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
¨
|
|
June 30,
|
|
December 31,
|
||||
2015
|
2014
|
||||||
|
(unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
511
|
|
|
$
|
566
|
|
Restricted cash and cash equivalents
|
248
|
|
|
202
|
|
||
Accounts receivable, net of allowance for doubtful accounts of $30 and $29
|
937
|
|
|
844
|
|
||
Inventories
|
424
|
|
|
404
|
|
||
Deferred income tax assets
|
20
|
|
|
20
|
|
||
Current portion of financing receivables, net
|
66
|
|
|
66
|
|
||
Current portion of securitized financing receivables, net
|
59
|
|
|
62
|
|
||
Prepaid expenses
|
146
|
|
|
133
|
|
||
Income taxes receivable
|
38
|
|
|
132
|
|
||
Other
|
52
|
|
|
70
|
|
||
Total current assets (variable interest entities - $133 and $136)
|
2,501
|
|
|
2,499
|
|
||
Property, Intangibles and Other Assets:
|
|
|
|
||||
Property and equipment, net
|
9,191
|
|
|
7,483
|
|
||
Property and equipment, net held for sale
|
111
|
|
|
1,543
|
|
||
Financing receivables, net
|
502
|
|
|
416
|
|
||
Securitized financing receivables, net
|
347
|
|
|
406
|
|
||
Investments in affiliates
|
156
|
|
|
170
|
|
||
Goodwill
|
5,945
|
|
|
6,154
|
|
||
Brands
|
4,940
|
|
|
4,963
|
|
||
Management and franchise contracts, net
|
1,217
|
|
|
1,306
|
|
||
Other intangible assets, net
|
629
|
|
|
674
|
|
||
Deferred income tax assets
|
154
|
|
|
155
|
|
||
Other
|
358
|
|
|
356
|
|
||
Total property, intangibles and other assets (variable interest entities - $538 and $613)
|
23,550
|
|
|
23,626
|
|
||
TOTAL ASSETS
|
$
|
26,051
|
|
|
$
|
26,125
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable, accrued expenses and other
|
$
|
2,260
|
|
|
$
|
2,099
|
|
Current maturities of long-term debt
|
10
|
|
|
10
|
|
||
Current maturities of non-recourse debt
|
136
|
|
|
127
|
|
||
Income taxes payable
|
20
|
|
|
21
|
|
||
Total current liabilities (variable interest entities - $177 and $162)
|
2,426
|
|
|
2,257
|
|
||
Long-term debt
|
10,400
|
|
|
10,803
|
|
||
Non-recourse debt
|
644
|
|
|
752
|
|
||
Deferred revenues
|
395
|
|
|
495
|
|
||
Deferred income tax liabilities
|
5,192
|
|
|
5,216
|
|
||
Liability for guest loyalty program
|
744
|
|
|
720
|
|
||
Other
|
1,181
|
|
|
1,168
|
|
||
Total liabilities (variable interest entities - $681 and $788)
|
20,982
|
|
|
21,411
|
|
||
Commitments and contingencies - see Note 18
|
|
|
|
|
|
||
Equity:
|
|
|
|
||||
Preferred stock, $0.01 par value; 3,000,000,000 authorized shares, none issued or outstanding as of June 30, 2015 and December 31, 2014
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 30,000,000,000 authorized shares, 987,479,736 issued and 987,450,969 outstanding as of June 30, 2015 and 984,623,863 issued and outstanding as of December 31, 2014
|
10
|
|
|
10
|
|
||
Additional paid-in capital
|
10,115
|
|
|
10,028
|
|
||
Accumulated deficit
|
(4,347
|
)
|
|
(4,658
|
)
|
||
Accumulated other comprehensive loss
|
(673
|
)
|
|
(628
|
)
|
||
Total Hilton stockholders' equity
|
5,105
|
|
|
4,752
|
|
||
Noncontrolling interests
|
(36
|
)
|
|
(38
|
)
|
||
Total equity
|
5,069
|
|
|
4,714
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
26,051
|
|
|
$
|
26,125
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Owned and leased hotels
|
$
|
1,135
|
|
|
$
|
1,117
|
|
|
$
|
2,092
|
|
|
$
|
2,062
|
|
Management and franchise fees and other
|
407
|
|
|
354
|
|
|
778
|
|
|
666
|
|
||||
Timeshare
|
319
|
|
|
276
|
|
|
640
|
|
|
555
|
|
||||
|
1,861
|
|
|
1,747
|
|
|
3,510
|
|
|
3,283
|
|
||||
Other revenues from managed and franchised properties
|
1,061
|
|
|
920
|
|
|
2,011
|
|
|
1,747
|
|
||||
Total revenues
|
2,922
|
|
|
2,667
|
|
|
5,521
|
|
|
5,030
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Owned and leased hotels
|
817
|
|
|
833
|
|
|
1,585
|
|
|
1,604
|
|
||||
Timeshare
|
220
|
|
|
188
|
|
|
454
|
|
|
365
|
|
||||
Depreciation and amortization
|
173
|
|
|
158
|
|
|
348
|
|
|
311
|
|
||||
General, administrative and other
|
221
|
|
|
133
|
|
|
348
|
|
|
230
|
|
||||
|
1,431
|
|
|
1,312
|
|
|
2,735
|
|
|
2,510
|
|
||||
Other expenses from managed and franchised properties
|
1,061
|
|
|
920
|
|
|
2,011
|
|
|
1,747
|
|
||||
Total expenses
|
2,492
|
|
|
2,232
|
|
|
4,746
|
|
|
4,257
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gain (loss) on sales of assets, net
|
(3
|
)
|
|
—
|
|
|
142
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating income
|
427
|
|
|
435
|
|
|
917
|
|
|
773
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest income
|
2
|
|
|
5
|
|
|
8
|
|
|
6
|
|
||||
Interest expense
|
(149
|
)
|
|
(158
|
)
|
|
(293
|
)
|
|
(311
|
)
|
||||
Equity in earnings from unconsolidated affiliates
|
9
|
|
|
8
|
|
|
13
|
|
|
12
|
|
||||
Gain (loss) on foreign currency transactions
|
5
|
|
|
32
|
|
|
(13
|
)
|
|
46
|
|
||||
Other gain (loss), net
|
18
|
|
|
11
|
|
|
(7
|
)
|
|
14
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
312
|
|
|
333
|
|
|
625
|
|
|
540
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax expense
|
(145
|
)
|
|
(121
|
)
|
|
(308
|
)
|
|
(204
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
167
|
|
|
212
|
|
|
317
|
|
|
336
|
|
||||
Net income attributable to noncontrolling interests
|
(6
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(4
|
)
|
||||
Net income attributable to Hilton stockholders
|
$
|
161
|
|
|
$
|
209
|
|
|
$
|
311
|
|
|
$
|
332
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.16
|
|
|
$
|
0.21
|
|
|
$
|
0.32
|
|
|
$
|
0.34
|
|
Diluted
|
$
|
0.16
|
|
|
$
|
0.21
|
|
|
$
|
0.31
|
|
|
$
|
0.34
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net income
|
$
|
167
|
|
|
$
|
212
|
|
|
$
|
317
|
|
|
$
|
336
|
|
Other comprehensive income (loss), net of tax benefit (expense):
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustment, net of tax of
$121, $66, $30 and $102
|
192
|
|
|
53
|
|
|
(42
|
)
|
|
81
|
|
||||
Pension liability adjustment, net of tax of $—, $(1), $(1) and $(1)
|
1
|
|
|
3
|
|
|
2
|
|
|
4
|
|
||||
Cash flow hedge adjustment, net of tax of $(1), $3, $3 and $5
|
2
|
|
|
(6
|
)
|
|
(5
|
)
|
|
(9
|
)
|
||||
Total other comprehensive income (loss)
|
195
|
|
|
50
|
|
|
(45
|
)
|
|
76
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
362
|
|
|
262
|
|
|
272
|
|
|
412
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
(6
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(2
|
)
|
||||
Comprehensive income attributable to Hilton stockholders
|
$
|
356
|
|
|
$
|
259
|
|
|
$
|
266
|
|
|
$
|
410
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
317
|
|
|
$
|
336
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
348
|
|
|
311
|
|
||
Gain on sales of assets, net
|
(142
|
)
|
|
—
|
|
||
Equity in earnings from unconsolidated affiliates
|
(13
|
)
|
|
(12
|
)
|
||
Loss (gain) on foreign currency transactions
|
13
|
|
|
(46
|
)
|
||
Other loss (gain), net
|
7
|
|
|
(14
|
)
|
||
Share-based compensation
|
100
|
|
|
41
|
|
||
Distributions from unconsolidated affiliates
|
20
|
|
|
11
|
|
||
Deferred income taxes
|
10
|
|
|
(42
|
)
|
||
Change in restricted cash and cash equivalents
|
(9
|
)
|
|
(1
|
)
|
||
Working capital changes and other
|
(3
|
)
|
|
(72
|
)
|
||
Net cash provided by operating activities
|
648
|
|
|
512
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Capital expenditures for property and equipment
|
(159
|
)
|
|
(110
|
)
|
||
Acquisitions, net of cash acquired
|
(1,410
|
)
|
|
—
|
|
||
Payments received on other financing receivables
|
2
|
|
|
2
|
|
||
Issuance of other financing receivables
|
(6
|
)
|
|
(1
|
)
|
||
Investments in affiliates
|
(5
|
)
|
|
(5
|
)
|
||
Distributions from unconsolidated affiliates
|
9
|
|
|
11
|
|
||
Proceeds from asset dispositions
|
1,869
|
|
|
35
|
|
||
Contract acquisition costs
|
(19
|
)
|
|
(21
|
)
|
||
Software capitalization costs
|
(23
|
)
|
|
(32
|
)
|
||
Net cash provided by (used in) investing activities
|
258
|
|
|
(121
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Borrowings
|
34
|
|
|
350
|
|
||
Repayment of debt
|
(961
|
)
|
|
(783
|
)
|
||
Debt issuance costs
|
—
|
|
|
(2
|
)
|
||
Change in restricted cash and cash equivalents
|
(29
|
)
|
|
(17
|
)
|
||
Capital contribution
|
—
|
|
|
13
|
|
||
Distributions to noncontrolling interests
|
(4
|
)
|
|
(2
|
)
|
||
Excess tax benefits from share-based compensation
|
8
|
|
|
—
|
|
||
Net cash used in financing activities
|
(952
|
)
|
|
(441
|
)
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(9
|
)
|
|
1
|
|
||
