x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 27-4384691 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
7930 Jones Branch Drive, Suite 1100, McLean, VA | 22102 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer ¨ | |
Non-accelerated filer ¨ | (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
Emerging growth company ¨ |
Page No. | ||
PART I | FINANCIAL INFORMATION | |
Item 1. | Financial Statements | |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II | OTHER INFORMATION | |
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
Signatures |
September 30, | December 31, | ||||||
2017 | 2016 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 670 | $ | 1,062 | |||
Restricted cash and cash equivalents | 126 | 121 | |||||
Accounts receivable, net of allowance for doubtful accounts of $26 and $27 | 928 | 755 | |||||
Prepaid expenses | 130 | 89 | |||||
Income taxes receivable | 5 | 13 | |||||
Other | 46 | 39 | |||||
Current assets of discontinued operations | — | 1,478 | |||||
Total current assets (variable interest entities - $93 and $167) | 1,905 | 3,557 | |||||
Intangibles and Other Assets: | |||||||
Goodwill | 5,183 | 5,218 | |||||
Brands | 4,887 | 4,848 | |||||
Management and franchise contracts, net | 924 | 963 | |||||
Other intangible assets, net | 428 | 447 | |||||
Property and equipment, net | 346 | 341 | |||||
Deferred income tax assets | 82 | 82 | |||||
Other | 468 | 408 | |||||
Non-current assets of discontinued operations | — | 10,347 | |||||
Total intangibles and other assets (variable interest entities - $168 and $569) | 12,318 | 22,654 | |||||
TOTAL ASSETS | $ | 14,223 | $ | 26,211 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable, accrued expenses and other | $ | 1,911 | $ | 1,821 | |||
Current maturities of long-term debt | 49 | 33 | |||||
Income taxes payable | 73 | 56 | |||||
Current liabilities of discontinued operations | — | 774 | |||||
Total current liabilities (variable interest entities - $60 and $124) | 2,033 | 2,684 | |||||
Long-term debt | 6,564 | 6,583 | |||||
Deferred revenues | 95 | 42 | |||||
Deferred income tax liabilities | 1,650 | 1,778 | |||||
Liability for guest loyalty program | 879 | 889 | |||||
Other | 1,554 | 1,492 | |||||
Non-current liabilities of discontinued operations | — | 6,894 | |||||
Total liabilities (variable interest entities - $275 and $766) | 12,775 | 20,362 | |||||
Commitments and contingencies - see Note 14 | |||||||
Equity: | |||||||
Preferred stock, $0.01 par value; 3,000,000,000 authorized shares, none issued or outstanding as of September 30, 2017 and December 31, 2016 | — | — | |||||
Common stock(1), $0.01 par value; 10,000,000,000 authorized shares, 330,923,170 issued and 320,920,423 outstanding as of September 30, 2017 and 329,351,581 issued and 329,341,992 outstanding as of December 31, 2016 | 3 | 3 | |||||
Treasury stock, at cost; 10,002,747 shares as of September 30, 2017 and 9,589 shares as of December 31, 2016 | (625 | ) | — | ||||
Additional paid-in capital(1) | 10,273 | 10,220 | |||||
Accumulated deficit | (7,384 | ) | (3,323 | ) | |||
Accumulated other comprehensive loss | (820 | ) | (1,001 | ) | |||
Total Hilton stockholders' equity | 1,447 | 5,899 | |||||
Noncontrolling interests | 1 | (50 | ) | ||||
Total equity | 1,448 | 5,849 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 14,223 | $ | 26,211 |
(1) | Balance as of December 31, 2016 was adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | |||||||||||||||
Franchise fees | $ | 373 | $ | 314 | $ | 1,039 | $ | 878 | |||||||
Base and other management fees | 87 | 59 | 255 | 179 | |||||||||||
Incentive management fees | 52 | 34 | 160 | 103 | |||||||||||
Owned and leased hotels | 388 | 372 | 1,065 | 1,089 | |||||||||||
Other revenues | 21 | 18 | 78 | 53 | |||||||||||
921 | 797 | 2,597 | 2,302 | ||||||||||||
Other revenues from managed and franchised properties | 1,433 | 1,070 | 4,264 | 3,241 | |||||||||||
Total revenues | 2,354 | 1,867 | 6,861 | 5,543 | |||||||||||
Expenses | |||||||||||||||
Owned and leased hotels | 345 | 325 | 947 | 981 | |||||||||||
Depreciation and amortization | 83 | 90 | 259 | 273 | |||||||||||
Impairment loss | — | — | — | 15 | |||||||||||
General and administrative | 104 | 107 | 326 | 287 | |||||||||||
Other expenses | 7 | 10 | 41 | 39 | |||||||||||
539 | 532 | 1,573 | 1,595 | ||||||||||||
Other expenses from managed and franchised properties | 1,433 | 1,070 | 4,264 | 3,241 | |||||||||||
Total expenses | 1,972 | 1,602 | 5,837 | 4,836 | |||||||||||
Gain on sales of assets, net | — | — | — | 1 | |||||||||||
Operating income | 382 | 265 | 1,024 | 708 | |||||||||||
Interest expense | (100 | ) | (97 | ) | (304 | ) | (286 | ) | |||||||
Gain (loss) on foreign currency transactions | 2 | (10 | ) | 3 | (36 | ) | |||||||||
Loss on debt extinguishment | — | — | (60 | ) | — | ||||||||||
Other non-operating income, net | 5 | — | 11 | 5 | |||||||||||
Income from continuing operations before income taxes | 289 | 158 | 674 | 391 | |||||||||||
Income tax expense | (108 | ) | (69 | ) | (251 | ) | (11 | ) | |||||||
Income from continuing operations, net of taxes | 181 | 89 | 423 | 380 | |||||||||||
Income from discontinued operations, net of taxes | — | 103 | — | 366 | |||||||||||
Net income | 181 | 192 | 423 | 746 | |||||||||||
Net income attributable to noncontrolling interests | (2 | ) | (5 | ) | (4 | ) | (11 | ) | |||||||
Net income attributable to Hilton stockholders | $ | 179 | $ | 187 | $ | 419 | $ | 735 | |||||||
Earnings per share(1) | |||||||||||||||
Basic: | |||||||||||||||
Net income from continuing operations per share | $ | 0.56 | $ | 0.27 | $ | 1.29 | $ | 1.14 | |||||||
Net income from discontinued operations per share | — | 0.30 | — | 1.09 | |||||||||||
Net income per share | $ | 0.56 | $ | 0.57 | $ | 1.29 | $ | 2.23 | |||||||
Diluted: | |||||||||||||||
Net income from continuing operations per share | $ | 0.55 | $ | 0.27 | $ | 1.28 | $ | 1.14 | |||||||
Net income from discontinued operations per share | — | 0.30 | — | 1.09 | |||||||||||
Net income per share | $ | 0.55 | $ | 0.57 | $ | 1.28 | $ | 2.23 | |||||||
Cash dividends declared per share(1) | $ | 0.15 | $ | 0.21 | $ | 0.45 | $ | 0.63 |
(1) | Weighted average shares outstanding used in the computation of basic and diluted earnings per share and cash dividends declared per share for the three and nine months ended September 30, 2016 were adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See Note 1: "Organization and Basis of Presentation" for additional information. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 181 | $ | 192 | $ | 423 | $ | 746 | |||||||
Other comprehensive income (loss), net of tax benefit (expense): | |||||||||||||||
Currency translation adjustment, net of tax of $—, $1, $1 and $(14) | 43 | (2 | ) | 117 | (42 | ) | |||||||||
Pension liability adjustment, net of tax of $(1), $(1), $(2) and $(2) | — | — | 4 | 2 | |||||||||||
Cash flow hedge adjustment, net of tax of $(2), $(1), $2 and $3 | 3 | 3 | (4 | ) | (3 | ) | |||||||||
Total other comprehensive income (loss) | 46 | 1 | 117 | (43 | ) | ||||||||||
Comprehensive income | 227 | 193 | 540 | 703 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (1 | ) | (6 | ) | (3 | ) | (10 | ) | |||||||
Comprehensive income attributable to Hilton stockholders | $ | 226 | $ | 187 | $ | 537 | $ | 693 |
Nine Months Ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
Operating Activities: | |||||||
Net income | $ | 423 | $ | 746 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 259 | 509 | |||||
Impairment loss | — | 15 | |||||
Gain on sales of assets, net | — | (2 | ) | ||||
Loss (gain) on foreign currency transactions | (3 | ) | 33 | ||||
Loss on debt extinguishment | 60 | — | |||||
Share-based compensation | 56 | 50 | |||||
Deferred income taxes | (123 | ) | (147 | ) | |||
Working capital changes and other | (26 | ) | (235 | ) | |||
Net cash provided by operating activities | 646 | 969 | |||||
Investing Activities: | |||||||
Capital expenditures for property and equipment | (36 | ) | (227 | ) | |||
Proceeds from asset dispositions | — | 1 | |||||
Contract acquisition costs | (51 | ) | (35 | ) | |||
Capitalized software costs | (45 | ) | (56 | ) | |||
Other | (14 | ) | (29 | ) | |||
Net cash used in investing activities | (146 | ) | (346 | ) | |||
Financing Activities: | |||||||
Borrowings | 1,823 | 1,000 | |||||
Repayment of debt | (1,848 | ) | (1,094 | ) | |||
Debt issuance costs and redemption premium | (69 | ) | (35 | ) | |||
Dividends paid | (147 | ) | (207 | ) | |||
Cash transferred in spin-offs of Park and HGV | (501 | ) | — | ||||
Repurchases of common stock | (625 | ) | — | ||||
Distributions to noncontrolling interests | (1 | ) | (6 | ) | |||
Tax withholdings on share-based compensation | (28 | ) | (13 | ) | |||
Net cash used in financing activities | (1,396 | ) | (355 | ) | |||
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 8 | 7 | |||||
Net increase (decrease) in cash, restricted cash and cash equivalents | (888 | ) | 275 | ||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,183 | 633 | |||||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 | |||||
Cash, restricted cash and cash equivalents, beginning of period | 1,684 | 856 | |||||
Cash, restricted cash and cash equivalents from continuing operations, end of period | 796 | 609 | |||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | — | 522 | |||||
Cash, restricted cash and cash equivalents, end of period | $ | 796 | $ | 1,131 | |||
Supplemental Disclosures: | |||||||
Cash paid during the year: | |||||||
Interest | $ | 225 | $ | 341 | |||
Income taxes, net of refunds | 377 | 476 | |||||
Non-cash investing activities: | |||||||
Conversion of Park's property and equipment to timeshare inventory of HGV | $ | — | $ | (79 | ) | ||
Non-cash financing activities: | |||||||
Spin-offs of Park and HGV | $ | 29 | $ | — |
December 31, 2016 | |||
(in millions) | |||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ | 341 | |
Restricted cash and cash equivalents | 160 | ||
Accounts receivable, net | 250 | ||
Prepaid expenses | 48 | ||
Inventories | 527 | ||
Current portion of financing receivables, net | 136 | ||
Other | 16 | ||
Total current assets of discontinued operations (variable interest entities - $92) | 1,478 | ||
Intangibles and Other Assets: | |||
Goodwill | 604 | ||
Management and franchise contracts, net | 56 | ||
Other intangible assets, net | 60 | ||
Property and equipment, net | 8,589 | ||
Deferred income tax assets | 35 | ||
Financing receivables, net | 895 | ||
Investments in affiliates | 81 | ||
Other | 27 | ||
Total intangibles and other assets of discontinued operations (variable interest entities - $405) | 10,347 | ||
TOTAL ASSETS OF DISCONTINUED OPERATIONS | $ | 11,825 | |
LIABILITIES | |||
Current Liabilities: | |||
Accounts payable, accrued expenses and other | $ | 632 | |
Current maturities of long-term debt | 65 | ||
Current maturities of timeshare debt | 73 | ||
Income taxes payable | 4 | ||
Total current liabilities of discontinued operations (variable interest entities - $81) | 774 | ||
Long-term debt | 3,437 | ||
Timeshare debt | 621 | ||
Deferred revenues | 22 | ||
Deferred income tax liabilities | 2,797 | ||
Other | 17 | ||
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS (variable interest entities - $506) | $ | 7,668 |
Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | ||||||
(in millions) | |||||||
Total revenues from discontinued operations | $ | 1,075 | $ | 3,200 | |||
Expenses | |||||||
Owned and leased hotels | 446 | 1,354 | |||||
Timeshare | 257 | 697 | |||||
Depreciation and amortization | 79 | 236 | |||||
Other | 65 | 167 | |||||
Total expenses from discontinued operations | 847 | 2,454 | |||||
Gain on sales of assets, net | — | 1 | |||||
Operating income from discontinued operations | 228 | 747 | |||||
Non-operating loss, net | (49 | ) | (137 | ) | |||
Income from discontinued operations before income taxes | 179 | 610 | |||||
Income tax expense | (76 | ) | (244 | ) | |||
Income from discontinued operations, net of taxes | 103 | 366 | |||||
Income from discontinued operations attributable to noncontrolling interests, net of taxes | (3 | ) | (6 | ) | |||
Income from discontinued operations attributable to Hilton stockholders, net of taxes | $ | 100 | $ | 360 |
Nine Months Ended September 30, 2016 | |||
(in millions) | |||
Non-cash items included in net income: | |||
Depreciation and amortization | $ | 236 | |
Gain on sales of assets, net | (1 | ) | |
Investing activities: | |||
Capital expenditures for property and equipment | $ | (185 | ) |
September 30, | December 31, | ||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Cash and cash equivalents | $ | 71 | $ | 57 | |||
Accounts receivable, net | 13 | 14 | |||||
Property and equipment, net | 52 | 52 | |||||
Deferred income tax assets | 60 | 58 | |||||
Other non-current assets | 56 | 53 | |||||
Accounts payable, accrued expenses and other | 41 | 33 | |||||
Long-term debt(1) | 218 | 212 |
(1) | Includes capital lease obligations of $197 million and $191 million as of September 30, 2017 and December 31, 2016, respectively. |
Ownership(1) | Management and Franchise(2) | Total | |||||||||
(in millions) | |||||||||||
Balance as of December 31, 2016 | $ | 184 | $ | 5,034 | $ | 5,218 | |||||
Spin-off of Park | (91 | ) | — | (91 | ) | ||||||
Foreign currency translation | 10 | 46 | 56 | ||||||||
Balance as of September 30, 2017 | $ | 103 | $ | 5,080 | $ | 5,183 |
(1) | The balance as of December 31, 2016 excludes goodwill of $2,706 million and accumulated impairment losses of $2,102 million that were attributable to Park and included in non-current assets of discontinued operations in our condensed consolidated balance sheet. Amounts for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented: |
Gross Carrying Value | Accumulated Impairment Losses | Net Carrying Value | |||||||||
(in millions) | |||||||||||
Balance as of December 31, 2016 | $ | 856 | $ | (672 | ) | $ | 184 | ||||
Spin-off of Park | (423 | ) | 332 | (91 | ) | ||||||
Foreign currency translation | 10 | — | 10 | ||||||||
Balance as of September 30, 2017 | $ | 443 | $ | (340 | ) | $ | 103 |
(2) | There were no accumulated impairment losses for the management and franchise reporting unit as of September 30, 2017 and December 31, 2016. |
September 30, 2017 | |||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||
(in millions) | |||||||||||
Amortizing Intangible Assets: | |||||||||||
Management and franchise contracts: | |||||||||||
Management and franchise contracts recorded at merger(1) | $ | 2,240 | $ | (1,672 | ) | $ | 568 | ||||
Contract acquisition costs and other | 431 | (75 | ) | 356 | |||||||
$ | 2,671 | $ | (1,747 | ) | $ | 924 | |||||
Other intangible assets: | |||||||||||
Leases(1) | $ | 298 | $ | (148 | ) | $ | 150 | ||||
Capitalized software | 555 | (411 | ) | 144 | |||||||
Hilton Honors(1) | 340 | (211 | ) | 129 | |||||||
Other | 38 | (33 | ) | 5 | |||||||
$ | 1,231 | $ | (803 | ) | $ | 428 | |||||
Non-amortizing Intangible Assets: | |||||||||||
Brands(1)(2) | $ | 4,887 | $ | — | $ | 4,887 |
December 31, 2016 | |||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||
(in millions) | |||||||||||
Amortizing Intangible Assets: | |||||||||||
Management and franchise contracts: | |||||||||||
Management and franchise contracts recorded at merger(1) | $ | 2,221 | $ | (1,534 | ) | $ | 687 | ||||
Contract acquisition costs and other | 343 | (67 | ) | 276 | |||||||
$ | 2,564 | $ | (1,601 | ) | $ | 963 | |||||
Other intangible assets: | |||||||||||
Leases(1) | $ | 276 | $ | (126 | ) | $ | 150 | ||||
Capitalized software | 510 | (362 | ) | 148 | |||||||
Hilton Honors(1) | 335 | (192 | ) | 143 | |||||||
Other | 37 | (31 | ) | 6 | |||||||
$ | 1,158 | $ | (711 | ) | $ | 447 | |||||
Non-amortizing Intangible Assets: | |||||||||||
Brands(1)(2) | $ | 4,848 | $ | — | $ | 4,848 |
(1) | Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone. |
(2) | Changes to our brands intangible assets from December 31, 2016 to September 30, 2017 were due to foreign currency translations. |
Year | (in millions) | ||
2017 (remaining) | $ | 70 | |
2018 | 275 | ||
2019 | 260 | ||
2020 | 212 | ||
2021 | 82 | ||
Thereafter | 453 | ||
$ | 1,352 |
September 30, | December 31, | ||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Senior notes due 2021 | $ | — | $ | 1,500 | |||
Senior notes with a rate of 4.250%, due 2024 | 1,000 | 1,000 | |||||
Senior notes with a rate of 4.625%, due 2025 | 900 | — | |||||
Senior notes with a rate of 4.875%, due 2027 | 600 | — | |||||
Senior secured term loan facility due 2020 | — | 750 | |||||
Senior secured term loan facility with a rate of 3.24%, due 2023 | 3,939 | 3,209 | |||||
Capital lease obligations with an average rate of 6.34%, due 2021 to 2030 | 237 | 227 | |||||
Other debt with an average rate of 2.65%, due 2018 to 2026 | 21 | 20 | |||||
6,697 | 6,706 | ||||||
Less: unamortized deferred financing costs and discount | (84 | ) | (90 | ) | |||
Less: current maturities of long-term debt(1) | (49 | ) | (33 | ) | |||
$ | 6,564 | $ | 6,583 |
(1) | Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt. |
Year | (in millions) | ||
2017 (remaining) | $ | 12 | |
2018 | 59 | ||
2019 | 55 | ||
2020 | 56 | ||
2021 | 57 | ||
Thereafter | 6,458 | ||
$ | 6,697 |
September 30, | December 31, | ||||||||
Balance Sheet Classification | 2017 | 2016 | |||||||
(in millions) | |||||||||
Cash Flow Hedges(1): | |||||||||
Interest rate swaps | Other liabilities | $ | 13 | N/A | |||||
Non-designated Hedges: | |||||||||
Interest rate swaps | Other liabilities | N/A | $ | 12 | |||||
Forward contracts | Other current assets | 1 | 3 | ||||||
Forward contracts | Accounts payable, accrued expenses and other | 1 | 4 |
(1) | The fair value of the Fee Forward Contracts as of September 30, 2017 was less than $1 million. |
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Classification of Gain (Loss) Recognized | 2017 | 2016 | 2017 | 2016 | |||||||||||||
(in millions) | |||||||||||||||||
Cash Flow Hedges(1)(2): | |||||||||||||||||
Interest rate swaps | Other comprehensive income (loss) | $ | 3 | $ | 3 | $ | (13 | ) | $ | (7 | ) | ||||||
Forward contracts | Other comprehensive income (loss) | (1 | ) | N/A | (1 | ) | N/A | ||||||||||
Non-designated Hedges: | |||||||||||||||||
Interest rate swaps | Other non-operating income, net | — | (1 | ) | 2 | (1 | ) | ||||||||||
Interest rate swaps(3) | Interest expense | (3 | ) | (1 | ) | (8 | ) | (1 | ) | ||||||||
Forward contracts | Gain (loss) on foreign currency transactions | 3 | 4 | 10 | 7 |
(1) | There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three and nine months ended September 30, 2017 and 2016. |
(2) | The earnings effect of the Fee Forward Contracts on fee revenues for the three and nine months ended September 30, 2017 was less than $1 million. |
(3) | These amounts are related to the dedesignation of the 2013 Interest Rate Swaps as cash flow hedges and were reclassified from accumulated other comprehensive loss as the underlying transactions occurred. |
September 30, 2017 | |||||||||||||||
Hierarchy Level | |||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 283 | $ | — | $ | 283 | $ | — | |||||||
Restricted cash equivalents | 12 | — | 12 | — | |||||||||||
Liabilities: | |||||||||||||||
Long-term debt(1) | 6,355 | 2,576 | — | 3,959 |
December 31, 2016 | |||||||||||||||
Hierarchy Level | |||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 782 | $ | — | $ | 782 | $ | — | |||||||
Restricted cash equivalents | 11 | — | 11 | — | |||||||||||
Liabilities: | |||||||||||||||
Long-term debt(1) | 6,369 | 2,516 | — | 4,006 |
(1) | The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt. |
Number of Shares | Weighted Average Grant Date Fair Value per Share | |||||
Outstanding as of December 31, 2016 | 1,624,541 | $ | 65.24 | |||
Conversion from performance shares upon completion of the spin-offs(1) | 671,604 | 72.42 | ||||
Effect of the spin-offs(2) | 439,113 | 57.60 | ||||
Granted | 1,467,396 | 58.80 | ||||
Vested(2) | (881,070 | ) | 47.26 | |||
Forfeited(2) | (136,810 | ) | 50.27 | |||
Outstanding as of September 30, 2017(2) | 3,184,774 | 52.67 |
(1) | Represents all performance shares outstanding as of December 31, 2016. |
(2) | The weighted average grant date fair value was adjusted to reflect the Conversion Factor. |
Number of Options | Weighted Average Exercise Price per Share | |||||
Outstanding as of December 31, 2016 | 1,076,031 | $ | 66.83 | |||
Effect of the spin-offs(1) | 251,145 | 57.60 | ||||
Granted | 748,965 | 58.40 | ||||
Exercised(1) | (44,336 | ) | 46.12 | |||
Forfeited or expired(1) | (20,799 | ) | 53.47 | |||
Outstanding as of September 30, 2017(1) | 2,011,006 | 51.22 | ||||
Exercisable as of September 30, 2017(1) | 759,350 | 48.32 |
(1) | The weighted average exercise price was adjusted to reflect the Conversion Factor. |
Expected volatility(1) | 24.00 | % |
Dividend yield(2) | 0.92 - 1.03% | |
Risk-free rate(3) | 1.93 - 2.03% | |
Expected term (in years)(4) | 6.0 |
(1) | Estimated using historical movement of Hilton's stock price and, due to limited trading history, historical volatility of our peer group over a time period consistent with our expected term assumption. |
(2) | Estimated based on the expected annualized dividend payment at the date of grant. |
(3) | Based on the yields of U.S. Department of Treasury instruments with similar expected lives. |
(4) | Estimated using the average of the vesting periods and the contractual term of the options. |
EBITDA CAGR | FCF CAGR | ||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value per Share | Number of Shares | Weighted Average Grant Date Fair Value per Share | ||||||||||
Outstanding as of December 31, 2016 | 335,802 | $ | 68.09 | — | N/A | ||||||||
Conversion to RSUs upon completion of the spin-offs | (335,802 | ) | 68.09 | — | N/A | ||||||||
Granted | 179,006 | 58.40 | 178,975 | $ | 58.40 | ||||||||
Forfeited | (2,915 | ) | 58.02 | (2,914 | ) | 58.02 | |||||||
Outstanding as of September 30, 2017 | 176,091 | 58.41 | 176,061 | 58.41 |
Equity Attributable to Hilton Stockholders | ||||||||||||||||||||||||||||||
Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||
Common Stock | Noncontrolling Interests(1) | |||||||||||||||||||||||||||||
Shares | Amount | Total | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Balance as of December 31, 2016(2) | 329 | $ | 3 | $ | — | $ | 10,220 | $ | (3,323 | ) | $ | (1,001 | ) | $ | (50 | ) | $ | 5,849 | ||||||||||||
Share-based compensation | 2 | — | — | 52 | — | — | — | 52 | ||||||||||||||||||||||
Repurchases of common stock | (10 | ) | — | (625 | ) | — | — | — | — | (625 | ) | |||||||||||||||||||
Net income | — | — | — | — | 419 | — | 4 | 423 | ||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 118 | (1 | ) | 117 | |||||||||||||||||||||
Dividends | — | — | — | — | (148 | ) | — | — | (148 | ) | ||||||||||||||||||||
Spin-offs of Park and HGV | — | — | — | — | (4,331 | ) | 63 | 49 | (4,219 | ) | ||||||||||||||||||||
Cumulative effect of the adoption of ASU 2016-09 | — | — | — | 1 | (1 | ) | — | — | — | |||||||||||||||||||||
Distributions | — | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||||||
Balance as of September 30, 2017 | 321 | $ | 3 | $ | (625 | ) | $ | 10,273 | $ | (7,384 | ) | $ | (820 | ) | $ | 1 | $ | 1,448 |
Equity Attributable to Hilton Stockholders | ||||||||||||||||||||||||||
Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||
Common Stock | Noncontrolling Interests(1) | |||||||||||||||||||||||||
Shares | Amount | Total | ||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Balance as of December 31, 2015(2) | 329 | $ | 3 | $ | 10,158 | $ | (3,392 | ) | $ | (784 | ) | $ | (34 | ) | $ | 5,951 | ||||||||||
Share-based compensation | 1 | — | 47 | — | — | — | 47 | |||||||||||||||||||
Net income | — | — | — | 735 | — | 11 | 746 | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | (42 | ) | (1 | ) | (43 | ) | ||||||||||||||||
Dividends | — | — | — | (209 | ) | — | — | (209 | ) | |||||||||||||||||
Cumulative effect of the adoption of ASU 2015-02 | — | — | — | — | — | 5 | 5 | |||||||||||||||||||
Distributions | — | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||
Balance as of September 30, 2016(2) | 330 | $ | 3 | $ | 10,205 | $ | (2,866 | ) | $ | (826 | ) | $ | (25 | ) | $ | 6,491 |
(1) | Other comprehensive loss for the nine months ended September 30, 2017 and 2016 was related to a pension liability adjustment and a currency translation adjustment, respectively. |
(2) | Common stock and additional paid-in capital were adjusted to reflect the Reverse Stock Split. See Note 1: "Organization and Basis of Presentation" for additional information. |
