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• | the resort complex consisting of the Waldorf Astoria Orlando and the Hilton Orlando Bonnet Creek in Orlando, Florida (the "Bonnet Creek Resort"); |
• | the Casa Marina Resort in Key West, Florida; |
• | the Reach Resort in Key West, Florida; and |
• | the Parc 55 hotel in San Francisco, California. |
(in millions) | |||
Cash and cash equivalents | $ | 16 | |
Restricted cash and cash equivalents | 8 | ||
Inventories | 1 | ||
Prepaid expenses | 3 | ||
Other current assets | 1 | ||
Property and equipment | 1,868 | ||
Other intangible assets, net | 4 | ||
Accounts payable, accrued expenses and other | (25 | ) | |
Long-term debt | (450 | ) | |
Net assets acquired | $ | 1,426 |
Three Months Ended | Six Months Ended | ||||||
June 30, 2015 | June 30, 2015 | ||||||
(in millions) | |||||||
Total revenues | $ | 89 | $ | 144 | |||
Income before income taxes | 19 | 34 |
|
(in millions) | |||
Assets: | |||
Current assets held for sale(1) | $ | 12 | |
Property and equipment, net held for sale: | |||
Land | 4 | ||
Buildings and leasehold improvements | 134 | ||
Furniture and equipment | 7 | ||
145 | |||
Accumulated depreciation and amortization | (34 | ) | |
Total property and equipment, net held for sale | 111 | ||
Total assets held for sale | $ | 123 | |
Liabilities: | |||
Current liabilities related to assets held for sale(2) | $ | 10 | |
Total liabilities held for sale | $ | 10 |
(1) | Amounts included in other current assets in our condensed consolidated balance sheet as of June 30, 2015. |
(2) | Amounts included in accounts payable, accrued liabilities and other in our condensed consolidated balance sheet as of June 30, 2015. |
|
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Land | $ | 3,487 | $ | 3,009 | |||
Buildings and leasehold improvements | 6,346 | 5,150 | |||||
Furniture and equipment | 1,249 | 1,140 | |||||
Construction-in-progress | 98 | 53 | |||||
11,180 | 9,352 | ||||||
Accumulated depreciation and amortization | (1,989 | ) | (1,869 | ) | |||
$ | 9,191 | $ | 7,483 |
|
June 30, 2015 | |||||||||||||||
Securitized Timeshare | Unsecuritized Timeshare(1) | Other | Total | ||||||||||||
(in millions) | |||||||||||||||
Financing receivables | $ | 366 | $ | 536 | $ | 34 | $ | 936 | |||||||
Less: allowance | (19 | ) | (67 | ) | (1 | ) | (87 | ) | |||||||
347 | 469 | 33 | 849 | ||||||||||||
Current portion of financing receivables | 62 | 73 | 2 | 137 | |||||||||||
Less: allowance | (3 | ) | (9 | ) | — | (12 | ) | ||||||||
59 | 64 | 2 | 125 | ||||||||||||
Total financing receivables | $ | 406 | $ | 533 | $ | 35 | $ | 974 |
December 31, 2014 | |||||||||||||||
Securitized Timeshare | Unsecuritized Timeshare(1) | Other | Total | ||||||||||||
(in millions) | |||||||||||||||
Financing receivables | $ | 430 | $ | 454 | $ | 22 | $ | 906 | |||||||
Less: allowance | (24 | ) | (58 | ) | (2 | ) | (84 | ) | |||||||
406 | 396 | 20 | 822 | ||||||||||||
Current portion of financing receivables | 66 | 74 | 2 | 142 | |||||||||||
Less: allowance | (4 | ) | (10 | ) | — | (14 | ) | ||||||||
62 | 64 | 2 | 128 | ||||||||||||
Total financing receivables | $ | 468 | $ | 460 | $ | 22 | $ | 950 |
(1) | Included in this balance, we had $164 million of gross timeshare financing receivables secured under our revolving non-recourse timeshare financing receivables credit facility (the "Timeshare Facility"), as of June 30, 2015 and December 31, 2014. |
Six Months Ended | |||||||
June 30, | |||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Beginning balance | $ | 96 | $ | 92 | |||
Write-offs | (15 | ) | (16 | ) | |||
Provision for uncollectibles on sales | 17 | 15 | |||||
Ending balance | $ | 98 | $ | 91 |
Securitized Timeshare | Unsecuritized Timeshare | ||||||
Year | (in millions) | ||||||
2015 (remaining) | $ | 30 | $ | 45 | |||
2016 | 63 | 59 | |||||
2017 | 65 | 63 | |||||
2018 | 64 | 64 | |||||
2019 | 60 | 64 | |||||
Thereafter | 146 | 314 | |||||
428 | 609 | ||||||
Less: allowance | (22 | ) | (76 | ) | |||
$ | 406 | $ | 533 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Current | $ | 997 | $ | 980 | |||
30 - 89 days past due | 9 | 13 | |||||
90 - 119 days past due | 3 | 2 | |||||
120 days and greater past due | 28 | 29 | |||||
$ | 1,037 | $ | 1,024 |
|
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Equity investments | $ | 143 | $ | 153 | |||
Other investments | 13 | 17 | |||||
$ | 156 | $ | 170 |
|
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Cash and cash equivalents | $ | 30 | $ | 26 | |||
Property and equipment, net | 44 | 49 | |||||
Non-recourse debt | 205 | 237 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Restricted cash and cash equivalents | $ | 17 | $ | 20 | |||
Securitized financing receivables, net | 406 | 468 | |||||
Non-recourse debt | 414 | 481 |
|
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Senior secured term loan facility with a rate of 3.50%, due 2020 | $ | 4,675 | $ | 5,000 | |||
Senior notes with a rate of 5.625%, due 2021 | 1,500 | 1,500 | |||||
Commercial mortgage-backed securities loan with an average rate of 4.06%, due 2018(1) | 3,487 | 3,487 | |||||
