Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 09, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 | 2021 | ||
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 | $ 32,816 | ||
Entity Common Stock, Shares Outstanding | 279,139,082 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tysons, Virginia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Current Assets: | |||
Cash and cash equivalents | $ 1,427 | $ 3,218 | |
Restricted cash and cash equivalents | 85 | 45 | |
Accounts receivable, net of allowance for credit losses | 1,068 | 771 | |
Prepaid expenses | 89 | 70 | |
Other | 202 | 98 | |
Total current assets | 2,871 | 4,202 | |
Intangibles and Other Assets: | |||
Goodwill | 5,071 | 5,095 | |
Brands | 4,883 | 4,904 | |
Operating lease right-of-use assets | 694 | 772 | |
Property and equipment, net | 305 | 346 | |
Deferred income tax assets | 213 | 194 | |
Other | 452 | 323 | |
Total intangibles and other assets | 12,570 | 12,553 | |
Total assets | 15,441 | 16,755 | |
Current Liabilities: | |||
Accounts payable, accrued expenses and other | 1,568 | 1,302 | |
Current maturities of long-term debt | [1] | 54 | 56 |
Current portion of deferred revenues | 350 | 370 | |
Total current liabilities | 3,019 | 2,431 | |
Long-term debt | 8,712 | 10,431 | |
Operating lease liabilities | 870 | 971 | |
Deferred revenues | 896 | 1,004 | |
Deferred income tax liabilities | 700 | 649 | |
Other | 746 | 989 | |
Total liabilities | 16,260 | 18,241 | |
Commitments and contingencies | |||
Equity (Deficit): | |||
Preferred stock | 0 | 0 | |
Common stock | 3 | 3 | |
Treasury stock, at cost | (4,443) | (4,453) | |
Additional paid-in capital | 10,720 | 10,552 | |
Accumulated deficit | (6,322) | (6,732) | |
Accumulated other comprehensive loss | (779) | (860) | |
Total Hilton stockholders' deficit | (821) | (1,490) | |
Noncontrolling interests | 2 | 4 | |
Total deficit | (819) | (1,486) | |
Total liabilities and equity (deficit) | 15,441 | 16,755 | |
Other intangible assets, net | |||
Intangibles and Other Assets: | |||
Finite-lived intangible assets, net | 194 | 266 | |
Management and franchise contracts, net | |||
Intangibles and Other Assets: | |||
Finite-lived intangible assets, net | 758 | 653 | |
Guest Loyalty Program [Member] | |||
Current Liabilities: | |||
Current portion of liability for guest loyalty program | 1,047 | 703 | |
Liability from guest loyalty program | $ 1,317 | $ 1,766 | |
[1] | Represents current maturities of finance lease liabilities and, as of December 31, 2021, the outstanding borrowings under the revolving credit facility of a consolidated VIE. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for credit losses | $ 126 | $ 132 |
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 | 332,011,359 | 330,511,254 |
Common stock, outstanding shares | 279,091,009 | 277,590,904 |
Treasury stock, shares | 52,920,350 | 52,920,350 |
Total current assets | $ 2,871 | $ 4,202 |
Total intangibles and other assets | 12,570 | 12,553 |
Total current liabilities | 3,019 | 2,431 |
Total liabilities | 16,260 | 18,241 |
Non current assets of variable interest entities | 184 | 199 |
Total current liabilities of variable interest entities | 50 | 57 |
Current assets of variable interest entities | 30 | 53 |
Total liabilities of variable interest entities | $ 212 | $ 248 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues | $ 5,788 | $ 4,307 | $ 9,452 | |
Owned and leased hotel expenses | 679 | 620 | 1,254 | |
Depreciation and amortization | 188 | 331 | 346 | |
General and administrative expenses | 405 | 311 | 441 | |
Reorganization costs | 0 | 41 | 0 | |
Impairment losses | 0 | 258 | 0 | |
Other expenses | 45 | 60 | 72 | |
Total expenses excluding reimbursable expenses | 1,317 | 1,621 | 2,113 | |
Other expenses from managed and franchised properties | 3,454 | 3,104 | 5,763 | |
Total expenses | 4,771 | 4,725 | 7,876 | |
Gain (loss) on sales of assets, net | (7) | 0 | 81 | |
Operating income (loss) | 1,010 | (418) | 1,657 | |
Interest expense | (397) | (429) | (414) | |
Loss on foreign currency transactions | (7) | (27) | (2) | |
Loss on debt extinguishments | (69) | (48) | 0 | |
Other non-operating income (loss), net | 23 | (2) | 3 | |
Income (loss) before income taxes | 560 | (924) | 1,244 | |
Income tax benefit (expense) | (153) | 204 | (358) | |
Net income (loss) | 407 | (720) | 886 | |
Net loss (income) attributable to noncontrolling interests | 3 | 5 | (5) | |
Net income (loss) attributable to Hilton stockholders | $ 410 | $ (715) | $ 881 | |
Basic EPS: | ||||
Basic EPS | $ 1.47 | $ (2.58) | $ 3.07 | |
Diluted EPS: | ||||
Diluted EPS | [1] | 1.46 | (2.58) | 3.04 |
Cash dividends declared per share | $ 0 | $ 0.15 | $ 0.60 | |
Total revenues excluding reimbursable revenues | ||||
Revenues | $ 2,444 | $ 1,600 | $ 3,766 | |
Franchise and licensing fees | ||||
Revenues | 1,493 | 945 | 1,681 | |
Base and other management fees | ||||
Revenues | 176 | 123 | 332 | |
Incentive management fees | ||||
Revenues | 98 | 38 | 230 | |
Owned and leased hotels | ||||
Revenues | 598 | 421 | 1,422 | |
Other revenues | ||||
Revenues | 79 | 73 | 101 | |
Other revenues from managed and franchised properties | ||||
Revenues | $ 3,344 | $ 2,707 | $ 5,686 | |
[1] | Certain shares related to share-based compensation were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method, including less than 1 million shares, 4 million shares, as revised, and 1 million shares for the years ended December 31, 2021, 2020 and 2019, respectively. The dilutive shares related to share-based compensation included in the previously reported weighted average shares outstanding of 279 million for the year ended December 31, 2020 were revised in the current period presentation, as the previously reported dilutive shares were determined to be anti-dilutive as a result of the net loss attributable to Hilton stockholders reported during the period. The result of the revision is an immaterial decrease in the previously reported diluted EPS for the year ended December 31, 2020 of $0.02. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 407 | $ (720) | $ 886 |
Other comprehensive income (loss), net of tax benefit (expense): | |||
Currency translation adjustment | (29) | 38 | (4) |
Pension liability adjustment | 80 | (20) | (9) |
Cash flow hedge adjustment | 31 | (38) | (45) |
Total other comprehensive income (loss) | 82 | (20) | (58) |
Comprehensive income (loss) | 489 | (740) | 828 |
Comprehensive loss (income) attributable to noncontrolling interests | 2 | 5 | (5) |
Comprehensive income (loss) attributable to Hilton stockholders | $ 491 | $ (735) | $ 823 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Currency translation adjustment, tax benefit (expense) | $ 6 | $ (24) | $ (8) |
Pension liability adjustment, tax benefit (expense) | (27) | 7 | 3 |
Cash flow hedge adjustment, tax benefit (expense) | $ (10) | $ 13 | $ 15 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities: | |||
Net income (loss) | $ 407 | $ (720) | $ 886 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 188 | 331 | 346 |
Impairment losses | 0 | 258 | 0 |
Loss (gain) on sales of assets, net | 7 | 0 | (81) |
Loss on foreign currency transactions | 7 | 27 | 2 |
Loss on debt extinguishments | 69 | 48 | 0 |
Share-based compensation expense | 193 | 97 | 154 |
Amortization of deferred financing costs and discount | 16 | 17 | 16 |
Deferred income taxes | (4) | (235) | (20) |
Contract acquisition costs | (200) | (50) | (90) |
Accounts receivable, net | (301) | 488 | (105) |
Prepaid expenses | (22) | 60 | 6 |
Other current assets | (107) | (26) | 15 |
Accounts payable, accrued expenses and other | 273 | (414) | 99 |
Change in operating lease right-of-use assets | 96 | 94 | 43 |
Increase (Decrease) in Operating Lease Liability | (123) | (142) | (80) |
Change in deferred revenues | (128) | 215 | (17) |
Change in other liabilities | (111) | 8 | (14) |
Other | (78) | 13 | 4 |
Net cash provided by operating activities | 109 | 708 | 1,384 |
Investing Activities: | |||
Capital expenditures for property and equipment | (35) | (46) | (81) |
Proceeds from asset dispositions | 6 | 0 | 120 |
Capitalized software costs | (44) | (46) | (124) |
Other | 16 | (15) | (38) |
Net cash used in investing activities | (57) | (107) | (123) |
Financing Activities: | |||
Borrowings | 1,510 | 4,590 | 2,200 |
Repayment of debt | (3,230) | (2,121) | (1,547) |
Debt issuance costs and redemption premiums | (76) | (71) | (29) |
Dividends paid | 0 | (42) | (172) |
Repurchases of common stock | 0 | (296) | (1,538) |
Share-based compensation tax withholdings | 49 | 58 | 44 |
Proceeds from share-based compensation | 52 | 31 | 17 |
Other | 0 | (1) | 0 |
Net cash provided by (used in) financing activities | (1,793) | 2,032 | (1,113) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (10) | 0 | (2) |
Net increase (decrease) in cash, restricted cash and cash equivalents | (1,751) | 2,633 | 146 |
Cash, restricted cash and cash equivalents, beginning of period | 3,263 | 630 | 484 |
Cash, restricted cash and cash equivalents, end of period | 1,512 | 3,263 | 630 |
Supplemental Disclosures: | |||
Interest paid | 359 | 433 | 360 |
Income taxes, net of refunds | 181 | 79 | 363 |
Recognized as a reduction of franchise and licensing fees and base and other management fees | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Amortization of contract acquisition costs | 32 | 29 | 29 |
Guest Loyalty Program [Member] | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Change in liability for guest loyalty program | $ (105) | $ 610 | $ 191 |
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 | Noncontrolling interests | |
Beginning balance, shares at Dec. 31, 2018 | 295,000,000 | |||||||||
Beginning balance, equity (deficit) attributable to Hilton stockholders at Dec. 31, 2018 | $ 3 | $ (2,625) | $ 10,372 | $ (6,417) | $ (782) | |||||
Beginning balance, equity attributable to noncontrolling interest at Dec. 31, 2018 | $ 7 | |||||||||
Beginning balance, equity (deficit) at Dec. 31, 2018 | $ 558 | |||||||||
Net income (loss) attributable to Hilton stockholders | 881 | 881 | ||||||||
Net income (loss) 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 | 117 | ||||||||
Deconsolidation of a variable interest entity | (2) | (2) | ||||||||
Ending balance, shares at Dec. 31, 2019 | 279,000,000 | |||||||||
Ending balance, equity (deficit) attributable to Hilton stockholders at Dec. 31, 2019 | $ 3 | (4,169) | 10,489 | (5,965) | (840) | |||||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2019 | 10 | |||||||||
Ending balance, equity (deficit) at Dec. 31, 2019 | (472) | |||||||||
Cumulative effect of the adoption of ASU | Accounting Standards Update 2016-02 | [1] | $ (256) | $ (256) | |||||||
Net income (loss) attributable to Hilton stockholders | (715) | (715) | ||||||||
Net income (loss) 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 | |||||||||
Share-based compensation | 58 | (5) | 63 | |||||||
Distributions | $ (1) | (1) | ||||||||
Ending balance, shares at Dec. 31, 2020 | 277,590,904 | 278,000,000 | ||||||||
Ending balance, equity (deficit) 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 (deficit) 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 | [2] | $ (10) | $ (10) | |||||||
Net income (loss) attributable to Hilton stockholders | 410 | 410 | ||||||||
Net income (loss) attributable to noncontrolling interests | (3) | 3 | ||||||||
Net income (loss) | 407 | |||||||||
Currency translation adjustment | (29) | (29) | ||||||||
Pension liability adjustment | 80 | 79 | 1 | |||||||
Cash flow hedge adjustment | 31 | 31 | ||||||||
Other comprehensive income (loss) | 81 | |||||||||
Other comprehensive income (loss), net of tax | 82 | 1 | ||||||||
Share-based compensation, shares | 1,000,000 | |||||||||
Share-based compensation | $ 178 | 10 | 168 | |||||||
Ending balance, shares at Dec. 31, 2021 | 279,091,009 | 279,000,000 | ||||||||
Ending balance, equity (deficit) attributable to Hilton stockholders at Dec. 31, 2021 | $ (821) | $ 3 | $ (4,443) | $ 10,720 | $ (6,322) | $ (779) | ||||
Ending balance, equity attributable to noncontrolling interest at Dec. 31, 2021 | (2) | $ 2 | ||||||||
Ending balance, equity (deficit) at Dec. 31, 2021 | (819) | |||||||||
Cumulative effect of the adoption of ASU | $ 6,322 | |||||||||
[1] | Relates to Accounting Standards Update ("ASU") No. 2016-02 ("ASU 2016-02"), Leases (Topic 842) , that was adopted on January 1, 2019. | |||||||||
[2] | Relates to ASU No. 2016-13 ("ASU 2016-13"), Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , that was adopted on January 1, 2020. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | OrganizationHilton 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 intellectual property, including brand names, trademarks and service marks ("IP"). As of December 31, 2021, we managed, franchised, owned or leased 6,837 hotels and resorts, including timeshare properties, totaling 1,074,791 rooms in 122 countries and territories. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 and the results of operations for the years ended December 31, 2021, 2020 and 2019. Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and other non-wholly owned 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 entities that own or lease real estate. 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 third-party 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 or have the ability to 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 requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. In particular, the coronavirus ("COVID-19") pandemic had a material adverse impact on our results for the years ended December 31, 2021 and 2020 when compared to periods prior to the onset of the pandemic, which was in early 2020, and it may continue to have an adverse impact in future periods. As such, the years ended December 31, 2021 and 2020, as well as upcoming periods, are unlikely to be comparable to periods prior to the onset of the pandemic or to other periods affected by the pandemic and are not indicative of future performance. Management has made estimates and judgments in light of these circumstances. 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. Summary of Significant Accounting Policies Revenue Recognition Revenues are primarily derived from: (i) management and franchise contracts with third-party hotel and resort owners; (ii) our owned and leased hotels; and (iii) license agreements with Hilton Grand Vacations Inc. ("HGV") and strategic partners, including co-branded credit card providers. 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 twelve months 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, such as those resulting from the COVID-19 pandemic, we may amend certain contracts with customers to provide short-term payment relief, expecting that we will 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 in the operation of the hotels for the hotel 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. • Hilton Honors rewards provide substantive rights for free or discounted goods or services to Hilton Honors members. Each of the identified performance obligations is considered to be a series of distinct services transferred over time, except for the performance obligation related to Hilton Honors rewards, which is satisfied at the point in time when the loyalty program point is redeemed by the loyalty program member. 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 licensing agreements for the use of our 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 our 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) strategic partners, including from co-branded credit card providers, which are recognized as revenue when points for our guest loyalty program, Hilton Honors, are issued, generally as spend with the strategic partner or co-branded credit card occurs; see further discussion below under "Hilton Honors." Management fees represent fees earned from hotels that we manage, usually under long-term contracts with the hotel 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, normally over a one-calendar year period (the "incentive period"), and, in some cases, may be subject to a stated return threshold to the hotel owner. 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 and franchise contracts with us is amortized over the life of the applicable contract as a reduction to base and other management fees and franchise and licensing fees, respectively. 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 IP over the terms of the franchise contracts and (ii) other licensing fees and base management fees and incentive management fees since they are allocated entirely to the wholly unsatisfied promise to transfer IP or provide management services, respectively, which form part of a single performance obligation in a series, over the term of the individual 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 program fees billed and collected in advance related to certain costs and expenses supporting the operations 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 program 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 expenses incurred by Hilton to operate the marketing and brand programs and shared services are recognized as incurred and 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 sales of other ancillary goods and services (e.g., parking) related to consolidated owned and leased hotels. 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 or discounted 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 or free room night for every four room nights reserved). This substantive right is considered a separate performance obligation to which a portion of the transaction price is allocated based on the estimated standalone selling price of the good or service, adjusted for the likelihood the hotel guest will exercise such right, and it is recognized as revenue when the good or service is redeemed. 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 collateral for certain guarantees and insurance, including self-insurance, furniture, fixtures and equipment replacement ("FF&E") reserves required under certain lease agreements and advanced deposits collected on behalf of managed and franchised hotels. 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 2007 transaction whereby we became a wholly owned subsidiary of affiliates of Blackstone 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 determine qualitatively that the fair value is 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 carrying value of the reporting unit exceeds its estimated fair value, an impairment loss would be recognized in our consolidated statement 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, Signia by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo 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 a brand intangible asset is less than its carrying value. If we determine qualitatively that the fair value is 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 of the brand is based on internal projections of expected future cash flows. If a brand intangible asset’s estimated 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 statement of operations as an impairment loss. Intangible Assets with Finite Useful Lives Certain finite-lived intangible assets were initially recorded at their fair value at the time of the Merger. These intangible assets consisted of management contracts, franchise contracts, leases, certain proprietary technologies and our Hilton Honors guest loyalty program. The intangible assets related to the franchise contracts, U.S. management contracts and certain proprietary technologies were fully amortized as of December 31, 2020. 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 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 and other is the contract term, generally including any extension periods that are at our sole option. These estimated useful lives are generally as follows: international management contracts recorded at the Merger (16 years); management contract acquisition costs and development commissions and other (20 to 30 years); franchise contract acquisition costs and development commissions and other (10 to 20 years); leases (16 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 or 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 and other 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 evaluate the carrying value of all finite-lived intangible assets for indicators of impairment, and, if such indicators 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 and exceeds the estimated fair value of the asset group, we recognize an impairment loss in our consolidated statement of operations for the amount by which the carrying value exceeds the estimated fair value. We allocate the impairment loss related to the asset group among the various assets within the asset group pro rata based on the relative carrying values of the respective assets. 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. Right-of-use ("ROU") assets of finance leases are included in property and equipment, net in our consolidated balance sheets; refer to "Leases" below for additional information. 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 remaining lease term. We evaluate the carrying value of our property and equipment for indicators of impairment and, if such indicators exist, we review the recoverability of the asset group by comparing the estimated undiscounted future cash flows to the net carrying value of the asset group. If the net carrying value of the asset group is determined to be more than its estimated undiscounted future cash flows and, therefore, is not considered to be recoverable and is in excess of the estimated fair value, we recognize an impairment loss in our consolidated statement of operations for the amount by which the carrying value exceeds the estimated fair value. We allocate the impairment loss related to the asset group among the various assets within the asset group pro rata based on the relative carrying values 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 lease upon modification of the contract. We have elected to account for the components in contracts in which we are the lessee, that contain fixed payments for both lease and non-lease components, as a single lease component. 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 ROU assets for indicators of impairment and, if such indicators exist, we review the recoverability of the related asset group by comparing the estimated undiscounted future cash flows to the net carrying value of the asset group. If the net carrying value of the asset group is determined to be more than its estimated undiscounted future 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 statement of operations for the amount the carrying value exceeds the estimated fair value. 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 values of the respective assets. Depending on the individual agreement, our operating leases may 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 FF&E 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, if any, 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 expenses 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 b |