Net decrease in cash and cash equivalents
|
(55
|
)
|
|
(49
|
)
|
||
Cash and cash equivalents, beginning of period
|
566
|
|
|
594
|
|
||
|
|
|
|
||||
Cash and cash equivalents, end of period
|
$
|
511
|
|
|
$
|
545
|
|
|
|
|
|
||||
Supplemental Disclosures
|
|
|
|
||||
Cash paid during the year:
|
|
|
|
||||
Interest
|
$
|
231
|
|
|
$
|
257
|
|
Income taxes, net of refunds
|
197
|
|
|
141
|
|
||
|
|
|
|
||||
Non-cash investing activities:
|
|
|
|
||||
Long-term debt assumed
|
(450
|
)
|
|
—
|
|
||
Capital lease restructuring
|
—
|
|
|
11
|
|
||
|
|
|
|
||||
Non-cash financing activities:
|
|
|
|
||||
Long-term debt assumed
|
450
|
|
|
—
|
|
||
Capital lease restructuring
|
(24
|
)
|
|
11
|
|
|
Equity Attributable to Hilton Stockholders
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
Additional
Paid-in
Capital
|
|
Accumulated Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
|
|
|
|||||||||||||
|
Common Stock
|
|
|
|
|
Noncontrolling
Interests
|
|
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|
Total
|
|||||||||||||||||
Balance as of December 31, 2014
|
985
|
|
|
$
|
10
|
|
|
$
|
10,028
|
|
|
$
|
(4,658
|
)
|
|
$
|
(628
|
)
|
|
$
|
(38
|
)
|
|
$
|
4,714
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
311
|
|
|
—
|
|
|
6
|
|
|
317
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
(42
|
)
|
||||||
Pension liability adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Cash flow hedge adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
(45
|
)
|
||||||
Share-based compensation
|
2
|
|
|
—
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79
|
|
||||||
Excess tax benefits on equity awards
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||
Balance as of June 30, 2015
|
987
|
|
|
$
|
10
|
|
|
$
|
10,115
|
|
|
$
|
(4,347
|
)
|
|
$
|
(673
|
)
|
|
$
|
(36
|
)
|
|
$
|
5,069
|
|
|
Equity Attributable to Hilton Stockholders
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
Additional
Paid-in
Capital
|
|
Accumulated Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
|
|
|
|||||||||||||
|
Common Stock
|
|
|
|
|
Noncontrolling
Interests
|
|
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|
Total
|
|||||||||||||||||
Balance as of December 31, 2013
|
985
|
|
|
$
|
10
|
|
|
$
|
9,948
|
|
|
$
|
(5,331
|
)
|
|
$
|
(264
|
)
|
|
$
|
(87
|
)
|
|
$
|
4,276
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
332
|
|
|
—
|
|
|
4
|
|
|
336
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
(2
|
)
|
|
81
|
|
||||||
Pension liability adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||
Cash flow hedge adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
(2
|
)
|
|
76
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||||
Capital contribution
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Balance as of June 30, 2014
|
985
|
|
|
$
|
10
|
|
|
$
|
10,009
|
|
|
$
|
(4,999
|
)
|
|
$
|
(186
|
)
|
|
$
|
(87
|
)
|
|
$
|
4,747
|
|
•
|
the resort complex consisting of the Waldorf Astoria Orlando and the Hilton Orlando Bonnet Creek in Orlando, Florida (the "Bonnet Creek Resort");
|
•
|
the Casa Marina Resort in Key West, Florida;
|
•
|
the Reach Resort in Key West, Florida; and
|
•
|
the Parc 55 hotel in San Francisco, California.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30, 2015
|
|
June 30, 2015
|
||||
|
(in millions)
|
||||||
Total revenues
|
$
|
89
|
|
|
$
|
144
|
|
Income before income taxes
|
19
|
|
|
34
|
|
(1)
|
Amounts included in other current assets in our condensed consolidated balance sheet as of June 30, 2015.
|
(2)
|
Amounts included in accounts payable, accrued liabilities and other in our condensed consolidated balance sheet as of June 30, 2015.
|
|
June 30,
|
|
December 31,
|
||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Land
|
$
|
3,487
|
|
|
$
|
3,009
|
|
Buildings and leasehold improvements
|
6,346
|
|
|
5,150
|
|
||
Furniture and equipment
|
1,249
|
|
|
1,140
|
|
||
Construction-in-progress
|
98
|
|
|
53
|
|
||
|
11,180
|
|
|
9,352
|
|
||
Accumulated depreciation and amortization
|
(1,989
|
)
|
|
(1,869
|
)
|
||
|
$
|
9,191
|
|
|
$
|
7,483
|
|
|
June 30, 2015
|
||||||||||||||
|
Securitized Timeshare
|
|
Unsecuritized Timeshare
(1)
|
|
Other
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Financing receivables
|
$
|
366
|
|
|
$
|
536
|
|
|
$
|
34
|
|
|
$
|
936
|
|
Less: allowance
|
(19
|
)
|
|
(67
|
)
|
|
(1
|
)
|
|
(87
|
)
|
||||
|
347
|
|
|
469
|
|
|
33
|
|
|
849
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Current portion of financing receivables
|
62
|
|
|
73
|
|
|
2
|
|
|
137
|
|
||||
Less: allowance
|
(3
|
)
|
|
(9
|
)
|
|
—
|
|
|
(12
|
)
|
||||
|
59
|
|
|
64
|
|
|
2
|
|
|
125
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total financing receivables
|
$
|
406
|
|
|
$
|
533
|
|
|
$
|
35
|
|
|
$
|
974
|
|
|
December 31, 2014
|
||||||||||||||
|
Securitized Timeshare
|
|
Unsecuritized Timeshare
(1)
|
|
Other
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Financing receivables
|
$
|
430
|
|
|
$
|
454
|
|
|
$
|
22
|
|
|
$
|
906
|
|
Less: allowance
|
(24
|
)
|
|
(58
|
)
|
|
(2
|
)
|
|
(84
|
)
|
||||
|
406
|
|
|
396
|
|
|
20
|
|
|
822
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Current portion of financing receivables
|
66
|
|
|
74
|
|
|
2
|
|
|
142
|
|
||||
Less: allowance
|
(4
|
)
|
|
(10
|
)
|
|
—
|
|
|
(14
|
)
|
||||
|
62
|
|
|
64
|
|
|
2
|
|
|
128
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total financing receivables
|
$
|
468
|
|
|
$
|
460
|
|
|
$
|
22
|
|
|
$
|
950
|
|
(1)
|
Included in this balance
, we had
$164 million
of gross timeshare financing receivables secured under our revolving non-recourse timeshare financing receivables credit facility (the "Timeshare Facility"), as of
June 30, 2015
and
December 31, 2014
.
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Beginning balance
|
$
|
96
|
|
|
$
|
92
|
|
Write-offs
|
(15
|
)
|
|
(16
|
)
|
||
Provision for uncollectibles on sales
|
17
|
|
|
15
|
|
||
Ending balance
|
$
|
98
|
|
|
$
|
91
|
|
|
Securitized Timeshare
|
|
Unsecuritized Timeshare
|
||||
Year
|
(in millions)
|
||||||
2015 (remaining)
|
$
|
30
|
|
|
$
|
45
|
|
2016
|
63
|
|
|
59
|
|
||
2017
|
65
|
|
|
63
|
|
||
2018
|
64
|
|
|
64
|
|
||
2019
|
60
|
|
|
64
|
|
||
Thereafter
|
146
|
|
|
314
|
|
||
|
428
|
|
|
609
|
|
||
Less: allowance
|
(22
|
)
|
|
(76
|
)
|
||
|
$
|
406
|
|
|
$
|
533
|
|
|
June 30,
|
|
December 31,
|
||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Current
|
$
|
997
|
|
|
$
|
980
|
|
30 - 89 days past due
|
9
|
|
|
13
|
|
||
90 - 119 days past due
|
3
|
|
|
2
|
|
||
120 days and greater past due
|
28
|
|
|
29
|
|
||
|
$
|
1,037
|
|
|
$
|
1,024
|
|
|
June 30,
|
|
December 31,
|
||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Equity investments
|
$
|
143
|
|
|
$
|
153
|
|
Other investments
|
13
|
|
|
17
|
|
||
|
$
|
156
|
|
|
$
|
170
|
|
|
June 30,
|
|
December 31,
|
||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Cash and cash equivalents
|
$
|
30
|
|
|
$
|
26
|
|
Property and equipment, net
|
44
|
|
|
49
|
|
||
Non-recourse debt
|
205
|
|
|
237
|
|
|
June 30,
|
|
December 31,
|
||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Restricted cash and cash equivalents
|
$
|
17
|
|
|
$
|
20
|
|
Securitized financing receivables, net
|
406
|
|
|
468
|
|
||
Non-recourse debt
|
414
|
|
|
481
|
|
|
June 30,
|
|
December 31,
|
||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Senior secured term loan facility with a rate of 3.50%, due 2020
|
$
|
4,675
|
|
|
$
|
5,000
|
|
Senior notes with a rate of 5.625%, due 2021
|
1,500
|
|
|
1,500
|
|
||
Commercial mortgage-backed securities loan with an average rate of 4.06%, due 2018
(1)
|
3,487
|
|
|
3,487
|
|
||
Mortgage loans with an average rate of 3.99%, due 2016 to 2020
(2)
|
647
|
|
|
721
|
|
||
Other unsecured notes with a rate of 7.50%, due 2017
|
54
|
|
|
54
|
|
||
Capital lease obligations with an average rate of 6.12%, due 2015 to 2097
|
66
|
|
|
72
|
|
||
|
10,429
|
|
|
10,834
|
|
||
Less: current maturities of long-term debt
|
(10
|
)
|
|
(10
|
)
|
||
Less: unamortized discount on senior secured term loan facility
|
(19
|
)
|
|
(21
|
)
|
||
|
$
|
10,400
|
|
|
$
|
10,803
|
|
(1)
|
The initial maturity date of the variable-rate component of this borrowing is November 1, 2015. We assumed all extensions, which are solely at our option, were exercised.
|
(2)
|
For mortgage loans with extensions that are solely at our option, we assumed they were exercised.