Currency Translation Adjustment(1) | Pension Liability Adjustment(2) | Cash Flow Hedge Adjustment(3) | Total | ||||||||||||
(in millions) | |||||||||||||||
Balance as of December 31, 2016 | $ | (738 | ) | $ | (251 | ) | $ | (12 | ) | $ | (1,001 | ) | |||
Other comprehensive income (loss) before reclassifications | 116 | (1 | ) | (9 | ) | 106 | |||||||||
Amounts reclassified from accumulated other comprehensive loss | 1 | 6 | 5 | 12 | |||||||||||
Net current period other comprehensive income (loss) | 117 | 5 | (4 | ) | 118 | ||||||||||
Spin-offs of Park and HGV | 63 | — | — | 63 | |||||||||||
Balance as of September 30, 2017 | $ | (558 | ) | $ | (246 | ) | $ | (16 | ) | $ | (820 | ) |
Currency Translation Adjustment(1) | Pension Liability Adjustment(2) | Cash Flow Hedge Adjustment(3) | Total | ||||||||||||
(in millions) | |||||||||||||||
Balance as of December 31, 2015 | $ | (580 | ) | $ | (194 | ) | $ | (10 | ) | $ | (784 | ) | |||
Other comprehensive loss before reclassifications | (40 | ) | (2 | ) | (4 | ) | (46 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | (1 | ) | 4 | 1 | 4 | ||||||||||
Net current period other comprehensive income (loss) | (41 | ) | 2 | (3 | ) | (42 | ) | ||||||||
Balance as of September 30, 2016 | $ | (621 | ) | $ | (192 | ) | $ | (13 | ) | $ | (826 | ) |
(1) | Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. Amounts reclassified relate to gains on net investment hedges and, for the nine months ended September 30, 2017, also the release of currency translation adjustments due to the termination of a lease contract. The reclassifications were recognized in gain (loss) on foreign currency transactions in our condensed consolidated statements of operations and are presented net of a less than $1 million tax benefit and expense for the nine months ended September 30, 2017 and 2016, respectively. |
(2) | Amounts reclassified include the amortization of prior service cost and the amortization of net loss that were included in our computation of net periodic pension cost. They were recognized in general and administrative expenses in our condensed consolidated statements of operations and are presented net of a $2 million and $3 million tax benefit for the nine months ended September 30, 2017 and 2016, respectively. |
(3) | Amounts reclassified relate to the 2013 Interest Rate Swaps, were recognized in interest expense in our condensed consolidated statements of operations and are presented net of a tax benefit of $3 million and less than $1 million for the nine months ended September 30, 2017 and 2016, respectively. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Basic EPS: | |||||||||||||||
Numerator: | |||||||||||||||
Net income from continuing operations attributable to Hilton stockholders | $ | 179 | $ | 87 | $ | 419 | $ | 375 | |||||||
Denominator: | |||||||||||||||
Weighted average shares outstanding | 322 | 329 | 326 | 329 | |||||||||||
Basic EPS | $ | 0.56 | $ | 0.27 | $ | 1.29 | $ | 1.14 | |||||||
Diluted EPS: | |||||||||||||||
Numerator: | |||||||||||||||
Net income from continuing operations attributable to Hilton stockholders | $ | 179 | $ | 87 | $ | 419 | $ | 375 | |||||||
Denominator: | |||||||||||||||
Weighted average shares outstanding | 325 | 331 | 328 | 330 | |||||||||||
Diluted EPS | $ | 0.55 | $ | 0.27 | $ | 1.28 | $ | 1.14 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions) | |||||||||||||||
Management and franchise(1) | $ | 524 | $ | 418 | $ | 1,483 | $ | 1,191 | |||||||
Ownership | 388 | 372 | 1,065 | 1,089 | |||||||||||
Segment revenues | 912 | 790 | 2,548 | 2,280 | |||||||||||
Other revenues | 21 | 18 | 78 | 53 | |||||||||||
Other revenues from managed and franchised properties | 1,433 | 1,070 | 4,264 | 3,241 | |||||||||||
Intersegment fees elimination(1) | (12 | ) | (11 | ) | (29 | ) | (31 | ) | |||||||
Total revenues | $ | 2,354 | $ | 1,867 | $ | 6,861 | $ | 5,543 |
(1) | Includes management, royalty and intellectual property fees charged to our ownership segment, which were eliminated in our condensed consolidated statements of operations. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions) | |||||||||||||||
Management and franchise(1) | $ | 524 | $ | 418 | $ | 1,483 | $ | 1,191 | |||||||
Ownership(1) | 31 | 36 | 89 | 77 | |||||||||||
Segment operating income | 555 | 454 | 1,572 | 1,268 | |||||||||||
Other revenues, less other expenses | 14 | 8 | 37 | 14 | |||||||||||
Depreciation and amortization | (83 | ) | (90 | ) | (259 | ) | (273 | ) | |||||||
Impairment loss | — | — | — | (15 | ) | ||||||||||
General and administrative | (104 | ) | (107 | ) | (326 | ) | (287 | ) | |||||||
Gain on sales of assets, net | — | — | — | 1 | |||||||||||
Operating income | 382 | 265 | 1,024 | 708 | |||||||||||
Interest expense | (100 | ) | (97 | ) | (304 | ) | (286 | ) | |||||||
Gain (loss) on foreign currency transactions | 2 | (10 | ) | 3 | (36 | ) | |||||||||
Loss on debt extinguishment | — | — | (60 | ) | — | ||||||||||
Other non-operating income, net | 5 | — | 11 | 5 | |||||||||||
Income from continuing operations before income taxes | $ | 289 | $ | 158 | $ | 674 | $ | 391 |
(1) | Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. |
September 30, | December 31, | ||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Management and franchise | $ | 10,870 | $ | 10,825 | |||
Ownership | 989 | 1,032 | |||||
Corporate and other | 2,364 | 2,529 | |||||
$ | 14,223 | $ | 14,386 |
Nine Months Ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
(in millions) | |||||||
Ownership | $ | 20 | $ | 34 | |||
Corporate and other | 16 | 8 | |||||
$ | 36 | $ | 42 |
September 30, 2017 | |||||||||||||||||||||||||||
Parent | HWF Issuers | HOC | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 1 | $ | 21 | $ | 648 | $ | — | $ | 670 | |||||||||||||
Restricted cash and cash equivalents | — | — | 87 | 10 | 29 | — | 126 | ||||||||||||||||||||
Accounts receivable, net | — | — | 15 | 629 | 284 | — | 928 | ||||||||||||||||||||
Intercompany receivables | — | — | — | — | 39 | (39 | ) | — | |||||||||||||||||||
Prepaid expenses | — | — | 6 | 54 | 71 | (1 | ) | 130 | |||||||||||||||||||
Income taxes receivable | — | — | — | 15 | — | (10 | ) | 5 | |||||||||||||||||||
Other | — | — | 1 | 15 | 30 | — | 46 | ||||||||||||||||||||
Total current assets | — | — | 110 | 744 | 1,101 | (50 | ) | 1,905 | |||||||||||||||||||
Intangibles and Other Assets: | |||||||||||||||||||||||||||
Investments in subsidiaries | 1,438 | 6,852 | 7,983 | 1,438 | — | (17,711 | ) | — | |||||||||||||||||||
Goodwill | — | — | — | 3,824 | 1,359 | — | 5,183 | ||||||||||||||||||||
Brands | — | — | — | 4,405 | 482 | — | 4,887 | ||||||||||||||||||||
Management and franchise contracts, net | — | — | — | 663 | 261 | — | 924 | ||||||||||||||||||||
Other intangible assets, net | — | — | — | 276 | 152 | — | 428 | ||||||||||||||||||||
Property and equipment, net | — | — | 17 | 64 | 265 | — | 346 | ||||||||||||||||||||
Deferred income tax assets | 9 | 3 | 166 | — | 90 | (186 | ) | 82 | |||||||||||||||||||
Other | — | 10 | 31 | 232 | 195 | — | 468 | ||||||||||||||||||||
Total intangibles and other assets | 1,447 | 6,865 | 8,197 | 10,902 | 2,804 | (17,897 | ) | 12,318 | |||||||||||||||||||
TOTAL ASSETS | $ | 1,447 | $ | 6,865 | $ | 8,307 | $ | 11,646 | $ | 3,905 | $ | (17,947 | ) | $ | 14,223 | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | — | $ | 41 | $ | 174 | $ | 1,224 | $ | 473 | $ | (1 | ) | $ | 1,911 | ||||||||||||
Intercompany payables | — | — | 39 | — | — | (39 | ) | — | |||||||||||||||||||
Current maturities of long-term debt | — | 32 | — | — | 17 | — | 49 | ||||||||||||||||||||
Income taxes payable | — | — | — | — | 83 | (10 | ) | 73 | |||||||||||||||||||
Total current liabilities | — | 73 | 213 | 1,224 | 573 | (50 | ) | 2,033 | |||||||||||||||||||
Long-term debt | — | 5,341 | 983 | — | 240 | — | 6,564 | ||||||||||||||||||||
Deferred revenues | — | — | — | 95 | — | — | 95 | ||||||||||||||||||||
Deferred income tax liabilities | — | — | — | 1,836 | — | (186 | ) | 1,650 | |||||||||||||||||||
Liability for guest loyalty program | — | — | — | 879 | — | — | 879 | ||||||||||||||||||||
Other | — | 13 | 259 | 564 | 718 | — | 1,554 | ||||||||||||||||||||
Total liabilities | — | 5,427 | 1,455 | 4,598 | 1,531 | (236 | ) | 12,775 | |||||||||||||||||||
Equity: | |||||||||||||||||||||||||||
Total Hilton stockholders' equity | 1,447 | 1,438 | 6,852 | 7,048 | 2,373 | (17,711 | ) | 1,447 | |||||||||||||||||||
Noncontrolling interests | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||
Total equity | 1,447 | 1,438 | 6,852 | 7,048 | 2,374 | (17,711 | ) | 1,448 | |||||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 1,447 | $ | 6,865 | $ | 8,307 | $ | 11,646 | $ | 3,905 | $ | (17,947 | ) | $ | 14,223 |
December 31, 2016 | |||||||||||||||||||||||||||
Parent | HWF Issuers | HOC | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 3 | $ | 22 | $ | 1,037 | $ | — | $ | 1,062 | |||||||||||||
Restricted cash and cash equivalents | — | — | 87 | 9 | 25 | — | 121 | ||||||||||||||||||||
Accounts receivable, net | — | — | 7 | 484 | 264 | — | 755 | ||||||||||||||||||||
Intercompany receivables | — | — | — | — | 42 | (42 | ) | — | |||||||||||||||||||
Prepaid expenses | — | — | 6 | 21 | 65 | (3 | ) | 89 | |||||||||||||||||||
Income taxes receivable | — | — | — | 30 | — | (17 | ) | 13 | |||||||||||||||||||
Other | — | — | 1 | 5 | 33 | — | 39 | ||||||||||||||||||||
Current assets of discontinued operations | — | — | — | — | 1,502 | (24 | ) | 1,478 | |||||||||||||||||||
Total current assets | — | — | 104 | 571 | 2,968 | (86 | ) | 3,557 | |||||||||||||||||||
Intangibles and Other Assets: | |||||||||||||||||||||||||||
Investments in subsidiaries | 5,889 | 11,300 | 12,583 | 5,889 | — | (35,661 | ) | — | |||||||||||||||||||
Goodwill | — | — | — | 3,824 | 1,394 | — | 5,218 | ||||||||||||||||||||
Brands | — | — | — | 4,404 | 444 | — | 4,848 | ||||||||||||||||||||
Management and franchise contracts, net | — | — | — | 716 | 247 | — | 963 | ||||||||||||||||||||
Other intangible assets, net | — | — | 1 | 296 | 150 | — | 447 | ||||||||||||||||||||
Property and equipment, net | — | — | 12 | 62 | 267 | — | 341 | ||||||||||||||||||||
Deferred income tax assets | 10 | 2 | 167 | — | 82 | (179 | ) | 82 | |||||||||||||||||||
Other | — | 12 | 30 | 213 | 153 | — | 408 | ||||||||||||||||||||
Non-current assets of discontinued operations | — | — | — | 12 | 10,345 | (10 | ) | 10,347 | |||||||||||||||||||
Total intangibles and other assets | 5,899 | 11,314 | 12,793 | 15,416 | 13,082 | (35,850 | ) | 22,654 | |||||||||||||||||||
TOTAL ASSETS | $ | 5,899 | $ | 11,314 | $ | 12,897 | $ | 15,987 | $ | 16,050 | $ | (35,936 | ) | $ | 26,211 | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | — | $ | 26 | $ | 293 | $ | 1,091 | $ | 414 | $ | (3 | ) | $ | 1,821 | ||||||||||||
Intercompany payables | — | — | 42 | — | — | (42 | ) | — | |||||||||||||||||||
Current maturities of long-term debt | — | 26 | — | — | 7 | — | 33 | ||||||||||||||||||||
Income taxes payable | — | — | — | — | 73 | (17 | ) | 56 | |||||||||||||||||||
Current liabilities of discontinued operations | — | — | — | 77 | 721 | (24 | ) | 774 | |||||||||||||||||||
Total current liabilities | — | 52 | 335 | 1,168 | 1,215 | (86 | ) | 2,684 | |||||||||||||||||||
Long-term debt | — | 5,361 | 981 | — | 241 | — | 6,583 | ||||||||||||||||||||
Deferred revenues | — | — | — | 42 | — | — | 42 | ||||||||||||||||||||
Deferred income tax liabilities | — | — | — | 1,919 | 38 | (179 | ) | 1,778 | |||||||||||||||||||
Liability for guest loyalty program | — | — | — | 889 | — | — | 889 | ||||||||||||||||||||
Other | — | 12 | 277 | 490 | 713 | — | 1,492 | ||||||||||||||||||||
Non-current liabilities of discontinued operations | — | — | 4 | — | 6,900 | (10 | ) | 6,894 | |||||||||||||||||||
Total liabilities | — | 5,425 | 1,597 | 4,508 | 9,107 | (275 | ) | 20,362 | |||||||||||||||||||
Equity: | |||||||||||||||||||||||||||
Total Hilton stockholders' equity | 5,899 | 5,889 | 11,300 | 11,479 | 6,993 | (35,661 | ) | 5,899 | |||||||||||||||||||
Noncontrolling interests | — | — | — | — | (50 | ) | — | (50 | ) | ||||||||||||||||||
Total equity | 5,899 | 5,889 | 11,300 | 11,479 | 6,943 | (35,661 | ) | 5,849 | |||||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 5,899 | $ | 11,314 | $ | 12,897 | $ | 15,987 | $ | 16,050 | $ | (35,936 | ) | $ | 26,211 |
Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Parent | HWF Issuers | HOC | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Franchise fees | $ | — | $ | — | $ | 35 | $ | 303 | $ | 39 | $ | (4 | ) | $ | 373 | ||||||||||||
Base and other management fees | — | — | 1 | 48 | 38 | — | 87 | ||||||||||||||||||||
Incentive management fees | — | — | — | 15 | 37 | — | 52 | ||||||||||||||||||||
Owned and leased hotels | — | — | — | — | 388 | — | 388 | ||||||||||||||||||||
Other revenues | — | — | — | 19 | 3 | (1 | ) | 21 | |||||||||||||||||||
— | — | 36 | 385 | 505 | (5 | ) | 921 | ||||||||||||||||||||
Other revenues from managed and franchised properties | — | — | 30 | 1,253 | 150 | — | 1,433 | ||||||||||||||||||||
Total revenues | — | — | 66 | 1,638 | 655 | (5 | ) | 2,354 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||||
Owned and leased hotels | — | — | — | — | 345 | — | 345 | ||||||||||||||||||||
Depreciation and amortization | — | — | 1 | 58 | 24 | — | 83 | ||||||||||||||||||||
General and administrative | — | — | 80 | — | 25 | (1 | ) | 104 | |||||||||||||||||||
Other expenses | — | — | — | 6 | 5 | (4 | ) | 7 | |||||||||||||||||||
— | — | 81 | 64 | 399 | (5 | ) | 539 | ||||||||||||||||||||
Other expenses from managed and franchised properties | — | — | 30 | 1,253 | 150 | — | 1,433 | ||||||||||||||||||||
Total expenses | — | — | 111 | 1,317 | 549 | (5 | ) | 1,972 | |||||||||||||||||||
Operating income (loss) | — | — | (45 | ) | 321 | 106 | — | 382 | |||||||||||||||||||
Interest expense | — | (60 | ) | (25 | ) | — | (16 | ) | 1 | (100 | ) | ||||||||||||||||
Gain (loss) on foreign currency transactions | — | — | (1 | ) | 48 | (45 | ) | — | 2 | ||||||||||||||||||
Other non-operating income (loss), net | — | (1 | ) | 1 | 2 | 4 | (1 | ) | 5 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries | — | (61 | ) | (70 | ) | 371 | 49 | — | 289 | ||||||||||||||||||
Income tax benefit (expense) | — | 24 | 24 | (141 | ) | (15 | ) | — | (108 | ) | |||||||||||||||||
Income (loss) from continuing operations before equity in earnings from subsidiaries | — | (37 | ) | (46 | ) | 230 | 34 | — | 181 | ||||||||||||||||||
Equity in earnings from subsidiaries | 179 | 216 | 262 | 179 | — | (836 | ) | — | |||||||||||||||||||
Net income | 179 | 179 | 216 | 409 | 34 | (836 | ) | 181 | |||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||
Net income attributable to Hilton stockholders | $ | 179 | $ | 179 | $ | 216 | $ | 409 | $ | 32 | $ | (836 | ) | $ | 179 | ||||||||||||
Comprehensive income | $ | 226 | $ | 182 | $ | 215 | $ | 409 | $ | 78 | $ | (883 | ) | $ | 227 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 226 | $ | 182 | $ | 215 | $ | 409 | $ | 77 | $ | (883 | ) | $ | 226 |
Three Months Ended September 30, 2016 | |||||||||||||||||||||||
Parent | HWF Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Franchise fees | $ | — | $ | — | $ | 284 | $ | 32 | $ | (2 | ) | $ | 314 | ||||||||||
Base and other management fees | — | — | 30 | 29 | — | 59 | |||||||||||||||||
Incentive management fees | — | — | 3 | 31 | — | 34 | |||||||||||||||||
Owned and leased hotels | — | — | — | 372 | — | 372 | |||||||||||||||||
Other revenues | — | — | 17 | 1 | — | 18 | |||||||||||||||||
— | — | 334 | 465 | (2 | ) | 797 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 941 | 129 | — | 1,070 | |||||||||||||||||
Total revenues | — | — | 1,275 | 594 | (2 | ) | 1,867 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | — | 325 | — | 325 | |||||||||||||||||
Depreciation and amortization | — | — | 68 | 22 | — | 90 | |||||||||||||||||
General and administrative | — | — | 84 | 23 | — | 107 | |||||||||||||||||
Other expenses | — | — | 7 | 5 | (2 | ) | 10 | ||||||||||||||||
— | — | 159 | 375 | (2 | ) | 532 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 941 | 129 | — | 1,070 | |||||||||||||||||
Total expenses | — | — | 1,100 | 504 | (2 | ) | 1,602 | ||||||||||||||||
Operating income | — | — | 175 | 90 | — | 265 | |||||||||||||||||
Interest expense | — | (65 | ) | (20 | ) | (12 | ) | — | (97 | ) | |||||||||||||
Gain (loss) on foreign currency transactions | — | — | (22 | ) | 12 | — | (10 | ) | |||||||||||||||
Other non-operating income (loss), net | — | (5 | ) | 4 | 1 | — | — | ||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries | — | (70 | ) | 137 | 91 | — | 158 | ||||||||||||||||
Income tax benefit (expense) | 1 | 27 | (54 | ) | (43 | ) | — | (69 | ) | ||||||||||||||
Income (loss) from continuing operations before equity in earnings from subsidiaries | 1 | (43 | ) | 83 | 48 | — | 89 | ||||||||||||||||
Equity in earnings from subsidiaries | 86 | 129 | 118 | — | (333 | ) | — | ||||||||||||||||
Income from continuing operations, net of taxes | 87 | 86 | 201 | 48 | (333 | ) | 89 | ||||||||||||||||
Income from discontinued operations, net of taxes | 100 | 100 | 100 | 104 | (301 | ) | 103 | ||||||||||||||||
Net income | 187 | 186 | 301 | 152 | (634 | ) | 192 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (5 | ) | — | (5 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 187 | $ | 186 | $ | 301 | $ | 147 | $ | (634 | ) | $ | 187 | ||||||||||
Comprehensive income | $ | 187 | $ | 189 | $ | 286 | $ | 165 | $ | (634 | ) | $ | 193 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 187 | $ | 189 | $ | 286 | $ | 159 | $ | (634 | ) | $ | 187 |
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Parent | HWF Issuers | HOC | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Franchise fees | $ | — | $ | — | $ | 103 | $ | 854 | $ | 95 | $ | (13 | ) | $ | 1,039 | ||||||||||||
Base and other management fees | — | — | 1 | 151 | 103 | — | 255 | ||||||||||||||||||||
Incentive management fees | — | — | — | 58 | 102 | — | 160 | ||||||||||||||||||||
Owned and leased hotels | — | — | — | — | 1,065 | — | 1,065 | ||||||||||||||||||||
Other revenues | — | — | 22 | 48 | 9 | (1 | ) | 78 | |||||||||||||||||||
— | — | 126 | 1,111 | 1,374 | (14 | ) | 2,597 | ||||||||||||||||||||
Other revenues from managed and franchised properties | — | — | 116 | 3,702 | 446 | — | 4,264 | ||||||||||||||||||||
Total revenues | — | — | 242 | 4,813 | 1,820 | (14 | ) | 6,861 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||||
Owned and leased hotels | — | — | — | — | 947 | — | 947 | ||||||||||||||||||||
Depreciation and amortization | — | — | 4 | 183 | 72 | — | 259 | ||||||||||||||||||||
General and administrative | — | — | 251 | — | 76 | (1 | ) | 326 | |||||||||||||||||||
Other expenses | — | — | 15 | 22 | 17 | (13 | ) | 41 | |||||||||||||||||||
— | — | 270 | 205 | 1,112 | (14 | ) | 1,573 | ||||||||||||||||||||
Other expenses from managed and franchised properties | — | — | 116 | 3,702 | 446 | — | 4,264 | ||||||||||||||||||||
Total expenses | — | — | 386 | 3,907 | 1,558 | (14 | ) | 5,837 | |||||||||||||||||||
Operating income (loss) | — | — | (144 | ) | 906 | 262 | — | 1,024 | |||||||||||||||||||
Interest expense | — | (183 | ) | (79 | ) | — | (43 | ) | 1 | (304 | ) | ||||||||||||||||
Gain (loss) on foreign currency transactions | — | — | 12 | 122 | (131 | ) | — | 3 | |||||||||||||||||||
Loss on debt extinguishment | — | (60 | ) | — | — | — | — | (60 | ) | ||||||||||||||||||
Other non-operating income (loss), net | — | (4 | ) | 4 | 6 | 6 | (1 | ) | 11 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries | — | (247 | ) | (207 | ) | 1,034 | 94 | — | 674 | ||||||||||||||||||
Income tax benefit (expense) | — | 97 | 76 | (396 | ) | (28 | ) | — | (251 | ) | |||||||||||||||||
Income (loss) from continuing operations before equity in earnings from subsidiaries | — | (150 | ) | (131 | ) | 638 | 66 | — | 423 | ||||||||||||||||||
Equity in earnings from subsidiaries | 419 | 569 | 700 | 419 | — | (2,107 | ) | — | |||||||||||||||||||
Net income | 419 | 419 | 569 | 1,057 | 66 | (2,107 | ) | 423 | |||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | (4 | ) | — | (4 | ) | ||||||||||||||||||
Net income attributable to Hilton stockholders | $ | 419 | $ | 419 | $ | 569 | $ | 1,057 | $ | 62 | $ | (2,107 | ) | $ | 419 | ||||||||||||
Comprehensive income | $ | 537 | $ | 415 | $ | 571 | $ | 1,058 | $ | 184 | $ | (2,225 | ) | $ | 540 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 537 | $ | 415 | $ | 571 | $ | 1,058 | $ | 181 | $ | (2,225 | ) | $ | 537 |
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Parent | HWF Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Franchise fees | $ | — | $ | — | $ | 802 | $ | 83 | $ | (7 | ) | $ | 878 | ||||||||||
Base and other management fees | — | — | 95 | 84 | — | 179 | |||||||||||||||||
Incentive management fees | — | — | 14 | 89 | — | 103 | |||||||||||||||||
Owned and leased hotels | — | — | — | 1,089 | — | 1,089 | |||||||||||||||||
Other revenues | — | — | 45 | 8 | — | 53 | |||||||||||||||||
— | — | 956 | 1,353 | (7 | ) | 2,302 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 2,858 | 383 | — | 3,241 | |||||||||||||||||
Total revenues | — | — | 3,814 | 1,736 | (7 | ) | 5,543 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | — | 981 | — | 981 | |||||||||||||||||
Depreciation and amortization | — | — | 204 | 69 | — | 273 | |||||||||||||||||
Impairment loss | — | — | — | 15 | — | 15 | |||||||||||||||||
General and administrative | — | — | 207 | 80 | — | 287 | |||||||||||||||||
Other expenses | — | — | 24 | 22 | (7 | ) | 39 | ||||||||||||||||
— | — | 435 | 1,167 | (7 | ) | 1,595 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 2,858 | 383 | — | 3,241 | |||||||||||||||||
Total expenses | — | — | 3,293 | 1,550 | (7 | ) | 4,836 | ||||||||||||||||
Gain on sales of assets, net | — | — | — | 1 | — | 1 | |||||||||||||||||
Operating income | — | — | 521 | 187 | — | 708 | |||||||||||||||||
Interest expense | — | (199 | ) | (51 | ) | (36 | ) | — | (286 | ) | |||||||||||||
Gain (loss) on foreign currency transactions | — | — | (86 | ) | 50 | — | (36 | ) | |||||||||||||||
Other non-operating income (loss), net | — | (5 | ) | 10 | — | — | 5 | ||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries | — | (204 | ) | 394 | 201 | — | 391 | ||||||||||||||||
Income tax benefit (expense) | 193 | 78 | (196 | ) | (86 | ) | — | (11 | ) | ||||||||||||||
Income (loss) from continuing operations before equity in earnings from subsidiaries | 193 | (126 | ) | 198 | 115 | — | 380 | ||||||||||||||||
Equity in earnings from subsidiaries | 182 | 308 | 182 | — | (672 | ) | — | ||||||||||||||||
Income from continuing operations, net of taxes | 375 | 182 | 380 | 115 | (672 | ) | 380 | ||||||||||||||||
Income from discontinued operations, net of taxes | 360 | 360 | 360 | 344 | (1,058 | ) | 366 | ||||||||||||||||
Net income | 735 | 542 | 740 | 459 | (1,730 | ) | 746 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (11 | ) | — | (11 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 735 | $ | 542 | $ | 740 | $ | 448 | $ | (1,730 | ) | $ | 735 | ||||||||||
Comprehensive income | $ | 693 | $ | 539 | $ | 686 | $ | 473 | $ | (1,688 | ) | $ | 703 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (10 | ) | — | (10 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 693 | $ | 539 | $ | 686 | $ | 463 | $ | (1,688 | ) | $ | 693 |
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Parent | HWF Issuers | HOC | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | (89 | ) | $ | (83 | ) | $ | 630 | $ | 188 | $ | — | $ | 646 | |||||||||||
Investing Activities: | |||||||||||||||||||||||||||
Capital expenditures for property and equipment | — | — | (8 | ) | (7 | ) | (21 | ) | — | (36 | ) | ||||||||||||||||
Contract acquisition costs | — | — | — | (27 | ) | (24 | ) | — | (51 | ) | |||||||||||||||||
Capitalized software costs | — | — | — | (45 | ) | — | — | (45 | ) | ||||||||||||||||||
Other | — | (13 | ) | — | (2 | ) | 4 | (3 | ) | (14 | ) | ||||||||||||||||
Net cash used in investing activities | — | (13 | ) | (8 | ) | (81 | ) | (41 | ) | (3 | ) | (146 | ) | ||||||||||||||
Financing Activities: | |||||||||||||||||||||||||||
Borrowings | — | 1,823 | — | — | — | — | 1,823 | ||||||||||||||||||||
Repayment of debt | — | (1,842 | ) | — | — | (6 | ) | — | (1,848 | ) | |||||||||||||||||
Debt issuance costs and redemption premium | — | (69 | ) | — | — | — | — | (69 | ) | ||||||||||||||||||
Repayment of intercompany borrowings | — | — | (3 | ) | — | — | 3 | — | |||||||||||||||||||
