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
¨
|
|
September 30,
|
|
December 31,
|
||||
2016
|
2015
|
||||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
859
|
|
|
$
|
609
|
|
Restricted cash and cash equivalents
|
272
|
|
|
247
|
|
||
Accounts receivable, net of allowance for doubtful accounts of $33 and $30
|
1,021
|
|
|
876
|
|
||
Inventories
|
508
|
|
|
442
|
|
||
Current portion of financing receivables, net
|
128
|
|
|
129
|
|
||
Prepaid expenses
|
171
|
|
|
147
|
|
||
Income taxes receivable
|
17
|
|
|
97
|
|
||
Other
|
48
|
|
|
38
|
|
||
Total current assets (variable interest entities - $176 and $141)
|
3,024
|
|
|
2,585
|
|
||
Property, Intangibles and Other Assets:
|
|
|
|
||||
Property and equipment, net
|
9,020
|
|
|
9,119
|
|
||
Financing receivables, net
|
929
|
|
|
887
|
|
||
Investments in affiliates
|
132
|
|
|
138
|
|
||
Goodwill
|
5,855
|
|
|
5,887
|
|
||
Brands
|
4,908
|
|
|
4,919
|
|
||
Management and franchise contracts, net
|
1,044
|
|
|
1,149
|
|
||
Other intangible assets, net
|
525
|
|
|
586
|
|
||
Deferred income tax assets
|
75
|
|
|
78
|
|
||
Other
|
359
|
|
|
274
|
|
||
Total property, intangibles and other assets (variable interest entities - $616 and $481)
|
22,847
|
|
|
23,037
|
|
||
TOTAL ASSETS
|
$
|
25,871
|
|
|
$
|
25,622
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable, accrued expenses and other
|
$
|
2,354
|
|
|
$
|
2,206
|
|
Current maturities of long-term debt
|
101
|
|
|
94
|
|
||
Current maturities of timeshare debt
|
80
|
|
|
110
|
|
||
Income taxes payable
|
63
|
|
|
33
|
|
||
Total current liabilities (variable interest entities - $248 and $157)
|
2,598
|
|
|
2,443
|
|
||
Long-term debt
|
9,883
|
|
|
9,857
|
|
||
Timeshare debt
|
337
|
|
|
392
|
|
||
Deferred revenues
|
96
|
|
|
283
|
|
||
Deferred income tax liabilities
|
4,487
|
|
|
4,630
|
|
||
Liability for guest loyalty program
|
853
|
|
|
784
|
|
||
Other
|
1,126
|
|
|
1,282
|
|
||
Total liabilities (variable interest entities - $779 and $627)
|
19,380
|
|
|
19,671
|
|
||
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 September 30, 2016 and December 31, 2015
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 30,000,000,000 authorized shares, 989,810,812 issued and 989,782,045 outstanding as of September 30, 2016 and 987,487,127 issued and 987,458,360 outstanding as of December 31, 2015
|
10
|
|
|
10
|
|
||
Additional paid-in capital
|
10,198
|
|
|
10,151
|
|
||
Accumulated deficit
|
(2,866
|
)
|
|
(3,392
|
)
|
||
Accumulated other comprehensive loss
|
(826
|
)
|
|
(784
|
)
|
||
Total Hilton stockholders' equity
|
6,516
|
|
|
5,985
|
|
||
Noncontrolling interests
|
(25
|
)
|
|
(34
|
)
|
||
Total equity
|
6,491
|
|
|
5,951
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
25,871
|
|
|
$
|
25,622
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Owned and leased hotels
|
$
|
1,033
|
|
|
$
|
1,082
|
|
|
$
|
3,105
|
|
|
$
|
3,174
|
|
Management and franchise fees and other
|
446
|
|
|
416
|
|
|
1,276
|
|
|
1,194
|
|
||||
Timeshare
|
358
|
|
|
334
|
|
|
1,020
|
|
|
974
|
|
||||
|
1,837
|
|
|
1,832
|
|
|
5,401
|
|
|
5,342
|
|
||||
Other revenues from managed and franchised properties
|
1,105
|
|
|
1,063
|
|
|
3,342
|
|
|
3,074
|
|
||||
Total revenues
|
2,942
|
|
|
2,895
|
|
|
8,743
|
|
|
8,416
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Owned and leased hotels
|
771
|
|
|
798
|
|
|
2,335
|
|
|
2,383
|
|
||||
Timeshare
|
257
|
|
|
219
|
|
|
697
|
|
|
673
|
|
||||
Depreciation and amortization
|
169
|
|
|
171
|
|
|
509
|
|
|
519
|
|
||||
Impairment loss
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||
General, administrative and other
|
147
|
|
|
145
|
|
|
392
|
|
|
493
|
|
||||
|
1,344
|
|
|
1,333
|
|
|
3,948
|
|
|
4,068
|
|
||||
Other expenses from managed and franchised properties
|
1,105
|
|
|
1,063
|
|
|
3,342
|
|
|
3,074
|
|
||||
Total expenses
|
2,449
|
|
|
2,396
|
|
|
7,290
|
|
|
7,142
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gain on sales of assets, net
|
—
|
|
|
164
|
|
|
2
|
|
|
306
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating income
|
493
|
|
|
663
|
|
|
1,455
|
|
|
1,580
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest income
|
3
|
|
|
3
|
|
|
10
|
|
|
11
|
|
||||
Interest expense
|
(148
|
)
|
|
(138
|
)
|
|
(434
|
)
|
|
(431
|
)
|
||||
Equity in earnings from unconsolidated affiliates
|
7
|
|
|
9
|
|
|
18
|
|
|
22
|
|
||||
Loss on foreign currency transactions
|
(8
|
)
|
|
(8
|
)
|
|
(33
|
)
|
|
(21
|
)
|
||||
Other gain (loss), net
|
(10
|
)
|
|
1
|
|
|
(15
|
)
|
|
(6
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
337
|
|
|
530
|
|
|
1,001
|
|
|
1,155
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax expense
|
(145
|
)
|
|
(247
|
)
|
|
(255
|
)
|
|
(555
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
192
|
|
|
283
|
|
|
746
|
|
|
600
|
|
||||
Net income attributable to noncontrolling interests
|
(5
|
)
|
|
(4
|
)
|
|
(11
|
)
|
|
(10
|
)
|
||||
Net income attributable to Hilton stockholders
|
$
|
187
|
|
|
$
|
279
|
|
|
$
|
735
|
|
|
$
|
590
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.19
|
|
|
$
|
0.28
|
|
|
$
|
0.74
|
|
|
$
|
0.60
|
|
Diluted
|
$
|
0.19
|
|
|
$
|
0.28
|
|
|
$
|
0.74
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per share
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.21
|
|
|
$
|
0.07
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income
|
$
|
192
|
|
|
$
|
283
|
|
|
$
|
746
|
|
|
$
|
600
|
|
Other comprehensive income (loss), net of tax benefit (expense):
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustment, net of tax of $1, $(79), $(14)
and $(49)
|
(2
|
)
|
|
(115
|
)
|
|
(42
|
)
|
|
(157
|
)
|
||||
Pension liability adjustment, net of tax of $(1), $(1), $(2) and $(2)
|
—
|
|
|
1
|
|
|
2
|
|
|
3
|
|
||||
Cash flow hedge adjustment, net of tax of
$
(1), $4, $3 and $7
|
3
|
|
|
(6
|
)
|
|
(3
|
)
|
|
(11
|
)
|
||||
Total other comprehensive income (loss)
|
1
|
|
|
(120
|
)
|
|
(43
|
)
|
|
(165
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
193
|
|
|
163
|
|
|
703
|
|
|
435
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
(6
|
)
|
|
(4
|
)
|
|
(10
|
)
|
|
(10
|
)
|
||||
Comprehensive income attributable to Hilton stockholders
|
$
|
187
|
|
|
$
|
159
|
|
|
$
|
693
|
|
|
$
|
425
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
746
|
|
|
$
|
600
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
509
|
|
|
519
|
|
||
Impairment loss
|
15
|
|
|
—
|
|
||
Gain on sales of assets, net
|
(2
|
)
|
|
(306
|
)
|
||
Equity in earnings from unconsolidated affiliates
|
(18
|
)
|
|
(22
|
)
|
||
Loss on foreign currency transactions
|
33
|
|
|
21
|
|
||
Other loss, net
|
15
|
|
|
6
|
|
||
Share-based compensation
|
50
|
|
|
114
|
|
||
Distributions from unconsolidated affiliates
|
15
|
|
|
22
|
|
||
Deferred income taxes
|
(147
|
)
|
|
34
|
|
||
Change in restricted cash and cash equivalents
|
(20
|
)
|
|
(13
|
)
|
||
Working capital changes and other
|
(260
|
)
|
|
16
|
|
||
Net cash provided by operating activities
|
936
|
|
|
991
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Capital expenditures for property and equipment
|
(227
|
)
|
|
(214
|
)
|
||
Acquisitions, net of cash acquired
|
—
|
|
|
(1,410
|
)
|
||
Payments received on other financing receivables
|
2
|
|
|
3
|
|
||
Issuance of other financing receivables
|
(33
|
)
|
|
(9
|
)
|
||
Investments in affiliates
|
—
|
|
|
(5
|
)
|
||
Distributions from unconsolidated affiliates
|
2
|
|
|
18
|
|
||
Proceeds from asset dispositions
|
1
|
|
|
2,197
|
|
||
Change in restricted cash and cash equivalents
|
14
|
|
|
—
|
|
||
Contract acquisition costs
|
(35
|
)
|
|
(27
|
)
|
||
Capitalized software costs
|
(56
|
)
|
|
(38
|
)
|
||
Net cash provided by (used in) investing activities
|
(332
|
)
|
|
515
|
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Borrowings
|
1,000
|
|
|
35
|
|
||
Repayment of debt
|
(1,094
|
)
|
|
(1,342
|
)
|
||
Debt issuance costs
|
(35
|
)
|
|
—
|
|
||
Change in restricted cash and cash equivalents
|
(19
|
)
|
|
(53
|
)
|
||
Dividends paid
|
(207
|
)
|
|
(69
|
)
|
||
Distributions to noncontrolling interests
|
(6
|
)
|
|
(6
|
)
|
||
Excess tax benefits from share-based compensation
|
—
|
|
|
8
|
|
||
Net cash used in financing activities
|
(361
|
)
|
|
(1,427
|
)
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
7
|
|
|
(17
|
)
|
||
Net increase in cash and cash equivalents
|
250
|
|
|
62
|
|
||
Cash and cash equivalents, beginning of period
|
609
|
|
|
566
|
|
||
|
|
|
|
||||
Cash and cash equivalents, end of period
|
$
|
859
|
|
|
$
|
628
|
|
|
|
|
|
||||
Supplemental Disclosures
|
|
|
|
||||
Cash paid during the year:
|
|
|
|
||||
Interest
|
$
|
341
|
|
|
$
|
329
|
|
Income taxes, net of refunds
|
476
|
|
|
359
|
|
||
|
|
|
|
||||
Non-cash investing activities:
|
|
|
|
||||
