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
¨
|
Emerging growth company
¨
|
|
|
|
June 30,
|
|
December 31,
|
||||
2017
|
2016
|
||||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
784
|
|
|
$
|
1,062
|
|
Restricted cash and cash equivalents
|
125
|
|
|
121
|
|
||
Accounts receivable, net of allowance for doubtful accounts of $25 and $27
|
921
|
|
|
755
|
|
||
Prepaid expenses
|
123
|
|
|
89
|
|
||
Income taxes receivable
|
—
|
|
|
13
|
|
||
Other
|
46
|
|
|
39
|
|
||
Current assets of discontinued operations
|
—
|
|
|
1,478
|
|
||
Total current assets (variable interest entities - $83 and $167)
|
1,999
|
|
|
3,557
|
|
||
Intangibles and Other Assets:
|
|
|
|
||||
Goodwill
|
5,164
|
|
|
5,218
|
|
||
Brands
|
4,872
|
|
|
4,848
|
|
||
Management and franchise contracts, net
|
930
|
|
|
963
|
|
||
Other intangible assets, net
|
432
|
|
|
447
|
|
||
Property and equipment, net
|
338
|
|
|
341
|
|
||
Deferred income tax assets
|
82
|
|
|
82
|
|
||
Other
|
452
|
|
|
408
|
|
||
Non-current assets of discontinued operations
|
—
|
|
|
10,347
|
|
||
Total intangibles and other assets (variable interest entities - $169 and $569)
|
12,270
|
|
|
22,654
|
|
||
TOTAL ASSETS
|
$
|
14,269
|
|
|
$
|
26,211
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable, accrued expenses and other
|
$
|
1,879
|
|
|
$
|
1,821
|
|
Current maturities of long-term debt
|
48
|
|
|
33
|
|
||
Income taxes payable
|
62
|
|
|
56
|
|
||
Current liabilities of discontinued operations
|
—
|
|
|
774
|
|
||
Total current liabilities (variable interest entities - $54 and $124)
|
1,989
|
|
|
2,684
|
|
||
Long-term debt
|
6,572
|
|
|
6,583
|
|
||
Deferred revenues
|
99
|
|
|
42
|
|
||
Deferred income tax liabilities
|
1,673
|
|
|
1,778
|
|
||
Liability for guest loyalty program
|
884
|
|
|
889
|
|
||
Other
|
1,537
|
|
|
1,492
|
|
||
Non-current liabilities of discontinued operations
|
—
|
|
|
6,894
|
|
||
Total liabilities (variable interest entities - $270 and $766)
|
12,754
|
|
|
20,362
|
|
||
Commitments and contingencies - see Note 14
|
|
|
|
|
|
||
Equity:
|
|
|
|
||||
Preferred stock, $0.01 par value; 3,000,000,000 authorized shares, none issued or outstanding as of June 30, 2017 and December 31, 2016
|
—
|
|
|
—
|
|
||
Common stock
(1)
, $0.01 par value; 10,000,000,000 authorized shares, 330,916,295 issued and 325,235,234 outstanding as of June 30, 2017 and 329,351,581 issued and 329,341,992 outstanding as of December 31, 2016
|
3
|
|
|
3
|
|
||
Treasury stock, at cost; 5,681,061 shares as of June 30, 2017 and 9,589 shares as of December 31, 2016
|
(352
|
)
|
|
—
|
|
||
Additional paid-in capital
(1)
|
10,245
|
|
|
10,220
|
|
||
Accumulated deficit
|
(7,514
|
)
|
|
(3,323
|
)
|
||
Accumulated other comprehensive loss
|
(867
|
)
|
|
(1,001
|
)
|
||
Total Hilton stockholders' equity
|
1,515
|
|
|
5,899
|
|
||
Noncontrolling interests
|
—
|
|
|
(50
|
)
|
||
Total equity
|
1,515
|
|
|
5,849
|
|
||
TOTAL LIABILITIES AND EQUITY
|
$
|
14,269
|
|
|
$
|
26,211
|
|
(1)
|
Balance as of December 31, 2016 was adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See
Note 1
: "
Organization and Basis of Presentation
" for additional information.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Franchise fees
|
$
|
372
|
|
|
$
|
311
|
|
|
$
|
666
|
|
|
$
|
564
|
|
Base and other management fees
|
85
|
|
|
60
|
|
|
168
|
|
|
120
|
|
||||
Incentive management fees
|
56
|
|
|
33
|
|
|
108
|
|
|
69
|
|
||||
Owned and leased hotels
|
377
|
|
|
398
|
|
|
677
|
|
|
717
|
|
||||
Other revenues
|
20
|
|
|
18
|
|
|
57
|
|
|
35
|
|
||||
|
910
|
|
|
820
|
|
|
1,676
|
|
|
1,505
|
|
||||
Other revenues from managed and franchised properties
|
1,436
|
|
|
1,130
|
|
|
2,831
|
|
|
2,171
|
|
||||
Total revenues
|
2,346
|
|
|
1,950
|
|
|
4,507
|
|
|
3,676
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Owned and leased hotels
|
330
|
|
|
349
|
|
|
602
|
|
|
656
|
|
||||
Depreciation and amortization
|
87
|
|
|
91
|
|
|
176
|
|
|
183
|
|
||||
Impairment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||
General and administrative
|
117
|
|
|
97
|
|
|
222
|
|
|
180
|
|
||||
Other expenses
|
11
|
|
|
11
|
|
|
34
|
|
|
29
|
|
||||
|
545
|
|
|
548
|
|
|
1,034
|
|
|
1,063
|
|
||||
Other expenses from managed and franchised properties
|
1,436
|
|
|
1,130
|
|
|
2,831
|
|
|
2,171
|
|
||||
Total expenses
|
1,981
|
|
|
1,678
|
|
|
3,865
|
|
|
3,234
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Gain on sales of assets, net
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating income
|
365
|
|
|
273
|
|
|
642
|
|
|
443
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(100
|
)
|
|
(99
|
)
|
|
(204
|
)
|
|
(189
|
)
|
||||
Gain (loss) on foreign currency transactions
|
5
|
|
|
(14
|
)
|
|
1
|
|
|
(26
|
)
|
||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
||||
Other non-operating income, net
|
5
|
|
|
3
|
|
|
6
|
|
|
5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations before income taxes
|
275
|
|
|
163
|
|
|
385
|
|
|
233
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax benefit (expense)
|
(108
|
)
|
|
(63
|
)
|
|
(143
|
)
|
|
58
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations, net of taxes
|
167
|
|
|
100
|
|
|
242
|
|
|
291
|
|
||||
Income from discontinued operations, net of taxes
|
—
|
|
|
144
|
|
|
—
|
|
|
263
|
|
||||
Net income
|
167
|
|
|
244
|
|
|
242
|
|
|
554
|
|
||||
Net income attributable to noncontrolling interests
|
(1
|
)
|
|
(5
|
)
|
|
(2
|
)
|
|
(6
|
)
|
||||
Net income attributable to Hilton stockholders
|
$
|
166
|
|
|
$
|
239
|
|
|
$
|
240
|
|
|
$
|
548
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share
(1)
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations per share
|
$
|
0.51
|
|
|
$
|
0.29
|
|
|
$
|
0.73
|
|
|
$
|
0.88
|
|
Net income from discontinued operations per share
|
—
|
|
|
0.44
|
|
|
—
|
|
|
0.79
|
|
||||
Net income per share
|
$
|
0.51
|
|
|
$
|
0.73
|
|
|
$
|
0.73
|
|
|
$
|
1.67
|
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations per share
|
$
|
0.51
|
|
|
$
|
0.29
|
|
|
$
|
0.73
|
|
|
$
|
0.87
|
|
Net income from discontinued operations per share
|
—
|
|
|
0.43
|
|
|
—
|
|
|
0.79
|
|
||||
Net income per share
|
$
|
0.51
|
|
|
$
|
0.72
|
|
|
$
|
0.73
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per share
(1)
|
$
|
0.15
|
|
|
$
|
0.21
|
|
|
$
|
0.30
|
|
|
$
|
0.42
|
|
(1)
|
Weighted average shares outstanding used in the computation of basic and diluted earnings per share and cash dividends declared per share for the three and six months ended June 30, 2016 were adjusted to reflect the 1-for-3 reverse stock split that occurred on January 3, 2017. See
Note 1
: "
Organization and Basis of Presentation
" for additional information.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
167
|
|
|
$
|
244
|
|
|
$
|
242
|
|
|
$
|
554
|
|
Other comprehensive income (loss), net of tax benefit (expense):
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustment, net of tax of $—, $(12), $1 and $(15)
|
54
|
|
|
(53
|
)
|
|
74
|
|
|
(40
|
)
|
||||
Pension liability adjustment, net of tax of $—, $—, $(1) and $(1)
|
3
|
|
|
1
|
|
|
4
|
|
|
2
|
|
||||
Cash flow hedge adjustment, net of tax of $2, $—, $4 and $4
|
(5
|
)
|
|
—
|
|
|
(7
|
)
|
|
(6
|
)
|
||||
Total other comprehensive income (loss)
|
52
|
|
|
(52
|
)
|
|
71
|
|
|
(44
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
219
|
|
|
192
|
|
|
313
|
|
|
510
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
(2
|
)
|
|
(5
|
)
|
|
(2
|
)
|
|
(4
|
)
|
||||
Comprehensive income attributable to Hilton stockholders
|
$
|
217
|
|
|
$
|
187
|
|
|
$
|
311
|
|
|
$
|
506
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2017
|
|
2016
|
||||
Operating Activities:
|
|
|
|
||||
Net income
|
$
|
242
|
|
|
$
|
554