Intercompany transfers | 772 | 190 | 120 | (549 | ) | (533 | ) | — | |||||||||||||||||||
Dividends paid | (147 | ) | — | — | — | — | — | (147 | ) | ||||||||||||||||||
Cash transferred in spin-offs of Park and HGV | — | — | — | — | (501 | ) | — | (501 | ) | ||||||||||||||||||
Repurchases of common stock | (625 | ) | — | — | — | — | — | (625 | ) | ||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||
Tax withholdings on share-based compensation | — | — | (28 | ) | — | — | — | (28 | ) | ||||||||||||||||||
Net cash provided by (used in) financing activities | — | 102 | 89 | (549 | ) | (1,041 | ) | 3 | (1,396 | ) | |||||||||||||||||
Effect of exchange rate changes on cash, restricted cash and cash equivalents | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||
Net decrease in cash, restricted cash and cash equivalents | — | — | (2 | ) | — | (886 | ) | — | (888 | ) | |||||||||||||||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | — | — | 90 | 31 | 1,062 | — | 1,183 | ||||||||||||||||||||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | — | — | — | — | 501 | — | 501 | ||||||||||||||||||||
Cash, restricted cash and cash equivalents, beginning of period | — | — | 90 | 31 | 1,563 | — | 1,684 | ||||||||||||||||||||
Cash, restricted cash and cash equivalents, end of period | $ | — | $ | — | $ | 88 | $ | 31 | $ | 677 | $ | — | $ | 796 |
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Parent | HWF Issuers | HOC | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | (127 | ) | $ | — | $ | 264 | $ | 920 | $ | (88 | ) | $ | 969 | |||||||||||
Investing Activities: | |||||||||||||||||||||||||||
Capital expenditures for property and equipment | — | — | — | (3 | ) | (224 | ) | — | (227 | ) | |||||||||||||||||
Proceeds from asset dispositions | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||
Contract acquisition costs | — | — | — | (28 | ) | (7 | ) | — | (35 | ) | |||||||||||||||||
Capitalized software costs | — | — | — | (50 | ) | (6 | ) | — | (56 | ) | |||||||||||||||||
Other | — | — | — | (32 | ) | 3 | — | (29 | ) | ||||||||||||||||||
Net cash used in investing activities | — | — | — | (113 | ) | (233 | ) | — | (346 | ) | |||||||||||||||||
Financing Activities: | |||||||||||||||||||||||||||
Borrowings | — | — | 1,000 | — | — | — | 1,000 | ||||||||||||||||||||
Repayment of debt | — | (8 | ) | — | — | (1,086 | ) | — | (1,094 | ) | |||||||||||||||||
Debt issuance costs | — | (12 | ) | (20 | ) | — | (3 | ) | — | (35 | ) | ||||||||||||||||
Intercompany transfers | 207 | 147 | (890 | ) | (222 | ) | 758 | — | — | ||||||||||||||||||
Dividends paid | (207 | ) | — | — | — | — | — | (207 | ) | ||||||||||||||||||
Intercompany dividends | — | — | — | — | (88 | ) | 88 | — | |||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||||
Tax withholdings on share-based compensation | — | — | — | (13 | ) | — | — | (13 | ) | ||||||||||||||||||
Net cash provided by (used in) financing activities | — | 127 | 90 | (235 | ) | (425 | ) | 88 | (355 | ) | |||||||||||||||||
Effect of exchange rate changes on cash, restricted cash and cash equivalents | — | — | — | — | 7 | — | 7 | ||||||||||||||||||||
Net increase (decrease) in cash, restricted cash and cash equivalents | — | — | 90 | (84 | ) | 269 | — | 275 | |||||||||||||||||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | — | — | — | 109 | 524 | — | 633 | ||||||||||||||||||||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | — | — | — | — | 223 | — | 223 | ||||||||||||||||||||
Cash, restricted cash and cash equivalents, beginning of period | — | — | — | 109 | 747 | — | 856 | ||||||||||||||||||||
Cash, restricted cash and cash equivalents from continuing operations, end of period | — | — | 90 | 25 | 494 | — | 609 | ||||||||||||||||||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period | — | — | — | — | 522 | — | 522 | ||||||||||||||||||||
Cash, restricted cash and cash equivalents, end of period | $ | — | $ | — | $ | 90 | $ | 25 | $ | 1,016 | $ | — | $ | 1,131 |
• | EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; |
• | EBITDA and Adjusted EBITDA do not reflect our interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness; |
• | EBITDA and Adjusted EBITDA do not reflect our income tax expense or the cash requirements to pay our taxes; |
• | EBITDA and Adjusted EBITDA do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments; |
• | EBITDA and Adjusted EBITDA do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations; |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; and |
• | other companies in our industry may calculate EBITDA and Adjusted EBITDA differently, limiting their usefulness as comparative measures. |
Three Months Ended | Variance | Nine Months Ended | Variance | ||||||||||||
September 30, 2017 | 2017 vs. 2016 | September 30, 2017 | 2017 vs. 2016 | ||||||||||||
U.S. | |||||||||||||||
Occupancy | 79.8 | % | (0.4 | )% | pts. | 77.4 | % | — | % | pts. | |||||
ADR | $ | 147.43 | 0.5 | % | $ | 147.37 | 1.0 | % | |||||||
RevPAR | $ | 117.61 | (0.1 | )% | $ | 114.07 | 1.0 | % | |||||||
Americas (excluding U.S.) | |||||||||||||||
Occupancy | 76.6 | % | 1.6 | % | pts. | 72.5 | % | 2.2 | % | pts. | |||||
ADR | $ | 128.52 | 1.2 | % | $ | 124.49 | 1.8 | % | |||||||
RevPAR | $ | 98.46 | 3.4 | % | $ | 90.24 | 5.0 | % | |||||||
Europe | |||||||||||||||
Occupancy | 81.8 | % | 3.7 | % | pts. | 76.0 | % | 3.6 | % | pts. | |||||
ADR | $ | 148.74 | 3.2 | % | $ | 140.09 | 2.6 | % | |||||||
RevPAR | $ | 121.65 | 8.0 | % | $ | 106.42 | 7.6 | % | |||||||
MEA | |||||||||||||||
Occupancy | 69.9 | % | 5.4 | % | pts. | 65.9 | % | 4.8 | % | pts. | |||||
ADR | $ | 130.18 | (7.6 | )% | $ | 145.07 | (4.7 | )% | |||||||
RevPAR | $ | 90.93 | 0.2 | % | $ | 95.61 | 2.7 | % | |||||||
Asia Pacific | |||||||||||||||
Occupancy | 76.6 | % | 4.5 | % | pts. | 72.5 | % | 5.4 | % | pts. | |||||
ADR | $ | 139.93 | 1.9 | % | $ | 138.14 | (0.8 | )% | |||||||
RevPAR | $ | 107.23 | 8.3 | % | $ | 100.17 | 7.1 | % | |||||||
System-wide | |||||||||||||||
Occupancy | 79.3 | % | 0.5 | % | pts. | 76.4 | % | 1.0 | % | pts. | |||||
ADR | $ | 145.80 | 0.6 | % | $ | 145.00 | 0.8 | % | |||||||
RevPAR | $ | 115.68 | 1.3 | % | $ | 110.78 | 2.1 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions) | |||||||||||||||
Income from continuing operations, net of taxes | $ | 181 | $ | 89 | $ | 423 | $ | 380 | |||||||
Interest expense | 100 | 97 | 304 | 286 | |||||||||||
Income tax expense | 108 | 69 | 251 | 11 | |||||||||||
Depreciation and amortization | 83 | 90 | 259 | 273 | |||||||||||
EBITDA | 472 | 345 | 1,237 | 950 | |||||||||||
Gain on sales of assets, net | — | — | — | (1 | ) | ||||||||||
Loss (gain) on foreign currency transactions | (2 | ) | 10 | (3 | ) | 36 | |||||||||
Loss on debt extinguishment | — | — | 60 | — | |||||||||||
FF&E replacement reserve | 16 | 13 | 37 | 41 | |||||||||||
Share-based compensation expense | 32 | 23 | 91 | 62 | |||||||||||
Impairment loss | — | — | — | 15 | |||||||||||
Other adjustment items(1) | 6 | 24 | 45 | 39 | |||||||||||
Adjusted EBITDA | $ | 524 | $ | 415 | $ | 1,467 | $ | 1,142 |
(1) | Includes adjustments for severance and other items and, for the three and nine months ended September 30, 2017, also includes transaction costs. Transaction costs for the three and nine months ended September 30, 2016 are included in discontinued operations and, therefore, are excluded from the presentation above. |
Three Months Ended | Percent | Nine Months Ended | Percent | ||||||||||||||||
September 30, | Change | September 30, | Change | ||||||||||||||||
2017 | 2016 | 2017 vs. 2016 | 2017 | 2016 | 2017 vs. 2016 | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||
Franchise fees | $ | 373 | $ | 314 | 18.8 | $ | 1,039 | $ | 878 | 18.3 | |||||||||
Base and other management fees | $ | 87 | $ | 59 | 47.5 | $ | 255 | $ | 179 | 42.5 | |||||||||
Incentive management fees | 52 | 34 | 52.9 | 160 | 103 | 55.3 | |||||||||||||
Total management fees | $ | 139 | $ | 93 | 49.5 | $ | 415 | $ | 282 | 47.2 |
Three Months Ended | Percent | Nine Months Ended | Percent | ||||||||||||||||
September 30, | Change | September 30, | Change | ||||||||||||||||
2017 | 2016 | 2017 vs. 2016 | 2017 | 2016 | 2017 vs. 2016 | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||
Owned and leased hotels | $ | 388 | $ | 372 | 4.3 | $ | 1,065 | $ | 1,089 | (2.2) |
Three Months Ended | Percent | Nine Months Ended | Percent | ||||||||||||||||
September 30, | Change | September 30, | Change | ||||||||||||||||
2017 | 2016 | 2017 vs. 2016 | 2017 | 2016 | 2017 vs. 2016 | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||
Other revenues | $ | 21 | $ | 18 | 16.7 | $ | 78 | $ | 53 | 47.2 |
Three Months Ended | Percent | Nine Months Ended | Percent | ||||||||||||||||
September 30, | Change | September 30, | Change | ||||||||||||||||
2017 | 2016 | 2017 vs. 2016 | 2017 | 2016 | 2017 vs. 2016 | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||
Owned and leased hotels | $ | 345 | $ | 325 | 6.2 | $ | 947 | $ | 981 | (3.5) |
Three Months Ended | Percent | Nine Months Ended | Percent | ||||||||||||||||
September 30, | Change | September 30, | Change | ||||||||||||||||
2017 | 2016 | 2017 vs. 2016 | 2017 | 2016 | 2017 vs. 2016 | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||
Depreciation and amortization | $ | 83 | $ | 90 | (7.8) | $ | 259 | $ | 273 | (5.1) | |||||||||
General and administrative | 104 | 107 | (2.8) | 326 | 287 | 13.6 | |||||||||||||
Other expenses | 7 | 10 | (30.0) | 41 | 39 | 5.1 |
Three Months Ended | Percent | Nine Months Ended | Percent | ||||||||||||||||
September 30, | Change | September 30, | Change | ||||||||||||||||
2017 | 2016 | 2017 vs. 2016 | 2017 | 2016 | 2017 vs. 2016 | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||
Interest expense | $ | (100 | ) | $ | (97 | ) | 3.1 | $ | (304 | ) | $ | (286 | ) | 6.3 | |||||
Gain (loss) on foreign currency transactions | 2 | (10 | ) | NM(1) | 3 | (36 | ) | NM(1) | |||||||||||
Loss on debt extinguishment | — | — | NM(1) | (60 | ) | — | NM(1) | ||||||||||||
Other non-operating income, net | 5 | — | NM(1) | 11 | 5 | NM(1) | |||||||||||||
Income tax expense | (108 | ) | (69 | ) | 56.5 | (251 | ) | (11 | ) | NM(1) |
(1) | Fluctuation in terms of percentage change is not meaningful. |
Three Months Ended | Percent | Nine Months Ended | Percent | ||||||||||||||||
September 30, | Change | September 30, | Change | ||||||||||||||||
2017 | 2016 | 2017 vs. 2016 | 2017 | 2016 | 2017 vs. 2016 | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||
Revenues: | |||||||||||||||||||
Management and franchise(1) | $ | 524 | $ | 418 | 25.4 | $ | 1,483 | $ | 1,191 | 24.5 | |||||||||
Ownership | 388 | 372 | 4.3 | 1,065 | 1,089 | (2.2) | |||||||||||||
Segment revenues | 912 | 790 | 15.4 | 2,548 | 2,280 | 11.8 | |||||||||||||
Other revenues | 21 | 18 | 16.7 | 78 | 53 | 47.2 | |||||||||||||
Other revenues from managed and franchised properties | 1,433 | 1,070 | 33.9 | 4,264 | 3,241 | 31.6 | |||||||||||||
Intersegment fees elimination(1) | (12 | ) | (11 | ) | 9.1 | (29 | ) | (31 | ) | (6.5) | |||||||||
Total revenues | $ | 2,354 | $ | 1,867 | 26.1 | $ | 6,861 | $ | 5,543 | 23.8 | |||||||||
Operating Income(1): | |||||||||||||||||||
Management and franchise | $ | 524 | $ | 418 | 25.4 | $ | 1,483 | $ | 1,191 | 24.5 | |||||||||
Ownership | 31 | 36 | (13.9) | 89 | 77 | 15.6 | |||||||||||||
Segment operating income | $ | 555 | $ | 454 | 22.2 | $ | 1,572 | $ | 1,268 | 24.0 |
(1) | Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our unaudited condensed consolidated statements of operations. |
Nine Months Ended September 30, | Percent Change | ||||||||
2017 | 2016(1) | 2017 vs. 2016 | |||||||
(in millions) | |||||||||
Net cash provided by operating activities | $ | 646 | $ | 969 | (33.3) | ||||
Net cash used in investing activities | (146 | ) | (346 | ) | (57.8) | ||||
Net cash used in financing activities | (1,396 | ) | (355 | ) | NM(2) |
(1) | Includes the cash flows from operating activities, investing activities and financing activities of Hilton, Park and HGV. |
(2) | Fluctuation in terms of percentage change is not meaningful. |
Total Number of Shares Purchased | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Program(2) | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program(2) (in millions) | ||||||||||
July 1, 2017 to July 31, 2017 | 1,433,448 | $ | 62.16 | 1,433,448 | $ | 559 | |||||||
August 1, 2017 to August 31, 2017 | 1,769,069 | 62.30 | 1,769,069 | 449 | |||||||||
September 1, 2017 to September 30, 2017 | 1,119,169 | 66.06 | 1,119,169 | 375 | |||||||||
Total | 4,321,686 | 63.23 | 4,321,686 |
(1) | This price includes per share commissions paid for all share repurchases. |
(2) | In February 2017, our board of directors authorized a stock repurchase program of up to $1.0 billion of the Company's common stock. The repurchase program does not have an expiration date and may be suspended or discontinued at any time. |
Exhibit Number | Exhibit Description | |
3.1 | ||
3.2 | ||
3.3 | ||
10.1 | ||
12 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
HILTON WORLDWIDE HOLDINGS INC. | ||
By: | /s/ Christopher J. Nassetta | |
Name: | Christopher J. Nassetta | |
President and Chief Executive Officer | ||
By: | /s/ Kevin J. Jacobs | |
Name: | Kevin J. Jacobs | |
Executive Vice President and Chief Financial Officer |
Nine Months Ended | |||||||
September 30, | |||||||
2017 | 2016 | ||||||
Earnings: | |||||||
Income from continuing operations before income taxes | $ | 674 | $ | 391 | |||
Equity in earnings from unconsolidated affiliates | (2 | ) | (3 | ) | |||
672 | 388 | ||||||
Add: | |||||||
Fixed charges | 392 | 368 | |||||
Distributed income of equity method investees | 1 | 2 | |||||
Subtract: | |||||||
Interest capitalized | (1 | ) | (1 | ) | |||
Earnings available for fixed charges | $ | 1,064 | $ | 757 | |||
Fixed Charges: | |||||||
Interest expense(1) | $ | 304 | $ | 286 | |||
Interest capitalized | 1 | 1 | |||||
Estimated interest included in rent expense | 87 | 81 | |||||
Total Fixed Charges | $ | 392 | $ | 368 | |||
Ratio of Earnings to Fixed Charges | 2.7 | 2.1 |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 of Hilton Worldwide Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Christopher J. Nassetta |
Christopher J. Nassetta | |
President and Chief Executive Officer | |
(Principal Executive Officer) | |
October 26, 2017 |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 of Hilton Worldwide Holdings Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Kevin J. Jacobs |
Kevin J. Jacobs | |
Executive Vice President and Chief Financial Officer | |
(Principal Financial Officer) | |
October 26, 2017 |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ Christopher J. Nassetta |
Christopher J. Nassetta | |
President and Chief Executive Officer | |
(Principal Executive Officer) |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ Kevin J. Jacobs |
Kevin J. Jacobs | |
Executive Vice President and Chief Financial Officer | |
(Principal Financial Officer) |
Document and Entity Information Document - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Oct. 19, 2017 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | Hilton Worldwide Holdings Inc. | |
Entity Central Index Key | 0001585689 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Trading Symbol | hlt | |
Entity Common Stock, Shares Outstanding | 319,951,424 |
Condensed Consolidated Balance Sheets - USD ($) $ in Millions |
9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|||||||||||
Reverse stock split | 1-for-3 | |||||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | $ 670 | $ 1,062 | ||||||||||
Restricted cash and cash equivalents | 126 | 121 | ||||||||||
Accounts receivable, net of allowance for doubtful accounts | 928 | 755 | ||||||||||
Prepaid expenses | 130 | 89 | ||||||||||
Income taxes receivable | 5 | 13 | ||||||||||
Other | 46 | 39 | ||||||||||
Current assets of discontinued operations | 0 | 1,478 | ||||||||||
Total current assets | 1,905 | 3,557 | ||||||||||
Intangibles and Other Assets: | ||||||||||||
Goodwill | 5,183 | 5,218 | ||||||||||
Brands | [1],[2] | 4,887 | 4,848 | |||||||||
Management and franchise contracts, net | 924 | 963 | ||||||||||
Other intangible assets, net | 428 | 447 | ||||||||||
Property and equipment, net | 346 | 341 | ||||||||||
Deferred income tax assets | 82 | 82 | ||||||||||
Other | 468 | 408 | ||||||||||
Non-current assets of discontinued operations | 0 | 10,347 | ||||||||||
Total intangibles and other assets | 12,318 | 22,654 | ||||||||||
Total assets | 14,223 | 26,211 | ||||||||||
Current Liabilities: | ||||||||||||
Accounts payable, accrued expenses and other | 1,911 | 1,821 | ||||||||||
Current maturities of long-term debt | [3] | 49 | 33 | |||||||||
Income taxes payable | 73 | 56 | ||||||||||
Current liabilities of discontinued operations | 0 | 774 | ||||||||||
Total current liabilities | 2,033 | 2,684 | ||||||||||
Long-term debt | 6,564 | 6,583 | ||||||||||
Deferred revenues | 95 | 42 | ||||||||||
Deferred income tax liabilities | 1,650 | 1,778 | ||||||||||
Liability for guest loyalty program | 879 | 889 | ||||||||||
Other | 1,554 | 1,492 | ||||||||||
Non-current liabilities of discontinued operations | 0 | 6,894 | ||||||||||
Total liabilities | 12,775 | 20,362 | ||||||||||
Commitments and contingencies - see Note 14 | ||||||||||||
Equity: | ||||||||||||
Preferred Stock | 0 | 0 | ||||||||||
Common stock | 3 | 3 | [4] | |||||||||
Treasury stock, at cost | (625) | 0 | ||||||||||
Additional paid-in capital | 10,273 | 10,220 | [4] | |||||||||
Accumulated deficit | (7,384) | (3,323) | ||||||||||
Accumulated other comprehensive loss | (820) | (1,001) | ||||||||||
Total Hilton stockholders' equity | 1,447 | 5,899 | ||||||||||
Noncontrolling interests | 1 | (50) | ||||||||||
Total equity | 1,448 | 5,849 | ||||||||||
Total liabilities and equity | $ 14,223 | $ 26,211 | ||||||||||
|
Condensed Consolidated Statements of Operations - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|||||||
Revenues | ||||||||||
Franchise fees | $ 373 | $ 314 | $ 1,039 | $ 878 | ||||||
Base and other management fees | 87 | 59 | 255 | 179 | ||||||
Incentive management fees | 52 | 34 | 160 | 103 | ||||||
Owned and leased hotels | 388 | 372 | 1,065 | 1,089 | ||||||
Other revenues | 21 | 18 | 78 | 53 | ||||||
Total revenues excluding reimburseable revenues | 921 | 797 | 2,597 | 2,302 | ||||||
Other revenues from managed and franchised properties | 1,433 | 1,070 | 4,264 | 3,241 | ||||||
Total revenues | 2,354 | 1,867 | 6,861 | 5,543 | ||||||
Expenses | ||||||||||
Owned and leased hotels | 345 | 325 | 947 | 981 | ||||||
Depreciation and amortization | 83 | 90 | 259 | 273 | ||||||
Impairment loss | 0 | 0 | 0 | 15 | ||||||
General and administrative | 104 | 107 | 326 | 287 | ||||||
Other expenses | 7 | 10 | 41 | 39 | ||||||
Total expenses excluding reimbursable expenses | 539 | 532 | 1,573 | 1,595 | ||||||
Other expenses from managed and franchised properties | 1,433 | 1,070 | 4,264 | 3,241 | ||||||
Total expenses | 1,972 | 1,602 | 5,837 | 4,836 | ||||||
Gain on sales of assets, net | 0 | 0 | 0 | 1 | ||||||
Operating income | 382 | 265 | 1,024 | 708 | ||||||
Interest expense | (100) | (97) | (304) | (286) | ||||||
Gain (loss) on foreign currency transactions | 2 | (10) | 3 | (36) | ||||||
Loss on debt extinguishment | 0 | 0 | (60) | 0 | ||||||
Other non-operating income, net | 5 | 0 | 11 | 5 | ||||||
Income from continuing operations before income taxes | 289 | 158 | 674 | 391 | ||||||
Income tax expense | (108) | (69) | (251) | (11) | ||||||
Income from continuing operations, net of taxes | 181 | 89 | 423 | 380 | ||||||
Income from discontinued operations, net of taxes | 0 | 103 | 0 | 366 | ||||||
Net income | 181 | 192 | 423 | 746 | ||||||
Net income attributable to noncontrolling interests | (2) | (5) | (4) | (11) | ||||||
Net income attributable to Hilton stockholders | $ 179 | $ 187 | $ 419 | $ 735 | ||||||
Earnings per share, basic | ||||||||||
Net income from continuing operations per share | $ 0.56 | $ 0.27 | [1] | $ 1.29 | $ 1.14 | [1] | ||||
Net income from discontinued operations per share | 0.00 | 0.30 | [1] | 0.00 | 1.09 | [1] | ||||
Net income per share | 0.56 | 0.57 | [2] | 1.29 | 2.23 | [1] | ||||
Earnings per share, diluted | ||||||||||
Net income from continuing operations per share | 0.55 | 0.27 | [1] | 1.28 | 1.14 | [1] | ||||
Net income from discontinued operations per share | 0.00 | 0.30 | [1] | 0.00 | 1.09 | [1] | ||||
Net income per share | 0.55 | 0.57 | [1] | 1.28 | 2.23 | [1] | ||||
Cash dividends declared per share | $ 0.15 | $ 0.21 | [1] | $ 0.45 | $ 0.63 | [1] | ||||
Reverse stock split | 1-for-3 | |||||||||
|
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 181 | $ 192 | $ 423 | $ 746 |
Other comprehensive income (loss), net of tax benefit (expense): | ||||
Currency translation adjustment | 43 | (2) | 117 | (42) |
Pension liability adjustment | 0 | 0 | 4 | 2 |
Cash flow hedge adjustment | 3 | 3 | (4) | (3) |
Total other comprehensive income (loss) | 46 | 1 | 117 | (43) |
Comprehensive income | 227 | 193 | 540 | 703 |
Comprehensive income attributable to noncontrolling interests | (1) | (6) | (3) | (10) |
Comprehensive income attributable to Hilton stockholders | $ 226 | $ 187 | $ 537 | $ 693 |
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Currency translation adjustment, tax | $ 0 | $ 1 | $ 1 | $ (14) |
Pension liability adjustment, tax | (1) | (1) | (2) | (2) |
Cash flow hedge adjustment, tax | $ (2) | $ (1) | $ 2 | $ 3 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Operating Activities: | ||
Net income | $ 423 | $ 746 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization, including discontinued operations | 259 | 509 |
Impairment loss | 0 | 15 |
Gain on sales of assets, net, including discontinued operations | 0 | (2) |
Loss (gain) on foreign currency transactions, including discontinued operations | 3 | (33) |
Loss on debt extinguishment | 60 | 0 |
Share-based compensation | 56 | 50 |
Deferred income taxes, including discontinued operations | (123) | (147) |
Working capital changes and other | (26) | (235) |
Net cash provided by operating activities | 646 | 969 |
Investing Activities: | ||
Capital expenditures for property and equipment | (36) | (227) |
Proceeds from asset dispositions | 0 | 1 |
Contract acquisition costs | (51) | (35) |
Capitalized software costs | (45) | (56) |
Other | (14) | (29) |
Net cash used in investing activities | (146) | (346) |
Financing Activities: | ||
Borrowings | 1,823 | 1,000 |
Repayment of debt | (1,848) | (1,094) |
Debt issuance costs and redemption premium | (69) | (35) |
Dividends paid | (147) | (207) |
Cash transferred in spin-offs of Park and HGV | (501) | 0 |
Repurchases of common stock | (625) | 0 |
Distributions to noncontrolling interests | (1) | (6) |
Tax withholdings on share-based compensation | (28) | (13) |
Net cash used in financing activities | 1,396 | 355 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 8 | 7 |
Net increase (decrease) in cash, restricted cash and cash equivalents | (888) | 275 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,183 | 633 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 |
Cash, restricted cash and cash equivalents, beginning of period | 1,684 | 856 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 796 | 609 |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 522 |
Cash, restricted cash and cash equivalents, end of period | 796 | 1,131 |
Supplemental Disclosures: | ||
Interest | 225 | 341 |
Income taxes, net of refunds | 377 | 476 |
Conversion of Park's property and equipment to timeshare inventory of HGV (investing activities) | 0 | (79) |
Non-cash spin-offs of Park and HGV (financing activities) | $ 29 | $ 0 |
