease liabilities. |
Debt maturities | The contractual maturities of our long-term debt as of December 31, 2020 were as follows: Year (in millions) 2021 $ 56 2022 29 2023 23 2024 1,713 2025 524 Thereafter 8,235 $ 10,580 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities were as follows: December 31, 2020 2019 (in millions) Other long-term tax liabilities $ 400 $ 369 Pension obligations 143 134 Deferred employee compensation and benefits 116 118 Insurance reserves (1) 189 178 Other 141 84 $ 989 $ 883 ____________ (1) The long-term portion of obligations related to insurance claims are expected to be satisfied, on average, over the next three years. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements - Recurring & Disclosure | The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below: December 31, 2020 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 2,270 $ — $ 2,270 $ — Restricted cash equivalents 9 — 9 — Liabilities: Long-term debt (1) 10,216 6,366 — 4,293 Interest rate swaps 82 — 82 — 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 of our VIEs. |
Fair Value Measurements - Nonrecurring | The fair values, which were determined using significant Level 3 unobservable inputs, were as follows: (in millions) Goodwill (1) $ — Other intangible assets, net (2) — Operating lease right-of-use assets (3) 52 Property and equipment, net (4) 9 ____________ (1) Amount was measured at December 31, 2020. (2) Amount was measured at March 31, 2020. (3) Includes $24 million that was measured at March 31, 2020, $7 million that was measured at June 30, 2020 and $21 million that was measured at December 31, 2020. Amounts that were remeasured are excluded from the original measurement date and are included within the measurement date of their remeasurement. Additionally, certain of these assets were fully impaired at March 31, 2020, June 30, 2020 and December 31, 2020, which were the measurement dates. (4) Includes $4 million that was measured at March 31, 2020 and $5 million that was measured at December 31, 2020. Amounts that were remeasured are excluded from the original measurement date and are included within the measurement date of their remeasurement. Additionally, certain of these assets were fully impaired at March 31, 2020 and September 30, 2020, which were the measurement dates. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: December 31, 2020 2019 (dollars in millions) Operating leases: Operating lease right-of-use assets $ 772 $ 867 Accounts payable, accrued expenses and other 170 133 Operating lease liabilities 971 1,037 Finance leases: Property and equipment, net $ 40 $ 52 Current maturities of long-term debt 56 37 Long-term debt 196 208 Weighted average remaining lease term: Operating leases 12.3 years 12.8 years Finance leases 7.8 years 8.6 years Weighted average discount rate: Operating leases 3.82 % 3.76 % Finance leases 5.85 % 5.83 % |
Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, 2020 2019 (in millions) Operating lease expense for fixed payments $ 129 $ 144 Finance lease expense: Amortization of ROU assets 26 30 Interest on lease liabilities 14 14 Variable lease expense (1) 17 168 ____________ (1) Includes amounts related to variable operating lease terms and interest payments on finance leases. Lease expense for our operating leases for the year ended December 31, 2018 included $225 million of fixed lease expense and $142 million of variable lease expense. |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2020 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 149 $ 187 Financing cash flows from finance leases 26 42 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 33 48 Finance leases 20 61 |
Schedule of Future Minimum Lease Payments | Our future minimum lease payments as of December 31, 2020 were as follows: Operating Finance Year (in millions) 2021 $ 210 $ 68 2022 156 42 2023 140 33 2024 118 31 2025 117 32 Thereafter 724 111 Total minimum lease payments 1,465 317 Less: imputed interest (324) (65) Total lease liabilities $ 1,141 $ 252 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income (loss) before income taxes were as follows: Year Ended December 31, 2020 2019 2018 (in millions) U.S. income (loss) before tax $ (267) $ 867 $ 881 Foreign income (loss) before tax (657) 377 197 Income (loss) before income taxes $ (924) $ 1,244 $ 1,078 |
Schedule of Components of Income Tax Expense (Benefit) | The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2020 2019 2018 (in millions) Current: Federal $ (6) $ 190 $ 210 State (32) 60 53 Foreign 69 128 60 Total current 31 378 323 Deferred: Federal (102) (61) (52) State (34) (5) (14) Foreign (99) 46 52 Total deferred (235) (20) (14) Total provision (benefit) for income taxes $ (204) $ 358 $ 309 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliations of our tax provision (benefit) at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2020 2019 2018 (in millions) Statutory U.S. federal income tax provision (benefit) $ (194) $ 261 $ 226 State income taxes, net of U.S. federal income tax benefit (24) 47 37 Impact of foreign operations (106) 31 26 Goodwill impairment losses 22 — — Tax rate differential on U.S. federal net operating loss carryback (14) — — Changes in deferred tax asset valuation allowances 116 13 (6) Provision for uncertain tax positions 7 16 16 Effects of the TCJ Act — — 13 Corporate restructuring — — 9 Other, net (11) (10) (12) Provision (benefit) for income taxes $ (204) $ 358 $ 309 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the temporary differences and carryforwards that give rise to our net deferred taxes were as follows: December 31, 2020 2019 (in millions) Deferred tax assets: Net tax loss carryforwards and carrybacks $ 593 $ 386 Compensation 135 138 Reserves 71 33 Operating and finance lease liabilities 382 404 Deferred income 271 260 Foreign tax credit carryforwards 48 49 Other 153 51 Total gross deferred tax assets 1,653 1,321 Less: valuation allowance (654) (501) Deferred tax assets 999 820 Deferred tax liabilities: Brands (1,147) (1,133) Finite-lived intangible assets (74) (140) Investment in foreign subsidiaries (26) (32) Operating and finance lease ROU assets (207) (210) Deferred tax liabilities (1,454) (1,515) Net deferred taxes $ (455) $ (695) |
Schedule of Unrecognized Tax Benefits | Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2020 2019 2018 (in millions) Balance at beginning of year $ 395 $ 318 $ 283 Additions for tax positions related to prior years 45 67 37 Additions for tax positions related to the current year 56 13 16 Reductions for tax positions related to prior years (13) (3) (15) Settlements (37) 1 — Lapse of statute of limitations (1) (2) (3) Currency translation adjustment 6 1 — Balance at end of year $ 451 $ 395 $ 318 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The following table presents the projected benefit obligation, fair value of plan assets, funded status and accumulated benefit obligation for the Domestic Plan, the U.K. Plan and the International Plans: Domestic Plan U.K. Plan International Plans 2020 2019 2020 2019 2020 2019 (in millions) Change in Projected Benefit Obligation: Benefit obligation at beginning of year $ 382 $ 357 $ 445 $ 375 $ 87 $ 83 Service cost — — 3 2 1 1 Interest cost 10 14 8 10 2 2 Prior service credit (1) — — — (3) — — Actuarial loss 31 37 78 62 2 6 Settlements and curtailments (1) (2) — — — (1) Effect of foreign currency exchange rates — — 22 13 3 — Benefits paid (23) (24) (15) (14) (5) (4) Benefit obligation at end of year $ 399 $ 382 $ 541 $ 445 $ 90 $ 87 Change in Plan Assets: Fair value of plan assets at beginning of year $ 318 $ 274 $ 404 $ 340 $ 68 $ 63 Actual return on plan assets, net of expenses 41 53 66 57 3 6 Employer contributions 8 17 10 9 2 4 Settlements (1) (2) — — — (1) Effect of foreign currency exchange rates — — 20 12 2 — Benefits paid (23) (24) (15) (14) (5) (4) Fair value of plan assets at end of year 343 318 485 404 70 68 Funded status at end of year (underfunded) (56) (64) (56) (41) (20) (19) Accumulated benefit obligation $ 399 $ 382 $ 541 $ 445 $ 90 $ 87 ____________ (1) Relates to U.K. pension equalization requirements. |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2020 2019 2020 2019 2020 2019 (in millions) Other non-current assets $ — $ — $ — $ — $ 11 $ 10 Other liabilities (56) (64) (56) (41) (31) (29) Net amount recognized $ (56) $ (64) $ (56) $ (41) $ (20) $ (19) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan International Plans 2020 2019 2018 2020 2019 2018 2020 2019 2018 (in millions) Net actuarial loss (gain) $ 4 $ (3) $ 22 $ 41 $ 29 $ (14) $ 3 $ 3 $ 3 Prior service cost (credit) (4) (4) (4) — (3) 4 — — — Amortization of net loss (4) (3) (3) (4) (3) (4) (1) (1) (1) Net amount recognized $ (4) $ (10) $ 15 $ 37 $ 23 $ (14) $ 2 $ 2 $ 2 |
Schedule of Net Periodic Pension Cost (Credit) | The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2020 2019 2018 2020 2019 2018 2020 2019 2018 (in millions) Service cost $ 3 $ 6 $ 6 $ 3 $ 2 $ 3 $ 1 $ 2 $ 2 Interest cost 10 14 12 8 10 9 2 2 2 Expected return on plan assets (17) (19) (19) (20) (19) (21) (3) (3) (3) Amortization of prior service cost 4 4 3 — — — — — — Amortization of net loss 4 3 3 4 3 4 1 1 1 Net periodic pension cost (credit) $ 4 $ 8 $ 5 $ (5) $ (4) $ (5) $ 1 $ 2 $ 2 |
Schedule of Weighted Average Assumptions Used | The weighted-average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2020 2019 2020 2019 2020 2019 Discount rate 2.4 % 3.2 % 1.3 % 2.1 % 1.8 % 2.2 % Salary inflation N/A N/A 2.1 1.6 2.2 2.2 Pension inflation N/A N/A 2.7 2.8 1.8 1.9 The weighted-average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2020 2019 2018 2020 2019 2018 2020 2019 2018 Discount rate 3.2 % 4.3 % 3.6 % 2.1 % 3.1 % 2.6 % 2.0 % 3.1 % 2.9 % Expected return on plan assets 6.3 7.0 7.0 5.0 5.5 5.5 2.7 4.3 4.6 Salary inflation N/A N/A N/A 1.6 1.8 1.8 2.2 2.2 2.2 Pension inflation N/A N/A N/A 2.8 3.0 3.0 1.9 1.8 1.8 |
Schedule of Fair Value of Pension Assets | The following tables present the fair value hierarchy of total plan assets measured at fair value by asset category: December 31, 2020 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 45 $ 12 Equity funds — 75 3 Bond funds 2 43 — Alternative investments — 105 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 74 — Common collective trusts 341 — 45 Alternative investments — 87 — Other — 56 — $ 343 $ 485 $ 70 December 31, 2019 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash and cash equivalents $ — $ 25 $ 12 Equity funds — 61 2 Bond funds 2 40 — Alternative investments — 169 — Level 2 Equity funds — — 4 Bond funds — — 6 Net asset value (1) Bond funds — 54 — Common collective trusts 316 — 44 Other — 55 — $ 318 $ 404 $ 68 ____________ |
Schedule of Expected Benefit Payments | As of December 31, 2020, the benefits expected to be paid in the next five years and in the aggregate for the five years thereafter were as follows: Domestic Plan U.K. Plan International Plans Year (in millions) 2021 $ 33 $ 15 $ 13 2022 26 16 6 2023 26 16 6 2024 26 17 6 2025 26 17 5 2026-2030 118 88 26 $ 255 $ 169 $ 62 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Additional Information on Restricted Stock Units | The following table provides information about our RSU grants: Year Ended December 31, 2020 2019 2018 Number of shares granted (in thousands) 942 963 912 Weighted average grant date fair value per share $ 93.48 $ 83.47 $ 79.31 Aggregate intrinsic value of shares vested (in millions) $ 97 $ 92 $ 123 |