|
|
June 30,
|
|
December 31,
|
||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Capital lease obligations of consolidated VIEs with a rate of 6.34%, due 2018 to 2026
|
$
|
185
|
|
|
$
|
216
|
|
Non-recourse debt of consolidated VIEs with an average rate of 3.75%, due 2015 to 2018
(1)
|
31
|
|
|
32
|
|
||
Timeshare Facility with a rate of 1.19%, due 2017
|
150
|
|
|
150
|
|
||
Securitized Timeshare Debt with an average rate of 1.97%, due 2026
|
414
|
|
|
481
|
|
||
|
780
|
|
|
879
|
|
||
Less: current maturities of non-recourse debt
|
(136
|
)
|
|
(127
|
)
|
||
|
$
|
644
|
|
|
$
|
752
|
|
(1)
|
Excludes the non-recourse debt of our VIEs that issued the Securitized Timeshare Debt, as it is presented separately.
|
Year
|
(in millions)
|
||
2015 (remaining)
|
$
|
88
|
|
2016
|
213
|
|
|
2017
|
349
|
|
|
2018
(1)
|
3,563
|
|
|
2019
(1)
|
481
|
|
|
Thereafter
|
6,515
|
|
|
|
$
|
11,209
|
|
(1)
|
We assumed all extensions on the CMBS Loan and Bonnet Creek Loan for purposes of calculating maturity dates.
|
•
|
one
interest rate cap in the notional amount of
$875 million
, for the variable-rate component of the CMBS Loan, that expires in November 2015 and caps one-month LIBOR at
6.0 percent
;
|
•
|
one
interest rate cap in the notional amount of
$525 million
that expires in November 2015 and caps one-month LIBOR at
4.0 percent
; and
|
•
|
one
interest rate cap in the notional amount of
$338 million
that expires in May 2016 and caps one-month LIBOR at
3.0 percent
on the Bonnet Creek Loan.
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||
|
Balance Sheet Classification
|
|
Fair Value
|
|
Balance Sheet Classification
|
|
Fair Value
|
||||
|
|
|
(in millions)
|
|
|
|
(in millions)
|
||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
||||
Interest rate swaps
|
Other liabilities
|
|
$
|
12
|
|
|
Other liabilities
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
||||
Non-designated Hedges:
|
|
|
|
|
|
|
|
||||
Interest rate caps
(1)
|
Other assets
|
|
—
|
|
|
Other assets
|
|
—
|
|
||
Forward contracts
(1)
|
Other assets
|
|
—
|
|
|
Other assets
|
|
—
|
|
||
Forward contracts
(2)
|
Accounts payable, accrued expenses and other
|
|
2
|
|
|
Accounts payable, accrued expenses and other
|
|
—
|
|
(1)
|
The fair values of our interest rate caps and forward contracts were less than $1 million as of
June 30, 2015
and
December 31, 2014
.
|
(2)
|
The fair values of our forward contracts were less than $1 million as of
December 31, 2014
.
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
Classification of Gain (Loss) Recognized
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
(1)
|
Other comprehensive income (loss)
|
|
$
|
3
|
|
|
$
|
(9
|
)
|
|
$
|
(8
|
)
|
|
$
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-designated Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate caps
|
Other gain (loss), net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Forward contracts
|
Gain (loss) on foreign currency transactions
|
|
8
|
|
|
N/A
|
|
|
6
|
|
|
N/A
|
|
(1)
|
There were
no
amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three and
six months ended June 30, 2015
and
2014
.
|
|
June 30, 2015
|
||||||||||||||
|
|
|
Hierarchy Level
|
||||||||||||
|
Carrying Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in millions)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
250
|
|
|
$
|
—
|
|
|
$
|
250
|
|
|
$
|
—
|
|
Restricted cash equivalents
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
Timeshare financing receivables
|
1,037
|
|
|
—
|
|
|
—
|
|
|
1,036
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
(1)
|
10,344
|
|
|
1,623
|
|
|
—
|
|
|
8,862
|
|
||||
Non-recourse debt
(2)
|
564
|
|
|
—
|
|
|
—
|
|
|
561
|
|
||||
Interest rate swaps
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
December 31, 2014
|
||||||||||||||
|
|
|
Hierarchy Level
|
||||||||||||
|
Carrying Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in millions)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
326
|
|
|
$
|
—
|
|
|
$
|
326
|
|
|
$
|
—
|
|
Restricted cash equivalents
|
38
|
|
|
—
|
|
|
38
|
|
|
—
|
|
||||
Timeshare financing receivables
|
1,024
|
|
|
—
|
|
|
—
|
|
|
1,021
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
(1)
|
10,741
|
|
|
1,630
|
|
|
—
|
|
|
9,207
|
|
||||
Non-recourse debt
(2)
|
631
|
|
|
—
|
|
|
—
|
|
|
626
|
|
||||
Interest rate swaps
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
(1)
|
Excludes capital lease obligations with a carrying value of
$66 million
and
$72 million
as of
June 30, 2015
and
December 31, 2014
, respectively.
|
(2)
|
Excludes capital lease obligations of consolidated VIEs with a carrying value of
$185 million
and
$216 million
as of
June 30, 2015
and
December 31, 2014
, respectively, and non-recourse debt of consolidated VIEs with a carrying value of
$31 million
and
$32 million
, respectively.
|
|
Fair Value
(1)
|
||
|
(in millions)
|
||
Property and equipment
|
$
|
1,868
|
|
Long-term debt
|
450
|
|
(1)
|
Fair values were estimated using significant unobservable inputs (Level 3).
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
|
Domestic Plan
|
|
U.K. Plan
|
|
International Plans
|
|
Domestic Plan
|
|
U.K. Plan
|
|
International Plans
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Service cost
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Interest cost
|
4
|
|
|
4
|
|
|
1
|
|
|
4
|
|
|
4
|
|
|
1
|
|
||||||
Expected return on plan assets
|
(5
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|
(1
|
)
|
||||||
Amortization of prior service cost
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net loss
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Settlement losses
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic pension cost (credit)
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
|
Domestic Plan
|
|
U.K. Plan
|
|
International Plans
|
|
Domestic Plan
|
|
U.K. Plan
|
|
International Plans
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Service cost
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Interest cost
|
8
|
|
|
8
|
|
|
2
|
|
|
8
|
|
|
9
|
|
|
2
|
|
||||||
Expected return on plan assets
|
(10
|
)
|
|
(12
|
)
|
|
(2
|
)
|
|
(9
|
)
|
|
(12
|
)
|
|
(2
|
)
|
||||||
Amortization of prior service cost
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net loss
|
2
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Settlement losses
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic pension cost (credit)
|
$
|
5
|
|
|
$
|
(3
|
)
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
(3
|
)
|
|
$
|
2
|
|
Expected volatility
(1)
|
28.00
|
%
|
Dividend yield
(2)
|
—
|
%
|
Risk-free rate
(3)
|
1.67
|
%
|
Expected term (in years)
(4)
|
6.0
|
|
(1)
|
Due to limited trading history of our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption in addition to our historical volatility. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation.
|
(2)
|
At the date of grant we had no plans to pay dividends during the expected term of these options.
|
(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.
|
Expected volatility
(1)
|
24.00
|
%
|
Dividend yield
(2)
|
—
|
%
|
Risk-free rate
(3)
|
1.04
|
%
|
Expected term (in years)
(4)
|
2.8
|
|
(1)
|
Due to limited trading history of our common stock, we did not have sufficient information available on which to base a reasonable and supportable estimate of the expected volatility of our share price. As a result, we used an average historical volatility of our peer group over a time period consistent with our expected term assumption in addition to our historical volatility. Our peer group was determined based upon companies in our industry with similar business models and is consistent with those used to benchmark our executive compensation.
|
(2)
|
At the date of grant we had no plans to pay dividends during the expected term of these performance shares.
|
(3)
|
Based on the yields of U.S. Department of Treasury instruments with similar expected lives.
|
(4)
|
Midpoint of the 30-calendar day period preceding the end of the performance period.
|
|
Achievement Percentage
|
Performance shares granted in 2014
|
150%
|
Performance shares granted in 2015
|
125%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions, except per share amounts)
|
||||||||||||||
Basic EPS:
|
|
|
|
|
|
|
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Hilton stockholders
|
$
|
161
|
|
|
$
|
209
|
|
|
$
|
311
|
|
|
$
|
332
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
987
|
|
|
985
|
|
|
986
|
|
|
985
|
|
||||
Basic EPS
|
$
|
0.16
|
|
|
$
|
0.21
|
|
|
$
|
0.32
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS:
|
|
|
|
|
|
|
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Hilton stockholders
|
$
|
161
|
|
|
$
|
209
|
|
|
$
|
311
|
|
|
$
|
332
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
989
|
|
|
985
|
|
|
989
|
|
|
985
|
|
||||
Diluted EPS
|
$
|
0.16
|
|
|
$
|
0.21
|
|
|
$
|
0.31
|
|
|
$
|
0.34
|
|
|
Currency Translation Adjustment
(1)
|
|
Pension Liability Adjustment
|
|
Cash Flow Hedge Adjustment
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Balance as of December 31, 2014
|
$
|
(446
|
)
|
|
$
|
(179
|
)
|
|
$
|
(3
|
)
|
|
$
|
(628
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications
|
(42
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
(49
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||
Net current period other comprehensive income (loss)
|
(42
|
)
|
|
2
|
|
|
(5
|
)
|
|
(45
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance as of June 30, 2015
|
$
|
(488
|
)
|
|
$
|
(177
|
)
|
|
$
|
(8
|
)
|
|
$
|
(673
|
)
|
|
Currency Translation Adjustment
(1)
|
|
Pension Liability Adjustment
|
|
Cash Flow Hedge Adjustment
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Balance as of December 31, 2013
|
$
|
(136
|
)
|
|
$
|
(134
|
)
|
|
$
|
6
|
|
|
$
|
(264
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) before reclassifications
|
87
|
|
|
2
|
|
|
(9
|
)
|
|
80
|
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
(4
|
)
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
||||
Net current period other comprehensive income (loss)
|
83
|
|
|
4
|
|
|
(9
|
)
|
|
78
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance as of June 30, 2014
|
$
|
(53
|
)
|
|
$
|
(130
|
)
|
|
$
|
(3
|
)
|
|
$
|
(186
|
)
|
(1)
|
Includes net investment hedges.