Conversion of property and equipment to timeshare inventory
|
(79
|
)
|
|
—
|
|
||
Long-term debt assumed
|
—
|
|
|
(450
|
)
|
||
|
|
|
|
||||
Non-cash financing activities:
|
|
|
|
||||
Long-term debt assumed
|
—
|
|
|
450
|
|
||
Capital lease restructuring
|
—
|
|
|
(24
|
)
|
|
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, 2015
|
987
|
|
|
$
|
10
|
|
|
$
|
10,151
|
|
|
$
|
(3,392
|
)
|
|
$
|
(784
|
)
|
|
$
|
(34
|
)
|
|
$
|
5,951
|
|
Share-based compensation
|
3
|
|
|
—
|
|
|
47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
735
|
|
|
—
|
|
|
11
|
|
|
746
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(1
|
)
|
|
(42
|
)
|
||||||
Pension liability adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Cash flow hedge adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
(1
|
)
|
|
(43
|
)
|
||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(209
|
)
|
|
—
|
|
|
—
|
|
|
(209
|
)
|
||||||
Cumulative effect of the adoption of ASU 2015-02
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||
Balance as of September 30, 2016
|
990
|
|
|
$
|
10
|
|
|
$
|
10,198
|
|
|
$
|
(2,866
|
)
|
|
$
|
(826
|
)
|
|
$
|
(25
|
)
|
|
$
|
6,491
|
|
|
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
|
|
Share-based compensation
|
2
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
590
|
|
|
—
|
|
|
10
|
|
|
600
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(157
|
)
|
|
—
|
|
|
(157
|
)
|
||||||
Pension liability adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||
Cash flow hedge adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(165
|
)
|
|
—
|
|
|
(165
|
)
|
||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(69
|
)
|
|
—
|
|
|
—
|
|
|
(69
|
)
|
||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
||||||
Balance as of September 30, 2015
|
987
|
|
|
$
|
10
|
|
|
$
|
10,134
|
|
|
$
|
(4,137
|
)
|
|
$
|
(793
|
)
|
|
$
|
(34
|
)
|
|
$
|
5,180
|
|
•
|
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;
|
•
|
the Parc 55 in San Francisco, California; and
|
•
|
the Juniper Hotel Cupertino in Cupertino, California.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
September 30, 2015
|
|
September 30, 2015
|
||||
|
(in millions)
|
||||||
Total revenues
|
$
|
84
|
|
|
$
|
228
|
|
Income before income taxes
|
10
|
|
|
44
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Land
|
$
|
3,451
|
|
|
$
|
3,486
|
|
Buildings and leasehold improvements
|
6,478
|
|
|
6,410
|
|
||
Furniture and equipment
|
1,369
|
|
|
1,263
|
|
||
Construction-in-progress
|
112
|
|
|
80
|
|
||
|
11,410
|
|
|
11,239
|
|
||
Accumulated depreciation
|
(2,390
|
)
|
|
(2,120
|
)
|
||
|
$
|
9,020
|
|
|
$
|
9,119
|
|
|
September 30, 2016
|
||||||||||||||
|
Securitized Timeshare
|
|
Unsecuritized Timeshare
(1)
|
|
Other
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Financing receivables
|
$
|
228
|
|
|
$
|
741
|
|
|
$
|
63
|
|
|
$
|
1,032
|
|
Less: allowance for loan loss
|
(9
|
)
|
|
(94
|
)
|
|
—
|
|
|
(103
|
)
|
||||
|
219
|
|
|
647
|
|
|
63
|
|
|
929
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Current portion of financing receivables
|
51
|
|
|
88
|
|
|
2
|
|
|
141
|
|
||||
Less: allowance for loan loss
|
(2
|
)
|
|
(11
|
)
|
|
—
|
|
|
(13
|
)
|
||||
|
49
|
|
|
77
|
|
|
2
|
|
|
128
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total financing receivables
|
$
|
268
|
|
|
$
|
724
|
|
|
$
|
65
|
|
|
$
|
1,057
|
|
|
December 31, 2015
|
||||||||||||||
|
Securitized Timeshare
|
|
Unsecuritized Timeshare
(1)
|
|
Other
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Financing receivables
|
$
|
309
|
|
|
$
|
632
|
|
|
$
|
39
|
|
|
$
|
980
|
|
Less: allowance for loan loss
|
(14
|
)
|
|
(79
|
)
|
|
—
|
|
|
(93
|
)
|
||||
|
295
|
|
|
553
|
|
|
39
|
|
|
887
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Current portion of financing receivables
|
58
|
|
|
83
|
|
|
1
|
|
|
142
|
|
||||
Less: allowance for loan loss
|
(3
|
)
|
|
(10
|
)
|
|
—
|
|
|
(13
|
)
|
||||
|
55
|
|
|
73
|
|
|
1
|
|
|
129
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total financing receivables
|
$
|
350
|
|
|
$
|
626
|
|
|
$
|
40
|
|
|
$
|
1,016
|
|
(1)
|
Included in this balance, we had
$164 million
and
$163 million
of gross timeshare financing receivables securing our revolving non-recourse timeshare financing receivables credit facility (the "Timeshare Facility"), as of
September 30, 2016
and
December 31, 2015
, respectively.
|
|
Securitized Timeshare
|
|
Unsecuritized Timeshare
|
||||
Year
|
(in millions)
|
||||||
2016 (remaining)
|
$
|
13
|
|
|
$
|
31
|
|
2017
|
51
|
|
|
76
|
|
||
2018
|
50
|
|
|
81
|
|
||
2019
|
47
|
|
|
84
|
|
||
2020
|
43
|
|
|
88
|
|
||
Thereafter
|
75
|
|
|
469
|
|
||
|
279
|
|
|
829
|
|
||
Less: allowance for loan loss
|
(11
|
)
|
|
(105
|
)
|
||
|
$
|
268
|
|
|
$
|
724
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Current
|
$
|
1,061
|
|
|
$
|
1,035
|
|
30 - 89 days past due
|
13
|
|
|
15
|
|
||
90 - 119 days past due
|
4
|
|
|
4
|
|
||
120 days and greater past due
|
30
|
|
|
28
|
|
||
|
$
|
1,108
|
|
|
$
|
1,082
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Beginning balance
|
$
|
106
|
|
|
$
|
96
|
|
Write-offs
|
(27
|
)
|
|
(23
|
)
|
||
Provision for loan loss
|
37
|
|
|
29
|
|
||
Ending balance
|
$
|
116
|
|
|
$
|
102
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Equity investments
|
$
|
123
|
|
|
$
|
129
|
|
Other investments
|
9
|
|
|
9
|
|
||
|
$
|
132
|
|
|
$
|
138
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Cash and cash equivalents
|
$
|
73
|
|
|
$
|
46
|
|
Restricted cash and cash equivalents
|
22
|
|
|
15
|
|
||
Accounts receivable, net
|
18
|
|
|
19
|
|
||
Property and equipment, net
|
265
|
|
|
72
|
|
||
Financing receivables, net
|
268
|
|
|
350
|
|
||
Deferred income tax assets
|
69
|
|
|
62
|
|
||
Other non-current assets
|
63
|
|
|
52
|
|
||
Accounts payable, accrued expenses and other
|
51
|
|
|
35
|
|
||
Long-term debt
|
395
|
|
|
219
|
|
||
Timeshare debt
|
268
|
|
|
353
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Senior notes with a rate of 5.625%, due 2021
|
$
|
1,500
|
|
|
$
|
1,500
|
|
Senior notes with a rate of 4.25%, due 2024
|
1,000
|
|
|
—
|
|
||
Senior secured term loan facility with a rate of 3.50%, due 2020
|
1,000
|
|
|
4,225
|
|
||
Senior secured term loan facility with an average rate of 3.10%, due 2023
|
3,217
|
|
|
—
|
|
||
Commercial mortgage-backed securities loan with a rate of 4.47%, due 2018
|
2,427
|
|
|
3,418
|
|
||
Mortgage loans and other property debt with an average rate of 4.28%, due 2016 to 2022
(1)
|
620
|
|
|
616
|
|
||
Other unsecured notes with a rate of 7.50%, due 2017
|
54
|
|
|
54
|
|
||
Capital lease obligations with an average rate of 6.38%, due 2018 to 2097
|
277
|
|
|
245
|
|
||
|
10,095
|
|
|
10,058
|
|
||
Less: current maturities of long-term debt
(2)
|
(101
|
)
|
|
(94
|
)
|
||
Less: unamortized deferred financing costs and discounts
|
(111
|
)
|
|
(107
|
)
|
||
|
$
|
9,883
|
|
|
$
|
9,857
|
|
(1)
|
For mortgage loans with maturity date extensions that are solely at our option, we assumed they were exercised.
|
(2)
|
Net of unamortized deferred financing costs expected to be amortized in the next twelve months.
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Timeshare Facility with a rate of 1.83%, due 2019
|
$
|
150
|
|
|
$
|
150
|
|
Securitized Timeshare Debt with an average rate of 1.97%, due 2026
|
270
|
|
|
356
|
|
||
|
420
|
|
|
506
|
|
||
Less: current maturities of timeshare debt
(1)
|
(80
|
)
|
|
(110
|
)
|
||
Less: unamortized deferred financing costs
|
(3
|
)
|
|
(4
|
)
|
||
|
$
|
337
|
|
|
$
|
392
|
|
(1)
|
Net of unamortized deferred financing costs expected to be amortized in the next twelve months.
|
|
Long-term Debt
|
|
Timeshare Debt
|
||||
Year
|
(in millions)
|
||||||
2016 (remaining)
|
$
|
116
|
|
|
$
|
23
|
|
2017
|
104
|
|
|
74
|
|
||
2018
(1)
|
2,492
|
|
|
51
|
|
||
2019
(1)
|
478
|
|
|
186
|
|
||
2020
|
1,062
|
|
|
47
|
|
||
Thereafter
(1)
|
5,843
|
|
|
39
|
|
||
|
$
|
10,095
|
|
|
$
|
420
|
|
(1)
|
We assumed all extensions that are solely at our option for purposes of calculating maturity dates.
|
|
|
|
Fair Value
|
||||||
|
|
|
September 30,
|
|
December 31,
|
||||
|
Balance Sheet Classification
|
|
2016
|
|
2015
|
||||
|
|
|
(in millions)
|
||||||
Cash Flow Hedge:
|
|
|
|
|
|
||||
Interest rate swaps
|
Other liabilities
|
|
N/A
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
||||
Non-designated Hedges:
|
|
|
|
|
|
||||
Interest rate swaps
|
Other liabilities
|
|
$
|
21
|
|
|
N/A
|
|
|
Interest rate caps
(1)
|
Other current assets
|
|
—
|
|
|
—
|
|
||
Forward contracts
|
Other current assets
|
|
2
|
|
|
1
|
|
||
Forward contracts
|
Accounts payable, accrued expenses and other
|
|
1
|
|
|
1
|
|
(1)
|
The fair value of our interest rate caps was less than $1 million as of
December 31, 2015
.