Mortgage loans with an average rate of 3.99%, due 2016 to 2020(2) | 647 | 721 | |||||
Other unsecured notes with a rate of 7.50%, due 2017 | 54 | 54 | |||||
Capital lease obligations with an average rate of 6.12%, due 2015 to 2097 | 66 | 72 | |||||
10,429 | 10,834 | ||||||
Less: current maturities of long-term debt | (10 | ) | (10 | ) | |||
Less: unamortized discount on senior secured term loan facility | (19 | ) | (21 | ) | |||
$ | 10,400 | $ | 10,803 |
(1) | The initial maturity date of the variable-rate component of this borrowing is November 1, 2015. We assumed all extensions, which are solely at our option, were exercised. |
(2) | For mortgage loans with extensions that are solely at our option, we assumed they were exercised. |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Capital lease obligations of consolidated VIEs with a rate of 6.34%, due 2018 to 2026 | $ | 185 | $ | 216 | |||
Non-recourse debt of consolidated VIEs with an average rate of 3.75%, due 2015 to 2018(1) | 31 | 32 | |||||
Timeshare Facility with a rate of 1.19%, due 2017 | 150 | 150 | |||||
Securitized Timeshare Debt with an average rate of 1.97%, due 2026 | 414 | 481 | |||||
780 | 879 | ||||||
Less: current maturities of non-recourse debt | (136 | ) | (127 | ) | |||
$ | 644 | $ | 752 |
(1) | Excludes the non-recourse debt of our VIEs that issued the Securitized Timeshare Debt, as it is presented separately. |
Year | (in millions) | ||
2015 (remaining) | $ | 88 | |
2016 | 213 | ||
2017 | 349 | ||
2018(1) | 3,563 | ||
2019(1) | 481 | ||
Thereafter | 6,515 | ||
$ | 11,209 |
(1) | We assumed all extensions on the CMBS Loan and Bonnet Creek Loan for purposes of calculating maturity dates. |
|
• | one interest rate cap in the notional amount of $875 million, for the variable-rate component of the CMBS Loan, that expires in November 2015 and caps one-month LIBOR at 6.0 percent; |
• | one interest rate cap in the notional amount of $525 million that expires in November 2015 and caps one-month LIBOR at 4.0 percent; and |
• | one interest rate cap in the notional amount of $338 million that expires in May 2016 and caps one-month LIBOR at 3.0 percent on the Bonnet Creek Loan. |
June 30, 2015 | December 31, 2014 | ||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||
(in millions) | (in millions) | ||||||||||
Cash Flow Hedges: | |||||||||||
Interest rate swaps | Other liabilities | $ | 12 | Other liabilities | $ | 4 | |||||
Non-designated Hedges: | |||||||||||
Interest rate caps(1) | Other assets | — | Other assets | — | |||||||
Forward contracts(1) | Other assets | — | Other assets | — | |||||||
Forward contracts(2) | Accounts payable, accrued expenses and other | 2 | Accounts payable, accrued expenses and other | — |
(1) | The fair values of our interest rate caps and forward contracts were less than $1 million as of June 30, 2015 and December 31, 2014. |
(2) | The fair values of our forward contracts were less than $1 million as of December 31, 2014. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Classification of Gain (Loss) Recognized | 2015 | 2014 | 2015 | 2014 | |||||||||||||
(in millions) | |||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Interest rate swaps(1) | Other comprehensive income (loss) | $ | 3 | $ | (9 | ) | $ | (8 | ) | $ | (14 | ) | |||||
Non-designated Hedges: | |||||||||||||||||
Interest rate caps | Other gain (loss), net | — | — | — | — | ||||||||||||
Forward contracts | Gain (loss) on foreign currency transactions | 8 | N/A | 6 | N/A |
(1) | There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three and six months ended June 30, 2015 and 2014. |
|
June 30, 2015 | |||||||||||||||
Hierarchy Level | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 250 | $ | — | $ | 250 | $ | — | |||||||
Restricted cash equivalents | 22 | — | 22 | — | |||||||||||
Timeshare financing receivables | 1,037 | — | — | 1,036 | |||||||||||
Liabilities: | |||||||||||||||
Long-term debt(1) | 10,344 | 1,623 | — | 8,862 | |||||||||||
Non-recourse debt(2) | 564 | — | — | 561 | |||||||||||
Interest rate swaps | 12 | — | 12 | — |
December 31, 2014 | |||||||||||||||
Hierarchy Level | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 326 | $ | — | $ | 326 | $ | — | |||||||
Restricted cash equivalents | 38 | — | 38 | — | |||||||||||
Timeshare financing receivables | 1,024 | — | — | 1,021 | |||||||||||
Liabilities: | |||||||||||||||
Long-term debt(1) | 10,741 | 1,630 | — | 9,207 | |||||||||||
Non-recourse debt(2) | 631 | — | — | 626 | |||||||||||
Interest rate swaps | 4 | — | 4 | — |
(1) | Excludes capital lease obligations with a carrying value of $66 million and $72 million as of June 30, 2015 and December 31, 2014, respectively. |
(2) | Excludes capital lease obligations of consolidated VIEs with a carrying value of $185 million and $216 million as of June 30, 2015 and December 31, 2014, respectively, and non-recourse debt of consolidated VIEs with a carrying value of $31 million and $32 million, respectively. |
Fair Value(1) | |||
(in millions) | |||
Property and equipment | $ | 1,868 | |
Long-term debt | 450 |
(1) | Fair values were estimated using significant unobservable inputs (Level 3). |