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Currency translation adjustment:
|
|
|
|
||||
Sale and liquidation of foreign assets
(1)
|
$
|
—
|
|
|
$
|
4
|
|
Total currency translation adjustment reclassifications for the period, net of taxes
|
—
|
|
|
4
|
|
||
|
|
|
|
||||
Pension liability adjustment:
|
|
|
|
||||
Amortization of prior service cost
(2)
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
Amortization of net loss
(2)
|
(4
|
)
|
|
(1
|
)
|
||
Tax benefit
(3)
|
2
|
|
|
1
|
|
||
Total pension liability adjustment reclassifications for the period, net of taxes
|
(4
|
)
|
|
(2
|
)
|
||
|
|
|
|
||||
Total reclassifications for the period, net of tax
|
$
|
(4
|
)
|
|
$
|
2
|
|
(1)
|
Reclassified out of accumulated other comprehensive loss to other gain (loss), net in our condensed consolidated statements of operations. Amounts in parentheses indicate a loss in our condensed consolidated statements of operations.
|
(2)
|
Reclassified out of accumulated other comprehensive loss to general, administrative and other in our condensed consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). See
Note 13
: "
Employee Benefit Plans
" for additional information. Amounts in parentheses indicate a loss in our condensed consolidated statements of operations.
|
(3)
|
Reclassified out of accumulated other comprehensive loss to income tax expense in our condensed consolidated statements of operations.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Ownership
(1)(2)
|
$
|
1,141
|
|
|
$
|
1,126
|
|
|
$
|
2,105
|
|
|
$
|
2,078
|
|
Management and franchise
(3)
|
434
|
|
|
371
|
|
|
825
|
|
|
702
|
|
||||
Timeshare
|
319
|
|
|
276
|
|
|
640
|
|
|
555
|
|
||||
Segment revenues
|
1,894
|
|
|
1,773
|
|
|
3,570
|
|
|
3,335
|
|
||||
Other revenues from managed and franchised properties
|
1,061
|
|
|
920
|
|
|
2,011
|
|
|
1,747
|
|
||||
Other revenues
(4)
|
21
|
|
|
25
|
|
|
42
|
|
|
46
|
|
||||
Intersegment fees elimination
(1)(2)(3)(4)
|
(54
|
)
|
|
(51
|
)
|
|
(102
|
)
|
|
(98
|
)
|
||||
Total revenues
|
$
|
2,922
|
|
|
$
|
2,667
|
|
|
$
|
5,521
|
|
|
$
|
5,030
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA
|
|
|
|
|
|
|
|
||||||||
Ownership
(1)(2)(3)(4)(5)
|
$
|
318
|
|
|
$
|
292
|
|
|
$
|
508
|
|
|
$
|
467
|
|
Management and franchise
(3)
|
434
|
|
|
371
|
|
|
825
|
|
|
702
|
|
||||
Timeshare
(1)(3)
|
86
|
|
|
71
|
|
|
160
|
|
|
153
|
|
||||
Corporate and other
(2)(4)
|
(61
|
)
|
|
(60
|
)
|
|
(117
|
)
|
|
(140
|
)
|
||||
Adjusted EBITDA
|
$
|
777
|
|
|
$
|
674
|
|
|
$
|
1,376
|
|
|
$
|
1,182
|
|
(1)
|
Includes charges to timeshare operations for rental fees and fees for other amenities, which were eliminated in our condensed consolidated financial statements. These charges totaled
$5 million
and
$8 million
for the
three months ended June 30, 2015
and
2014
, respectively, and
$11 million
and
$14 million
for the
six months ended June 30, 2015
and
2014
, respectively. While the net effect is zero, our measures of segment revenues and Adjusted EBITDA include these fees as a benefit to the ownership segment and a cost to timeshare Adjusted EBITDA.
|
(2)
|
Includes other intercompany charges of
$1 million
for the
three months ended June 30, 2015
and
2014
, and
$2 million
for the
six months ended June 30, 2015
and
2014
, which were eliminated in our condensed consolidated financial statements.
|
(3)
|
Includes management, royalty and intellectual property fees of
$36 million
and
$29 million
for the
three months ended June 30, 2015
and
2014
, respectively, and
$66 million
and
$56 million
for the
six months ended June 30, 2015
and
2014
, respectively. These fees are charged to consolidated owned and leased properties and were eliminated in our condensed consolidated financial statements. Also includes a licensing fee of
$11 million
for the
three months ended June 30, 2015
and
2014
, and
$20 million
and
$22 million
for the
six months ended June 30, 2015
and
2014
, respectively, which is charged to our timeshare segment by our management and franchise segment and was eliminated in our condensed consolidated financial statements. While the net effect is zero, our measures of segment revenues and Adjusted EBITDA include these fees as a benefit to the management and franchise segment and a cost to ownership Adjusted EBITDA and timeshare Adjusted EBITDA.
|
(4)
|
Includes charges to consolidated owned and leased properties for services provided by our wholly owned laundry business of
$1 million
and
$2 million
for the
three months ended June 30, 2015
and
2014
, respectively, and
$3 million
and
$4 million
for the
six months ended June 30, 2015
and
2014
, respectively. These charges were eliminated in our condensed consolidated financial statements.
|
(5)
|
Includes unconsolidated affiliate Adjusted EBITDA.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(in millions)
|
||||||||||||||
Adjusted EBITDA
|
$
|
777
|
|
|
$
|
674
|
|
|
$
|
1,376
|
|
|
$
|
1,182
|
|
Net income attributable to noncontrolling interests
|
(6
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(4
|
)
|
||||
Gain (loss) on sales of assets, net
|
(3
|
)
|
|
—
|
|
|
142
|
|
|
—
|
|
||||
Gain (loss) on foreign currency transactions
|
5
|
|
|
32
|
|
|
(13
|
)
|
|
46
|
|
||||
FF&E replacement reserve
|
(14
|
)
|
|
(12
|
)
|
|
(27
|
)
|
|
(23
|
)
|
||||
Share-based and other compensation expense
|
(92
|
)
|
|
(29
|
)
|
|
(122
|
)
|
|
(6
|
)
|
||||
Other gain (loss), net
|
18
|
|
|
11
|
|
|
(7
|
)
|
|
14
|
|
||||
Other adjustment items
|
(50
|
)
|
|
(17
|
)
|
|
(69
|
)
|
|
(30
|
)
|
||||
EBITDA
|
635
|
|
|
656
|
|
|
1,274
|
|
|
1,179
|
|
||||
Interest expense
|
(149
|
)
|
|
(158
|
)
|
|
(293
|
)
|
|
(311
|
)
|
||||
Interest expense included in equity in earnings from unconsolidated affiliates
|
(2
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
(6
|
)
|
||||
Income tax expense
|
(145
|
)
|
|
(121
|
)
|
|
(308
|
)
|
|
(204
|
)
|
||||
Depreciation and amortization
|
(173
|
)
|
|
(158
|
)
|
|
(348
|
)
|
|
(311
|
)
|
||||
Depreciation and amortization included in equity in earnings from unconsolidated affiliates
|
(5
|
)
|
|
(7
|
)
|
|
(10
|
)
|
|
(15
|
)
|
||||
Net income attributable to Hilton stockholders
|
$
|
161
|
|
|
$
|
209
|
|
|
$
|
311
|
|
|
$
|
332
|
|
|
June 30,
|
|
December 31,
|
||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Assets:
|
|
|
|
||||
Ownership
|
$
|
11,728
|
|
|
$
|
11,595
|
|
Management and franchise
|
10,476
|
|
|
10,530
|
|
||
Timeshare
|
1,925
|
|
|
1,840
|
|
||
Corporate and other
|
1,922
|
|
|
2,160
|
|
||
|
$
|
26,051
|
|
|
$
|
26,125
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Capital expenditures for property and equipment:
|
|
|
|
||||
Ownership
|
$
|
148
|
|
|
$
|
106
|
|
Timeshare
|
5
|
|
|
1
|
|
||
Corporate and other
|
6
|
|
|
3
|
|
||
|
$
|
159
|
|
|
$
|
110
|
|
|
June 30, 2015
|
||||||||||||||||||||||
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
|||||||||||||
|
(in millions)
|
||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
197
|
|
|
$
|
314
|
|
|
$
|
—
|
|
|
$
|
511
|
|
Restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
144
|
|
|
104
|
|
|
—
|
|
|
248
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
521
|
|
|
416
|
|
|
—
|
|
|
937
|
|
||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
401
|
|
|
23
|
|
|
—
|
|
|
424
|
|
||||||
Deferred income tax assets
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
20
|
|
||||||
Current portion of financing receivables, net
|
—
|
|
|
—
|
|
|
47
|
|
|
19
|
|
|
—
|
|
|
66
|
|
||||||
Current portion of securitized financing receivables, net
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
59
|
|
||||||
Prepaid expenses
|
—
|
|
|
—
|
|
|
40
|
|
|
115
|
|
|
(9
|
)
|
|
146
|
|
||||||
Income taxes receivable
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
(23
|
)
|
|
38
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
8
|
|
|
44
|
|
|
—
|
|
|
52
|
|
||||||
Total current assets
|
—
|
|
|
—
|
|
|
1,457
|
|
|
1,104
|
|
|
(60
|
)
|
|
2,501
|
|
||||||
Property, Intangibles and Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
297
|
|
|
8,894
|
|
|
—
|
|
|
9,191
|
|
||||||
Property and equipment, net held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
111
|
|
|
—
|
|
|
111
|
|
||||||
Financing receivables, net
|
—
|
|
|
—
|
|
|
357
|
|
|
145
|
|
|
—
|
|
|
502
|
|
||||||
Securitized financing receivables, net
|
—
|
|
|
—
|
|
|
—
|
|
|
347
|
|
|
—
|
|
|
347
|
|
||||||
Investments in affiliates
|
—
|
|
|
—
|
|
|
117
|
|
|
39
|
|
|
—
|
|
|
156
|
|
||||||
Investments in subsidiaries
|
5,284
|
|
|
11,408
|
|
|
5,106
|
|
|
—
|
|
|
(21,798
|
)
|
|
—
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
3,847
|
|
|
2,098
|
|
|
—
|
|
|
5,945
|
|
||||||
Brands
|
—
|
|
|
—
|
|
|
4,405
|
|
|
535
|
|
|
—
|
|
|
4,940
|
|
||||||
Management and franchise contracts, net
|
—
|
|
|
—
|
|
|
940
|
|
|
277
|
|
|
—
|
|
|
1,217
|
|
||||||
Other intangible assets, net
|
—
|
|
|
—
|
|
|
428