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
Classification of Gain (Loss) Recognized
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
(in millions)
|
||||||||||||||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
(1)
|
Other comprehensive income (loss)
|
|
$
|
3
|
|
|
$
|
(10
|
)
|
|
$
|
(7
|
)
|
|
$
|
(18
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-designated Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
Other gain (loss), net
|
|
(1
|
)
|
|
N/A
|
|
|
(1
|
)
|
|
N/A
|
|
||||
Interest rate swaps
(2)
|
Interest expense
|
|
(1
|
)
|
|
N/A
|
|
|
(1
|
)
|
|
N/A
|
|
||||
Forward contracts
|
Loss on foreign currency transactions
|
|
4
|
|
|
6
|
|
|
7
|
|
|
12
|
|
(1)
|
There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three and
nine months ended September 30, 2016
and
2015
.
|
(2)
|
The amounts recognized during the three and
nine months ended September 30, 2016
are related to the dedesignation of these instruments as cash flow hedges and were reclassified from accumulated other comprehensive loss as the underlying transactions occurred.
|
|
September 30, 2016
|
||||||||||||||
|
|
|
Hierarchy Level
|
||||||||||||
|
Carrying Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in millions)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
513
|
|
|
$
|
—
|
|
|
$
|
513
|
|
|
$
|
—
|
|
Restricted cash equivalents
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Timeshare financing receivables
(1)
|
992
|
|
|
—
|
|
|
—
|
|
|
1,110
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
(2)(3)
|
9,668
|
|
|
1,603
|
|
|
—
|
|
|
8,248
|
|
||||
Timeshare debt
(3)
|
417
|
|
|
—
|
|
|
—
|
|
|
420
|
|
||||
Interest rate swaps
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
December 31, 2015
|
||||||||||||||
|
|
|
Hierarchy Level
|
||||||||||||
|
Carrying Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in millions)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
327
|
|
|
$
|
—
|
|
|
$
|
327
|
|
|
$
|
—
|
|
Restricted cash equivalents
|
18
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||
Timeshare financing receivables
(1)
|
976
|
|
|
—
|
|
|
—
|
|
|
1,080
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
(2)(3)
|
9,673
|
|
|
1,619
|
|
|
—
|
|
|
8,267
|
|
||||
Timeshare debt
(3)
|
502
|
|
|
—
|
|
|
—
|
|
|
506
|
|
||||
Interest rate swaps
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
(1)
|
Carrying amount includes allowance for loan loss.
|
(2)
|
Excludes capital lease obligations with a carrying value of
$277 million
and
$245 million
as of
September 30, 2016
and
December 31, 2015
, respectively, and debt of certain consolidated VIEs with a carrying value
of
$39 million
and
$32 million
, respectively.
|
(3)
|
Carrying amount includes unamortized deferred financing costs and discounts.
|
Expected volatility
(1)
|
32.00
|
%
|
Dividend yield
(2)
|
1.43
|
%
|
Risk-free rate
(3)
|
1.36
|
%
|
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 and implied 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)
|
Estimated based on the expected annualized dividend payment.
|
(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)
|
31.00
|
%
|
Dividend yield
(2)
|
—
|
%
|
Risk-free rate
(3)
|
0.92
|
%
|
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 and implied 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)
|
As dividends are assumed to be reinvested in shares of common stock and dividends will not be paid to the participants of the performance shares unless the shares vest, we utilized a dividend yield of zero percent.
|
(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.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions, except per share amounts)
|
||||||||||||||
Basic EPS:
|
|
|
|
|
|
|
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Hilton stockholders
|
$
|
187
|
|
|
$
|
279
|
|
|
$
|
735
|
|
|
$
|
590
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
988
|
|
|
987
|
|
|
988
|
|
|
986
|
|
||||
Basic EPS
|
$
|
0.19
|
|
|
$
|
0.28
|
|
|
$
|
0.74
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS:
|
|
|
|
|
|
|
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Hilton stockholders
|
$
|
187
|
|
|
$
|
279
|
|
|
$
|
735
|
|
|
$
|
590
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
992
|
|
|
989
|
|
|
991
|
|
|
989
|
|
||||
Diluted EPS
|
$
|
0.19
|
|
|
$
|
0.28
|
|
|
$
|
0.74
|
|
|
$
|
0.60
|
|
|
Currency Translation Adjustment
(1)
|
|
Pension Liability Adjustment
|
|
Cash Flow Hedge Adjustment
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Balance as of December 31, 2015
|
$
|
(580
|
)
|
|
$
|
(194
|
)
|
|
$
|
(10
|
)
|
|
$
|
(784
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications
|
(40
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(46
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
(1
|
)
|
|
4
|
|
|
1
|
|
|
4
|
|
||||
Net current period other comprehensive income (loss)
|
(41
|
)
|
|
2
|
|
|
(3
|
)
|
|
(42
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance as of September 30, 2016
|
$
|
(621
|
)
|
|
$
|
(192
|
)
|
|
$
|
(13
|
)
|
|
$
|
(826
|
)
|
|
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
|
(173
|
)
|
|
(1
|
)
|
|
(11
|
)
|
|
(185
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
16
|
|
|
4
|
|
|
—
|
|
|
20
|
|
||||
Net current period other comprehensive income (loss)
|
(157
|
)
|
|
3
|
|
|
(11
|
)
|
|
(165
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Balance as of September 30, 2015
|
$
|
(603
|
)
|
|
$
|
(176
|
)
|
|
$
|
(14
|
)
|
|
$
|
(793
|
)
|
(1)
|
Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Currency translation adjustment:
|
|
|
|
|
|
|
|
||||||||
Sale and liquidation of foreign assets
(1)
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
Gains on net investment hedges
(2)
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Tax benefit
(3)(4)
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||
Total currency translation adjustment reclassifications for the period, net of tax
|
—
|
|
|
(16
|
)
|
|
1
|
|
|
(16
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Pension liability adjustment:
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service cost
(5)
|
(1
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
(3
|
)
|
||||
Amortization of net loss
(5)
|
(1
|
)
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||
Tax benefit
(3)
|
1
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Total pension liability adjustment reclassifications for the period, net of tax
|
(1
|
)
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash flow hedge adjustment:
|
|
|
|
|
|
|
|
||||||||
Dedesignation of interest rate swaps
(6)
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Tax benefit
(3)(7)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total cash flow hedge adjustment reclassifications for the period, net of tax
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total reclassifications for the period, net of tax
|
$
|
(2
|
)
|
|
$
|
(16
|
)
|
|
$
|
(4
|
)
|
|
$
|
(20
|
)
|
(1)
|
Reclassified out of accumulated other comprehensive loss to gain on sales of assets, net for the three and
nine months ended September 30, 2015
in our condensed consolidated statements of operations. See
Note 4
: "
Disposals
" for additional information.
|
(2)
|
Reclassified out of accumulated other comprehensive loss to other gain (loss), net 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.
|
(4)
|
The tax benefit was less than $1 million for the
nine months ended September 30, 2016
.
|
(5)
|
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).
|
(6)
|
Reclassified out of accumulated other comprehensive loss to interest expense in our condensed consolidated statements of operations.
|
(7)
|
The tax benefit was less than $1 million for the three and
nine months ended September 30, 2016
.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Ownership
|
$
|
1,040
|
|
|
$
|
1,089
|
|
|
$
|
3,128
|
|
|
$
|
3,194
|
|
Management and franchise
|
470
|
|
|
438
|
|
|
1,350
|
|
|
1,263
|
|
||||
Timeshare
|
358
|
|
|
334
|
|
|
1,020
|
|
|
974
|
|
||||
Segment revenues
|
1,868
|
|
|
1,861
|
|
|
5,498
|
|
|
5,431
|
|
||||
Other revenues from managed and franchised properties
|
1,105
|
|
|
1,063
|
|
|
3,342
|
|
|
3,074
|
|
||||
Other revenues
|
24
|
|
|
25
|
|
|
69
|
|
|
67
|
|
||||
Intersegment fees elimination
(1)
|
(55
|
)
|
|
(54
|
)
|
|
(166
|
)
|
|
(156
|
)
|
||||
Total revenues
|
$
|
2,942
|
|
|
$
|
2,895
|
|
|
$
|
8,743
|
|
|
$
|
8,416
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Rental and other fees
(a)
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
19
|
|
|
$
|
17
|
|
Management, royalty and intellectual property fees
(b)
|
33
|
|
|
33
|
|
|
104
|
|
|
99
|
|
||||
Licensing fee
(c)
|
12
|
|
|
11
|
|
|
33
|
|
|
31
|
|
||||
Laundry services
(d)
|
3
|
|
|
3
|
|
|
6
|
|
|
6
|
|
||||
Other
(e)
|
1
|
|
|
1
|
|
|
4
|
|
|
3
|
|
||||
Intersegment fees elimination
|
$
|
55
|
|
|
$
|
54
|
|
|
$
|
166
|
|
|
$
|
156
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Ownership
(1)(2)
|
$
|
264
|
|
|
$
|
281
|
|
|
$
|
770
|
|
|
$
|
789
|
|
Management and franchise
(2)
|
470
|
|
|
438
|
|
|
1,350
|
|
|
1,263
|
|
||||
Timeshare
(2)
|
85
|
|
|
99
|
|
|
278
|
|
|
259
|
|
||||
Segment Adjusted EBITDA
|
819
|
|
|
818
|
|
|
2,398
|
|
|
2,311
|
|
||||
Corporate and other
(2)
|
(54
|
)
|
|
(60
|
)
|
|
(174
|
)
|
|
(177
|
)
|
||||
Interest expense
|
(148
|
)
|
|
(138
|
)
|
|
(434
|
)
|
|
(431
|
)
|
||||
Income tax expense
|
(145
|
)
|
|
(247
|
)
|
|
(255
|
)
|
|
(555
|
)
|
||||
Depreciation and amortization
|
(169
|
)
|
|
(171
|
)
|
|
(509
|
)
|
|
(519
|
)
|
||||
Interest expense, income tax and depreciation and amortization included in equity in earnings from unconsolidated affiliates
|
(8
|
)
|
|
(6
|
)
|
|
(23
|
)
|
|
(20
|
)
|
||||
Gain on sales of assets, net
|
—
|
|
|
164
|
|
|
2
|
|
|
306
|
|
||||
Loss on foreign currency transactions
|
(8
|
)
|
|
(8
|
)
|
|
(33
|
)
|
|
(21
|
)
|
||||
FF&E replacement reserve
|
(13
|
)
|
|
(9
|
)
|
|
(42
|
)
|
|
(36
|
)
|
||||
Share-based compensation expense
|
(26
|
)
|
|
(21
|
)
|
|
(70
|
)
|
|
(143
|
)
|
||||
Impairment loss
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
||||
Other gain (loss), net
|
(10
|
)
|
|
1
|
|
|
(15
|
)
|
|
(6
|
)
|
||||
Other adjustment items
|
(46
|
)
|
|
(40
|
)
|
|
(84
|
)
|
|
(109
|
)
|
||||
Net income
|
$
|
192
|
|
|
$
|
283
|
|
|
$
|
746
|
|
|
$
|
600
|
|
(1)
|
Includes unconsolidated affiliate Adjusted EBITDA.
|
(2)
|
Our measures of Adjusted EBITDA included intercompany charges that were eliminated in our condensed consolidated financial statements. Refer to the footnote to the segment revenues table for detail of the intercompany charges.
