XML 156 R33.htm IDEA: XBRL DOCUMENT v3.7.0.1
Condensed Consolidating Guarantor Financial Information
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Condensed Consolidating Guarantor Financial Information [Abstract]    
Condensed Consolidating Guarantor Financial Information

Note 15: 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, assumed the 2024 Senior Notes that were issued in August 2016 by escrow issuers and is a guarantor of the 2021 Senior Notes, 2025 Senior Notes and 2027 Senior Notes. In March 2017, the HWF Issuers, which are guarantors of the 2024 Seniors Notes, issued the 2025 Senior Notes and 2027 Senior Notes, and we 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 and are all guaranteed by HWP. 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 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 March 31, 2017, none of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guarantee the Senior Notes (collectively, the “Non-Guarantors”).

In September 2016, certain employees, assets and liabilities of a guarantor subsidiary were transferred into HOC. This transfer was considered to be a transfer of assets rather than a transfer of a business. Accordingly, we have separately presented HOC as a subsidiary issuer in our condensed consolidating financial information prospectively from the date of the transfer.

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 March 31, 2017.

The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under 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 March 31, 2017 and December 31, 2016, and for the three months ended March 31, 2017 and 2016, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors.

 

     March 31, 2017  
   Parent      HWF
Issuers
     HOC      Guarantors      Non-
Guarantors
    Eliminations     Total  
     (in millions)  

ASSETS

                  

Current Assets:

                  

Cash and cash equivalents

   $      $      $ 3      $ 11      $ 848     $     $ 862  

Restricted cash and cash equivalents

                   87        10        27             124  

Accounts receivable, net

                   11        644        256             911  

Intercompany receivables

                                 40       (40      

Prepaid expenses

                   8        48        74       (1     129  

Other

                   1        5        37             43  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total current assets

                   110        718        1,282       (41     2,069  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Intangibles and Other Assets:

                  

Investments in subsidiaries

     1,588        6,975        8,127        1,588              (18,278      

Goodwill

                          3,824        1,311             5,135  

Brands

                          4,405        451             4,856  

Management and franchise contracts, net

                          683        247             930  

Other intangible assets, net

                   1        282        148             431  

Property and equipment, net

                   11        61        269             341  

Deferred income tax assets

     10        4        174               82       (188     82  

Other

            11        31        235        166             443  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total intangibles and other assets

     1,598        6,990        8,344        11,078        2,674       (18,466     12,218  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

   $ 1,598      $ 6,990      $ 8,454      $ 11,796      $ 3,956     $ (18,507   $ 14,287  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

                  

Current Liabilities:

                  

Accounts payable, accrued expenses and other

   $      $ 6      $ 176      $ 1,195      $ 422     $ (1   $ 1,798  

Intercompany payables

                   40                     (40      

Current maturities of long-term debt

            32                      9             41  

Income taxes payable

                          49        79             128  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total current liabilities

            38        216        1,244        510       (41     1,967  

Long-term debt

            5,357        982               249             6,588  

Deferred revenues

                          22                    22  

Deferred income tax liabilities

                          1,884        27       (188     1,723  

Liability for guest loyalty program

                          898                    898  

Other

            7        281        499        706             1,493  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

            5,402        1,479        4,547        1,492       (229     12,691  

Equity:

                  

Total Hilton stockholders’ equity

     1,598        1,588        6,975        7,249        2,466       (18,278     1,598  

Noncontrolling interests

                                 (2           (2
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total equity

     1,598        1,588        6,975        7,249        2,464       (18,278     1,596  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 1,598      $ 6,990      $ 8,454      $ 11,796      $ 3,956     $ (18,507   $ 14,287  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

    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 March 31, 2017  
    Parent     HWF
Issuers
    HOC     Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Revenues

             

Franchise fees

  $   —     $     $ 19     $ 255     $ 24     $ (4   $ 294  

Base and other management fees

                      50       33             83  

Incentive management fees

                      22       30             52  

Owned and leased hotels

                            300             300  

Other revenues

                20       13       4             37  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                39       340       391       (4     766  