Disposal
Disposal | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal | DisposalIn 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, 2021 | |
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, 2021: (in millions) Balance as of December 31, 2020 $ 1,312 Cash received in advance and not recognized as revenue 138 Revenue recognized (1)(2) (455) Other (3) 171 Balance as of December 31, 2021 $ 1,166 ____________ (1) Primarily related to Hilton Honors, including co-branded credit card arrangements. (2) Revenue recognized during the year ended December 31, 2021 included $25 million for performance obligations that were satisfied in a prior period as a result of a change to the estimated breakage of Hilton Honors points for which point expirations have been temporarily suspended. (3) Primarily represents changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues. Hilton Honors Points Pre-Sale In April 2020, we pre-sold Hilton Honors points to American Express for $1.0 billion in cash (the "Honors Points Pre-Sale"). 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 that they may establish or engage in from time to time. Upon receipt of the cash, we recognized $636 million in deferred revenues and the remainder in liability for guest loyalty program, which is recognized as revenue as discussed in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies" and for which the remaining deferred revenue as of December 31, 2021 is included in our co-branded credit card arrangement performance obligation below. Performance Obligations |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of December 31, 2021 and 2020, we consolidated two VIEs that each lease a hotel property. 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 losses and the right to receive benefits that could be significant to each of the VIEs individually. The assets of our consolidated VIEs are only available to settle the obligations of the respective entities, and the liabilities of the consolidated VIEs are non-recourse to us. Our consolidated balance sheets include the assets and liabilities of these entities, which primarily comprised the following: December 31, 2021 2020 (in millions) Cash and cash equivalents $ 18 $ 40 Property and equipment, net 60 76 Deferred income tax assets 62 57 Other non-current assets 62 66 Accounts payable, accrued expenses and other 15 27 Long-term debt (1) 179 203 Other long-term liabilities 16 17 ____________ (1) Includes finance lease liabilities of $153 million and $184 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the VIEs had revolving credit facilities with borrowing capacities totaling 4.5 billion Japanese yen ("JPY") (equivalent to $39 million), with 500 million JPY (equivalent to $4 million) included in long-term debt in our consolidated balance sheet, resulting in available borrowing capacities totaling 4.0 billion JPY (equivalent to $35 million). There were no amounts drawn under these facilities as of December 31, 2020. In December 2021, our consolidated VIEs borrowed an aggregate of 600 million JPY (equivalent to $5 million), which was also included in long-term debt in our consolidated balance sheet as of December 31, 2021. See Note 9: Debt for additional information. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill During the year ended December 31, 2020, we fully impaired the goodwill attributable to our ownership reporting unit, recognizing impairment losses of $104 million in our consolidated statement of operations; see Note 11: "Fair Value Measurements" for additional information. As such, as of December 31, 2021 and 2020, our goodwill balance was only attributable to our management and franchise reporting unit, which had no accumulated impairment losses as of either date, and the change during the year ended December 31, 2021 was due to foreign currency translation. Intangible Assets Changes to our brands intangible assets during the year ended December 31, 2021 were due to foreign currency translation. Finite-lived intangible assets were as follows: December 31, 2021 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management contracts recorded at Merger (1) $ 310 $ (275) $ 35 Contract acquisition costs 780 (170) 610 Development commissions and other 140 (27) 113 $ 1,230 $ (472) $ 758 Other intangible assets: Capitalized software costs $ 561 $ (460) $ 101 Leases (1) 138 (83) 55 Hilton Honors (1) 339 (301) 38 $ 1,038 $ (844) $ 194 December 31, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management contracts recorded at Merger (1) $ 317 $ (261) $ 56 Contract acquisition costs (2) 632 (144) 488 Development commissions and other 132 (23) 109 $ 1,081 $ (428) $ 653 Other intangible assets: Capitalized software costs $ 522 $ (378) $ 144 Leases (1)(3) 157 (95) 62 Hilton Honors (1) 342 (282) 60 $ 1,021 $ (755) $ 266 ____________ (1) Represents intangible assets that were initially recorded at fair value at the time of the Merger. (2) During the year ended December 31, 2020, we recognized impairment losses of $15 million included in our consolidated statement of operations. (3) During the year ended December 31, 2020, we recognized impairment losses of $46 million included in our consolidated statement of operations. See Note 11: "Fair Value Measurements" for additional information. Amortization of our finite-lived intangible assets was as follows: Year Ended December 31, 2021 2020 2019 (in millions) Recognized in depreciation and amortization expenses (1) $ 135 $ 274 $ 286 Recognized as a reduction of franchise and licensing fees and base and other management fees 32 29 29 ____________ (1) Includes amortization expense of $47 million, $164 million and $202 million for the years ended December 31, 2021, 2020 and 2019, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger, some of which fully amortized during 2020. We estimate future amortization expense of our finite-lived intangible assets that will be recognized in depreciation and amortization expenses as of December 31, 2021 to be as follows: Year (in millions) 2022 $ 110 2023 74 2024 24 2025 10 2026 9 Thereafter 115 $ 342 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment were as follows: December 31, 2021 2020 (in millions) Land $ 9 $ 11 Buildings and leasehold improvements 365 381 Furniture and equipment 339 346 Construction-in-progress 14 7 Finance lease ROU assets 83 87 810 832 Accumulated depreciation and amortization (1) (505) (486) $ 305 $ 346 ____________ (1) During the years ended December 31, 2021, 2020 and 2019, depreciation and amortization expenses on property and equipment was $53 million,$57 million and $60 million, respectively. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 (in millions) Accrued employee compensation and benefits $ 514 $ 404 Accounts payable 274 224 Operating lease liabilities, current 140 170 Insurance reserves, current 84 68 Other current liabilities and accrued expenses (1) 556 436 $ 1,568 $ 1,302 ____________ |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, were as follows: December 31, 2021 2020 (in millions) Senior secured revolving credit facility, due 2024 $ — $ 1,690 Senior secured term loan facility with a rate of 1.85%, due 2026 2,619 2,619 Senior notes with a rate of 5.375%, due 2025 500 500 Senior notes with a rate of 5.125%, due 2026 — 1,500 Senior notes with a rate of 4.875%, due 2027 600 600 Senior notes with a rate of 5.750%, due 2028 500 500 Senior notes with a rate of 3.750%, due 2029 800 800 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 1,100 Senior notes with a rate of 3.625%, due 2032 1,500 — Finance lease liabilities with a weighted average rate of 5.88%, due 2022 to 2030 208 252 Other debt of consolidated VIEs with a weighted average rate of 2.15%, due 2022 to 2028 26 19 8,853 10,580 Less: unamortized deferred financing costs and discount (87) (93) Less: current maturities of long-term debt (1) (54) (56) $ 8,712 $ 10,431 ____________ (1) Represents current maturities of finance lease liabilities and, as of December 31, 2021, the outstanding borrowings under the revolving credit facility of a consolidated VIE. Senior Notes As part of our response to the COVID-19 pandemic, we completed senior note 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 at that point in time. In February 2021, we issued $1.5 billion aggregate principal amount of 3.625% Senior Notes due 2032 (the "2032 Senior Notes") and incurred $21 million of debt issuance costs. 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 redeem all $1.5 billion in aggregate principal amount of our outstanding 5.125% Senior Notes due 2026, plus accrued and unpaid interest. In connection with the redemption, we paid a redemption premium of $55 million and accelerated the recognition of the unamortized deferred financing costs related to the redeemed notes of $14 million, which were both included in loss on debt extinguishment in our consolidated statement of operations for the year ended December 31, 2021. 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 related to the redeemed notes 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 "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 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 (the "2030 Senior Notes"). 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 Loan") and to repay $225 million outstanding on the senior secured revolving credit facility (the "Revolving Credit Facility"). As a result of the repayment and simultaneous amendment of the Term Loan, we accelerated the recognition of $10 million of unamortized deferred financing costs and discount and fees, which were included in other non-operating income, net in our consolidated statement of operations during the year ended December 31, 2019. The 2025 Senior Notes, the 4.875% Senior Notes due 2027, the 2028 Senior Notes, the 2029 Senior Notes, the 2030 Senior Notes, the 2031 Senior Notes and the 2032 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 restricted subsidiaries, other than Hilton Domestic Operating Company Inc. ("HOC"), an indirect wholly owned subsidiary of the Parent and 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, of which $250 million is available in the form of letters of credit, and the Term Loan. 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 restricted subsidiaries. During the year ended December 31, 2021, we fully repaid the $1,690 million outstanding debt balance on the Revolving Credit Facility, which we borrowed in 2020 in response to the COVID-19 pandemic. As of December 31, 2021, we had $60 million of letters of credit outstanding on the Revolving Credit Facility, resulting in an available borrowing capacity of $1,690 million. Other Debt of Consolidated VIEs In August 2021, one of our consolidated VIEs borrowed 500 million JPY (equivalent to $4 million as of December 31, 2021) on its revolving credit facility, which has a maturity date of June 2022; refer to Note 5: "Consolidated Variable Interest Entities" for additional information on the revolving credit facilities of our consolidated VIEs. In December 2021, our two consolidated VIEs each borrowed 300 million JPY (totaling to an equivalent of $5 million as of December 31, 2021) with zero percent interest rates and maturity dates in November 2024 and November 2028. Debt Maturities The contractual maturities of our long-term debt as of December 31, 2021 were as follows: Year (in millions) 2022 $ 54 2023 26 2024 26 2025 523 2026 2,660 Thereafter 5,564 $ 8,853 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other liabilities | Other Liabilities Other long-term liabilities were as follows: December 31, 2021 2020 (in millions) Other long-term tax liabilities $ 385 $ 400 Insurance reserves 151 189 Deferred employee compensation and benefits 111 116 Pension obligations 25 143 Other 74 141 $ 746 $ 989 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 622 $ — $ 622 $ — Liabilities: Long-term debt (1) 8,532 6,180 — 2,599 Interest rate swaps 41 — 41 — December 31, 2020 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 2,270 $ — $ 2,270 $ — Liabilities: Long-term debt (1) 10,216 6,366 — 4,293 Interest rate swaps 82 — 82 — ____________ (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 consolidated VIEs. The fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of December 31, 2021 and 2020. 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 as a result of the COVID-19 pandemic, 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", Note 7: "Property and Equipment" and Note 12: "Leases" for additional information on these impairment losses. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |
Lessee Lease Disclosures | 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, 2021, we leased 43 hotels under operating leases and five hotels under finance leases, two of which were the liabilities of consolidated VIEs, which are 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, 2021 2020 (dollars in millions) Operating leases: Operating lease right-of-use assets $ 694 $ 772 Accounts payable, accrued expenses and other 140 170 Operating lease liabilities 870 971 Finance leases: Property and equipment, net $ 33 $ 40 Current maturities of long-term debt 50 56 Long-term debt 158 196 Weighted average remaining lease term: Operating leases 11.0 years 12.3 years Finance leases 7.0 years 7.8 years Weighted average discount rate: Operating leases 3.87 % 3.82 % Finance leases 5.88 % 5.85 % The components of lease expense were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Operating lease expense for fixed payments $ 125 $ 129 $ 144 Finance lease expense: Amortization of ROU assets 23 26 30 Fixed interest on lease liabilities 13 14 14 Variable lease expense (1) 35 17 168 ____________ (1) Includes amounts related to variable rent expense for operating leases and variable interest expense for finance leases. Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2021 2020 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 187 $ 149 $ 187 Financing cash flows from finance leases 40 26 42 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 45 33 48 Finance leases 17 20 61 Our future minimum lease payments as of December 31, 2021 were as follows: Operating Finance Year (in millions) 2022 $ 177 $ 61 2023 146 35 2024 122 31 2025 119 28 2026 107 28 Thereafter 587 72 Total minimum lease payments 1,258 255 Less: imputed interest (248) (47) Total lease liabilities $ 1,010 $ 208 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 (in millions) U.S. income (loss) before income taxes $ 631 $ (267) $ 867 Foreign income (loss) before income taxes (71) (657) 377 Income (loss) before income taxes $ 560 $ (924) $ 1,244 The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Current: Federal $ 89 $ (6) $ 190 State 45 (32) 60 Foreign 23 69 128 Total current 157 31 378 Deferred: Federal 51 (102) (61) State (14) (34) (5) Foreign (41) (99) 46 Total deferred (4) (235) (20) Total provision (benefit) for income taxes $ 153 $ (204) $ 358 Reconciliations of the provision (benefit) for income taxes at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Statutory U.S. federal income tax provision (benefit) $ 118 $ (194) $ 261 State income taxes, net of U.S. federal income tax benefit 22 (24) 47 Impact of foreign operations 8 (106) 31 Goodwill impairment losses — 22 — Tax rate differential on U.S. federal net operating loss carryback — (14) — Changes in deferred tax asset valuation allowances 34 116 13 Income tax rate changes (1) (45) — — Provision for uncertain tax positions 15 7 16 Nondeductible compensation 15 — — Excess tax benefits related to share-based compensation (10) — — Other, net (4) (11) (10) Provision (benefit) for income taxes $ 153 $ (204) $ 358 ____________ (1) Income tax rate changes resulted in the remeasurement of our deferred tax assets and liabilities and other tax liabilities to the new tax rates, resulting in a $49 million deferred tax benefit and a $4 million current tax expense, respectively, which were recognized during the year ended December 31, 2021. 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, 2021 2020 (in millions) Deferred tax assets: Net tax loss carryforwards and carrybacks $ 649 $ 593 Compensation 101 135 Reserves 76 71 Operating and finance lease liabilities 341 382 Deferred income 278 271 Foreign tax credit carryforwards 48 48 Other 144 153 Total gross deferred tax assets 1,637 1,653 Less: valuation allowance (669) (654) Deferred tax assets 968 999 Deferred tax liabilities: Brands (1,152) (1,147) Finite-lived intangible assets (61) (74) Investment in foreign subsidiaries (24) (26) Operating and finance lease ROU assets (218) (207) Deferred tax liabilities (1,455) (1,454) Net deferred taxes $ (487) $ (455) As of December 31, 2021, we had: (i) state net operating loss carryforwards of $69 million, which resulted in deferred tax assets of $4 million; (ii) separate return limitation year loss carryforwards of $221 million, which resulted in federal deferred tax assets of $44 million and state deferred tax assets of $11 million; and (iii) foreign net operating loss carryforwards of $2.2 billion and other foreign tax loss carryforwards of $129 million, resulting in deferred tax assets of $556 million and $34 million, respectively. Approximately $44 million of our deferred tax assets as of December 31, 2021 related to net operating loss carryforwards that will expire between 2022 and 2041 with less than $1 million of that amount expiring in 2022. Approximately $516 million of our deferred tax assets as of December 31, 2021 resulted from net operating loss carryforwards that are not subject to expiration. Approximately $90 million of our deferred tax assets as of December 31, 2021 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 $488 million as of December 31, 2021 on the deferred tax assets relating to these tax loss carryforwards. As of December 31, 2021, we also had deferred tax assets for foreign tax credit carryforwards of $48 million that will expire within eight years, for which we have provided full valuation allowances. During the year ended December 31, 2021, we generated net operating losses in various jurisdictions and recorded a deferred tax benefit of $49 million for net operating losses, reduced by valuation allowances of $7 million, which resulted in a net deferred tax benefit of $42 million. We have also provided valuation allowances of $27 million on other deferred tax assets generated during 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 decreased total valuation allowances by $19 million. Overall, our total valuation allowance increased by $15 million during the year ended December 31, 2021. 