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Ownership
|
$
|
11,298
|
|
|
$
|
11,269
|
|
Management and franchise
|
10,314
|
|
|
10,392
|
|
||
Timeshare
|
2,114
|
|
|
1,935
|
|
||
Corporate and other
|
2,145
|
|
|
2,026
|
|
||
|
$
|
25,871
|
|
|
$
|
25,622
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Ownership
|
$
|
203
|
|
|
$
|
200
|
|
Timeshare
|
15
|
|
|
7
|
|
||
Corporate and other
|
9
|
|
|
7
|
|
||
|
$
|
227
|
|
|
$
|
214
|
|
|
September 30, 2016
|
||||||||||||||||||||||
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
|||||||||||||
|
(in millions)
|
||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
78
|
|
|
$
|
781
|
|
|
$
|
—
|
|
|
$
|
859
|
|
Restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
171
|
|
|
101
|
|
|
—
|
|
|
272
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
594
|
|
|
427
|
|
|
—
|
|
|
1,021
|
|
||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
24
|
|
|
42
|
|
|
(66
|
)
|
|
—
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
486
|
|
|
22
|
|
|
—
|
|
|
508
|
|
||||||
Current portion of financing receivables, net
|
—
|
|
|
—
|
|
|
59
|
|
|
69
|
|
|
—
|
|
|
128
|
|
||||||
Prepaid expenses
|
—
|
|
|
—
|
|
|
62
|
|
|
113
|
|
|
(4
|
)
|
|
171
|
|
||||||
Income taxes receivable
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
10
|
|
|
38
|
|
|
—
|
|
|
48
|
|
||||||
Total current assets
|
—
|
|
|
—
|
|
|
1,501
|
|
|
1,593
|
|
|
(70
|
)
|
|
3,024
|
|
||||||
Property, Intangibles and Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
299
|
|
|
8,742
|
|
|
(21
|
)
|
|
9,020
|
|
||||||
Financing receivables, net
|
—
|
|
|
—
|
|
|
571
|
|
|
358
|
|
|
—
|
|
|
929
|
|
||||||
Investments in affiliates
|
—
|
|
|
—
|
|
|
80
|
|
|
52
|
|
|
—
|
|
|
132
|
|
||||||
Investments in subsidiaries
|
6,506
|
|
|
12,205
|
|
|
6,537
|
|
|
—
|
|
|
(25,248
|
)
|
|
—
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
3,851
|
|
|
2,004
|
|
|
—
|
|
|
5,855
|
|
||||||
Brands
|
—
|
|
|
—
|
|
|
4,405
|
|
|
503
|
|
|
—
|
|
|
4,908
|
|
||||||
Management and franchise contracts, net
|
—
|
|
|
—
|
|
|
791
|
|
|
253
|
|
|
—
|
|
|
1,044
|
|
||||||
Other intangible assets, net
|
—
|
|
|
—
|
|
|
367
|
|
|
158
|
|
|
—
|
|
|
525
|
|
||||||
Deferred income tax assets
|
10
|
|
|
6
|
|
|
—
|
|
|
75
|
|
|
(16
|
)
|
|
75
|
|
||||||
Other
|
—
|
|
|
7
|
|
|
205
|
|
|
147
|
|
|
—
|
|
|
359
|
|
||||||
Total property, intangibles and other assets
|
6,516
|
|
|
12,218
|
|
|
17,106
|
|
|
12,292
|
|
|
(25,285
|
)
|
|
22,847
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL ASSETS
|
$
|
6,516
|
|
|
$
|
12,218
|
|
|
$
|
18,607
|
|
|
$
|
13,885
|
|
|
$
|
(25,355
|
)
|
|
$
|
25,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable, accrued expenses and other
|
$
|
—
|
|
|
$
|
49
|
|
|
$
|
1,625
|
|
|
$
|
684
|
|
|
$
|
(4
|
)
|
|
$
|
2,354
|
|
Intercompany payables
|
—
|
|
|
—
|
|
|
42
|
|
|
31
|
|
|
(73
|
)
|
|
—
|
|
||||||
Current maturities of long-term debt
|
—
|
|
|
(9
|
)
|
|
(3
|
)
|
|
113
|
|
|
—
|
|
|
101
|
|
||||||
Current maturities of timeshare debt
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
80
|
|
||||||
Income taxes payable
|
—
|
|
|
—
|
|
|
28
|
|
|
35
|
|
|
—
|
|
|
63
|
|
||||||
Total current liabilities
|
—
|
|
|
40
|
|
|
1,692
|
|
|
943
|
|
|
(77
|
)
|
|
2,598
|
|
||||||
Long-term debt
|
—
|
|
|
5,651
|
|
|
1,038
|
|
|
3,194
|
|
|
—
|
|
|
9,883
|
|
||||||
Timeshare debt
|
—
|
|
|
—
|
|
|
—
|
|
|
337
|
|
|
—
|
|
|
337
|
|
||||||
Deferred revenues
|
—
|
|
|
—
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
96
|
|
||||||
Deferred income tax liabilities
|
—
|
|
|
—
|
|
|
1,920
|
|
|
2,583
|
|
|
(16
|
)
|
|
4,487
|
|
||||||
Liability for guest loyalty program
|
—
|
|
|
—
|
|
|
853
|
|
|
—
|
|
|
—
|
|
|
853
|
|
||||||
Other
|
—
|
|
|
21
|
|
|
803
|
|
|
302
|
|
|
—
|
|
|
1,126
|
|
||||||
Total liabilities
|
—
|
|
|
5,712
|
|
|
6,402
|
|
|
7,359
|
|
|
(93
|
)
|
|
19,380
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Hilton stockholders' equity
|
6,516
|
|
|
6,506
|
|
|
12,205
|
|
|
6,551
|
|
|
(25,262
|
)
|
|
6,516
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
||||||
Total equity
|
6,516
|
|
|
6,506
|
|
|
12,205
|
|
|
6,526
|
|
|
(25,262
|
)
|
|
6,491
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
6,516
|
|
|
$
|
12,218
|
|
|
$
|
18,607
|
|
|
$
|
13,885
|
|
|
$
|
(25,355
|
)
|
|
$
|
25,871
|
|
|
December 31, 2015
|
||||||||||||||||||||||
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
|||||||||||||
|
(in millions)
|
||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
223
|
|
|
$
|
386
|
|
|
$
|
—
|
|
|
$
|
609
|
|
Restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
148
|
|
|
99
|
|
|
—
|
|
|
247
|
|
||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
501
|
|
|
375
|
|
|
—
|
|
|
876
|
|
||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
89
|
|
|
—
|
|
|
(89
|
)
|
|
—
|
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
419
|
|
|
23
|
|
|
—
|
|
|
442
|
|
||||||
Current portion of financing receivables, net
|
—
|
|
|
—
|
|
|
55
|
|
|
74
|
|
|
—
|
|
|
129
|
|
||||||
Prepaid expenses
|
—
|
|
|
—
|
|
|
39
|
|
|
129
|
|
|
(21
|
)
|
|
147
|
|
||||||
Income taxes receivable
|
—
|
|
|
—
|
|
|
120
|
|
|
—
|
|
|
(23
|
)
|
|
97
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
9
|
|
|
29
|
|
|
—
|
|
|
38
|
|
||||||
Total current assets
|
—
|
|
|
—
|
|
|
1,603
|
|
|
1,115
|
|
|
(133
|
)
|
|
2,585
|
|
||||||
Property, Intangibles and Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
304
|
|
|
8,815
|
|
|
—
|
|
|
9,119
|
|
||||||
Financing receivables, net
|
—
|
|
|
—
|
|
|
451
|
|
|
436
|
|
|
—
|
|
|
887
|
|
||||||
Investments in affiliates
|
—
|
|
|
—
|
|
|
94
|
|
|
44
|
|
|
—
|
|
|
138
|
|
||||||
Investments in subsidiaries
|
6,166
|
|
|
11,854
|
|
|
5,232
|
|
|
—
|
|
|
(23,252
|
)
|
|
—
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
3,851
|
|
|
2,036
|
|
|
—
|
|
|
5,887
|
|
||||||
Brands
|
—
|
|
|
—
|
|
|
4,405
|
|
|
514
|
|
|
—
|
|
|
4,919
|
|
||||||
Management and franchise contracts, net
|
—
|
|
|
—
|
|
|
877
|
|
|
272
|
|
|
—
|
|
|
1,149
|
|
||||||
Other intangible assets, net
|
—
|
|
|
—
|
|
|
402
|
|
|
184
|
|
|
—
|
|
|
586
|
|
||||||
Deferred income tax assets
|
24
|
|
|
3
|
|
|
—
|
|
|
78
|
|
|
(27
|
)
|
|
78
|
|
||||||
Other
|
—
|
|
|
9
|
|
|
165
|
|
|
100
|
|
|
—
|
|
|
274
|
|
||||||
Total property, intangibles and other assets
|
6,190
|
|
|
11,866
|
|
|
15,781
|
|
|
12,479
|
|
|
(23,279
|
)
|
|
23,037
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL ASSETS
|
$
|
6,190
|
|
|
$
|
11,866
|
|
|
$
|
17,384
|
|
|
$
|
13,594
|
|
|
$
|
(23,412
|
)
|
|
$
|
25,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable, accrued expenses and other
|
$
|
—
|
|
|
$
|
39
|
|
|
$
|
1,542
|
|
|
$
|
646
|
|
|
$
|
(21
|
)
|
|
$
|
2,206
|
|
Intercompany payables
|
—
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|
(89
|
)
|
|
—
|
|
||||||
Current maturities of long-term debt
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
106
|
|
|
—
|
|
|
94
|
|
||||||
Current maturities of timeshare debt
|
—
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|
—
|
|
|
110
|
|
||||||
Income taxes payable
|
—
|
|
|
—
|
|
|
6
|
|
|
50
|
|
|
(23
|
)
|
|
33
|
|
||||||
Total current liabilities
|
—
|
|
|
27
|
|
|
1,548
|
|
|
1,001
|
|
|
(133
|
)
|
|
2,443
|
|
||||||
Long-term debt
|
—
|
|
|
5,659
|
|
|
54
|
|
|
4,144
|
|
|
—
|
|
|
9,857
|
|
||||||
Timeshare debt
|
—
|
|
|
—
|
|
|
—
|
|
|
392
|
|
|
—
|
|
|
392
|
|
||||||
Deferred revenues
|
—
|
|
|
—
|
|
|
282
|
|
|
1
|
|
|
—
|
|
|
283
|
|
||||||
Deferred income tax liabilities
|
—
|
|
|
—
|
|
|
2,041
|
|
|
2,616
|
|
|
(27
|
)
|
|
4,630
|
|
||||||
Liability for guest loyalty program
|
—
|
|
|
—
|
|
|
784
|
|
|
—
|
|
|
—
|
|
|
784
|
|
||||||
Other
|
205
|
|
|
14
|
|
|
821
|
|
|
242
|
|
|
—
|
|
|
1,282
|
|
||||||
Total liabilities
|
205
|
|
|
5,700
|
|
|
5,530
|
|
|
8,396
|
|
|
(160
|
)
|
|
19,671
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Hilton stockholders' equity
|
5,985
|
|
|
6,166
|
|
|
11,854
|
|
|
5,232
|
|
|
(23,252
|
)
|
|
5,985
|
|
||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
—
|
|
|
(34
|
)
|
||||||
Total equity
|
5,985
|
|
|
6,166
|
|
|
11,854
|
|
|
5,198
|
|
|
(23,252
|
)
|
|
5,951
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
6,190
|
|
|
$
|
11,866
|
|
|
$
|
17,384
|
|
|
$
|
13,594
|
|
|
$
|
(23,412
|
)
|
|
$
|
25,622
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
63
|
|
|
$
|
977
|
|
|
$
|
(7
|
)
|
|
$
|
1,033
|
|
Management and franchise fees and other
|
—
|
|
|
—
|
|
|
377
|
|
|
93
|
|
|
(24
|
)
|
|
446
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
341
|
|
|
17
|
|
|
—
|
|
|
358
|
|
||||||
|
—
|
|
|
—
|
|
|
781
|
|
|
1,087
|
|
|
(31
|
)
|
|
1,837
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,306
|
|
|
123
|
|
|
(324
|
)
|
|
1,105
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
2,087
|
|
|
1,210
|
|
|
(355
|
)
|
|
2,942
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
46
|
|
|
747
|
|
|
(22
|
)
|
|
771
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
259
|
|
|
4
|
|
|
(6
|
)
|
|
257
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
81
|
|
|
88
|
|
|
—
|
|
|
169
|
|
||||||
General, administrative and other
|
—
|
|
|
—
|
|
|
123
|
|
|
27
|
|
|
(3
|
)
|
|
147
|
|
||||||
|
—
|
|
|
—
|
|
|
509
|
|
|
866
|
|
|
(31
|
)
|
|
1,344
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,306
|
|
|
123
|
|
|
(324
|
)
|
|
1,105
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
1,815
|
|
|
989
|
|
|
(355
|
)
|
|
2,449
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
272
|
|
|
221
|
|
|
—
|
|
|