|
|
|
201
|
|
|
—
|
|
|
629
|
|
||||||
Deferred income tax assets
|
24
|
|
|
4
|
|
|
—
|
|
|
154
|
|
|
(28
|
)
|
|
154
|
|
||||||
Other
|
—
|
|
|
78
|
|
|
132
|
|
|
148
|
|
|
—
|
|
|
358
|
|
||||||
Total property, intangibles and other assets
|
5,308
|
|
|
11,490
|
|
|
15,629
|
|
|
12,949
|
|
|
(21,826
|
)
|
|
23,550
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL ASSETS
|
$
|
5,308
|
|
|
$
|
11,490
|
|
|
$
|
17,086
|
|
|
$
|
14,053
|
|
|
$
|
(21,886
|
)
|
|
$
|
26,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable, accrued expenses and other
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
1,509
|
|
|
$
|
721
|
|
|
$
|
(9
|
)
|
|
$
|
2,260
|
|
Intercompany payables
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
(28
|
)
|
|
—
|
|
||||||
Current maturities of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||||
Current maturities of non-recourse debt
|
—
|
|
|
—
|
|
|
—
|
|
|
136
|
|
|
—
|
|
|
136
|
|
||||||
Income taxes payable
|
—
|
|
|
—
|
|
|
3
|
|
|
40
|
|
|
(23
|
)
|
|
20
|
|
||||||
Total current liabilities
|
—
|
|
|
39
|
|
|
1,512
|
|
|
935
|
|
|
(60
|
)
|
|
2,426
|
|
||||||
Long-term debt
|
—
|
|
|
6,155
|
|
|
54
|
|
|
4,191
|
|
|
—
|
|
|
10,400
|
|
||||||
Non-recourse debt
|
—
|
|
|
—
|
|
|
—
|
|
|
644
|
|
|
—
|
|
|
644
|
|
||||||
Deferred revenues
|
—
|
|
|
—
|
|
|
394
|
|
|
1
|
|
|
—
|
|
|
395
|
|
||||||
Deferred income tax liabilities
|
—
|
|
|
—
|
|
|
2,250
|
|
|
2,970
|
|
|
(28
|
)
|
|
5,192
|
|
||||||
Liability for guest loyalty program
|
—
|
|
|
—
|
|
|
744
|
|
|
—
|
|
|
—
|
|
|
744
|
|
||||||
Other
|
203
|
|
|
12
|
|
|
724
|
|
|
242
|
|
|
—
|
|
|
1,181
|
|
||||||
Total liabilities
|
203
|
|
|
6,206
|
|
|
5,678
|
|
|
8,983
|
|
|
(88
|
)
|
|
20,982
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Hilton stockholders' equity
|
5,105
|
|
|
5,284
|
|
|
11,408
|
|
|
5,106
|
|
|
(21,798
|
)
|
|
5,105
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
||||||
Total equity
|
5,105
|
|
|
5,284
|
|
|
11,408
|
|
|
5,070
|
|
|
(21,798
|
)
|
|
5,069
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
5,308
|
|
|
$
|
11,490
|
|
|
$
|
17,086
|
|
|
$
|
14,053
|
|
|
$
|
(21,886
|
)
|
|
$
|
26,051
|
|
|
December 31, 2014
|
||||||||||||||||||||||
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
|||||||||||||
|
(in millions)
|
||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
270
|
|
|
$
|
296
|
|
|
$
|
—
|
|
|
$
|
566
|
|
Restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
135
|
|
|
67
|
|
|
—
|
|
|
202
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
478
|
|
|
366
|
|
|
—
|
|
|
844
|
|
||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
380
|
|
|
24
|
|
|
—
|
|
|
404
|
|
||||||
Deferred income tax assets
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
20
|
|
||||||
Current portion of financing receivables, net
|
—
|
|
|
—
|
|
|
47
|
|
|
19
|
|
|
—
|
|
|
66
|
|
||||||
Current portion of securitized financing receivables, net
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
62
|
|
||||||
Prepaid expenses
|
—
|
|
|
—
|
|
|
29
|
|
|
124
|
|
|
(20
|
)
|
|
133
|
|
||||||
Income taxes receivable
|
—
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
(22
|
)
|
|
132
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
5
|
|
|
65
|
|
|
—
|
|
|
70
|
|
||||||
Total current assets
|
—
|
|
|
—
|
|
|
1,554
|
|
|
1,033
|
|
|
(88
|
)
|
|
2,499
|
|
||||||
Property, Intangibles and Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
305
|
|
|
7,178
|
|
|
—
|
|
|
7,483
|
|
||||||
Property and equipment, net held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
1,543
|
|
|
—
|
|
|
1,543
|
|
||||||
Financing receivables, net
|
—
|
|
|
—
|
|
|
272
|
|
|
144
|
|
|
—
|
|
|
416
|
|
||||||
Securitized financing receivables, net
|
—
|
|
|
—
|
|
|
—
|
|
|
406
|
|
|
—
|
|
|
406
|
|
||||||
Investments in affiliates
|
—
|
|
|
—
|
|
|
123
|
|
|
47
|
|
|
—
|
|
|
170
|
|
||||||
Investments in subsidiaries
|
4,924
|
|
|
11,361
|
|
|
4,935
|
|
|
—
|
|
|
(21,220
|
)
|
|
—
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
3,847
|
|
|
2,307
|
|
|
—
|
|
|
6,154
|
|
||||||
Brands
|
—
|
|
|
—
|
|
|
4,405
|
|
|
558
|
|
|
—
|
|
|
4,963
|
|
||||||
Management and franchise contracts, net
|
—
|
|
|
—
|
|
|
1,007
|
|
|
299
|
|
|
—
|
|
|
1,306
|
|
||||||
Other intangible assets, net
|
—
|
|
|
—
|
|
|
466
|
|
|
208
|
|
|
—
|
|
|
674
|
|
||||||
Deferred income tax assets
|
22
|
|
|
1
|
|
|
—
|
|
|
155
|
|
|
(23
|
)
|
|
155
|
|
||||||
Other
|
—
|
|
|
85
|
|
|
119
|
|
|
152
|
|
|
—
|
|
|
356
|
|
||||||
Total property, intangibles and other assets
|
4,946
|
|
|
11,447
|
|
|
15,479
|
|
|
12,997
|
|
|
(21,243
|
)
|
|
23,626
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL ASSETS
|
$
|
4,946
|
|
|
$
|
11,447
|
|
|
$
|
17,033
|
|
|
$
|
14,030
|
|
|
$
|
(21,331
|
)
|
|
$
|
26,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable, accrued expenses and other
|
$
|
—
|
|
|
$
|
40
|
|
|
$
|
1,384
|
|
|
$
|
695
|
|
|
$
|
(20
|
)
|
|
$
|
2,099
|
|
Intercompany payables
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
(46
|
)
|
|
—
|
|
||||||
Current maturities of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||||
Current maturities of non-recourse debt
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|
—
|
|
|
127
|
|
||||||
Income taxes payable
|
—
|
|
|
—
|
|
|
5
|
|
|
38
|
|
|
(22
|
)
|
|
21
|
|
||||||
Total current liabilities
|
—
|
|
|
40
|
|
|
1,389
|
|
|
916
|
|
|
(88
|
)
|
|
2,257
|
|
||||||
Long-term debt
|
—
|
|
|
6,479
|
|
|
54
|
|
|
4,270
|
|
|
—
|
|
|
10,803
|
|
||||||
Non-recourse debt
|
—
|
|
|
—
|
|
|
—
|
|
|
752
|
|
|
—
|
|
|
752
|
|
||||||
Deferred revenues
|
—
|
|
|
—
|
|
|
493
|
|
|
2
|
|
|
—
|
|
|
495
|
|
||||||
Deferred income tax liabilities
|
—
|
|
|
—
|
|
|
2,306
|
|
|
2,933
|
|
|
(23
|
)
|
|
5,216
|
|
||||||
Liability for guest loyalty program
|
—
|
|
|
—
|
|
|
720
|
|
|
—
|
|
|
—
|
|
|
720
|
|
||||||
Other
|
194
|
|
|
4
|
|
|
710
|
|
|
260
|
|
|
—
|
|
|
1,168
|
|
||||||
Total liabilities
|
194
|
|
|
6,523
|
|
|
5,672
|
|
|
9,133
|
|
|
(111
|
)
|
|
21,411
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Hilton stockholders' equity
|
4,752
|
|
|
4,924
|
|
|
11,361
|
|
|
4,935
|
|
|
(21,220
|
)
|
|
4,752
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
||||||
Total equity
|
4,752
|
|
|
4,924
|
|
|
11,361
|
|
|
4,897
|
|
|
(21,220
|
)
|
|
4,714
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
4,946
|
|
|
$
|
11,447
|
|
|
$
|
17,033
|
|
|
$
|
14,030
|
|
|
$
|
(21,331
|
)
|
|
$
|
26,125
|
|
|
Three Months Ended June 30, 2015
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
61
|
|
|
$
|
1,079
|
|
|
$
|
(5
|
)
|
|
$
|
1,135
|
|
Management and franchise fees and other
|
—
|
|
|
—
|
|
|
349
|
|
|
83
|
|
|
(25
|
)
|
|
407
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
298
|
|
|
21
|
|
|
—
|
|
|
319
|
|
||||||
|
—
|
|
|
—
|
|
|
708
|
|
|
1,183
|
|
|
(30
|
)
|
|
1,861
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,169
|
|
|
124
|
|
|
(232
|
)
|
|
1,061
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
1,877
|
|
|
1,307
|
|
|
(262
|
)
|
|
2,922
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
41
|
|
|
799
|
|
|
(23
|
)
|
|
817
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
221
|
|
|
4
|
|
|
(5
|
)
|
|
220
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
81
|
|
|
92
|
|
|
—
|
|
|
173
|
|
||||||
General, administrative and other
|
—
|
|
|
—
|
|
|
194
|
|
|
29
|
|
|
(2
|
)
|
|
221
|
|
||||||
|
—
|
|
|
—
|
|
|
537
|
|
|
924
|
|
|
(30
|
)
|
|
1,431
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,169
|
|
|
124
|
|
|
(232
|
)
|
|
1,061
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
1,706
|
|
|
1,048
|
|
|
(262
|
)
|
|
2,492
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on sales of assets, net
|
—
|
|
|
—
|
|
|
1
|
|
|
(4
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
172
|
|
|
255
|
|
|
—
|
|
|
427
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||||
Interest expense
|
—
|
|
|
(71
|
)
|
|
(15
|
)
|
|
(63
|
)
|
|
—
|
|
|
(149
|
)
|
||||||
Equity in earnings from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
—
|
|
|
9
|
|
||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
(323
|
)
|
|
328
|
|
|
—
|
|
|
5
|
|
||||||
Other gain, net
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(71
|
)
|
|
(157
|
)
|
|
540
|
|
|
—
|
|
|
312
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
(4
|
)
|
|
27
|
|
|
53
|
|
|
(221
|
)
|
|
—
|
|
|
(145
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in earnings from subsidiaries
|
(4
|
)
|
|
(44
|
)
|
|
(104
|
)
|
|
319
|
|
|
—
|
|
|
167
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
165
|
|
|
209
|
|
|
313
|
|
|
—
|
|
|
(687
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
161
|
|
|
165
|
|
|
209
|
|
|
319
|
|
|
(687
|
)
|
|
167
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
161
|
|
|
$
|
165
|
|
|
$
|
209
|
|
|
$
|
313
|
|
|
$
|
(687
|
)
|
|
$
|