Organization and Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts, including timeshare properties. As of September 30, 2017, we managed, franchised, owned or leased 5,168 hotels and resorts, totaling 837,692 rooms in 103 countries and territories. In March 2017, HNA Tourism Group Co., Ltd. and certain of its affiliates (together, "HNA") acquired 82.5 million shares of Hilton common stock from affiliates of The Blackstone Group L.P. ("Blackstone"). As of September 30, 2017, HNA and Blackstone beneficially owned approximately 25.7 percent and 10.2 percent of our common stock, respectively. See Note 16: Subsequent Events for the reduction of Blackstone's beneficial ownership in Hilton following their offering of Hilton common stock in October 2017. Spin-offs On January 3, 2017, we completed the spin-offs of a portfolio of hotels and resorts, as well as our timeshare business, into two independent, publicly traded companies: Park Hotels & Resorts Inc. ("Park") and Hilton Grand Vacations Inc. ("HGV"), respectively, (the "spin-offs"). See Note 3: "Discontinued Operations" for additional information. Reverse Stock Split On January 3, 2017, we completed a 1-for-3 reverse stock split of Hilton's outstanding common stock (the "Reverse Stock Split"). All share and share-related information presented for periods prior to January 3, 2017 have been retrospectively adjusted to reflect the decreased number of shares resulting from the Reverse Stock Split. The retrospective adjustments resulted in the reclassification of $7 million from common stock to additional paid-in capital in the condensed consolidated balance sheets for all periods presented prior to the date of the Reverse Stock Split. Basis of Presentation The accompanying condensed consolidated financial statements for the three and nine months ended September 30, 2017 and 2016 have been prepared in accordance with United States of America ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe the disclosures made are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto incorporated by reference in Item 8.01 of our Current Report on Form 8-K dated July 26, 2017. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Additionally, interim results are not necessarily indicative of full year performance. These condensed consolidated financial statements present the condensed consolidated financial position of Hilton as of September 30, 2017 and December 31, 2016 and the results of operations of Hilton for the three and nine months ended September 30, 2017 and 2016 giving effect to the spin-offs, with the historical financial results of Park and HGV reflected as discontinued operations. Unless otherwise indicated, the information in the notes to the condensed consolidated financial statements refer only to Hilton's continuing operations and do not include discussion of balances or activity of Park or HGV. Principles of Consolidation In our opinion, the accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions have been eliminated in consolidation. Reclassifications Certain amounts in previously issued financial statements have been reclassified to conform to the presentation following the spin-offs, which includes the reclassification of the financial position and results of operations of Park and HGV as discontinued operations as of December 31, 2016 and for the three and nine months ended September 30, 2016. Additionally, certain line items in the condensed consolidated statements of operations have been revised to reflect the operating structure of Hilton subsequent to the spin-offs. The primary change to the condensed consolidated statements of operations is the disaggregation of management and franchise fee revenues. |
Recently Issued Accounting Pronouncements |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04 ("ASU 2017-04"), Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies the subsequent measurement of goodwill by removing Step 2 from the goodwill impairment test. We elected, as permitted by the standard, to early adopt ASU 2017-04 on a prospective basis as of January 1, 2017. The adoption did not have a material effect on our condensed consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 ("ASU 2016-09"), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory withholding requirements, as well as to clarify the classification in the statement of cash flows. We adopted ASU 2016-09 as of January 1, 2017. One of the provisions of this ASU requires entities to make an accounting policy election with respect to forfeitures of share-based payment awards, and we elected to account for forfeitures as they occur and adopted this provision of ASU 2016-09 using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of January 1, 2017 of approximately $1 million. Additionally, we have applied the provisions of this ASU on a retrospective basis in our condensed consolidated statements of cash flows, which includes presenting: (i) excess tax benefits as an operating activity, which were previously presented as a financing activity; and (ii) cash payments to tax authorities for employee taxes when shares are withheld to meet statutory withholding requirements as a financing activity, which were previously presented as an operating activity. Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02 ("ASU 2016-02"), Leases (Topic 842), which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position as right-of-use assets and lease liabilities by lessees. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach and are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. We are currently evaluating the effect that this ASU will have on our consolidated financial statements, but we expect this ASU to have a material effect on our consolidated balance sheet. In May 2014, the FASB issued ASU No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) and requires entities to recognize revenue when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. Subsequent to ASU 2014-09, the FASB issued several related ASUs to clarify the application of the new revenue recognition standard. The provisions of ASU 2014-09 and the related ASUs are effective for reporting periods beginning after December 15, 2017; early adoption is permitted. ASU 2014-09 permits two transition approaches: retrospective or modified retrospective. We currently expect to implement this ASU using the retrospective approach. We anticipate that ASU 2014-09 and the related ASUs will have a material effect on our consolidated financial statements. However, revenue recognition related to our accounting for ongoing royalty and management fee revenues, direct reimbursable fees from our management and franchise agreements and hotel guest transactions at our owned and leased hotels will remain substantially unchanged. While we are continuing to assess all other potential effects of the standard, we currently believe the provisions of ASU 2014-09 and the related ASUs will affect revenue recognition as follows: (i) application and initiation fees for new hotels entering the system will be recognized over the term of the franchise agreement, rather than upon execution of the agreement; (ii) certain contract acquisition costs related to our management and franchise agreements will be recognized over the term of the agreements as a reduction to revenue, instead of as amortization expense; (iii) incentive management fees will be recognized to the extent that it is probable that a significant reversal will not occur as a result of future hotel profits or cash flows, as opposed to recognizing amounts that would be due if the management agreement was terminated at the end of the reporting period; (iv) revenue related to our guest loyalty program will be deferred as points are awarded and recognized upon point redemption, net of any reward reimbursement paid to a third party, as opposed to recognized on a gross basis at the time points are issued in conjunction with the accrual of the expected future cost of the reward reimbursement; and (v) indirect reimbursable fees related to our management and franchise agreements will be recognized as they are earned. We do not expect the changes in revenue recognition for contract acquisition costs to affect the Company's net income, nor do we expect incentive management fees to affect the Company’s net income for any full year period. We continue to update our assessment of the effect that ASU 2014-09 and the related ASUs will have on our consolidated financial statements, and we will disclose further material effects, if any, in our Annual Report on From 10-K for the fiscal year ended December 31, 2017. |
Discontinued Operations (Notes) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations On January 3, 2017, we completed the spin-offs of Park and HGV via a pro rata distribution to each of Hilton's stockholders of record, as of close of business on December 15, 2016, of 100 percent of the outstanding common stock of each of Park and HGV (the "Distribution"). Each Hilton stockholder of record received one share of Park common stock for every five shares of Hilton common stock and one share of HGV common stock for every ten shares of Hilton common stock. Following the spin-offs, Hilton did not retain any ownership interest in Park or HGV. Both Park and HGV have their common stock listed on the New York Stock Exchange under the symbols "PK" and "HGV," respectively. In connection with the spin-offs, on January 2, 2017, Hilton entered into several agreements with Park and HGV that govern Hilton’s relationship with them following the Distribution including: (i) a Distribution Agreement; (ii) an Employee Matters Agreement; (iii) a Tax Matters Agreement; (iv) a Transition Services Agreement ("TSA"); (v) a License Agreement with HGV; (vi) a Tax Stockholders Agreement; and (vii) management and franchise agreements with Park. Under the TSA with Park and HGV, Hilton or one of its affiliates provides Park and HGV certain services for a period of two years from the date of the TSA to facilitate an orderly transition following the Distribution. The services that Hilton agreed to provide under the TSA include: finance; information technology; human resources and compensation; facilities; legal and compliance; and other services. The entity providing the services is compensated for any such services at agreed amounts as set forth in the TSA. The License Agreement with HGV granted HGV the exclusive right, for an initial term of 100 years, to use certain Hilton marks and intellectual property in its timeshare business, subject to the terms and conditions of the agreement. HGV pays a royalty fee of five percent of gross revenues, as defined in the agreement, to Hilton quarterly in arrears, as well as specified additional fees and reimbursements. Additionally, during the term of the License Agreement, HGV will participate in Hilton’s guest loyalty program, Hilton Honors. Under the management and franchise agreements with Park, Park pays agreed upon fees for various services that Hilton provides to support the operations of their hotels, as well as royalty fees for the licensing of Hilton's hotel brands. The terms of the management agreements generally include a base management fee, calculated as three percent of gross hotel revenues or receipts, and an incentive management fee, calculated as six percent of a specified measure of hotel earnings as determined in accordance with the applicable management agreement. Additionally, payroll and related costs, certain other operating costs, marketing expenses and other expenses associated with Hilton's brands and shared services are directly reimbursed to Hilton by Park pursuant to the terms of the management and franchise agreements. Financial Information During the three and nine months ended September 30, 2017, we recognized $37 million and $119 million, respectively, of management and franchise fees for properties that were transferred to Park upon completion of the spin-offs and $22 million and $65 million, respectively, of license fees from HGV. Prior to the spin-offs, the results of Park were reported in our ownership segment and the results of HGV were reported in our timeshare segment. Following the spin-offs, we no longer report a timeshare segment, as we no longer have timeshare operations. The following table presents the assets and liabilities of Park and HGV that were included in discontinued operations in our condensed consolidated balance sheet:
The following table presents the results of operations of Park and HGV that were included in discontinued operations in our condensed consolidated statements of operations:
The following table presents selected financial information of Park and HGV that was included in our condensed consolidated statement of cash flows:
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Consolidated Variable Interest Entities |
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Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of September 30, 2017 and December 31, 2016, we consolidated three variable interest entities ("VIEs"): two entities that leased hotel properties and one management company. We are the primary beneficiaries of these consolidated VIEs as we have the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our VIEs are only available to settle the obligations of the respective entities. Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following:
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During the nine months ended September 30, 2017 and 2016, we did not provide any financial or other support to any VIEs that we were not previously contractually required to provide, nor do we intend to provide such support in the future. |
Goodwill and Intangible Assets (Notes) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Our goodwill balances, by reporting unit, were as follows:
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Intangible Assets Intangible assets were as follows:
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We recorded amortization expense for our amortizing intangible assets of $69 million and $79 million for the three months ended September 30, 2017 and 2016, respectively, and $214 million and $234 million for the nine months ended September 30, 2017 and 2016, respectively. We estimated our future amortization expense for our amortizing intangible assets as of September 30, 2017 to be as follows:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Long-term Debt Long-term debt balances, including obligations for capital leases, and associated interest rates as of September 30, 2017, were as follows:
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Senior Notes In March 2017, we issued $900 million aggregate principal amount of 4.625% Senior Notes due 2025 (the "2025 Senior Notes") and $600 million aggregate principal amount of 4.875% Senior Notes due 2027 (the "2027 Senior Notes"), and incurred $21 million of debt issuance costs. Interest on the 2025 Senior Notes and the 2027 Senior Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning in October 2017. We used the net proceeds of the 2025 Senior Notes and the 2027 Senior Notes, along with available cash, to redeem in full our $1.5 billion 5.625% Senior Notes due 2021 (the "2021 Senior Notes"), plus accrued and unpaid interest. In connection with the repayment, we paid a redemption premium of $42 million and accelerated the recognition of $18 million of unamortized debt issuance costs, which were included in loss on debt extinguishment in our condensed consolidated statement of operations for the nine months ended September 30, 2017. The 4.25% Senior Notes due 2024 (the "2024 Senior Notes"), the 2025 Senior Notes and the 2027 Senior Notes are guaranteed on a senior unsecured basis by Hilton and certain of its wholly owned subsidiaries. See Note 15: "Condensed Consolidating Guarantor Financial Information" for additional details. Senior Secured Credit Facility Our senior secured credit facility consists of a $1.0 billion senior secured revolving credit facility (the "Revolving Credit Facility") and a senior secured term loan facility (the "Term Loans"). In March 2017, we amended the Term Loans pursuant to which $750 million of outstanding Term Loans due in 2020 were extended, aligning their maturity with the $3,209 million tranche of Term Loans due 2023. Additionally, concurrent with the extension, the entire balance of the Term Loans was repriced with an interest rate of LIBOR plus 200 basis points. In connection with the refinancing and modification of the Term Loans, we incurred $3 million of debt issuance costs, which were included in other non-operating income, net, in our condensed consolidated statement of operations for the nine months ended September 30, 2017. As of September 30, 2017, we had $18 million of letters of credit outstanding under our Revolving Credit Facility and a borrowing capacity of $982 million. Debt Maturities The contractual maturities of our long-term debt as of September 30, 2017 were as follows:
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities During the nine months ended September 30, 2017 and 2016, derivatives were used to hedge the interest rate risk associated with variable-rate debt, as well as foreign exchange risk associated with certain foreign currency denominated cash balances. During the nine months ended September 30, 2017, derivatives were also used to hedge the foreign exchange risk associated with management and franchise fees. Cash Flow Hedges In May 2017, we began hedging foreign exchange-based cash flow variability in certain of our foreign currency denominated management and franchise fees using forward contracts (the "Fee Forward Contracts"). We elected to designate these Fee Forward Contracts as cash flow hedges for accounting purposes, and we record the change in fair value of the effective portions of these contracts in other comprehensive income (loss) until an individual contract matures. The effective portion of the hedges are reclassified from accumulated other comprehensive loss to earnings in our condensed consolidated statement of operations in the same period that the fee revenue is earned. As of September 30, 2017, the Fee Forward Contracts had an aggregate notional amount of $22 million and maturities of 24 months or less. In March 2017, we entered into two interest rate swap agreements with notional amounts of $1.6 billion and $750 million, which swap one-month LIBOR on the Term Loans to fixed rates of 1.98 percent and 2.02 percent, respectively, and expire in March 2022. We elected to designate these interest rate swaps as cash flow hedges for accounting purposes. Non-designated Hedges As of September 30, 2017, we held short-term forward contracts with an aggregate notional amount of $284 million to offset exposure to fluctuations in certain of our foreign currency denominated cash balances. We elected not to designate these forward contracts as hedging instruments. In August and September 2016, we dedesignated four interest rate swaps (the "2013 Interest Rate Swaps") that were previously designated as cash flow hedges as they no longer met the criteria for hedge accounting. These interest rate swaps, which had an aggregate notional amount of $1.45 billion and swapped three-month LIBOR on the Term Loans to a fixed rate of 1.87 percent, were settled in March 2017. Fair Value of Derivative Instruments We measure our derivative instruments at fair value, which is estimated using a discounted cash flow analysis, and we consider the inputs used to measure the fair value as Level 2 within the fair value hierarchy. The discounted cash flow analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves and spot and forward rates, as applicable, as well as option volatility. The fair values of our derivative instruments in our condensed consolidated balance sheets were as follows:
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Earnings Effect of Derivative Instruments The gains and losses recognized in our condensed consolidated statements of operations and condensed consolidated statements of comprehensive income before any effect for income taxes were as follows:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below, see Note 7: "Derivative Instruments and Hedging Activities" for the fair value information of our derivatives:
The fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of September 30, 2017 and December 31, 2016. Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. Cash equivalents and restricted cash equivalents primarily consisted of short-term interest-bearing money market funds with maturities of less than 90 days and time deposits. The estimated fair values were based on available market pricing information of similar financial instruments. The estimated fair values of our Level 1 long-term debt were based on prices in active debt markets. The estimated fair values of our Level 3 long-term debt were based on indicative quotes received for similar issuances. |
Income Taxes |
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Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At the end of each quarter, we estimate the effective income tax rate expected to be applied for the full year. The effective income tax rate is determined by the level and composition of pre-tax income or loss, which is subject to federal, foreign, state and local income taxes. Our total unrecognized tax benefits as of September 30, 2017 were $165 million. We accrued approximately $33 million for the payment of interest and penalties as of September 30, 2017. Included in the balance of unrecognized tax benefits as of September 30, 2017 was $161 million associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate. In April 2014, we received 30-day Letters from the Internal Revenue Service ("IRS") and the Revenue Agents Report ("RAR") for the 2006 and October 2007 tax years. We disagreed with several of the proposed adjustments in the RAR, filed a formal appeals protest with the IRS and did not make any tax payments related to this audit. The issues being protested in appeals relate to assertions by the IRS that: (i) certain foreign currency denominated intercompany loans from our foreign subsidiaries to certain U.S. subsidiaries should be recharacterized as equity for U.S. federal income tax purposes and constitute deemed dividends from such foreign subsidiaries to our U.S. subsidiaries; (ii) in calculating the amount of U.S. taxable income resulting from our Hilton Honors guest loyalty program, we should not reduce gross income by the estimated costs of future redemptions, but rather such costs would be deductible at the time the points are redeemed; and (iii) certain foreign currency denominated loans issued by one of our Luxembourg subsidiaries whose functional currency is the U.S. dollar ("USD"), should instead be treated as issued by one of our Belgian subsidiaries whose functional currency is the euro, and thus foreign currency gains and losses with respect to such loans should have been measured in euros, instead of USD. Additionally, in January 2016, we received a 30-day Letter from the IRS and the RAR for the December 2007 through 2010 tax years. The RAR includes the proposed adjustments for tax years December 2007 through 2010, which reflect the carryover effect of the three protested issues from 2006 through October 2007. These proposed adjustments will also be protested in appeals and formal appeals protests have been submitted. In total, the proposed adjustments sought by the IRS would result in additional U.S. federal tax owed of approximately $874 million, excluding interest and penalties and potential state income taxes. The portion of this amount related to Hilton Honors would result in a decrease to our future tax liability when the points are redeemed. We disagree with the IRS's position on each of these assertions and intend to vigorously contest them. However, based on continuing appeals process discussions with the IRS, we believe that it is more likely than not that we will not recognize the full benefit related to certain of the issues being appealed. Accordingly, we have recorded $48 million of unrecognized tax benefits related to these issues. We file income tax returns, including returns for our subsidiaries, with federal, state, local and foreign tax jurisdictions. We are under regular and recurring audit by the IRS and other taxing authorities on open tax positions. The timing of the resolution of tax audits is highly uncertain, as are the amounts, if any, that may ultimately be paid upon such resolution. Changes may result from the conclusion of ongoing audits, appeals or litigation in federal, state, local and foreign tax jurisdictions or from the resolution of various proceedings between the U.S. and foreign tax authorities. We are no longer subject to U.S. federal income tax examination for years through 2004. As of September 30, 2017, we remain subject to federal examinations from 2005 through 2015, state examinations from 2005 through 2016 and foreign examinations of our income tax returns for the years 1996 through 2016. State income tax returns are generally subject to examination for a period of three to five years after filing the respective return; however, the state effect of any federal tax return changes remains subject to examination by various states for a period generally of up to one year after formal notification to the states. The statute of limitations for the foreign jurisdictions generally ranges from three to ten years after filing the respective tax return. |