|
|
Three Months Ended June 30, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
Domestic Plan | U.K. Plan | International Plans | Domestic Plan | U.K. Plan | International Plans | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 1 | $ | — | $ | — | $ | 2 | $ | — | $ | 1 | |||||||||||
Interest cost | 4 | 4 | 1 | 4 | 4 | 1 | |||||||||||||||||
Expected return on plan assets | (5 | ) | (6 | ) | (1 | ) | (5 | ) | (6 | ) | (1 | ) | |||||||||||
Amortization of prior service cost | 1 | — | — | 1 | — | — | |||||||||||||||||
Amortization of net loss | 1 | — | 1 | 1 | — | — | |||||||||||||||||
Settlement losses | — | — | 2 | 1 | — | — | |||||||||||||||||
Net periodic pension cost (credit) | $ | 2 | $ | (2 | ) | $ | 3 | $ | 4 | $ | (2 | ) | $ | 1 |
Six Months Ended June 30, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
Domestic Plan | U.K. Plan | International Plans | Domestic Plan | U.K. Plan | International Plans | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 3 | $ | — | $ | 1 | $ | 4 | $ | — | $ | 2 | |||||||||||
Interest cost | 8 | 8 | 2 | 8 | 9 | 2 | |||||||||||||||||
Expected return on plan assets | (10 | ) | (12 | ) | (2 | ) | (9 | ) | (12 | ) | (2 | ) | |||||||||||
Amortization of prior service cost | 2 | — | — | 2 | — | — | |||||||||||||||||
Amortization of net loss | 2 | 1 | 1 | 1 | — | — | |||||||||||||||||
Settlement losses | — | — | 2 | 1 | — | — | |||||||||||||||||
Net periodic pension cost (credit) | $ | 5 | $ | (3 | ) | $ | 4 | $ | 7 | $ | (3 | ) | $ | 2 |
|
Currency Translation Adjustment(1) | Pension Liability Adjustment | Cash Flow Hedge Adjustment | Total | ||||||||||||
(in millions) | |||||||||||||||
Balance as of December 31, 2014 | $ | (446 | ) | $ | (179 | ) | $ | (3 | ) | $ | (628 | ) | |||
Other comprehensive loss before reclassifications | (42 | ) | (2 | ) | (5 | ) | (49 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | — | 4 | — | 4 | |||||||||||
Net current period other comprehensive income (loss) | (42 | ) | 2 | (5 | ) | (45 | ) | ||||||||
Balance as of June 30, 2015 | $ | (488 | ) | $ | (177 | ) | $ | (8 | ) | $ | (673 | ) |
Currency Translation Adjustment(1) | Pension Liability Adjustment | Cash Flow Hedge Adjustment | Total | ||||||||||||
(in millions) | |||||||||||||||
Balance as of December 31, 2013 | $ | (136 | ) | $ | (134 | ) | $ | 6 | $ | (264 | ) | ||||
Other comprehensive income (loss) before reclassifications | 87 | 2 | (9 | ) | 80 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (4 | ) | 2 | — | (2 | ) | |||||||||
Net current period other comprehensive income (loss) | 83 | 4 | (9 | ) | 78 | ||||||||||
Balance as of June 30, 2014 | $ | (53 | ) | $ | (130 | ) | $ | (3 | ) | $ | (186 | ) |
(1) | Includes net investment hedges. |
Six Months Ended | |||||||
June 30, | |||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Currency translation adjustment: | |||||||
Sale and liquidation of foreign assets(1) | $ | — | $ | 4 | |||
Total currency translation adjustment reclassifications for the period, net of taxes | — | 4 | |||||
Pension liability adjustment: | |||||||
Amortization of prior service cost(2) | $ | (2 | ) | $ | (2 | ) | |
Amortization of net loss(2) | (4 | ) | (1 | ) | |||
Tax benefit(3) | 2 | 1 | |||||
Total pension liability adjustment reclassifications for the period, net of taxes | (4 | ) | (2 | ) | |||
Total reclassifications for the period, net of tax | $ | (4 | ) | $ | 2 |
(1) | Reclassified out of accumulated other comprehensive loss to other gain (loss), net in our condensed consolidated statements of operations. Amounts in parentheses indicate a loss in our condensed consolidated statements of operations. |
(2) | Reclassified out of accumulated other comprehensive loss to general, administrative and other in our condensed consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). See Note 13: "Employee Benefit Plans" for additional information. Amounts in parentheses indicate a loss in our condensed consolidated statements of operations. |
(3) | Reclassified out of accumulated other comprehensive loss to income tax expense in our condensed consolidated statements of operations. |
|
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Revenues | |||||||||||||||
Ownership(1)(2) | $ | 1,141 | $ | 1,126 | $ | 2,105 | $ | 2,078 | |||||||
Management and franchise(3) | 434 | 371 | 825 | 702 | |||||||||||
Timeshare | 319 | 276 | 640 | 555 | |||||||||||
Segment revenues | 1,894 | 1,773 | 3,570 | 3,335 | |||||||||||
Other revenues from managed and franchised properties | 1,061 | 920 | 2,011 | 1,747 | |||||||||||
Other revenues(4) | 21 | 25 | 42 | 46 | |||||||||||
Intersegment fees elimination(1)(2)(3)(4) | (54 | ) | (51 | ) | (102 | ) | (98 | ) | |||||||
Total revenues | $ | 2,922 | $ | 2,667 | $ | 5,521 | $ | 5,030 | |||||||
Adjusted EBITDA | |||||||||||||||
Ownership(1)(2)(3)(4)(5) | $ | 318 | $ | 292 | $ | 508 | $ | 467 | |||||||
Management and franchise(3) | 434 | 371 | 825 | 702 | |||||||||||
Timeshare(1)(3) | 86 | 71 | 160 | 153 | |||||||||||
Corporate and other(2)(4) | (61 | ) | (60 | ) | (117 | ) | (140 | ) | |||||||
Adjusted EBITDA | $ | 777 | $ | 674 | $ | 1,376 | $ | 1,182 |