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
176
|
|
|
340
|
|
||
Impairment loss
|
—
|
|
|
15
|
|
||
Gain on sales of assets, net
|
—
|
|
|
(2
|
)
|
||
Loss (gain) on foreign currency transactions
|
(1
|
)
|
|
25
|
|
||
Loss on debt extinguishment
|
60
|
|
|
—
|
|
||
Share-based compensation
|
36
|
|
|
27
|
|
||
Deferred income taxes
|
(98
|
)
|
|
(100
|
)
|
||
Working capital changes and other
|
(39
|
)
|
|
(185
|
)
|
||
Net cash provided by operating activities
|
376
|
|
|
674
|
|
||
Investing Activities:
|
|
|
|
||||
Capital expenditures for property and equipment
|
(18
|
)
|
|
(169
|
)
|
||
Proceeds from asset dispositions
|
—
|
|
|
1
|
|
||
Contract acquisition costs
|
(32
|
)
|
|
(18
|
)
|
||
Capitalized software costs
|
(29
|
)
|
|
(35
|
)
|
||
Other
|
(18
|
)
|
|
(15
|
)
|
||
Net cash used in investing activities
|
(97
|
)
|
|
(236
|
)
|
||
Financing Activities:
|
|
|
|
||||
Borrowings
|
1,823
|
|
|
—
|
|
||
Repayment of debt
|
(1,836
|
)
|
|
(64
|
)
|
||
Debt issuance costs and redemption premium
|
(68
|
)
|
|
—
|
|
||
Dividends paid
|
(98
|
)
|
|
(138
|
)
|
||
Cash transferred in spin-offs of Park and HGV
|
(501
|
)
|
|
—
|
|
||
Repurchases of common stock
|
(352
|
)
|
|
—
|
|
||
Distributions to noncontrolling interests
|
(1
|
)
|
|
(4
|
)
|
||
Tax withholdings on share-based compensation
|
(28
|
)
|
|
(13
|
)
|
||
Net cash used in financing activities
|
(1,061
|
)
|
|
(219
|
)
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash, restricted cash and cash equivalents
|
7
|
|
|
6
|
|
||
Net increase (decrease) in cash, restricted cash and cash equivalents
|
(775
|
)
|
|
225
|
|
||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period
|
1,183
|
|
|
633
|
|
||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period
|
501
|
|
|
223
|
|
||
Cash, restricted cash and cash equivalents, beginning of period
|
1,684
|
|
|
856
|
|
||
Cash, restricted cash and cash equivalents from continuing operations, end of period
|
909
|
|
|
718
|
|
||
Cash, restricted cash and cash equivalents from discontinued operations, end of period
|
—
|
|
|
363
|
|
||
Cash, restricted cash and cash equivalents, end of period
|
$
|
909
|
|
|
$
|
1,081
|
|
|
|
|
|
||||
Supplemental Disclosures:
|
|
|
|
||||
Cash paid during the year:
|
|
|
|
||||
Interest
|
$
|
158
|
|
|
$
|
225
|
|
Income taxes, net of refunds
|
237
|
|
|
242
|
|
||
Non-cash investing activities:
|
|
|
|
||||
Conversion of Park's property and equipment to timeshare inventory of HGV
|
$
|
—
|
|
|
$
|
(22
|
)
|
Non-cash financing activities:
|
|
|
|
||||
Spin-offs of Park and HGV
|
$
|
29
|
|
|
$
|
—
|
|
|
Three Months Ended
June 30, 2016
|
|
Six Months Ended June 30, 2016
|
||||
|
(in millions)
|
||||||
Total revenues from discontinued operations
|
$
|
1,101
|
|
|
$
|
2,125
|
|
|
|
|
|
||||
Expenses
|
|
|
|
||||
Owned and leased hotels
|
459
|
|
|
908
|
|
||
Timeshare
|
223
|
|
|
440
|
|
||
Depreciation and amortization
|
80
|
|
|
157
|
|
||
Other
|
60
|
|
|
102
|
|
||
Total expenses from discontinued operations
|
822
|
|
|
1,607
|
|
||
|
|
|
|
||||
Gain on sales of assets, net
|
1
|
|
|
1
|
|
||
|
|
|
|
||||
Operating income from discontinued operations
|
280
|
|
|
519
|
|
||
|
|
|
|
||||
Non-operating loss, net
|
(43
|
)
|
|
(88
|
)
|
||
|
|
|
|
||||
Income from discontinued operations before income taxes
|
237
|
|
|
431
|
|
||
|
|
|
|
||||
Income tax expense
|
(93
|
)
|
|
(168
|
)
|
||
|
|
|
|
||||
Income from discontinued operations, net of taxes
|
144
|
|
|
263
|
|
||
Income from discontinued operations attributable to noncontrolling interests, net of taxes
|
(1
|
)
|
|
(3
|
)
|
||
Income from discontinued operations attributable to Hilton stockholders, net of taxes
|
$
|
143
|
|
|
$
|
260
|
|
|
Six Months Ended June 30, 2016
|
||
|
(in millions)
|
||
Non-cash items included in net income:
|
|
||
Depreciation and amortization
|
$
|
157
|
|
Gain on sales of assets, net
|
(1
|
)
|
|
|
|
||
Investing activities:
|
|
||
Capital expenditures for property and equipment
|
$
|
(140
|
)
|
|
June 30,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Cash and cash equivalents
|
$
|
64
|
|
|
$
|
57
|
|
Accounts receivable, net
|
12
|
|
|
14
|
|
||
Property and equipment, net
|
53
|
|
|
52
|
|
||
Deferred income tax assets
|
60
|
|
|
58
|
|
||
Other non-current assets
|
56
|
|
|
53
|
|
||
Accounts payable, accrued expenses and other
|
37
|
|
|
33
|
|
||
Long-term debt
|
219
|
|
|
212
|
|
|
Ownership
(1)
|
|
Management and Franchise
(2)
|
|
Total
|
||||||
|
(in millions)
|
||||||||||
Balance as of December 31, 2016
|
$
|
184
|
|
|
$
|
5,034
|
|
|
$
|
5,218
|
|
Spin-offs of Park and HGV
|
(91
|
)
|
|
—
|
|
|
(91
|
)
|
|||
Foreign currency translation
|
6
|
|
|
31
|
|
|
37
|
|
|||
Balance as of June 30, 2017
|
$
|
99
|
|
|
$
|
5,065
|
|
|
$
|
5,164
|
|
(1)
|
The balance as of December 31, 2016 excludes goodwill of
$2,706
million and accumulated impairment losses of
$2,102
million that were attributable to Park and included in non-current assets of discontinued operations in our condensed consolidated balance sheet. Amounts for the ownership reporting unit include the following gross carrying values and accumulated impairment losses for the periods presented:
|
|
Gross Carrying Value
|
|
Accumulated Impairment Losses
|
|
Net Carrying Value
|
||||||
|
(in millions)
|
||||||||||
Balance as of December 31, 2016
|
$
|
856
|
|
|
$
|
(672
|
)
|
|
$
|
184
|
|
Spin-offs of Park and HGV
|
(423
|
)
|
|
332
|
|
|
(91
|
)
|
|||
Foreign currency translation
|
6
|
|
|
—
|
|
|
6
|
|
|||
Balance as of June 30, 2017
|
$
|
439
|
|
|
$
|
(340
|
)
|
|
$
|
99
|
|
(2)
|
There were no accumulated impairment losses for the management and franchise reporting unit as of December 31, 2016 and
June 30, 2017
.
|
|
June 30, 2017
|
||||||||||
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||
|
(in millions)
|
||||||||||
Amortizing Intangible Assets:
|
|
|
|
|
|
||||||
Management and franchise contracts:
|
|
|
|
|
|
||||||
Management and franchise contracts recorded at merger
(1)
|
$
|
2,232
|
|
|
$
|
(1,625
|
)
|
|
$
|
607
|
|
Contract acquisition costs and other
|
398
|
|
|
(75
|
)
|
|
323
|
|
|||
|
$
|
2,630
|
|
|
$
|
(1,700
|
)
|
|
$
|
930
|
|
|
|
|
|
|
|
||||||
Other intangible assets:
|
|
|
|
|
|
||||||
Leases
(1)
|
$
|
290
|
|
|
$
|
(140
|
)
|
|
$
|
150
|
|
Capitalized software
|
539
|
|
|
(396
|
)
|
|
143
|
|
|||
Hilton Honors
(1)
|
338
|
|
|
(205
|
)
|
|
133
|
|
|||
Other
|
38
|
|
|
(32
|
)
|
|
6
|
|
|||
|
$
|
1,205
|
|
|
$
|
(773
|
)
|
|
$
|
432
|
|
|
|
|
|
|
|
||||||
Non-amortizing Intangible Assets:
|
|
|
|
|
|
||||||
Brands
(1)(2)
|
$
|
4,872
|
|
|
$
|
—
|
|
|
$
|
4,872
|
|
|
December 31, 2016
|
||||||||||
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||
|
(in millions)
|
||||||||||
Amortizing Intangible Assets:
|
|
|
|
|
|
||||||
Management and franchise contracts:
|
|
|
|
|
|
||||||
Management and franchise contracts recorded at merger
(1)
|
$
|
2,221
|
|
|
$
|
(1,534
|
)
|
|
$
|
687
|
|
Contract acquisition costs and other
|
343
|
|
|
(67
|
)
|
|
276
|
|
|||
|
$
|
2,564
|
|
|
$
|
(1,601
|
)
|
|
$
|
963
|
|
|
|
|
|
|
|
||||||
Other intangible assets:
|
|
|
|
|
|
||||||
Leases
(1)
|
$
|
276
|
|
|
$
|
(126
|
)
|
|
$
|
150
|
|
Capitalized software
|
510
|
|
|
(362
|
)
|
|
148
|
|
|||
Hilton Honors
(1)
|
335
|
|
|
(192
|
)
|
|
143
|
|
|||
Other
|
37
|
|
|
(31
|
)
|
|
6
|
|
|||
|
$
|
1,158
|
|
|
$
|
(711
|
)
|
|
$
|
447
|
|
|
|
|
|
|
|
||||||
Non-amortizing Intangible Assets:
|
|
|
|
|
|
||||||
Brands
(1)(2)
|
$
|
4,848
|
|
|
$
|
—
|
|
|
$
|
4,848
|
|
(1)
|
Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of an affiliate of Blackstone.
|
(2)
|
Changes to our brands intangible assets from December 31, 2016 to June 30, 2017 were due to foreign currency translations.