Schedule of Restricted Stock Units Activity | The following table summarizes the activity of our RSUs during the year ended December 31, 2020: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2019 1,780 $ 77.35 Granted 942 93.48 Vested (984) 74.42 Forfeited (245) 86.99 Outstanding as of December 31, 2020 1,493 88.55 |
Schedule of Additional Information on Stock Options | The following table provides information about our option grants: Year Ended December 31, 2020 2019 2018 (in thousands, except per share data) Number of options granted 755 758 612 Weighted average exercise price per share $ 93.33 $ 83.11 $ 79.36 Weighted average grant date fair value per share $ 21.47 $ 21.08 $ 23.72 |
Schedule of Stock Options Valuation Assumptions | The weighted average grant date fair value per share of each of these option grants was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2020 2019 2018 Expected volatility (1) 23.69 % 23.51 % 27.91 % Dividend yield (2) 0.55 % 0.81 % 0.74 % Risk-free rate (3) 0.96 % 2.47 % 2.73 % Expected term (in years) (4) 6.0 6.0 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 terms of the options. |
Schedule of Stock Options Activity | The following table summarizes the activity of our options during the year ended December 31, 2020: Number of Shares Weighted Average Exercise Price per Share (in thousands) Outstanding as of December 31, 2019 2,828 $ 65.72 Granted 755 93.33 Exercised (355) 60.09 Forfeited (201) 86.55 Outstanding as of December 31, 2020 (1) 3,027 71.88 Exercisable as of December 31, 2020 (2) 1,764 60.31 ____________ (1) The aggregate intrinsic value was $107 million and the weighted average remaining contractual term was 7.0 years. |
Schedule of Additional Information on Performance Shares | The following table provides information about our original performance share grants: Year Ended December 31, 2020 2019 2018 (1) EBITDA CAGR: Number of shares granted (in thousands) 174 192 183 Weighted average grant date fair value per share $ 93.33 $ 83.11 $ 79.36 Aggregate intrinsic value of shares vested (in millions) $ 29 $ — $ — FCF CAGR: Number of shares granted (in thousands) 174 192 183 Weighted average grant date fair value per share $ 93.33 $ 83.11 $ 79.36 Aggregate intrinsic value of shares vested (in millions) 29 $ — $ — ____________ (1) The aggregate intrinsic value of performance shares vested was less than $1 million . |
Schedule of Performance Shares Activity | The following table summarizes the activity of our performance shares during the year ended December 31, 2020: EBITDA CAGR (1) FCF CAGR (1) Number of Shares Weighted Average Grant Date Fair Value per Share Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) (in thousands) Outstanding as of December 31, 2019 527 $ 74.46 527 $ 74.46 Granted 174 93.33 174 93.33 Performance achievement share adjustments (2) 218 64.29 218 64.29 Vested (316) 58.45 (316) 58.45 Forfeited (93) 84.78 (93) 84.78 Outstanding as of December 31, 2020 510 84.57 510 84.57 ____________ (1) This performance measure relates to the original awards and, as discussed above and in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies," we modified our outstanding performance awards in December 2020 whereby the achievement for the performance-based portion of our outstanding awards will be measured under four new performance measures, which include: (i) Adjusted EBITDA, (ii) FCF per share, (iii) NUG CAGR and (iv) RevPAR index growth. (2) Reflects the number of shares achieved above target, based on actual performance, and includes the effect of the modifications; see above for further information. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings (Loss) Per Share | The following table presents the calculation of basic and diluted earnings (loss) per share ("EPS"): Year Ended December 31, 2020 2019 2018 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ (715) $ 881 $ 764 Denominator: Weighted average shares outstanding 277 287 302 Basic EPS $ (2.58) $ 3.07 $ 2.53 Diluted EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ (715) $ 881 $ 764 Denominator: Weighted average shares outstanding (1) 279 290 305 Diluted EPS $ (2.56) $ 3.04 $ 2.50 ____________ (1) Approximately 2 million, 1 million and 1 million share-based compensation awards were excluded from the computation of diluted EPS for the years ended December 31, 2020, 2019 and 2018, respectively, because their effect would have been anti-dilutive under the treasury stock method. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Adjustment (1) Pension Liability Adjustment (2) Cash Flow Hedge Adjustment (3) Total (in millions) Balance as of December 31, 2017 $ (513) $ (229) $ 1 $ (741) Other comprehensive income (loss) before reclassifications (70) (18) 17 (71) Amounts reclassified from accumulated other comprehensive loss — 9 5 14 Net current period other comprehensive income (loss) (70) (9) 22 (57) Cumulative effect of the adoption of ASU 2018-02 38 (22) — 16 Balance as of December 31, 2018 (545) (260) 23 (782) Other comprehensive loss before reclassifications (5) (17) (35) (57) Amounts reclassified from accumulated other comprehensive loss 1 8 (10) (1) Net current period other comprehensive loss (4) (9) (45) (58) Balance as of December 31, 2019 (549) (269) (22) (840) Other comprehensive income (loss) before reclassifications 33 (30) (46) (43) Amounts reclassified from accumulated other comprehensive loss 5 10 8 23 Net current period other comprehensive income (loss) 38 (20) (38) (20) Balance as of December 31, 2020 $ (511) $ (289) $ (60) $ (860) ____________ (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 in loss on foreign currency transactions in our consolidated statements of operations. (2) Amounts reclassified related to the amortization of prior service costs and amortization of net loss and were recognized in other non-operating income (loss), net in our consolidated statements of operations. (3) Amounts reclassified related to interest rate swaps, including interest rate swaps that were dedesignated and subsequently settled, and forward contracts that hedge our foreign currency denominated fees and were recognized in interest expense and franchise and licensing fees, base and other management fees and other revenues from managed and franchised properties, respectively, in our consolidated statements of operations. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segment Amounts to Consolidated Amounts | The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2020 2019 2018 (in millions) Franchise and licensing fees $ 956 $ 1,691 $ 1,537 Base and other management fees (1) 144 394 385 Incentive management fees 38 230 235 Management and franchise 1,138 2,315 2,157 Ownership 421 1,422 1,484 Segment revenues 1,559 3,737 3,641 Amortization of contract acquisition costs (29) (29) (27) Other revenues 73 101 98 Direct reimbursements from managed and franchised properties (2) 1,375 3,110 2,881 Indirect reimbursements from managed and franchised properties (2) 1,332 2,576 2,357 Intersegment fees elimination (1) (3) (43) (44) Total revenues $ 4,307 $ 9,452 $ 8,906 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our consolidated statements of operations. |
Reconciliation of Segment Operating Income (Loss) to Consolidated Income (Loss) Before Income Taxes | The following table presents operating income (loss) for our reportable segments, reconciled to consolidated income (loss) before income taxes: Year Ended December 31, 2020 2019 2018 (in millions) Management and franchise (1) $ 1,138 $ 2,315 $ 2,157 Ownership (1) (202) 125 108 Segment operating income 936 2,440 2,265 Amortization of contract acquisition costs (29) (29) (27) Other revenues, less other expenses 13 29 47 Net other expenses from managed and franchised properties (397) (77) (85) Depreciation and amortization (331) (346) (325) General and administrative (311) (441) (443) Reorganization costs (41) — — Impairment losses (258) — — Gain on sale of assets, net — 81 — Operating income (loss) (418) 1,657 1,432 Interest expense (429) (414) (371) Loss on foreign currency transactions (27) (2) (11) Loss on debt extinguishments (48) — — Other non-operating income (loss), net (2) 3 28 Income (loss) before income taxes $ (924) $ 1,244 $ 1,078 ____________ (1) Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Schedule of Assets by Segment | The following table presents total assets of our reportable segments, reconciled to consolidated amounts: December 31, 2020 2019 (in millions) Management and franchise $ 11,065 $ 11,455 Ownership 1,242 1,610 Corporate and other 4,448 1,892 $ 16,755 $ 14,957 |
Revenues by Country | Total revenues by country were as follows: Year Ended December 31, 2020 2019 2018 (in millions) U.S. $ 3,593 $ 7,423 $ 6,848 All other (1) 714 2,029 2,058 $ 4,307 $ 9,452 $ 8,906 ____________ (1) There are no countries included in this amount that individually represented more than 10 percent of total revenues for the years ended December 31, 2020, 2019 and 2018. |
Property and Equipment, Net by Country | Property and equipment, net by country was as follows: December 31, 2020 2019 (in millions) U.S. $ 128 $ 145 United Kingdom 79 84 Japan 77 71 Germany 25 38 All other (1) 37 42 $ 346 $ 380 ____________ (1) There are no countries included in this amount that individually represented more than 10 percent of total property and equipment, net as of December 31, 2020 and 2019. |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments, including normal recurring items, considered necessary for a fair presentation of our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 1,920 $ 564 $ 933 $ 890 $ 4,307 Operating income (loss) 68 (302) 11 (195) (418) Net income (loss) 18 (432) (81) (225) (720) Net income (loss) attributable to Hilton stockholders 18 (430) (79) (224) (715) Basic earnings (loss) per share (1) $ 0.06 $ (1.55) $ (0.29) $ (0.81) $ (2.58) Diluted earnings (loss) per share (1) $ 0.06 $ (1.55) $ (0.28) $ (0.80) $ (2.56) 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues $ 2,204 $ 2,484 $ 2,395 $ 2,369 $ 9,452 Operating income 312 478 519 348 1,657 Net income 159 261 290 176 886 Net income attributable to Hilton stockholders 158 260 288 175 881 Basic earnings per share (1) $ 0.54 $ 0.90 $ 1.01 $ 0.62 $ 3.07 Diluted earnings per share (1) $ 0.54 $ 0.89 $ 1.00 $ 0.61 $ 3.04 ____________ |
Organization (Details)
Organization (Details) | Dec. 31, 2020HotelCountryRoom |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of hotel and resort properties | Hotel | 6,478 |
Number of hotel and resort rooms | Room | 1,019,287 |
Number of countries and territories | Country | 119 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Accounting Policies [Line Items] | |||
Ownership percentage of voting shares of a company at or above which VIEs are consolidated | 50.00% | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in allowance for credit losses | $ 76 | ||
Accumulated deficit | $ (6,732) | $ (5,965) | |
Building and building improvements [member] | Minimum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, property and equipment | 8 years | ||
Building and building improvements [member] | Maximum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, property and equipment | 40 years | ||