(1) | Includes charges to timeshare operations for rental fees and fees for other amenities, which were eliminated in our condensed consolidated financial statements. These charges totaled $5 million and $8 million for the three months ended June 30, 2015 and 2014, respectively, and $11 million and $14 million for the six months ended June 30, 2015 and 2014, respectively. While the net effect is zero, our measures of segment revenues and Adjusted EBITDA include these fees as a benefit to the ownership segment and a cost to timeshare Adjusted EBITDA. |
(2) | Includes other intercompany charges of $1 million for the three months ended June 30, 2015 and 2014, and $2 million for the six months ended June 30, 2015 and 2014, which were eliminated in our condensed consolidated financial statements. |
(3) | Includes management, royalty and intellectual property fees of $36 million and $29 million for the three months ended June 30, 2015 and 2014, respectively, and $66 million and $56 million for the six months ended June 30, 2015 and 2014, respectively. These fees are charged to consolidated owned and leased properties and were eliminated in our condensed consolidated financial statements. Also includes a licensing fee of $11 million for the three months ended June 30, 2015 and 2014, and $20 million and $22 million for the six months ended June 30, 2015 and 2014, respectively, which is charged to our timeshare segment by our management and franchise segment and was eliminated in our condensed consolidated financial statements. While the net effect is zero, our measures of segment revenues and Adjusted EBITDA include these fees as a benefit to the management and franchise segment and a cost to ownership Adjusted EBITDA and timeshare Adjusted EBITDA. |
(4) | Includes charges to consolidated owned and leased properties for services provided by our wholly owned laundry business of $1 million and $2 million for the three months ended June 30, 2015 and 2014, respectively, and $3 million and $4 million for the six months ended June 30, 2015 and 2014, respectively. These charges were eliminated in our condensed consolidated financial statements. |
(5) | Includes unconsolidated affiliate Adjusted EBITDA. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Adjusted EBITDA | $ | 777 | $ | 674 | $ | 1,376 | $ | 1,182 | |||||||
Net income attributable to noncontrolling interests | (6 | ) | (3 | ) | (6 | ) | (4 | ) | |||||||
Gain (loss) on sales of assets, net | (3 | ) | — | 142 | — | ||||||||||
Gain (loss) on foreign currency transactions | 5 | 32 | (13 | ) | 46 | ||||||||||
FF&E replacement reserve | (14 | ) | (12 | ) | (27 | ) | (23 | ) | |||||||
Share-based and other compensation expense | (92 | ) | (29 | ) | (122 | ) | (6 | ) | |||||||
Other gain (loss), net | 18 | 11 | (7 | ) | 14 | ||||||||||
Other adjustment items | (50 | ) | (17 | ) | (69 | ) | (30 | ) | |||||||
EBITDA | 635 | 656 | 1,274 | 1,179 | |||||||||||
Interest expense | (149 | ) | (158 | ) | (293 | ) | (311 | ) | |||||||
Interest expense included in equity in earnings from unconsolidated affiliates | (2 | ) | (3 | ) | (4 | ) | (6 | ) | |||||||
Income tax expense | (145 | ) | (121 | ) | (308 | ) | (204 | ) | |||||||
Depreciation and amortization | (173 | ) | (158 | ) | (348 | ) | (311 | ) | |||||||
Depreciation and amortization included in equity in earnings from unconsolidated affiliates | (5 | ) | (7 | ) | (10 | ) | (15 | ) | |||||||
Net income attributable to Hilton stockholders | $ | 161 | $ | 209 | $ | 311 | $ | 332 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Assets: | |||||||
Ownership | $ | 11,728 | $ | 11,595 | |||
Management and franchise | 10,476 | 10,530 | |||||
Timeshare | 1,925 | 1,840 | |||||
Corporate and other | 1,922 | 2,160 | |||||
$ | 26,051 | $ | 26,125 |
Six Months Ended | |||||||
June 30, | |||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Capital expenditures for property and equipment: | |||||||
Ownership | $ | 148 | $ | 106 | |||
Timeshare | 5 | 1 | |||||
Corporate and other | 6 | 3 | |||||
$ | 159 | $ | 110 |
|
|
June 30, 2015 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 197 | $ | 314 | $ | — | $ | 511 | |||||||||||
Restricted cash and cash equivalents | — | — | 144 | 104 | — | 248 | |||||||||||||||||
Accounts receivable, net | — | — | 521 | 416 | — | 937 | |||||||||||||||||
Intercompany receivables | — | — | 28 | — | (28 | ) | — | ||||||||||||||||
Inventories | — | — | 401 | 23 | — | 424 | |||||||||||||||||
Deferred income tax assets | — | — | 10 | 10 | — | 20 | |||||||||||||||||
Current portion of financing receivables, net | — | — | 47 | 19 | — | 66 | |||||||||||||||||
Current portion of securitized financing receivables, net | — | — | — | 59 | — | 59 | |||||||||||||||||
Prepaid expenses | — | — | 40 | 115 | (9 | ) | 146 | ||||||||||||||||
Income taxes receivable | — | — | 61 | — | (23 | ) | 38 | ||||||||||||||||
Other | — | — | 8 | 44 | — | 52 | |||||||||||||||||
Total current assets | — | — | 1,457 | 1,104 | (60 | ) | 2,501 | ||||||||||||||||
Property, Intangibles and Other Assets: | |||||||||||||||||||||||
Property and equipment, net | — | — | 297 | 8,894 | — | 9,191 | |||||||||||||||||