|
Year
|
(in millions)
|
||
2017 (remaining)
|
$
|
152
|
|
2018
|
264
|
|
|
2019
|
249
|
|
|
2020
|
204
|
|
|
2021
|
76
|
|
|
Thereafter
|
417
|
|
|
|
$
|
1,362
|
|
|
June 30,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Senior notes due 2021
|
$
|
—
|
|
|
$
|
1,500
|
|
Senior notes with a rate of 4.250%, due 2024
|
1,000
|
|
|
1,000
|
|
||
Senior notes with a rate of 4.625%, due 2025
|
900
|
|
|
—
|
|
||
Senior notes with a rate of 4.875%, due 2027
|
600
|
|
|
—
|
|
||
Senior secured term loan facility due 2020
|
—
|
|
|
750
|
|
||
Senior secured term loan facility with a rate of 3.22%, due 2023
|
3,949
|
|
|
3,209
|
|
||
Capital lease obligations with an average rate of 6.34%, due 2021 to 2030
|
236
|
|
|
227
|
|
||
Other debt with an average rate of 2.65%, due 2018 to 2026
|
21
|
|
|
20
|
|
||
|
6,706
|
|
|
6,706
|
|
||
Less: unamortized deferred financing costs and discount
|
(86
|
)
|
|
(90
|
)
|
||
Less: current maturities of long-term debt
(1)
|
(48
|
)
|
|
(33
|
)
|
||
|
$
|
6,572
|
|
|
$
|
6,583
|
|
(1)
|
Net of unamortized deferred financing costs and discount attributable to current maturities of long-term debt.
|
Year
|
(in millions)
|
||
2017 (remaining)
|
$
|
24
|
|
2018
|
58
|
|
|
2019
|
55
|
|
|
2020
|
56
|
|
|
2021
|
57
|
|
|
Thereafter
|
6,456
|
|
|
|
$
|
6,706
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
Balance Sheet Classification
|
|
2017
|
|
2016
|
||||
|
|
|
(in millions)
|
||||||
Cash Flow Hedges:
|
|
|
|
|
|
||||
Interest rate swaps
|
Other liabilities
|
|
$
|
16
|
|
|
N/A
|
|
|
|
|
|
|
|
|
||||
Non-designated Hedges:
|
|
|
|
|
|
||||
Interest rate swaps
|
Other liabilities
|
|
N/A
|
|
|
$
|
12
|
|
|
Forward contracts
|
Other current assets
|
|
4
|
|
|
3
|
|
||
Forward contracts
|
Accounts payable, accrued expenses and other
|
|
1
|
|
|
4
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
Classification of Gain (Loss) Recognized
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
(in millions)
|
|
(in millions)
|
||||||||||||
Cash Flow Hedges
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
Other comprehensive income (loss)
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
(16
|
)
|
|
$
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-designated Hedges:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
Other non-operating income, net
|
|
—
|
|
|
N/A
|
|
|
2
|
|
|
N/A
|
|
||||
Interest rate swaps
(2)
|
Interest expense
|
|
(2
|
)
|
|
N/A
|
|
|
(5
|
)
|
|
N/A
|
|
||||
Forward contracts
|
Gain (loss) on foreign currency transactions
|
|
6
|
|
|
2
|
|
|
7
|
|
|
3
|
|
(1)
|
There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three and
six months ended June 30, 2017
and
2016
.
|
(2)
|
These amounts are related to the dedesignation of the 2013 Interest Rate Swaps as cash flow hedges and were reclassified from accumulated other comprehensive loss as the underlying transactions occurred.
|
|
June 30, 2017
|
||||||||||||||
|
|
|
Hierarchy Level
|
||||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in millions)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
458
|
|
|
$
|
—
|
|
|
$
|
458
|
|
|
$
|
—
|
|
Restricted cash equivalents
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
(1)
|
6,363
|
|
|
2,567
|
|
|
—
|
|
|
3,964
|
|
|
December 31, 2016
|
||||||||||||||
|
|
|
Hierarchy Level
|
||||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in millions)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
782
|
|
|
$
|
—
|
|
|
$
|
782
|
|
|
$
|
—
|
|
Restricted cash equivalents
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
(1)
|
6,369
|
|
|
2,516
|
|
|
—
|
|
|
4,006
|
|
(1)
|
The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude capital lease obligations and other debt.
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value per Share
|
|||
Outstanding as of December 31, 2016
|
1,624,541
|
|
|
$
|
65.24
|
|
Conversion from performance shares upon completion of the spin-offs
(1)
|
671,604
|
|
|
72.42
|
|
|
Effect of the spin-offs
(2)
|
439,113
|
|
|
57.60
|
|
|
Granted
|
1,459,473
|
|
|
58.77
|
|
|
Vested
(2)
|
(881,070
|
)
|
|
47.26
|
|
|
Forfeited
(2)
|
(81,616
|
)
|
|
49.07
|
|
|
Outstanding as of June 30, 2017
(2)
|
3,232,045
|
|
|
52.63
|
|
(1)
|
Represents all performance shares outstanding as of December 31, 2016.
|
(2)
|
The weighted average grant date fair value was adjusted to reflect the Conversion Factor.
|
|
Number of Options
|
|
Weighted Average Exercise Price per Share
|
|||
Outstanding as of December 31, 2016
|
1,076,031
|
|
|
$
|
66.83
|
|
Effect of the spin-offs
(1)
|
251,145
|
|
|
57.60
|
|
|
Granted
|
748,965
|
|
|
58.40
|
|
|
Exercised
(1)
|
(34,939
|
)
|
|
45.71
|
|
|
Forfeited, canceled or expired
(1)
|
(2,149
|
)
|
|
51.86
|
|
|
Outstanding as of June 30, 2017
(1)
|
2,039,053
|
|
|
51.23
|
|
|
Exercisable as of June 30, 2017
(1)
|
768,747
|
|
|
48.31
|
|
(1)
|
The weighted average exercise price was adjusted to reflect the Conversion Factor.
|
Expected volatility
(1)
|
24.00
|
%
|
Dividend yield
(2)
|
0.92 - 1.03%
|
|
Risk-free rate
(3)
|
1.93 - 2.03%
|
|
Expected term (in years)
(4)
|
6.0
|
|
(1)
|
Estimated using historical movement of Hilton's stock price and, due to limited trading history, historical volatility of our peer group over a time period consistent with our expected term assumption.
|
(2)
|
Estimated based on the expected annualized dividend payment at the date of grant.
|
(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.
|
|
EBITDA CAGR
|
|
FCF CAGR
|
||||||||||
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value per Share
|
|
Number of Shares
|
|
Weighted Average Grant Date Fair Value per Share
|
||||||
Outstanding as of December 31, 2016
|
335,802
|
|
|
$
|
68.09
|
|
|
—
|
|
|
N/A
|
|
|
Conversion to RSUs upon completion of the spin-offs
|
(335,802
|
)
|
|
68.09
|
|
|
—
|
|
|
N/A
|
|
||
Granted
|
179,006
|
|
|
58.40
|
|
|
178,975
|
|
|
$
|
58.40
|
|
|
Outstanding as of June 30, 2017
|
179,006
|
|
|
58.40
|
|
|
178,975
|
|
|
58.40
|
|
|
Equity Attributable to Hilton Stockholders
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|
|
Treasury Stock
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
|
|
|
|||||||||||||||
|
Common Stock
|
|
|
|
|
|
Noncontrolling
Interests
|
|
|
|||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|
|
Total
|
||||||||||||||||||||
|
(in millions)
|
|||||||||||||||||||||||||||||
Balance as of December 31, 2016
(1)
|
329
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
10,220
|
|
|
$
|
(3,323
|
)
|
|
$
|
(1,001
|
)
|
|
$
|
(50
|
)
|
|
$
|
5,849
|
|
Share-based compensation
|
2
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||||
Repurchases of common stock
|
(6
|
)
|
|
—
|
|
|
(352
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(352
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
240
|
|
|
—
|
|
|
2
|
|
|
242
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
|
—
|
|
|
71
|
|
|||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|||||||
Spin-offs of Park and HGV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,331
|
)
|
|
63
|
|
|
49
|
|
|
(4,219
|
)
|
|||||||
Cumulative effect of the adoption of ASU 2016-09
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||||
Balance as of June 30, 2017
|
325
|
|
|
$
|
3
|
|
|
$
|
(352
|
)
|
|
$
|
10,245
|
|
|
$
|
(7,514
|
)
|
|
$
|
(867
|
)
|
|
$
|
—
|
|
|
$
|
1,515
|
|
|
Equity Attributable to Hilton Stockholders
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
Additional
Paid-in Capital |
|
Accumulated Deficit
|
|
Accumulated
Other
Comprehensive
Loss
|
|
|
|
|
|||||||||||||
|
Common Stock
|
|
|
|
|
Noncontrolling
Interests
(2)
|
|
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|
Total
|
|||||||||||||||||
|
(in millions)
|
|||||||||||||||||||||||||
Balance as of December 31, 2015
(1)
|
329
|
|
|
$
|
3
|
|
|
$
|
10,158
|
|
|
$
|
(3,392
|
)
|
|
$
|
(784
|
)
|
|
$
|
(34
|
)
|
|
$
|
5,951
|
|
Share-based compensation
|
1
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
548
|
|
|
—
|
|
|
6
|
|
|
554
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
(2
|
)
|
|
(44
|
)
|
||||||
Dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(140
|
)
|
|
—
|
|
|
—
|
|
|
(140
|
)
|
||||||
Cumulative effect of the adoption of ASU 2015-02
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
||||||
Balance as of June 30, 2016
(1)
|
330
|
|
|
$
|
3
|
|
|
$
|
10,182
|
|
|
$
|
(2,984
|
)
|
|
$
|
(826
|
)
|
|
$
|
(29
|
)
|
|
$
|
6,346
|
|
(1)
|
Common stock and additional paid-in capital were adjusted to reflect the Reverse Stock Split. See
Note 1
: "
Organization and Basis of Presentation
" for additional information.
|
(2)
|
Other comprehensive loss attributable to non-controlling interests was related to currency translation adjustments.