Furniture and equipment [member] | Minimum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, property and equipment | 3 years | ||
Furniture and equipment [member] | Maximum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, property and equipment | 8 years | ||
Computer equipment [member] | Minimum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, property and equipment | 3 years | ||
Computer equipment [member] | Maximum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, property and equipment | 5 years | ||
Restricted stock units (RSUs) [member] | Minimum [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Restricted stock units (RSUs) [member] | Maximum [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock options [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Expiration period | 10 years | ||
EBITDA CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares, terms | 50 percent of the awards are subject to achievement based on the three-year compound annual growth rate ("CAGR") of the Company's earnings before interest expense, a provision for income tax benefit (expense) and depreciation and amortization ("EBITDA") | ||
Free cash flow CAGR [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares, terms | 50 percent of the awards are subject to achievement based on the Company’s three-year free cash flow ("FCF") per share CAGR | ||
Adjusted EBITDA [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares, terms | 25 percent of the awards are subject to the Company's Adjusted EBITDA at the end of the performance period | ||
Free Cash Flow [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares, terms | 25 percent of the awards are subject to the Company's FCF per share at the end of the performance period | ||
Net Unit Growth CAGR [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares, terms | 25 percent of the awards are subject to the Company's three-year net unit growth ("NUG") CAGR, referred to as NUG CAGR | ||
RevPAR Index Growth [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares, terms | 25 percent of the awards are subject to one-year revenue per available room ("RevPAR") index growth | ||
Performance shares [member] | Maximum achievement percentage [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 200.00% | ||
Performance shares [member] | Minimum achievement percentage [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 0.00% | ||
Performance shares [member] | Target achievement percentage [member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights, percentage | 100.00% | ||
Management contracts at Merger [member] | Minimum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 13 years | ||
Management contracts at Merger [member] | Maximum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 16 years | ||
Management contract acquisition costs and development commissions [member] | Minimum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 20 years | ||
Management contract acquisition costs and development commissions [member] | Maximum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 30 years | ||
Franchise contracts at Merger [member] | Minimum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 12 years | ||
Franchise contracts at Merger [member] | Maximum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 13 years | ||
Franchise contract acquisition costs and development commission [member] | Minimum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 10 years | ||
Franchise contract acquisition costs and development commission [member] | Maximum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 20 years | ||
Other intangible assets, net [member] | Minimum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 12 years | ||
Other intangible assets, net [member] | Maximum [member] | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 35 years | ||
Hilton Honors | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 16 years | ||
Capitalized software costs | |||
Accounting Policies [Line Items] | |||
Useful life, intangibles | 3 years | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated deficit | $ 10 |
Disposal (Details)
Disposal (Details) ¥ in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2019JPY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Discontinued Operations and Disposal Groups [Abstract] | |||||
Sales price of an asset | $ 122 | ¥ 13,000 | |||
Gain on sale of assets, net | $ 0 | $ 81 | $ 0 |
Revenues from Contract with Cus
Revenues from Contract with Customers - Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2020 | |||
Revenue from Contract with Customer [Abstract] | ||||||
Contract liabilities balance | $ 1,312 | $ 1,041 | ||||
Cash received in advance and not recognized as revenue | [1] | 803 | ||||
Revenue recognized | 324 | [2],[3] | $ 288 | $ 229 | ||
Other | [4] | (208) | ||||
Portion of proceeds from guest loyalty program points pre sale recorded as deferred revenues | $ 636 | |||||
Guest loyalty program, contract liability revenue recognized | [3] | $ 264 | ||||
[1] | Primarily related to Hilton Honors, our guest loyalty program, including $636 million related the Honors Points Pre-Sale; see below for additional information. | |||||
[2] | During the years ended December 31, 2019 and 2018, revenue recognized was $288 million and $229 million, respectively. | |||||
[3] | Primarily includes $264 million related to Hilton Honors, including amounts recognized as licensing fees from co-branded credit card arrangements. | |||||
[4] | Primarily represents changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2020 | ||
Revenue from Contract with Customer [Abstract] | |||||
Revenue recognized | $ 324 | [1],[2] | $ 288 | $ 229 | |
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 obligation | $ 249 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | two years | ||||
Co-branded credit card arrangements [Member] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligation | $ 471 | ||||
Application, initiation and other fees [Member] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligation | $ 592 | ||||
[1] | During the years ended December 31, 2019 and 2018, revenue recognized was $288 million and $229 million, respectively. | ||||
[2] | Primarily includes $264 million related to Hilton Honors, including amounts recognized as licensing fees from co-branded credit card arrangements. |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 3,218 | $ 538 | |
Property and equipment, net | 346 | 380 | |
Deferred income tax assets | 271 | 260 | |
Other non-current assets | 323 | 280 | |
Accounts payable, accrued expenses and other | 1,302 | 1,703 | |
Other long-term liabilities | 989 | 883 | |
Finance lease liabilities | 252 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 40 | 81 | |
Property and equipment, net | 76 | 69 | |
Deferred income tax assets | 57 | 48 | |
Other non-current assets | 66 | 61 | |
Accounts payable, accrued expenses and other | 27 | 49 | |
Long-term debt | [1] | 203 | 194 |
Other long-term liabilities | 17 | 17 | |
Finance lease liabilities | $ 184 | $ 177 | |
[1] | Includes finance lease liabilities of $184 million and $177 million as of December 31, 2020 and 2019, respectively. |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Additional Information (Details) ¥ in Millions, $ in Millions | Dec. 31, 2020JPY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)Entity |
Variable Interest Entity [Line Items] | |||
Number of consolidated variable interest entities | Entity | 2 | ||
Long-term debt, gross | $ 10,580 | $ 8,076 | |
VIE revolving credit facility [Member] | |||
Variable Interest Entity [Line Items] | |||
Long-term debt, gross | 0 | ||
VIE revolving credit facility signed June 2020 [Member] | |||
Variable Interest Entity [Line Items] | |||
Revolving credit facility, maximum borrowing capacity | ¥ 2,750 | 27 | |
VIE revolving credit facility signed September 2020 [Member] | |||
Variable Interest Entity [Line Items] | |||
Revolving credit facility, maximum borrowing capacity | ¥ 2,000 | $ 19 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill | $ 5,095 | $ 5,159 | $ 5,160 |
Goodwill, Impairment Losses | (104) | ||
Foreign currency translation | 40 | (1) | |
Ownership | |||
Goodwill [Line Items] | |||
Goodwill | 0 | 98 | 99 |
Goodwill, Impairment Losses | (104) | ||
Foreign currency translation | 6 | (1) | |
Management and franchise | |||
Goodwill [Line Items] | |||
Goodwill | 5,095 | 5,061 | $ 5,061 |
Goodwill, Impairment Losses | 0 | ||
Foreign currency translation | $ 34 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Gross Carrying Value and Accumulated Impairment Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill | $ 5,095 | $ 5,159 | $ 5,160 |
Goodwill, Impairment Losses | 104 | ||
Foreign currency translation | 40 | (1) | |
Ownership | |||
Goodwill [Line Items] | |||
Gross carrying value | 0 | 438 | 439 |
Accumulated impairment losses | 0 | (340) | (340) |
Goodwill | 0 | 98 | 99 |
Goodwill, Foreign Currency Translation Gain (Loss), Gross | 6 | (1) | |
Goodwill, Impairment Loss, Gross | (444) | ||
Goodwill, Impairment Loss, Accumulated Impairment Loss | 340 | ||
Goodwill, Foreign Currency Translation Gain (Loss), Accumulated Impairment Loss | 0 | 0 | |
Goodwill, Impairment Losses | 104 | ||
Foreign currency translation | 6 | (1) | |
Management and franchise | |||
Goodwill [Line Items] | |||
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill | 5,095 | 5,061 | $ 5,061 |
Goodwill, Impairment Losses | 0 | ||
Foreign currency translation | $ 34 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Finite-Lived Intangible Assets [Line Items] | |||||
Management and franchise contracts, gross | $ 1,081 | $ 2,894 | |||
Other intangible assets, gross | 1,021 | 1,287 | |||
Management and franchise contracts, accumulated amortization | (428) | (2,114) | |||
Other intangible assets, accumulated amortization | (755) | (866) | |||
Management and franchise contracts, net | 653 | 780 | |||
Other intangible assets, net | 266 | 421 | |||
Impairment losses | 258 | 0 | $ 0 | ||
Contract acquisition costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment losses | 15 | ||||
Gross carrying value of assets impaired | 18 | ||||
Accumulated amortization of assets impaired | 3 | ||||
Other intangible assets, net [member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment losses | 46 | ||||
Gross carrying value of assets impaired | 138 | ||||
Accumulated amortization of assets impaired | 92 | ||||
Management and franchise contracts recorded at Merger | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Management and franchise contracts, gross | [2] | 317 | [1] | 2,163 | |
Management and franchise contracts, accumulated amortization | [2] | (261) | [1] | (1,974) | |
Management and franchise contracts, net | [2] | 56 | [1] | 189 | |
Contract acquisition costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Management and franchise contracts, gross | 632 | [3] | 604 | ||
Management and franchise contracts, accumulated amortization | (144) | [3] | (121) | ||
Management and franchise contracts, net | 488 | [3] | 483 | ||
Development commissions and other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Management and franchise contracts, gross | 132 | 127 | |||
Management and franchise contracts, accumulated amortization | (23) | (19) | |||