Share-Based Compensation |
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Share-Based Compensation | Share-Based Compensation During the nine months ended September 30, 2017, we issued time-vesting restricted stock units and restricted stock (collectively, "RSUs"), nonqualified stock options ("options") and performance-vesting restricted stock units and restricted stock (collectively, "performance shares") to our employees and deferred share units ("DSUs") to members of our board of directors under our 2013 and 2017 Omnibus Incentive Plans. We recognized share-based compensation expense of $32 million and $23 million during the three months ended September 30, 2017 and 2016, respectively, and $91 million and $62 million during the nine months ended September 30, 2017 and 2016, respectively, which included amounts reimbursed by hotel owners. As of September 30, 2017, unrecognized compensation costs for unvested awards was approximately $135 million, which are expected to be recognized over a weighted-average period of 1.9 years on a straight-line basis. As of September 30, 2017, there were 17,970,113 shares of common stock available for future issuance under our 2017 Omnibus Incentive Plan, plus any shares subject to awards outstanding under our 2013 Omnibus Incentive Plan, which will become available for issuance under our 2017 Omnibus Incentive Plan as a result of such outstanding awards expiring or terminating or being canceled or forfeited. All share and share-related information presented for periods prior to January 3, 2017 have been adjusted to reflect the Reverse Stock Split. See Note 1: "Organization and Basis of Presentation" for additional information. Effect of the Spin-offs on Equity Awards In connection with the spin-offs, the outstanding share-based compensation awards held by employees transferring to Park and HGV were converted to equity awards in Park and HGV common stock, respectively. Share-based compensation awards of employees remaining at Hilton were adjusted using a conversion factor in accordance with the anti-dilution provisions of the 2013 Omnibus Incentive Plan with the intent to preserve the intrinsic value of the original awards (the "Conversion Factor"). The adjustments were determined by comparing the fair value of such awards immediately prior to the spin-offs to the fair value of such awards immediately after the spin-offs. The comparison resulted in no incremental compensation expense. Equity awards that were adjusted generally remain subject to the same vesting, expiration and other terms and conditions as applied to the awards immediately prior to the spin-offs. RSUs The following table summarizes the activity of our RSUs during the nine months ended September 30, 2017:
____________
The RSUs granted during the nine months ended September 30, 2017 generally vest in equal annual installments over two or three years from the date of grant. Options The following table summarizes the activity of our options during the nine months ended September 30, 2017:
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The options granted during the nine months ended September 30, 2017 vest over three years from the date of grant and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances. The weighted average grant date fair value of the options granted during the nine months ended September 30, 2017 was $13.96, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:
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Performance Shares As of December 31, 2016, we had outstanding performance awards based on a measure of the Company’s total shareholder return relative to the total shareholder returns of members of a peer company group ("relative shareholder return") and based on the Company’s earnings before interest expense, income taxes and depreciation and amortization ("EBITDA") compound annual growth rate ("CAGR"). Upon completion of the spin-offs, we converted all 671,604 outstanding performance shares to RSUs based on a 100 percent achievement percentage with the same vesting periods as the original awards. During the nine months ended September 30, 2017, we issued performance shares with 50 percent of the shares subject to achievement based on the Company's EBITDA CAGR and the other 50 percent of the shares subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR ("FCF CAGR"). The performance shares are settled at the end of the three-year performance period. We determined that the performance condition for these awards is probable of achievement and, as of September 30, 2017, we recognized compensation expense based on the anticipated achievement percentage of 200 percent and 100 percent for the performance awards based on EBITDA CAGR and FCF CAGR, respectively. As of September 30, 2017, there were no outstanding performance shares based on relative shareholder return. The following table summarizes the activity of our performance shares during the nine months ended September 30, 2017:
DSUs During the nine months ended September 30, 2017, we issued to our independent directors 15,288 DSUs with a weighted average grant date fair value of $65.39, which are fully vested and non-forfeitable on the grant date. DSUs are settled for shares of our common stock and deliverable upon the earlier of termination of the individual's service on our board of directors or a change in control. |
Stockholders' Equity and Accumulated Other Comprehensive Loss |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Accumulated Other Comprehensive Loss | Stockholders' Equity and Accumulated Other Comprehensive Loss The changes in the components of stockholders' equity were as follows:
____________
In February 2017, our board of directors authorized a stock repurchase program of up to $1.0 billion of the Company's common stock. During the nine months ended September 30, 2017, we repurchased 9,993,158 shares of common stock under the program at a total cost of $625 million, including the June 2017 repurchase of 1,500,000 shares from Blackstone for a total cost of $99 million. As of September 30, 2017, $375 million remained available for share repurchases under the program. See Note 16: Subsequent Events for the repurchase of additional shares from Blackstone in October 2017. The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:
____________
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table presents the calculation of basic and diluted earnings per share ("EPS"). All historical share and per share amounts have been adjusted to reflect the Reverse Stock Split. See Note 1: "Organization and Basis of Presentation" for additional information.
Approximately 1 million share-based compensation awards were excluded from the weighted average shares outstanding used in the computation of diluted EPS for the three and nine months ended September 30, 2017 and 2016 because their effect would have been anti-dilutive under the treasury stock method. |
Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments We are a hospitality company with operations organized in two distinct operating segments following the spin-offs: (i) management and franchise; and (ii) ownership. These segments are managed and reported separately because of their distinct economic characteristics. The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels operated or managed by someone other than us. As of September 30, 2017, this segment included 639 managed hotels and 4,408 franchised hotels consisting of 807,387 total rooms, which includes 67 hotels with 35,406 rooms that were previously owned or leased by Hilton or unconsolidated affiliates of Hilton and, upon completion of the spin-offs, were owned or leased by Park or unconsolidated affiliates of Park. This segment also earns fees for managing properties in our ownership segment and, effective upon completion of the spin-offs, a license fee from HGV for the exclusive right to use certain Hilton marks and intellectual property in HGV's timeshare business. As of September 30, 2017, the ownership segment included 73 properties totaling 22,204 rooms, comprising 64 hotels that we wholly owned or leased, one hotel leased by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and six hotels owned or leased by unconsolidated affiliates. Prior to the spin-offs, the performance of our operating segments was evaluated primarily on Adjusted EBITDA. Following the spin-offs, the performance of our operating segments is evaluated primarily on operating income, without allocating corporate and other revenues and other expenses or general and administrative expenses, since we have simplified our operating segments and certain adjustments included in Adjusted EBITDA on a segment basis are no longer applicable. The following table presents revenues for our reportable segments, reconciled to consolidated amounts:
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The following table presents operating income for our reportable segments, reconciled to consolidated income from continuing operations before income taxes:
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The following table presents total assets for our reportable segments, reconciled to consolidated assets of continuing operations:
The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated capital expenditures of continuing operations:
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Commitments and Contingencies |
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Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies We provide performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees allow us to terminate the contract, rather than fund shortfalls, if specified operating performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of September 30, 2017, we had five contracts containing performance guarantees, with expirations ranging from 2019 to 2030, with possible cash outlays totaling approximately $68 million. Our obligations under these guarantees in future periods are dependent on the operating performance levels of these hotels over the remaining terms of the performance guarantees. We do not have any letters of credit pledged as collateral against these guarantees. As of September 30, 2017 and December 31, 2016, we recorded $10 million and $11 million, respectively, in accounts payable, accrued expenses and other and $12 million and $17 million, respectively, in other liabilities in our condensed consolidated balance sheets for two outstanding performance guarantees that are related to VIEs for which we are not the primary beneficiary. We are involved in litigation arising in the normal course of business, some of which includes claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of September 30, 2017 will not have a material effect on our consolidated financial position, results of operations or cash flows. |
Condensed Consolidating Guarantor Financial Information |
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Condensed Consolidating Guarantor Financial Information | Condensed Consolidating Guarantor Financial Information In October 2013, Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (the "HWF Issuers"), entities that are 100 percent owned by Hilton Worldwide Parent LLC ("HWP"), which is 100 percent owned by the Parent, issued the 2021 Senior Notes. In September 2016, Hilton Domestic Operating Company Inc. ("HOC"), an entity incorporated in July 2016 that is 100 percent owned by Hilton Worldwide Finance LLC and is a guarantor of the 2021 Senior Notes, 2025 Senior Notes and 2027 Senior Notes, assumed the 2024 Senior Notes that were issued in August 2016 by escrow issuers. In March 2017, the HWF Issuers, which are guarantors of the 2024 Senior Notes, issued the 2025 Senior Notes and 2027 Senior Notes, and used the net proceeds and available cash to repay in full the 2021 Senior Notes. The 2024 Senior Notes, 2025 Senior Notes and 2027 Senior Notes are collectively referred to as the Senior Notes. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers. The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by HWP, the Parent and certain of the Parent's 100 percent owned domestic restricted subsidiaries that are themselves not issuers of the applicable series of Senior Notes (together, the "Guarantors''). The indentures that govern the Senior Notes provide that any subsidiary of the Company that provides a guarantee of the Senior Secured Credit Facility will guarantee the Senior Notes. As of September 30, 2017, none of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guarantee the Senior Notes (collectively, the "Non-Guarantors"). In September 2016, certain employees, assets and liabilities of a guarantor subsidiary were transferred into HOC. This transfer was considered to be a transfer of assets rather than a transfer of a business. Accordingly, we have separately presented HOC as a subsidiary issuer in our condensed consolidating financial information prospectively from the date of the transfer. Due to the timing of the transfer, our condensed consolidating statements of operations will include the results of operations of HOC beginning October 1, 2016 and our condensed consolidating statement of cash flows reflects the issuance of the 2024 Senior Notes during the nine months ended September 30, 2016. In connection with the spin-offs, certain entities that were previously guarantors of the 2021 Senior Notes and 2024 Senior Notes were released and no longer guaranteed these senior notes. The condensed consolidating financial information presents the financial information based on the composition of the Guarantors and Non-Guarantors as of September 30, 2017. The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under the Senior Secured Credit Facility; (iii) the subsidiary is declared "unrestricted" for covenant purposes; (iv) the subsidiary is merged with or into the applicable Subsidiary Issuers or another Guarantor or the Guarantor liquidates after transferring all of its assets to the applicable Subsidiary Issuers or another Guarantor; or (v) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied, in each case in compliance with applicable provisions of the indentures. The following schedules present the condensed consolidating financial information as of September 30, 2017 and December 31, 2016, and for the three and nine months ended September 30, 2017 and 2016, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors.
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Subsequent Events (Notes) |
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Sep. 30, 2017 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | Subsequent Events On October 4, 2017, Blackstone closed a secondary offering of 14,610,000 shares of its Hilton common stock and, in connection with the offering, we repurchased 986,175 shares from Blackstone as part of our stock repurchase program for a total cost of $68 million. Following the offering and share repurchase, Blackstone's beneficial ownership percentage in Hilton was reduced to 5.4 percent. |
Recently Issued Accounting Pronouncements (Policies) |
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Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ASU 2017-04 Goodwill Impairment | In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2017-04 ("ASU 2017-04"), Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies the subsequent measurement of goodwill by removing Step 2 from the goodwill impairment test. We elected, as permitted by the standard, to early adopt ASU 2017-04 on a prospective basis as of January 1, 2017. The adoption did not have a material effect on our condensed consolidated financial statements. |
ASU 2016-09 Stock Compensation | In March 2016, the FASB issued ASU No. 2016-09 ("ASU 2016-09"), Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU is intended to simplify several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory withholding requirements, as well as to clarify the classification in the statement of cash flows. We adopted ASU 2016-09 as of January 1, 2017. One of the provisions of this ASU requires entities to make an accounting policy election with respect to forfeitures of share-based payment awards, and we elected to account for forfeitures as they occur and adopted this provision of ASU 2016-09 using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of January 1, 2017 of approximately $1 million. Additionally, we have applied the provisions of this ASU on a retrospective basis in our condensed consolidated statements of cash flows, which includes presenting: (i) excess tax benefits as an operating activity, which were previously presented as a financing activity; and (ii) cash payments to tax authorities for employee taxes when shares are withheld to meet statutory withholding requirements as a financing activity, which were previously presented as an operating activity. |
ASU 2016-02 Leases | In February 2016, the FASB issued ASU No. 2016-02 ("ASU 2016-02"), Leases (Topic 842), which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position as right-of-use assets and lease liabilities by lessees. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach and are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. We are currently evaluating the effect that this ASU will have on our consolidated financial statements, but we expect this ASU to have a material effect on our consolidated balance sheet. |
ASU 2014-09 and Related ASUs Revenue Recognition | In May 2014, the FASB issued ASU No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) and requires entities to recognize revenue when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. Subsequent to ASU 2014-09, the FASB issued several related ASUs to clarify the application of the new revenue recognition standard. The provisions of ASU 2014-09 and the related ASUs are effective for reporting periods beginning after December 15, 2017; early adoption is permitted. ASU 2014-09 permits two transition approaches: retrospective or modified retrospective. We currently expect to implement this ASU using the retrospective approach. We anticipate that ASU 2014-09 and the related ASUs will have a material effect on our consolidated financial statements. However, revenue recognition related to our accounting for ongoing royalty and management fee revenues, direct reimbursable fees from our management and franchise agreements and hotel guest transactions at our owned and leased hotels will remain substantially unchanged. While we are continuing to assess all other potential effects of the standard, we currently believe the provisions of ASU 2014-09 and the related ASUs will affect revenue recognition as follows: (i) application and initiation fees for new hotels entering the system will be recognized over the term of the franchise agreement, rather than upon execution of the agreement; (ii) certain contract acquisition costs related to our management and franchise agreements will be recognized over the term of the agreements as a reduction to revenue, instead of as amortization expense; (iii) incentive management fees will be recognized to the extent that it is probable that a significant reversal will not occur as a result of future hotel profits or cash flows, as opposed to recognizing amounts that would be due if the management agreement was terminated at the end of the reporting period; (iv) revenue related to our guest loyalty program will be deferred as points are awarded and recognized upon point redemption, net of any reward reimbursement paid to a third party, as opposed to recognized on a gross basis at the time points are issued in conjunction with the accrual of the expected future cost of the reward reimbursement; and (v) indirect reimbursable fees related to our management and franchise agreements will be recognized as they are earned. We do not expect the changes in revenue recognition for contract acquisition costs to affect the Company's net income, nor do we expect incentive management fees to affect the Company’s net income for any full year period. We continue to update our assessment of the effect that ASU 2014-09 and the related ASUs will have on our consolidated financial statements, and we will disclose further material effects, if any, in our Annual Report on From 10-K for the fiscal year ended December 31, 2017. |
Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | The following table presents the assets and liabilities of Park and HGV that were included in discontinued operations in our condensed consolidated balance sheet:
The following table presents the results of operations of Park and HGV that were included in discontinued operations in our condensed consolidated statements of operations:
The following table presents selected financial information of Park and HGV that was included in our condensed consolidated statement of cash flows:
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Consolidated Variable Interest Entities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | Our condensed consolidated balance sheets included the assets and liabilities of these entities, which primarily comprised the following:
____________
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Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Our goodwill balances, by reporting unit, were as follows:
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Schedule of Other Intangible Assets | Intangible assets were as follows:
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Schedule of Future Amortization Expense of Intangible Assets | We estimated our future amortization expense for our amortizing intangible assets as of September 30, 2017 to be as follows:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term debt balances, including obligations for capital leases, and associated interest rates as of September 30, 2017, were as follows:
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Debt Maturities | The contractual maturities of our long-term debt as of September 30, 2017 were as follows:
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Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | The fair values of our derivative instruments in our condensed consolidated balance sheets were as follows:
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Earnings Effect of Derivative Instruments | The gains and losses recognized in our condensed consolidated statements of operations and condensed consolidated statements of comprehensive income before any effect for income taxes were as follows:
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Fair Value Measurements Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities | The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below, see Note 7: "Derivative Instruments and Hedging Activities" for the fair value information of our derivatives:
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Share-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Units Activity | The following table summarizes the activity of our RSUs during the nine months ended September 30, 2017:
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Schedule of Stock Options Activity | The following table summarizes the activity of our options during the nine months ended September 30, 2017:
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Schedule of Stock Options Valuation Assumptions | The weighted average grant date fair value of the options granted during the nine months ended September 30, 2017 was $13.96, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:
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Schedule of Performance Shares Activity | The following table summarizes the activity of our performance shares during the nine months ended September 30, 2017:
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Stockholders' Equity and Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders' Equity | The changes in the components of stockholders' equity were as follows:
____________
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Schedule of Accumulated Other Comprehensive Loss | The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:
____________
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share ("EPS"). All historical share and per share amounts have been adjusted to reflect the Reverse Stock Split. See Note 1: "Organization and Basis of Presentation" for additional information.