|
|
Currency Translation Adjustment
(1)
|
|
Pension Liability Adjustment
(2)
|
|
Cash Flow Hedge Adjustment
(3)
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Balance as of December 31, 2016
|
$
|
(738
|
)
|
|
$
|
(251
|
)
|
|
$
|
(12
|
)
|
|
$
|
(1,001
|
)
|
Other comprehensive income (loss) before reclassifications
|
74
|
|
|
—
|
|
|
(10
|
)
|
|
64
|
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
4
|
|
|
3
|
|
|
7
|
|
||||
Net current period other comprehensive income (loss)
|
74
|
|
|
4
|
|
|
(7
|
)
|
|
71
|
|
||||
Spin-offs of Park and HGV
|
63
|
|
|
—
|
|
|
—
|
|
|
63
|
|
||||
Balance as of June 30, 2017
|
$
|
(601
|
)
|
|
$
|
(247
|
)
|
|
$
|
(19
|
)
|
|
$
|
(867
|
)
|
|
Currency Translation Adjustment
(1)
|
|
Pension Liability Adjustment
(2)
|
|
Cash Flow Hedge Adjustment
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Balance as of December 31, 2015
|
$
|
(580
|
)
|
|
$
|
(194
|
)
|
|
$
|
(10
|
)
|
|
$
|
(784
|
)
|
Other comprehensive loss before reclassifications
|
(37
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
(44
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
2
|
|
||||
Net current period other comprehensive income (loss)
|
(38
|
)
|
|
2
|
|
|
(6
|
)
|
|
(42
|
)
|
||||
Balance as of June 30, 2016
|
$
|
(618
|
)
|
|
$
|
(192
|
)
|
|
$
|
(16
|
)
|
|
$
|
(826
|
)
|
(1)
|
Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. Amounts reclassified related to gains on net investment hedges and were recognized in other non-operating income, net, net of a tax benefit of less than $1 million, in our condensed consolidated statement of operations for the six months ended June 30,
2016
.
|
(2)
|
Amounts reclassified include the amortization of prior service cost and net loss that were included in our computation of net periodic pension cost. They were recognized in general and administrative expenses, net of a $
2 million
tax benefit, in our condensed consolidated statements of operations for the
six months ended June 30, 2017
and
2016
, respectively.
|
(3)
|
Amount reclassified includes
$5 million
related to the 2013 Interest Rate Swaps, net of a tax benefit of $
2 million
, recognized in interest expense in our condensed consolidated statement of operations for the
six months ended June 30, 2017
.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions, except per share amounts)
|
||||||||||||||
Basic EPS:
|
|
|
|
|
|
|
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations attributable to Hilton stockholders
|
$
|
166
|
|
|
$
|
96
|
|
|
$
|
240
|
|
|
$
|
288
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
327
|
|
|
329
|
|
|
328
|
|
|
329
|
|
||||
Basic EPS
|
$
|
0.51
|
|
|
$
|
0.29
|
|
|
$
|
0.73
|
|
|
$
|
0.88
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS:
|
|
|
|
|
|
|
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations attributable to Hilton stockholders
|
$
|
166
|
|
|
$
|
96
|
|
|
$
|
240
|
|
|
$
|
288
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
329
|
|
|
330
|
|
|
330
|
|
|
330
|
|
||||
Diluted EPS
|
$
|
0.51
|
|
|
$
|
0.29
|
|
|
$
|
0.73
|
|
|
$
|
0.87
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions)
|
||||||||||||||
Management and franchise
(1)
|
$
|
523
|
|
|
$
|
416
|
|
|
$
|
959
|
|
|
$
|
773
|
|
Ownership
|
377
|
|
|
398
|
|
|
677
|
|
|
717
|
|
||||
Segment revenues
|
900
|
|
|
814
|
|
|
1,636
|
|
|
1,490
|
|
||||
Other revenues
|
20
|
|
|
18
|
|
|
57
|
|
|
35
|
|
||||
Other revenues from managed and franchised properties
|
1,436
|
|
|
1,130
|
|
|
2,831
|
|
|
2,171
|
|
||||
Intersegment fees elimination
(1)
|
(10
|
)
|
|
(12
|
)
|
|
(17
|
)
|
|
(20
|
)
|
||||
Total revenues
|
$
|
2,346
|
|
|
$
|
1,950
|
|
|
$
|
4,507
|
|
|
$
|
3,676
|
|
(1)
|
Includes management, royalty and intellectual property fees charged to our ownership segment, which were eliminated in our condensed consolidated statements of operations.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions)
|
||||||||||||||
Management and franchise
(1)
|
$
|
523
|
|
|
$
|
416
|
|
|
$
|
959
|
|
|
$
|
773
|
|
Ownership
(1)
|
37
|
|
|
37
|
|
|
58
|
|
|
41
|
|
||||
Segment operating income
|
560
|
|
|
453
|
|
|
1,017
|
|
|
814
|
|
||||
Other revenues, less other expenses
|
9
|
|
|
7
|
|
|
23
|
|
|
6
|
|
||||
Depreciation and amortization
|
(87
|
)
|
|
(91
|
)
|
|
(176
|
)
|
|
(183
|
)
|
||||
Impairment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
||||
General and administrative
|
(117
|
)
|
|
(97
|
)
|
|
(222
|
)
|
|
(180
|
)
|
||||
Gain on sales of assets, net
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Operating income
|
365
|
|
|
273
|
|
|
642
|
|
|
443
|
|
||||
Interest expense
|
(100
|
)
|
|
(99
|
)
|
|
(204
|
)
|
|
(189
|
)
|
||||
Gain (loss) on foreign currency transactions
|
5
|
|
|
(14
|
)
|
|
1
|
|
|
(26
|
)
|
||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
(60
|
)
|
|
—
|
|
||||
Other non-operating income, net
|
5
|
|
|
3
|
|
|
6
|
|
|
5
|
|
||||
Income from continuing operations before income taxes
|
$
|
275
|
|
|
$
|
163
|
|
|
$
|
385
|
|
|
$
|
233
|
|
(1)
|
Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.
|
|
June 30,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Management and franchise
|
$
|
10,846
|
|
|
$
|
10,825
|
|
Ownership
|
970
|
|
|
1,032
|
|
||
Corporate and other
|
2,453
|
|
|
2,529
|
|
||
|
$
|
14,269
|
|
|
$
|
14,386
|
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(in millions)
|
||||||
Ownership
|
$
|
10
|
|
|
$
|
25
|
|
Corporate and other
|
8
|
|
|
4
|
|
||
|
$
|
18
|
|
|
$
|
29
|
|
|
June 30, 2017
|
||||||||||||||||||||||||||
Parent
|
|
HWF Issuers
|
|
HOC
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
|||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
11
|
|
|
$
|
770
|
|
|
$
|
—
|
|
|
$
|
784
|
|
Restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
87
|
|
|
10
|
|
|
28
|
|
|
—
|
|
|
125
|
|
|||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
11
|
|
|
620
|
|
|
290
|
|
|
—
|
|
|
921
|
|
|||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
(40
|
)
|
|
—
|
|
|||||||
Prepaid expenses
|
—
|
|
|
—
|
|
|
6
|
|
|
45
|
|
|
73
|
|
|
(1
|
)
|
|
123
|
|
|||||||
Income taxes receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
41
|
|
|
—
|
|
|
46
|
|
|||||||
Total current assets
|
—
|
|
|
—
|
|
|
108
|
|
|
717
|
|
|
1,242
|
|
|
(68
|
)
|
|
1,999
|
|
|||||||
Intangibles and Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investments in subsidiaries
|
1,506
|
|
|
6,911
|
|
|
8,097
|
|
|
1,506
|
|
|
—
|
|
|
(18,020
|
)
|
|
—
|
|
|||||||
Goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
3,824
|
|
|
1,340
|
|
|
—
|
|
|
5,164
|
|
|||||||
Brands
|
—
|
|
|
—
|
|
|
—
|
|
|
4,404
|
|
|
468
|
|
|
—
|
|
|
4,872
|
|
|||||||
Management and franchise contracts, net
|
—
|
|
|
—
|
|
|
—
|
|
|
677
|
|
|
253
|
|
|
—
|
|
|
930
|
|
|||||||
Other intangible assets, net
|
—
|
|
|
—
|
|
|
1
|
|
|
281
|
|
|
150
|
|
|
—
|
|
|
432
|
|
|||||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
13
|
|
|
61
|
|
|
264
|
|
|
—
|
|
|
338
|
|
|||||||
Deferred income tax assets
|
9
|
|
|
4
|
|
|
166
|
|
|
—
|
|
|
87
|
|
|
(184
|
)
|
|
82
|
|
|||||||
Other
|
—
|
|
|
10
|
|
|
32
|
|
|
218
|
|
|
192
|
|
|
—
|
|
|
452
|
|
|||||||
Total intangibles and other assets
|
1,515
|
|
|
6,925
|
|
|
8,309
|
|
|
10,971
|
|
|
2,754
|
|
|
(18,204
|
)
|
|
12,270
|
|
|||||||
TOTAL ASSETS
|
$
|
1,515
|
|
|
$
|
6,925
|
|
|
$
|
8,417
|
|
|
$
|
11,688
|
|
|
$
|
3,996
|
|
|
$
|
(18,272
|
)
|
|
$
|
14,269
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts payable, accrued expenses and other
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
204
|
|
|
$
|
1,193
|
|
|
$
|
460
|
|
|
$
|
(1
|
)
|
|
$
|
1,879
|
|
Intercompany payables
|
—
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|||||||
Current maturities of long-term debt
|
—
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
48
|
|
|||||||
Income taxes payable
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
84
|
|
|
(27
|
)
|
|
62
|
|
|||||||
Total current liabilities
|
—
|
|
|
55
|
|
|
244
|
|
|
1,198
|
|
|
560
|
|
|
(68
|
)
|
|
1,989
|
|
|||||||
Long-term debt
|
—
|
|
|
5,349
|
|
|
982
|
|
|
—
|
|
|
241
|
|
|
—
|
|
|
6,572
|
|
|||||||
Deferred revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|||||||
Deferred income tax liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
1,857
|
|
|
—
|
|
|
(184
|
)
|
|
1,673
|
|
|||||||
Liability for guest loyalty program
|
—
|
|
|
—
|
|
|
—
|
|
|
884
|
|
|
—
|
|
|
—
|
|
|
884
|
|
|||||||
Other
|
—
|
|
|
15
|
|
|
280
|
|
|
526
|
|
|
716
|
|
|
—
|
|
|
1,537
|
|
|||||||
Total liabilities
|
—
|
|
|
5,419
|
|
|
1,506