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, 2021, we remain subject to federal and state examinations of our income tax returns for tax years from 2005 through 2021 and foreign examinations of our income tax returns for tax years from 1996 through 2021. Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Balance at beginning of year $ 451 $ 395 $ 318 Additions for tax positions related to prior years 33 45 67 Additions for tax positions related to the current year 2 56 13 Reductions for tax positions related to prior years (39) (13) (3) Settlements (66) (37) 1 Lapse of statute of limitations (2) (1) (2) Currency translation adjustment (4) 6 1 Balance at end of year $ 375 $ 451 $ 395 In prior periods, we received assessments for the tax years from 2006 through 2013 seeking proposed adjustments related to assertions by the IRS that: (i) certain foreign currency denominated intercompany loans from our foreign subsidiaries to certain U.S. subsidiaries should be recharacterized as equity for U.S. federal income tax purposes and constitute deemed dividends from such foreign subsidiaries to our U.S. subsidiaries and (ii) in calculating the amount of U.S. taxable income resulting from Hilton Honors, we should not reduce gross income by the estimated costs of future redemptions, but rather such costs would be deductible at the time the points are redeemed. As of December 31, 2021, we had entered into a tentative agreement to pay $48 million to settle both matters through the 2010 tax year, for which we had previously recorded reserves of $39 million. The settlement is subject to approval by the Joint Committee on Taxation. We continue to be subject to audit by the IRS on the two matters described above for the tax years subsequent to those subject to the settlement and may be assessed tax in the future on these same matters, and the amounts of such future assessments may be material. We have evaluated the amount of benefit more likely than not to be realized for these two matters and, as of December 31, 2021, we had recorded $49 million of unrecognized tax benefits related to these issues for the tax years 2011 through 2021. Subsequent to the aforementioned settlement, $36 million remains unsettled related to the two matters described above for the tax years from 2011 through 2013 and could result in additional U.S. federal income taxes. The decrease to our unrecognized tax benefits during the year ended December 31, 2021 primarily related to a tentative settlement agreement reached with the IRS for the tax years from 2006 through 2010. Additionally, reserves decreased due to the current year decrease in the liability for Hilton Honors. The increase 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 increases were partially offset by reductions and settlements, primarily relating to the conclusion of certain state audits. The increase to our unrecognized tax benefits during the year ended December 31, 2019 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. 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, 2021, 2020 and 2019, we recognized income tax expense related to interest and penalties of $16 million, $13 million and $12 million, respectively, in our consolidated statements of operations. As of both December 31, 2021 and 2020, we had accrued approximately $65 million 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, 2021 and 2020 were $343 million and $400 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 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 $35 million. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
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 employee benefit plans covering many of our international employees include: (i) a plan that covers employees in the U.K. (the "U.K. Plan"), which was frozen to further service accruals in 2013 and (ii) a number of smaller plans that cover employees in various countries around the world (the "International Plans"). The annual measurement date for all of our 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 difference between the fair value of plan assets and the projected benefit obligations 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 2021 2020 2021 2020 2021 2020 (in millions) Change in projected benefit obligation Benefit obligation at beginning of year $ 399 $ 382 $ 541 $ 445 $ 90 $ 87 Service cost — — 2 3 1 1 Interest cost 6 10 5 8 2 2 Actuarial loss (gain) (11) 31 (32) 78 (3) 2 Settlements — (1) — — (1) — Effect of foreign currency exchange rates — — (4) 22 (4) 3 Benefits paid (24) (23) (22) (15) (4) (5) Benefit obligation at end of year $ 370 $ 399 $ 490 $ 541 $ 81 $ 90 Change in plan assets Fair value of plan assets at beginning of year $ 343 $ 318 $ 485 $ 404 $ 70 $ 68 Actual return on plan assets, net of expenses 44 41 36 66 7 3 Employer contributions 11 8 11 10 2 2 Settlements — (1) — — (1) — Effect of foreign currency exchange rates — — (5) 20 (3) 2 Benefits paid (24) (23) (22) (15) (4) (5) Fair value of plan assets at end of year 374 343 505 485 71 70 Funded status at end of year (underfunded) 4 (56) 15 (56) (10) (20) Accumulated benefit obligation $ 370 $ 399 $ 490 $ 541 $ 81 $ 90 Amounts recognized in our consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2021 2020 2021 2020 2021 2020 (in millions) Other non-current assets $ 4 $ — $ 15 $ — $ 15 $ 11 Other liabilities — (56) — (56) (25) (31) Net amount recognized $ 4 $ (56) $ 15 $ (56) $ (10) $ (20) Amounts recognized in accumulated other comprehensive loss consisted of the following: Domestic Plan U.K. Plan International Plans 2021 2020 2019 2021 2020 2019 2021 2020 2019 (in millions) Net actuarial loss (gain) $ (38) $ 4 $ (3) $ (48) $ 41 $ 29 $ (7) $ 3 $ 3 Prior service cost (4) (4) (4) — — (3) — — — Amortization of net loss (5) (4) (3) (5) (4) (3) (1) (1) (1) Net amount recognized $ (47) $ (4) $ (10) $ (53) $ 37 $ 23 $ (8) $ 2 $ 2 The net periodic pension cost (credit) was as follows: Domestic Plan U.K. Plan International Plans 2021 2020 2019 2021 2020 2019 2021 2020 2019 (in millions) Service cost (1) $ 3 $ 3 $ 6 $ 2 $ 3 $ 2 $ 1 $ 1 $ 2 Interest cost (2) 6 10 14 5 8 10 2 2 2 Expected return on plan assets (2) (19) (17) (19) (21) (20) (19) (3) (3) (3) Amortization of prior service cost (2) 4 4 4 — — — — — — Amortization of net loss (2) 5 4 3 5 4 3 1 1 1 Net periodic pension cost (credit) $ (1) $ 4 $ 8 $ (9) $ (5) $ (4) $ 1 $ 1 $ 2 ____________ (1) Recognized in owned and leased hotel expenses and general and administrative expenses, as applicable, in our consolidated statements of operations. (2) Recognized in other non-operating income (loss), net in our consolidated statements of operations. The weighted average assumptions used to determine benefit obligations were as follows: Domestic Plan U.K. Plan International Plans 2021 2020 2021 2020 2021 2020 Discount rate 2.8 % 2.4 % 1.9 % 1.3 % 2.3 % 1.8 % Salary inflation N/A N/A 2.6 2.1 2.3 2.2 Pension inflation N/A N/A 3.1 2.7 1.9 1.8 The weighted average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2021 2020 2019 2021 2020 2019 2021 2020 2019 Discount rate 2.6 % 3.2 % 4.3 % 1.3 % 2.1 % 3.1 % 1.7 % 2.0 % 3.1 % Expected return on plan assets 6.3 6.3 7.0 4.5 5.0 5.5 2.4 2.7 4.3 Salary inflation N/A N/A N/A 2.1 1.6 1.8 2.2 2.2 2.2 Pension inflation N/A N/A N/A 2.7 2.8 3.0 1.8 1.9 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 third-party 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. As of December 31, 2021 and 2020, the target asset allocation, as a percentage of total plan assets, for the Domestic Plan was 75 percent and 80 percent, respectively, in funds that invest in equity securities and 25 percent and 20 percent, respectively, in funds that invest in debt securities. As of December 31, 2021 and 2020, the target asset allocation, as a percentage of total plan assets, for the U.K. Plan and International Plans 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, 2021 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash $ — $ 12 $ 12 Equity funds — — 3 Bond funds 3 42 — Level 2 Equity funds — — 4 Bond funds — 34 6 Net asset value (1) Cash equivalents — 34 — Equity funds — 86 Bond funds — 69 — Common collective trusts 371 — 46 Alternative investments — 168 — Other — 60 — $ 374 $ 505 $ 71 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 ____________ (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. As of December 31, 2021, 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) 2022 $ 33 $ 21 $ 12 2023 27 22 5 2024 26 22 5 2025 26 23 4 2026 25 23 4 2027-2031 114 125 22 $ 251 $ 236 $ 52 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation We recognized share-based compensation expense of $193 million, $97 million and $154 million during the years ended December 31, 2021, 2020 and 2019, respective ly, which included amounts reimbursed by hotel owners. The total tax benefit recognized related to share-based compensation expense was $54 million , $35 million and $41 million for the years ended December 31, 2021, 2020 and 2019, respectively . Share-based compensation expense recognized during the year ended December 31, 2020 included the reversal of expense recognized in prior years as a result of the determination that the performance conditions of our then-outstanding performance shares were no longer probable of achievement, partially offset by expense recorded in December 2020 as a result of the modification of our then-outstanding performance shares. As of December 31, 2021, unrecognized compensation costs for unvested awards under the 2017 Plan were approximately $132 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, 2021, there were 12.2 million shares of common stock available for future issuance under the 2017 Plan, including any shares subject to awards outstanding under the 2013 Omnibus Incentive Plan that 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, 2021 2020 2019 Number of shares granted (in thousands) 589 942 963 Weighted average grant date fair value per share $ 123.13 $ 93.48 $ 83.47 Aggregate intrinsic value of shares vested (in millions) $ 94 $ 97 $ 92 The following table summarizes the activity of our RSUs during the year ended December 31, 2021: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2020 1,493 $ 88.55 Granted 589 123.13 Vested (760) 86.66 Forfeited (76) 100.94 Outstanding as of December 31, 2021 1,246 105.28 Options The following table provides information about our option grants: Year Ended December 31, 2021 2020 2019 Number of options granted (in thousands) 361 755 758 Weighted average exercise price per share $ 123.13 $ 93.33 $ 83.11 Weighted average grant date fair value per share $ 41.15 $ 21.47 $ 21.08 The weighted average grant date fair value per share of the option grants for each year was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2021 2020 2019 Expected volatility (1) 33.13 % 23.69 % 23.51 % Dividend yield (2) — % 0.55 % 0.81 % Risk-free rate (3) 0.92 % 0.96 % 2.47 % Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of Hilton's stock price for a period that corresponds to the expected life of the option. (2) For options granted during the years ended December 31, 2020 and 2019, dividend yield was estimated based on our historical quarterly dividends and the three-month average stock price at the date of grant. However, after the 2020 options were granted, we suspended the declaration and payment of dividends and, at the time of grant for the 2021 options, we could not estimate when the payment of dividends would resume. (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, 2021: Number of Shares Weighted Average Exercise Price per Share (in thousands) Outstanding as of December 31, 2020 3,027 $ 71.88 Granted 361 123.13 Exercised (566) 64.25 Forfeited (19) 100.84 Outstanding as of December 31, 2021 (1) 2,803 80.03 Exercisable as of December 31, 2021 (2) 1,799 67.85 ____________ (1) The aggregate intrinsic value was $210 million and the weighted average remaining contractual term was 6.5 years. (2) The aggregate intrinsic value was $157 million and the weighted average remaining contractual term was 5.5 years. Performance Shares In December 2020, we modified our performance shares that were originally awarded in 2018, 2019 and 2020 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 adverse impact of the pandemic. Under the terms of the modified awards, a portion of the outstanding performance shares granted in 2019 were modified to vest based on performance prior to the pandemic and continued service, and the remaining portion of those performance shares, as well as the shares granted in 2020, were converted to performance shares that will vest based on different performance measures from those under the original award agreements. The modified terms did not change the vesting schedules of the original awards, and, as such, the performance shares that were originally awarded in 2018 and 2019 vested in December 2020 and December 2021, respectively. As a result of the performance share modifications, we recognized incremental share-based compensation expense of $70 million and $44 million during the years ended December 31, 2021 and 2020, respectively, and we expect to recognize the remaining incremental expense of $23 million during 2022. As of December 31, 2021, we determined that all of the performance measures for the outstanding performance shares were probable of achievement, with the applicable achievement factors estimated to be between the target and maximum achievement percentages. The following table provides information about our performance share grants for the last three years: Year Ended December 31, 2021 2020 (1) 2019 (1) Number of shares granted (in thousands) 241 348 384 Weighted average grant date fair value per share $ 123.13 $ 93.33 $ 83.11 Aggregate intrinsic value of shares vested (in millions) $ 36 $ 58 $ — ____________ (1) In December 2020, 288,000 and 340,000 performance shares from the 2020 grant and 2019 grant, respectively, were modified, as discussed above, with a modification date fair value per share of $102.95. The following table summarizes the activity of our performance shares for all of our performance measures during the year ended December 31, 2021: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2020 1,020 $ 84.57 Granted 241 123.13 Vested (391) 79.42 Forfeited (22) 94.55 Outstanding as of December 31, 2021 848 97.63 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ 410 $ (715) $ 881 Denominator: Weighted average shares outstanding 279 277 287 Basic EPS $ 1.47 $ (2.58) $ 3.07 Diluted EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ 410 $ (715) $ 881 Denominator: Weighted average shares outstanding (1) 281 277 290 Diluted EPS (1) $ 1.46 $ (2.58) $ 3.04 ____________ (1) Certain shares related to share-based compensation were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method, including less than 1 million shares, 4 million shares, as revised, and 1 million shares for the years ended December 31, 2021, 2020 and 2019, respectively. The dilutive shares related to share-based compensation included in the previously reported weighted average shares outstanding of 279 million for the year ended December 31, 2020 were revised in the current period presentation, as the previously reported dilutive shares were determined to be anti-dilutive as a result of the net loss attributable to Hilton stockholders reported during the period. The result of the revision is an immaterial decrease in the previously reported diluted EPS for the year ended December 31, 2020 of $0.02. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
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, 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) Other comprehensive income (loss) before reclassifications (36) 68 11 43 Amounts reclassified from accumulated other comprehensive loss 7 11 20 38 Net current period other comprehensive income (loss) (29) 79 31 81 Balance as of December 31, 2021 $ (540) $ (210) $ (29) $ (779) ____________ (1) Includes net investment hedge gains 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 which were recognized in our consolidated statements of operations in loss on sales of assets, net during the year ended December 31, 2021 and in loss on foreign currency transactions during the years ended December 31, 2020 and 2019. (2) Amounts reclassified related to the amortization of prior service cost and amortization of net loss and were recognized in other non-operating income (loss), net in our consolidated statements of operations. (3) Amounts reclassified were the result of hedging instruments, including: (a) interest rate swaps, inclusive of interest rate swaps that were dedesignated and subsequently settled, with related amounts recognized in interest expense in our consolidated statements of operations and (b) forward contracts that hedge our foreign currency denominated fees, with related amounts recognized in various revenue line items, as applicable, in our consolidated statements of operations. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2021 | |