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Business Segments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segment Amounts to Consolidated Amounts | The following table presents revenues for our reportable segments, reconciled to consolidated amounts:
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Reconciliation of Segment Operating Income to Income from Continuing Operations Before Income Taxes | The following table presents operating income for our reportable segments, reconciled to consolidated income from continuing operations before income taxes:
____________
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Schedule of Assets by Segment | The following table presents total assets for our reportable segments, reconciled to consolidated assets of continuing operations:
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Schedule of Capital Expenditures by Segment | The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated capital expenditures of continuing operations:
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Condensed Consolidating Guarantor Financial Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Guarantor Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet |
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Condensed Statement of Income and Comprehensive Income |
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Condensed Cash Flow Statement |
|
Organization and Basis of Presentation (Details) shares in Millions, $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017
USD ($)
Room
Country
Hotel
Rate
|
Mar. 15, 2017
shares
|
|
Organization and Basis of Presentation [Line Items] | ||
Number of hotel and resort properties | Hotel | 5,168 | |
Number of hotel and resort rooms | Room | 837,692 | |
Number of countries and territories | Country | 103 | |
Reverse stock split | 1-for-3 | |
Reclassification from common stock to additional paid in capital | $ | $ 7 | |
HNA Tourism Group Co.,Ltd. purchase of Hilton common stock from Blackstone Group and Affiliates [Member] | ||
Organization and Basis of Presentation [Line Items] | ||
Hilton common stock acquired | shares | 82.5 | |
HNA Tourism Group Co., Ltd. [member] | ||
Organization and Basis of Presentation [Line Items] | ||
Common stock ownership percentage | 25.70% | |
The Blackstone Group And Affiliates [member] | ||
Organization and Basis of Presentation [Line Items] | ||
Common stock ownership percentage | 10.20% |
Recently Issued Accounting Pronouncements Impact of Recently Issued Accounting Pronouncements (Details) $ in Millions |
Jan. 01, 2017
USD ($)
|
---|---|
Impact of Recently Adopted Accounting Pronouncements [Abstract] | |
Cumulative effect of adoption of ASU 2016-09 | $ 1 |
Discontinued Operations - Balance Sheet Disclosures (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets of discontinued operations | $ 0 | $ 1,478 |
Total intangibles and other assets of discontinued operations | 0 | 10,347 |
Total current liabilities of discontinued operations | $ 0 | 774 |
Park and HGV spin-offs [Member] | Discontinued operations, disposed of by means other than sale, spinoff [member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 341 | |
Restricted cash and cash equivalents | 160 | |
Accounts receivable, net | 250 | |
Prepaid expenses | 48 | |
Inventories | 527 | |
Current portion of financing receivables, net | 136 | |
Other | 16 | |
Total current assets of discontinued operations | 1,478 | |
Variable interest entity current assets of discontinued operations | 92 | |
Goodwill | 604 | |
Management and franchise contracts, net | 56 | |
Other intangible assets, net | 60 | |
Property and equipment, net | 8,589 | |
Deferred income tax assets | 35 | |
Financing receivables, net | 895 | |
Investments in affiliates | 81 | |
Other | 27 | |
Total intangibles and other assets of discontinued operations | 10,347 | |
Variable interest entity non-current assets of discontinued operations | 405 | |
Total assets of discontinued operations | 11,825 | |
Accounts payable, accrued expenses and other | 632 | |
Current maturities of long-term debt | 65 | |
Current maturities of timeshare debt | 73 | |
Income taxes payable | 4 | |
Total current liabilities of discontinued operations | 774 | |
Variable interest entity current liabilities of discontinued operations | 81 | |
Long-term debt | 3,437 | |
Timeshare debt | 621 | |
Deferred revenues | 22 | |
Deferred income tax liabilities | 2,797 | |
Other | 17 | |
Total liabilities of discontinued operations | 7,668 | |
Variable interest entity liabilities of discontinued operations | $ 506 |
Discontinued Operations - Income Statement Disclosures (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of taxes | $ 0 | $ 103 | $ 0 | $ 366 |
Park and HGV spin-offs [Member] | Discontinued operations, disposed of by means other than sale, spinoff [member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total revenues from discontinued operations | 1,075 | 3,200 | ||
Owned and leased hotels | 446 | 1,354 | ||
Timeshare | 257 | 697 | ||
Depreciation and amortization | 79 | 236 | ||
Other expenses | 65 | 167 | ||
Total expenses from discontinued operations | 847 | 2,454 | ||
Gain on sales of assets, net | 0 | 1 | ||
Operating income from discontinued operations | 228 | 747 | ||
Non-operating loss, net | (49) | (137) | ||
Income from discontinued operations before income taxes | 179 | 610 | ||
Income tax expense | (76) | (244) | ||
Income from discontinued operations, net of taxes | 103 | 366 | ||
Income from discontinued operations attributable to noncontrolling interests, net of taxes | (3) | (6) | ||
Income from discontinued operations attributable to Hilton stockholders, net of taxes | $ 100 | $ 360 |
Discontinued Operations - Non-cash Items and Capital Expenditures (Details) - Park and HGV spin-offs [Member] - Discontinued operations, disposed of by means other than sale, spinoff [member] $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Depreciation and amortization | $ 236 |
Gain on sales of assets, net | (1) |
Capital expenditures for property and equipment | $ (185) |
Discontinued Operations - Additional Information (Details) - Discontinued operations, disposed of by means other than sale, spinoff [member] - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2017 |
Jan. 03, 2017 |
|
Park and HGV spin-offs [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Distribution of of spin-off companies stock to Hilton stockholders | 100.00% | ||
Park spin-off [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Park common stock distributed for every five shares of Hilton common stock | 1 | ||
Hilton common stock to receive spin-off company common stock | 5 | ||
Revenues from discontinued operations after disposal | $ 37 | $ 119 | |
HGV spin-off [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Hilton common stock to receive spin-off company common stock | 10 | ||
HGV common stock distributed for every ten shares of Hilton common stock | 1 | ||
Revenues from discontinued operations after disposal | $ 22 | $ 65 | |
Transition Services Agreement [Member] | Park and HGV spin-offs [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued Operation, Period of Continuing Involvement after Disposal | 2 years | ||
License Agreement [Member] | HGV spin-off [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued Operation, Period of Continuing Involvement after Disposal | 100 years | ||
Royalty fee rate | 5.00% | ||
Management and franchise contracts recorded at merger [member] | Park spin-off [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Base management fee rate | 3.00% | ||
Incentive management fee rate | 6.00% |
Consolidated Variable Interest Entities - Additional Information (Details) - Entity |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Number of consolidated variable interest entities | 3 | 3 |
Hotel VIEs [member] | ||
Variable Interest Entity [Line Items] | ||
Number of consolidated variable interest entities | 2 | 2 |
Condo management VIE [member] | ||
Variable Interest Entity [Line Items] | ||
Number of consolidated variable interest entities | 1 | 1 |
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
||
---|---|---|---|---|
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 670 | $ 1,062 | ||
Accounts receivable, net | 928 | 755 | ||
Property and equipment, net | 346 | 341 | ||
Deferred income tax assets | 82 | 82 | ||
Other non-current assets | 468 | 408 | ||
Accounts payable, accrued expenses and other | 1,911 | 1,821 | ||
Long-term debt | 6,564 | 6,583 | ||
Consolidated VIEs [member] | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 71 | 57 | ||
Accounts receivable, net | 13 | 14 | ||
Property and equipment, net | 52 | 52 | ||
Deferred income tax assets | 60 | 58 | ||
Other non-current assets | 56 | 53 | ||
Accounts payable, accrued expenses and other | 41 | 33 | ||
Long-term debt | [1] | 218 | 212 | |
Capital lease obligations [member] | Consolidated VIEs [member] | ||||
Variable Interest Entity [Line Items] | ||||
Long-term debt | $ 197 | $ 191 | ||
|
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 5,218 | ||||||
Spin-off of Park | (91) | ||||||
Foreign currency translation | 56 | ||||||
Goodwill | 5,183 | ||||||
Ownership [member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill, gross | 856 | ||||||
Accumulated impairment losses | (672) | ||||||
Goodwill | [1] | 184 | |||||
Gross carrying value of goodwill included in discontinued operations | $ 2,706 | ||||||
Accumulated impairment losses included in discontinued operations | $ 2,102 | ||||||
Gross goodwill, spin-offs of Park and HGV | (423) | ||||||
Accumulated impairment losses, spin-offs of Park and HGV | 332 | ||||||
Spin-off of Park | [1] | (91) | |||||
Foreign currency translation | [1] | 10 | |||||
Goodwill, gross | 443 | ||||||
Accumulated impairment losses | (340) | ||||||
Goodwill | [1] | 103 | |||||
Management and franchise [member] | |||||||
Goodwill [Line Items] | |||||||
Goodwill | [2] | 5,034 | |||||
Spin-off of Park | 0 | ||||||
Foreign currency translation | 46 | ||||||
Goodwill | [2] | $ 5,080 | |||||
|
Goodwill and Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
|||||
---|---|---|---|---|---|---|---|
Finite-Lived Intangible Assets [Line Items] | |||||||
Management and franchise contracts, gross | $ 2,671 | $ 2,564 | |||||
Other intangible assets, gross | 1,231 | 1,158 | |||||
Amortizing intangible assets, accumulated amortization | (1,747) | (1,601) | |||||
Other intangible assets, accumulated amortization | (803) | (711) | |||||
Management and franchise contracts, net | 924 | 963 | |||||
Other intangible assets, net | 428 | 447 | |||||
Brands | [1],[2] | 4,887 | 4,848 | ||||
Management and franchise contracts recorded at merger [member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Management and franchise contracts, gross | [2] | 2,240 | 2,221 | ||||
Amortizing intangible assets, accumulated amortization | [2] | (1,672) | (1,534) | ||||
Management and franchise contracts, net | [2] | 568 | 687 | ||||
Contract acquisition costs and other [member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Management and franchise contracts, gross | 431 | 343 | |||||
Amortizing intangible assets, accumulated amortization | (75) | (67) | |||||
Management and franchise contracts, net | 356 | 276 | |||||
Leases [member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets, gross | [2] | 298 | 276 | ||||
Amortizing intangible assets, accumulated amortization | [2] | (126) | |||||
Other intangible assets, accumulated amortization | [2] | 148 | |||||
Other intangible assets, net | [2] | 150 | 150 | ||||
Capitalized software [member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets, gross | 555 | 510 | |||||
Amortizing intangible assets, accumulated amortization | (362) | ||||||
Other intangible assets, accumulated amortization | 411 | ||||||
Other intangible assets, net | 144 | 148 | |||||
Hilton Honors [member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets, gross | [2] | 340 | 335 | ||||
Amortizing intangible assets, accumulated amortization | [2] | (192) | |||||
Other intangible assets, accumulated amortization | [2] | 211 | |||||
Other intangible assets, net | [2] | 129 | 143 | ||||
Other [member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets, gross | 38 | 37 | |||||
Amortizing intangible assets, accumulated amortization | (31) | ||||||
Other intangible assets, accumulated amortization | 33 | ||||||
Other intangible assets, net | $ 5 | $ 6 | |||||
|
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 69 | $ 79 | $ 214 | $ 234 |
Goodwill and Intangible Assets - Schedule of Future Amortization (Details) $ in Millions |
Sep. 30, 2017
USD ($)
|
---|---|
Other Intangible Assets Disclosure [Abstract] | |
2017 (remaining) | $ 70 |
2018 | 275 |
2019 | 260 |
2020 | 212 |
2021 | 82 |
Thereafter | 453 |
Amortizing intangible assets, net | $ 1,352 |
Debt - Long-term Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Sep. 30, 2017 |
Sep. 30, 2017 |
Mar. 01, 2017 |
Dec. 31, 2016 |
||
---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | $ 6,697 | $ 6,706 | |||||
Unamortized deferred financing costs and discount | (84) | (90) | |||||
Current maturities of long-term debt | [1] | (49) | (33) | ||||
Long-term debt | 6,564 | 6,583 | |||||
Senior notes [member] | Senior notes due 2021 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 0 | 1,500 | |||||
Senior notes [member] | Senior notes due 2024 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 1,000 | 1,000 | |||||
Debt instrument, interest rate, stated percentage | 4.25% | ||||||
Senior notes [member] | Senior notes due 2025 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 900 | 0 | |||||
Debt instrument, interest rate, stated percentage | 4.625% | 4.625% | |||||
Senior notes [member] | Senior notes due 2027 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 600 | 0 | |||||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | |||||
Secured debt [member] | Senior secured term loan facility due 2020 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 0 | $ 750 | 750 | ||||
Secured debt [member] | Senior secured term loan facility due 2023 [member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 3,939 | $ 3,209 | 3,209 | ||||
Debt instrument, interest rate, stated percentage | 3.24% | ||||||
Capital lease obligations [member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 237 | 227 | |||||
Debt instrument, weighted average interest rate | 6.34% | ||||||
Mortgages [member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | $ 21 | $ 20 | |||||
Debt instrument, weighted average interest rate | 2.65% | ||||||
|
Debt - Additional Information (Details) - USD ($) $ in Millions |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2017 |
Sep. 30, 2017 |
Mar. 01, 2017 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 6,697 | $ 6,706 | |||
Senior notes [member] | Senior notes due 2025 [member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of long-term debt | $ 900 | ||||
Long-term debt, gross | 900 | 0 | |||
Debt instrument, interest rate, stated percentage | 4.625% | 4.625% | |||
Senior notes [member] | Senior notes due 2027 [member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of long-term debt | $ 600 | ||||
Long-term debt, gross | 600 | 0 | |||
Debt instrument, interest rate, stated percentage | 4.875% | 4.875% | |||
Senior notes [member] | Senior notes due 2025 and senior notes due 2027 [member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs, gross | 21 | ||||
Senior notes [member] | Senior notes due 2021 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 0 | 1,500 | |||
Premium paid to redeem debt instrument | $ 42 | ||||
Write off of deferred debt issuance cost | $ 18 | ||||
Secured debt [member] | Senior secured revolving credit facility [member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 1,000 | ||||
Letters of credit outstanding, amount | 18 | ||||
Line of credit facility, remaining borrowing capacity | 982 | ||||
Secured debt [member] | Senior secured term loan facility due 2020 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 0 | $ 750 | 750 | ||
Secured debt [member] | Senior secured term loan facility due 2023 [member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | 3,939 | $ 3,209 | $ 3,209 | ||
Debt instrument, interest rate, stated percentage | 3.24% | ||||
Debt issuance costs, gross | $ 3 | ||||
Debt instrument, basis spread on variable rate | 2.00% |
Debt - Debt Maturities (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Gross long-term debt and capital lease obligations, including current maturities | $ 6,697 | $ 6,706 |
Long-term debt and capital lease obligations [member] | ||
Debt Instrument [Line Items] | ||
2017 (remaining) | 12 | |
2018 | 59 | |
2019 | 55 | |
2020 | 56 | |
2021 | 57 | |
Thereafter | $ 6,458 |
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
||
---|---|---|---|---|
Other liabilities [member] | Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||||
Derivative [Line Items] | ||||
Derivative liability | $ 13 | |||
Other liabilities [member] | Not designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||||
Derivative [Line Items] | ||||
Derivative liability | $ 12 | |||
Other current assets [member] | Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||||
Derivative [Line Items] | ||||
Derivative asset | 1 | 3 | ||
Accounts payable, accrued expenses and other [member] | Designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||||
Derivative [Line Items] | ||||
Derivative liability | [1] | 0 | ||
Accounts payable, accrued expenses and other [member] | Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||||
Derivative [Line Items] | ||||
Derivative liability | $ 1 | $ 4 | ||
|
Derivative Instruments and Hedging Activities - Earnings Effect of Derivative Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||||
Designated as hedging instrument [member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative instruments, gain (loss) recognized in income, ineffective portion and amount excluded from effectiveness testing, net | [1] | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Term loan interest rate swaps [member] | Designated as hedging instrument [member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 3 | 3 | (13) | (7) | |||||||
Foreign exchange forward contracts [member] | Designated as hedging instrument [member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (1) | (1) | |||||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | [2] | 0 | 0 | ||||||||
Other non-operating income, net [member] | Term loan interest rate swaps [member] | Not designated as hedging instrument [member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (loss) on derivatives | 0 | (1) | 2 | (1) | |||||||
Interest expense [member] | Term loan interest rate swaps [member] | Not designated as hedging instrument [member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Loss reclassified to earnings from discontinuance of cash flow hedge | [3] | (3) | (1) | (8) | (1) | ||||||
Gain (loss) on foreign currency transactions [member] | Foreign exchange forward contracts [member] | Not designated as hedging instrument [member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (loss) on derivatives | $ 3 | $ 4 | $ 10 | $ 7 | |||||||
|
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017
USD ($)
Derivative
|
Dec. 31, 2016
USD ($)
Derivative
|
|
Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Mar. 01, 2022 | |
Number of interest rate derivatives held | Derivative | 2 | |
Designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 22 | |
Derivative, Remaining Maturity | 24 months | |
Not designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,450 | |
Derivative, swaption interest rate | 1.87% | |
Number of interest rate derivatives held | Derivative | 4 | |
Not designated as hedging instrument [member] | Foreign exchange forward contracts [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 284 | |
$1.6 billion notional [Member] | Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,600 | |
Derivative, swaption interest rate | 1.98% | |
$750 million notional [Member] | Designated as hedging instrument [member] | Term loan interest rate swaps [member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 750 | |
Derivative, swaption interest rate | 2.02% |
Fair Value Measurements Schedule by Balance Sheet Grouping (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|
Level 1 [member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | [1] | $ 2,576 | $ 2,516 | ||
Level 2 [member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash equivalents | 283 | 782 | |||
Restricted cash equivalents | 12 | 11 | |||
Level 3 [member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | [1] | 3,959 | 4,006 | ||
Carrying value [member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash equivalents | 283 | 782 | |||
Restricted cash equivalents | 12 | 11 | |||
Long-term debt | [1] | $ 6,355 | $ 6,369 | ||
|
Income Taxes (Details) $ in Millions |
Sep. 30, 2017
USD ($)
|
---|---|
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 165 |
Accrual for interest and penalties | 33 |
Unrecognized tax benefits that would impact effective tax rate | 161 |
Taxing authority proposed tax owed adjustment | 874 |
Accrual for taxing authority proposed tax owed adjustment | $ 48 |
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 32 | $ 23 | $ 91 | $ 62 | ||
Unrecognized compensation costs related to unvested awards | $ 135 | $ 135 | ||||
Unrecognized compensation costs related to unvested awards, weighted-average period | 1 year 11 months | |||||
Shares of common stock reserved for future issuance | 17,970,113 | 17,970,113 | ||||
Incremental compensation expense from the Conversion Factor | $ 0 | |||||
Conversion from performance shares to RSUs upon completion of the spin-offs | 671,604 | |||||
Achievement percentage of 2015 and 2016 performance shares subsequently converted to restricted stock units | 100.00% | |||||
Restricted stock units (RSUs) [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted | 1,467,396 | |||||
Conversion from performance shares to RSUs upon completion of the spin-offs | [1] | 671,604 | ||||
Weighted average grant date fair value, granted | $ 58.80 | |||||
Restricted stock units (RSUs) [member] | Minimum [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | |||||
Restricted stock units (RSUs) [member] | Maximum [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Employee stock option [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Options, expiration period | 10 years | |||||
Options, grants in period, grant date fair value | $ 13.96 | |||||
Free cash flow CAGR [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted | 178,975 | |||||
Vesting rights, percentage | 50.00% | |||||
Anticipated achievement percentage | 100.00% | |||||
Weighted average grant date fair value, granted | $ 58.40 | |||||
EBITDA CAGR [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted | 179,006 | |||||
Conversion from performance shares to RSUs upon completion of the spin-offs | 335,802 | |||||
Vesting rights, percentage | 50.00% | |||||
Anticipated achievement percentage | 200.00% | |||||
Weighted average grant date fair value, granted | $ 58.40 | |||||
Deferred share units [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted | 15,288 | |||||
Weighted average grant date fair value, granted | $ 65.39 | |||||
|
Share-Based Compensation - Schedule of Restricted Stock Units Award Activity (Details) (Details) |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2017
$ / shares
shares
| ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion from performance shares to RSUs upon completion of the spin-offs | 671,604 | |||||
Restricted stock units (RSUs) [member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Outstanding, beginning balance | 1,624,541 | |||||
Conversion from performance shares to RSUs upon completion of the spin-offs | 671,604 | [1] | ||||
Effect of the spin-offs | 439,113 | |||||
Granted | 1,467,396 | |||||
Vested | (881,070) | |||||
Forfeited | (136,810) | |||||
Outstanding, ending balance | 3,184,774 | |||||
Weighted average grant date fair value, outstanding beginning balance | $ / shares | $ 65.24 | |||||
Weighted average grant date fair value, conversion from performance shares upon completion of the spin-offs | $ / shares | 72.42 | |||||
Weighted average grant date fair value, effect of the spin-offs | $ / shares | 57.60 | [2] | ||||
Weighted average grant date fair value, granted | $ / shares | 58.80 | |||||
Weighted average grant date fair value, vested | $ / shares | 47.26 | [2] | ||||
Weighted average grant date fair value, forfeited | $ / shares | 50.27 | [2] | ||||
Weighted average grant date fair value, outstanding ending balance | $ / shares | $ 52.67 | [2] | ||||
|
Share-Based Compensation - Schedule of Stock Options Activity (Details) - Employee stock option [member] |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2017
$ / shares
shares
| ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning balance | shares | 1,076,031 | |||
Effect of the spin-offs | shares | 251,145 | |||
Granted | shares | 748,965 | |||
Exercised | shares | (44,336) | |||
Forfeited or expired | shares | (20,799) | |||
Outstanding, ending balance | shares | 2,011,006 | |||
Exercisable | shares | 759,350 | |||
Weighted average exercise price, beginning balance | $ / shares | $ 66.83 | |||
Weighted average exercise price, effect of the spin-offs | $ / shares | 57.60 | [1] | ||
Weighted average grant date fair value, granted | $ / shares | 58.40 | |||
Weighted average grant date fair value, exercised | $ / shares | 46.12 | [1] | ||
Weighted average grant date fair value, forfeited, canceled or expired | $ / shares | 53.47 | [1] | ||
Weighted average exercise price, ending balance | $ / shares | 51.22 | [1] | ||