Other revenues from managed and franchised properties

                45       1,220       130             1,395  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

                84       1,560       521       (4     2,161  

Expenses

             

Owned and leased hotels

                            272             272  

Depreciation and amortization

                1       64       24             89  

General and administrative

                79       2       24             105  

Other expenses

                12       7       8       (4     23  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                92       73       328       (4     489  

Other expenses from managed and franchised properties

                45       1,220       130             1,395  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

                137       1,293       458       (4     1,884  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

                (53     267       63             277  

Interest expense

          (63     (28           (13           (104

Gain (loss) on foreign currency transactions

                11       21       (36           (4

Loss on debt extinguishment

          (60                             (60

Other non-operating income (loss), net

          (3     1       1       2             1  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries

          (126     (69     289       16             110  

Income tax benefit (expense)

          49       27       (108     (3           (35
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before equity in earnings from subsidiaries

          (77     (42     181       13             75  

Equity in earnings from subsidiaries

    74       151       193       74             (492      
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    74       74       151       255       13       (492     75  

Net income attributable to noncontrolling interests

                            (1           (1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Hilton stockholders

  $ 74     $ 74     $ 151     $ 255     $ 12     $ (492   $ 74  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

  $ 94     $ 72     $ 155     $ 255     $ 30     $ (512   $ 94  

Comprehensive loss (income) attributable to noncontrolling interests

                                         
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Hilton stockholders

  $ 94     $ 72     $ 155     $ 255     $ 30     $ (512   $ 94  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    Three Months Ended March 31, 2016  
    Parent     HWF
Issuers
    Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Revenues

           

Franchise fees

  $     $     $ 234     $ 22     $ (3   $ 253  

Base and other management fees

                32       28             60  

Incentive management fees

                8       28             36  

Owned and leased hotels

                      319             319  

Other revenues

                14       3             17  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                288       400       (3     685  

Other revenues from managed and franchised properties

                924       117             1,041  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

                1,212       517       (3     1,726  

Expenses

           

Owned and leased hotels

                      307             307  

Depreciation and amortization

                68       24             92  

Impairment loss

                      15             15  

General and administrative

                57       26             83  

Other expenses

                9       12       (3     18  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                134       384       (3     515  

Other expenses from managed and franchised properties

                924       117             1,041  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

                1,058       501       (3     1,556  

Operating income

                154       16             170  

Interest expense

          (67     (11     (12           (90

Gain (loss) on foreign currency transactions

                5       (17           (12

Other non-operating income, net

                2                   2  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries

          (67     150       (13           70  

Income tax benefit (expense)

    192       26       (100     3             121  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before equity in earnings from subsidiaries

    192       (41     50       (10           191  

Equity in earnings (losses) from subsidiaries

          41       (9           (32      
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (losses) from continuing operations, net of taxes

    192             41       (10     (32     191  

Income from discontinued operations, net of taxes

    117       117       117       106       (338     119  

Net income

    309       117       158       96       (370     310  

Net income attributable to noncontrolling interests

                      (1           (1
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Hilton stockholders

  $ 309     $ 117     $ 158     $ 95     $ (370   $ 309  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

  $ 319     $ 111     $ 149     $ 119     $ (380   $ 318  

Comprehensive loss attributable to noncontrolling interests

                      1             1  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Hilton stockholders

  $ 319     $ 111     $ 149     $ 120     $ (380   $ 319  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    Three Months Ended March 31, 2017  
    Parent     HWF
Issuers
    HOC     Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Operating Activities:

   

Net cash provided by (used in) operating activities

  $     $     $ (102   $ 56     $ 112     $ (3   $ 63  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investing Activities:

   

Capital expenditures for property and equipment

                      (1     (8           (9

Contract acquisition costs

                      (8     (5           (13

Capitalized software costs

                      (9                 (9

Other

          (13           (6                 (19
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

          (13           (24     (13           (50
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financing Activities:

   