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, each of which is reported as a segment based on (i) delivering a similar set of products and services and (ii) being managed separately given its 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 IP, and where we provide other contracted services to third-party owners, but the day-to-day services of the hotels are operated or managed by someone other than us. This segment generates its revenue from: (i) management and franchise fees charged to third-party owners; (ii) licensing fees from HGV and strategic partnerships, including co-branded credit card arrangements, for the right to use our IP; and (iii) fees for managing hotels in our ownership segment. As of December 31, 2021, this segment included 745 managed hotels and 5,978 franchised hotels consisting of 1,047,262 total rooms. As a result of the COVID-19 pandemic, during the years ended December 31, 2021 and 2020, the operations of certain hotels in our management and franchise segment were suspended for some period of time. As of December 31, 2021, nearly all of these hotels had reopened. As of December 31, 2021, our ownership segment included 54 properties totaling 18,151 rooms. The segment comprised 46 hotels that we leased, one hotel owned by a consolidated non-wholly owned entity, two hotels that were each leased by a consolidated VIE and five hotels owned or leased by unconsolidated affiliates. On December 31, 2021, five of our leased hotels exited our system or transferred to our management and franchise segment and, therefore, they are not included in the number of leased hotels as of December 31, 2021. Further, as a result of the COVID-19 pandemic, during the years ended December 31, 2021 and 2020, the operations of certain hotels in our ownership segment were suspended for some period of time; however, all of the hotels in our ownership segment that had suspended operations at some point as a result of the pandemic were open as of December 31, 2021. The performance of our operating segments is evaluated primarily on operating income (loss), without allocating amortization of contract acquisition costs, other revenues, other revenues and other expenses from managed and franchised properties, other expenses or general and administrative expenses. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2021 2020 2019 (in millions) Franchise and licensing fees $ 1,508 $ 956 $ 1,691 Base and other management fees (1) 203 144 394 Incentive management fees 98 38 230 Management and franchise 1,809 1,138 2,315 Ownership 598 421 1,422 Segment revenues 2,407 1,559 3,737 Amortization of contract acquisition costs (32) (29) (29) Other revenues 79 73 101 Direct reimbursements from managed and franchised properties (2) 1,503 1,375 3,110 Indirect reimbursements from managed and franchised properties (2) 1,841 1,332 2,576 Intersegment fees elimination (1) (10) (3) (43) Total revenues $ 5,788 $ 4,307 $ 9,452 ____________ (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, 2021 2020 2019 (in millions) Management and franchise (1) $ 1,809 $ 1,138 $ 2,315 Ownership (1) (91) (202) 125 Segment operating income 1,718 936 2,440 Amortization of contract acquisition costs (32) (29) (29) Other revenues, less other expenses 34 13 29 Net other expenses from managed and franchised properties (110) (397) (77) Depreciation and amortization expenses (188) (331) (346) General and administrative expenses (405) (311) (441) Reorganization costs — (41) — Impairment losses — (258) — Gain (loss) on sales of assets, net (7) — 81 Operating income (loss) 1,010 (418) 1,657 Interest expense (397) (429) (414) Loss on foreign currency transactions (7) (27) (2) Loss on debt extinguishments (69) (48) — Other non-operating income (loss), net 23 (2) 3 Income (loss) before income taxes $ 560 $ (924) $ 1,244 ____________ (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, 2021 2020 (in millions) Management and franchise $ 11,404 $ 11,065 Ownership 1,061 1,242 Corporate and other 2,976 4,448 $ 15,441 $ 16,755 Total revenues by country were as follows: Year Ended December 31, 2021 2020 2019 (in millions) U.S. $ 4,765 $ 3,593 $ 7,423 All other (1) 1,023 714 2,029 $ 5,788 $ 4,307 $ 9,452 ____________ (1) There are no countries included in these amounts that individually represented more than 10 percent of total revenues for the years ended December 31, 2021, 2020 and 2019. Property and equipment, net by country was as follows: December 31, 2021 2020 (in millions) U.S. $ 112 $ 128 U.K. 77 79 Japan 60 77 All other (1) 56 62 $ 305 $ 346 ____________ (1) There are no countries included in these amounts that individually represented more than 10 percent of total property and equipment, net as of December 31, 2021 and 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, we had performance guarantees with expirations ranging from 2025 to 2043 and possible cash outlays totaling approximately $10 million. Our obligations under these guarantees in future periods are dependent on the operating performance level of the related hotel over the remaining term of the performance guarantee. We have included the impact of the COVID-19 pandemic on these hotels in our expectations of their future operating performance, and, as of December 31, 2021 and 2020, we accrued current liabilities of $2 million and $7 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, 2021, we had debt guarantees for hotels that we will or currently manage or franchise totaling $35 million with expirations ranging from 2023 to 2026. Additionally, Hilton had extended two letters of credit totaling $26 million to the owner of a hotel that we will manage to satisfy debt service reserve requirements for their debt with a third party. Each letter of credit will expire at the earlier of the date at which it is fully drawn or 2031. We receive fees from managed and franchised properties that we are contractually required to use to operate our marketing, sales and brand programs on behalf of hotel owners. As of December 31, 2020, we had collected amounts in excess of amounts |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the accounts of our wholly owned subsidiaries and other non-wholly owned 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 entities that own or lease real estate. 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 third-party 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 or have the ability to 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 Estimates The preparation of financial statements in conformity with United States ("U.S.") generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. In particular, the coronavirus ("COVID-19") pandemic had a material adverse impact on our results for the years ended December 31, 2021 and 2020 when compared to periods prior to the onset of the pandemic, which was in early 2020, and it may continue to have an adverse impact in future periods. As such, the years ended December 31, 2021 and 2020, as well as upcoming periods, are unlikely to be comparable to periods prior to the onset of the pandemic or to other periods affected by the pandemic and are not indicative of future performance. Management has made estimates and judgments in light of these circumstances. |
Reorganization | 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 |
Revenue Recognition | Revenue Recognition Revenues are primarily derived from: (i) management and franchise contracts with third-party hotel and resort owners; (ii) our owned and leased hotels; and (iii) license agreements with Hilton Grand Vacations Inc. ("HGV") and strategic partners, including co-branded credit card providers. 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 twelve months 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, such as those resulting from the COVID-19 pandemic, we may amend certain contracts with customers to provide short-term payment relief, expecting that we will 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 in the operation of the hotels for the hotel 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. • Hilton Honors rewards provide substantive rights for free or discounted goods or services to Hilton Honors members. Each of the identified performance obligations is considered to be a series of distinct services transferred over time, except for the performance obligation related to Hilton Honors rewards, which is satisfied at the point in time when the loyalty program point is redeemed by the loyalty program member. 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 licensing agreements for the use of our 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 our 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) strategic partners, including from co-branded credit card providers, which are recognized as revenue when points for our guest loyalty program, Hilton Honors, are issued, generally as spend with the strategic partner or co-branded credit card occurs; see further discussion below under "Hilton Honors." Management fees represent fees earned from hotels that we manage, usually under long-term contracts with the hotel 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, normally over a one-calendar year period (the "incentive period"), and, in some cases, may be subject to a stated return threshold to the hotel owner. 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 and franchise contracts with us is amortized over the life of the applicable contract as a reduction to base and other management fees and franchise and licensing fees, respectively. 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 IP over the terms of the franchise contracts and (ii) other licensing fees and base management fees and incentive management fees since they are allocated entirely to the wholly unsatisfied promise to transfer IP or provide management services, respectively, which form part of a single performance obligation in a series, over the term of the individual 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 program fees billed and collected in advance related to certain costs and expenses supporting the operations 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 program 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 expenses incurred by Hilton to operate the marketing and brand programs and shared services are recognized as incurred and 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 sales of other ancillary goods and services (e.g., parking) related to consolidated owned and leased hotels. 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 or discounted 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 or free room night for every four room nights reserved). This substantive right is considered a separate performance obligation to which a portion of the transaction price is allocated based on the estimated standalone selling price of the good or service, adjusted for the likelihood the hotel guest will exercise such right, and it is recognized as revenue when the good or service is redeemed. 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 collateral for certain guarantees and insurance, including self-insurance, furniture, fixtures and equipment replacement ("FF&E") reserves required under certain lease agreements and advanced deposits collected on behalf of managed and franchised hotels. |
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 2007 transaction whereby we became a wholly owned subsidiary of affiliates of Blackstone 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 determine qualitatively that the fair value is 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 carrying value of the reporting unit exceeds its estimated fair value, an impairment loss would be recognized in our consolidated statement 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, Signia by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo 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 a brand intangible asset is less than its carrying value. If we determine qualitatively that the fair value is 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 of the brand is based on internal projections of expected future cash flows. If a brand intangible asset’s estimated fair value is less than its |
Intangible Assets with Finite Useful Lives | Intangible Assets with Finite Useful Lives Certain finite-lived intangible assets were initially recorded at their fair value at the time of the Merger. These intangible assets consisted of management contracts, franchise contracts, leases, certain proprietary technologies and our Hilton Honors guest loyalty program. The intangible assets related to the franchise contracts, U.S. management contracts and certain proprietary technologies were fully amortized as of December 31, 2020. 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 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 and other is the contract term, generally including any extension periods that are at our sole option. These estimated useful lives are generally as follows: international management contracts recorded at the Merger (16 years); management contract acquisition costs and development commissions and other (20 to 30 years); franchise contract acquisition costs and development commissions and other (10 to 20 years); leases (16 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 or 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 and other are included as operating activities in our consolidated statements of cash flows, and cash flows for capitalized software costs are included as investing activities. |
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. Right-of-use ("ROU") assets of finance leases are included in property and equipment, net in our consolidated balance sheets; refer to "Leases" below for additional information. 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 remaining lease term. We evaluate the carrying value of our property and equipment for indicators of impairment and, if such indicators exist, we review the recoverability of the asset group by comparing the estimated undiscounted future cash flows to the net carrying value of the asset group. If the net carrying value of the asset group is determined to be more than its estimated undiscounted future cash flows and, therefore, is not considered to be recoverable and is in excess of the estimated fair value, we recognize an impairment loss in our consolidated statement of operations for the amount by which the carrying value exceeds the estimated fair value. We allocate the impairment loss related to the asset group among the various assets within the asset group pro rata based on the relative carrying values of the respective assets. |
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 lease upon modification of the contract. We have elected to account for the components in contracts in which we are the lessee, that contain fixed payments for both lease and non-lease components, as a single lease component. 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 ROU assets for indicators of impairment and, if such indicators exist, we review the recoverability of the related asset group by comparing the estimated undiscounted future cash flows to the net carrying value of the asset group. If the net carrying value of the asset group is determined to be more than its estimated undiscounted future 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 statement of operations for the amount the carrying value exceeds the estimated fair value. 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 values of the respective assets. Depending on the individual agreement, our operating leases may 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 FF&E 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, if any, 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 expenses 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, excluding the pre-sale of Hilton Honors points, are recognized as revenue when the points are redeemed for a free or discounted good or service by the Hilton Honors |
Hilton Honors | Hilton Honors Hilton Honors is our guest loyalty program provided to our hotel and resort properties. 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 strategic 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 strategic partner pays Hilton Honors based on an estimated cost per point equal to the cost of operating the program, which includes marketing, promotion, communication and administrative expenses, as well as the estimated cost of reward redemptions. When the payments that are related to the issuance of points 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 third-party actuaries annually to assist in determining the fair value of the future reward 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 (i.e., 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 properties and other third parties that will provide the free or discounted good 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 (i.e., cost per point redeemed) and the estimated breakage are reevaluated. 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 Hilton Honors member to redeem their points for free or discounted goods and services is reflective of the amount retained by Hilton after the cost of providing the free or discounted goods and services. As a result of the COVID-19 pandemic, we temporarily suspended the expiration of Hilton Honors points, and, as a result, our estimates of breakage for both the determination of our liability for guest loyalty program and the amount of revenue recognized when our point obligation is satisfied include the anticipated point expirations that will occur at the end of the suspension. We also earn licensing fees from strategic partnerships, including co-branded credit card arrangements (see "Management and franchise revenues" within the "Revenue Recognition" section above). The consideration received 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 Hilton Honors members using a cost plus method based on an evaluation of other third-party administrators. We satisfy our performance obligation related to points issued under Hilton Honors when points are redeemed for a free or discounted good or service by the Hilton Honors member, and we satisfy our performance obligation related to the IP license over time as the strategic partner simultaneously receives and consumes the benefits of the goods or services provided. Hilton reimburses participating properties and applicable third parties when points are redeemed by Hilton Honors members for stays at the participating properties or for other goods or services from the third-party providers, at which time the redemption obligation is reduced and the related deferred revenue is recognized in other revenues from managed and franchised properties in our consolidated statements of operations. Additionally, when Hilton Honors members redeem points for a free or discounted stay at our owned and leased hotels, we recognize room revenue, included in owned and leased hotel revenues in our |
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 and the classification within the valuation hierarchy. 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 a hedging instrument and, if so, we formally document all relationships between hedging activities, including the risk management objective and strategy for undertaking various hedge transactions. We generally enter into cash flow hedges (i.e., a hedge of a specific forecasted transaction or the variability of cash flows to be paid), and, in the past, we entered into net investment hedges (i.e., a hedge of an investment in a foreign operation). 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. If we do not specifically designate the derivative as a cash flow hedge or another type of hedging instrument, 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. 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 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 |
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 foreign currency 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 as currency translation adjustment 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 domestic general liability, auto liability, workers' compensation, employment practices liability and crime insurance at our owned, leased and managed hotels that participate in our insurance programs, in addition to other corporate related coverages. We are also self-insured for health coverage for the employees of our U.S. corporate operations and some managed hotels. 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 third-party 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 Under the Hilton 2017 Omnibus Incentive Plan (the "2017 Plan"), we award time-vesting restricted stock units ("RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares") to our eligible employees: • RSUs vest in equal annual installments over two three • Options vest over three • Performance shares vest three We recognize these share-based payment transactions when services from the employees are rendered and recognize either a corresponding increase in additional paid-in capital or accounts payable, accrued expenses and other in our consolidated balance sheets, depending on whether the instruments granted satisfy the equity or liability classification criteria, respectively. |
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. We are taxed on global intangible low-tax income ("GILTI") earned by certain foreign subsidiaries, and our foreign derived intangible income ("FDII") is 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. 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. |
Loss Contingencies | Loss ContingenciesWe are involved in various claims and lawsuits arising in the ordinary course of business, the outcomes of which are subject to significant uncertainty. We also provide various types of guarantees and other assistance in the form of letters of credit and financing to certain owners of hotels that we currently or plan to manage or franchise, with varying degrees of certainty with respect to the ultimate timing and amount of cash flows that might be expended under such agreements. An estimated loss from a loss contingency will be accrued as a charge to income if it is probable a loss has been incurred and the amount of the loss can be reasonably estimated. We evaluate, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss in determining whether an accrual of an estimated loss is appropriate. |