Weighted average exercise price, exercisable | $ / shares | $ 48.32 | [1] | ||
|
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Employee stock option [member] |
9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017
Rate
| ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected volatility | 24.00% | [1] | ||||||||
Expected term (in years) | 6 years | [2] | ||||||||
Minimum [member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividend yield | 0.92% | [3] | ||||||||
Risk-free interest rate | 1.93% | [4] | ||||||||
Maximum [member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividend yield | 1.03% | [3] | ||||||||
Risk-free interest rate | 2.03% | [4] | ||||||||
|
Share-Based Compensation - Schedule of Performance Shares Activity (Details) |
9 Months Ended |
---|---|
Sep. 30, 2017
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Conversion from performance shares to RSUs upon completion of the spin-offs | (671,604) |
EBITDA CAGR [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning balance | 335,802 |
Conversion from performance shares to RSUs upon completion of the spin-offs | (335,802) |
Granted | 179,006 |
Forfeited | (2,915) |
Outstanding, ending balance | 176,091 |
Weighted average grant date fair value, outstanding beginning balance | $ / shares | $ 68.09 |
Weighted average grant date fair value, conversion from performance shares upon completion of the spin-offs | $ / shares | 68.09 |
Weighted average grant date fair value, granted | $ / shares | 58.40 |
Weighted average grant date fair value, forfeited | $ / shares | 58.02 |
Weighted average grant date fair value, outstanding ending balance | $ / shares | $ 58.41 |
Free cash flow CAGR [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, beginning balance | 0 |
Granted | 178,975 |
Forfeited | (2,914) |
Outstanding, ending balance | 176,061 |
Weighted average grant date fair value, granted | $ / shares | $ 58.40 |
Weighted average grant date fair value, forfeited | $ / shares | 58.02 |
Weighted average grant date fair value, outstanding ending balance | $ / shares | $ 58.41 |
Stockholders' Equity and Accumulated Other Comprehensive Loss - Schedule of Stockholders' Equity (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stockholders' Equity Attributable to Parent | $ 1,447 | $ 1,447 | $ 5,899 | |||||||||||||
Beginning Balance | $ 5,849 | $ 5,951 | ||||||||||||||
Beginning Balance, shares | [1] | 329,341,992 | ||||||||||||||
Share-based compensation | $ 52 | 47 | ||||||||||||||
Repurchases of common stock, shares | (9,993,158) | |||||||||||||||
Repurchases of common stock, purchase price | $ (625) | |||||||||||||||
Net income, parent | 179 | $ 187 | 419 | 735 | ||||||||||||
Net income, noncontrolling interests | 2 | 5 | 4 | 11 | ||||||||||||
Net income | 181 | 192 | 423 | 746 | ||||||||||||
Comprehensive income (loss), attributable to parent | 226 | 187 | 537 | 693 | ||||||||||||
Total other comprehensive income (loss) | 46 | 1 | 117 | (43) | ||||||||||||
Comprehensive loss attributable to noncontrolling interests | $ 1 | 6 | 3 | 10 | ||||||||||||
Dividends | (148) | (209) | ||||||||||||||
Spin-offs of Park and HGV | (4,219) | |||||||||||||||
Cumulative effect of the adoption of an ASU | 0 | 5 | ||||||||||||||
Distributions | $ (1) | (6) | ||||||||||||||
Ending Balance, shares | 320,920,423 | 320,920,423 | ||||||||||||||
Ending Balance | $ 1,448 | 6,491 | $ 1,448 | 6,491 | ||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 1 | 1 | (50) | |||||||||||||
Common Stock [member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stockholders' Equity Attributable to Parent | $ 3 | $ 3 | [2] | $ 3 | $ 3 | [2] | 3 | $ 3 | [2] | |||||||
Beginning Balance, shares | 329,000,000 | 329,000,000 | [2] | |||||||||||||
Share-based payment award transactions net shares | 2,000,000 | 1,000,000 | ||||||||||||||
Repurchases of common stock, shares | (10,000,000) | |||||||||||||||
Ending Balance, shares | 321,000,000 | 330,000,000 | [2] | 321,000,000 | 330,000,000 | [2] | ||||||||||
Treasury Stock [member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stockholders' Equity Attributable to Parent | 0 | |||||||||||||||
Repurchases of common stock, purchase price | $ (625) | |||||||||||||||
Ending Balance | $ (625) | (625) | ||||||||||||||
Additional Paid-in Capital [member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stockholders' Equity Attributable to Parent | 10,273 | $ 10,205 | [2] | 10,273 | $ 10,205 | [2] | 10,220 | 10,158 | [2] | |||||||
Share-based compensation | 52 | 47 | ||||||||||||||
Cumulative effect of the adoption of an ASU | 1 | |||||||||||||||
Accumulated Deficit [member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stockholders' Equity Attributable to Parent | (7,384) | (2,866) | (7,384) | (2,866) | (3,323) | (3,392) | ||||||||||
Net income, parent | 419 | 735 | ||||||||||||||
Dividends | (148) | (209) | ||||||||||||||
Spin-offs of Park and HGV | (4,331) | |||||||||||||||
Cumulative effect of the adoption of an ASU | (1) | |||||||||||||||
Accumulated Other Comprehensive Loss [member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stockholders' Equity Attributable to Parent | (820) | (826) | (820) | (826) | (1,001) | (784) | ||||||||||
Comprehensive income (loss), attributable to parent | 118 | (42) | ||||||||||||||
Spin-offs of Park and HGV | 63 | |||||||||||||||
Noncontrolling Interest [member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Net income, noncontrolling interests | 4 | 11 | ||||||||||||||
Comprehensive loss attributable to noncontrolling interests | [3] | (1) | (1) | |||||||||||||
Spin-offs of Park and HGV | 49 | |||||||||||||||
Cumulative effect of the adoption of an ASU | 5 | |||||||||||||||
Distributions | (1) | (6) | ||||||||||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 1 | $ (25) | $ 1 | $ (25) | $ (50) | $ (34) | ||||||||||
|
Stockholders' Equity and Accumulated Other Comprehensive Loss - Additional Information (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
shares
| |
Equity, Class of Treasury Stock [Line Items] | |
Stock repurchase program, authorized amount | $ 1,000 |
Repurchases of common stock, shares | shares | 9,993,158 |
Repurchases of common stock, purchase price | $ 625 |
Stock repurchase program, remaining authorized repurchase amount | 375 |
Treasury Stock [member] | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchases of common stock, purchase price | $ 625 |
The Blackstone Group And Affiliates [member] | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchases of common stock, shares | shares | 1,500,000 |
The Blackstone Group And Affiliates [member] | Treasury Stock [member] | |
Equity, Class of Treasury Stock [Line Items] | |
Repurchases of common stock, purchase price | $ 99 |
Stockholders' Equity and Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) |
9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning balance | $ (1,001,000,000) | $ (784,000,000) | |||||||
Other comprehensive income (loss) before reclassifications | 106,000,000 | (46,000,000) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 12,000,000 | 4,000,000 | |||||||
Net current period other comprehensive income (loss) | 118,000,000 | (42,000,000) | |||||||
Spin-offs of Park and HGV | (4,219,000,000) | ||||||||
Ending balance | (820,000,000) | (826,000,000) | |||||||
Currency translation adjustment [member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning balance | [1] | (738,000,000) | (580,000,000) | ||||||
Tax benefit (expense) on currency translation adjustment reclassifications | [1] | 0 | 0 | ||||||
Other comprehensive income (loss) before reclassifications | [1] | 116,000,000 | (40,000,000) | ||||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 1,000,000 | (1,000,000) | ||||||
Net current period other comprehensive income (loss) | [1] | 117,000,000 | (41,000,000) | ||||||
Spin-offs of Park and HGV | 63,000,000 | ||||||||
Ending balance | [1] | (558,000,000) | (621,000,000) | ||||||
Pension liability adjustment [member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning balance | (251,000,000) | (194,000,000) | |||||||
Tax benefit on pension liability adjustment reclassifications | [2] | 2,000,000 | 3,000,000 | ||||||
Other comprehensive income (loss) before reclassifications | (1,000,000) | (2,000,000) | |||||||
Amounts reclassified from accumulated other comprehensive loss | [2] | 6,000,000 | 4,000,000 | ||||||
Net current period other comprehensive income (loss) | 5,000,000 | 2,000,000 | |||||||
Spin-offs of Park and HGV | 0 | ||||||||
Ending balance | (246,000,000) | (192,000,000) | |||||||
Cash flow hedge adjustment [member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Beginning balance | (12,000,000) | (10,000,000) | |||||||
Tax benefit on cash flow hedge adjustment reclassifications | [3] | 3,000,000 | 0 | ||||||
Other comprehensive income (loss) before reclassifications | (9,000,000) | (4,000,000) | |||||||
Amounts reclassified from accumulated other comprehensive loss | [3] | 5,000,000 | 1,000,000 | ||||||
Net current period other comprehensive income (loss) | (4,000,000) | (3,000,000) | |||||||
Spin-offs of Park and HGV | 0 | ||||||||
Ending balance | (16,000,000) | $ (13,000,000) | |||||||
Spin-offs of Park and HGV | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Spin-offs of Park and HGV | $ 63,000,000 | ||||||||
|
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|||||
Net Income (Loss) Available to Common Stockholders, Operations, Basic [Abstract] | ||||||||
Net income from continuing operations attributable to Hilton stockholders | $ 179 | $ 87 | $ 419 | $ 375 | ||||
Net Income (Loss) Available to Common Stockholders, Operations, Diluted [Abstract] | ||||||||
Net income from continuing operations attributable to Hilton stockholders | $ 179 | $ 87 | $ 419 | $ 375 | ||||
Basic EPS: | ||||||||
Weighted average shares outstanding, basic | 322 | 329 | 326 | 329 | ||||
Net income from continuing operations per share | $ 0.56 | $ 0.27 | [1] | $ 1.29 | $ 1.14 | [1] | ||
Diluted EPS: | ||||||||
Weighted average shares outstanding, diluted | 325 | 331 | 328 | 330 | ||||
Net income from continuing operations per share | $ 0.55 | $ 0.27 | [1] | $ 1.28 | $ 1.14 | [1] | ||
Share based compensation awards [member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Antidilutive securities excluded from computation of EPS, amount | 1 | 1 | 1 | 1 | ||||
|
Business Segments - Hotel Properties by Segment (Detail) |
9 Months Ended |
---|---|
Sep. 30, 2017
Room
Hotel
| |
Segment Reporting Information [Line Items] | |
Number of operating business segments | 2 |
Management and franchise [member] | |
Segment Reporting Information [Line Items] | |
Number of managed hotels | 639 |
Number of franchised hotels | 4,408 |
Number of managed and franchised hotel rooms | Room | 807,387 |
Ownership [member] | |
Segment Reporting Information [Line Items] | |
Number of owned and leased hotels | 73 |
Number of owned and leased hotel rooms | Room | 22,204 |
Number of wholly owned and leased hotels | 64 |
Number of non-wholly owned hotels | 1 |
Number of hotels of consolidated VIEs | 2 |
Number of hotels owned or leased by unconsolidated joint ventures | 6 |
Discontinued operations, disposed of by means other than sale, spinoff [member] | |
Segment Reporting Information [Line Items] | |
Number of managed and franchised hotels | 67 |
Number of managed and franchised hotel rooms | Room | 35,406 |
Business Segments - Reconciliation of Revenue from Segment Amounts to Consolidated Amounts (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | $ 2,354 | $ 1,867 | $ 6,861 | $ 5,543 | |||
Other revenues | 21 | 18 | 78 | 53 | |||
Other revenues from managed and franchised properties | 1,433 | 1,070 | 4,264 | 3,241 | |||
Ownership [member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | 388 | 372 | 1,065 | 1,089 | |||
Management and franchise [member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | 524 | 418 | 1,483 | 1,191 | ||
Operating segments [member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | 912 | 790 | 2,548 | 2,280 | |||
Intersegment eliminations [member] | |||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||
Revenues | [1] | $ (12) | $ (11) | $ (29) | $ (31) | ||
|
Business Segments - Reconciliation of Segment Operating Income to Income from Continuing Operations before Income Taxes (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Operating income | $ 382 | $ 265 | $ 1,024 | $ 708 | |||
Other revenues, less other expenses | 14 | 8 | 37 | 14 | |||
Depreciation and amortization | (83) | (90) | (259) | (273) | |||
Impairment loss | 0 | 0 | 0 | (15) | |||
General and administrative | (104) | (107) | (326) | (287) | |||
Gain on sales of assets, net | 0 | 0 | 0 | 1 | |||
Interest expense | (100) | (97) | (304) | (286) | |||
Gain (loss) on foreign currency transactions | 2 | (10) | 3 | (36) | |||
Loss on debt extinguishment | 0 | 0 | (60) | 0 | |||
Other non-operating income, net | 5 | 0 | 11 | 5 | |||
Income from continuing operations before income taxes | 289 | 158 | 674 | 391 | |||
Management and franchise [member] | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Operating income | [1] | 524 | 418 | 1,483 | 1,191 | ||
Ownership [member] | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Operating income | [1] | 31 | 36 | 89 | 77 | ||
Operating segments [member] | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Operating income | $ 555 | $ 454 | $ 1,572 | $ 1,268 | |||
|
Business Segments - Schedule of Assets by Segment (Detail) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 14,223 | $ 26,211 |
Total assets of continuing operations | 14,223 | 14,386 |
Corporate and other [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,364 | 2,529 |
Management and franchise [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 10,870 | 10,825 |
Ownership [member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 989 | $ 1,032 |
Business Segments - Schedule of Capital Expenditures by Segment (Detail) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | $ 36 | $ 227 |
Capital expenditures for property and equipment of continuing operations | 36 | 42 |
Corporate and other [member] | ||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | 16 | 8 |
Ownership [member] | ||
Segment Reporting, Capital Expenditure Reconciling Item [Line Items] | ||
Capital expenditures for property and equipment | $ 20 | $ 34 |
Commitments and Contingencies (Details) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017
USD ($)
Contract
|
Dec. 31, 2016
USD ($)
|
|
Commitments and Contingencies [Line Items] | ||
Account payable, accrued expenses and other | $ 2,033 | $ 2,684 |
Management contract performance guarantees [member] | ||
Commitments and Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | $ 68 | |
Guarantor obligations, term | 2019 to 2030 | |
Number of contracts with performance guarantees | Contract | 5 | |
Account payable, accrued expenses and other | $ 10 | 11 |
Other non-current liabilities | $ 12 | $ 17 |
Number of contracts with performance guarantees with recorded liabilities | Contract | 2 |
Condensed Consolidating Guarantor Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Current Assets: | |||||||||||
Cash and cash equivalents | $ 670 | $ 1,062 | |||||||||
Restricted cash and cash equivalents | 126 | 121 | |||||||||
Accounts receivable, net | 928 | 755 | |||||||||
Intercompany receivables | 0 | 0 | |||||||||
Prepaid expenses | 130 | 89 | |||||||||
Income taxes receivable | 5 | 13 | |||||||||
Other | 46 | 39 | |||||||||
Current assets of discontinued operations | 0 | 1,478 | |||||||||
Total current assets | 1,905 | 3,557 | |||||||||
Intangibles and Other Assets: | |||||||||||
Investments in subsidiaries | 0 | 0 | |||||||||
Goodwill | 5,183 | 5,218 | |||||||||
Brands | [1],[2] | 4,887 | 4,848 | ||||||||
Management and franchise contracts, net | 924 | 963 | |||||||||
Other intangible assets, net | 428 | 447 | |||||||||
Property and equipment, net | 346 | 341 | |||||||||
Deferred income tax assets | 82 | 82 | |||||||||
Other | 468 | 408 | |||||||||
Non-current assets of discontinued operations | 0 | 10,347 | |||||||||
Total intangibles and other assets | 12,318 | 22,654 | |||||||||
Total assets | 14,223 | 26,211 | |||||||||
Current Liabilities: | |||||||||||
Accounts payable, accrued expenses and other | 1,911 | 1,821 | |||||||||
Intercompany payables | 0 | 0 | |||||||||
Current maturities of long-term debt | [3] | 49 | 33 | ||||||||
Income taxes payable | 73 | 56 | |||||||||
Current liabilities of discontinued operations | 0 | 774 | |||||||||
Total current liabilities | 2,033 | 2,684 | |||||||||
Long-term debt | 6,564 | 6,583 | |||||||||
Deferred revenues | 95 | 42 | |||||||||
Deferred income tax liabilities | 1,650 | 1,778 | |||||||||
Liability for guest loyalty program | 879 | 889 | |||||||||
Other | 1,554 | 1,492 | |||||||||
Non-current liabilities of discontinued operations | 0 | 6,894 | |||||||||
Total liabilities | 12,775 | 20,362 | |||||||||
Equity: | |||||||||||
Total Hilton stockholders' equity | 1,447 | 5,899 | |||||||||
Noncontrolling interests | 1 | (50) | |||||||||
Total equity | 1,448 | 5,849 | $ 6,491 | $ 5,951 | |||||||
Total liabilities and equity | 14,223 | 26,211 | |||||||||
Eliminations [Member] | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | 0 | 0 | |||||||||
Restricted cash and cash equivalents | 0 | 0 | |||||||||
Accounts receivable, net | 0 | 0 | |||||||||
Intercompany receivables | (39) | (42) | |||||||||
Prepaid expenses | (1) | (3) | |||||||||
Income taxes receivable | (10) | (17) | |||||||||
Other | 0 | 0 | |||||||||
Current assets of discontinued operations | (24) | ||||||||||
Total current assets | (50) | (86) | |||||||||
Intangibles and Other Assets: | |||||||||||
Investments in subsidiaries | (17,711) | (35,661) | |||||||||
Goodwill | 0 | 0 | |||||||||
Brands | 0 | 0 | |||||||||
Management and franchise contracts, net | 0 | 0 | |||||||||
Other intangible assets, net | 0 | 0 | |||||||||
Property and equipment, net | 0 | 0 | |||||||||
Deferred income tax assets | (186) | (179) | |||||||||
Other | 0 | 0 | |||||||||
Non-current assets of discontinued operations | (10) | ||||||||||
Total intangibles and other assets | (17,897) | (35,850) | |||||||||
Total assets | (17,947) | (35,936) | |||||||||
Current Liabilities: | |||||||||||
Accounts payable, accrued expenses and other | (1) | (3) | |||||||||
Intercompany payables | (39) | (42) | |||||||||
Current maturities of long-term debt | 0 | 0 | |||||||||
Income taxes payable | (10) | (17) | |||||||||
Current liabilities of discontinued operations | (24) | ||||||||||
Total current liabilities | (50) | (86) | |||||||||
Long-term debt | 0 | 0 | |||||||||
Deferred revenues | 0 | 0 | |||||||||
Deferred income tax liabilities | (186) | (179) | |||||||||
Liability for guest loyalty program | 0 | 0 | |||||||||
Other | 0 | 0 | |||||||||
Non-current liabilities of discontinued operations | (10) | ||||||||||
Total liabilities | (236) | (275) | |||||||||
Equity: | |||||||||||
Total Hilton stockholders' equity | (17,711) | (35,661) | |||||||||
Noncontrolling interests | 0 | 0 | |||||||||
Total equity | (17,711) | (35,661) | |||||||||
Total liabilities and equity | (17,947) | (35,936) | |||||||||
Parent [Member] | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | 0 | 0 | |||||||||
Restricted cash and cash equivalents | 0 | 0 | |||||||||
Accounts receivable, net | 0 | 0 | |||||||||
Intercompany receivables | 0 | 0 | |||||||||
Prepaid expenses | 0 | 0 | |||||||||
Income taxes receivable | 0 | 0 | |||||||||
Other | 0 | 0 | |||||||||
Current assets of discontinued operations | 0 | ||||||||||
Total current assets | 0 | 0 | |||||||||
Intangibles and Other Assets: | |||||||||||
Investments in subsidiaries | 1,438 | 5,889 | |||||||||
Goodwill | 0 | 0 | |||||||||
Brands | 0 | 0 | |||||||||
Management and franchise contracts, net | 0 | 0 | |||||||||
Other intangible assets, net | 0 | 0 | |||||||||
Property and equipment, net | 0 | 0 | |||||||||
Deferred income tax assets | 9 | 10 | |||||||||
Other | 0 | 0 | |||||||||
Non-current assets of discontinued operations | 0 | ||||||||||
Total intangibles and other assets | 1,447 | 5,899 | |||||||||
Total assets | 1,447 | 5,899 | |||||||||
Current Liabilities: | |||||||||||
Accounts payable, accrued expenses and other | 0 | 0 | |||||||||
Intercompany payables | 0 | 0 | |||||||||
Current maturities of long-term debt | 0 | 0 | |||||||||
Income taxes payable | 0 | 0 | |||||||||
Current liabilities of discontinued operations | 0 | ||||||||||
Total current liabilities | 0 | 0 | |||||||||
Long-term debt | 0 | 0 | |||||||||
Deferred revenues | 0 | 0 | |||||||||
Deferred income tax liabilities | 0 | 0 | |||||||||
Liability for guest loyalty program | 0 | 0 | |||||||||
Other | 0 | 0 | |||||||||
Non-current liabilities of discontinued operations | 0 | ||||||||||
Total liabilities | 0 | 0 | |||||||||
Equity: | |||||||||||
Total Hilton stockholders' equity | 1,447 | 5,899 | |||||||||
Noncontrolling interests | 0 | 0 | |||||||||
Total equity | 1,447 | 5,899 | |||||||||
Total liabilities and equity | 1,447 | 5,899 | |||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | 21 | 22 | |||||||||
Restricted cash and cash equivalents | 10 | 9 | |||||||||
Accounts receivable, net | 629 | 484 | |||||||||
Intercompany receivables | 0 | 0 | |||||||||
Prepaid expenses | 54 | 21 | |||||||||
Income taxes receivable | 15 | 30 | |||||||||
Other | 15 | 5 | |||||||||
Current assets of discontinued operations | 0 | ||||||||||
Total current assets | 744 | 571 | |||||||||
Intangibles and Other Assets: | |||||||||||
Investments in subsidiaries | 1,438 | 5,889 | |||||||||
Goodwill | 3,824 | 3,824 | |||||||||
Brands | 4,405 | 4,404 | |||||||||
Management and franchise contracts, net | 663 | 716 | |||||||||
Other intangible assets, net | 276 | 296 | |||||||||
Property and equipment, net | 64 | 62 | |||||||||
Deferred income tax assets | 0 | 0 | |||||||||
Other | 232 | 213 | |||||||||
Non-current assets of discontinued operations | 12 | ||||||||||
Total intangibles and other assets | 10,902 | 15,416 | |||||||||
Total assets | 11,646 | 15,987 | |||||||||
Current Liabilities: | |||||||||||
Accounts payable, accrued expenses and other | 1,224 | 1,091 | |||||||||
Intercompany payables | 0 | 0 | |||||||||
Current maturities of long-term debt | 0 | 0 | |||||||||
Income taxes payable | 0 | 0 | |||||||||
Current liabilities of discontinued operations | 77 | ||||||||||
Total current liabilities | 1,224 | 1,168 | |||||||||
Long-term debt | 0 | 0 | |||||||||
Deferred revenues | 95 | 42 | |||||||||
Deferred income tax liabilities | 1,836 | 1,919 | |||||||||
Liability for guest loyalty program | 879 | 889 | |||||||||
Other | 564 | 490 | |||||||||
Non-current liabilities of discontinued operations | 0 | ||||||||||
Total liabilities | 4,598 | 4,508 | |||||||||
Equity: | |||||||||||
Total Hilton stockholders' equity | 7,048 | 11,479 | |||||||||
Noncontrolling interests | 0 | 0 | |||||||||
Total equity | 7,048 | 11,479 | |||||||||
Total liabilities and equity | 11,646 | 15,987 | |||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | 648 | 1,037 | |||||||||
Restricted cash and cash equivalents | 29 | 25 | |||||||||
Accounts receivable, net | 284 | 264 | |||||||||
Intercompany receivables | 39 | 42 | |||||||||
Prepaid expenses | 71 | 65 | |||||||||
Income taxes receivable | 0 | 0 | |||||||||
Other | 30 | 33 | |||||||||
Current assets of discontinued operations | 1,502 | ||||||||||
Total current assets | 1,101 | 2,968 | |||||||||
Intangibles and Other Assets: | |||||||||||
Investments in subsidiaries | 0 | 0 | |||||||||
Goodwill | 1,359 | 1,394 | |||||||||
Brands | 482 | 444 | |||||||||
Management and franchise contracts, net | 261 | 247 | |||||||||
Other intangible assets, net | 152 | 150 | |||||||||
Property and equipment, net | 265 | 267 | |||||||||
Deferred income tax assets | 90 | 82 | |||||||||
Other | 195 | 153 | |||||||||
Non-current assets of discontinued operations | 10,345 | ||||||||||
Total intangibles and other assets | 2,804 | 13,082 | |||||||||
Total assets | 3,905 | 16,050 | |||||||||
Current Liabilities: | |||||||||||
Accounts payable, accrued expenses and other | 473 | 414 | |||||||||
Intercompany payables | 0 | 0 | |||||||||
Current maturities of long-term debt | 17 | 7 | |||||||||
Income taxes payable | 83 | 73 | |||||||||
Current liabilities of discontinued operations | 721 | ||||||||||
Total current liabilities | 573 | 1,215 | |||||||||
Long-term debt | 240 | 241 | |||||||||
Deferred revenues | 0 | 0 | |||||||||
Deferred income tax liabilities | 0 | 38 | |||||||||
Liability for guest loyalty program | 0 | 0 | |||||||||
Other | 718 | 713 | |||||||||
Non-current liabilities of discontinued operations | 6,900 | ||||||||||
Total liabilities | 1,531 | 9,107 | |||||||||
Equity: | |||||||||||
Total Hilton stockholders' equity | 2,373 | 6,993 | |||||||||
Noncontrolling interests | 1 | (50) | |||||||||
Total equity | 2,374 | 6,943 | |||||||||
Total liabilities and equity | 3,905 | 16,050 | |||||||||
HWF Issuers [Member] | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | 0 | 0 | |||||||||
Restricted cash and cash equivalents | 0 | 0 | |||||||||
Accounts receivable, net | 0 | 0 | |||||||||
Intercompany receivables | 0 | 0 | |||||||||
Prepaid expenses | 0 | 0 | |||||||||
Income taxes receivable | 0 | 0 | |||||||||
Other | 0 | 0 | |||||||||
Current assets of discontinued operations | 0 | ||||||||||
Total current assets | 0 | 0 | |||||||||
Intangibles and Other Assets: | |||||||||||
Investments in subsidiaries | 6,852 | 11,300 | |||||||||
Goodwill | 0 | 0 | |||||||||
Brands | 0 | 0 | |||||||||
Management and franchise contracts, net | 0 | 0 | |||||||||
Other intangible assets, net | 0 | 0 | |||||||||
Property and equipment, net | 0 | 0 | |||||||||
Deferred income tax assets | 3 | 2 | |||||||||
Other | 10 | 12 | |||||||||
Non-current assets of discontinued operations | 0 | ||||||||||