161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
356
|
|
|
$
|
167
|
|
|
$
|
240
|
|
|
$
|
481
|
|
|
$
|
(882
|
)
|
|
$
|
362
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
356
|
|
|
$
|
167
|
|
|
$
|
240
|
|
|
$
|
475
|
|
|
$
|
(882
|
)
|
|
$
|
356
|
|
|
Three Months Ended June 30, 2014
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
1,068
|
|
|
$
|
(6
|
)
|
|
$
|
1,117
|
|
Management and franchise fees and other
|
—
|
|
|
—
|
|
|
306
|
|
|
79
|
|
|
(31
|
)
|
|
354
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
250
|
|
|
26
|
|
|
—
|
|
|
276
|
|
||||||
|
—
|
|
|
—
|
|
|
611
|
|
|
1,173
|
|
|
(37
|
)
|
|
1,747
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,030
|
|
|
102
|
|
|
(212
|
)
|
|
920
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
1,641
|
|
|
1,275
|
|
|
(249
|
)
|
|
2,667
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
39
|
|
|
813
|
|
|
(19
|
)
|
|
833
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
200
|
|
|
4
|
|
|
(16
|
)
|
|
188
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
77
|
|
|
81
|
|
|
—
|
|
|
158
|
|
||||||
General, administrative and other
|
—
|
|
|
—
|
|
|
103
|
|
|
32
|
|
|
(2
|
)
|
|
133
|
|
||||||
|
—
|
|
|
—
|
|
|
419
|
|
|
930
|
|
|
(37
|
)
|
|
1,312
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,030
|
|
|
102
|
|
|
(212
|
)
|
|
920
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
1,449
|
|
|
1,032
|
|
|
(249
|
)
|
|
2,232
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
192
|
|
|
243
|
|
|
—
|
|
|
435
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
—
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
5
|
|
||||||
Interest expense
|
—
|
|
|
(86
|
)
|
|
(15
|
)
|
|
(57
|
)
|
|
—
|
|
|
(158
|
)
|
||||||
Equity in earnings from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|
8
|
|
||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
37
|
|
|
(5
|
)
|
|
—
|
|
|
32
|
|
||||||
Other gain, net
|
—
|
|
|
—
|
|
|
3
|
|
|
8
|
|
|
—
|
|
|
11
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(86
|
)
|
|
227
|
|
|
192
|
|
|
—
|
|
|
333
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
—
|
|
|
33
|
|
|
(95
|
)
|
|
(59
|
)
|
|
—
|
|
|
(121
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in earnings from subsidiaries
|
—
|
|
|
(53
|
)
|
|
132
|
|
|
133
|
|
|
—
|
|
|
212
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
209
|
|
|
262
|
|
|
130
|
|
|
—
|
|
|
(601
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
209
|
|
|
209
|
|
|
262
|
|
|
133
|
|
|
(601
|
)
|
|
212
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
209
|
|
|
$
|
209
|
|
|
$
|
262
|
|
|
$
|
130
|
|
|
$
|
(601
|
)
|
|
$
|
209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
259
|
|
|
$
|
203
|
|
|
$
|
225
|
|
|
$
|
226
|
|
|
$
|
(651
|
)
|
|
$
|
262
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
259
|
|
|
$
|
203
|
|
|
$
|
225
|
|
|
$
|
223
|
|
|
$
|
(651
|
)
|
|
$
|
259
|
|
|
Six Months Ended June 30, 2015
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
113
|
|
|
$
|
1,991
|
|
|
$
|
(12
|
)
|
|
$
|
2,092
|
|
Management and franchise fees and other
|
—
|
|
|
—
|
|
|
671
|
|
|
157
|
|
|
(50
|
)
|
|
778
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
597
|
|
|
43
|
|
|
—
|
|
|
640
|
|
||||||
|
—
|
|
|
—
|
|
|
1,381
|
|
|
2,191
|
|
|
(62
|
)
|
|
3,510
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
2,250
|
|
|
229
|
|
|
(468
|
)
|
|
2,011
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
3,631
|
|
|
2,420
|
|
|
(530
|
)
|
|
5,521
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
82
|
|
|
1,548
|
|
|
(45
|
)
|
|
1,585
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
457
|
|
|
8
|
|
|
(11
|
)
|
|
454
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
173
|
|
|
175
|
|
|
—
|
|
|
348
|
|
||||||
General, administrative and other
|
—
|
|
|
—
|
|
|
288
|
|
|
66
|
|
|
(6
|
)
|
|
348
|
|
||||||
|
—
|
|
|
—
|
|
|
1,000
|
|
|
1,797
|
|
|
(62
|
)
|
|
2,735
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
2,250
|
|
|
229
|
|
|
(468
|
)
|
|
2,011
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
3,250
|
|
|
2,026
|
|
|
(530
|
)
|
|
4,746
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on sales of assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|
—
|
|
|
142
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
381
|
|
|
536
|
|
|
—
|
|
|
917
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|
8
|
|
||||||
Interest expense
|
—
|
|
|
(144
|
)
|
|
(28
|
)
|
|
(121
|
)
|
|
—
|
|
|
(293
|
)
|
||||||
Equity in earnings from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
11
|
|
|
2
|
|
|
—
|
|
|
13
|
|
||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
(140
|
)
|
|
127
|
|
|
—
|
|
|
(13
|
)
|
||||||
Other loss, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(144
|
)
|
|
231
|
|
|
538
|
|
|
—
|
|
|
625
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
(5
|
)
|
|
55
|
|
|
(99
|
)
|
|
(259
|
)
|
|
—
|
|
|
(308
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in earnings from subsidiaries
|
(5
|
)
|
|
(89
|
)
|
|
132
|
|
|
279
|
|
|
—
|
|
|
317
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
316
|
|
|
405
|
|
|
273
|
|
|
—
|
|
|
(994
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
311
|
|
|
316
|
|
|
405
|
|
|
279
|
|
|
(994
|
)
|
|
317
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
311
|
|
|
$
|
316
|
|
|
$
|
405
|
|
|
$
|
273
|
|
|
$
|
(994
|
)
|
|
$
|
311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
266
|
|
|
$
|
311
|
|
|
$
|
408
|
|
|
$
|
236
|
|
|
$
|
(949
|
)
|
|
$
|
272
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
266
|
|
|
$
|
311
|
|
|
$
|
408
|
|
|
$
|
230
|
|
|
$
|
(949
|
)
|
|
$
|
266
|
|
|
Six Months Ended June 30, 2014
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
103
|
|
|
$
|
1,973
|
|
|
$
|
(14
|
)
|
|
$
|
2,062
|
|
Management and franchise fees and other
|
—
|
|
|
—
|
|
|
574
|
|
|
155
|
|
|
(63
|
)
|
|
666
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
506
|
|
|
49
|
|
|
—
|
|
|
555
|
|
||||||
|
—
|
|
|
—
|
|
|
1,183
|
|
|
2,177
|
|
|
(77
|
)
|
|
3,283
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,977
|
|
|
193
|
|
|
(423
|
)
|
|
1,747
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
3,160
|
|
|
2,370
|
|
|
(500
|
)
|
|
5,030
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
75
|
|
|
1,567
|
|
|
(38
|
)
|
|
1,604
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
390
|
|
|
9
|
|
|
(34
|
)
|
|
365
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
150
|
|
|
161
|
|
|
—
|
|
|
311
|
|
||||||
General, administrative and other
|
—
|
|
|
—
|
|
|
181
|
|
|
54
|
|
|
(5
|
)
|
|
230
|
|
||||||
|
—
|
|
|
—
|
|
|
796
|
|
|
1,791
|
|
|
(77
|
)
|
|
2,510
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,977
|
|
|
193
|
|
|
(423
|
)
|
|
1,747
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
2,773
|
|
|
1,984
|
|
|
(500
|
)
|
|
4,257
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
387
|
|
|
386
|
|
|
—
|
|
|
773
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
—
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|
6
|
|
||||||
Interest expense
|
—
|
|
|
(172
|
)
|
|
(27
|
)
|
|
(112
|
)
|
|
—
|
|
|
(311
|
)
|
||||||
Equity in earnings from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
10
|
|
|
2
|
|
|
—
|
|
|
12
|
|
||||||
Gain on foreign currency transactions
|
—
|
|
|
—
|
|
|
43
|
|
|
3
|
|
|
—
|
|
|
46
|
|
||||||
Other gain, net
|
—
|
|
|
—
|
|
|
6
|
|
|
8
|
|
|
—
|
|
|
14
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(172
|
)
|
|
423
|
|
|
289
|
|
|
—
|
|
|
540
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
(4
|
)
|
|
66
|
|
|
(167
|
)
|
|
(99
|
)
|
|
—
|
|
|
(204
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in earnings from subsidiaries
|
(4
|
)
|
|
(106
|
)
|
|
256
|
|
|
190
|
|
|
—
|
|
|
336
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
336
|
|
|
442
|
|
|
186
|
|
|
—
|
|
|
(964
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
332
|
|
|
336
|
|
|
442
|
|
|
190
|
|
|
(964
|
)
|
|
336
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
332
|
|
|
$
|
336
|
|
|
$
|
442
|
|
|
$
|
186
|
|
|
$
|
(964
|
)
|
|
$
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
410
|
|
|
$
|
327
|
|
|
$
|
415
|
|
|
$
|
302
|
|
|
$
|
(1,042
|
)
|
|
$
|
412
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
410
|
|
|
$
|
327
|
|
|
$
|
415
|
|
|
$
|
300
|
|
|
$
|
(1,042
|
)
|
|
$
|
410
|
|
|
Six Months Ended June 30, 2015
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300
|
|
|
$
|
416
|
|
|
$
|
(68
|
)
|
|
$
|
648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property and equipment
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(145
|
)
|
|
—
|
|
|
(159
|
)
|
||||||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,410
|
)
|
|
—
|
|
|
(1,410
|
)
|
||||||
Payments received on other financing receivables
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||||
Issuance of other financing receivables