Management and franchise contracts, net | 109 | 108 | |||
Other intangible assets, net [member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, gross | [2] | 157 | [4] | 290 | |
Other intangible assets, accumulated amortization | [2] | (95) | [4] | (176) | |
Other intangible assets, net | [2] | 62 | [4] | 114 | |
Capitalized software costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, gross | 522 | 625 | |||
Other intangible assets, accumulated amortization | (378) | (399) | |||
Other intangible assets, net | 144 | 226 | |||
Hilton Honors | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, gross | [2] | 342 | 338 | ||
Other intangible assets, accumulated amortization | [2] | (282) | (257) | ||
Other intangible assets, net | [2] | $ 60 | 81 | ||
Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets, gross | [2] | 34 | |||
Other intangible assets, accumulated amortization | [2] | (34) | |||
Other intangible assets, net | [2] | $ 0 | |||
[1] | During the year ended December 31, 2020, certain of the assets became fully amortized and, as a result, the gross carrying values and related accumulated amortization were written-off. | ||||
[2] | Represents intangible assets that were initially recorded at fair value as part of the Merger. | ||||
[3] | During the year ended December 31, 2020, we recognized impairment losses of $15 million, which reduced the gross carrying value and accumulated amortization by $18 million and $3 million, respectively. | ||||
[4] | During the year ended December 31, 2020, we recognized impairment losses of $46 million, which reduced the gross carrying value and accumulated amortization by $138 million and $92 million, respectively. See Note 11: "Fair Value Measurements" for additional information. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Amortization of Amortizing Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Recognized in depreciation and amortization expense | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | [1] | $ 274 | $ 286 | $ 271 |
Recognized in depreciation and amortization expense | Intangible assets recorded at fair value at the time of the Merger [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | 164 | 202 | 204 | |
Recognized as a reduction of franchise and licensing fees and base and other management fees | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 29 | $ 29 | $ 27 | |
[1] | Includes amortization expense of $164 million, $202 million and $204 million for the years ended December 31, 2020, 2019 and 2018, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger. |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule Of Future Amortization (Details) $ in Millions | Dec. 31, 2020USD ($) |
Recognized in depreciation and amortization expense | |
Finite-Lived Intangible Assets [Line Items] | |
2021 | $ 131 |
2022 | 96 |
2023 | 63 |
2024 | 13 |
2025 | 9 |
Thereafter | 119 |
Amortizing intangible assets, net | 431 |
Recognized as a reduction of franchise and licensing fees and base and other management fees | |
Finite-Lived Intangible Assets [Line Items] | |
2021 | 29 |
2022 | 26 |
2023 | 26 |
2024 | 26 |
2025 | 25 |
Thereafter | 356 |
Amortizing intangible assets, net | $ 488 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 258 | $ 0 | $ 0 |
Goodwill [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 104 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Property, Plant and Equipment [Abstract] | ||||
Land | $ 11 | $ 11 | ||
Buildings and leasehold improvements | 381 | 382 | ||
Furniture and equipment | 346 | 356 | ||
Construction-in-progress | 7 | 20 | ||
Finance lease ROU assets | 87 | 120 | ||
Property and equipment, gross | 832 | 889 | ||
Accumulated depreciation and amortization | [1] | (486) | (509) | |
Property and equipment, net | 346 | 380 | ||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | 331 | 346 | $ 325 | |
Property and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 57 | $ 60 | $ 54 | |
[1] | During the years ended December 31, 2020, 2019 and 2018, depreciation and amortization expense on property and equipment was $57 million, $60 million and $54 million, respectively. |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 258 | $ 0 | $ 0 |
Property and equipment [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 28 | ||
Gross carrying value of assets impaired | 119 | ||
Accumulated amortization of assets impaired | 91 | ||
Property subject to a finance lease [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 4 | ||
Gross carrying value of assets impaired | 42 | ||
Accumulated amortization of assets impaired | $ 38 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |||
Accrued employee compensation and benefits | $ 404 | $ 554 | |
Accounts payable | 224 | 303 | |
Insurance reserves, current | 68 | 95 | |
Other liabilities and accrued expenses | [1] | 436 | 618 |
Accounts payable, accrued expenses and other | 1,302 | 1,703 | |
Accounts payable, accrued expenses and other | |||
Payables and Accruals [Abstract] | |||
Operating lease liabilities, current | 170 | 133 | |
Operating lease liabilities, current | $ 170 | $ 133 | |
[1] | Includes deposit liabilities related to hotel operations and application fees, promotional liabilities and income taxes payable, as well as accrued expenses related to taxes, interest and other. |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 10,580 | $ 8,076 | |
Unamortized deferred financing costs and discount | (93) | (83) | |
Current maturities of long-term debt | [1] | (56) | (37) |
Long-term debt | 10,431 | 7,956 | |
Senior secured revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,690 | 195 | |
Debt instrument, interest rate, stated percentage | 1.15% | ||
Senior secured term loan facility due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 2,619 | 2,619 | |
Debt instrument, interest rate, stated percentage | 1.90% | ||
Senior notes due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | 1,000 | |
Debt instrument, interest rate, stated percentage | 4.25% | ||
Senior notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | 900 | |
Debt instrument, interest rate, stated percentage | 4.625% | ||
5.375% Senior notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 500 | 0 | |
Debt instrument, interest rate, stated percentage | 5.375% | ||
Senior notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,500 | 1,500 | |
Debt instrument, interest rate, stated percentage | 5.125% | ||
Senior notes due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 600 | 600 | |
Debt instrument, interest rate, stated percentage | 4.875% | ||
Senior notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 500 | 0 | |
Debt instrument, interest rate, stated percentage | 5.75% | ||
Senior notes due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 800 | 0 | |
Debt instrument, interest rate, stated percentage | 3.75% | ||
Senior notes due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,000 | 1,000 | |
Debt instrument, interest rate, stated percentage | 4.875% | ||
Senior notes due 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,100 | 0 | |
Debt instrument, interest rate, stated percentage | 4.00% | ||
Finance lease liabilities [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 252 | 245 | |
Long-term debt, weighted average interest rate | 5.85% | ||
Other debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 19 | $ 17 | |
Debt instrument, interest rate, stated percentage | 3.08% | ||
[1] | Represents current maturities of finance lease liabilities. |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2021 | $ 56 | |
2022 | 29 | |
2023 | 23 | |
2024 | 1,713 | |
2025 | 524 | |
Thereafter | 8,235 | |
Long-term debt, gross | $ 10,580 | $ 8,076 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | Jun. 01, 2019 | Apr. 01, 2018 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2020 |
Debt Instrument [Line Items] | |||||||||
Repurchases of common stock, purchase price | $ 279 | $ 1,544 | $ 1,721 | ||||||
Long-term debt, gross | $ 10,580 | $ 10,580 | 8,076 | ||||||
Senior notes due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 5.125% | 5.125% | |||||||
Long-term debt, gross | $ 1,500 | $ 1,500 | 1,500 | ||||||
Senior notes due 2029 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 800 | $ 800 | |||||||
Debt instrument, interest rate, stated percentage | 3.75% | 3.75% | |||||||
Long-term debt, gross | $ 800 | $ 800 | 0 | ||||||
Senior notes due 2031 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,100 | $ 1,100 | |||||||
Debt instrument, interest rate, stated percentage | 4.00% | 4.00% | |||||||
Long-term debt, gross | $ 1,100 | $ 1,100 | 0 | ||||||
Senior notes issued in December 2020 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 27 | $ 27 | |||||||
Senior notes due 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 4.25% | 4.25% | |||||||
Repayments of long-term debt | $ 1,000 | ||||||||
Long-term debt, gross | $ 0 | $ 0 | 1,000 | ||||||
Senior notes due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 4.625% | 4.625% | |||||||
Repayments of long-term debt | $ 900 | ||||||||
Long-term debt, gross | 0 | $ 0 | 900 | ||||||
Senior notes redeemed in December 2020 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Premium paid to redeem debt instrument | 31 | ||||||||
Write off of deferred debt issuance cost | $ 17 | ||||||||
5.375% Senior notes due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500 | ||||||||
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | |||||||
Long-term debt, gross | $ 500 | $ 500 | 0 | ||||||
Senior notes due 2028 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500 | ||||||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | |||||||
Long-term debt, gross | $ 500 | $ 500 | 0 | ||||||
Senior notes issued in April 2020 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 14 | $ 14 | |||||||
Senior notes due 2030 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,000 | ||||||||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | |||||||
Long-term debt, gross | $ 1,000 | $ 1,000 | 1,000 | ||||||
Senior secured term loan facility due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 1.90% | 1.90% | |||||||
Repayments of long-term debt | 500 | $ 500 | 300 | ||||||
Long-term debt, gross | $ 2,619 | $ 2,619 | 2,619 | ||||||
Unamortized deferred financing costs and fees | 10 | $ 8 | |||||||
Senior secured revolving credit facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 1.15% | 1.15% | |||||||
Repayments of long-term debt | $ 225 | ||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,750 | $ 1,750 | |||||||
Long-term debt, gross | $ 1,690 | $ 1,690 | 195 | ||||||
Senior notes due 2027 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | |||||||
Long-term debt, gross | $ 600 | $ 600 | $ 600 | ||||||
Other stockholder [member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchases of common stock, purchase price | $ 1,171 | ||||||||
Letter of Credit [Member] | Senior secured revolving credit facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Letters of credit outstanding | $ 60 | $ 60 | |||||||
Subsequent Event [Member] | Senior notes due 2032 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,500 | ||||||||
Debt instrument, interest rate, stated percentage | 3.625% | ||||||||
Debt issuance costs | $ 22 | ||||||||