|
|
|
4,564
|
|
|
1,517
|
|
|
(252
|
)
|
|
12,754
|
|
|||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Hilton stockholders' equity
|
1,515
|
|
|
1,506
|
|
|
6,911
|
|
|
7,124
|
|
|
2,479
|
|
|
(18,020
|
)
|
|
1,515
|
|
|||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total equity
|
1,515
|
|
|
1,506
|
|
|
6,911
|
|
|
7,124
|
|
|
2,479
|
|
|
(18,020
|
)
|
|
1,515
|
|
|||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
1,515
|
|
|
$
|
6,925
|
|
|
$
|
8,417
|
|
|
$
|
11,688
|
|
|
$
|
3,996
|
|
|
$
|
(18,272
|
)
|
|
$
|
14,269
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
Parent
|
|
HWF Issuers
|
|
HOC
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
|||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
22
|
|
|
$
|
1,037
|
|
|
$
|
—
|
|
|
$
|
1,062
|
|
Restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
87
|
|
|
9
|
|
|
25
|
|
|
—
|
|
|
121
|
|
|||||||
Accounts receivable, net
|
—
|
|
|
—
|
|
|
7
|
|
|
484
|
|
|
264
|
|
|
—
|
|
|
755
|
|
|||||||
Intercompany receivables
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
(42
|
)
|
|
—
|
|
|||||||
Prepaid expenses
|
—
|
|
|
—
|
|
|
6
|
|
|
21
|
|
|
65
|
|
|
(3
|
)
|
|
89
|
|
|||||||
Income taxes receivable
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
(17
|
)
|
|
13
|
|
|||||||
Other
|
—
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
33
|
|
|
—
|
|
|
39
|
|
|||||||
Current assets of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,502
|
|
|
(24
|
)
|
|
1,478
|
|
|||||||
Total current assets
|
—
|
|
|
—
|
|
|
104
|
|
|
571
|
|
|
2,968
|
|
|
(86
|
)
|
|
3,557
|
|
|||||||
Intangibles and Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investments in subsidiaries
|
5,889
|
|
|
11,300
|
|
|
12,583
|
|
|
5,889
|
|
|
—
|
|
|
(35,661
|
)
|
|
—
|
|
|||||||
Goodwill
|
—
|
|
|
—
|
|
|
—
|
|
|
3,824
|
|
|
1,394
|
|
|
—
|
|
|
5,218
|
|
|||||||
Brands
|
—
|
|
|
—
|
|
|
—
|
|
|
4,404
|
|
|
444
|
|
|
—
|
|
|
4,848
|
|
|||||||
Management and franchise contracts, net
|
—
|
|
|
—
|
|
|
—
|
|
|
716
|
|
|
247
|
|
|
—
|
|
|
963
|
|
|||||||
Other intangible assets, net
|
—
|
|
|
—
|
|
|
1
|
|
|
296
|
|
|
150
|
|
|
—
|
|
|
447
|
|
|||||||
Property and equipment, net
|
—
|
|
|
—
|
|
|
12
|
|
|
62
|
|
|
267
|
|
|
—
|
|
|
341
|
|
|||||||
Deferred income tax assets
|
10
|
|
|
2
|
|
|
167
|
|
|
—
|
|
|
82
|
|
|
(179
|
)
|
|
82
|
|
|||||||
Other
|
—
|
|
|
12
|
|
|
30
|
|
|
213
|
|
|
153
|
|
|
—
|
|
|
408
|
|
|||||||
Non-current assets of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
10,345
|
|
|
(10
|
)
|
|
10,347
|
|
|||||||
Total intangibles and other assets
|
5,899
|
|
|
11,314
|
|
|
12,793
|
|
|
15,416
|
|
|
13,082
|
|
|
(35,850
|
)
|
|
22,654
|
|
|||||||
TOTAL ASSETS
|
$
|
5,899
|
|
|
$
|
11,314
|
|
|
$
|
12,897
|
|
|
$
|
15,987
|
|
|
$
|
16,050
|
|
|
$
|
(35,936
|
)
|
|
$
|
26,211
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Accounts payable, accrued expenses and other
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
293
|
|
|
$
|
1,091
|
|
|
$
|
414
|
|
|
$
|
(3
|
)
|
|
$
|
1,821
|
|
Intercompany payables
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|||||||
Current maturities of long-term debt
|
—
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
33
|
|
|||||||
Income taxes payable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73
|
|
|
(17
|
)
|
|
56
|
|
|||||||
Current liabilities of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
721
|
|
|
(24
|
)
|
|
774
|
|
|||||||
Total current liabilities
|
—
|
|
|
52
|
|
|
335
|
|
|
1,168
|
|
|
1,215
|
|
|
(86
|
)
|
|
2,684
|
|
|||||||
Long-term debt
|
—
|
|
|
5,361
|
|
|
981
|
|
|
—
|
|
|
241
|
|
|
—
|
|
|
6,583
|
|
|||||||
Deferred revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||||
Deferred income tax liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
1,919
|
|
|
38
|
|
|
(179
|
)
|
|
1,778
|
|
|||||||
Liability for guest loyalty program
|
—
|
|
|
—
|
|
|
—
|
|
|
889
|
|
|
—
|
|
|
—
|
|
|
889
|
|
|||||||
Other
|
—
|
|
|
12
|
|
|
277
|
|
|
490
|
|
|
713
|
|
|
—
|
|
|
1,492
|
|
|||||||
Non-current liabilities of discontinued operations
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
6,900
|
|
|
(10
|
)
|
|
6,894
|
|
|||||||
Total liabilities
|
—
|
|
|
5,425
|
|
|
1,597
|
|
|
4,508
|
|
|
9,107
|
|
|
(275
|
)
|
|
20,362
|
|
|||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Hilton stockholders' equity
|
5,899
|
|
|
5,889
|
|
|
11,300
|
|
|
11,479
|
|
|
6,993
|
|
|
(35,661
|
)
|
|
5,899
|
|
|||||||
Noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
|||||||
Total equity
|
5,899
|
|
|
5,889
|
|
|
11,300
|
|
|
11,479
|
|
|
6,943
|
|
|
(35,661
|
)
|
|
5,849
|
|
|||||||
TOTAL LIABILITIES AND EQUITY
|
$
|
5,899
|
|
|
$
|
11,314
|
|
|
$
|
12,897
|
|
|
$
|
15,987
|
|
|
$
|
16,050
|
|
|
$
|
(35,936
|
)
|
|
$
|
26,211
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||||||||
|
Parent
|
|
HWF Issuers
|
|
HOC
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Franchise fees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49
|
|
|
$
|
296
|
|
|
$
|
32
|
|
|
$
|
(5
|
)
|
|
$
|
372
|
|
Base and other management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
32
|
|
|
—
|
|
|
85
|
|
|||||||
Incentive management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
35
|
|
|
—
|
|
|
56
|
|
|||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
377
|
|
|
—
|
|
|
377
|
|
|||||||
Other revenues
|
—
|
|
|
—
|
|
|
2
|
|
|
16
|
|
|
2
|
|
|
—
|
|
|
20
|
|
|||||||
|
—
|
|
|
—
|
|
|
51
|
|
|
386
|
|
|
478
|
|
|
(5
|
)
|
|
910
|
|
|||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
41
|
|
|
1,229
|
|
|
166
|
|
|
—
|
|
|
1,436
|
|
|||||||
Total revenues
|
—
|
|
|
—
|
|
|
92
|
|
|
1,615
|
|
|
644
|
|
|
(5
|
)
|
|
2,346
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
330
|
|
|
—
|
|
|
330
|
|
|||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
2
|
|
|
61
|
|
|
24
|
|
|
—
|
|
|
87
|
|
|||||||
General and administrative
|
—
|
|
|
—
|
|
|
92
|
|
|
(2
|
)
|
|
27
|
|
|
—
|
|
|
117
|
|
|||||||
Other expenses
|
—
|
|
|
—
|
|
|
3
|
|
|
9
|
|
|
4
|
|
|
(5
|
)
|
|
11
|
|
|||||||
|
—
|
|
|
—
|
|
|
97
|
|
|
68
|
|
|
385
|
|
|
(5
|
)
|
|
545
|
|
|||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
41
|
|
|
1,229
|
|
|
166
|
|
|
—
|
|
|
1,436
|
|
|||||||
Total expenses
|
—
|
|
|
—
|
|
|
138
|
|
|
1,297
|
|
|
551
|
|
|
(5
|
)
|
|
1,981
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating income (loss)
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
318
|
|
|
93
|
|
|
—
|
|
|
365
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest expense
|
—
|
|
|
(60
|
)
|
|
(26
|
)
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(100
|
)
|
|||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
2
|
|
|
53
|
|
|
(50
|
)
|
|
—
|
|
|
5
|
|
|||||||
Other non-operating income, net
|
—
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(60
|
)
|
|
(68
|
)
|
|
374
|
|
|
29
|
|
|
—
|
|
|
275
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income tax benefit (expense)
|
—
|
|
|
24
|
|
|
25
|
|
|
(147
|
)
|
|
(10
|
)
|
|
—
|
|
|
(108
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income (loss) from continuing operations before equity in earnings from subsidiaries
|
—
|
|
|
(36
|
)
|
|
(43
|
)
|
|
227
|
|
|
19
|
|
|
—
|
|
|
167
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Equity in earnings from subsidiaries
|
166
|
|
|
202
|
|
|
245
|
|
|
166
|
|
|
—
|
|
|
(779
|
)
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
166
|
|
|
166
|
|
|
202
|
|
|
393
|
|
|
19
|
|
|
(779
|
)
|
|
167
|
|
|||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||||
Net income attributable to Hilton stockholders
|
$
|
166
|
|
|
$
|
166
|
|
|
$
|
202
|
|
|
$
|
393
|
|
|
$
|
18
|
|
|
$
|
(779
|
)
|
|
$
|
166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Comprehensive income
|
$
|
217
|
|
|
$
|
161
|
|
|
$
|
201
|
|
|
$
|
394
|
|
|
$
|
76
|
|
|
$
|
(830
|
)
|
|
$
|
219
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
217
|
|
|
$
|
161
|
|
|
$
|
201
|
|
|
$
|
394
|
|
|
$
|
74
|
|
|
$
|
(830
|
)
|
|
$
|
217
|
|
|
Three Months Ended June 30, 2016
|
||||||||||||||||||||||
|
Parent
|
|
HWF Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Franchise fees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
284
|
|
|
$
|
29
|
|
|
$
|
(2
|
)
|
|
$
|
311
|
|
Base and other management fees
|
—
|
|
|
—
|
|
|
33
|
|
|
27
|
|
|
—
|
|
|
60
|
|
||||||
Incentive management fees
|
—
|
|
|
—
|
|
|
3
|
|
|
30
|
|
|
—
|
|
|
33
|
|
||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
—
|
|
|
398
|
|
|
—
|
|
|
398
|
|
||||||
Other revenues
|
—
|
|
|
—
|
|
|