Total intangibles and other assets | 6,865 | 11,314 | |||||||||
Total assets | 6,865 | 11,314 | |||||||||
Current Liabilities: | |||||||||||
Accounts payable, accrued expenses and other | 41 | 26 | |||||||||
Intercompany payables | 0 | 0 | |||||||||
Current maturities of long-term debt | 32 | 26 | |||||||||
Income taxes payable | 0 | 0 | |||||||||
Current liabilities of discontinued operations | 0 | ||||||||||
Total current liabilities | 73 | 52 | |||||||||
Long-term debt | 5,341 | 5,361 | |||||||||
Deferred revenues | 0 | 0 | |||||||||
Deferred income tax liabilities | 0 | 0 | |||||||||
Liability for guest loyalty program | 0 | 0 | |||||||||
Other | 13 | 12 | |||||||||
Non-current liabilities of discontinued operations | 0 | ||||||||||
Total liabilities | 5,427 | 5,425 | |||||||||
Equity: | |||||||||||
Total Hilton stockholders' equity | 1,438 | 5,889 | |||||||||
Noncontrolling interests | 0 | 0 | |||||||||
Total equity | 1,438 | 5,889 | |||||||||
Total liabilities and equity | 6,865 | 11,314 | |||||||||
HOC [Member] | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | 1 | 3 | |||||||||
Restricted cash and cash equivalents | 87 | 87 | |||||||||
Accounts receivable, net | 15 | 7 | |||||||||
Intercompany receivables | 0 | 0 | |||||||||
Prepaid expenses | 6 | 6 | |||||||||
Income taxes receivable | 0 | 0 | |||||||||
Other | 1 | 1 | |||||||||
Current assets of discontinued operations | 0 | ||||||||||
Total current assets | 110 | 104 | |||||||||
Intangibles and Other Assets: | |||||||||||
Investments in subsidiaries | 7,983 | 12,583 | |||||||||
Goodwill | 0 | 0 | |||||||||
Brands | 0 | 0 | |||||||||
Management and franchise contracts, net | 0 | 0 | |||||||||
Other intangible assets, net | 0 | 1 | |||||||||
Property and equipment, net | 17 | 12 | |||||||||
Deferred income tax assets | 166 | 167 | |||||||||
Other | 31 | 30 | |||||||||
Non-current assets of discontinued operations | 0 | ||||||||||
Total intangibles and other assets | 8,197 | 12,793 | |||||||||
Total assets | 8,307 | 12,897 | |||||||||
Current Liabilities: | |||||||||||
Accounts payable, accrued expenses and other | 174 | 293 | |||||||||
Intercompany payables | 39 | 42 | |||||||||
Current maturities of long-term debt | 0 | 0 | |||||||||
Income taxes payable | 0 | 0 | |||||||||
Current liabilities of discontinued operations | 0 | ||||||||||
Total current liabilities | 213 | 335 | |||||||||
Long-term debt | 983 | 981 | |||||||||
Deferred revenues | 0 | 0 | |||||||||
Deferred income tax liabilities | 0 | 0 | |||||||||
Liability for guest loyalty program | 0 | 0 | |||||||||
Other | 259 | 277 | |||||||||
Non-current liabilities of discontinued operations | 4 | ||||||||||
Total liabilities | 1,455 | 1,597 | |||||||||
Equity: | |||||||||||
Total Hilton stockholders' equity | 6,852 | 11,300 | |||||||||
Noncontrolling interests | 0 | 0 | |||||||||
Total equity | 6,852 | 11,300 | |||||||||
Total liabilities and equity | $ 8,307 | $ 12,897 | |||||||||
|
Condensed Consolidating Guarantor Financial Information - Condensed Income Statement (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Revenues | ||||
Franchise fees | $ 373 | $ 314 | $ 1,039 | $ 878 |
Base and other management fees | 87 | 59 | 255 | 179 |
Incentive management fees | 52 | 34 | 160 | 103 |
Owned and leased hotels | 388 | 372 | 1,065 | 1,089 |
Other revenues | 21 | 18 | 78 | 53 |
Total revenues excluding reimburseable revenues | 921 | 797 | 2,597 | 2,302 |
Other revenues from managed and franchised properties | 1,433 | 1,070 | 4,264 | 3,241 |
Total revenues | 2,354 | 1,867 | 6,861 | 5,543 |
Expenses | ||||
Owned and leased hotels | 345 | 325 | 947 | 981 |
Depreciation and amortization | 83 | 90 | 259 | 273 |
Impairment loss | 0 | 0 | 0 | 15 |
General and administrative | 104 | 107 | 326 | 287 |
Other expenses | 7 | 10 | 41 | 39 |
Total expenses excluding reimbursable expenses | 539 | 532 | 1,573 | 1,595 |
Other expenses from managed and franchised properties | 1,433 | 1,070 | 4,264 | 3,241 |
Total expenses | 1,972 | 1,602 | 5,837 | 4,836 |
Gain on sales of assets, net | 0 | 0 | 0 | 1 |
Operating income | 382 | 265 | 1,024 | 708 |
Interest expense | (100) | (97) | (304) | (286) |
Gain (loss) on foreign currency transactions | 2 | (10) | 3 | (36) |
Other nonoperating income (loss), net | 5 | 0 | 11 | 5 |
Loss on debt extinguishment | 0 | 0 | (60) | 0 |
Income from continuing operations before income taxes | 289 | 158 | 674 | 391 |
Income tax expense | (108) | (69) | (251) | (11) |
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | 181 | 89 | 423 | 380 |
Equity in earnings from subsidiaries | 0 | 0 | 0 | 0 |
Income from continuing operations, net of taxes | 181 | 89 | 423 | 380 |
Income from discontinued operations, net of taxes | 0 | 103 | 0 | 366 |
Net income | 181 | 192 | 423 | 746 |
Net income attributable to noncontrolling interests | (2) | (5) | (4) | (11) |
Net income attributable to Hilton stockholders | 179 | 187 | 419 | 735 |
Comprehensive income | 227 | 193 | 540 | 703 |
Comprehensive income attributable to noncontrolling interests | (1) | (6) | (3) | (10) |
Comprehensive income attributable to Hilton stockholders | 226 | 187 | 537 | 693 |
Eliminations [Member] | ||||
Revenues | ||||
Franchise fees | (4) | (2) | (13) | (7) |
Base and other management fees | 0 | 0 | 0 | 0 |
Incentive management fees | 0 | 0 | 0 | 0 |
Owned and leased hotels | 0 | 0 | 0 | 0 |
Other revenues | (1) | 0 | (1) | 0 |
Total revenues excluding reimburseable revenues | (5) | (2) | (14) | (7) |
Other revenues from managed and franchised properties | 0 | 0 | 0 | 0 |
Total revenues | (5) | (2) | (14) | (7) |
Expenses | ||||
Owned and leased hotels | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment loss | 0 | |||
General and administrative | (1) | 0 | (1) | 0 |
Other expenses | (4) | (2) | (13) | (7) |
Total expenses excluding reimbursable expenses | (5) | (2) | (14) | (7) |
Other expenses from managed and franchised properties | 0 | 0 | 0 | 0 |
Total expenses | (5) | (2) | (14) | (7) |
Gain on sales of assets, net | 0 | |||
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 1 | 0 | 1 | 0 |
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | 0 |
Other nonoperating income (loss), net | (1) | 0 | (1) | 0 |
Loss on debt extinguishment | 0 | |||
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | 0 | 0 | 0 | 0 |
Equity in earnings from subsidiaries | (836) | (333) | (2,107) | (672) |
Income from continuing operations, net of taxes | (333) | (672) | ||
Income from discontinued operations, net of taxes | (301) | (1,058) | ||
Net income | (836) | (634) | (2,107) | (1,730) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton stockholders | (836) | (634) | (2,107) | (1,730) |
Comprehensive income | (883) | (634) | (2,225) | (1,688) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | (883) | (634) | (2,225) | (1,688) |
Parent [Member] | ||||
Revenues | ||||
Franchise fees | 0 | 0 | 0 | 0 |
Base and other management fees | 0 | 0 | 0 | 0 |
Incentive management fees | 0 | 0 | 0 | 0 |
Owned and leased hotels | 0 | 0 | 0 | 0 |
Other revenues | 0 | 0 | 0 | 0 |
Total revenues excluding reimburseable revenues | 0 | 0 | 0 | 0 |
Other revenues from managed and franchised properties | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Expenses | ||||
Owned and leased hotels | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment loss | 0 | |||
General and administrative | 0 | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Total expenses excluding reimbursable expenses | 0 | 0 | 0 | 0 |
Other expenses from managed and franchised properties | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Gain on sales of assets, net | 0 | |||
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | 0 |
Other nonoperating income (loss), net | 0 | 0 | 0 | 0 |
Loss on debt extinguishment | 0 | |||
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 1 | 0 | 193 |
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | 0 | 1 | 0 | 193 |
Equity in earnings from subsidiaries | 179 | 86 | 419 | 182 |
Income from continuing operations, net of taxes | 87 | 375 | ||
Income from discontinued operations, net of taxes | 100 | 360 | ||
Net income | 179 | 187 | 419 | 735 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton stockholders | 179 | 187 | 419 | 735 |
Comprehensive income | 226 | 187 | 537 | 693 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 226 | 187 | 537 | 693 |
Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Franchise fees | 303 | 284 | 854 | 802 |
Base and other management fees | 48 | 30 | 151 | 95 |
Incentive management fees | 15 | 3 | 58 | 14 |
Owned and leased hotels | 0 | 0 | 0 | 0 |
Other revenues | 19 | 17 | 48 | 45 |
Total revenues excluding reimburseable revenues | 385 | 334 | 1,111 | 956 |
Other revenues from managed and franchised properties | 1,253 | 941 | 3,702 | 2,858 |
Total revenues | 1,638 | 1,275 | 4,813 | 3,814 |
Expenses | ||||
Owned and leased hotels | 0 | 0 | 0 | 0 |
Depreciation and amortization | 58 | 68 | 183 | 204 |
Impairment loss | 0 | |||
General and administrative | 0 | 84 | 0 | 207 |
Other expenses | 6 | 7 | 22 | 24 |
Total expenses excluding reimbursable expenses | 64 | 159 | 205 | 435 |
Other expenses from managed and franchised properties | 1,253 | 941 | 3,702 | 2,858 |
Total expenses | 1,317 | 1,100 | 3,907 | 3,293 |
Gain on sales of assets, net | 0 | |||
Operating income | 321 | 175 | 906 | 521 |
Interest expense | 0 | (20) | 0 | (51) |
Gain (loss) on foreign currency transactions | 48 | (22) | 122 | (86) |
Other nonoperating income (loss), net | 2 | 4 | 6 | 10 |
Loss on debt extinguishment | 0 | |||
Income from continuing operations before income taxes | 371 | 137 | 1,034 | 394 |
Income tax expense | (141) | (54) | (396) | (196) |
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | 230 | 83 | 638 | 198 |
Equity in earnings from subsidiaries | 179 | 118 | 419 | 182 |
Income from continuing operations, net of taxes | 201 | 380 | ||
Income from discontinued operations, net of taxes | 100 | 360 | ||
Net income | 409 | 301 | 1,057 | 740 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton stockholders | 409 | 301 | 1,057 | 740 |
Comprehensive income | 409 | 286 | 1,058 | 686 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 409 | 286 | 1,058 | 686 |
Non-Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Franchise fees | 39 | 32 | 95 | 83 |
Base and other management fees | 38 | 29 | 103 | 84 |
Incentive management fees | 37 | 31 | 102 | 89 |
Owned and leased hotels | 388 | 372 | 1,065 | 1,089 |
Other revenues | 3 | 1 | 9 | 8 |
Total revenues excluding reimburseable revenues | 505 | 465 | 1,374 | 1,353 |
Other revenues from managed and franchised properties | 150 | 129 | 446 | 383 |
Total revenues | 655 | 594 | 1,820 | 1,736 |
Expenses | ||||
Owned and leased hotels | 345 | 325 | 947 | 981 |
Depreciation and amortization | 24 | 22 | 72 | 69 |
Impairment loss | 15 | |||
General and administrative | 25 | 23 | 76 | 80 |
Other expenses | 5 | 5 | 17 | 22 |
Total expenses excluding reimbursable expenses | 399 | 375 | 1,112 | 1,167 |
Other expenses from managed and franchised properties | 150 | 129 | 446 | 383 |
Total expenses | 549 | 504 | 1,558 | 1,550 |
Gain on sales of assets, net | 1 | |||
Operating income | 106 | 90 | 262 | 187 |
Interest expense | (16) | (12) | (43) | (36) |
Gain (loss) on foreign currency transactions | (45) | 12 | (131) | 50 |
Other nonoperating income (loss), net | 4 | 1 | 6 | 0 |
Loss on debt extinguishment | 0 | |||
Income from continuing operations before income taxes | 49 | 91 | 94 | 201 |
Income tax expense | (15) | (43) | (28) | (86) |
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | 34 | 48 | 66 | 115 |
Equity in earnings from subsidiaries | 0 | 0 | 0 | 0 |
Income from continuing operations, net of taxes | 48 | 115 | ||
Income from discontinued operations, net of taxes | 104 | 344 | ||
Net income | 34 | 152 | 66 | 459 |
Net income attributable to noncontrolling interests | (2) | (5) | (4) | (11) |
Net income attributable to Hilton stockholders | 32 | 147 | 62 | 448 |
Comprehensive income | 78 | 165 | 184 | 473 |
Comprehensive income attributable to noncontrolling interests | (1) | (6) | (3) | (10) |
Comprehensive income attributable to Hilton stockholders | 77 | 159 | 181 | 463 |
HWF Issuers [Member] | ||||
Revenues | ||||
Franchise fees | 0 | 0 | 0 | 0 |
Base and other management fees | 0 | 0 | 0 | 0 |
Incentive management fees | 0 | 0 | 0 | 0 |
Owned and leased hotels | 0 | 0 | 0 | 0 |
Other revenues | 0 | 0 | 0 | 0 |
Total revenues excluding reimburseable revenues | 0 | 0 | 0 | 0 |
Other revenues from managed and franchised properties | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Expenses | ||||
Owned and leased hotels | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment loss | 0 | |||
General and administrative | 0 | 0 | 0 | 0 |
Other expenses | 0 | 0 | 0 | 0 |
Total expenses excluding reimbursable expenses | 0 | 0 | 0 | 0 |
Other expenses from managed and franchised properties | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Gain on sales of assets, net | 0 | |||
Operating income | 0 | 0 | 0 | 0 |
Interest expense | (60) | (65) | (183) | (199) |
Gain (loss) on foreign currency transactions | 0 | 0 | 0 | 0 |
Other nonoperating income (loss), net | (1) | (5) | (4) | (5) |
Loss on debt extinguishment | (60) | |||
Income from continuing operations before income taxes | (61) | (70) | (247) | (204) |
Income tax expense | 24 | 27 | 97 | 78 |
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | (37) | (43) | (150) | (126) |
Equity in earnings from subsidiaries | 216 | 129 | 569 | 308 |
Income from continuing operations, net of taxes | 86 | 182 | ||
Income from discontinued operations, net of taxes | 100 | 360 | ||
Net income | 179 | 186 | 419 | 542 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Hilton stockholders | 179 | 186 | 419 | 542 |
Comprehensive income | 182 | 189 | 415 | 539 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Hilton stockholders | 182 | $ 189 | 415 | $ 539 |
HOC [Member] | ||||
Revenues | ||||
Franchise fees | 35 | 103 | ||
Base and other management fees | 1 | 1 | ||
Incentive management fees | 0 | 0 | ||
Owned and leased hotels | 0 | 0 | ||
Other revenues | 0 | 22 | ||
Total revenues excluding reimburseable revenues | 36 | 126 | ||
Other revenues from managed and franchised properties | 30 | 116 | ||
Total revenues | 66 | 242 | ||
Expenses | ||||
Owned and leased hotels | 0 | 0 | ||
Depreciation and amortization | 1 | 4 | ||
General and administrative | 80 | 251 | ||
Other expenses | 0 | 15 | ||
Total expenses excluding reimbursable expenses | 81 | 270 | ||
Other expenses from managed and franchised properties | 30 | 116 | ||
Total expenses | 111 | 386 | ||
Operating income | (45) | (144) | ||
Interest expense | (25) | (79) | ||
Gain (loss) on foreign currency transactions | (1) | 12 | ||
Other nonoperating income (loss), net | 1 | 4 | ||
Loss on debt extinguishment | 0 | |||
Income from continuing operations before income taxes | (70) | (207) | ||
Income tax expense | 24 | 76 | ||
Income (loss) from continuing operations before equity in earnings (losses) from subsidiaries | (46) | (131) | ||
Equity in earnings from subsidiaries | 262 | 700 | ||
Net income | 216 | 569 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to Hilton stockholders | 216 | 569 | ||
Comprehensive income | 215 | 571 | ||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Comprehensive income attributable to Hilton stockholders | $ 215 | $ 571 |
Condensed Consolidating Guarantor Financial Information - Condensed Cash Flow Statement (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Operating Activities: | ||
Net cash provided by (used in) operating activities | $ 646 | $ 969 |
Investing Activities: | ||
Capital expenditures for property and equipment | (36) | (227) |
Proceeds from asset dispositions | 0 | 1 |
Contract acquisition costs | (51) | (35) |
Capitalized software costs | (45) | (56) |
Other | (14) | (29) |
Net cash used in investing activities | (146) | (346) |
Financing Activities: | ||
Borrowings | 1,823 | 1,000 |
Repayment of debt | (1,848) | (1,094) |
Debt issuance costs and redemption premium | (69) | (35) |
Repayment of intercompany borrowings | 0 | |
Intercompany transfers | 0 | 0 |
Dividends paid | (147) | (207) |
Intercompany dividends | 0 | |
Cash transferred in spin-offs of Park and HGV | (501) | 0 |
Repurchases of common stock | (625) | 0 |
Distributions to noncontrolling interests | (1) | (6) |
Tax withholdings on share-based compensation | (28) | (13) |
Net cash used in (provided by) financing activities | (1,396) | (355) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 8 | 7 |
Net increase (decrease) in cash, restricted cash and cash equivalents | (888) | 275 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,183 | 633 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 |
Cash, restricted cash and cash equivalents, beginning of period | 1,684 | 856 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 796 | 609 |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | 522 |
Cash, restricted cash and cash equivalents, end of period | 796 | 1,131 |
Eliminations [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 0 | (88) |
Investing Activities: | ||
Capital expenditures for property and equipment | 0 | 0 |
Proceeds from asset dispositions | 0 | |
Contract acquisition costs | 0 | 0 |
Capitalized software costs | 0 | 0 |
Other | (3) | 0 |
Net cash used in investing activities | (3) | 0 |
Financing Activities: | ||
Borrowings | 0 | 0 |
Repayment of debt | 0 | 0 |
Debt issuance costs and redemption premium | 0 | 0 |
Repayment of intercompany borrowings | 3 | |
Intercompany transfers | 0 | |
Dividends paid | 0 | 0 |
Intercompany dividends | 88 | |
Cash transferred in spin-offs of Park and HGV | 0 | |
Repurchases of common stock | 0 | |
Distributions to noncontrolling interests | 0 | 0 |
Tax withholdings on share-based compensation | 0 | 0 |
Net cash used in (provided by) financing activities | 3 | 88 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 |
Parent [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Investing Activities: | ||
Capital expenditures for property and equipment | 0 | 0 |
Proceeds from asset dispositions | 0 | |
Contract acquisition costs | 0 | 0 |
Capitalized software costs | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing Activities: | ||
Borrowings | 0 | 0 |
Repayment of debt | 0 | 0 |
Debt issuance costs and redemption premium | 0 | 0 |
Repayment of intercompany borrowings | 0 | |
Intercompany transfers | 772 | 207 |
Dividends paid | (147) | (207) |
Intercompany dividends | 0 | |
Cash transferred in spin-offs of Park and HGV | 0 | |
Repurchases of common stock | (625) | |
Distributions to noncontrolling interests | 0 | 0 |
Tax withholdings on share-based compensation | 0 | 0 |
Net cash used in (provided by) financing activities | 0 | 0 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 |
Guarantor Subsidiaries [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 630 | 264 |
Investing Activities: | ||
Capital expenditures for property and equipment | (7) | (3) |
Proceeds from asset dispositions | 0 | |
Contract acquisition costs | (27) | (28) |
Capitalized software costs | (45) | (50) |
Other | (2) | (32) |
Net cash used in investing activities | (81) | (113) |
Financing Activities: | ||
Borrowings | 0 | 0 |
Repayment of debt | 0 | 0 |
Debt issuance costs and redemption premium | 0 | 0 |
Repayment of intercompany borrowings | 0 | |
Intercompany transfers | (549) | (222) |
Dividends paid | 0 | 0 |
Intercompany dividends | 0 | |
Cash transferred in spin-offs of Park and HGV | 0 | |
Repurchases of common stock | 0 | |
Distributions to noncontrolling interests | 0 | 0 |
Tax withholdings on share-based compensation | 0 | (13) |
Net cash used in (provided by) financing activities | (549) | (235) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | (84) |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 31 | 109 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 31 | 109 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 25 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | |
Cash, restricted cash and cash equivalents, end of period | 31 | 25 |
Non-Guarantor Subsidiaries [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | 188 | 920 |
Investing Activities: | ||
Capital expenditures for property and equipment | (21) | (224) |
Proceeds from asset dispositions | 1 | |
Contract acquisition costs | (24) | (7) |
Capitalized software costs | 0 | (6) |
Other | 4 | 3 |
Net cash used in investing activities | (41) | (233) |
Financing Activities: | ||
Borrowings | 0 | 0 |
Repayment of debt | (6) | (1,086) |
Debt issuance costs and redemption premium | 0 | (3) |
Repayment of intercompany borrowings | 0 | |
Intercompany transfers | (533) | 758 |
Dividends paid | 0 | 0 |
Intercompany dividends | (88) | |
Cash transferred in spin-offs of Park and HGV | (501) | |
Repurchases of common stock | 0 | |
Distributions to noncontrolling interests | (1) | (6) |
Tax withholdings on share-based compensation | 0 | 0 |
Net cash used in (provided by) financing activities | (1,041) | (425) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 8 | 7 |
Net increase (decrease) in cash, restricted cash and cash equivalents | (886) | 269 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 1,062 | 524 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 501 | 223 |
Cash, restricted cash and cash equivalents, beginning of period | 1,563 | 747 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 494 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 522 | |
Cash, restricted cash and cash equivalents, end of period | 677 | 1,016 |
HWF Issuers [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | (89) | (127) |
Investing Activities: | ||
Capital expenditures for property and equipment | 0 | 0 |
Proceeds from asset dispositions | 0 | |
Contract acquisition costs | 0 | 0 |
Capitalized software costs | 0 | 0 |
Other | (13) | 0 |
Net cash used in investing activities | (13) | 0 |
Financing Activities: | ||
Borrowings | 1,823 | 0 |
Repayment of debt | (1,842) | (8) |
Debt issuance costs and redemption premium | (69) | (12) |
Repayment of intercompany borrowings | 0 | |
Intercompany transfers | 190 | 147 |
Dividends paid | 0 | 0 |
Intercompany dividends | 0 | |
Cash transferred in spin-offs of Park and HGV | 0 | |
Repurchases of common stock | 0 | |
Distributions to noncontrolling interests | 0 | 0 |
Tax withholdings on share-based compensation | 0 | 0 |
Net cash used in (provided by) financing activities | 102 | 127 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 0 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | |
Cash, restricted cash and cash equivalents, end of period | 0 | 0 |
HOC [Member] | ||
Operating Activities: | ||
Net cash provided by (used in) operating activities | (83) | 0 |
Investing Activities: | ||
Capital expenditures for property and equipment | (8) | 0 |
Proceeds from asset dispositions | 0 | |
Contract acquisition costs | 0 | 0 |
Capitalized software costs | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | (8) | 0 |
Financing Activities: | ||
Borrowings | 0 | 1,000 |
Repayment of debt | 0 | 0 |
Debt issuance costs and redemption premium | 0 | (20) |
Repayment of intercompany borrowings | (3) | |
Intercompany transfers | 120 | (890) |
Dividends paid | 0 | 0 |
Intercompany dividends | 0 | |
Cash transferred in spin-offs of Park and HGV | 0 | |
Repurchases of common stock | 0 | |
Distributions to noncontrolling interests | 0 | 0 |
Tax withholdings on share-based compensation | (28) | 0 |
Net cash used in (provided by) financing activities | 89 | 90 |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash, restricted cash and cash equivalents | (2) | 90 |
Cash, restricted cash and cash equivalents from continuing operations, beginning of period | 90 | 0 |
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period | 0 | 0 |
Cash, restricted cash and cash equivalents, beginning of period | 90 | 0 |
Cash, restricted cash and cash equivalents from continuing operations, end of period | 90 | |
Cash, restricted cash and cash equivalents from discontinued operations, end of period | 0 | |
Cash, restricted cash and cash equivalents, end of period | $ 88 | $ 90 |
Condensed Consolidating Guarantor Financial Information - Additional Information (Details) |
Sep. 30, 2017
Rate
|
---|---|
HWF Issuers [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
Hilton Worldwide Parent [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
HOC [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
Domestic Subsidiaries [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage of equity interest | 100.00% |
Subsequent Events (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Oct. 04, 2017 |
Sep. 30, 2017 |
|
Subsequent Event [Line Items] | ||
Repurchases of common stock, shares | 9,993,158 | |
Repurchases of common stock, purchase price | $ 625 | |
The Blackstone Group And Affiliates [member] | ||
Subsequent Event [Line Items] | ||
Repurchases of common stock, shares | 1,500,000 | |
Common stock ownership percentage | 10.20% | |
The Blackstone Group And Affiliates [member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares offered in secondary offering | 14,610,000 | |
Repurchases of common stock, shares | 986,175 | |
Common stock ownership percentage | 5.40% | |
Treasury Stock [member] | ||
Subsequent Event [Line Items] | ||
Repurchases of common stock, purchase price | $ 625 | |
Treasury Stock [member] | The Blackstone Group And Affiliates [member] | ||
Subsequent Event [Line Items] | ||
Repurchases of common stock, purchase price | $ 99 | |
Treasury Stock [member] | The Blackstone Group And Affiliates [member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Repurchases of common stock, purchase price | $ 68 |
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