Subsequent Event [Member] | Senior notes due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of long-term debt | 1,500 | ||||||||
Premium paid to redeem debt instrument | 55 | ||||||||
Write off of deferred debt issuance cost | $ 14 | ||||||||
Subsequent Event [Member] | Senior secured revolving credit facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of long-term debt | $ 250 | ||||||||
Long-term debt, gross | $ 1,440 |
Other Liabilities - Other Long-
Other Liabilities - Other Long-term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |||
Other long-term tax liabilities | $ 400 | $ 369 | |
Pension obligations | 143 | 134 | |
Deferred employee compensation and benefits | 116 | 118 | |
Insurance reserves | [1] | 189 | 178 |
Other | 141 | 84 | |
Other long-term liabilities | $ 989 | $ 883 | |
[1] | The long-term portion of obligations related to insurance claims are expected to be satisfied, on average, over the next three years. |
Other Liabilities - Additional
Other Liabilities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Insurance claims, satisfied average term | three years |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring & Disclosure (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Carrying value [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | $ 2,270 | $ 117 | |
Restricted cash equivalents | 9 | 32 | |
Long-term debt | [1] | 10,216 | 7,731 |
Interest rate swaps, liabilities | 82 | 37 | |
Level 1 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 6,366 | 5,230 |
Level 2 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 2,270 | 117 | |
Restricted cash equivalents | 9 | 32 | |
Interest rate swaps, liabilities | 82 | 37 | |
Level 3 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 4,293 | $ 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 of our VIEs. |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Goodwill | $ 5,095 | $ 5,159 | $ 5,160 | |||
Other intangible assets, net | 266 | 421 | ||||
Operating lease right-of-use assets | 772 | 867 | ||||
Property and equipment, net | 346 | $ 380 | ||||
Goodwill [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Nonrecurring | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Goodwill | [1] | 0 | ||||
Other intangible assets, net [member] | Estimate of Fair Value Measurement [Member] | Fair Value, Nonrecurring | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Other intangible assets, net | [2] | $ 0 | ||||
Operating lease right-of-use assets [Member] | Estimate of Fair Value Measurement [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Operating lease right-of-use assets | [3] | 21 | $ 7 | 24 | ||
Operating lease right-of-use assets [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Nonrecurring | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Operating lease right-of-use assets | [3] | 52 | ||||
Property and equipment [Member] | Estimate of Fair Value Measurement [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Property and equipment, net | [4] | 5 | $ 4 | |||
Property and equipment [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Nonrecurring | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Property and equipment, net | [4] | $ 9 | ||||
[1] | Amount was measured at December 31, 2020. | |||||
[2] | Amount was measured at March 31, 2020. | |||||
[3] | Includes $24 million that was measured at March 31, 2020, $7 million that was measured at June 30, 2020 and $21 million that was measured at December 31, 2020. Amounts that were remeasured are excluded from the original measurement date and are included within the measurement date of their remeasurement. Additionally, certain of these assets were fully impaired at March 31, 2020, June 30, 2020 and December 31, 2020, which were the measurement dates. | |||||
[4] | Includes $4 million that was measured at March 31, 2020 and $5 million that was measured at December 31, 2020. Amounts that were remeasured are excluded from the original measurement date and are included within the measurement date of their remeasurement. Additionally, certain of these assets were fully impaired at March 31, 2020 and September 30, 2020, which were the measurement dates. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impairment losses | $ 258 | $ 0 | $ 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 | $ 139 | ||
Growth rate | Goodwill [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement technique | 2.5 percent | ||
Growth rate | Other intangible assets, operating lease right-of-use assets and property and equipment [member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement technique | 1.7 percent to 4.8 percent | ||
Discount rate | Goodwill [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement technique | 12.0 percent | ||
Discount rate | Other intangible assets, operating lease right-of-use assets and property and equipment [member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value measurement technique | 7.0 percent to 12.0 percent |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 772 | $ 867 |
Operating lease liabilities | 971 | 1,037 |
Property and equipment, net | 40 | 52 |
Current maturities of long-term debt | 56 | 37 |
Long-term debt | $ 196 | $ 208 |
Weighted average remaining lease term, operating leases | 12 years 3 months 18 days | 12 years 9 months 18 days |
Weighted average remaining lease term, finance leases | 7 years 9 months 18 days | 8 years 7 months 6 days |
Weighted average discount rate, operating leases | 3.82% | 3.76% |
Weighted average discount rate, finance leases | 5.85% | 5.83% |
Accounts payable, accrued expenses and other | ||
Lessee Disclosure [Abstract] | ||
Accounts payable, accrued expenses and other | $ 170 | $ 133 |
Operating lease liabilities, current | $ 170 | $ 133 |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Lessee Disclosure [Abstract] | |||
Operating lease expense for fixed payments | $ 129 | $ 144 | |
Finance lease expense, amortization of ROU assets | 26 | 30 | |
Finance lease expense, interest on lease liabilities | 14 | 14 | |
Variable lease expense | [1] | $ 17 | $ 168 |
[1] | Includes amounts related to variable operating lease terms and interest payments on finance leases. |
Leases Components of Lease Ex_2
Leases Components of Lease Expense 2018 (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Lessee Disclosure [Abstract] | |
Operating lease, fixed lease expense | $ 225 |
Operating lease, variable lease expense | $ 142 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: operating cash flows from operating leases | $ 149 | $ 187 |
Cash paid for amounts included in the measurement of lease liabilities: financing cash flows from finance leases | 26 | 42 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 33 | 48 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 20 | $ 61 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Lessee Disclosure [Abstract] | |
Finance leases, 2021 | $ 68 |
Finance leases, 2022 | 42 |
Finance leases, 2023 | 33 |
Finance leases, 2024 | 31 |
Finance leases, 2025 | 32 |
Finance leases, thereafter | 111 |
Finance lease, total minimum lease payments | 317 |
Less: imputed interest, finance leases | (65) |
Finance lease liabilities | 252 |
Operating leases, 2021 | 210 |
Operating leases, 2022 | 156 |
Operating leases, 2023 | 140 |
Operating leases, 2024 | 118 |
Operating leases, 2025 | 117 |
Operating leases, thereafter | 724 |
Operating leases, total minimum lease payments | 1,465 |
Less: imputed interest, operating leases | (324) |
Operating lease liabilities | $ 1,141 |
Leases Additional Information (
Leases Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Hotel | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessee Disclosure [Abstract] | |||
Hotels under operating leases | Hotel | 48 | ||
Hotels under finance leases | Hotel | 6 | ||
Number of finance leases that were the liabilities of VIEs | Hotel | 2 | ||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ | $ 258 | $ 0 | $ 0 |
Operating lease right-of-use assets [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ | 65 | ||
Property subject to a finance lease [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ | $ 4 |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. income (loss) before tax | $ (267) | $ 867 | $ 881 |
Foreign income (loss) before tax | (657) | 377 | 197 |
Income (loss) before income taxes | $ (924) | $ 1,244 | $ 1,078 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ (6) | $ 190 | $ 210 |
State | (32) | 60 | 53 |
Foreign | 69 | 128 | 60 |
Total current | 31 | 378 | 323 |
Federal | (102) | (61) | (52) |
State | (34) | (5) | (14) |
Foreign | (99) | 46 | 52 |
Total deferred | (235) | (20) | (14) |
Provision (benefit) for income taxes | $ (204) | $ 358 | $ 309 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax provision (benefit) | $ (194) | $ 261 | $ 226 |
State income taxes, net of U.S. federal tax benefit | (24) | 47 | 37 |
Impact of foreign operations | (106) | 31 | 26 |
Goodwill impairment loss | 22 | 0 | 0 |
Tax rate differential on U.S. federal net operating loss carryback | 14 | 0 | 0 |
Change in deferred tax asset valuation allowances | 116 | 13 | (6) |
Provision for uncertain tax positions | 7 | 16 | 16 |
Effects of the TCJ Act | 0 | 0 | (13) |
Corporate restructuring | 0 | 0 | 9 |
Other, net | (11) | (10) | (12) |
Provision (benefit) for income taxes | $ (204) | $ 358 | $ 309 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net tax loss carryforwards and carrybacks | $ 593 | $ 386 |
Compensation | 135 | 138 |
Reserves | 71 | 33 |
Operating and finance lease liabilities | 382 | 404 |
Deferred income tax assets | 271 | 260 |
Foreign tax credit carryforwards | 48 | 49 |
Other | 153 | 51 |
Total gross deferred tax assets | 1,653 | 1,321 |
Less: valuation allowance | (654) | (501) |
Deferred tax assets | 999 | 820 |
Brands | (1,147) | (1,133) |
Finite lived intangible assets | (74) | (140) |
Investment in foreign subsidiaries | (26) | (32) |
Operating and finance lease ROU assets | (207) | (210) |
Deferred tax liabilities | (1,454) | (1,515) |
Net deferred taxes | $ (455) | $ (695) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 395 | $ 318 | $ 283 |
Additions for tax positions related to prior years | 45 | 67 | 37 |
Additions for tax positions related to the current year | 56 | 13 | 16 |
Reductions for tax positions related to prior years | (13) | (3) | (15) |
Settlements | (37) | (1) | 0 |
Lapse of statute of limitations | (1) | (2) | (3) |
Currency translation adjustment | 6 | 1 | 0 |
Balance at end of year | $ 451 | $ 395 | $ 318 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Adjustment to complete accounting related to TCJ Act | $ 2 | ||
Deferred tax assets, operating loss carryforwards, domestic | $ 36 | ||
Deferred tax assets, operating loss carryforwards, state | 2 | ||
Loss carryforwards, separate return limitation year | 125 | ||
Deferred tax assets, foreign net operating loss carryforwards | 502 | ||
Deferred tax assets, net operating loss carryforwards due to expire | $ 36 | ||
Net operating loss carryforwards expiration range | 2021 and 2040 | ||
Net operating loss carryforwards due to expire in one year | less than $1 million | ||
Deferred tax assets, net operating loss carryforwards not subject to expiration | $ 504 | ||
Deferred tax assets, tax loss carryforwards, not subject to expiration | 53 | ||