14
|
|
|
4
|
|
|
—
|
|
|
18
|
|
||||||
|
—
|
|
|
—
|
|
|
334
|
|
|
488
|
|
|
(2
|
)
|
|
820
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
993
|
|
|
137
|
|
|
—
|
|
|
1,130
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
1,327
|
|
|
625
|
|
|
(2
|
)
|
|
1,950
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
—
|
|
|
349
|
|
|
—
|
|
|
349
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
68
|
|
|
23
|
|
|
—
|
|
|
91
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
66
|
|
|
31
|
|
|
—
|
|
|
97
|
|
||||||
Other expenses
|
—
|
|
|
—
|
|
|
8
|
|
|
5
|
|
|
(2
|
)
|
|
11
|
|
||||||
|
—
|
|
|
—
|
|
|
142
|
|
|
408
|
|
|
(2
|
)
|
|
548
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
993
|
|
|
137
|
|
|
—
|
|
|
1,130
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
1,135
|
|
|
545
|
|
|
(2
|
)
|
|
1,678
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on sales of assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
192
|
|
|
81
|
|
|
—
|
|
|
273
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
—
|
|
|
(67
|
)
|
|
(20
|
)
|
|
(12
|
)
|
|
—
|
|
|
(99
|
)
|
||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
(69
|
)
|
|
55
|
|
|
—
|
|
|
(14
|
)
|
||||||
Other non-operating income (loss), net
|
—
|
|
|
—
|
|
|
4
|
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(67
|
)
|
|
107
|
|
|
123
|
|
|
—
|
|
|
163
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
—
|
|
|
25
|
|
|
(42
|
)
|
|
(46
|
)
|
|
—
|
|
|
(63
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing operations before equity in earnings from subsidiaries
|
—
|
|
|
(42
|
)
|
|
65
|
|
|
77
|
|
|
—
|
|
|
100
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
96
|
|
|
138
|
|
|
73
|
|
|
—
|
|
|
(307
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations, net of taxes
|
96
|
|
|
96
|
|
|
138
|
|
|
77
|
|
|
(307
|
)
|
|
100
|
|
||||||
Income from discontinued operations, net of taxes
|
143
|
|
|
143
|
|
|
143
|
|
|
134
|
|
|
(419
|
)
|
|
144
|
|
||||||
Net income
|
239
|
|
|
239
|
|
|
281
|
|
|
211
|
|
|
(726
|
)
|
|
244
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
239
|
|
|
$
|
239
|
|
|
$
|
281
|
|
|
$
|
206
|
|
|
$
|
(726
|
)
|
|
$
|
239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
187
|
|
|
$
|
239
|
|
|
$
|
251
|
|
|
$
|
189
|
|
|
$
|
(674
|
)
|
|
$
|
192
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
187
|
|
|
$
|
239
|
|
|
$
|
251
|
|
|
$
|
184
|
|
|
$
|
(674
|
)
|
|
$
|
187
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||||||
|
Parent
|
|
HWF Issuers
|
|
HOC
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Franchise fees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
68
|
|
|
$
|
551
|
|
|
$
|
56
|
|
|
$
|
(9
|
)
|
|
$
|
666
|
|
Base and other management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
103
|
|
|
65
|
|
|
—
|
|
|
168
|
|
|||||||
Incentive management fees
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
65
|
|
|
—
|
|
|
108
|
|
|||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
677
|
|
|
—
|
|
|
677
|
|
|||||||
Other revenues
|
—
|
|
|
—
|
|
|
22
|
|
|
29
|
|
|
6
|
|
|
—
|
|
|
57
|
|
|||||||
|
—
|
|
|
—
|
|
|
90
|
|
|
726
|
|
|
869
|
|
|
(9
|
)
|
|
1,676
|
|
|||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
86
|
|
|
2,449
|
|
|
296
|
|
|
—
|
|
|
2,831
|
|
|||||||
Total revenues
|
—
|
|
|
—
|
|
|
176
|
|
|
3,175
|
|
|
1,165
|
|
|
(9
|
)
|
|
4,507
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
602
|
|
|
—
|
|
|
602
|
|
|||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
3
|
|
|
125
|
|
|
48
|
|
|
—
|
|
|
176
|
|
|||||||
General and administrative
|
—
|
|
|
—
|
|
|
171
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
222
|
|
|||||||
Other expenses
|
—
|
|
|
—
|
|
|
15
|
|
|
16
|
|
|
12
|
|
|
(9
|
)
|
|
34
|
|
|||||||
|
—
|
|
|
—
|
|
|
189
|
|
|
141
|
|
|
713
|
|
|
(9
|
)
|
|
1,034
|
|
|||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
86
|
|
|
2,449
|
|
|
296
|
|
|
—
|
|
|
2,831
|
|
|||||||
Total expenses
|
—
|
|
|
—
|
|
|
275
|
|
|
2,590
|
|
|
1,009
|
|
|
(9
|
)
|
|
3,865
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating income (loss)
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
585
|
|
|
156
|
|
|
—
|
|
|
642
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest expense
|
—
|
|
|
(123
|
)
|
|
(54
|
)
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(204
|
)
|
|||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
13
|
|
|
74
|
|
|
(86
|
)
|
|
—
|
|
|
1
|
|
|||||||
Loss on debt extinguishment
|
—
|
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60
|
)
|
|||||||
Other non-operating income (loss), net
|
—
|
|
|
(3
|
)
|
|
3
|
|
|
4
|
|
|
2
|
|
|
—
|
|
|
6
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(186
|
)
|
|
(137
|
)
|
|
663
|
|
|
45
|
|
|
—
|
|
|
385
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income tax benefit (expense)
|
—
|
|
|
73
|
|
|
52
|
|
|
(255
|
)
|
|
(13
|
)
|
|
—
|
|
|
(143
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income (loss) from continuing operations before equity in earnings from subsidiaries
|
—
|
|
|
(113
|
)
|
|
(85
|
)
|
|
408
|
|
|
32
|
|
|
—
|
|
|
242
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Equity in earnings from subsidiaries
|
240
|
|
|
353
|
|
|
438
|
|
|
240
|
|
|
—
|
|
|
(1,271
|
)
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income
|
240
|
|
|
240
|
|
|
353
|
|
|
648
|
|
|
32
|
|
|
(1,271
|
)
|
|
242
|
|
|||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||||
Net income attributable to Hilton stockholders
|
$
|
240
|
|
|
$
|
240
|
|
|
$
|
353
|
|
|
$
|
648
|
|
|
$
|
30
|
|
|
$
|
(1,271
|
)
|
|
$
|
240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Comprehensive income
|
$
|
311
|
|
|
$
|
233
|
|
|
$
|
356
|
|
|
$
|
649
|
|
|
$
|
106
|
|
|
$
|
(1,342
|
)
|
|
$
|
313
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
311
|
|
|
$
|
233
|
|
|
$
|
356
|
|
|
$
|
649
|
|
|
$
|
104
|
|
|
$
|
(1,342
|
)
|
|
$
|
311
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||
|
Parent
|
|
HWF Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Franchise fees
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
518
|
|
|
$
|
51
|
|
|
$
|
(5
|
)
|
|
$
|
564
|
|
Base and other management fees
|
—
|
|
|
—
|
|
|
65
|
|
|
55
|
|
|
—
|
|
|
120
|
|
||||||
Incentive management fees
|
—
|
|
|
—
|
|
|
11
|
|
|
58
|
|
|
—
|
|
|
69
|
|
||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
—
|
|
|
717
|
|
|
—
|
|
|
717
|
|
||||||
Other revenues
|
—
|
|
|
—
|
|
|
28
|
|
|
7
|
|
|
—
|
|
|
35
|
|
||||||
|
—
|
|
|
—
|
|
|
622
|
|
|
888
|
|
|
(5
|
)
|
|
1,505
|
|
||||||
Other revenues from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,917
|
|
|
254
|
|
|
—
|
|
|
2,171
|
|
||||||
Total revenues
|
—
|
|
|
—
|
|
|
2,539
|
|
|
1,142
|
|
|
(5
|
)
|
|
3,676
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Owned and leased hotels
|
—
|
|
|
—
|
|
|
—
|
|
|
656
|
|
|
—
|
|
|
656
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
136
|
|
|
47
|
|
|
—
|
|
|
183
|
|
||||||
Impairment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
123
|
|
|
57
|
|
|
—
|
|
|
180
|
|
||||||
Other expenses
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
|
(5
|
)
|
|
29
|
|
||||||
|
—
|
|
|
—
|
|
|
276
|
|
|
792
|
|
|
(5
|
)
|
|
1,063
|
|
||||||
Other expenses from managed and franchised properties
|
—
|
|
|
—
|
|
|
1,917
|
|
|
254
|
|
|
—
|
|
|
2,171
|
|
||||||
Total expenses
|
—
|
|
|
—
|
|
|
2,193
|
|
|
1,046
|
|
|
(5
|
)
|
|
3,234
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on sales of assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income
|
—
|
|
|
—
|
|
|
346
|
|
|
97
|
|
|
—
|
|
|
443
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
—
|
|
|
(134
|
)
|
|
(31
|
)
|
|
(24
|
)
|
|
—
|
|
|
(189
|
)
|
||||||
Gain (loss) on foreign currency transactions
|
—
|
|
|
—
|
|
|
(64
|
)
|
|
38
|
|
|
—
|
|
|
(26
|
)
|
||||||
Other non-operating income (loss), net
|
—
|
|
|
—
|
|
|
6
|
|
|
(1
|
)
|
|
—
|
|
|
5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing operations before income taxes and equity in earnings from subsidiaries
|
—
|
|
|
(134
|
)
|
|
257
|
|
|
110
|
|
|
—
|
|
|
233
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax benefit (expense)
|
192
|
|
|
51
|
|
|
(142
|
)
|
|
(43
|
)
|
|
—
|
|
|
58
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from continuing operations before equity in earnings from subsidiaries
|
192
|
|
|
(83
|
)
|
|
115
|
|
|
67
|
|
|
—
|
|
|
291
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in earnings from subsidiaries
|
96
|
|
|
179
|
|
|
64
|
|
|
—
|
|
|
(339
