Consolidated Variable Interest Entities and Investments in Affiliates

12 Months Ended

Dec. 31, 2017

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Consolidated Variable Interest Entities and Investments in Affiliates

Note 6: Consolidated Variable Interest Entities and Investments in Affiliates

Consolidated VIEs

We consolidate three VIEs that own hotels in the U.S. We are the primary beneficiary of these 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 these entities. Our consolidated balance sheets include the following assets and liabilities of these entities:

	December 31,
	2017		2016
	(in millions)
Property and equipment, net	$	215	$	208
Cash and cash equivalents		14		14
Restricted cash		7		13
Accounts receivable, net		2		2
Prepaid expenses		2		2
Other assets		5		—
Debt		207		207
Accounts payable and accrued expenses		15		6
Deferred income tax liabilities		—		49

During the years ended December 31, 2017 and 2016, we did not provide any financial or other support to these VIEs that we were not previously contractually required to provide, nor do we intend to provide any such support in the future.

Unconsolidated Entities

Investments in affiliates were:

		December 31,
	Ownership %	2017		2016
		(in millions)
Hilton Berlin	40%	$	33	$	31
Hilton San Diego Bayfront	25%		20		20
All others (7 hotels)	20% - 50%		31		30
		$	84	$	81

The affiliates in which we own investments accounted for under the equity method had total debt of approximately $962 million and $861 million as of December 31, 2017 and 2016, respectively. Substantially all of the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us.