Recently issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2021, the Financial Accounting Standards Board issued ASU No. 2021-10 ("ASU 2021-10"), Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance , which requires entities to provide annual disclosures about the nature of material existing government assistance agreements and the impact of such agreements on the entity's financial statements. The provisions of ASU 2021-10 are effective for fiscal years beginning after December 15, |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities | The following table summarizes the activity of our contract liabilities during the year ended December 31, 2021: (in millions) Balance as of December 31, 2020 $ 1,312 Cash received in advance and not recognized as revenue 138 Revenue recognized (1)(2) (455) Other (3) 171 Balance as of December 31, 2021 $ 1,166 ____________ (1) Primarily related to Hilton Honors, including co-branded credit card arrangements. (2) Revenue recognized during the year ended December 31, 2021 included $25 million for performance obligations that were satisfied in a prior period as a result of a change to the estimated breakage of Hilton Honors points for which point expirations have been temporarily suspended. (3) 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, 2021 | |
Consolidated Variable Interest Entities Disclosure [Abstract] | |
Schedule of Variable Interest Entities | Our consolidated balance sheets include the assets and liabilities of these entities, which primarily comprised the following: December 31, 2021 2020 (in millions) Cash and cash equivalents $ 18 $ 40 Property and equipment, net 60 76 Deferred income tax assets 62 57 Other non-current assets 62 66 Accounts payable, accrued expenses and other 15 27 Long-term debt (1) 179 203 Other long-term liabilities 16 17 ____________ (1) Includes finance lease liabilities of $153 million and $184 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the VIEs had revolving credit facilities with borrowing capacities totaling 4.5 billion Japanese yen ("JPY") (equivalent to $39 million), with 500 million JPY (equivalent to $4 million) included in long-term debt in our consolidated balance sheet, resulting in available borrowing capacities totaling 4.0 billion JPY (equivalent to $35 million). There were no amounts drawn under these facilities as of December 31, 2020. In December 2021, our consolidated VIEs borrowed an aggregate of 600 million JPY (equivalent to $5 million), which was also included in long-term debt in our consolidated balance sheet as of December 31, 2021. See Note 9: Debt for additional information. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Finite-lived intangible assets were as follows: December 31, 2021 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management contracts recorded at Merger (1) $ 310 $ (275) $ 35 Contract acquisition costs 780 (170) 610 Development commissions and other 140 (27) 113 $ 1,230 $ (472) $ 758 Other intangible assets: Capitalized software costs $ 561 $ (460) $ 101 Leases (1) 138 (83) 55 Hilton Honors (1) 339 (301) 38 $ 1,038 $ (844) $ 194 December 31, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value (in millions) Management and franchise contracts: Management contracts recorded at Merger (1) $ 317 $ (261) $ 56 Contract acquisition costs (2) 632 (144) 488 Development commissions and other 132 (23) 109 $ 1,081 $ (428) $ 653 Other intangible assets: Capitalized software costs $ 522 $ (378) $ 144 Leases (1)(3) 157 (95) 62 Hilton Honors (1) 342 (282) 60 $ 1,021 $ (755) $ 266 ____________ (1) Represents intangible assets that were initially recorded at fair value at the time of the Merger. (2) During the year ended December 31, 2020, we recognized impairment losses of $15 million included in our consolidated statement of operations. (3) During the year ended December 31, 2020, we recognized impairment losses of $46 million included in our consolidated statement of operations. 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, 2021 2020 2019 (in millions) Recognized in depreciation and amortization expenses (1) $ 135 $ 274 $ 286 Recognized as a reduction of franchise and licensing fees and base and other management fees 32 29 29 ____________ (1) Includes amortization expense of $47 million, $164 million and $202 million for the years ended December 31, 2021, 2020 and 2019, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger, some of which fully amortized during 2020. |
Schedule of Future Amortization Expense of Finite-lived Intangible Assets | We estimate future amortization expense of our finite-lived intangible assets that will be recognized in depreciation and amortization expenses as of December 31, 2021 to be as follows: Year (in millions) 2022 $ 110 2023 74 2024 24 2025 10 2026 9 Thereafter 115 $ 342 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment were as follows: December 31, 2021 2020 (in millions) Land $ 9 $ 11 Buildings and leasehold improvements 365 381 Furniture and equipment 339 346 Construction-in-progress 14 7 Finance lease ROU assets 83 87 810 832 Accumulated depreciation and amortization (1) (505) (486) $ 305 $ 346 ____________ |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other were as follows: December 31, 2021 2020 (in millions) Accrued employee compensation and benefits $ 514 $ 404 Accounts payable 274 224 Operating lease liabilities, current 140 170 Insurance reserves, current 84 68 Other current liabilities and accrued expenses (1) 556 436 $ 1,568 $ 1,302 ____________ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, were as follows: December 31, 2021 2020 (in millions) Senior secured revolving credit facility, due 2024 $ — $ 1,690 Senior secured term loan facility with a rate of 1.85%, due 2026 2,619 2,619 Senior notes with a rate of 5.375%, due 2025 500 500 Senior notes with a rate of 5.125%, due 2026 — 1,500 Senior notes with a rate of 4.875%, due 2027 600 600 Senior notes with a rate of 5.750%, due 2028 500 500 Senior notes with a rate of 3.750%, due 2029 800 800 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 1,100 Senior notes with a rate of 3.625%, due 2032 1,500 — Finance lease liabilities with a weighted average rate of 5.88%, due 2022 to 2030 208 252 Other debt of consolidated VIEs with a weighted average rate of 2.15%, due 2022 to 2028 26 19 8,853 10,580 Less: unamortized deferred financing costs and discount (87) (93) Less: current maturities of long-term debt (1) (54) (56) $ 8,712 $ 10,431 ____________ (1) Represents current maturities of finance lease liabilities and, as of December 31, 2021, the outstanding borrowings under the revolving credit facility of a consolidated VIE. |
Debt maturities | The contractual maturities of our long-term debt as of December 31, 2021 were as follows: Year (in millions) 2022 $ 54 2023 26 2024 26 2025 523 2026 2,660 Thereafter 5,564 $ 8,853 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other long-term liabilities were as follows: December 31, 2021 2020 (in millions) Other long-term tax liabilities $ 385 $ 400 Insurance reserves 151 189 Deferred employee compensation and benefits 111 116 Pension obligations 25 143 Other 74 141 $ 746 $ 989 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 622 $ — $ 622 $ — Liabilities: Long-term debt (1) 8,532 6,180 — 2,599 Interest rate swaps 41 — 41 — December 31, 2020 Hierarchy Level Carrying Value Level 1 Level 2 Level 3 (in millions) Assets: Cash equivalents $ 2,270 $ — $ 2,270 $ — Liabilities: Long-term debt (1) 10,216 6,366 — 4,293 Interest rate swaps 82 — 82 — ____________ (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 consolidated VIEs. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: December 31, 2021 2020 (dollars in millions) Operating leases: Operating lease right-of-use assets $ 694 $ 772 Accounts payable, accrued expenses and other 140 170 Operating lease liabilities 870 971 Finance leases: Property and equipment, net $ 33 $ 40 Current maturities of long-term debt 50 56 Long-term debt 158 196 Weighted average remaining lease term: Operating leases 11.0 years 12.3 years Finance leases 7.0 years 7.8 years Weighted average discount rate: Operating leases 3.87 % 3.82 % Finance leases 5.88 % 5.85 % |
Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Operating lease expense for fixed payments $ 125 $ 129 $ 144 Finance lease expense: Amortization of ROU assets 23 26 30 Fixed interest on lease liabilities 13 14 14 Variable lease expense (1) 35 17 168 ____________ (1) Includes amounts related to variable rent expense for operating leases and variable interest expense for finance leases. |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2021 2020 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 187 $ 149 $ 187 Financing cash flows from finance leases 40 26 42 ROU assets obtained in exchange for lease liabilities in non-cash transactions: Operating leases 45 33 48 Finance leases 17 20 61 |
Schedule of Future Minimum Lease Payments | Our future minimum lease payments as of December 31, 2021 were as follows: Operating Finance Year (in millions) 2022 $ 177 $ 61 2023 146 35 2024 122 31 2025 119 28 2026 107 28 Thereafter 587 72 Total minimum lease payments 1,258 255 Less: imputed interest (248) (47) Total lease liabilities $ 1,010 $ 208 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 (in millions) U.S. income (loss) before income taxes $ 631 $ (267) $ 867 Foreign income (loss) before income taxes (71) (657) 377 Income (loss) before income taxes $ 560 $ (924) $ 1,244 |
Schedule of Components of Income Tax Expense (Benefit) | The components of our provision (benefit) for income taxes were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Current: Federal $ 89 $ (6) $ 190 State 45 (32) 60 Foreign 23 69 128 Total current 157 31 378 Deferred: Federal 51 (102) (61) State (14) (34) (5) Foreign (41) (99) 46 Total deferred (4) (235) (20) Total provision (benefit) for income taxes $ 153 $ (204) $ 358 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliations of the provision (benefit) for income taxes at the U.S. statutory rate to the provision (benefit) for income taxes were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Statutory U.S. federal income tax provision (benefit) $ 118 $ (194) $ 261 State income taxes, net of U.S. federal income tax benefit 22 (24) 47 Impact of foreign operations 8 (106) 31 Goodwill impairment losses — 22 — Tax rate differential on U.S. federal net operating loss carryback — (14) — Changes in deferred tax asset valuation allowances 34 116 13 Income tax rate changes (1) (45) — — Provision for uncertain tax positions 15 7 16 Nondeductible compensation 15 — — Excess tax benefits related to share-based compensation (10) — — Other, net (4) (11) (10) Provision (benefit) for income taxes $ 153 $ (204) $ 358 |
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, 2021 2020 (in millions) Deferred tax assets: Net tax loss carryforwards and carrybacks $ 649 $ 593 Compensation 101 135 Reserves 76 71 Operating and finance lease liabilities 341 382 Deferred income 278 271 Foreign tax credit carryforwards 48 48 Other 144 153 Total gross deferred tax assets 1,637 1,653 Less: valuation allowance (669) (654) Deferred tax assets 968 999 Deferred tax liabilities: Brands (1,152) (1,147) Finite-lived intangible assets (61) (74) Investment in foreign subsidiaries (24) (26) Operating and finance lease ROU assets (218) (207) Deferred tax liabilities (1,455) (1,454) Net deferred taxes $ (487) $ (455) |
Schedule of Unrecognized Tax Benefits | Reconciliations of the beginning and ending amounts of unrecognized tax benefits were as follows: Year Ended December 31, 2021 2020 2019 (in millions) Balance at beginning of year $ 451 $ 395 $ 318 Additions for tax positions related to prior years 33 45 67 Additions for tax positions related to the current year 2 56 13 Reductions for tax positions related to prior years (39) (13) (3) Settlements (66) (37) 1 Lapse of statute of limitations (2) (1) (2) Currency translation adjustment (4) 6 1 Balance at end of year $ 375 $ 451 $ 395 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 2021 2020 2021 2020 (in millions) Change in projected benefit obligation Benefit obligation at beginning of year $ 399 $ 382 $ 541 $ 445 $ 90 $ 87 Service cost — — 2 3 1 1 Interest cost 6 10 5 8 2 2 Actuarial loss (gain) (11) 31 (32) 78 (3) 2 Settlements — (1) — — (1) — Effect of foreign currency exchange rates — — (4) 22 (4) 3 Benefits paid (24) (23) (22) (15) (4) (5) Benefit obligation at end of year $ 370 $ 399 $ 490 $ 541 $ 81 $ 90 Change in plan assets Fair value of plan assets at beginning of year $ 343 $ 318 $ 485 $ 404 $ 70 $ 68 Actual return on plan assets, net of expenses 44 41 36 66 7 3 Employer contributions 11 8 11 10 2 2 Settlements — (1) — — (1) — Effect of foreign currency exchange rates — — (5) 20 (3) 2 Benefits paid (24) (23) (22) (15) (4) (5) Fair value of plan assets at end of year 374 343 505 485 71 70 Funded status at end of year (underfunded) 4 (56) 15 (56) (10) (20) Accumulated benefit obligation $ 370 $ 399 $ 490 $ 541 $ 81 $ 90 |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in our consolidated balance sheets consisted of the following: Domestic Plan U.K. Plan International Plans 2021 2020 2021 2020 2021 2020 (in millions) Other non-current assets $ 4 $ — $ 15 $ — $ 15 $ 11 Other liabilities — (56) — (56) (25) (31) Net amount recognized $ 4 $ (56) $ 15 $ (56) $ (10) $ (20) |
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 2021 2020 2019 2021 2020 2019 2021 2020 2019 (in millions) Net actuarial loss (gain) $ (38) $ 4 $ (3) $ (48) $ 41 $ 29 $ (7) $ 3 $ 3 Prior service cost (4) (4) (4) — — (3) — — — Amortization of net loss (5) (4) (3) (5) (4) (3) (1) (1) (1) Net amount recognized $ (47) $ (4) $ (10) $ (53) $ 37 $ 23 $ (8) $ 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 2021 2020 2019 2021 2020 2019 2021 2020 2019 (in millions) Service cost (1) $ 3 $ 3 $ 6 $ 2 $ 3 $ 2 $ 1 $ 1 $ 2 Interest cost (2) 6 10 14 5 8 10 2 2 2 Expected return on plan assets (2) (19) (17) (19) (21) (20) (19) (3) (3) (3) Amortization of prior service cost (2) 4 4 4 — — — — — — Amortization of net loss (2) 5 4 3 5 4 3 1 1 1 Net periodic pension cost (credit) $ (1) $ 4 $ 8 $ (9) $ (5) $ (4) $ 1 $ 1 $ 2 ____________ (1) Recognized in owned and leased hotel expenses and general and administrative expenses, as applicable, in our consolidated statements of operations. (2) Recognized in other non-operating income (loss), net in our consolidated statements of operations. |
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 2021 2020 2021 2020 2021 2020 Discount rate 2.8 % 2.4 % 1.9 % 1.3 % 2.3 % 1.8 % Salary inflation N/A N/A 2.6 2.1 2.3 2.2 Pension inflation N/A N/A 3.1 2.7 1.9 1.8 The weighted average assumptions used to determine net periodic pension cost (credit) were as follows: Domestic Plan U.K. Plan International Plans 2021 2020 2019 2021 2020 2019 2021 2020 2019 Discount rate 2.6 % 3.2 % 4.3 % 1.3 % 2.1 % 3.1 % 1.7 % 2.0 % 3.1 % Expected return on plan assets 6.3 6.3 7.0 4.5 5.0 5.5 2.4 2.7 4.3 Salary inflation N/A N/A N/A 2.1 1.6 1.8 2.2 2.2 2.2 Pension inflation N/A N/A N/A 2.7 2.8 3.0 1.8 1.9 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, 2021 Domestic Plan U.K. Plan International Plans (in millions) Level 1 Cash $ — $ 12 $ 12 Equity funds — — 3 Bond funds 3 42 — Level 2 Equity funds — — 4 Bond funds — 34 6 Net asset value (1) Cash equivalents — 34 — Equity funds — 86 Bond funds — 69 — Common collective trusts 371 — 46 Alternative investments — 168 — Other — 60 — $ 374 $ 505 $ 71 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 ____________ |
Schedule of Expected Benefit Payments | As of December 31, 2021, 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) 2022 $ 33 $ 21 $ 12 2023 27 22 5 2024 26 22 5 2025 26 23 4 2026 25 23 4 2027-2031 114 125 22 $ 251 $ 236 $ 52 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Number of shares granted (in thousands) 589 942 963 Weighted average grant date fair value per share $ 123.13 $ 93.48 $ 83.47 Aggregate intrinsic value of shares vested (in millions) $ 94 $ 97 $ 92 |
Schedule of Restricted Stock Units Activity | The following table summarizes the activity of our RSUs during the year ended December 31, 2021: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2020 1,493 $ 88.55 Granted 589 123.13 Vested (760) 86.66 Forfeited (76) 100.94 Outstanding as of December 31, 2021 1,246 105.28 |
Schedule of Additional Information on Stock Options | The following table provides information about our option grants: Year Ended December 31, 2021 2020 2019 Number of options granted (in thousands) 361 755 758 Weighted average exercise price per share $ 123.13 $ 93.33 $ 83.11 Weighted average grant date fair value per share $ 41.15 $ 21.47 $ 21.08 |
Schedule of Stock Options Valuation Assumptions | The weighted average grant date fair value per share of the option grants for each year was determined using the Black-Scholes-Merton option-pricing model with the following assumptions: Year Ended December 31, 2021 2020 2019 Expected volatility (1) 33.13 % 23.69 % 23.51 % Dividend yield (2) — % 0.55 % 0.81 % Risk-free rate (3) 0.92 % 0.96 % 2.47 % Expected term (in years) (4) 6.0 6.0 6.0 ____________ (1) Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of Hilton's stock price for a period that corresponds to the expected life of the option. (2) For options granted during the years ended December 31, 2020 and 2019, dividend yield was estimated based on our historical quarterly dividends and the three-month average stock price at the date of grant. However, after the 2020 options were granted, we suspended the declaration and payment of dividends and, at the time of grant for the 2021 options, we could not estimate when the payment of dividends would resume. (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, 2021: Number of Shares Weighted Average Exercise Price per Share (in thousands) Outstanding as of December 31, 2020 3,027 $ 71.88 Granted 361 123.13 Exercised (566) 64.25 Forfeited (19) 100.84 Outstanding as of December 31, 2021 (1) 2,803 80.03 Exercisable as of December 31, 2021 (2) 1,799 67.85 ____________ (1) The aggregate intrinsic value was $210 million and the weighted average remaining contractual term was 6.5 years. (2) The aggregate intrinsic value was $157 million and the weighted average remaining contractual term was 5.5 years. |
Schedule of Additional Information on Performance Shares | The following table provides information about our performance share grants for the last three years: Year Ended December 31, 2021 2020 (1) 2019 (1) Number of shares granted (in thousands) 241 348 384 Weighted average grant date fair value per share $ 123.13 $ 93.33 $ 83.11 Aggregate intrinsic value of shares vested (in millions) $ 36 $ 58 $ — ____________ (1) In December 2020, 288,000 and 340,000 performance shares from the 2020 grant and 2019 grant, respectively, were modified, as discussed above, with a modification date fair value per share of $102.95. |