Property and equipment, net held for sale | — | — | — | 111 | — | 111 | |||||||||||||||||
Financing receivables, net | — | — | 357 | 145 | — | 502 | |||||||||||||||||
Securitized financing receivables, net | — | — | — | 347 | — | 347 | |||||||||||||||||
Investments in affiliates | — | — | 117 | 39 | — | 156 | |||||||||||||||||
Investments in subsidiaries | 5,284 | 11,408 | 5,106 | — | (21,798 | ) | — | ||||||||||||||||
Goodwill | — | — | 3,847 | 2,098 | — | 5,945 | |||||||||||||||||
Brands | — | — | 4,405 | 535 | — | 4,940 | |||||||||||||||||
Management and franchise contracts, net | — | — | 940 | 277 | — | 1,217 | |||||||||||||||||
Other intangible assets, net | — | — | 428 | 201 | — | 629 | |||||||||||||||||
Deferred income tax assets | 24 | 4 | — | 154 | (28 | ) | 154 | ||||||||||||||||
Other | — | 78 | 132 | 148 | — | 358 | |||||||||||||||||
Total property, intangibles and other assets | 5,308 | 11,490 | 15,629 | 12,949 | (21,826 | ) | 23,550 | ||||||||||||||||
TOTAL ASSETS | $ | 5,308 | $ | 11,490 | $ | 17,086 | $ | 14,053 | $ | (21,886 | ) | $ | 26,051 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | — | $ | 39 | $ | 1,509 | $ | 721 | $ | (9 | ) | $ | 2,260 | ||||||||||
Intercompany payables | — | — | — | 28 | (28 | ) | — | ||||||||||||||||
Current maturities of long-term debt | — | — | — | 10 | — | 10 | |||||||||||||||||
Current maturities of non-recourse debt | — | — | — | 136 | — | 136 | |||||||||||||||||
Income taxes payable | — | — | 3 | 40 | (23 | ) | 20 | ||||||||||||||||
Total current liabilities | — | 39 | 1,512 | 935 | (60 | ) | 2,426 | ||||||||||||||||
Long-term debt | — | 6,155 | 54 | 4,191 | — | 10,400 | |||||||||||||||||
Non-recourse debt | — | — | — | 644 | — | 644 | |||||||||||||||||
Deferred revenues | — | — | 394 | 1 | — | 395 | |||||||||||||||||
Deferred income tax liabilities | — | — | 2,250 | 2,970 | (28 | ) | 5,192 | ||||||||||||||||
Liability for guest loyalty program | — | — | 744 | — | — | 744 | |||||||||||||||||
Other | 203 | 12 | 724 | 242 | — | 1,181 | |||||||||||||||||
Total liabilities | 203 | 6,206 | 5,678 | 8,983 | (88 | ) | 20,982 | ||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Hilton stockholders' equity | 5,105 | 5,284 | 11,408 | 5,106 | (21,798 | ) | 5,105 | ||||||||||||||||
Noncontrolling interests | — | — | — | (36 | ) | — | (36 | ) | |||||||||||||||
Total equity | 5,105 | 5,284 | 11,408 | 5,070 | (21,798 | ) | 5,069 | ||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 5,308 | $ | 11,490 | $ | 17,086 | $ | 14,053 | $ | (21,886 | ) | $ | 26,051 |
December 31, 2014 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 270 | $ | 296 | $ | — | $ | 566 | |||||||||||
Restricted cash and cash equivalents | — | — | 135 | 67 | — | 202 | |||||||||||||||||
Accounts receivable, net | — | — | 478 | 366 | — | 844 | |||||||||||||||||
Intercompany receivables | — | — | 46 | — | (46 | ) | — | ||||||||||||||||
Inventories | — | — | 380 | 24 | — | 404 | |||||||||||||||||
Deferred income tax assets | — | — | 10 | 10 | — | 20 | |||||||||||||||||
Current portion of financing receivables, net | — | — | 47 | 19 | — | 66 | |||||||||||||||||
Current portion of securitized financing receivables, net | — | — | — | 62 | — | 62 | |||||||||||||||||
Prepaid expenses | — | — | 29 | 124 | (20 | ) | 133 | ||||||||||||||||
Income taxes receivable | — | — | 154 | — | (22 | ) | 132 | ||||||||||||||||
Other | — | — | 5 | 65 | — | 70 | |||||||||||||||||
Total current assets | — | — | 1,554 | 1,033 | (88 | ) | 2,499 | ||||||||||||||||
Property, Intangibles and Other Assets: | |||||||||||||||||||||||
Property and equipment, net | — | — | 305 | 7,178 | — | 7,483 | |||||||||||||||||
Property and equipment, net held for sale | — | — | — | 1,543 | — | 1,543 | |||||||||||||||||
Financing receivables, net | — | — | 272 | 144 | — | 416 | |||||||||||||||||
Securitized financing receivables, net | — | — | — | 406 | — | 406 | |||||||||||||||||
Investments in affiliates | — | — | 123 | 47 | — | 170 | |||||||||||||||||
Investments in subsidiaries | 4,924 | 11,361 | 4,935 | — | (21,220 | ) | — | ||||||||||||||||
Goodwill | — | — | 3,847 | 2,307 | — | 6,154 | |||||||||||||||||
Brands | — | — | 4,405 | 558 | — | 4,963 | |||||||||||||||||
Management and franchise contracts, net | — | — | 1,007 | 299 | — | 1,306 | |||||||||||||||||
Other intangible assets, net | — | — | 466 | 208 | — | 674 | |||||||||||||||||
Deferred income tax assets | 22 | 1 | — | 155 | (23 | ) | 155 | ||||||||||||||||
Other | — | 85 | 119 | 152 | — | 356 | |||||||||||||||||
Total property, intangibles and other assets | 4,946 | 11,447 | 15,479 | 12,997 | (21,243 | ) | 23,626 | ||||||||||||||||
TOTAL ASSETS | $ | 4,946 | $ | 11,447 | $ | 17,033 | $ | 14,030 | $ | (21,331 | ) | $ | 26,125 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | — | $ | 40 | $ | 1,384 | $ | 695 | $ | (20 | ) | $ | 2,099 | ||||||||||
Intercompany payables | — | — | — | 46 | (46 | ) | — | ||||||||||||||||
Current maturities of long-term debt | — | — | — | 10 | — | 10 | |||||||||||||||||
Current maturities of non-recourse debt | — | — | — | 127 | — | 127 | |||||||||||||||||