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income from continuing operations, net of taxes
|
288
|
|
|
96
|
|
|
179
|
|
|
67
|
|
|
(339
|
)
|
|
291
|
|
||||||
Income from discontinued operations, net of taxes
|
260
|
|
|
260
|
|
|
260
|
|
|
240
|
|
|
(757
|
)
|
|
263
|
|
||||||
Net income
|
548
|
|
|
356
|
|
|
439
|
|
|
307
|
|
|
(1,096
|
)
|
|
554
|
|
||||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Net income attributable to Hilton stockholders
|
$
|
548
|
|
|
$
|
356
|
|
|
$
|
439
|
|
|
$
|
301
|
|
|
$
|
(1,096
|
)
|
|
$
|
548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
506
|
|
|
$
|
350
|
|
|
$
|
400
|
|
|
$
|
308
|
|
|
$
|
(1,054
|
)
|
|
$
|
510
|
|
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Comprehensive income attributable to Hilton stockholders
|
$
|
506
|
|
|
$
|
350
|
|
|
$
|
400
|
|
|
$
|
304
|
|
|
$
|
(1,054
|
)
|
|
$
|
506
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||||||
|
Parent
|
|
HWF Issuers
|
|
HOC
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
—
|
|
|
$
|
(69
|
)
|
|
$
|
(58
|
)
|
|
$
|
395
|
|
|
$
|
108
|
|
|
$
|
—
|
|
|
$
|
376
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital expenditures for property and equipment
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
(12
|
)
|
|
—
|
|
|
(18
|
)
|
|||||||
Contract acquisition costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
(15
|
)
|
|
—
|
|
|
(32
|
)
|
|||||||
Capitalized software costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|||||||
Other
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(5
|
)
|
|
3
|
|
|
(3
|
)
|
|
(18
|
)
|
|||||||
Net cash used in investing activities
|
—
|
|
|
(13
|
)
|
|
(3
|
)
|
|
(54
|
)
|
|
(24
|
)
|
|
(3
|
)
|
|
(97
|
)
|
|||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Borrowings
|
—
|
|
|
1,823
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,823
|
|
|||||||
Repayment of debt
|
—
|
|
|
(1,832
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(1,836
|
)
|
|||||||
Debt issuance costs and redemption premium
|
—
|
|
|
(68
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(68
|
)
|
|||||||
Repayment of intercompany borrowings
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|||||||
Intercompany transfers
|
450
|
|
|
159
|
|
|
92
|
|
|
(351
|
)
|
|
(350
|
)
|
|
—
|
|
|
—
|
|
|||||||
Dividends paid
|
(98
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(98
|
)
|
|||||||
Cash transferred in spin-offs of Park and HGV
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(501
|
)
|
|
—
|
|
|
(501
|
)
|
|||||||
Repurchases of common stock
|
(352
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(352
|
)
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||||
Tax withholdings on share-based compensation
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||||
Net cash provided by (used in) financing activities
|
—
|
|
|
82
|
|
|
61
|
|
|
(351
|
)
|
|
(856
|
)
|
|
3
|
|
|
(1,061
|
)
|
|||||||
Effect of exchange rate changes on cash, restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||||
Net decrease in cash, restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(765
|
)
|
|
—
|
|
|
(775
|
)
|
|||||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period
|
—
|
|
|
—
|
|
|
90
|
|
|
31
|
|
|
1,062
|
|
|
—
|
|
|
1,183
|
|
|||||||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
501
|
|
|
—
|
|
|
501
|
|
|||||||
Cash, restricted cash and cash equivalents, beginning of period
|
—
|
|
|
—
|
|
|
90
|
|
|
31
|
|
|
1,563
|
|
|
—
|
|
|
1,684
|
|
|||||||
Cash, restricted cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
21
|
|
|
$
|
798
|
|
|
$
|
—
|
|
|
$
|
909
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||||||||
|
Parent
|
|
HWF Issuers
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by (used in) operating activities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(133
|
)
|
|
$
|
861
|
|
|
$
|
(54
|
)
|
|
$
|
674
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital expenditures for property and equipment
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(168
|
)
|
|
—
|
|
|
(169
|
)
|
||||||
Proceeds from asset dispositions
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Contract acquisition costs
|
—
|
|
|
—
|
|
|
(16
|
)
|
|
(2
|
)
|
|
—
|
|
|
(18
|
)
|
||||||
Capitalized software costs
|
—
|
|
|
—
|
|
|
(32
|
)
|
|
(3
|
)
|
|
—
|
|
|
(35
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
3
|
|
|
—
|
|
|
(15
|
)
|
||||||
Net cash used in investing activities
|
—
|
|
|
—
|
|
|
(67
|
)
|
|
(169
|
)
|
|
—
|
|
|
(236
|
)
|
||||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Repayment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
|
(64
|
)
|
||||||
Intercompany transfers
|
138
|
|
|
—
|
|
|
214
|
|
|
(352
|
)
|
|
—
|
|
|
—
|
|
||||||
Dividends paid
|
(138
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(138
|
)
|
||||||
Intercompany dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
54
|
|
|
—
|
|
||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Tax withholdings on share-based compensation
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
||||||
Net cash provided by (used in) financing activities
|
—
|
|
|
—
|
|
|
201
|
|
|
(474
|
)
|
|
54
|
|
|
(219
|
)
|
||||||
Effect of exchange rate changes on cash, restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||
Net increase in cash, restricted cash and cash equivalents
|
—
|
|
|
—
|
|
|
1
|
|
|
224
|
|
|
—
|
|
|
225
|
|
||||||
Cash, restricted cash and cash equivalents from continuing operations, beginning of period
|
—
|
|
|
—
|
|
|
109
|
|
|
524
|
|
|
—
|
|
|
633
|
|
||||||
Cash, restricted cash and cash equivalents from discontinued operations, beginning of period
|
—
|
|
|
—
|
|
|
—
|
|
|
223
|
|
|
—
|
|
|
223
|
|
||||||
Cash, restricted cash and cash equivalents, beginning of period
|
—
|
|
|
—
|
|
|
109
|
|
|
747
|
|
|
—
|
|
|
856
|
|
||||||
Cash, restricted cash and cash equivalents from continuing operations, end of period
|
—
|
|
|
—
|
|
|
110
|
|
|
608
|
|
|
—
|
|
|
718
|
|
||||||
Cash, restricted cash and cash equivalents from discontinued operations, end of period
|
—
|
|
|
—
|
|
|
—
|
|
|
363
|
|
|
—
|
|
|
363
|
|
||||||
Cash, restricted cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
110
|
|
|
$
|
971
|
|
|
$
|
—
|
|
|
$
|
1,081
|
|
•
|
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 income tax expense or the cash requirements to pay our taxes;
|
•
|
EBITDA and Adjusted EBITDA do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;
|
•
|
EBITDA and Adjusted EBITDA do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations;
|
•
|
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; and
|
•
|
other companies in our industry may calculate EBITDA and Adjusted EBITDA differently, limiting their usefulness as comparative measures.
|
|
Three Months Ended
|
|
Variance
|
|
Six Months Ended
|
|
Variance
|
||||||||
|
June 30, 2017
|
|
2017 vs. 2016
|
|
June 30, 2017
|
|
2017 vs. 2016
|
||||||||
U.S.
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
80.3
|
%
|
|
(0.5
|
)%
|
pts.
|
|
76.2
|
%
|
|
0.2
|
%
|
pts.
|
||
ADR
|
$
|
149.27
|
|
|
1.1
|
%
|
|
|
$
|
147.19
|
|
|
1.2
|
%
|
|
RevPAR
|
$
|
119.89
|
|
|
0.5
|
%
|
|
|
$
|
112.13
|
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Americas (excluding U.S.)
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
74.0
|
%
|
|
2.5
|
%
|
pts.
|
|
70.8
|
%
|
|
2.1
|
%
|
pts.
|
||
ADR
|
$
|
123.27
|
|
|
2.9
|
%
|
|
|
$
|
125.80
|
|
|
1.5
|
%
|
|
RevPAR
|
$
|
91.24
|
|
|
6.5
|
%
|
|
|
$
|
89.10
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Europe
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
78.2
|
%
|
|
2.6
|
%
|
pts.
|
|
73.0
|
%
|
|
3.5
|
%
|
pts.
|
||
ADR
|
$
|
145.41
|
|
|
2.9
|
%
|
|
|
$
|
135.26
|
|
|
2.1
|
%
|
|
RevPAR
|
$
|
113.69
|
|
|
6.5
|
%
|
|
|
$
|
98.75
|
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
MEA
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
64.1
|
%
|
|
4.5
|
%
|
pts.
|
|
65.4
|
%
|
|
3.7
|
%
|
pts.
|
||
ADR
|
$
|
171.44
|
|
|
2.0
|
%
|
|
|
$
|
162.86
|
|
|
(2.7
|
)%
|
|
RevPAR
|
$
|
109.96
|
|
|
9.6
|
%
|
|
|
$
|
106.58
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asia Pacific
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
71.9
|
%
|
|
5.2
|
%
|
pts.
|
|
70.7
|
%
|
|
5.7
|
%
|
pts.
|
||
ADR
|
$
|
136.15
|
|
|
(0.9
|
)%
|
|
|
$
|
138.21
|
|
|
(2.3
|
)%
|
|
RevPAR
|
$
|
97.89
|
|
|
6.9
|
%
|
|
|
$
|
97.70
|
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
||||||
System-wide
|
|
|
|
|
|
|
|
|
|
||||||
Occupancy
|
78.8
|
%
|
|
0.4
|
%
|
pts.
|
|
74.9
|
%
|
|
1.1
|
%
|
pts.