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(2
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Investments in affiliates
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Distributions from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||
Issuance of intercompany receivables
|
—
|
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
184
|
|
|
—
|
|
||||||
Payments received on intercompany receivables
|
—
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
||||||
Proceeds from asset dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|
1,869
|
|
|
—
|
|
|
1,869
|
|
||||||
Contract acquisition costs
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
(8
|
)
|
|
—
|
|
|
(19
|
)
|
||||||
Software capitalization costs
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
||||||
Net cash provided by (used in) investing activities
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
305
|
|
|
—
|
|
|
258
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
||||||
Repayment of debt
|
—
|
|
|
(325
|
)
|
|
—
|
|
|
(636
|
)
|
|
—
|
|
|
(961
|
)
|
||||||
Intercompany borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
(184
|
)
|
|
—
|
|
||||||
Repayment of intercompany borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
(184
|
)
|
|
184
|
|
|
—
|
|
||||||
Change in restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
(29
|
)
|
||||||
Intercompany transfers
|
—
|
|
|
325
|
|
|
(334
|
)
|
|
9
|
|
|
—
|
|
|
—
|
|
||||||
Dividends paid to Guarantors
|
—
|
|
|
—
|
|
|
—
|
|
|
(68
|
)
|
|
68
|
|
|
—
|
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Excess tax benefits from share-based compensation
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||
Net cash used in financing activities
|
—
|
|
|
—
|
|
|
(326
|
)
|
|
(694
|
)
|
|
68
|
|
|
(952
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
18
|
|
|
—
|
|
|
(55
|
)
|
||||||
Cash and cash equivalents, beginning of period
|
—
|
|
|
—
|
|
|
270
|
|
|
296
|
|
|
—
|
|
|
566
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
197
|
|
|
$
|
314
|
|
|
$
|
—
|
|
|
$
|
511
|
|
|
Six Months Ended June 30, 2014
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
506
|
|
|
$
|
163
|
|
|
$
|
(157
|
)
|
|
$
|
512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property and equipment
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(104
|
)
|
|
—
|
|
|
(110
|
)
|
||||||
Payments received on other financing receivables
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||||
Issuance of other financing receivables
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||
Investments in affiliates
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Distributions from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||
Proceeds from asset dispositions
|
—
|
|
|
—
|
|
|
4
|
|
|
31
|
|
|
—
|
|
|
35
|
|
||||||
Contract acquisition costs
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(18
|
)
|
|
—
|
|
|
(21
|
)
|
||||||
Software capitalization costs
|
—
|
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
—
|
|
|
(30
|
)
|
|
(91
|
)
|
|
—
|
|
|
(121
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
350
|
|
|
—
|
|
|
350
|
|
||||||
Repayment of debt
|
—
|
|
|
(450
|
)
|
|
—
|
|
|
(333
|
)
|
|
—
|
|
|
(783
|
)
|
||||||
Debt issuance costs
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Change in restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||||
Intercompany transfers
|
—
|
|
|
451
|
|
|
(513
|
)
|
|
62
|
|
|
—
|
|
|
—
|
|
||||||
Dividends paid to Guarantors
|
—
|
|
|
—
|
|
|
—
|
|
|
(157
|
)
|
|
157
|
|
|
—
|
|
||||||
Capital contribution
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Net cash used in financing activities
|
—
|
|
|
—
|
|
|
(513
|
)
|
|
(85
|
)
|
|
157
|
|
|
(441
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Net decrease in cash and cash equivalents
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
(12
|
)
|
|
—
|
|
|
(49
|
)
|
||||||
Cash and cash equivalents, beginning of period
|
—
|
|
|
—
|
|
|
329
|
|
|
265
|
|
|
—
|
|
|
594
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
292
|
|
|
$
|
253
|
|
|
$
|
—
|
|
|
$
|
545
|
|
•
|
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 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
|
|
Six Months Ended
|
|
Variance
|
||||||||
|
June 30, 2015
|
|
2015 vs. 2014
|
|
June 30, 2015
|
|
2015 vs. 2014
|
||||||||
Owned and leased hotels
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
83.1
|
%
|
|
2.4
|
%
|
pts.
|
|
78.4
|
%
|
|
1.9
|
%
|
pts.
|
||
ADR
|
$
|
187.13
|
|
|
1.8
|
%
|
|
|
$
|
182.28
|
|
|
1.6
|
%
|
|
RevPAR
|
$
|
155.45
|
|
|
4.8
|
%
|
|
|
$
|
142.88
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Managed and franchised hotels
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
78.9
|
%
|
|
1.2
|
%
|
pts.
|
|
74.9
|
%
|
|
1.7
|
%
|
pts.
|
||
ADR
|
$
|
137.81
|
|
|
3.5
|
%
|
|
|
$
|
136.18
|
|
|
3.6
|
%
|
|
RevPAR
|
$
|
108.68
|
|
|
5.2
|
%
|
|
|
$
|
102.05
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
System-wide
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
79.2
|
%
|
|
1.3
|
%
|
pts.
|
|
75.2
|
%
|
|
1.7
|
%
|
pts.
|
||
ADR
|
$
|
142.48
|
|
|
3.4
|
%
|
|
|
$
|
140.54
|
|
|
3.4
|
%
|
|
RevPAR
|
$
|
112.82
|
|
|
5.2
|
%
|
|
|
$
|
105.70
|
|
|
5.8
|
%
|
|
|
Three Months Ended
|
|
Variance
|
|
Six Months Ended
|
|
Variance
|
||||||||
|
June 30, 2015
|
|
2015 vs. 2014
|
|
June 30, 2015
|
|
2015 vs. 2014
|
||||||||
Americas
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
80.1
|
%
|
|
0.9
|
%
|
pts.
|
|
76.1
|
%
|
|
1.3
|
%
|
pts.
|
||
ADR
|
$
|
141.25
|
|
|
3.9
|
%
|
|
|
$
|
139.16
|
|
|
3.9
|
%
|
|
RevPAR
|
$
|
113.17
|
|
|
5.1
|
%
|
|
|
$
|
105.87
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Europe
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
80.5
|
%
|
|
1.6
|
%
|
pts.
|
|
74.3
|
%
|
|
2.2
|
%
|
pts.
|
||
ADR
|
$
|
158.03
|
|
|
2.6
|
%
|
|
|
$
|
150.61
|
|
|
1.9
|
%
|
|
RevPAR
|
$
|
127.22
|
|
|
4.6
|
%
|
|
|
$
|
111.84
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
MEA
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
67.8
|
%
|
|
4.4
|
%
|
pts.
|
|
66.6
|
%
|
|
3.5
|
%
|
pts.
|
||
ADR
|
$
|
139.21
|
|
|
(4.2
|
)%
|
|
|
$
|
151.92
|
|
|
(1.5
|
)%
|
|
RevPAR
|
$
|
94.42
|
|
|
2.5
|
%
|
|
|
$
|
101.20
|
|
|
4.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asia Pacific
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
67.6
|
%
|
|
6.1
|
%
|
pts.
|
|
66.8
|
%
|
|
6.4
|
%
|
pts.
|
||
ADR
|
$
|
140.54
|
|
|
(0.6
|
)%
|
|
|
$
|
143.50
|
|
|
(0.4
|
)%
|
|
RevPAR
|
$
|
95.02
|
|
|
9.4
|
%
|
|
|
$
|
95.86
|
|
|
10.1
|
%
|
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
U.S. owned and leased hotels
|
$
|
649
|
|
|
$
|
576
|
|
|
12.7
|
|
$
|
1,196
|
|
|
$
|
1,076
|
|
|
11.2
|
International owned and leased hotels
|
486
|
|
|
541
|
|
|
(10.2)
|
|
896
|
|
|
986
|
|
|
(9.1)
|
||||
|
$
|
1,135
|
|
|
$
|
1,117
|
|
|
1.6
|
|
$
|
2,092
|
|
|
$
|
2,062
|
|
|
1.5
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Management fees
|
$
|
98
|
|
|
$
|
94
|
|
|
4.3
|
|
$
|
194
|
|
|
$
|
187
|
|
|
3.7
|
Franchise fees
|
289
|
|
|
237
|
|
|
21.9
|
|
545
|
|
|
437
|
|
|
24.7
|
||||
Other
|
20
|
|
|
23
|
|
|
(13.0)
|
|
39
|
|
|
42
|
|
|
(7.1)
|
||||
|
$
|
407
|
|
|
$
|
354
|
|
|
15.0
|
|
$
|
778
|
|
|
$
|
666
|
|
|
16.8
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Timeshare sales
|
$
|
233
|
|
|
$
|
195
|
|
|
19.5
|
|
$
|
470
|
|
|
$
|
394
|
|
|
19.3
|
Resort operations
|
51
|
|
|
48
|
|
|
6.3
|
|
101
|
|
|
97
|
|
|
4.1
|
||||
Financing and other
|
35
|
|
|
33
|
|
|
6.1
|
|
69
|
|
|
64
|
|
|
7.8
|
||||
|
$
|
319
|
|
|
$
|
276
|
|
|
15.6
|
|
$
|
640
|
|
|
$
|
555
|
|
|
15.3
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
U.S. owned and leased hotels
|
$
|
400
|
|
|
$
|
369
|
|
|
8.4
|
|
$
|
788
|
|
|
$
|
726
|
|
|
8.5
|
International owned and leased hotels
|
417
|
|
|
464
|
|
|
(10.1)
|
|
797
|
|
|
878
|
|
|
(9.2)
|
||||
|
$
|
817
|
|
|
$
|
833
|
|
|
(1.9)
|
|
$
|
1,585
|
|
|
$
|
1,604
|
|
|
(1.2)
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Timeshare sales
|
$
|
172
|
|
|
$
|
142
|
|
|
21.1
|
|
$
|
360
|
|
|
$
|
277
|
|
|
30.0
|
Resort operations
|
32
|
|
|
32
|
|
|
—
|
|
63
|
|
|
62
|
|
|
1.6
|
||||
Financing and other
|
16
|
|
|
14
|
|
|
14.3
|
|
31
|
|
|
26
|
|
|
19.2
|
||||
|
$
|
220
|
|
|
$
|
188
|
|
|
17.0
|
|
$
|
454
|
|
|
$
|
365
|
|
|
24.4
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
General and administrative
|
$
|
208
|
|
|
$
|
113
|
|
|
84.1
|
|
$
|
317
|
|
|
$
|
193
|
|
|
64.2
|
Other
|
13
|
|
|
20
|
|
|
(35.0)
|
|
31
|
|
|
37
|
|
|
(16.2)
|
||||
|
$
|
221
|
|
|
$
|
133
|
|
|
66.2
|
|
$
|
348
|
|
|
$
|
230
|
|
|
51.3
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Gain (loss) on sales of assets, net
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
NM
(1)
|
|
$
|
142
|
|
|
$
|
—
|
|
|
NM
(1)
|
(1)
|
Fluctuation in terms of percentage change is not meaningful.