Schedule of Performance Shares Activity | The following table summarizes the activity of our performance shares for all of our performance measures during the year ended December 31, 2021: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Outstanding as of December 31, 2020 1,020 $ 84.57 Granted 241 123.13 Vested (391) 79.42 Forfeited (22) 94.55 Outstanding as of December 31, 2021 848 97.63 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 (in millions, except per share amounts) Basic EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ 410 $ (715) $ 881 Denominator: Weighted average shares outstanding 279 277 287 Basic EPS $ 1.47 $ (2.58) $ 3.07 Diluted EPS: Numerator: Net income (loss) attributable to Hilton stockholders $ 410 $ (715) $ 881 Denominator: Weighted average shares outstanding (1) 281 277 290 Diluted EPS (1) $ 1.46 $ (2.58) $ 3.04 ____________ (1) Certain shares related to share-based compensation were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method, including less than 1 million shares, 4 million shares, as revised, and 1 million shares for the years ended December 31, 2021, 2020 and 2019, respectively. The dilutive shares related to share-based compensation included in the previously reported weighted average shares outstanding of 279 million for the year ended December 31, 2020 were revised in the current period presentation, as the previously reported dilutive shares were determined to be anti-dilutive as a result of the net loss attributable to Hilton stockholders reported during the period. The result of the revision is an immaterial decrease in the previously reported diluted EPS for the year ended December 31, 2020 of $0.02. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 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) Other comprehensive income (loss) before reclassifications (36) 68 11 43 Amounts reclassified from accumulated other comprehensive loss 7 11 20 38 Net current period other comprehensive income (loss) (29) 79 31 81 Balance as of December 31, 2021 $ (540) $ (210) $ (29) $ (779) ____________ (1) Includes net investment hedge gains 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 which were recognized in our consolidated statements of operations in loss on sales of assets, net during the year ended December 31, 2021 and in loss on foreign currency transactions during the years ended December 31, 2020 and 2019. (2) Amounts reclassified related to the amortization of prior service cost and amortization of net loss and were recognized in other non-operating income (loss), net in our consolidated statements of operations. (3) Amounts reclassified were the result of hedging instruments, including: (a) interest rate swaps, inclusive of interest rate swaps that were dedesignated and subsequently settled, with related amounts recognized in interest expense in our consolidated statements of operations and (b) forward contracts that hedge our foreign currency denominated fees, with related amounts recognized in various revenue line items, as applicable, in our consolidated statements of operations. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 (in millions) Franchise and licensing fees $ 1,508 $ 956 $ 1,691 Base and other management fees (1) 203 144 394 Incentive management fees 98 38 230 Management and franchise 1,809 1,138 2,315 Ownership 598 421 1,422 Segment revenues 2,407 1,559 3,737 Amortization of contract acquisition costs (32) (29) (29) Other revenues 79 73 101 Direct reimbursements from managed and franchised properties (2) 1,503 1,375 3,110 Indirect reimbursements from managed and franchised properties (2) 1,841 1,332 2,576 Intersegment fees elimination (1) (10) (3) (43) Total revenues $ 5,788 $ 4,307 $ 9,452 ____________ (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, 2021 2020 2019 (in millions) Management and franchise (1) $ 1,809 $ 1,138 $ 2,315 Ownership (1) (91) (202) 125 Segment operating income 1,718 936 2,440 Amortization of contract acquisition costs (32) (29) (29) Other revenues, less other expenses 34 13 29 Net other expenses from managed and franchised properties (110) (397) (77) Depreciation and amortization expenses (188) (331) (346) General and administrative expenses (405) (311) (441) Reorganization costs — (41) — Impairment losses — (258) — Gain (loss) on sales of assets, net (7) — 81 Operating income (loss) 1,010 (418) 1,657 Interest expense (397) (429) (414) Loss on foreign currency transactions (7) (27) (2) Loss on debt extinguishments (69) (48) — Other non-operating income (loss), net 23 (2) 3 Income (loss) before income taxes $ 560 $ (924) $ 1,244 ____________ (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, 2021 2020 (in millions) Management and franchise $ 11,404 $ 11,065 Ownership 1,061 1,242 Corporate and other 2,976 4,448 $ 15,441 $ 16,755 |
Revenues by Country | Total revenues by country were as follows: Year Ended December 31, 2021 2020 2019 (in millions) U.S. $ 4,765 $ 3,593 $ 7,423 All other (1) 1,023 714 2,029 $ 5,788 $ 4,307 $ 9,452 ____________ (1) There are no countries included in these amounts that individually represented more than 10 percent of total revenues for the years ended December 31, 2021, 2020 and 2019. |
Property and Equipment, Net by Country | Property and equipment, net by country was as follows: December 31, 2021 2020 (in millions) U.S. $ 112 $ 128 U.K. 77 79 Japan 60 77 All other (1) 56 62 $ 305 $ 346 ____________ (1) There are no countries included in these amounts that individually represented more than 10 percent of total property and equipment, net as of December 31, 2021 and 2020. |
Organization (Details)
Organization (Details) | Dec. 31, 2021HotelRoomCountry |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of hotel and resort properties | Hotel | 6,837 |
Number of hotel and resort rooms | Room | 1,074,791 |
Number of countries and territories | Country | 122 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Ownership percentage of voting shares of a company at or above which VIEs are consolidated | 50.00% | |||
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization costs | $ 0 | $ 41 | $ 0 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 5,788 | 4,307 | $ 9,452 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from guest loyalty program points pre-sale | $ 1,000 | |||
Portion of proceeds from guest loyalty program points pre sale recorded as deferred revenues | $ 636 | |||
International management contracts recorded at Merger | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life, intangibles | 16 years | |||
Hilton Honors | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life, intangibles | 16 years | |||
Capitalized software costs | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life, intangibles | 3 years | |||
Stock options [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Expiration period | 10 years | |||
Performance shares [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Performance shares [member] | Target | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting rights, percentage | 100.00% | |||
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] | Maximum achievement percentage [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting rights, percentage | 200.00% | |||
Minimum [member] | Building and leasehold improvements [member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life, property and equipment | 8 years | |||
Minimum [member] | Furniture and equipment [member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life, property and equipment | 3 years | |||
Minimum [member] | Computer equipment [member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life, property and equipment | 3 years | |||
Minimum [member] | Management contract acquisition costs and development commissions [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life, intangibles | 20 years | |||
Minimum [member] | Franchise contract acquisition costs and development commission [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life, intangibles | 10 years | |||
Minimum [member] | Leases | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life, intangibles | 16 years | |||
Minimum [member] | Restricted stock units (RSUs) [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Maximum [member] | Building and leasehold improvements [member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life, property and equipment | 40 years | |||
Maximum [member] | Furniture and equipment [member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life, property and equipment | 8 years | |||
Maximum [member] | Computer equipment [member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life, property and equipment | 5 years | |||
Maximum [member] | Management contract acquisition costs and development commissions [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life, intangibles | 30 years | |||
Maximum [member] | Franchise contract acquisition costs and development commission [member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life, intangibles | 20 years | |||
Maximum [member] | Leases | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Useful life, intangibles | 35 years | |||
Maximum [member] | Restricted stock units (RSUs) [member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Guest Loyalty Program [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 346 | |||
Reimbursable Third-Party Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization costs | $ 177 |
Disposal (Details)
Disposal (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019JPY (¥) | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Sales price of an asset | $ 122 | ¥ 13,000 | ||
Gain (loss) on sales of assets, net | $ (7) | $ 0 | $ 81 |
Revenues from Contract with Cus
Revenues from Contract with Customers - Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenue from Contract with Customer [Abstract] | |||
Contract liabilities balance | $ 1,166 | $ 1,312 | |
Cash received in advance and not recognized as revenue | 138 | ||
Revenue recognized | [1],[2] | (455) | |
Other | [3] | 171 | |
Performance obligation satisfied in a prior period | $ 25 | ||
[1] | Primarily related to Hilton Honors, including co-branded credit card arrangements. | ||
[2] | Revenue recognized during the year ended December 31, 2021 included $25 million for performance obligations that were satisfied in a prior period as a result of a change to the estimated breakage of Hilton Honors points for which point expirations have been temporarily suspended. | ||
[3] | 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) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Loyalty Program Revenues [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 384 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | two years |
Application, initiation and other fees [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 631 |
Performance obligation for co-branded credit card arrangements | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 151 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 1,427 | $ 3,218 | |
Property and equipment, net | 305 | 346 | |
Deferred income tax assets | 213 | 194 | |
Other non-current assets | 452 | 323 | |
Accounts payable, accrued expenses and other | 1,568 | 1,302 | |
Other long-term liabilities | 746 | 989 | |
Finance lease liabilities | 208 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 18 | 40 | |
Property and equipment, net | 60 | 76 | |
Deferred income tax assets | 62 | 57 | |
Other non-current assets | 62 | 66 | |
Accounts payable, accrued expenses and other | 15 | 27 | |
Long-term debt | [1] | 179 | 203 |
Other long-term liabilities | 16 | 17 | |
Finance lease liabilities | $ 153 | $ 184 | |
[1] | Includes finance lease liabilities of $153 million and $184 million as of December 31, 2021 and 2020, respectively. |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Additional Information (Details) ¥ in Millions, $ in Millions | Dec. 31, 2021JPY (¥)Entity | Dec. 31, 2021USD ($)Entity | Aug. 31, 2021JPY (¥) | Dec. 31, 2020USD ($)Entity |
Variable Interest Entity [Line Items] | ||||
Number of consolidated variable interest entities | Entity | 2 | 2 | 2 | |
Long-term debt, gross | $ | $ 8,853 | $ 10,580 | ||
VIE revolving credit facility [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | ¥ 4,500 | 39 | ||
Long-term debt, gross | 4 | ¥ 500 | $ 0 | |
Revolving credit facility, remaining borrowing capacity | ¥ 4,000 | $ 35 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment losses | $ 0 | $ 258 | $ 0 | ||
Contract acquisition costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment losses | 15 | ||||
Leases | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment losses | 46 | ||||
Management and franchise contracts recorded at Merger | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | [1] | 310 | 317 | ||
Finite-lived intangible assets, accumulated amortization | [1] | (275) | (261) | ||
Finite-lived intangible assets, net | [1] | 35 | 56 | ||
Contract acquisition costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 780 | 632 | [2] | ||
Finite-lived intangible assets, accumulated amortization | (170) | (144) | [2] | ||
Finite-lived intangible assets, net | 610 | 488 | [2] | ||
Development commissions and other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 140 | 132 | |||
Finite-lived intangible assets, accumulated amortization | (27) | (23) | |||
Finite-lived intangible assets, net | 113 | 109 | |||
Management and franchise contracts, net | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 1,230 | 1,081 | |||
Finite-lived intangible assets, accumulated amortization | (472) | (428) | |||
Finite-lived intangible assets, net | 758 | 653 | |||
Capitalized software costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 561 | 522 | |||
Finite-lived intangible assets, accumulated amortization | (460) | (378) | |||
Finite-lived intangible assets, net | 101 | 144 | |||
Leases | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | [1] | 138 | 157 | [3] | |
Finite-lived intangible assets, accumulated amortization | [1] | (83) | (95) | [3] | |
Finite-lived intangible assets, net | [1] | 55 | 62 | [3] | |
Hilton Honors | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | [1] | 339 | 342 | ||
Finite-lived intangible assets, accumulated amortization | [1] | (301) | (282) | ||
Finite-lived intangible assets, net | [1] | 38 | 60 | ||
Other intangible assets, net | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 1,038 | 1,021 | |||
Finite-lived intangible assets, accumulated amortization | (844) | (755) | |||
Finite-lived intangible assets, net | $ 194 | $ 266 | |||
[1] | Represents intangible assets that were initially recorded at fair value at the time of the Merger. | ||||
[2] | During the year ended December 31, 2020, we recognized impairment losses of $15 million included in our consolidated statement of operations. | ||||
[3] | During the year ended December 31, 2020, we recognized impairment losses of $46 million included in our consolidated statement of operations. See Note 11: "Fair Value Measurements" for additional information. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Amortization of Amortizing Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Recognized in depreciation and amortization expense | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of contract acquisition costs | [1] | $ 135 | $ 274 | $ 286 |
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 contract acquisition costs | 47 | 164 | 202 | |
Recognized as a reduction of franchise and licensing fees and base and other management fees | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of contract acquisition costs | $ 32 | $ 29 | $ 29 | |
[1] | Includes amortization expense of $47 million, $164 million and $202 million for the years ended December 31, 2021, 2020 and 2019, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger, some of which fully amortized during 2020. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule Of Future Amortization (Details) - Recognized in depreciation and amortization expense $ in Millions | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2022 | $ 110 |
2023 | 74 |
2024 | 24 |
2025 | 10 |
2026 | 9 |
Thereafter | 115 |
Finite-lived intangible assets, net | $ 342 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 0 | $ 258 | $ 0 |
Management and franchise | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Accumulated impairment losses | $ 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Property, Plant and Equipment [Abstract] | ||||
Land | $ 9 | $ 11 | ||
Buildings and leasehold improvements | 365 | 381 | ||
Furniture and equipment | 339 | 346 | ||
Construction-in-progress | 14 | 7 | ||
Finance lease ROU assets | 83 | 87 | ||
Property and equipment, gross | 810 | 832 | ||
Accumulated depreciation and amortization | [1] | (505) | (486) | |
Property and equipment, net | 305 | 346 | ||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | 188 | 331 | $ 346 | |
Property and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | [1] | $ 53 | $ 57 | $ 60 |
[1] | During the years ended December 31, 2021, 2020 and 2019, depreciation and amortization expenses on property and equipment was $53 million,$57 million and $60 million, respectively. |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 0 | $ 258 | $ 0 |
Property and equipment [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 28 | ||
Property subject to a finance lease [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 4 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |||
Accrued employee compensation and benefits | $ 514 | $ 404 | |
Accounts payable | 274 | 224 | |
Operating lease liabilities, current | 140 | 170 | |
Insurance reserves, current | 84 | 68 | |
Other liabilities and accrued expenses | [1] | 556 | 436 |
Accounts payable, accrued expenses and other | $ 1,568 | $ 1,302 | |
[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, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 8,853 | $ 10,580 | ||||
Weighted average discount rate, finance leases | 5.88% | 5.85% | ||||
Unamortized deferred financing costs and discount | $ (87) | $ (93) | ||||
Current maturities of long-term debt | [1] | (54) | (56) | |||
Long-term debt | 8,712 | 10,431 | ||||
Senior secured revolving credit facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 0 | 1,690 | ||||
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 | 1.85% | |||||
Senior notes due 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 500 | 500 | ||||
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | ||||
Senior notes due 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 0 | 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 | 500 | ||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | ||||
Senior notes due 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 800 | $ 800 | ||||
Debt instrument, interest rate, stated percentage | 3.75% | 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% | 4.875% | ||||
Senior notes due 2031 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 1,100 | $ 1,100 | ||||
Debt instrument, interest rate, stated percentage | 4.00% | 4.00% | ||||
Senior notes due 2032 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 1,500 | $ 0 | ||||
Debt instrument, interest rate, stated percentage | 3.625% | 3.625% | ||||
Finance lease liabilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | 252 | |||||
Other debt of consolidated VIEs [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 26 | $ 19 | ||||
Debt instrument, weighted average interest rate | 2.15% | |||||
Finance lease liability | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 208 | |||||
Weighted average discount rate, finance leases | 5.88% | |||||
[1] | Represents current maturities of finance lease liabilities and, as of December 31, 2021, the outstanding borrowings under the revolving credit facility of a consolidated VIE. |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2022 | $ 54 | |
2023 | 26 | |
2024 | 26 | |
2025 | 523 | |
2026 | 2,660 | |
Thereafter | 5,564 | |
Long-term debt, gross | $ 8,853 | $ 10,580 |
Debt - Additional Information (
Debt - Additional Information (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)Rate | Dec. 31, 2019USD ($) | Dec. 31, 2021JPY (¥)Rate | Dec. 31, 2021USD ($)Rate | Aug. 31, 2021JPY (¥) | Feb. 28, 2021USD ($)Rate | Apr. 30, 2020USD ($)Rate | Jun. 30, 2019USD ($)Rate | |
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | $ 10,580 | $ 8,853 | |||||||
Senior notes due 2032 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,500 | ||||||||
Debt instrument, interest rate, stated percentage | Rate | 3.625% | 3.625% | 3.625% | ||||||
Debt issuance costs | $ 21 | ||||||||
Long-term debt, gross | 0 | $ 1,500 | |||||||
Senior notes due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,500 | ||||||||
Debt instrument, interest rate, stated percentage | Rate | 5.125% | 5.125% | |||||||
Premium paid to redeem debt instrument | $ 55 | ||||||||
Write off of deferred debt issuance cost | 14 | ||||||||
Long-term debt, gross | 1,500 | $ 0 | |||||||
Senior notes due 2029 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 800 | ||||||||
Debt instrument, interest rate, stated percentage | Rate | 3.75% | 3.75% | 3.75% | ||||||
Long-term debt, gross | $ 800 | $ 800 | |||||||
Senior notes due 2031 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,100 | ||||||||
Debt instrument, interest rate, stated percentage | Rate | 4.00% | 4.00% | 4.00% | ||||||
Long-term debt, gross | $ 1,100 | $ 1,100 | |||||||
Senior notes issued in December 2020 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | 27 | ||||||||
Senior notes due 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,000 | ||||||||
Debt instrument, interest rate, stated percentage | Rate | 4.25% | ||||||||
Senior notes due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 900 | ||||||||
Debt instrument, interest rate, stated percentage | Rate | 4.625% | ||||||||
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 | ||||||||
Senior notes due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500 | ||||||||
Debt instrument, interest rate, stated percentage | Rate | 5.375% | 5.375% | 5.375% | ||||||