493
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
||||||
Interest expense
|
—
|
|
|
(65
|
)
|
|
(24
|
)
|
|
(59
|
)
|
|
—
|
|
|
(148
|
)
|
||||||
Equity in earnings from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
5
|
|
|
2
|
|
|
—
|
|
|
7
|
|
||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
12
|
|
|
—
|
|
|
(8
|
)
|
||||||
Other loss, net
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(10
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(70
|
)
|
|
235
|
|
|
172
|
|
|
—
|
|
|
337
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
1
|
|
|
27
|
|
|
(105
|
)
|
|
(68
|
)
|
|
—
|
|
|
(145
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in earnings from subsidiaries
|
1
|
|
|
(43
|
)
|
|
130
|
|
|
104
|
|
|
—
|
|
|
192
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
186
|
|
|
229
|
|
|
99
|
|
|
—
|
|
|
(514
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
187
|
|
|
186
|
|
|
229
|
|
|
104
|
|
|
(514
|
)
|
|
192
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
187
|
|
|
$
|
186
|
|
|
$
|
229
|
|
|
$
|
99
|
|
|
$
|
(514
|
)
|
|
$
|
187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
187
|
|
|
$
|
189
|
|
|
$
|
214
|
|
|
$
|
117
|
|
|
$
|
(514
|
)
|
|
$
|
193
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
187
|
|
|
$
|
189
|
|
|
$
|
214
|
|
|
$
|
111
|
|
|
$
|
(514
|
)
|
|
$
|
187
|
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
64
|
|
|
$
|
1,025
|
|
|
$
|
(7
|
)
|
|
$
|
1,082
|
|
Management and franchise fees and other
|
—
|
|
|
—
|
|
|
355
|
|
|
86
|
|
|
(25
|
)
|
|
416
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
314
|
|
|
20
|
|
|
—
|
|
|
334
|
|
||||||
|
—
|
|
|
—
|
|
|
733
|
|
|
1,131
|
|
|
(32
|
)
|
|
1,832
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,199
|
|
|
116
|
|
|
(252
|
)
|
|
1,063
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
1,932
|
|
|
1,247
|
|
|
(284
|
)
|
|
2,895
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
46
|
|
|
773
|
|
|
(21
|
)
|
|
798
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
221
|
|
|
4
|
|
|
(6
|
)
|
|
219
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
82
|
|
|
89
|
|
|
—
|
|
|
171
|
|
||||||
General, administrative and other
|
—
|
|
|
—
|
|
|
117
|
|
|
33
|
|
|
(5
|
)
|
|
145
|
|
||||||
|
—
|
|
|
—
|
|
|
466
|
|
|
899
|
|
|
(32
|
)
|
|
1,333
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,199
|
|
|
116
|
|
|
(252
|
)
|
|
1,063
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
1,665
|
|
|
1,015
|
|
|
(284
|
)
|
|
2,396
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on sales of assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
267
|
|
|
396
|
|
|
—
|
|
|
663
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
||||||
Interest expense
|
—
|
|
|
(69
|
)
|
|
(9
|
)
|
|
(60
|
)
|
|
—
|
|
|
(138
|
)
|
||||||
Equity in earnings from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
—
|
|
|
9
|
|
||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
213
|
|
|
(221
|
)
|
|
—
|
|
|
(8
|
)
|
||||||
Other gain, net
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(69
|
)
|
|
480
|
|
|
119
|
|
|
—
|
|
|
530
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
(1
|
)
|
|
27
|
|
|
(200
|
)
|
|
(73
|
)
|
|
—
|
|
|
(247
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in earnings from subsidiaries
|
(1
|
)
|
|
(42
|
)
|
|
280
|
|
|
46
|
|
|
—
|
|
|
283
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
280
|
|
|
322
|
|
|
42
|
|
|
—
|
|
|
(644
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
279
|
|
|
280
|
|
|
322
|
|
|
46
|
|
|
(644
|
)
|
|
283
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
279
|
|
|
$
|
280
|
|
|
$
|
322
|
|
|
$
|
42
|
|
|
$
|
(644
|
)
|
|
$
|
279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
159
|
|
|
$
|
274
|
|
|
$
|
301
|
|
|
$
|
(47
|
)
|
|
$
|
(524
|
)
|
|
$
|
163
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Comprehensive income (loss) attributable to Hilton stockholders
|
$
|
159
|
|
|
$
|
274
|
|
|
$
|
301
|
|
|
$
|
(51
|
)
|
|
$
|
(524
|
)
|
|
$
|
159
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
177
|
|
|
$
|
2,950
|
|
|
$
|
(22
|
)
|
|
$
|
3,105
|
|
Management and franchise fees and other
|
—
|
|
|
—
|
|
|
1,089
|
|
|
265
|
|
|
(78
|
)
|
|
1,276
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
969
|
|
|
51
|
|
|
—
|
|
|
1,020
|
|
||||||
|
—
|
|
|
—
|
|
|
2,235
|
|
|
3,266
|
|
|
(100
|
)
|
|
5,401
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
3,798
|
|
|
369
|
|
|
(825
|
)
|
|
3,342
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
6,033
|
|
|
3,635
|
|
|
(925
|
)
|
|
8,743
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
133
|
|
|
2,273
|
|
|
(71
|
)
|
|
2,335
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
704
|
|
|
12
|
|
|
(19
|
)
|
|
697
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
242
|
|
|
267
|
|
|
—
|
|
|
509
|
|
||||||
Impairment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||||
General, administrative and other
|
—
|
|
|
—
|
|
|
303
|
|
|
99
|
|
|
(10
|
)
|
|
392
|
|
||||||
|
—
|
|
|
—
|
|
|
1,382
|
|
|
2,666
|
|
|
(100
|
)
|
|
3,948
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
3,798
|
|
|
369
|
|
|
(825
|
)
|
|
3,342
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
5,180
|
|
|
3,035
|
|
|
(925
|
)
|
|
7,290
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on sales of assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
853
|
|
|
602
|
|
|
—
|
|
|
1,455
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
—
|
|
|
7
|
|
|
3
|
|
|
—
|
|
|
10
|
|
||||||
Interest expense
|
—
|
|
|
(199
|
)
|
|
(55
|
)
|
|
(180
|
)
|
|
—
|
|
|
(434
|
)
|
||||||
Equity in earnings from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
15
|
|
|
3
|
|
|
—
|
|
|
18
|
|
||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
(82
|
)
|
|
49
|
|
|
—
|
|
|
(33
|
)
|
||||||
Other loss, net
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(15
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(204
|
)
|
|
738
|
|
|
467
|
|
|
—
|
|
|
1,001
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
193
|
|
|
78
|
|
|
(347
|
)
|
|
(179
|
)
|
|
—
|
|
|
(255
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in earnings from subsidiaries
|
193
|
|
|
(126
|
)
|
|
391
|
|
|
288
|
|
|
—
|
|
|
746
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
542
|
|
|
668
|
|
|
277
|
|
|
—
|
|
|
(1,487
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
735
|
|
|
542
|
|
|
668
|
|
|
288
|
|
|
(1,487
|
)
|
|
746
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
735
|
|
|
$
|
542
|
|
|
$
|
668
|
|
|
$
|
277
|
|
|
$
|
(1,487
|
)
|
|
$
|
735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
693
|
|
|
$
|
539
|
|
|
$
|
614
|
|
|
$
|
302
|
|
|
$
|
(1,445
|
)
|
|
$
|
703
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
693
|
|
|
$
|
539
|
|
|
$
|
614
|
|
|
$
|
292
|
|
|
$
|
(1,445
|
)
|
|
$
|
693
|
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
177
|
|
|
$
|
3,016
|
|
|
$
|
(19
|
)
|
|
$
|
3,174
|
|
Management and franchise fees and other
|
—
|
|
|
—
|
|
|
1,026
|
|
|
243
|
|
|
(75
|
)
|
|
1,194
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
911
|
|
|
63
|
|
|
—
|
|
|
974
|
|
||||||
|
—
|
|
|
—
|
|
|
2,114
|
|
|
3,322
|
|
|
(94
|
)
|
|
5,342
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
3,449
|
|
|
345
|
|
|
(720
|
)
|
|
3,074
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
5,563
|
|
|
3,667
|
|
|
(814
|
)
|
|
8,416
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
128
|
|
|
2,321
|
|
|
(66
|
)
|
|
2,383
|
|
||||||
Timeshare
|
—
|
|
|
—
|
|
|
678
|
|
|
12
|
|
|
(17
|
)
|
|
673
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
255
|
|
|
264
|
|
|
—
|
|
|
519
|
|
||||||
General, administrative and other
|
—
|
|
|
—
|
|
|
405
|
|
|
99
|
|
|
(11
|
)
|
|
493
|
|
||||||
|
—
|
|
|
—
|
|
|
1,466
|
|
|
2,696
|
|
|
(94
|
)
|
|
4,068
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
3,449
|
|
|
345
|
|
|
(720
|
)
|
|
3,074
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
4,915
|
|
|
3,041
|
|
|
(814
|
)
|
|
7,142
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on sales of assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|
306
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
648
|
|
|
932
|
|
|
—
|
|
|
1,580
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
—
|
|
|
9
|
|
|
2
|
|
|
—
|
|
|
11
|
|
||||||
Interest expense
|
—
|
|
|
(213
|
)
|
|
(37
|
)
|
|
(181
|
)
|
|
—
|
|
|
(431
|
)
|
||||||
Equity in earnings from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
18
|
|
|
4
|
|
|
—
|
|
|
22
|
|
||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
73
|
|
|
(94
|
)
|
|
—
|
|
|
(21
|
)
|
||||||
Other loss, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(213
|
)
|
|
711
|
|
|
657
|
|
|
—
|
|
|
1,155
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
(6
|
)
|
|
82
|
|
|
(299
|
)
|
|
(332
|
)
|
|
—
|
|
|
(555
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in earnings from subsidiaries
|
(6
|
)
|
|
(131
|
)
|
|
412
|
|
|
325
|
|
|
—
|
|
|
600
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
596
|
|
|
727
|
|
|
315
|
|
|
—
|
|
|
(1,638
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
590
|
|
|
596
|
|
|
727
|
|
|
325
|
|
|
(1,638
|
)
|
|
600
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
590
|
|
|
$
|
596
|
|
|
$
|
727
|
|
|
$
|
315
|
|
|
$
|
(1,638
|
)
|
|
$
|
590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
425
|
|
|
$
|
585
|
|
|
$
|
709
|
|
|
$
|
189
|
|
|
$
|
(1,473
|
)
|
|
$
|
435
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
425