Borrowings

          1,823                               1,823  

Repayment of debt

          (1,823                 (1           (1,824

Debt issuance costs and redemption premium

          (66                             (66

Repayment of intercompany borrowings

                (3                 3        

Intercompany transfers

    119       79       133       (42     (289            

Dividends paid

    (49                                   (49

Cash transferred in spin-offs of Park and HGV

                            (501           (501

Repurchases of common stock

    (70                                   (70

Distributions to noncontrolling interests

                            (1           (1

Tax withholdings on share-based compensation

                (28                       (28
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

          13       102       (42     (792     3       (716
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, restricted cash and cash equivalents

                            5             5  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash, restricted cash and cash equivalents

                      (10     (688           (698
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

  $     $     $ 90     $ 21     $ 875     $   —     $ 986  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    Three Months Ended March 31, 2016  
    Parent     HWF
Issuers
    Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Operating Activities:

     

Net cash provided by (used in) operating activities

  $   —     $   —     $ (279   $ 618     $     $ 339  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investing Activities:

     

Capital expenditures for property and equipment

                      (84           (84

Contract acquisition costs

                (8     (1           (9

Capitalized software costs

                (10     (1           (11

Other

                (9     3             (6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

                (27     (83           (110
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financing Activities:

     

Repayment of debt

                      (32           (32

Intercompany transfers

    69             317       (386            

Dividends paid

    (69                             (69

Distributions to noncontrolling interests

                      (2           (2

Tax withholdings on share-based compensation

                (13                 (13
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

                304       (420           (116
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, restricted cash and cash equivalents

                      4             4  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash, restricted cash and cash equivalents

                (2     119             117  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents from continuing operations, beginning of period

                108       526             634  

Cash, restricted cash and cash equivalents from discontinued operations, beginning of period

                      222             222  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents, beginning of period

                108       748             856  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents from continuing operations, end of period

                106       576             682  

Cash, restricted cash and cash equivalents from discontinued operations, end of period

                      291             291  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents, end of period

  $     $     $ 106     $ 867     $   —     $ 973  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Note 24: 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 a guarantor of the 2021 Senior Notes, assumed the 2024 Senior Notes that were issued in August 2016 by escrow issuers and are guaranteed by the HWF Issuers and HWP. The 2021 Senior Notes and the 2024 Senior Notes are referred to as the Senior Notes. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers.

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.

The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by 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. 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”).

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 December 31, 2016 and 2015, and for the years ended December 31, 2016, 2015 and 2014, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors.

 

    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  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    December 31, 2015  
    Parent     HWF
Issuers
    Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

ASSETS

           

Current Assets:

           

Cash and cash equivalents

  $     $     $ 18     $ 495     $     $ 513  

Restricted cash and cash equivalents

                91       29             120  

Accounts receivable, net

                406       258             664  

Prepaid expenses

                36       79       (3     112  

Income taxes receivable

                120             (23     97  

Other

                3       32             35  

Current assets of discontinued operations

                      1,070       (26     1,044  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

                674       1,963       (52     2,585  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Intangibles and Other Assets:

           

Investments in subsidiaries

    6,166       11,854       6,457             (24,477      

Goodwill

                3,824       1,456             5,280  

Brands

                4,405       514             4,919  

Management and franchise contracts, net

                818       271             1,089  

Other intangible assets, net

                334       189             523  

Property and equipment, net

                73       338             411  

Deferred income tax assets

    24       3             59       (27     59  

Other

          9       200       123             332  

Non-current assets of discontinued operations

                28       10,396             10,424  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total intangibles and other assets

    6,190       11,866       16,139       13,346       (24,504     23,037  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

  $ 6,190     $ 11,866     $ 16,813     $ 15,309     $ (24,556   $ 25,622  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

           

Current Liabilities:

           

Accounts payable, accrued expenses and other

  $     $ 39     $ 1,168     $ 415     $ (3   $ 1,619  

Current maturities of long-term debt

                      7             7  

Income taxes payable

                      50       (23     27  

Current liabilities of discontinued operations

                71       767       (26     812  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