Long-term debt, gross | 500 | $ 500 | |||||||
Senior notes due 2028 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500 | ||||||||
Debt instrument, interest rate, stated percentage | Rate | 5.75% | 5.75% | 5.75% | ||||||
Long-term debt, gross | 500 | $ 500 | |||||||
Senior notes issued in April 2020 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 14 | ||||||||
Senior notes due 2030 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,000 | ||||||||
Debt instrument, interest rate, stated percentage | Rate | 4.875% | 4.875% | 4.875% | ||||||
Long-term debt, gross | 1,000 | $ 1,000 | |||||||
Senior secured term loan facility due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | Rate | 1.85% | 1.85% | |||||||
Repayments of long-term debt | $ 500 | ||||||||
Long-term debt, gross | 2,619 | $ 2,619 | |||||||
Unamortized deferred financing costs and fees | 10 | ||||||||
Senior secured revolving credit facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of long-term debt | $ 1,690 | $ 225 | |||||||
Revolving credit facility, maximum borrowing capacity | 1,750 | ||||||||
Long-term debt, gross | 1,690 | 0 | |||||||
Letters of credit outstanding | 60 | ||||||||
Revolving credit facility, remaining borrowing capacity | $ 1,690 | ||||||||
Senior notes due 2027 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | Rate | 4.875% | 4.875% | |||||||
Long-term debt, gross | 600 | $ 600 | |||||||
VIE revolving credit facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | ¥ 4,500 | 39 | |||||||
Long-term debt, gross | $ 0 | 4 | ¥ 500 | ||||||
Revolving credit facility, remaining borrowing capacity | 4,000 | 35 | |||||||
VIE loan, aggregate amount | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | ¥ 600 | $ 5 | |||||||
Debt instrument, interest rate, stated percentage | Rate | 0.00% | 0.00% | |||||||
VIE Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | ¥ | ¥ 300 | ||||||||
Letter of Credit [Member] | Senior secured revolving credit facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | $ 250 |
Other Liabilities - Other Long-
Other Liabilities - Other Long-term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Other long-term tax liabilities | $ 385 | $ 400 |
Insurance reserves | 151 | 189 |
Deferred employee compensation and benefits | 111 | 116 |
Pension obligations | 25 | 143 |
Other | 74 | 141 |
Other long-term liabilities | $ 746 | $ 989 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring & Disclosure (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Carrying value [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | $ 622 | $ 2,270 | |
Interest rate swaps, liabilities | 41 | 82 | |
Carrying value [member] | Long-term Debt Excluding Finance Lease Liabilities and Other Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 8,532 | 10,216 |
Level 1 [member] | Long-term Debt Excluding Finance Lease Liabilities and Other Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | 6,180 | 6,366 |
Level 2 [member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash equivalents | 622 | 2,270 | |
Interest rate swaps, liabilities | 41 | 82 | |
Level 3 [member] | Long-term Debt Excluding Finance Lease Liabilities and Other Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ 2,599 | $ 4,293 |
[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 consolidated VIEs. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 0 | $ 258 | $ 0 |
Goodwill [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | 104 | ||
Other intangible assets, lease right-of-use assets and property and equipment | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ 139 |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee Disclosure [Abstract] | ||
Weighted average remaining lease term, operating leases | 11 years | 12 years 3 months 18 days |
Weighted average remaining lease term, finance leases | 7 years | 7 years 9 months 18 days |
Weighted average discount rate, operating leases | 3.87% | 3.82% |
Weighted average discount rate, finance leases | 5.88% | 5.85% |
Operating lease right-of-use assets | $ 694 | $ 772 |
Operating lease liabilities, current | $ 140 | $ 170 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accrued expenses and other | Accounts payable, accrued expenses and other |
Operating lease liabilities | $ 870 | $ 971 |
Finance lease right-of-use asset | $ 33 | $ 40 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Finance lease liability, current | $ 50 | $ 56 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Finance lease liability, non-current | $ 158 | $ 196 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Leases Components of Lease Expe
Leases Components of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Lessee Disclosure [Abstract] | ||||
Operating lease expense for fixed payments | $ 125 | $ 129 | $ 144 | |
Finance lease expense, amortization of ROU assets | 23 | 26 | 30 | |
Finance lease expense, interest on lease liabilities | 13 | 14 | 14 | |
Variable lease expense | [1] | $ 35 | $ 17 | $ 168 |
[1] | Includes amounts related to variable rent expense for operating leases and variable interest expense for finance leases. |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | 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 | $ 187 | $ 149 | $ 187 |
Cash paid for amounts included in the measurement of lease liabilities: financing cash flows from finance leases | 40 | 26 | 42 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 45 | 33 | 48 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 17 | $ 20 | $ 61 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Lessee Disclosure [Abstract] | |
Finance leases, 2022 | $ 61 |
Finance leases, 2023 | 35 |
Finance leases, 2024 | 31 |
Finance leases, 2025 | 28 |
Finance leases, 2026 | 28 |
Finance leases, thereafter | 72 |
Finance lease, total minimum lease payments | 255 |
Less: imputed interest, finance leases | (47) |
Finance lease liabilities | 208 |
Operating leases, 2022 | 177 |
Operating leases, 2023 | 146 |
Operating leases, 2024 | 122 |
Operating leases, 2025 | 119 |
Operating leases, 2026 | 107 |
Operating leases, thereafter | 587 |
Operating leases, total minimum lease payments | 1,258 |
Less: imputed interest, operating leases | (248) |
Operating lease liabilities | 1,010 |
Operating lease liabilities | 1,010 |
Finance lease liabilities | $ 208 |
Leases Additional Information (
Leases Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)Hotel | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Lessee Disclosure [Abstract] | |||
Hotels under operating leases | Hotel | 43 | ||
Hotels under finance leases | Hotel | 5 | ||
Number of finance leases that were the liabilities of VIEs | Hotel | 2 | ||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Impairment losses | $ | $ 0 | $ 258 | $ 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. income (loss) before tax | $ 631 | $ (267) | $ 867 |
Foreign income (loss) before tax | (71) | (657) | 377 |
Income (loss) before income taxes | $ 560 | $ (924) | $ 1,244 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 89 | $ (6) | $ 190 |
State | 45 | (32) | 60 |
Foreign | 23 | 69 | 128 |
Total current | 157 | 31 | 378 |
Federal | 51 | (102) | (61) |
State | (14) | (34) | (5) |
Foreign | (41) | (99) | 46 |
Total deferred | (4) | (235) | (20) |
Provision (benefit) for income taxes | $ 153 | $ (204) | $ 358 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Tax Disclosure [Abstract] | ||||
Statutory U.S. federal income tax provision (benefit) | $ 118 | $ (194) | $ 261 | |
State income taxes, net of U.S. federal tax benefit | 22 | (24) | 47 | |
Impact of foreign operations | 8 | (106) | 31 | |
Goodwill impairment losses | 0 | 22 | 0 | |
Tax rate differential on U.S. federal net operating loss carryback | 0 | (14) | 0 | |
Change in deferred tax asset valuation allowances | 34 | 116 | 13 | |
Income tax rate changes | [1] | (45) | 0 | 0 |
Provision for uncertain tax positions | 15 | 7 | 16 | |
Nondeductible compensation | 15 | 0 | 0 | |
Excess tax benefits related to share-based compensation | (10) | 0 | 0 | |
Other, net | (4) | (11) | (10) | |
Provision (benefit) for income taxes | 153 | $ (204) | $ 358 | |
Tax Rate Enactment Tax Benefit | (49) | |||
Tax Rate Enactment Tax Expense | $ 4 | |||
[1] | Income tax rate changes resulted in the remeasurement of our deferred tax assets and liabilities and other tax liabilities to the new tax rates, resulting in a $49 million deferred tax benefit and a $4 million current tax expense, respectively, which were recognized during the year ended December 31, 2021. |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Net tax loss carryforwards and carrybacks | $ 649 | $ 593 |
Compensation | 101 | 135 |
Reserves | 76 | 71 |
Operating and finance lease liabilities | 341 | 382 |
Deferred income | 278 | 271 |
Foreign tax credit carryforwards | 48 | 48 |
Other | 144 | 153 |
Total gross deferred tax assets | 1,637 | 1,653 |
Less: valuation allowance | (669) | (654) |
Deferred tax assets | 968 | 999 |
Brands | (1,152) | (1,147) |
Finite lived intangible assets | (61) | (74) |
Investment in foreign subsidiaries | (24) | (26) |
Operating and finance lease ROU assets | (218) | (207) |
Deferred tax liabilities | (1,455) | (1,454) |
Net deferred taxes | $ (487) | $ (455) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 451 | $ 395 | $ 318 |
Additions for tax positions related to prior years | 33 | 45 | 67 |
Additions for tax positions related to the current year | 2 | 56 | 13 |
Reductions for tax positions related to prior years | (39) | (13) | (3) |
Decrease resulting from settlements | (66) | (37) | |
Increase resulting from settlements | 1 | ||
Lapse of statute of limitations | (2) | (1) | (2) |
Decrease resulting from currency translation adjustment | (4) | ||
Increase resulting from currency translation adjustment | 6 | 1 | |
Balance at end of year | $ 375 | $ 451 | $ 395 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, operating loss carryforwards, state | $ 4 | ||
Loss carryforwards, separate return limitation year | 221 | ||
Deferred tax assets, net operating loss carryforwards due to expire | $ 44 | ||
Net operating loss carryforwards expiration range | 2022 and 2041 | ||
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 | $ 516 | ||
Deferred tax assets, tax loss carryforwards, not subject to expiration | 90 | ||
Net operating loss carryforwards valuation allowance | 488 | ||
Deferred income tax benefit for net operating losses, before valuation allowance | 49 | ||
Deferred income tax benefit for net operating losses, valuation allowance | 7 | ||
Deferred income tax benefit for net operating losses, net of valuation allowance | 42 | ||
Valuation allowance on deferred tax assets generated in current year | 27 | ||
Deferred tax asset revaluation, change in valuation allowance | 19 | ||
Deferred tax asset valuation allowance total increase | 15 | ||
Income tax examination, liability (refund) adjustment from settlement with taxing authority | 48 | ||
Income tax examination, liability (refund) adjustment from settlement with taxing authority, previously recorded reserves | 39 | ||
Interest and penalties expense related to uncertain tax positions | 16 | $ 13 | $ 12 |
Accrual for interest and penalties | 65 | 65 | |
Unrecognized tax benefits that would impact effective tax rate | 343 | $ 400 | |
Expected decrease in unrecognized tax benefits over the next 12 months | 35 | ||
Accrual related to IRS proposed additional tax owed | 49 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards or carrybacks | 2,200 | ||
Tax loss carryforwards, other | 129 | ||
Deferred tax assets, foreign net operating loss carryforwards | 556 | ||
Deferred tax assets, other tax loss carryforwards | 34 | ||
Deferred tax assets, tax credit carryforwards | $ 48 | ||
Tax credit carryfoward, expiration in years | eight | ||
Deferred tax assets, tax credit carryforwards, valuation allowance | full | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards or carrybacks | $ 69 | ||
Deferred tax assets, return limitation year loss carryforward, state | 11 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, return limitation year loss carryforward, federal | 44 | ||
Remaining unsettled tax assessments | $ 36 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Changes in Projected Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Domestic plan [member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | $ 399 | $ 382 | ||
Service cost | 0 | 0 | ||
Interest cost | [1] | 6 | 10 | $ 14 |
Actuarial loss (gain) | (11) | 31 | ||
Settlements | 0 | (1) | ||
Effect of foreign currency exchange rates | 0 | 0 | ||
Benefits paid | (24) | (23) | ||
Benefit obligation at end of year | 370 | 399 | 382 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 343 | 318 | ||
Actual return on plan assets, net of expenses | 44 | 41 | ||
Employer contributions | 11 | 8 | ||
Settlements | 0 | (1) | ||
Effect of foreign currency exchange rates | 0 | 0 | ||
Benefits paid | (24) | (23) | ||
Fair value of plan assets at end of year | 374 | 343 | 318 | |
Funded status at end of year (underfunded) | 4 | (56) | ||
Defined benefit plan, accumulated benefit obligation | 370 | 399 | ||
U.K. plan [member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 541 | 445 | ||
Service cost | 2 | 3 | ||
Interest cost | [1] | 5 | 8 | 10 |
Actuarial loss (gain) | (32) | 78 | ||
Settlements | 0 | 0 | ||
Effect of foreign currency exchange rates | (4) | 22 | ||
Benefits paid | (22) | (15) | ||
Benefit obligation at end of year | 490 | 541 | 445 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 485 | 404 | ||
Actual return on plan assets, net of expenses | 36 | 66 | ||
Employer contributions | 11 | 10 | ||
Settlements | 0 | 0 | ||
Effect of foreign currency exchange rates | (5) | 20 | ||
Benefits paid | (22) | (15) | ||
Fair value of plan assets at end of year | 505 | 485 | 404 | |
Funded status at end of year (underfunded) | 15 | (56) | ||
Defined benefit plan, accumulated benefit obligation | 490 | 541 | ||
International plans [member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 90 | 87 | ||
Service cost | 1 | 1 | ||
Interest cost | [1] | 2 | 2 | 2 |
Actuarial loss (gain) | (3) | 2 | ||
Settlements | (1) | 0 | ||
Effect of foreign currency exchange rates | (4) | 3 | ||
Benefits paid | (4) | (5) | ||
Benefit obligation at end of year | 81 | 90 | 87 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 70 | 68 | ||
Actual return on plan assets, net of expenses | 7 | 3 | ||
Employer contributions | 2 | 2 | ||
Settlements | (1) | 0 | ||
Effect of foreign currency exchange rates | (3) | 2 | ||
Benefits paid | (4) | (5) | ||
Fair value of plan assets at end of year | 71 | 70 | $ 68 | |
Funded status at end of year (underfunded) | (10) | (20) | ||
Defined benefit plan, accumulated benefit obligation | $ 81 | $ 90 | ||
[1] | Recognized in other non-operating income (loss), net in our consolidated statements of operations. |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | $ 4 | $ (56) |
U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 15 | (56) |
International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | (10) | (20) |
Other non-current assets | Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 4 | 0 |
Other non-current assets | U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 15 | 0 |
Other non-current assets | International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 15 | 11 |
Other liabilities [member] | Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 0 | (56) |
Other liabilities [member] | U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | 0 | (56) |
Other liabilities [member] | International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Amounts recognized in balance sheet | $ (25) | $ (31) |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ (38) | $ 4 | $ (3) |
Prior service cost | (4) | (4) | (4) |
Amortization of net loss | (5) | (4) | (3) |
Net amount recognized in accumulated other comprehensive loss | (47) | (4) | (10) |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (48) | 41 | 29 |
Prior service cost | 0 | 0 | (3) |
Amortization of net loss | (5) | (4) | (3) |
Net amount recognized in accumulated other comprehensive loss | (53) | 37 | 23 |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (7) | 3 | 3 |
Prior service cost | 0 | 0 | 0 |
Amortization of net loss | (1) | (1) | (1) |
Net amount recognized in accumulated other comprehensive loss | $ (8) | $ 2 | $ 2 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Periodic Pension Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Domestic plan [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | [1] | $ 3 | $ 3 | $ 6 |
Interest cost | [2] | 6 | 10 | 14 |
Expected return on plan assets | [2] | (19) | (17) | (19) |
Amortization of prior service cost | [2] | 4 | 4 | 4 |
Amortization of net loss | [2] | 5 | 4 | 3 |
Net periodic pension cost (credit) | (1) | 4 | 8 | |
U.K. plan [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | [1] | 2 | 3 | 2 |
Interest cost | [2] | 5 | 8 | 10 |
Expected return on plan assets | [2] | (21) | (20) | (19) |
Amortization of prior service cost | [2] | 0 | 0 | 0 |
Amortization of net loss | [2] | 5 | 4 | 3 |
Net periodic pension cost (credit) | (9) | (5) | (4) | |
International plans [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | [1] | 1 | 1 | 2 |
Interest cost | [2] | 2 | 2 | 2 |
Expected return on plan assets | [2] | (3) | (3) | (3) |
Amortization of prior service cost | [2] | 0 | 0 | 0 |
Amortization of net loss | [2] | 1 | 1 | 1 |
Net periodic pension cost (credit) | $ 1 | $ 1 | $ 2 | |
[1] | Recognized in owned and leased hotel expenses and general and administrative expenses, as applicable, in our consolidated statements of operations. | |||
[2] | Recognized in other non-operating income (loss), net in our consolidated statements of operations. |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Domestic plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 2.80% | 2.40% | |
Discount rate, net periodic pension cost | 2.60% | 3.20% | 4.30% |
Expected return on plan assets, net periodic pension cost | 6.30% | 6.30% | 7.00% |
U.K. plan [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 1.90% | 1.30% | |
Salary inflation, benefit obligation | 2.60% | 2.10% | |
Pension inflation, benefit obligation | 3.10% | 2.70% | |
Discount rate, net periodic pension cost | 1.30% | 2.10% | 3.10% |
Expected return on plan assets, net periodic pension cost | 4.50% | 5.00% | 5.50% |
Salary inflation, net periodic pension cost | 2.10% | 1.60% | 1.80% |
Pension inflation, net periodic pension cost | 2.70% | 2.80% | 3.00% |
International plans [member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligation | 2.30% | 1.80% | |
Salary inflation, benefit obligation | 2.30% | 2.20% | |
Pension inflation, benefit obligation | 1.90% | 1.80% | |
Discount rate, net periodic pension cost | 1.70% | 2.00% | 3.10% |
Expected return on plan assets, net periodic pension cost | 2.40% | 2.70% | 4.30% |
Salary inflation, net periodic pension cost | 2.20% | 2.20% | 2.20% |
Pension inflation, net periodic pension cost | 1.80% | 1.90% | 1.80% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Pension Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Domestic plan [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 374 | $ 343 | $ 318 | |
Domestic plan [member] | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3 | 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] | 371 | 341 | |
U.K. plan [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 505 | 485 | 404 | |
U.K. plan [member] | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 45 | |||
U.K. plan [member] | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 75 | |||
U.K. plan [member] | Equity funds [member] | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 86 | ||
U.K. plan [member] | Bond funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 42 | 43 | ||
U.K. plan [member] | Bond funds [member] | Level 2 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 34 | |||
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] | 69 | 74 | |
U.K. plan [member] | Alternative investments [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 105 | |||
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] | 168 | 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] | 60 | 56 | |
U.K. plan [member] | Cash | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 12 | |||