Income taxes payable | — | — | 5 | 38 | (22 | ) | 21 | ||||||||||||||||
Total current liabilities | — | 40 | 1,389 | 916 | (88 | ) | 2,257 | ||||||||||||||||
Long-term debt | — | 6,479 | 54 | 4,270 | — | 10,803 | |||||||||||||||||
Non-recourse debt | — | — | — | 752 | — | 752 | |||||||||||||||||
Deferred revenues | — | — | 493 | 2 | — | 495 | |||||||||||||||||
Deferred income tax liabilities | — | — | 2,306 | 2,933 | (23 | ) | 5,216 | ||||||||||||||||
Liability for guest loyalty program | — | — | 720 | — | — | 720 | |||||||||||||||||
Other | 194 | 4 | 710 | 260 | — | 1,168 | |||||||||||||||||
Total liabilities | 194 | 6,523 | 5,672 | 9,133 | (111 | ) | 21,411 | ||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Hilton stockholders' equity | 4,752 | 4,924 | 11,361 | 4,935 | (21,220 | ) | 4,752 | ||||||||||||||||
Noncontrolling interests | — | — | — | (38 | ) | — | (38 | ) | |||||||||||||||
Total equity | 4,752 | 4,924 | 11,361 | 4,897 | (21,220 | ) | 4,714 | ||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 4,946 | $ | 11,447 | $ | 17,033 | $ | 14,030 | $ | (21,331 | ) | $ | 26,125 |
Three Months Ended June 30, 2015 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Owned and leased hotels | $ | — | $ | — | $ | 61 | $ | 1,079 | $ | (5 | ) | $ | 1,135 | ||||||||||
Management and franchise fees and other | — | — | 349 | 83 | (25 | ) | 407 | ||||||||||||||||
Timeshare | — | — | 298 | 21 | — | 319 | |||||||||||||||||
— | — | 708 | 1,183 | (30 | ) | 1,861 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 1,169 | 124 | (232 | ) | 1,061 | ||||||||||||||||
Total revenues | — | — | 1,877 | 1,307 | (262 | ) | 2,922 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | 41 | 799 | (23 | ) | 817 | ||||||||||||||||
Timeshare | — | — | 221 | 4 | (5 | ) | 220 | ||||||||||||||||
Depreciation and amortization | — | — | 81 | 92 | — | 173 | |||||||||||||||||
General, administrative and other | — | — | 194 | 29 | (2 | ) | 221 | ||||||||||||||||
— | — | 537 | 924 | (30 | ) | 1,431 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 1,169 | 124 | (232 | ) | 1,061 | ||||||||||||||||
Total expenses | — | — | 1,706 | 1,048 | (262 | ) | 2,492 | ||||||||||||||||
Gain (loss) on sales of assets, net | — | — | 1 | (4 | ) | — | (3 | ) | |||||||||||||||
Operating income | — | — | 172 | 255 | — | 427 | |||||||||||||||||
Interest income | — | — | 1 | 1 | — | 2 | |||||||||||||||||
Interest expense | — | (71 | ) | (15 | ) | (63 | ) | — | (149 | ) | |||||||||||||
Equity in earnings from unconsolidated affiliates | — | — | 8 | 1 | — | 9 | |||||||||||||||||
Gain (loss) on foreign currency transactions | — | — | (323 | ) | 328 | — | 5 | ||||||||||||||||
Other gain, net | — | — | — | 18 | — | 18 | |||||||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries | — | (71 | ) | (157 | ) | 540 | — | 312 | |||||||||||||||
Income tax benefit (expense) | (4 | ) | 27 | 53 | (221 | ) | — | (145 | ) | ||||||||||||||
Income (loss) before equity in earnings from subsidiaries | (4 | ) | (44 | ) | (104 | ) | 319 | — | 167 | ||||||||||||||
Equity in earnings from subsidiaries | 165 | 209 | 313 | — | (687 | ) | — | ||||||||||||||||
Net income | 161 | 165 | 209 | 319 | (687 | ) | 167 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 161 | $ | 165 | $ | 209 | $ | 313 | $ | (687 | ) | $ | 161 | ||||||||||
Comprehensive income | $ | 356 | $ | 167 | $ | 240 | $ | 481 | $ | (882 | ) | $ | 362 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 356 | $ | 167 | $ | 240 | $ | 475 | $ | (882 | ) | $ | 356 |
Three Months Ended June 30, 2014 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Owned and leased hotels | $ | — | $ | — | $ | 55 | $ | 1,068 | $ | (6 | ) | $ | 1,117 | ||||||||||
Management and franchise fees and other | — | — | 306 | 79 | (31 | ) | 354 | ||||||||||||||||
Timeshare | — | — | 250 | 26 | — | 276 | |||||||||||||||||
— | — | 611 | 1,173 | (37 | ) | 1,747 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 1,030 | 102 | (212 | ) | 920 | ||||||||||||||||
Total revenues | — | — | 1,641 | 1,275 | (249 | ) | 2,667 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | 39 | 813 | (19 | ) | 833 | ||||||||||||||||
Timeshare | — | — | 200 | 4 | (16 | ) | 188 | ||||||||||||||||
Depreciation and amortization | — | — | 77 | 81 | — | 158 | |||||||||||||||||
General, administrative and other | — | — | 103 | 32 | (2 | ) | 133 | ||||||||||||||||
— | — | 419 | 930 | (37 | ) | 1,312 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 1,030 | 102 | (212 | ) | 920 | ||||||||||||||||
Total expenses | — | — | 1,449 | 1,032 | (249 | ) | 2,232 | ||||||||||||||||
Operating income | — | — | 192 | 243 | — | 435 | |||||||||||||||||
Interest income | — | — | 3 | 2 | — | 5 | |||||||||||||||||
Interest expense | — | (86 | ) | (15 | ) | (57 | ) | — | (158 | ) | |||||||||||||
Equity in earnings from unconsolidated affiliates | — | — | 7 | 1 | — | 8 | |||||||||||||||||
Gain (loss) on foreign currency transactions | — | — | 37 | (5 | ) | — | 32 | ||||||||||||||||
Other gain, net | — | — | 3 | 8 | — | 11 | |||||||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries | — | (86 | ) | 227 | 192 | — | 333 | ||||||||||||||||