|
|
|
$
|
585
|
|
|
$
|
709
|
|
|
$
|
179
|
|
|
$
|
(1,473
|
)
|
|
$
|
425
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
321
|
|
|
$
|
703
|
|
|
$
|
(88
|
)
|
|
$
|
936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property and equipment
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
(199
|
)
|
|
—
|
|
|
(227
|
)
|
||||||
Payments received on other financing receivables
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||||
Issuance of other financing receivables
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
||||||
Distributions from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||||
Issuance of intercompany receivables
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
42
|
|
|
—
|
|
||||||
Proceeds from asset dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Change in restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||||
Contract acquisition costs
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
(7
|
)
|
|
—
|
|
|
(35
|
)
|
||||||
Capitalized software costs
|
—
|
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
(56
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
—
|
|
|
(143
|
)
|
|
(231
|
)
|
|
42
|
|
|
(332
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Borrowings
|
—
|
|
|
—
|
|
|
1,000
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
||||||
Repayment of debt
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(1,086
|
)
|
|
—
|
|
|
(1,094
|
)
|
||||||
Intercompany borrowings
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
||||||
Debt issuance costs
|
—
|
|
|
(12
|
)
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
||||||
Change in restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
||||||
Intercompany transfers
|
207
|
|
|
20
|
|
|
(1,342
|
)
|
|
1,115
|
|
|
—
|
|
|
—
|
|
||||||
Dividends paid
|
(207
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(207
|
)
|
||||||
Intercompany dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(88
|
)
|
|
88
|
|
|
—
|
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Net cash used in financing activities
|
—
|
|
|
—
|
|
|
(323
|
)
|
|
(84
|
)
|
|
46
|
|
|
(361
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
395
|
|
|
—
|
|
|
250
|
|
||||||
Cash and cash equivalents, beginning of period
|
—
|
|
|
—
|
|
|
223
|
|
|
386
|
|
|
—
|
|
|
609
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
78
|
|
|
$
|
781
|
|
|
$
|
—
|
|
|
$
|
859
|
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
722
|
|
|
$
|
456
|
|
|
$
|
(187
|
)
|
|
$
|
991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property and equipment
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(195
|
)
|
|
—
|
|
|
(214
|
)
|
||||||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,410
|
)
|
|
—
|
|
|
(1,410
|
)
|
||||||
Payments received on other financing receivables
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
||||||
Issuance of other financing receivables
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(2
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Investments in affiliates
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Distributions from unconsolidated affiliates
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||||
Issuance of intercompany receivables
|
—
|
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
184
|
|
|
—
|
|
||||||
Payments received on intercompany receivables
|
—
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
||||||
Proceeds from asset dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|
2,197
|
|
|
—
|
|
|
2,197
|
|
||||||
Contract acquisition costs
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
(13
|
)
|
|
—
|
|
|
(27
|
)
|
||||||
Capitalized software costs
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
||||||
Net cash provided by (used in) investing activities
|
—
|
|
|
—
|
|
|
(64
|
)
|
|
579
|
|
|
—
|
|
|
515
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
35
|
|
||||||
Repayment of debt
|
—
|
|
|
(675
|
)
|
|
—
|
|
|
(667
|
)
|
|
—
|
|
|
(1,342
|
)
|
||||||
Intercompany borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
|
(184
|
)
|
|
—
|
|
||||||
Repayment of intercompany borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
(184
|
)
|
|
184
|
|
|
—
|
|
||||||
Change in restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
(53
|
)
|
||||||
Intercompany transfers
|
69
|
|
|
675
|
|
|
(666
|
)
|
|
(78
|
)
|
|
—
|
|
|
—
|
|
||||||
Dividends paid
|
(69
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(69
|
)
|
||||||
Intercompany dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(187
|
)
|
|
187
|
|
|
—
|
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Excess tax benefits from share-based compensation
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||
Net cash used in financing activities
|
—
|
|
|
—
|
|
|
(658
|
)
|
|
(956
|
)
|
|
187
|
|
|
(1,427
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||||
Net increase in cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
62
|
|
||||||
Cash and cash equivalents, beginning of period
|
—
|
|
|
—
|
|
|
270
|
|
|
296
|
|
|
—
|
|
|
566
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
270
|
|
|
$
|
358
|
|
|
$
|
—
|
|
|
$
|
628
|
|
•
|
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
|
|
Nine Months Ended
|
|
Variance
|
||||||||
|
September 30, 2016
|
|
2016 vs. 2015
|
|
September 30, 2016
|
|
2016 vs. 2015
|
||||||||
Owned and leased hotels
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
82.8
|
%
|
|
(1.2
|
)%
|
pts.
|
|
79.2
|
%
|
|
(1.2
|
)%
|
pts.
|
||
ADR
|
$
|
185.91
|
|
|
0.3
|
%
|
|
|
$
|
185.93
|
|
|
2.1
|
%
|
|
RevPAR
|
$
|
153.87
|
|
|
(1.2
|
)%
|
|
|
$
|
147.32
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Managed and franchised hotels
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
79.1
|
%
|
|
(0.2
|
)%
|
pts.
|
|
76.0
|
%
|
|
—
|
%
|
pts.
|
||
ADR
|
$
|
141.27
|
|
|
1.7
|
%
|
|
|
$
|
140.31
|
|
|
2.3
|
%
|
|
RevPAR
|
$
|
111.77
|
|
|
1.5
|
%
|
|
|
$
|
106.63
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
System-wide
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
79.5
|
%
|
|
(0.2
|
)%
|
pts.
|
|
76.3
|
%
|
|
(0.1
|
)%
|
pts.
|
||
ADR
|
$
|
145.43
|
|
|
1.5
|
%
|
|
|
$
|
144.56
|
|
|
2.2
|
%
|
|
RevPAR
|
$
|
115.54
|
|
|
1.3
|
%
|
|
|
$
|
110.28
|
|
|
2.1
|
%
|
|
|
Three Months Ended
|
|
Variance
|
|
Nine Months Ended
|
|
Variance
|
||||||||
|
September 30, 2016
|
|
2016 vs. 2015
|
|
September 30, 2016
|
|
2016 vs. 2015
|
||||||||
U.S.
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
80.4
|
%
|
|
(0.3
|
)%
|
pts.
|
|
77.7
|
%
|
|
(0.1
|
)%
|
pts.
|
||
ADR
|
$
|
145.68
|
|
|
1.9
|
%
|
|
|
$
|
144.59
|
|
|
2.2
|
%
|
|
RevPAR
|
$
|
117.10
|
|
|
1.5
|
%
|
|
|
$
|
112.28
|
|
|
2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Americas (excluding U.S.)
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
78.2
|
%
|
|
0.5
|
%
|
pts.
|
|
73.4
|
%
|
|
0.1
|
%
|
pts.
|
||
ADR
|
$
|
125.71
|
|
|
5.3
|
%
|
|
|
$
|
122.91
|
|
|
4.5
|
%
|
|
RevPAR
|
$
|
98.37
|
|
|
6.0
|
%
|
|
|
$
|
90.26
|
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Europe
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
79.6
|
%
|
|
(1.7
|
)%
|
pts.
|
|
73.7
|
%
|
|
(1.3
|
)%
|
pts.
|
||
ADR
|
$
|
148.66
|
|
|
1.5
|
%
|
|
|
$
|
148.38
|
|
|
2.7
|
%
|
|
RevPAR
|
$
|
118.36
|
|
|
(0.7
|
)%
|
|
|
$
|
109.29
|
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
MEA
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
65.9
|
%
|
|
(0.7
|
)%
|
pts.
|
|
63.3
|
%
|
|
(3.5
|
)%
|
pts.
|
||
ADR
|
$
|
164.54
|
|
|
(1.6
|
)%
|
|
|
$
|
168.94
|
|
|
5.3
|
%
|
|
RevPAR
|
$
|
108.37
|
|
|
(2.6
|
)%
|
|
|
$
|
106.99
|
|
|
(0.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asia Pacific
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
74.4
|
%
|
|
3.8
|
%
|
pts.
|
|
70.7
|
%
|
|
3.9
|
%
|
pts.
|
||
ADR
|
$
|
144.87
|
|
|
(4.5
|
)%
|
|
|
$
|
145.33
|
|
|
(1.6
|
)%
|
|
RevPAR
|
$
|
107.78
|
|
|
0.6
|
%
|
|
|
$
|
102.74
|
|
|
4.1
|
%
|
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
U.S. owned and leased hotels
|
$
|
614
|
|
|
$
|
611
|
|
|
0.5
|
|
$
|
1,872
|
|
|
$
|
1,807
|
|
|
3.6
|
International owned and leased hotels
|
419
|
|
|
471
|
|
|
(11.0)
|
|
1,233
|
|
|
1,367
|
|
|
(9.8)
|
||||
Total owned and leased hotels
|
$
|
1,033
|
|
|
$
|
1,082
|
|
|
(4.5)
|
|
$
|
3,105
|
|
|
$
|
3,174
|
|
|
(2.2)
|
|
|
|
Increase / (decrease)
|
|
Net increase / (decrease) from acquired and disposed hotels
(1)
|
|
Net increase / (decrease) excluding the effect of acquired and disposed hotels
|
||||||||||||
|
September 30,
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|||||||||||||
|
(in millions)
|
||||||||||||||||||
Three Months Ended
|
|
|
|
|
|
|
|
|
|
||||||||||
Comparable U.S. owned and leased hotels
|
$
|
529
|
|
|
$
|
521
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Non-comparable U.S. owned and leased hotels
|
85
|
|
|
90
|
|
|
(5
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||||
U.S. owned and leased hotels
|
$
|
614
|
|
|
$
|
611
|
|
|
$
|
3
|
|
|
$
|
(2
|
)
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
||||||||||
Comparable U.S. owned and leased hotels
|
$
|
1,575
|
|
|
$
|
1,540
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
35
|
|
Non-comparable U.S. owned and leased hotels
|
297
|
|
|
267
|
|
|
30
|
|
|
41
|
|
|
(11
|
)
|
|||||
U.S. owned and leased hotels
|
$
|
1,872
|
|
|
$
|
1,807
|
|
|
$
|
65
|
|
|
$
|
41
|
|
|
$
|
24
|
|
(1)
|
From January 1, 2015 to
September 30, 2016
,
six
properties were added to our U.S. owned and leased portfolio on a net basis.