U.K. plan [member] | Cash Equivalents | Fair value measured at net asset value per share [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | [1] | 34 | ||
International plans [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 71 | 70 | $ 68 | |
International plans [member] | Cash and cash equivalents [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 12 | |||
International plans [member] | Equity funds [member] | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3 | 3 | ||
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] | 46 | $ 45 | |
International plans [member] | Cash | Level 1 [member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 12 | |||
[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, 2021USD ($) |
Domestic plan [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 33 |
2023 | 27 |
2024 | 26 |
2025 | 26 |
2026 | 25 |
2027-2031 | 114 |
Defined benefit plan expected future benefit payments | 251 |
U.K. plan [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 21 |
2023 | 22 |
2024 | 22 |
2025 | 23 |
2026 | 23 |
2027-2031 | 125 |
Defined benefit plan expected future benefit payments | 236 |
International plans [member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 12 |
2023 | 5 |
2024 | 5 |
2025 | 4 |
2026 | 4 |
2027-2031 | 22 |
Defined benefit plan expected future benefit payments | $ 52 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Multiemployer plans, pension, plan assets | $ 405 | $ 372 |
Multiemployer plans, pension, accumulated benefit obligation | 395 | $ 426 |
Domestic plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2022 | 33 | |
2023 | 27 | |
2024 | 26 | |
2025 | 26 | |
2026 | 25 | |
2027-2031 | 114 | |
Defined benefit plan expected future benefit payments | $ 251 | |
Domestic plan [member] | Equity securities [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, target allocation percentage | 75.00% | 80.00% |
Defined benefit plan, plan assets, target allocation percentage | 75.00% | 80.00% |
Domestic plan [member] | Debt securities [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, target allocation percentage | 25.00% | 20.00% |
Defined benefit plan, plan assets, target allocation percentage | 25.00% | 20.00% |
U.K. plan [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2022 | $ 21 | |
2023 | 22 | |
2024 | 22 | |
2025 | 23 | |
2026 | 23 | |
2027-2031 | 125 | |
Defined benefit plan expected future benefit payments | $ 236 | |
UK and international plans [member] | Debt and equity securities [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, target allocation percentage | 75.00% | 75.00% |
Defined benefit plan, plan assets, target allocation percentage | 75.00% | 75.00% |
UK and international plans [member] | Bond funds [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, plan assets, target allocation percentage | 25.00% | 25.00% |
Defined benefit plan, plan assets, target allocation percentage | 25.00% | 25.00% |
International plans [member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2022 | $ 12 | |
2023 | 5 | |
2024 | 5 | |
2025 | 4 | |
2026 | 4 | |
2027-2031 | 22 | |
Defined benefit plan expected future benefit payments | $ 52 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Additional Information On Restricted Stock Units [Line Items] | |||
Number of shares granted | 589 | 942 | 963 |
Weighted average grant date fair value per share, granted | $ 123.13 | $ 93.48 | $ 83.47 |
Aggregate intrinsic value of shares vested | $ 94 | $ 97 | $ 92 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, beginning balance | 1,493 | ||
Number of shares granted | 589 | 942 | 963 |
Vested | (760) | ||
Forfeited | (76) | ||
Outstanding, ending balance | 1,246 | 1,493 | |
Weighted average grant date fair value, outstanding beginning balance | $ 88.55 | ||
Weighted average grant date fair value per share, granted | 123.13 | $ 93.48 | $ 83.47 |
Weighted average grant date fair value, vested | 86.66 | ||
Weighted average grant date fair value, forfeited | 100.94 | ||
Weighted average grant date fair value, outstanding ending balance | $ 105.28 | $ 88.55 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Additional Information on Stock Options [Line Items] | |||
Number of options granted | 361 | 755 | 758 |
Weighted average exercise price per share | $ 123.13 | $ 93.33 | $ 83.11 |
Weighted average grant date fair value per share | $ 41.15 | $ 21.47 | $ 21.08 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Stock options [member] | 12 Months Ended | |||
Dec. 31, 2021Rate | Dec. 31, 2020Rate | Dec. 31, 2019Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | 33.13% | 23.69% | 23.51% |
Dividend yield | [2] | 0.00% | 0.55% | 0.81% |
Risk-free interest rate | [3] | 0.92% | 0.96% | 2.47% |
Expected term (in years) | [4] | 6 years | 6 years | 6 years |
[1] | Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of Hilton's stock price for a period that corresponds to the expected life of the option. | |||
[2] | For options granted during the years ended December 31, 2020 and 2019, dividend yield was estimated based on our historical quarterly dividends and the three-month average stock price at the date of grant. However, after the 2020 options were granted, we suspended the declaration and payment of dividends and, at the time of grant for the 2021 options, we could not estimate when the payment of dividends would resume. | |||
[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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding, beginning balance | 3,027 | ||||
Granted | 361 | 755 | 758 | ||
Exercised | (566) | ||||
Forfeited | (19) | ||||
Outstanding, ending balance | 2,803 | [1] | 3,027 | ||
Exercisable, ending balance | [2] | 1,799 | |||
Weighted average exercise price, beginning balance | $ 71.88 | ||||
Weighted average exercise price, granted | 123.13 | $ 93.33 | $ 83.11 | ||
Weighted average exercise price, exercised | 64.25 | ||||
Weighted average exercise price, forfeited | 100.84 | ||||
Weighted average exercise price, ending balance | 80.03 | [1] | $ 71.88 | ||
Weighted average exercise price, exercisable | [2] | $ 67.85 | |||
Outstanding, aggregate intrinsic value | $ 210 | ||||
Outstanding, weighted average remaining contractual term | 6 years 6 months | ||||
Exercisable, aggregate intrinsic value | $ 157 | ||||
Exercisable, weighted average remaining contractual term | 5 years 6 months | ||||
[1] | The aggregate intrinsic value was $210 million and the weighted average remaining contractual term was 6.5 years. | ||||
[2] | The aggregate intrinsic value was $157 million and the weighted average remaining contractual term was 5.5 years. |
Share-Based Compensation - Sc_6
Share-Based Compensation - Schedule of Additional Information on Performance Shares (Details) - Performance shares [member] - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted | 241 | 348 | [1] | 384 | [1] | ||
Weighted average grant date fair value per share, granted | $ 123.13 | $ 93.33 | [1] | $ 83.11 | [1] | ||
Aggregate intrinsic value of shares vested | $ 36 | $ 58 | $ 0 | ||||
Incremental share based compensation expense | $ 23 | $ 70 | $ 44 | ||||
2020 Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance achievement shares modified | [1] | 288 | |||||
2019 Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance achievement shares modified | [1] | 340 | |||||
[1] | In December 2020, 288,000 and 340,000 performance shares from the 2020 grant and 2019 grant, respectively, were modified, as discussed above, with a modification date fair value per share of $102.95. |
Share-Based Compensation - Sc_7
Share-Based Compensation - Schedule of Performance Shares Award Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Restricted stock units (RSUs) [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding, ending balance | 1,246 | 1,493 | ||||
Number of shares granted | 589 | 942 | 963 | |||
Vested | (760) | |||||
Forfeited | (76) | |||||
Weighted average grant date fair value, outstanding beginning balance | $ 88.55 | |||||
Weighted average grant date fair value per share, granted | 123.13 | $ 93.48 | $ 83.47 | |||
Weighted average grant date fair value, vested | 86.66 | |||||
Weighted average grant date fair value, forfeited or canceled | 100.94 | |||||
Weighted average grant date fair value, outstanding ending balance | $ 105.28 | $ 88.55 | ||||
Aggregate intrinsic value of shares vested | $ 94 | $ 97 | $ 92 | |||
Performance shares [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding, ending balance | 848 | 1,020 | ||||
Number of shares granted | 241 | 348 | [1] | 384 | [1] | |
Vested | (391) | |||||
Forfeited | (22) | |||||
Weighted average grant date fair value, outstanding beginning balance | $ 84.57 | |||||
Weighted average grant date fair value per share, granted | 123.13 | $ 93.33 | [1] | $ 83.11 | [1] | |
Weighted average grant date fair value, vested | 79.42 | |||||
Weighted average grant date fair value, forfeited or canceled | 94.55 | |||||
Weighted average grant date fair value, outstanding ending balance | $ 97.63 | 84.57 | ||||
Performance achievement shares modified, modification date fair value per share | [1] | $ 102.95 | ||||
Aggregate intrinsic value of shares vested | $ 36 | $ 58 | $ 0 | |||
[1] | In December 2020, 288,000 and 340,000 performance shares from the 2020 grant and 2019 grant, respectively, were modified, as discussed above, with a modification date fair value per share of $102.95. |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 193 | $ 97 | $ 154 |
Tax benefit | 54 | $ 35 | $ 41 |
Unrecognized compensation costs related to unvested awards | $ 132 | ||
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 | 12,200 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Basic EPS: | |||||
Net income (loss) attributable to Hilton stockholders | $ 410 | $ (715) | $ 881 | ||
Weighted average shares outstanding, in millions | 279 | 277 | 287 | ||
Basic EPS | $ 1.47 | $ (2.58) | $ 3.07 | ||
Diluted EPS: | |||||
Net income (loss) attributable to Hilton stockholders | $ 410 | $ (715) | $ 881 | ||
Weighted average shares outstanding, in millions | [1] | 281 | 277 | 290 | |
Diluted EPS | [1] | $ 1.46 | $ (2.58) | $ 3.04 | |
Antidilutive securities excluded from computation of EPS, in millions | 4 | 1 | [1] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of EPS, in millions | 4 | 1 | [1] | ||
Antidilutive securities excluded from computation of EPS | less than 1 million | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Weighted average shares outstanding, in millions | [1] | 281 | 277 | 290 | |
Diluted EPS | [1] | $ 1.46 | $ (2.58) | $ 3.04 | |
Revision of Prior Period, Adjustment | |||||
Diluted EPS: | |||||
Diluted EPS | [1] | 0.02 | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Diluted EPS | [1] | $ 0.02 | |||
Previously reported [member] | |||||
Diluted EPS: | |||||
Weighted average shares outstanding, in millions | [1] | 279 | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Weighted average shares outstanding, in millions | [1] | 279 | |||
[1] | Certain shares related to share-based compensation were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive under the treasury stock method, including less than 1 million shares, 4 million shares, as revised, and 1 million shares for the years ended December 31, 2021, 2020 and 2019, respectively. The dilutive shares related to share-based compensation included in the previously reported weighted average shares outstanding of 279 million for the year ended December 31, 2020 were revised in the current period presentation, as the previously reported dilutive shares were determined to be anti-dilutive as a result of the net loss attributable to Hilton stockholders reported during the period. The result of the revision is an immaterial decrease in the previously reported diluted EPS for the year ended December 31, 2020 of $0.02. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (860) | |||
Ending balance | (779) | $ (860) | ||
Currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [1] | (511) | (549) | $ (545) |
Other comprehensive income (loss) before reclassifications | [1] | (36) | 33 | (5) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 7 | 5 | 1 |
Other comprehensive income (loss) | [1] | (29) | 38 | (4) |
Ending balance | [1] | (540) | (511) | (549) |
Pension liability adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [2] | (289) | (269) | (260) |
Other comprehensive income (loss) before reclassifications | [2] | 68 | (30) | (17) |
Amounts reclassified from accumulated other comprehensive loss | [2] | 11 | 10 | 8 |
Other comprehensive income (loss) | [2] | 79 | (20) | (9) |
Ending balance | [2] | (210) | (289) | (269) |
Cash flow hedge adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | [3] | (60) | (22) | 23 |
Other comprehensive income (loss) before reclassifications | [3] | 11 | (46) | (35) |
Amounts reclassified from accumulated other comprehensive loss | [3] | 20 | 8 | (10) |
Other comprehensive income (loss) | [3] | 31 | (38) | (45) |
Ending balance | [3] | (29) | (60) | (22) |
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (860) | (840) | (782) | |
Other comprehensive income (loss) before reclassifications | 43 | (43) | (57) | |
Amounts reclassified from accumulated other comprehensive loss | 38 | 23 | (1) | |
Other comprehensive income (loss) | 81 | (20) | (58) | |
Ending balance | $ (779) | $ (860) | $ (840) | |
[1] | Includes net investment hedge gains 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 which were recognized in our consolidated statements of operations in loss on sales of assets, net during the year ended December 31, 2021 and in loss on foreign currency transactions during the years ended December 31, 2020 and 2019. | |||
[2] | Amounts reclassified related to the amortization of prior service cost and amortization of net loss and were recognized in other non-operating income (loss), net in our consolidated statements of operations. | |||
[3] | Amounts reclassified were the result of hedging instruments, including: (a) interest rate swaps, inclusive of interest rate swaps that were dedesignated and subsequently settled, with related amounts recognized in interest expense in our consolidated statements of operations and (b) forward contracts that hedge our foreign currency denominated fees, with related amounts recognized in various revenue line items, as applicable, in our consolidated statements of operations. |
Business Segments - Hotel Prope
Business Segments - Hotel Properties by Segment (Details) | 12 Months Ended |
Dec. 31, 2021HotelSegmentRoom | |
Segment Reporting Information [Line Items] | |
Number of operating segments | Segment | 2 |
Management and franchise | |
Segment Reporting Information [Line Items] | |
Number of managed hotels | 745 |
Number of franchised hotels | 5,978 |
Number of managed and franchised hotel rooms | Room | 1,047,262 |
Ownership | |
Segment Reporting Information [Line Items] | |
Number of owned and leased hotel properties | 54 |
Number of owned and leased hotel rooms | Room | 18,151 |
Number of leased hotels and resorts | 46 |
Number of hotels owned by consolidated non-wholly owned entities | 1 |
Number of hotels leased by consolidated VIEs | 2 |
Number of hotels owned or leased by unconsolidated affiliates | 5 |
Number of leased hotel exits | 5 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Revenues from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | $ 5,788 | $ 4,307 | $ 9,452 | |
Amortization of contract acquisition costs | (32) | (29) | (29) | |
Management and franchise | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 1,809 | 1,138 | 2,315 | |
Management and franchise | Franchise and licensing fees | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 1,508 | 956 | 1,691 | |
Management and franchise | Base and other management fees | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | [1] | 203 | 144 | 394 |
Management and franchise | Incentive management fees | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 98 | 38 | 230 | |
Ownership | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 598 | 421 | 1,422 | |
Segment revenues | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 2,407 | 1,559 | 3,737 | |
Intersegment eliminations | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | [1] | (10) | (3) | (43) |
Other revenues | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | 79 | 73 | 101 | |
Direct reimbursements from managed and franchised properties | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | [2] | 1,503 | 1,375 | 3,110 |
Indirect reimbursements from manged and franchised properties | ||||
Segment Reporting, Revenue Reconciling Items [Line Items] | ||||
Revenues | [2] | $ 1,841 | $ 1,332 | $ 2,576 |
[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 | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Amortization of contract acquisition costs | $ (32) | $ (29) | $ (29) | |
Other revenues, less other expenses | 34 | 13 | 29 | |
Net other expenses from managed and franchised properties | (110) | (397) | (77) | |
Depreciation and amortization expenses | (188) | (331) | (346) | |
General and administrative expenses | (405) | (311) | (441) | |
Reorganization costs | 0 | (41) | 0 | |
Impairment losses | 0 | (258) | 0 | |
Gain (loss) on sales of assets, net | (7) | 0 | 81 | |
Operating income (loss) | 1,010 | (418) | 1,657 | |
Interest expense | (397) | (429) | (414) | |
Loss on foreign currency transactions | (7) | (27) | (2) | |
Loss on debt extinguishments | 69 | 48 | 0 | |
Other non-operating income (loss), net | 23 | (2) | 3 | |
Income (loss) before income taxes | 560 | (924) | 1,244 | |
Recognized as a reduction of franchise and licensing fees and base and other management fees | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Amortization of contract acquisition costs | (32) | (29) | (29) | |
Management and franchise | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | [1] | 1,809 | 1,138 | 2,315 |
Ownership | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | [1] | (91) | (202) | 125 |
Segment operating income | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | $ 1,718 | $ 936 | $ 2,440 | |
[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, 2021 | Dec. 31, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 15,441 | $ 16,755 |
Corporate and other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,976 | 4,448 |
Management and franchise | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 11,404 | 11,065 |
Ownership | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,061 | $ 1,242 |
Business Segments - Schedule _2
Business Segments - Schedule of Revenues by Country (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 5,788 | $ 4,307 | $ 9,452 | |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 4,765 | 3,593 | 7,423 | |
All other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | [1] | $ 1,023 | $ 714 | $ 2,029 |
[1] | There are no countries included in these amounts that individually represented more than 10 percent of total revenues for the years ended December 31, 2021, 2020 and 2019. |
Business Segments - Schedule _3
Business Segments - Schedule of Property and Equipment, Net by Country (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | $ 305 | $ 346 | |
United States | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 112 | 128 | |
United Kingdom | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 77 | 79 | |
Japan | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | 60 | 77 | |
All other | |||
Schedule of Property and Equipment, Net by Country [Line Items] | |||
Property and equipment, net | [1] | $ 56 | $ 62 |
[1] | There are no countries included in these amounts that individually represented more than 10 percent of total property and equipment, net as of December 31, 2021 and 2020. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | |
Commitments and Contingencies [Line Items] | ||
Total current liabilities | $ 3,019 | $ 2,431 |
Letter of Credit [Member] | ||
Commitments and Contingencies [Line Items] | ||
Number of letters of credit provided to hotel owners | Segment | 2 | |
Letter of credit provided to hotel owner [Member] | $ 26 | |
Performance guarantees | ||
Commitments and Contingencies [Line Items] | ||
Guarantees, expiration | 2025 to 2043 | |
Guarantees, possible cash outlays | $ 10 | |
Total current liabilities | $ 2 | $ 7 |
Debt guarantee | ||
Commitments and Contingencies [Line Items] | ||
Guarantees, expiration | 2023 to 2026 | |
Guarantees, possible cash outlays | $ 35 |