Income tax benefit (expense) | — | 33 | (95 | ) | (59 | ) | — | (121 | ) | ||||||||||||||
Income (loss) before equity in earnings from subsidiaries | — | (53 | ) | 132 | 133 | — | 212 | ||||||||||||||||
Equity in earnings from subsidiaries | 209 | 262 | 130 | — | (601 | ) | — | ||||||||||||||||
Net income | 209 | 209 | 262 | 133 | (601 | ) | 212 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 209 | $ | 209 | $ | 262 | $ | 130 | $ | (601 | ) | $ | 209 | ||||||||||
Comprehensive income | $ | 259 | $ | 203 | $ | 225 | $ | 226 | $ | (651 | ) | $ | 262 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 259 | $ | 203 | $ | 225 | $ | 223 | $ | (651 | ) | $ | 259 |
Six Months Ended June 30, 2015 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Owned and leased hotels | $ | — | $ | — | $ | 113 | $ | 1,991 | $ | (12 | ) | $ | 2,092 | ||||||||||
Management and franchise fees and other | — | — | 671 | 157 | (50 | ) | 778 | ||||||||||||||||
Timeshare | — | — | 597 | 43 | — | 640 | |||||||||||||||||
— | — | 1,381 | 2,191 | (62 | ) | 3,510 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 2,250 | 229 | (468 | ) | 2,011 | ||||||||||||||||
Total revenues | — | — | 3,631 | 2,420 | (530 | ) | 5,521 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | 82 | 1,548 | (45 | ) | 1,585 | ||||||||||||||||
Timeshare | — | — | 457 | 8 | (11 | ) | 454 | ||||||||||||||||
Depreciation and amortization | — | — | 173 | 175 | — | 348 | |||||||||||||||||
General, administrative and other | — | — | 288 | 66 | (6 | ) | 348 | ||||||||||||||||
— | — | 1,000 | 1,797 | (62 | ) | 2,735 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 2,250 | 229 | (468 | ) | 2,011 | ||||||||||||||||
Total expenses | — | — | 3,250 | 2,026 | (530 | ) | 4,746 | ||||||||||||||||
Gain on sales of assets, net | — | — | — | 142 | — | 142 | |||||||||||||||||
Operating income | — | — | 381 | 536 | — | 917 | |||||||||||||||||
Interest income | — | — | 7 | 1 | — | 8 | |||||||||||||||||
Interest expense | — | (144 | ) | (28 | ) | (121 | ) | — | (293 | ) | |||||||||||||
Equity in earnings from unconsolidated affiliates | — | — | 11 | 2 | — | 13 | |||||||||||||||||
Gain (loss) on foreign currency transactions | — | — | (140 | ) | 127 | — | (13 | ) | |||||||||||||||
Other loss, net | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries | — | (144 | ) | 231 | 538 | — | 625 | ||||||||||||||||
Income tax benefit (expense) | (5 | ) | 55 | (99 | ) | (259 | ) | — | (308 | ) | |||||||||||||
Income (loss) before equity in earnings from subsidiaries | (5 | ) | (89 | ) | 132 | 279 | — | 317 | |||||||||||||||
Equity in earnings from subsidiaries | 316 | 405 | 273 | — | (994 | ) | — | ||||||||||||||||
Net income | 311 | 316 | 405 | 279 | (994 | ) | 317 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 311 | $ | 316 | $ | 405 | $ | 273 | $ | (994 | ) | $ | 311 | ||||||||||
Comprehensive income | $ | 266 | $ | 311 | $ | 408 | $ | 236 | $ | (949 | ) | $ | 272 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 266 | $ | 311 | $ | 408 | $ | 230 | $ | (949 | ) | $ | 266 |
Six Months Ended June 30, 2014 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Owned and leased hotels | $ | — | $ | — | $ | 103 | $ | 1,973 | $ | (14 | ) | $ | 2,062 | ||||||||||
Management and franchise fees and other | — | — | 574 | 155 | (63 | ) | 666 | ||||||||||||||||
Timeshare | — | — | 506 | 49 | — | 555 | |||||||||||||||||
— | — | 1,183 | 2,177 | (77 | ) | 3,283 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 1,977 | 193 | (423 | ) | 1,747 | ||||||||||||||||
Total revenues | — | — | 3,160 | 2,370 | (500 | ) | 5,030 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | 75 | 1,567 | (38 | ) | 1,604 | ||||||||||||||||
Timeshare | — | — | 390 | 9 | (34 | ) | 365 | ||||||||||||||||
Depreciation and amortization | — | — | 150 | 161 | — | 311 | |||||||||||||||||
General, administrative and other | — | — | 181 | 54 | (5 | ) | 230 | ||||||||||||||||
— | — | 796 | 1,791 | (77 | ) | 2,510 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 1,977 | 193 | (423 | ) | 1,747 | ||||||||||||||||
Total expenses | — | — | 2,773 | 1,984 | (500 | ) | 4,257 | ||||||||||||||||
Operating income | — | — | 387 | 386 | — | 773 | |||||||||||||||||
Interest income | — | — | 4 | 2 | — | 6 | |||||||||||||||||
Interest expense | — | (172 | ) | (27 | ) | (112 | ) | — | (311 | ) | |||||||||||||
Equity in earnings from unconsolidated affiliates | — | — | 10 | 2 | — | 12 | |||||||||||||||||
Gain on foreign currency transactions | — | — | 43 | 3 | — | 46 | |||||||||||||||||
Other gain, net | — | — | 6 | 8 | — | 14 | |||||||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries | — | (172 | ) | 423 | 289 | — | 540 | ||||||||||||||||
Income tax benefit (expense) | (4 | ) | 66 | (167 | ) | (99 | ) | — | (204 | ) | |||||||||||||
Income (loss) before equity in earnings from subsidiaries | (4 | ) | (106 | ) | 256 | 190 | — | 336 | |||||||||||||||
Equity in earnings from subsidiaries | 336 | 442 | 186 | — | (964 | ) | — | ||||||||||||||||
Net income | 332 | 336 | 442 | 190 | (964 | ) | 336 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 332 | $ | 336 | $ | 442 | $ | 186 | $ | (964 | ) | $ | 332 | ||||||||||
