Property and Equipment

9 Months Ended

Sep. 30, 2017

Property Plant And Equipment [Abstract]

Note 3: Property and Equipment

Property and equipment were:

	September 30, 2017			December 31, 2016
	(in millions)
Land	$	3,398		$	3,397
Buildings and leasehold improvements		6,093			6,015
Furniture and equipment		992			922
Construction-in-progress		72			79
		10,555			10,413
Accumulated depreciation and amortization		(2,091	)		(1,872	)
	$	8,464		$	8,541

Depreciation of property and equipment, including capital lease assets, was $72 million and $71 million during the three months ended September 30, 2017 and 2016, respectively, and $213 million and $216 million during the nine months ended September 30, 2017 and 2016, respectively.

As of September 30, 2017 and December 31, 2016, property and equipment included approximately $20 million and $19 million, respectively, of capital lease assets primarily consisting of buildings and leasehold improvements, net of $9 million and $8 million, respectively, of accumulated depreciation.

In July 2017, 14 of the 600 rooms at the Hilton Waikoloa Village previously transferred to Hilton Grand Vacations (“HGV”) and leased back by us were released to HGV. Accordingly, we derecognized $4 million of property and equipment, net, and the related liability due to HGV. Additionally, in October 2017, another 120 rooms were released to HGV. As a result, we expect to derecognize approximately $34 million of property and equipment, net, in the fourth quarter of 2017.