          39       1,239       1,239       (52     2,465  

Long-term debt

          5,647             240             5,887  

Deferred revenues

                251                   251  

Deferred income tax liabilities

                1,813       89       (27     1,875  

Liability for guest loyalty program

                784                   784  

Other

    205       14       808       238             1,265  

Non-current liabilities of discontinued operations

                64       7,080             7,144  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    205       5,700       4,959       8,886       (79     19,671  

Equity:

           

Total Hilton stockholders’ equity

    5,985       6,166       11,854       6,457       (24,477     5,985  

Noncontrolling interests

                      (34           (34
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

    5,985       6,166       11,854       6,423       (24,477     5,951  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

  $ 6,190     $ 11,866     $ 16,813     $ 15,309     $ (24,556   $ 25,622  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    Year Ended December 31, 2016  
    Parent     HWF
Issuers
    HOC     Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Revenues

             

Franchise fees

  $     $     $  21       $ 1,031     $ 112     $ (10   $ 1,154  

Base and other management fees

                      126       116             242  

Incentive management fees

                      16       126             142  

Owned and leased hotels

                            1,452             1,452  

Other revenues

                10       61       11             82  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                31       1,234       1,817       (10     3,072  

Other revenues from managed and franchised properties

                32       3,777       501             4,310  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

                63       5,011       2,318       (10     7,382  

Expenses

             

Owned and leased hotels

                            1,295             1,295  

Depreciation and amortization

                1       272       91             364  

Impairment loss

                            15             15  

General and administrative

                90       204       109             403  

Other expenses

                1       31       29       (10     51  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                92       507       1,539       (10     2,128  

Other expenses from managed and franchised properties

                32       3,777       501             4,310  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

                124       4,284       2,040       (10     6,438  

Gain on sales of assets, net

                            8             8  

Operating income (loss)

                (61     727       286             952  

Interest expense

          (261     (30     (51     (52       (394

Gain (loss) on foreign currency transactions

                11       (150     123             (16

Other non-operating income, net

          1       1       8       4             14  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in losses from subsidiaries

          (260     (79     534       361             556  

Income tax benefit (expense)

    193       100       32       (319     (570           (564
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before equity in losses from subsidiaries

    193       (160     (47     215       (209           (8

Equity in losses from subsidiaries

    (211     (51     (4     (211           477        
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations, net of taxes

    (18     (211     (51     4       (209     477       (8

Income from discontinued operations, net of taxes

    366       366       366       428       374       (1,528     372  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    348       155       315       432       165       (1,051     364  

Net income attributable to noncontrolling interests

                            (16           (16
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Hilton stockholders

  $ 348     $ 155     $  315     $ 432     $ 149     $ (1,051   $ 348  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

  $ 131     $ 153     $ 320     $ 361     $ 15     $ (834   $ 146  

Comprehensive income attributable to noncontrolling interests

                            (15           (15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Hilton stockholders

  $ 131     $ 153     $ 320     $ 361     $     $ (834   $ 131  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    Year Ended December 31, 2015  
    Parent     HWF
Issuers
    Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Revenues

           

Franchise fees

  $     $     $ 998     $ 101     $ (12   $ 1,087  

Base and other management fees

                125       105             230  

Incentive management fees

                18       120             138  

Owned and leased hotels

                      1,596             1,596  

Other revenues

                61       10             71  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                1,202       1,932       (12     3,122  

Other revenues from managed and franchised properties

                3,510       501             4,011  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

                4,712       2,433       (12     7,133  

Expenses

           

Owned and leased hotels

                      1,414             1,414  

Depreciation and amortization

                288       97             385  

Impairment loss

                      9             9  

General and administrative

                424       113             537  

Other expenses

                37       15       (12     40  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                749       1,648       (12     2,385  

Other expenses from managed and franchised properties

                3,510       501             4,011  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