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Interest expense
|
$
|
149
|
|
|
$
|
158
|
|
|
(5.7)
|
|
$
|
293
|
|
|
$
|
311
|
|
|
(5.8)
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Equity in earnings from unconsolidated affiliates
|
$
|
9
|
|
|
$
|
8
|
|
|
12.5
|
|
$
|
13
|
|
|
$
|
12
|
|
|
8.3
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Gain (loss) on foreign currency transactions
|
$
|
5
|
|
|
$
|
32
|
|
|
NM
(1)
|
|
$
|
(13
|
)
|
|
$
|
46
|
|
|
NM
(1)
|
(1)
|
Fluctuation in terms of percentage change is not meaningful.
|
(1)
|
Fluctuation in terms of percentage change is not meaningful.
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2015
|
|
2014
(1)
|
|
2015 vs. 2014
|
|
2015
|
|
2014
(1)
|
|
2015 vs. 2014
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ownership
|
$
|
1,141
|
|
|
$
|
1,126
|
|
|
1.3
|
|
$
|
2,105
|
|
|
$
|
2,078
|
|
|
1.3
|
Management and franchise
|
434
|
|
|
371
|
|
|
17.0
|
|
825
|
|
|
702
|
|
|
17.5
|
||||
Timeshare
|
319
|
|
|
276
|
|
|
15.6
|
|
640
|
|
|
555
|
|
|
15.3
|
||||
Segment revenues
|
1,894
|
|
|
1,773
|
|
|
6.8
|
|
3,570
|
|
|
3,335
|
|
|
7.0
|
||||
Other revenues from managed and franchised properties
|
1,061
|
|
|
920
|
|
|
15.3
|
|
2,011
|
|
|
1,747
|
|
|
15.1
|
||||
Other revenues
|
21
|
|
|
25
|
|
|
(16.0)
|
|
42
|
|
|
46
|
|
|
(8.7)
|
||||
Intersegment fees elimination
|
(54
|
)
|
|
(51
|
)
|
|
5.9
|
|
(102
|
)
|
|
(98
|
)
|
|
4.1
|
||||
Total revenues
|
$
|
2,922
|
|
|
$
|
2,667
|
|
|
9.6
|
|
$
|
5,521
|
|
|
$
|
5,030
|
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ownership
|
$
|
318
|
|
|
$
|
292
|
|
|
8.9
|
|
$
|
508
|
|
|
$
|
467
|
|
|
8.8
|
Management and franchise
|
434
|
|
|
371
|
|
|
17.0
|
|
825
|
|
|
702
|
|
|
17.5
|
||||
Timeshare
|
86
|
|
|
71
|
|
|
21.1
|
|
160
|
|
|
153
|
|
|
4.6
|
||||
Corporate and other
|
(61
|
)
|
|
(60
|
)
|
|
1.7
|
|
(117
|
)
|
|
(140
|
)
|
|
(16.4)
|
||||
Adjusted EBITDA
|
$
|
777
|
|
|
$
|
674
|
|
|
15.3
|
|
$
|
1,376
|
|
|
$
|
1,182
|
|
|
16.4
|
(1)
|
Historical results reflect the change in the definition of Adjusted EBITDA. See
Note 17
: "
Business Segments
" for additional information.
|
|
Six Months Ended June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Revenues
|
$
|
1,107
|
|
|
$
|
996
|
|
Net income attributable to Hilton stockholders
|
184
|
|
|
64
|
|
||
Capital expenditures for property and equipment
|
108
|
|
|
62
|
|
||
Adjusted EBITDA
(1)
|
345
|
|
|
296
|
|
||
Cash provided by (used in):
|
|
|
|
||||
Operating activities
|
167
|
|
|
126
|
|
||
Investing activities
|
351
|
|
|
(62
|
)
|
||
Financing activities
|
(511
|
)
|
|
(50
|
)
|
(1)
|
The following table provides a reconciliation of our Unrestricted U.S. Real Estate Subsidiaries' Adjusted EBITDA and EBITDA to net income attributable to Hilton stockholders, which we believe is the most closely comparable U.S. GAAP financial measure:
|
|
Six Months Ended June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Adjusted EBITDA
|
$
|
345
|
|
|
$
|
296
|
|
Net income attributable to noncontrolling interests
(1)
|
(1
|
)
|
|
—
|
|
||
Gain on sale of assets, net
|
144
|
|
|
—
|
|
||
Share-based and other compensation benefit (expense)
|
(1
|
)
|
|
1
|
|
||
Other loss, net
|
(30
|
)
|
|
—
|
|
||
EBITDA
|
457
|
|
|
297
|
|
||
Interest expense
|
(86
|
)
|
|
(84
|
)
|
||
Income tax expense
|
(70
|
)
|
|
(47
|
)
|
||
Depreciation and amortization
|
(117
|
)
|
|
(102
|
)
|
||
Net income attributable to Hilton stockholders
|
$
|
184
|
|
|
$
|
64
|
|
(1)
|
In June 2015, one of our consolidated non-wholly owned entities was transferred into the Unrestricted U.S. Real Estate Subsidiaries group as part of a debt refinancing of that entity.
|
|
June 30,
|
|
December 31,
|
||||
|
2015
|
|
2014
|
||||
|
(in millions)
|
||||||
Assets
|
$
|
8,939
|
|
|
$
|
8,772
|
|
Liabilities
|
6,695
|
|
|
6,759
|
|
|
As of and for the Six Months Ended June 30,
|
|
Percent Change
|
||||||
|
2015
|
|
2014
|
|
2015 vs. 2014
|
||||
|
(in millions)
|
|
|
||||||
Net cash provided by operating activities
|
$
|
648
|
|
|
$
|
512
|
|
|
26.6
|
Net cash provided by (used in) investing activities
|
258
|
|
|
(121
|
)
|
|
NM
(1)
|
||
Net cash used in financing activities
|
(952
|
)
|
|
(441
|
)
|
|
NM
(1)
|
||
Working capital surplus
(2)
|
75
|
|
|
297
|
|
|
(74.7)
|
(1)
|
Fluctuation in terms of percentage change is not meaningful.
|
(2)
|
Total current assets less total current liabilities.
|
Exhibit Number
|
|
Exhibit Description
|
3.1
|
|
Certificate of Incorporation of Hilton Worldwide Holdings Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated December 17, 2013).
|
3.2
|
|
Bylaws of Hilton Worldwide Holdings Inc. (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K dated December 17, 2013).
|
10.1
|
|
Form of Deferred Share Unit Agreement.*
|
12
|
|
Computation of Ratio of Earnings to Fixed Charges.
|
31.1
|
|
Certificate of Christopher J. Nassetta, President and Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
|
Certificate of Kevin J. Jacobs, Executive Vice President and Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
|
Certificate of Christopher J. Nassetta, President and Chief Executive Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
|
32.2
|
|
Certificate of Kevin J. Jacobs, Executive Vice President and Chief Financial Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
|
99.1
|
|
Section 13(r) Disclosure.
|
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
|
5.
|
Termination of Services; Settlement
.
|
11.
|
Tax Withholding
.
|
18.
|
Section 409A
.
|
HILTON WORLDWIDE HOLDINGS INC.
|
|
|
|
By:
|
|
|
|
|
|
|
|
By:
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
||||||
|
2015
|
|
2014
|
||||
Earnings:
|
|
|
|
||||
Income before taxes
|
$
|
625
|
|
|
$
|
540
|
|
Equity in earnings from unconsolidated affiliates
|
(13
|
)
|
|
(12
|
)
|
||
|
612
|
|
|
528
|
|
||
Add:
|
|
|
|
||||
Fixed charges
|
361
|
|
|
386
|
|
||
Distributed income of equity method investees
|
20
|
|
|
11
|
|
||
Subtract:
|
|
|
|
||||
Interest capitalized
|
(2
|
)
|
|
(2
|
)
|
||
Earnings available for fixed charges
|
$
|
991
|
|
|
$
|
923
|
|
|
|
|
|
||||
Fixed Charges:
|
|
|
|
||||
Interest expense
(1)
|
$
|
293
|
|
|
$
|
311
|
|
Interest capitalized
|
2
|
|
|
2
|
|
||
Estimated interest included in rent expense
|
66
|
|
|
73
|
|
||
Total Fixed Charges
|
$
|
361
|
|
|
$
|
386
|
|
|
|
|
|
||||
Ratio of Earnings to Fixed Charges
|
2.7
|
|
|
2.4
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 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)
|
|
July 29, 2015
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015 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)
|
|
July 29, 2015
|
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)
|