Net operating loss carryforwards valuation allowance | 451 | ||
Deferred income tax benefit, before valuation allowance | 157 | ||
Deferred income tax benefit, valuation allowance | 31 | ||
Deferred income tax benefit, after valuation allowance | 126 | ||
Valuation allowance on deferred tax assets generated in current year | 62 | ||
Valuation allowance on deferred tax assets in existence at beginning of year | 23 | ||
Deferred tax asset revaluation, change in valuation allowance | 37 | ||
Deferred tax asset valuation allowance total increase | 153 | ||
Interest and penalties expense related to uncertain tax positions | 13 | $ 12 | 6 |
Accrual for interest and penalties | 65 | 52 | |
Unrecognized tax benefits that would impact effective tax rate | 400 | 380 | |
Expected decrease in unrecognized tax benefits over the next 12 months | 82 | ||
Income tax examination, estimate of possible loss | 817 | ||
Accrual related to IRS proposed additional tax owed | 97 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards or carrybacks | 102 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards or carrybacks | 2,100 | ||
Deferred tax assets, return limitation year loss carryforward, federal | 25 | ||
Tax loss carryforwards, other | 101 | ||
Deferred tax assets, other tax loss carryforwards | 22 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards or carrybacks | 27 | ||
Deferred tax assets, return limitation year loss carryforward, state | $ 6 | ||
Restructuring [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred other tax expense (benefit) | 9 | ||
Remeasurement of DTAs/DTLs, uncertain tax position reserves and other tax liabilities [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Adjustment to complete accounting related to TCJ Act | 10 | ||
Outside basis difference in controlled foreign corporation [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Adjustment to complete accounting related to TCJ Act | $ 31 | ||
U.S. DTLs [member] | Restructuring [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred other tax expense (benefit) | 12 | ||
Remeasurement of DTAs/DTLs [member] | Restructuring [member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred other tax expense (benefit) | $ (3) |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Projected Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Domestic plan [member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | $ 382 | $ 357 | ||
Service cost | 0 | 0 | ||
Interest cost | 10 | 14 | $ 12 | |
Prior service credit | [1] | 0 | 0 | |
Actuarial loss | 31 | 37 | ||
Settlements and curtailments | (1) | (2) | ||
Effect of foreign currency exchange rates | 0 | 0 | ||
Benefits paid | (23) | (24) | ||
Benefit obligation at end of year | 399 | 382 | 357 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 318 | 274 | ||
Actual return on plan assets, net of expenses | 41 | 53 | ||
Employer contributions | 8 | 17 | ||
Settlements | (1) | (2) | ||
Effect of foreign currency exchange rates | 0 | 0 | ||
Benefits paid | (23) | (24) | ||
Fair value of plan assets at end of year | 343 | 318 | 274 | |
Funded status at end of year (underfunded) | (56) | (64) | ||
Defined benefit plan, accumulated benefit obligation | 399 | 382 | ||
U.K. plan [member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 445 | 375 | ||
Service cost | 3 | 2 | ||
Interest cost | 8 | 10 | 9 | |
Prior service credit | [1] | 0 | (3) | |
Actuarial loss | 78 | 62 | ||
Settlements and curtailments | 0 | 0 | ||
Effect of foreign currency exchange rates | 22 | 13 | ||
Benefits paid | (15) | (14) | ||
Benefit obligation at end of year | 541 | 445 | 375 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 404 | 340 | ||
Actual return on plan assets, net of expenses | 66 | 57 | ||
Employer contributions | 10 | 9 | ||
Settlements | 0 | 0 | ||
Effect of foreign currency exchange rates | 20 | 12 | ||
Benefits paid | (15) | (14) | ||
Fair value of plan assets at end of year | 485 | 404 | 340 | |
Funded status at end of year (underfunded) | (56) | (41) | ||
Defined benefit plan, accumulated benefit obligation | 541 | 445 | ||
International plans [member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 87 | 83 | ||
Service cost | 1 | 1 | ||
Interest cost | 2 | 2 | 2 | |
Prior service credit | [1] | 0 | 0 | |
Actuarial loss | 2 | 6 | ||
Settlements and curtailments | 0 | (1) | ||
Effect of foreign currency exchange rates | 3 | 0 | ||
Benefits paid | (5) | (4) | ||
Benefit obligation at end of year | 90 | 87 | 83 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 68 | 63 | ||
Actual return on plan assets, net of expenses | 3 | 6 | ||
Employer contributions | 2 | 4 | ||
Settlements | 0 | (1) | ||
Effect of foreign currency exchange rates | 2 | 0 | ||
Benefits paid | (5) | (4) | ||
Fair value of plan assets at end of year | 70 | 68 | $ 63 | |
Funded status at end of year (underfunded) | (20) | (19) | ||
Defined benefit plan, accumulated benefit obligation | $ 90 | $ 87 | ||
[1] | Relates to U.K. pension equalization requirements. |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | $ (56) | $ (64) |
U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (56) | (41) |
International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (20) | (19) |
Other non-current assets | Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 0 | 0 |
Other non-current assets | U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 0 | 0 |
Other non-current assets | International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 11 | 10 |
Other liabilities [member] | Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (56) | (64) |
Other liabilities [member] | U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (56) | (41) |
Other liabilities [member] | International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | $ (31) | $ (29) |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ 4 | $ (3) | $ 22 |
Prior service cost (credit) | (4) | (4) | (4) |
Amortization of net loss | (4) | (3) | (3) |
Net amount recognized in accumulated other comprehensive loss | (4) | (10) | 15 |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 41 | 29 | (14) |
Prior service cost (credit) | 0 | (3) | 4 |
Amortization of net loss | (4) | (3) | (4) |
Net amount recognized in accumulated other comprehensive loss | 37 | 23 | (14) |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 3 | 3 | 3 |
Prior service cost (credit) | 0 | 0 | 0 |
Amortization of net loss | (1) | (1) | (1) |
Net amount recognized in accumulated other comprehensive loss | $ 2 | $ 2 | $ 2 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Pension Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 3 | $ 6 | $ 6 |
Interest cost | 10 | 14 | 12 |
Expected return on plan assets | (17) | (19) | (19) |
Amortization of prior service cost | 4 | 4 | 3 |
Amortization of net loss | (4) | (3) | (3) |
Net periodic pension cost (credit) | 4 | 8 | 5 |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 3 | 2 | 3 |
Interest cost | 8 | 10 | 9 |
Expected return on plan assets | (20) | (19) | (21) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 4 | 3 | 4 |
Net periodic pension cost (credit) | (5) | (4) | (5) |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 2 | 2 |
Interest cost | 2 | 2 | 2 |
Expected return on plan assets | (3) | (3) | (3) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 1 | 1 | 1 |
Net periodic pension cost (credit) | $ 1 | $ 2 | $ 2 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 2.40% | 3.20% | |
Discount rate, net periodic pension cost | 3.20% | 4.30% | 3.60% |
Expected return on plan assets, net periodic pension cost | 6.30% | 7.00% | 7.00% |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 1.30% | 2.10% | |
Salary inflation, benefit obligation | 2.10% | 1.60% | |
Pension inflation, benefit obligation | 2.70% | 2.80% | |
Discount rate, net periodic pension cost | 2.10% | 3.10% | 2.60% |
Expected return on plan assets, net periodic pension cost | 5.00% | 5.50% | 5.50% |
Salary inflation, net periodic pension cost | 1.60% | 1.80% | 1.80% |
Pension inflation, net periodic pension cost | 2.80% | 3.00% | 3.00% |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 1.80% | 2.20% | |
Salary inflation, benefit obligation | 2.20% | 2.20% | |
Pension inflation, benefit obligation | 1.80% | 1.90% | |
Discount rate, net periodic pension cost | 2.00% | 3.10% | 2.90% |
Expected return on plan assets, net periodic pension cost | 2.70% | 4.30% | 4.60% |
Salary inflation, net periodic pension cost | 2.20% | 2.20% | 2.20% |
Pension inflation, net periodic pension cost | 1.90% | 1.80% | 1.80% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Pension Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Domestic plan [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 343 | $ 318 | $ 274 | |
Domestic plan [member] | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2 | 2 | ||
Domestic plan [member] | Common collective trusts [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 341 | 316 | |
U.K. plan [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 485 | 404 | 340 | |
U.K. plan [member] | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 45 | 25 | ||
U.K. plan [member] | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 75 | 61 | ||
U.K. plan [member] | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 43 | 40 | ||
U.K. plan [member] | Bond funds [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 74 | 54 | |
U.K. plan [member] | Alternative investments [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 105 | 169 | ||
U.K. plan [member] | Alternative investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 87 | ||
U.K. plan [member] | Other Investments [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 56 | 55 | |
International plans [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 70 | 68 | $ 63 | |
International plans [member] | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 12 | 12 | ||
International plans [member] | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3 | 2 | ||
International plans [member] | Equity funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 4 | 4 | ||
International plans [member] | Bond funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 6 | 6 | ||
International plans [member] | Common collective trusts [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | $ 45 | $ 44 | |
[1] | Certain investments are measured at net asset value per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Domestic plan [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 33 |
2022 | 26 |
2023 | 26 |
2024 | 26 |
2025 | 26 |
2026-2030 | 118 |
Defined benefit plan expected future benefit payments | 255 |
U.K. plan [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 15 |
2022 | 16 |
2023 | 16 |
2024 | 17 |
2025 | 17 |
2026-2030 | 88 |
Defined benefit plan expected future benefit payments | 169 |
International plans [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 13 |
2022 | 6 |
2023 | 6 |
2024 | 6 |
2025 | 5 |
2026-2030 | 26 |
Defined benefit plan expected future benefit payments | $ 62 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer plans, pension, plan assets | $ 372,000,000 | $ 345,000,000 | |
Multiemployer plans, pension, accumulated benefit obligation | 426,000,000 | 407,000,000 | |