                4,259       2,149       (12     6,396  

Gain on sales of assets, net

                      163             163  

Operating income

                453       447             900  

Interest expense

          (281     (50     (46           (377

Gain (loss) on foreign currency transactions

                77       (118           (41

Other non-operating income, net

                14       37             51  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries

          (281     494       320             533  

Income tax benefit (expense)

    (7     108       189       58             348  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before equity in earnings from subsidiaries

    (7     (173     683       378             881  

Equity in earnings from subsidiaries

    883       1,056       373             (2,312      
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations, net of taxes

    876       883       1,056       378       (2,312     881  

Income from discontinued operations, net of taxes

    528       528       528       460       (1,509     535  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    1,404       1,411       1,584       838       (3,821     1,416  

Net income attributable to noncontrolling interests

                      (12           (12
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Hilton stockholders

  $ 1,404     $ 1,411     $ 1,584     $ 826     $ (3,821   $ 1,404  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

  $ 1,248     $ 1,404     $ 1,546     $ 727     $ (3,665   $ 1,260  

Comprehensive income attributable to noncontrolling interests

                      (12           (12
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Hilton stockholders

  $ 1,248     $ 1,404     $ 1,546     $ 715     $ (3,665   $ 1,248  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    Year Ended December 31, 2014  
    Parent     HWF
Issuers
    Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Revenues

           

Franchise fees

  $     $     $ 826     $ 85     $ (6   $ 905  

Base and other management fees

                129       102       (4     227  

Incentive management fees

                17       116             133  

Owned and leased hotels

                      1,776             1,776  

Other revenues

                71       9             80  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                1,043       2,088       (10     3,121  

Other revenues from managed and franchised properties

                3,120       447             3,567  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

                4,163       2,535       (10     6,688  

Expenses

           

Owned and leased hotels

                      1,586             1,586  

Depreciation and amortization

                263       100             363  

General and administrative

                303       108             411  

Other expenses

                49       19       (10     58  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                615       1,813       (10     2,418  

Other expenses from managed and franchised properties

                3,120       447             3,567  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

                3,735       2,260       (10     5,985  

Operating income

                428       275             703  

Interest expense

          (334     (54     (28           (416

Gain (loss) on foreign currency transactions

                443       (417           26  

Other non-operating income, net

                9       11             20  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries

          (334     826       (159           333  

Income tax benefit (expense)

    (5     128       (306     29             (154
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before equity in earnings from subsidiaries

    (5     (206     520       (130           179  

Equity in earnings (losses) from subsidiaries

    179       385       (135           (429      
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations, net of taxes

     174        179       385       (130     (429     179  

Income from discontinued operations, net of taxes

    499       499       499       450       (1,444     503  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    673       678       884       320       (1,873     682  

Net income attributable to noncontrolling interests

                      (9           (9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Hilton stockholders

  $ 673     $ 678     $ 884     $ 311     $ (1,873   $ 673  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

  $ 315     $ 669     $ 813     $ 47     $ (1,515   $ 329  

Comprehensive income attributable to noncontrolling interests

                      (14           (14
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to Hilton stockholders

  $ 315     $ 669     $ 813     $ 33     $ (1,515   $ 315  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    Year Ended December 31, 2016  
    Parent     HWF
Issuers
    HOC     Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Operating Activities:

             

Net cash provided by (used in) operating activities

  $     $ (37   $     $ 912     $ 1,095     $ (605   $ 1,365  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investing Activities:

             

Capital expenditures for property and equipment

                      (9     (308           (317

Issuance of intercompany receivables

                      (192     (42     234        

Payments received on intercompany receivables

                      192             (192      

Proceeds from asset dispositions

                            11             11  

Contract acquisition costs

                      (46     (9           (55

Capitalized software costs

                      (73     (8           (81

Other

          (6           (35     5             (36
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

          (6           (163     (351     42       (478
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financing Activities:

             