|
|
|
|
Decrease
|
|
Net increase / (decrease) due to FX changes
(1)
|
|
Decrease from disposed hotels
(2)
|
|
Net decrease excluding the effect of FX changes and disposed hotels
|
||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
|
September 30,
|
|
|
|
|
||||||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comparable international owned and leased hotels
|
$
|
396
|
|
|
$
|
427
|
|
|
$
|
(31
|
)
|
|
$
|
(17
|
)
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
Non-comparable international owned and leased hotels
|
23
|
|
|
44
|
|
|
(21
|
)
|
|
1
|
|
|
(20
|
)
|
|
(2
|
)
|
||||||
International owned and leased hotels
|
$
|
419
|
|
|
$
|
471
|
|
|
$
|
(52
|
)
|
|
$
|
(16
|
)
|
|
$
|
(20
|
)
|
|
$
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comparable international owned and leased hotels
|
$
|
1,164
|
|
|
$
|
1,203
|
|
|
$
|
(39
|
)
|
|
$
|
(39
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-comparable international owned and leased hotels
|
69
|
|
|
164
|
|
|
(95
|
)
|
|
—
|
|
|
(89
|
)
|
|
(6
|
)
|
||||||
International owned and leased hotels
|
$
|
1,233
|
|
|
$
|
1,367
|
|
|
$
|
(134
|
)
|
|
$
|
(39
|
)
|
|
$
|
(89
|
)
|
|
$
|
(6
|
)
|
(1)
|
Unfavorable movements were a result of the strengthening of the USD compared to other currencies, primarily the British pound, partially offset by the strengthening of the Japanese Yen compared to the USD.
|
(2)
|
From
January 1, 2015
to
September 30, 2016
,
six
properties were removed from our international owned and leased portfolio.
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Management fees
|
$
|
101
|
|
|
$
|
95
|
|
|
6.3
|
|
$
|
305
|
|
|
$
|
289
|
|
|
5.5
|
Franchise fees
|
324
|
|
|
299
|
|
|
8.4
|
|
908
|
|
|
844
|
|
|
7.6
|
||||
Other
|
21
|
|
|
22
|
|
|
(4.5)
|
|
63
|
|
|
61
|
|
|
3.3
|
||||
|
$
|
446
|
|
|
$
|
416
|
|
|
7.2
|
|
$
|
1,276
|
|
|
$
|
1,194
|
|
|
6.9
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Timeshare sales
|
$
|
263
|
|
|
$
|
246
|
|
|
6.9
|
|
$
|
737
|
|
|
$
|
716
|
|
|
2.9
|
Resort operations
|
57
|
|
|
51
|
|
|
11.8
|
|
172
|
|
|
152
|
|
|
13.2
|
||||
Financing and other
|
38
|
|
|
37
|
|
|
2.7
|
|
111
|
|
|
106
|
|
|
4.7
|
||||
|
$
|
358
|
|
|
$
|
334
|
|
|
7.2
|
|
$
|
1,020
|
|
|
$
|
974
|
|
|
4.7
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
U.S. owned and leased hotels
|
$
|
410
|
|
|
$
|
403
|
|
|
1.7
|
|
$
|
1,245
|
|
|
$
|
1,191
|
|
|
4.5
|
International owned and leased hotels
|
361
|
|
|
395
|
|
|
(8.6)
|
|
1,090
|
|
|
1,192
|
|
|
(8.6)
|
||||
Total owned and leased hotels
|
$
|
771
|
|
|
$
|
798
|
|
|
(3.4)
|
|
$
|
2,335
|
|
|
$
|
2,383
|
|
|
(2.0)
|
|
|
|
Increase
|
|
Net increase from acquired and disposed hotels
(1)
|
|
Net increase / (decrease) excluding the effect of acquired and disposed hotels
|
||||||||||||
|
September 30,
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|||||||||||||
|
(in millions)
|
||||||||||||||||||
Three Months Ended
|
|
|
|
|
|
|
|
|
|
||||||||||
Comparable U.S. owned and leased hotels
|
$
|
350
|
|
|
$
|
346
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Non-comparable U.S. owned and leased hotels
|
60
|
|
|
57
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|||||
U.S. owned and leased hotels
|
$
|
410
|
|
|
$
|
403
|
|
|
$
|
7
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
||||||||||
Comparable U.S. owned and leased hotels
|
$
|
1,058
|
|
|
$
|
1,022
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
36
|
|
Non-comparable U.S. owned and leased hotels
|
187
|
|
|
169
|
|
|
18
|
|
|
21
|
|
|
(3
|
)
|
|||||
U.S. owned and leased hotels
|
$
|
1,245
|
|
|
$
|
1,191
|
|
|
$
|
54
|
|
|
$
|
21
|
|
|
$
|
33
|
|
(1)
|
From
January 1, 2015
to
September 30, 2016
,
six
properties were added to our U.S. owned and leased portfolio on a net basis.
|
|
|
|
Decrease
|
|
Net increase / (decrease) due to FX changes
(1)
|
|
Decrease from disposed hotels
(2)
|
|
Net increase / (decrease) excluding the effect of FX changes and disposed hotels
|
||||||||||||||
|
|
|
|
|
|
||||||||||||||||||
|
September 30,
|
|
|
|
|
||||||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comparable international owned and leased hotels
|
$
|
342
|
|
|
$
|
360
|
|
|
$
|
(18
|
)
|
|
$
|
(18
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-comparable international owned and leased hotels
|
19
|
|
|
35
|
|
|
(16
|
)
|
|
1
|
|
|
(17
|
)
|
|
—
|
|
||||||
International owned and leased hotels
|
$
|
361
|
|
|
$
|
395
|
|
|
$
|
(34
|
)
|
|
$
|
(17
|
)
|
|
$
|
(17
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comparable international owned and leased hotels
|
$
|
1,026
|
|
|
$
|
1,055
|
|
|
$
|
(29
|
)
|
|
$
|
(40
|
)
|
|
$
|
—
|
|
|
$
|
11
|
|
Non-comparable international owned and leased hotels
|
64
|
|
|
137
|
|
|
(73
|
)
|
|
(1
|
)
|
|
(67
|
)
|
|
(5
|
)
|
||||||
International owned and leased hotels
|
$
|
1,090
|
|
|
$
|
1,192
|
|
|
$
|
(102
|
)
|
|
$
|
(41
|
)
|
|
$
|
(67
|
)
|
|
$
|
6
|
|
(1)
|
Unfavorable movements were a result of the strengthening of the USD compared to other currencies, primarily the British pound, partially offset by the strengthening of the Japanese Yen compared to the USD.
|
(2)
|
From
January 1, 2015
to
September 30, 2016
,
six
properties were removed from our international owned and leased portfolio.
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Timeshare sales
|
$
|
204
|
|
|
$
|
172
|
|
|
18.6
|
|
$
|
544
|
|
|
$
|
532
|
|
|
2.3
|
Resort operations
|
34
|
|
|
31
|
|
|
9.7
|
|
98
|
|
|
94
|
|
|
4.3
|
||||
Financing and other
|
19
|
|
|
16
|
|
|
18.8
|
|
55
|
|
|
47
|
|
|
17.0
|
||||
|
$
|
257
|
|
|
$
|
219
|
|
|
17.4
|
|
$
|
697
|
|
|
$
|
673
|
|
|
3.6
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Depreciation
|
$
|
86
|
|
|
$
|
88
|
|
|
(2.3)
|
|
$
|
263
|
|
|
$
|
260
|
|
|
1.2
|
Amortization
|
83
|
|
|
83
|
|
|
—
|
|
246
|
|
|
259
|
|
|
(5.0)
|
||||
|
$
|
169
|
|
|
$
|
171
|
|
|
(1.2)
|
|
$
|
509
|
|
|
$
|
519
|
|
|
(1.9)
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
General and administrative
|
$
|
134
|
|
|
$
|
131
|
|
|
2.3
|
|
$
|
342
|
|
|
$
|
448
|
|
|
(23.7)
|
Other
|
13
|
|
|
14
|
|
|
(7.1)
|
|
50
|
|
|
45
|
|
|
11.1
|
||||
|
$
|
147
|
|
|
$
|
145
|
|
|
1.4
|
|
$
|
392
|
|
|
$
|
493
|
|
|
(20.5)
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Gain on sales of assets, net
|
$
|
—
|
|
|
$
|
164
|
|
|
NM
(1)
|
|
$
|
2
|
|
|
$
|
306
|
|
|
(99.3)
|
(1)
|
Fluctuation in terms of percentage change is not meaningful.
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Interest expense
|
$
|
148
|
|
|
$
|
138
|
|
|
7.2
|
|
$
|
434
|
|
|
$
|
431
|
|
|
0.7
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Equity in earnings from unconsolidated affiliates
|
$
|
7
|
|
|
$
|
9
|
|
|
(22.2)
|
|
$
|
18
|
|
|
$
|
22
|
|
|
(18.2)
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Loss on foreign currency transactions
|
$
|
(8
|
)
|
|
$
|
(8
|
)
|
|
—
|
|
$
|
(33
|
)
|
|
$
|
(21
|
)
|
|
57.1
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Other gain (loss), net
|
$
|
(10
|
)
|
|
$
|
1
|
|
|
NM
(1)
|
|
$
|
(15
|
)
|
|
$
|
(6
|
)
|
|
NM
(1)
|
(1)
|
Fluctuation in terms of percentage change is not meaningful.