Defined contribution plan, cost | 16,000,000 | $ 17,000,000 | $ 16,000,000 |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | 15,000,000 | ||
2021 | 33,000,000 | ||
2022 | 26,000,000 | ||
2023 | 26,000,000 | ||
2024 | 26,000,000 | ||
2025 | 26,000,000 | ||
2026-2030 | 118,000,000 | ||
Defined benefit plan expected future benefit payments | $ 255,000,000 | ||
Domestic plan [member] | Equity securities [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 80 percent | 80 percent | |
Domestic plan [member] | Debt securities [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 20 percent | 20 percent | |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $ 10,000,000 | ||
2021 | 15,000,000 | ||
2022 | 16,000,000 | ||
2023 | 16,000,000 | ||
2024 | 17,000,000 | ||
2025 | 17,000,000 | ||
2026-2030 | 88,000,000 | ||
Defined benefit plan expected future benefit payments | $ 169,000,000 | ||
UK and international plans [member] | Debt and equity securities [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 75 percent | 75 percent | |
UK and international plans [member] | Bond funds [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage | 25 percent | 25 percent | |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected employer contribution in next year | $ 3,000,000 | ||
2021 | 13,000,000 | ||
2022 | 6,000,000 | ||
2023 | 6,000,000 | ||
2024 | 6,000,000 | ||
2025 | 5,000,000 | ||
2026-2030 | 26,000,000 | ||
Defined benefit plan expected future benefit payments | $ 62,000,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Additional Information on Restricted Stock Units (Details) - Restricted stock units (RSUs) [member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Additional Information On Restricted Stock Units [Line Items] | |||
Number of shares granted | 942 | 963 | 912 |
Weighted average grant date fair value per share, granted | $ 93.48 | $ 83.47 | $ 79.31 |
Aggregate intrinsic value of shares vested | $ 97 | $ 92 | $ 123 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Restricted Stock Units Award Activity (Details) - Restricted stock units (RSUs) [member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning balance | 1,780 | ||
Number of shares granted | 942 | 963 | 912 |
Vested | (984) | ||
Forfeited | (245) | ||
Outstanding, ending balance | 1,493 | 1,780 | |
Weighted average grant date fair value, outstanding beginning balance | $ 77.35 | ||
Weighted average grant date fair value per share, granted | 93.48 | $ 83.47 | $ 79.31 |
Weighted average grant date fair value, vested | 74.42 | ||
Weighted average grant date fair value, forfeited | 86.99 | ||
Weighted average grant date fair value, outstanding ending balance | $ 88.55 | $ 77.35 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Additional Information on Stock Options (Details) - Stock options [member] - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Additional Information on Stock Options [Line Items] | |||
Number of options granted | 755 | 758 | 612 |
Weighted average exercise price per share | $ 93.33 | $ 83.11 | $ 79.36 |
Weighted average grant date fair value per share | $ 21.47 | $ 21.08 | $ 23.72 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock options [member] | 12 Months Ended | |||
Dec. 31, 2020Rate | Dec. 31, 2019Rate | Dec. 31, 2018Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 23.69% | 23.51% | 27.91% |
Dividend yield | [2] | 0.55% | 0.81% | 0.74% |
Risk-free interest rate | [3] | 0.96% | 2.47% | 2.73% |
Expected term (in years) | [4] | 6 years | 6 years | 6 years |
[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 terms of the options. |
Share-Based Compensation - Sc_5
Share-Based Compensation - Schedule of Stock Options Activity (Details) - Stock options [member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding, beginning balance | 2,828 | ||||
Granted | 755 | 758 | 612 | ||
Exercised | (355) | ||||
Forfeited | (201) | ||||
Outstanding, ending balance | 3,027 | [1] | 2,828 | ||
Exercisable, ending balance | [2] | 1,764 | |||
Weighted average exercise price, beginning balance | $ 65.72 | ||||
Weighted average exercise price, granted | 93.33 | $ 83.11 | $ 79.36 | ||
Weighted average exercise price, exercised | 60.09 | ||||
Weighted average exercise price, forfeited | 86.55 | ||||
Weighted average exercise price, ending balance | 71.88 | [1] | $ 65.72 | ||
Weighted average exercise price, exercisable | [2] | $ 60.31 | |||
Outstanding, aggregate intrinsic value | $ 107 | ||||
Outstanding, weighted average remaining contractual term | 7 years | ||||
Exercisable, aggregate intrinsic value | $ 83 | ||||
Exercisable, weighted average remaining contractual term | 5 years 9 months 18 days | ||||
[1] | The aggregate intrinsic value was $107 million and the weighted average remaining contractual term was 7.0 years. | ||||
[2] | The aggregate intrinsic value was $83 million and the weighted average remaining contractual term was 5.8 years |
Share-Based Compensation - Sc_6
Share-Based Compensation - Schedule of Additional Information on Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
EBITDA CAGR [member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 174,000 | [1] | 192,000 | 183,000 | |
Weighted average grant date fair value per share, granted | $ 93.33 | [1] | $ 83.11 | $ 79.36 | |
Aggregate intrinsic value of shares vested | $ 29 | $ 0 | $ 0 | [2] | |
Free cash flow CAGR [member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 174,000 | [1] | 192,000 | 183,000 | |
Weighted average grant date fair value per share, granted | $ 93.33 | $ 83.11 | $ 79.36 | ||
Aggregate intrinsic value of shares vested | $ 29 | $ 0 | $ 0 | [2] | |
Performance shares [member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance achievement shares modified | 1,020,000 | ||||
Performance achievement shares modified, modification date fair value per share | $ 102.95 | ||||
Incremental expense related to modification of grants recognized in the year of modification | $ 44 | ||||
Incremental expense related to modification of grants recognized over the remaining terms of the awards | $ 62 | ||||
2018 Awards [Member] | Performance shares [member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance achievement shares modified | 392,000 | ||||
2019 Awards [Member] | Performance shares [member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance achievement shares modified | 340,000 | ||||
2020 Awards [Member] | Performance shares [member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance achievement shares modified | 288,000 | ||||
[1] | This performance measure relates to the original awards and, as discussed above and in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies," we modified our outstanding performance awards in December 2020 whereby the achievement for the performance-based portion of our outstanding awards will be measured under four new performance measures, which include: (i) Adjusted EBITDA, (ii) FCF per share, (iii) NUG CAGR and (iv) RevPAR index growth. | ||||
[2] | The aggregate intrinsic value of performance shares vested was less than $1 million . |
Share-Based Compensation - Sc_7
Share-Based Compensation - Schedule of Performance Shares Award Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
EBITDA CAGR [member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding | [1] | 510 | 527 | ||
Number of shares granted | 174 | [1] | 192 | 183 | |
Performance achievement share adjustments | [1],[2] | 218 | |||
Vested | [1] | (316) | |||
Forfeited | [1] | (93) | |||
Weighted average grant date fair value, outstanding beginning balance | [1] | $ 74.46 | |||
Weighted average grant date fair value per share, granted | 93.33 | [1] | $ 83.11 | $ 79.36 | |
Performance achievement share adjustments, grant date fair value per share | [1],[2] | 64.29 | |||
Weighted average grant date fair value, vested | [1] | 58.45 | |||
Weighted average grant date fair value, forfeited or canceled | [1] | 84.78 | |||
Weighted average grant date fair value, outstanding ending balance | [1] | $ 84.57 | $ 74.46 | ||
Free cash flow CAGR [member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding | [1] | 510 | 527 | ||
Number of shares granted | 174 | [1] | 192 | 183 | |
Performance achievement share adjustments | [1],[2] | 218 | |||
Vested | [1] | (316) | |||
Forfeited | [1] | (93) | |||
Weighted average grant date fair value, outstanding beginning balance | [2] | $ 74.46 | |||
Weighted average grant date fair value per share, granted | 93.33 | $ 83.11 | $ 79.36 | ||
Performance achievement share adjustments, grant date fair value per share | [1],[2] | 64.29 | |||
Weighted average grant date fair value, vested | [2] | 58.45 | |||
Weighted average grant date fair value, forfeited or canceled | [2] | 84.78 | |||
Weighted average grant date fair value, outstanding ending balance | [2] | $ 84.57 | $ 74.46 | ||
[1] | This performance measure relates to the original awards and, as discussed above and in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies," we modified our outstanding performance awards in December 2020 whereby the achievement for the performance-based portion of our outstanding awards will be measured under four new performance measures, which include: (i) Adjusted EBITDA, (ii) FCF per share, (iii) NUG CAGR and (iv) RevPAR index growth. | ||||
[2] | Reflects the number of shares achieved above target, based on actual performance, and includes the effect of the modifications; see above for further information. |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 97 | $ 154 | $ 127 |
Tax benefit | 35 | 41 | $ 42 |
Accrued liabilities | 12 | $ 16 | |
Unrecognized compensation costs related to unvested awards | $ 136 | ||
Unrecognized compensation costs related to unvested awards, weighted-average period | 1 year 7 months 6 days | ||
Shares of common stock reserved for future issuance, in millions | 12.9 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Earnings (loss) per share, Basic [Abstract] | ||||||||||||
Net income (loss) attributable to Hilton stockholders | $ (715) | $ 881 | $ 764 | |||||||||
Weighted average shares outstanding | 277 | 287 | 302 | |||||||||
Basic EPS | [1] | $ (0.81) | $ (0.29) | $ (1.55) | $ 0.06 | $ 0.62 | $ 1.01 | $ 0.90 | $ 0.54 | $ (2.58) | $ 3.07 | $ 2.53 |
Earnings (loss) per share, Diluted [Abstract] | ||||||||||||
Net income (loss) attributable to Hilton stockholders | $ (715) | $ 881 | $ 764 | |||||||||
Weighted average shares outstanding | [2] | 279 | 290 | 305 | ||||||||
Diluted EPS | [1] | $ (0.80) | $ (0.28) | $ (1.55) | $ 0.06 | $ 0.61 | $ 1 | $ 0.89 | $ 0.54 | $ (2.56) | $ 3.04 | $ 2.50 |
Antidilutive securities excluded from computation of EPS | [2] | 2 million | 1 million | 1 million | ||||||||
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. | |||||||||||
[2] | Approximately 2 million, 1 million and 1 million share-based compensation awards were excluded from the computation of diluted EPS for the years ended December 31, 2020, 2019 and 2018, respectively, because their effect would have been anti-dilutive under the treasury stock method. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (840) | |||
Ending balance | (860) | $ (840) | ||
Currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [1] | (549) | (545) | $ (513) |
Other comprehensive income (loss) before reclassifications | [1] | 33 | (5) | (70) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 5 | 1 | 0 |