Borrowings

                1,000             3,715             4,715  

Repayment of debt

          (266                 (4,093           (4,359

Debt issuance costs

          (17     (20           (39           (76

Intercompany borrowings

                      42       192       (234      

Repayment of intercompany borrowings

                            (192     192        

Intercompany transfers

    277       326       (890     (854     1,141              

Dividends paid

    (277                                   (277

Intercompany dividends

                            (605     605        

Distributions to noncontrolling interests

                            (32           (32

Tax withholdings on share-based compensation

                      (15                 (15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

          43       90       (827     87       563       (44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, restricted cash and cash equivalents

                            (15           (15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash, restricted cash and cash equivalents

                90       (78     816             828  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents from continuing operations, beginning of period

                      109       524             633  

Cash, restricted cash and cash equivalents from discontinued operations, beginning of period

                            223             223  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents, beginning of period

                      109       747             856  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents from continuing operations, end of period

                90       31       1,062             1,183  

Cash, restricted cash and cash equivalents from discontinued operations, end of period

                            501             501  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents, end of period

  $     $     $ 90     $ 31     $ 1,563     $     $ 1,684  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    Year Ended December 31, 2015  
    Parent     HWF
Issuers
    Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Operating Activities:

 

Net cash provided by operating activities

  $     $ 184     $ 975     $ 723     $ (436   $ 1,446  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investing Activities:

 

Capital expenditures for property and equipment

                (11     (299           (310

Acquisitions, net of cash acquired

                      (1,402           (1,402

Proceeds from asset dispositions

                      2,205             2,205  

Contract acquisition costs

                (23     (14           (37

Capitalized software costs

                (57     (5           (62

Other

                13       7             20  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

                (78     492             414  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financing Activities:

 

Borrowings

                      48             48  

Repayment of debt

          (775           (849           (1,624

Intercompany transfers

    138       591       (693     (36            

Dividends paid

    (138                             (138

Intercompany dividends

                (184     (252     436        

Distributions to noncontrolling interests

                      (8           (8

Tax withholdings on share-based compensation

                (31                 (31
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

          (184     (908     (1,097     436       (1,753
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, restricted cash and cash equivalents

                      (19           (19
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash, restricted cash and cash equivalents

                (11     99             88  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents from continuing operations, beginning of period

                119       509             628  

Cash, restricted cash and cash equivalents from discontinued operations, beginning of period

                1       139             140  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents, beginning of period

                120       648             768  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents from continuing operations, end of period

                109       524             633  

Cash, restricted cash and cash equivalents from discontinued operations, end of period

                      223             223  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents, end of period

  $     $     $ 109     $ 747     $     $ 856  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    Year Ended December 31, 2014  
    Parent     HWF
Issuers
    Guarantors     Non-
Guarantors
    Eliminations     Total  
    (in millions)  

Operating Activities:

           

Net cash provided by operating activities

  $  —     $  —     $ 1,085     $ 522     $ (300   $ 1,307  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Investing Activities:

           

Capital expenditures for property and equipment

                (5     (263           (268

Proceeds from asset dispositions

                4       40             44  

Contract acquisition costs

                (19     (46           (65

Capitalized software costs

                (64     (5           (69

Other

                11       37             48  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

                (73     (237           (310
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financing Activities:

           

Borrowings

                      350             350  

Repayment of debt

          (1,000           (424           (1,424

Debt issuance costs

          (6           (3           (9

Capital contribution

                      22       (9     13  

Intercompany transfers

          1,006       (1,094     88              

Intercompany dividends

                      (309     309        

Distributions to noncontrolling interests

                      (5           (5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

                (1,094     (281     300       (1,075
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash, restricted cash and cash equivalents

                      (14           (14
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash, restricted cash and cash equivalents

                (82     (10           (92
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents from continuing operations, beginning of period

                201       505             706  

Cash, restricted cash and cash equivalents from discontinued operations, beginning of period

                1       153             154  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents, beginning of period

                202       658             860  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents from continuing operations, end of period

                119       509             628  

Cash, restricted cash and cash equivalents from discontinued operations, end of period

                1       139             140  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, restricted cash and cash equivalents, end of period

  $     $     $ 120     $ 648     $     $ 768