|
||
ADR
|
$
|
147.37
|
|
|
1.2
|
%
|
|
|
$
|
144.89
|
|
|
0.9
|
%
|
|
RevPAR
|
$
|
116.09
|
|
|
1.8
|
%
|
|
|
$
|
108.58
|
|
|
2.4
|
%
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions)
|
||||||||||||||
Income from continuing operations, net of taxes
|
$
|
167
|
|
|
$
|
100
|
|
|
$
|
242
|
|
|
$
|
291
|
|
Interest expense
|
100
|
|
|
99
|
|
|
204
|
|
|
189
|
|
||||
Income tax expense (benefit)
|
108
|
|
|
63
|
|
|
143
|
|
|
(58
|
)
|
||||
Depreciation and amortization
|
87
|
|
|
91
|
|
|
176
|
|
|
183
|
|
||||
EBITDA
|
462
|
|
|
353
|
|
|
765
|
|
|
605
|
|
||||
Gain on sales of assets, net
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Loss (gain) on foreign currency transactions
|
(5
|
)
|
|
14
|
|
|
(1
|
)
|
|
26
|
|
||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
||||
FF&E replacement reserve
|
15
|
|
|
16
|
|
|
21
|
|
|
28
|
|
||||
Share-based compensation expense
|
34
|
|
|
23
|
|
|
59
|
|
|
39
|
|
||||
Impairment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||
Other adjustment items
(1)
|
13
|
|
|
7
|
|
|
39
|
|
|
15
|
|
||||
Adjusted EBITDA
|
$
|
519
|
|
|
$
|
412
|
|
|
$
|
943
|
|
|
$
|
727
|
|
(1)
|
Includes adjustments for severance and other items and, for the three and
six months ended June 30, 2017
, also includes transaction costs.
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Franchise fees
|
$
|
372
|
|
|
$
|
311
|
|
|
19.6
|
|
$
|
666
|
|
|
$
|
564
|
|
|
18.1
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Base and other management fees
|
$
|
85
|
|
|
$
|
60
|
|
|
41.7
|
|
$
|
168
|
|
|
$
|
120
|
|
|
40.0
|
Incentive management fees
|
56
|
|
|
33
|
|
|
69.7
|
|
108
|
|
|
69
|
|
|
56.5
|
||||
Total management fees
|
$
|
141
|
|
|
$
|
93
|
|
|
51.6
|
|
$
|
276
|
|
|
$
|
189
|
|
|
46.0
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Owned and leased hotels
|
$
|
330
|
|
|
$
|
349
|
|
|
(5.4)
|
|
$
|
602
|
|
|
$
|
656
|
|
|
(8.2)
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Depreciation and amortization
|
$
|
87
|
|
|
$
|
91
|
|
|
(4.4)
|
|
$
|
176
|
|
|
$
|
183
|
|
|
(3.8)
|
General and administrative
|
117
|
|
|
97
|
|
|
20.6
|
|
222
|
|
|
180
|
|
|
23.3
|
||||
Other expenses
|
11
|
|
|
11
|
|
|
—
|
|
34
|
|
|
29
|
|
|
17.2
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Interest expense
|
$
|
(100
|
)
|
|
$
|
(99
|
)
|
|
1.0
|
|
$
|
(204
|
)
|
|
$
|
(189
|
)
|
|
7.9
|
Gain (loss) on foreign currency transactions
|
5
|
|
|
(14
|
)
|
|
NM
(1)
|
|
1
|
|
|
(26
|
)
|
|
NM
(1)
|
||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
NM
(1)
|
|
(60
|
)
|
|
—
|
|
|
NM
(1)
|
||||
Other non-operating income, net
|
5
|
|
|
3
|
|
|
66.7
|
|
6
|
|
|
5
|
|
|
20.0
|
||||
Income tax benefit (expense)
|
(108
|
)
|
|
(63
|
)
|
|
71.4
|
|
(143
|
)
|
|
58
|
|
|
NM
(1)
|
(1)
|
Fluctuation in terms of percentage change is not meaningful.
|
|
Three Months Ended
|
|
Percent
|
|
Six Months Ended
|
|
Percent
|
||||||||||||
|
June 30,
|
|
Change
|
|
June 30,
|
|
Change
|
||||||||||||
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
||||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Management and franchise
(1)
|
$
|
523
|
|
|
$
|
416
|
|
|
25.7
|
|
$
|
959
|
|
|
$
|
773
|
|
|
24.1
|
Ownership
|
377
|
|
|
398
|
|
|
(5.3)
|
|
677
|
|
|
717
|
|
|
(5.6)
|
||||
Segment revenues
|
900
|
|
|
814
|
|
|
10.6
|
|
1,636
|
|
|
1,490
|
|
|
9.8
|
||||
Other revenues
|
20
|
|
|
18
|
|
|
11.1
|
|
57
|
|
|
35
|
|
|
62.9
|
||||
Other revenues from managed and franchised properties
|
1,436
|
|
|
1,130
|
|
|
27.1
|
|
2,831
|
|
|
2,171
|
|
|
30.4
|
||||
Intersegment fees elimination
(1)
|
(10
|
)
|
|
(12
|
)
|
|
(16.7)
|
|
(17
|
)
|
|
(20
|
)
|
|
(15.0)
|
||||
Total revenues
|
$
|
2,346
|
|
|
$
|
1,950
|
|
|
20.3
|
|
$
|
4,507
|
|
|
$
|
3,676
|
|
|
22.6
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Management and franchise
|
$
|
523
|
|
|
$
|
416
|
|
|
25.7
|
|
$
|
959
|
|
|
$
|
773
|
|
|
24.1
|
Ownership
|
37
|
|
|
37
|
|
|
—
|
|
58
|
|
|
41
|
|
|
41.5
|
||||
Segment operating income
|
$
|
560
|
|
|
$
|
453
|
|
|
23.6
|
|
$
|
1,017
|
|
|
$
|
814
|
|
|
24.9
|
(1)
|
Includes management, royalty and intellectual property fees charged to our ownership segment by our management and franchise segment, which were eliminated in our unaudited condensed consolidated statements of operations.
|
|
Six Months Ended June 30,
|
|
Percent Change
|
||||||
|
2017
|
|
2016
(1)
|
|
2017 vs. 2016
|
||||
|
(in millions)
|
|
|
||||||
Net cash provided by operating activities
|
$
|
376
|
|
|
$
|
674
|
|
|
(44.2)
|
Net cash used in investing activities
|
(97
|
)
|
|
(236
|
)
|
|
(58.9)
|
||
Net cash used in financing activities
|
(1,061
|
)
|
|
(219
|
)
|
|
NM
(2)
|
(1)
|
Includes the cash flows from operating activities, investing activities and financing activities of Hilton, Park and HGV.
|
(2)
|
Fluctuation in terms of percentage change is not meaningful.
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
(1)
|
|
Total Number of Shares Purchased as Part of Publicly Announced Program
(2)
|
|
Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
(2)
(in millions)
|
||||||
April 1, 2017 to April 30, 2017
|
927,000
|
|
|
$
|
57.56
|
|
|
927,000
|
|
|
$
|
877
|
|
May 1, 2017 to May 31, 2017
|
1,675,678
|
|
|
63.44
|
|
|
1,675,678
|
|
|
770
|
|
||
June 1, 2017 to June 30, 2017
|
1,855,379
|
|
|
66.07
|
|
|
1,855,379
|
|
|
648
|
|
||
Total
|
4,458,057
|
|
|
63.31
|
|
|
4,458,057
|
|
|
|
(1)
|
This price includes per share commissions paid for all share repurchases.
|
(2)
|
In February 2017, our board of directors authorized a stock repurchase program of up to
$1.0 billion
of the Company's common stock. The repurchase program does not have an expiration date and may be suspended or discontinued at any time.
|
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
|
|
Certificate of Amendment to Certificate of Incorporation of Hilton Worldwide Holdings Inc. effective as of January 3, 2017 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 001-36243) filed on January 4, 2017).
|
3.3
|
|
Amended and Restated By-Laws 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 March 17, 2017).
|
10.1
|
|
Hilton 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 001-36243) filed on May 26, 2017).*
|
10.2
|
|
Form of Deferred Share Unit Agreement for Independent Directors.*
|
10.3
|
|
Share Repurchase Agreement, dated June 6, 2017, by and among Hilton Worldwide Holdings Inc. and each of the entities identified on Schedule 1 thereto (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 001-36243) filed on June 12, 2017).
|
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).
|
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.
|
*
|
This document has been identified as a management contract or compensatory plan or arrangement.
|
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
|
HILTON WORLDWIDE HOLDINGS INC.
|
|
|
|
By:
|
/s/ Christopher J. Nassetta
|
|
Christopher J. Nassetta
|
|
President and Chief Executive Officer
|
|
|
By:
|
/s/ Matthew Schuyler
|
|
Matthew Schuyler
|
|
Executive Vice President and Chief Human Resources Officer
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2017
|
|
2016
|
||||
Earnings:
|
|
|
|
||||
Income from continuing operations before income taxes
|
$
|
385
|
|
|
$
|
233
|
|
Equity in earnings from unconsolidated affiliates
|
(1
|
)
|
|
(1
|
)
|
||
|
384
|
|
|
232
|
|
||
Add:
|
|
|
|
||||
Fixed charges
|
258
|
|
|
243
|
|
||
Distributed income of equity method investees
|
1
|
|
|
2
|
|
||
Earnings available for fixed charges
|
$
|
643
|
|
|
$
|
477
|
|
|
|
|
|
||||
Fixed Charges:
|
|
|
|
||||
Interest expense
(1)
|
$
|
204
|
|
|
$
|
189
|
|
Estimated interest included in rent expense
|
54
|
|
|
54
|
|
||
Total Fixed Charges
|
$
|
258
|
|
|
$
|
243
|
|
|
|
|
|
||||
Ratio of Earnings to Fixed Charges
|
2.5
|
|
|
2.0
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 of Hilton Worldwide Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ CHRISTOPHER J. NASSETTA
|
|
Christopher J. Nassetta
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
July 26, 2017
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 of Hilton Worldwide Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ KEVIN J. JACOBS
|
|
Kevin J. Jacobs
|
|
Executive Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
July 26, 2017
|
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)
|