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Income tax expense
|
$
|
(145
|
)
|
|
$
|
(247
|
)
|
|
(41.3)
|
|
$
|
(255
|
)
|
|
$
|
(555
|
)
|
|
(54.1)
|
|
Three Months Ended
|
|
Percent
|
|
Nine Months Ended
|
|
Percent
|
||||||||||||
|
September 30,
|
|
Change
|
|
September 30,
|
|
Change
|
||||||||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ownership
|
$
|
1,040
|
|
|
$
|
1,089
|
|
|
(4.5)
|
|
$
|
3,128
|
|
|
$
|
3,194
|
|
|
(2.1)
|
Management and franchise
|
470
|
|
|
438
|
|
|
7.3
|
|
1,350
|
|
|
1,263
|
|
|
6.9
|
||||
Timeshare
|
358
|
|
|
334
|
|
|
7.2
|
|
1,020
|
|
|
974
|
|
|
4.7
|
||||
Segment revenues
|
1,868
|
|
|
1,861
|
|
|
0.4
|
|
5,498
|
|
|
5,431
|
|
|
1.2
|
||||
Other revenues from managed and franchised properties
|
1,105
|
|
|
1,063
|
|
|
4.0
|
|
3,342
|
|
|
3,074
|
|
|
8.7
|
||||
Other revenues
|
24
|
|
|
25
|
|
|
(4.0)
|
|
69
|
|
|
67
|
|
|
3.0
|
||||
Intersegment fees elimination
|
(55
|
)
|
|
(54
|
)
|
|
1.9
|
|
(166
|
)
|
|
(156
|
)
|
|
6.4
|
||||
Total revenues
|
$
|
2,942
|
|
|
$
|
2,895
|
|
|
1.6
|
|
$
|
8,743
|
|
|
$
|
8,416
|
|
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ownership
|
$
|
264
|
|
|
$
|
281
|
|
|
(6.0)
|
|
$
|
770
|
|
|
$
|
789
|
|
|
(2.4)
|
Management and franchise
|
470
|
|
|
438
|
|
|
7.3
|
|
1,350
|
|
|
1,263
|
|
|
6.9
|
||||
Timeshare
|
85
|
|
|
99
|
|
|
(14.1)
|
|
278
|
|
|
259
|
|
|
7.3
|
||||
Corporate and other
|
(54
|
)
|
|
(60
|
)
|
|
(10.0)
|
|
(174
|
)
|
|
(177
|
)
|
|
(1.7)
|
||||
Adjusted EBITDA
|
$
|
765
|
|
|
$
|
758
|
|
|
0.9
|
|
$
|
2,224
|
|
|
$
|
2,134
|
|
|
4.2
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Net income
|
$
|
192
|
|
|
$
|
283
|
|
|
$
|
746
|
|
|
$
|
600
|
|
Interest expense
|
148
|
|
|
138
|
|
|
434
|
|
|
431
|
|
||||
Income tax expense
|
145
|
|
|
247
|
|
|
255
|
|
|
555
|
|
||||
Depreciation and amortization
|
169
|
|
|
171
|
|
|
509
|
|
|
519
|
|
||||
Interest expense, income tax and depreciation and amortization included in equity in earnings from unconsolidated affiliates
|
8
|
|
|
6
|
|
|
23
|
|
|
20
|
|
||||
EBITDA
|
662
|
|
|
845
|
|
|
1,967
|
|
|
2,125
|
|
||||
Gain on sales of assets, net
|
—
|
|
|
(164
|
)
|
|
(2
|
)
|
|
(306
|
)
|
||||
Loss on foreign currency transactions
|
8
|
|
|
8
|
|
|
33
|
|
|
21
|
|
||||
FF&E replacement reserve
|
13
|
|
|
9
|
|
|
42
|
|
|
36
|
|
||||
Share-based compensation expense
|
26
|
|
|
21
|
|
|
70
|
|
|
143
|
|
||||
Impairment loss
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
||||
Other loss (gain), net
|
10
|
|
|
(1
|
)
|
|
15
|
|
|
6
|
|
||||
Other adjustment items
|
46
|
|
|
40
|
|
|
84
|
|
|
109
|
|
||||
Adjusted EBITDA
|
$
|
765
|
|
|
$
|
758
|
|
|
$
|
2,224
|
|
|
$
|
2,134
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Revenues
|
$
|
1,721
|
|
|
$
|
1,672
|
|
Net income attributable to Hilton stockholders
|
115
|
|
|
211
|
|
||
Capital expenditures for property and equipment
|
142
|
|
|
146
|
|
||
Adjusted EBITDA
(1)
|
531
|
|
|
519
|
|
||
Cash provided by (used in):
|
|
|
|
||||
Operating activities
|
263
|
|
|
293
|
|
||
Investing activities
|
(127
|
)
|
|
308
|
|
||
Financing activities
|
144
|
|
|
(595
|
)
|
(1)
|
The following table provides a reconciliation of our Unrestricted U.S. Real Estate Subsidiaries' net income to EBITDA and Adjusted EBITDA, which we believe is the most closely comparable U.S. GAAP financial measure:
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Net income
|
$
|
117
|
|
|
$
|
213
|
|
Interest expense
|
131
|
|
|
131
|
|
||
Income tax expense
|
79
|
|
|
105
|
|
||
Depreciation and amortization
|
190
|
|
|
181
|
|
||
Interest expense and depreciation and amortization included in equity in earnings from unconsolidated affiliates
|
2
|
|
|
—
|
|
||
EBITDA
|
519
|
|
|
630
|
|
||
Gain on sales of assets, net
|
(1
|
)
|
|
(143
|
)
|
||
Share-based compensation expense
|
1
|
|
|
1
|
|
||
Other loss, net
|
8
|
|
|
30
|
|
||
Other adjustment items
|
4
|
|
|
1
|
|
||
Adjusted EBITDA
|
$
|
531
|
|
|
$
|
519
|
|
|
September 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
(in millions)
|
||||||
Assets
|
$
|
9,124
|
|
|
$
|
8,914
|
|
Liabilities
|
5,581
|
|
|
6,718
|
|
|
As of and for the Nine Months Ended September 30,
|
|
Percent Change
|
||||||
|
2016
|
|
2015
|
|
2016 vs. 2015
|
||||
|
(in millions)
|
|
|
||||||
Net cash provided by operating activities
|
$
|
936
|
|
|
$
|
991
|
|
|
(5.6)
|
Net cash provided by (used in) investing activities
|
(332
|
)
|
|
515
|
|
|
NM
(1)
|
||
Net cash used in financing activities
|
(361
|
)
|
|
(1,427
|
)
|
|
(74.7)
|
||
Working capital surplus
(2)
|
426
|
|
|
111
|
|
|
NM
(1)
|
(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 (File No. 001-36243) filed on 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 (File No. 001-36243) filed on December 17, 2013).
|
4.1
|
|
Indenture, dated as of August 18, 2016, by and among Hilton Escrow Issuer LLC, Hilton Escrow Issuer Corp., the guarantors from time to time party thereto and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K (File No. 001-36243) filed on August 18, 2016).
|
4.2
|
|
Form of 4.250% Senior Note due 2024 (included in Exhibit 4.1).
|
4.3
|
|
Registration Rights Agreement, dated as of August 18, 2016, by and among Hilton Escrow Issuer LLC, Hilton Escrow Issuer Corp. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, on behalf of the initial purchasers (incorporated by reference to Exhibit 4.3 to the Company's Current Report on Form 8-K (File No. 001-36243) filed on August 18, 2016).
|
4.4
|
|
Fourth Supplemental Indenture, dated as of August 19, 2016, between Hilton Domestic Operating Company Inc. and Wilmington Trust, National Association, as trustee.
|
4.5
|
|
Fifth Supplemental Indenture, dated as of September 22, 2016, among Hilton Worldwide Parent LLC, Hilton Worldwide Finance LLC, Hilton Worldwide Finance Corp., and Wilmington Trust, National Association, as trustee.
|
4.6
|
|
First Supplemental Indenture, dated as of September 22, 2016, among Hilton Escrow Issuer LLC, Hilton Escrow Issuer Corp., Hilton Domestic Operating Company Inc., Hilton Worldwide Holdings Inc., Hilton Worldwide Finance LLC, the subsidiary guarantors party thereto, and Wilmington Trust, National Association, as trustee.
|
4.7
|
|
Second Supplemental Indenture, dated as of September 22, 2016, among Hilton Domestic Operating Company Inc., Hilton Worldwide Parent LLC, and Wilmington Trust, National Association.
|
10.1
|
|
Amendment No. 1, dated as of August 18, 2016, to the Credit Agreement, dated as of October 25, 2013, by and among Hilton Worldwide Holdings Inc., Hilton Worldwide Finance LLC, the other guarantors party thereto from time to time, Deutsche Bank AG New York Branch as administrative agent, collateral agent, swing line lender and L/C issuer and the other lenders party thereto from time to time (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K (File No. 001-36243) filed on August 18, 2016).
|
10.2
|
|
Omnibus Amendment No. 4 to Receivables Loan Agreement and Amendment No. 2 to Sale and Contribution Agreement, effective as of August 18, 2016, among Hilton Grand Vacations Trust I LLC, as borrower, Wells Fargo Bank, National Association, as paying agent and securities intermediary, the financial institutions signatory thereto, as managing agents, the financial institutions signatory thereto as committed lenders and Deutsche Bank Securities, Inc., as administrative agent (incorporated by reference to Exhibit 10.11 to Hilton Grand Vacations Inc.'s Registration Statement on Form 10 (File No. 001-37794) filed on September 16, 2016).
|
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
|
By:
|
/s/ W. Steven Standefer
|
Name:
|
W. Steven Standefer
|
Title:
|
Senior Vice President
|
By:
|
/s/ W. Steven Standefer
|
Name:
|
W. Steven Standefer
|
Title:
|
Senior Vice President
|
By:
|
/s/ W. Steven Standefer
|
Name:
|
W. Steven Standefer
|
Title:
|
Senior Vice President
|
By:
|
/s/ W. Thomas Morris, II
|
Name:
|
W. Thomas Morris, II
|
Title:
|
Vice President
|
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Thomas Morris, II
Name: W. Thomas Morris, II Title: Vice President |
By:
|
/s/
Sean M. Dell’Orto
Name: Sean M. Dell’Orto Title: President |
By:
|
/s/
Sean M. Dell’Orto
Name: Sean M. Dell’Orto Title: President |
By:
|
/s/
Sean M. Dell’Orto
Name: Sean M. Dell’Orto Title: Senior Vice President and Treasurer |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
Mark Wang
Name: Mark Wang Title: President |
By:
|
/s/
Mark Wang
Name: Mark Wang Title: President |
By:
|
/s/
Mark Wang
Name: Mark Wang Title: President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
Mark Wang
Name: Mark Wang Title: President |
By:
|
/s/
Mark Wang
Name: Mark Wang Title: President |
By:
|
/s/
Mark Wang
Name: Mark Wang Title: President |
By:
|
/s/
Mark Wang
Name: Mark Wang Title: President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
Mark Wang
Name: Mark Wang Title: President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. Steven Standefer
Name: W. Steven Standefer Title: Senior Vice President |
By:
|
/s/
W. T. Morris, II
Name: W. Thomas Morris, II Title: Vice President |
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2016
|
|
2015
|
||||
Earnings:
|
|
|
|
||||
Income before taxes
|
$
|
1,001
|
|
|
$
|
1,155
|
|
Equity in earnings from unconsolidated affiliates
|
(18
|
)
|
|
(22
|
)
|
||
|
983
|
|
|
1,133
|
|
||
Add:
|
|
|
|
||||
Fixed charges
|
537
|
|
|
533
|
|
||
Distributed income of equity method investees
|
15
|
|
|
22
|
|
||
Subtract:
|
|
|
|
||||
Interest capitalized
|
(3
|
)
|
|
(2
|
)
|
||
Earnings available for fixed charges
|
$
|
1,532
|
|
|
$
|
1,686
|
|
|
|
|
|
||||
Fixed Charges:
|
|
|
|
||||
Interest expense
(1)
|
$
|
434
|
|
|
$
|
431
|
|
Interest capitalized
|
3
|
|
|
2
|
|
||
Estimated interest included in rent expense
|
100
|
|
|
100
|
|
||
Total Fixed Charges
|
$
|
537
|
|
|
$
|
533
|
|
|
|
|
|
||||
Ratio of Earnings to Fixed Charges
|
2.9
|
|
|
3.2
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016 of Hilton Worldwide Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ Christopher J. Nassetta
|
|
Christopher J. Nassetta
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
October 26, 2016
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016 of Hilton Worldwide Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ Kevin J. Jacobs
|
|
Kevin J. Jacobs
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
October 26, 2016
|
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)
|