Other comprehensive income (loss) | [1] | 38 | (4) | (70) |
Ending balance | [1] | (511) | (549) | (545) |
Pension liability adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [2] | (269) | (260) | (229) |
Other comprehensive income (loss) before reclassifications | [2] | (30) | (17) | (18) |
Amounts reclassified from accumulated other comprehensive loss | [2] | 10 | 8 | 9 |
Other comprehensive income (loss) | [2] | (20) | (9) | (9) |
Ending balance | [2] | (289) | (269) | (260) |
Cash flow hedge adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [3] | (22) | 23 | 1 |
Other comprehensive income (loss) before reclassifications | [3] | (46) | (35) | 17 |
Amounts reclassified from accumulated other comprehensive loss | [3] | 8 | (10) | 5 |
Other comprehensive income (loss) | [3] | (38) | (45) | 22 |
Ending balance | [3] | (60) | (22) | 23 |
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (840) | (782) | (741) | |
Other comprehensive income (loss) before reclassifications | (43) | (57) | (71) | |
Amounts reclassified from accumulated other comprehensive loss | 23 | (1) | 14 | |
Other comprehensive income (loss) | (20) | (58) | (57) | |
Ending balance | $ (860) | $ (840) | (782) | |
Accounting standards update 2018-02 | Currency translation adjustment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | [1] | 38 | ||
Accounting standards update 2018-02 | Pension liability adjustment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | [2] | (22) | ||
Accounting standards update 2018-02 | Cash flow hedge adjustment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | [3] | 0 | ||
Accounting standards update 2018-02 | Accumulated other comprehensive loss | Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | $ 16 | |||
[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 in loss on foreign currency transactions in our consolidated statements of operations. | |||
[2] | Amounts reclassified related to the amortization of prior service costs and amortization of net loss and were recognized in other non-operating income (loss), net in our consolidated statements of operations. | |||
[3] | Amounts reclassified related to interest rate swaps, including interest rate swaps that were dedesignated and subsequently settled, and forward contracts that hedge our foreign currency denominated fees and were recognized in interest expense and franchise and licensing fees, base and other management fees and other revenues from managed and franchised properties, respectively, in our consolidated statements of operations. |
Business Segments - Hotel Prope
Business Segments - Hotel Properties by Segment (Details) | 12 Months Ended |
Dec. 31, 2020RoomHotelSegment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | Segment | 2 |
Management and franchise | |
Segment Reporting Information [Line Items] | |
Number of managed hotels | 715 |
Number of franchised hotels | 5,646 |
Number of managed and franchised hotel rooms | Room | 990,857 |
Number of hotels with suspended operations at some time during the period [Line Items] | 1,245 |
Ownership | |
Segment Reporting Information [Line Items] | |
Number of hotels with suspended operations at some time during the period [Line Items] | 35 |
Number of owned and leased hotel properties | 61 |
Number of owned and leased hotel rooms | Room | 19,400 |
Number of wholly owned and leased hotels | 53 |
Number of non wholly owned hotels | 1 |
Number of hotels of consolidated VIEs | 2 |
Number of hotels owned or leased by unconsolidated affiliates | 5 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenues from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | $ 890 | $ 933 | $ 564 | $ 1,920 | $ 2,369 | $ 2,395 | $ 2,484 | $ 2,204 | $ 4,307 | $ 9,452 | $ 8,906 | |
Amortization of contract acquisition costs | (29) | (29) | (27) | |||||||||
Franchise and licensing fees | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 956 | 1,691 | 1,537 | |||||||||
Base and other management fees | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [1] | 144 | 394 | 385 | ||||||||
Incentive management fees | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 38 | 230 | 235 | |||||||||
Management and franchise | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 1,138 | 2,315 | 2,157 | |||||||||
Ownership | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 421 | 1,422 | 1,484 | |||||||||
Segment revenues | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 1,559 | 3,737 | 3,641 | |||||||||
Intersegment eliminations | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [1] | (3) | (43) | (44) | ||||||||
Other revenues | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | 73 | 101 | 98 | |||||||||
Direct reimbursements from managed and franchised properties | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [2] | 1,375 | 3,110 | 2,881 | ||||||||
Indirect reimbursements from manged and franchised properties | ||||||||||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||||||||||
Revenues | [2] | $ 1,332 | $ 2,576 | $ 2,357 | ||||||||
[1] | Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. | |||||||||||
[2] | Included in other revenues from managed and franchised properties in our consolidated statements of operations. |
Business Segments - Reconcili_2
Business Segments - Reconciliation of Segment Operating Income to Income before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Amortization of contract acquisition costs | $ (29) | $ (29) | $ (27) | |||||||||
Other revenues, less other expenses | 13 | 29 | 47 | |||||||||
Net other expenses from managed and franchised properties | (397) | (77) | (85) | |||||||||
Depreciation and amortization | (331) | (346) | (325) | |||||||||
General and administrative | (311) | (441) | (443) | |||||||||
Reorganization costs | (41) | 0 | 0 | |||||||||
Impairment losses | (258) | 0 | 0 | |||||||||
Gain on sale of assets, net | 0 | 81 | 0 | |||||||||
Operating income (loss) | $ (195) | $ 11 | $ (302) | $ 68 | $ 348 | $ 519 | $ 478 | $ 312 | (418) | 1,657 | 1,432 | |
Interest expense | (429) | (414) | (371) | |||||||||
Loss on foreign currency transactions | (27) | (2) | (11) | |||||||||
Loss on debt extinguishments | 48 | 0 | 0 | |||||||||
Other non-operating income (loss), net | (2) | 3 | 28 | |||||||||
Income (loss) before income taxes | (924) | 1,244 | 1,078 | |||||||||
Management and franchise | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income (loss) | [1] | 1,138 | 2,315 | 2,157 | ||||||||
Ownership | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income (loss) | [1] | (202) | 125 | 108 | ||||||||
Segment operating income | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income (loss) | $ 936 | $ 2,440 | $ 2,265 | |||||||||
[1] | Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. |
Business Segments - Schedule of
Business Segments - Schedule of Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 16,755 | $ 14,957 |
Corporate and other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 4,448 | 1,892 |
Management and franchise | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 11,065 | 11,455 |
Ownership | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,242 | $ 1,610 |
Business Segments - Schedule _2
Business Segments - Schedule of Revenues by Country (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 4,307 | $ 9,452 | $ 8,906 | |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 3,593 | 7,423 | 6,848 | |
All other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | [1] | $ 714 | $ 2,029 | $ 2,058 |
[1] | There are no countries included in this amount that individually represented more than 10 percent of total revenues for the years ended December 31, 2020, 2019 and 2018. |
Business Segments - Schedule _3
Business Segments - Schedule of Property and Equipment, Net by Country (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | $ 346 | $ 380 | |
United States | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 128 | 145 | |
United Kingdom | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 79 | 84 | |
Japan | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 77 | 71 | |
Germany | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 25 | 38 | |
All other | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | [1] | $ 37 | $ 42 |
[1] | There are no countries included in this amount that individually represented more than 10 percent of total property and equipment, net as of December 31, 2020 and 2019. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)Contract | Dec. 31, 2019USD ($) | |
Commitments and Contingencies [Line Items] | ||
Total current liabilities | $ 2,431 | $ 2,871 |
Marketing, sales and brand program commitments | 5 | 350 |
Commitment to fund loans | ||
Commitments and Contingencies [Line Items] | ||
Commitment to extend credit | $ 10 | |
Performance guarantees | ||
Commitments and Contingencies [Line Items] | ||
Number of contracts with performance guarantees | Contract | 4 | |
Guarantees, expiration | 2023 to 2039 | |
Guarantees, possible cash outlays | $ 18 | |
Total current liabilities | $ 7 | $ 3 |
Debt guarantee | ||
Commitments and Contingencies [Line Items] | ||
Guarantees, expiration | 2023 | |
Guarantees, possible cash outlays | $ 10 | |
Number of hotels with debt guarantees | Contract | 2 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Paid [Abstract] | |||
Interest paid | $ 433 | $ 360 | $ 330 |
Income Taxes Paid, Net [Abstract] | |||
Income taxes, net of refunds | $ 79 | $ 363 | $ 288 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenues | $ 890 | $ 933 | $ 564 | $ 1,920 | $ 2,369 | $ 2,395 | $ 2,484 | $ 2,204 | $ 4,307 | $ 9,452 | $ 8,906 | |
Operating income (loss) | (195) | 11 | (302) | 68 | 348 | 519 | 478 | 312 | (418) | 1,657 | 1,432 | |
Net income (loss) | (225) | (81) | (432) | 18 | 176 | 290 | 261 | 159 | (720) | 886 | 769 | |
Net income (loss) attributable to Hilton stockholders | $ (224) | $ (79) | $ (430) | $ 18 | $ 175 | $ 288 | $ 260 | $ 158 | $ (715) | $ 881 | $ 764 | |
Basic earnings (loss) per share | [1] | $ (0.81) | $ (0.29) | $ (1.55) | $ 0.06 | $ 0.62 | $ 1.01 | $ 0.90 | $ 0.54 | $ (2.58) | $ 3.07 | $ 2.53 |
Diluted earnings (loss) per share | [1] | $ (0.80) | $ (0.28) | $ (1.55) | $ 0.06 | $ 0.61 | $ 1 | $ 0.89 | $ 0.54 | $ (2.56) | $ 3.04 | $ 2.50 |
[1] | The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jun. 01, 2019 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||
Long-term debt, gross | $ 10,580 | $ 8,076 | |||
Senior notes due 2032 [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt Instrument, Face Amount | $ 1,500 | ||||
Debt instrument, interest rate, stated percentage | 3.625% | ||||
Debt issuance costs | $ 22 | ||||
Senior notes due 2026 [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.125% | ||||
Long-term debt, gross | $ 1,500 | 1,500 | |||
Senior notes due 2026 [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Premium paid to redeem debt instrument | 55 | ||||
Write off of deferred debt issuance cost | 14 | ||||
Repayments of long-term debt | $ 1,500 | ||||
Senior secured revolving credit facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 1.15% | ||||
Repayments of long-term debt | $ 225 | ||||
Long-term debt, gross | $ 1,690 | $ 195 | |||
Senior secured revolving credit facility [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayments of long-term debt | $ 250 | ||||
Long-term debt, gross | $ 1,440 |