Comprehensive income | $ | 410 | $ | 327 | $ | 415 | $ | 302 | $ | (1,042 | ) | $ | 412 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 410 | $ | 327 | $ | 415 | $ | 300 | $ | (1,042 | ) | $ | 410 |
Six Months Ended June 30, 2015 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | — | $ | 300 | $ | 416 | $ | (68 | ) | $ | 648 | ||||||||||
Investing Activities: | |||||||||||||||||||||||
Capital expenditures for property and equipment | — | — | (14 | ) | (145 | ) | — | (159 | ) | ||||||||||||||
Acquisitions, net of cash acquired | — | — | — | (1,410 | ) | — | (1,410 | ) | |||||||||||||||
Payments received on other financing receivables | — | — | 1 | 1 | — | 2 | |||||||||||||||||
Issuance of other financing receivables | — | — | (4 | ) | (2 | ) | — | (6 | ) | ||||||||||||||
Investments in affiliates | — | — | (5 | ) | — | — | (5 | ) | |||||||||||||||
Distributions from unconsolidated affiliates | — | — | 9 | — | — | 9 | |||||||||||||||||
Issuance of intercompany receivables | — | — | (184 | ) | — | 184 | — | ||||||||||||||||
Payments received on intercompany receivables | — | — | 184 | — | (184 | ) | — | ||||||||||||||||
Proceeds from asset dispositions | — | — | — | 1,869 | — | 1,869 | |||||||||||||||||
Contract acquisition costs | — | — | (11 | ) | (8 | ) | — | (19 | ) | ||||||||||||||
Software capitalization costs | — | — | (23 | ) | — | — | (23 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | — | — | (47 | ) | 305 | — | 258 | ||||||||||||||||
Financing Activities: | |||||||||||||||||||||||
Borrowings | — | — | — | 34 | — | 34 | |||||||||||||||||
Repayment of debt | — | (325 | ) | — | (636 | ) | — | (961 | ) | ||||||||||||||
Intercompany borrowings | — | — | — | 184 | (184 | ) | — | ||||||||||||||||
Repayment of intercompany borrowings | — | — | — | (184 | ) | 184 | — | ||||||||||||||||
Change in restricted cash and cash equivalents | — | — | — | (29 | ) | — | (29 | ) | |||||||||||||||
Intercompany transfers | — | 325 | (334 | ) | 9 | — | — | ||||||||||||||||
Dividends paid to Guarantors | — | — | — | (68 | ) | 68 | — | ||||||||||||||||
Distributions to noncontrolling interests | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||
Excess tax benefits from share-based compensation | — | — | 8 | — | — | 8 | |||||||||||||||||
Net cash used in financing activities | — | — | (326 | ) | (694 | ) | 68 | (952 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (9 | ) | — | (9 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | — | (73 | ) | 18 | — | (55 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 270 | 296 | — | 566 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 197 | $ | 314 | $ | — | $ | 511 |
Six Months Ended June 30, 2014 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | — | $ | 506 | $ | 163 | $ | (157 | ) | $ | 512 | ||||||||||
Investing Activities: | |||||||||||||||||||||||
Capital expenditures for property and equipment | — | — | (6 | ) | (104 | ) | — | (110 | ) | ||||||||||||||
Payments received on other financing receivables | — | — | 1 | 1 | — | 2 | |||||||||||||||||
Issuance of other financing receivables | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Investments in affiliates | — | — | (5 | ) | — | — | (5 | ) | |||||||||||||||
Distributions from unconsolidated affiliates | — | — | 11 | — | — | 11 | |||||||||||||||||
Proceeds from asset dispositions | — | — | 4 | 31 | — | 35 | |||||||||||||||||
Contract acquisition costs | — | — | (3 | ) | (18 | ) | — | (21 | ) | ||||||||||||||
Software capitalization costs | — | — | (32 | ) | — | — | (32 | ) | |||||||||||||||
Net cash used in investing activities | — | — | (30 | ) | (91 | ) | — | (121 | ) | ||||||||||||||
Financing Activities: | |||||||||||||||||||||||
Borrowings | — | — | — | 350 | — | 350 | |||||||||||||||||
Repayment of debt | — | (450 | ) | — | (333 | ) | — | (783 | ) | ||||||||||||||
Debt issuance costs | — | (1 | ) | — | (1 | ) | — | (2 | ) | ||||||||||||||
Change in restricted cash and cash equivalents | — | — | — | (17 | ) | — | (17 | ) | |||||||||||||||
Intercompany transfers | — | 451 | (513 | ) | 62 | — | — | ||||||||||||||||
Dividends paid to Guarantors | — | — | — | (157 | ) | 157 | — | ||||||||||||||||
Capital contribution | — | — | — | 13 | — | 13 | |||||||||||||||||
Distributions to noncontrolling interests | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||
Net cash used in financing activities | — | — | (513 | ) | (85 | ) | 157 | (441 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 1 | — | 1 | |||||||||||||||||
Net decrease in cash and cash equivalents | — | — | (37 | ) | (12 | ) | — | (49 | ) | ||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 329 | 265 | — | 594 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 292 | $ | 253 | $ | — | $ | 545 |
|
|
|
(in millions) | |||
Cash and cash equivalents | $ | 16 | |
Restricted cash and cash equivalents | 8 | ||
Inventories | 1 | ||
Prepaid expenses | 3 | ||
Other current assets | 1 | ||
Property and equipment | 1,868 | ||
Other intangible assets, net | 4 | ||
Accounts payable, accrued expenses and other | (25 | ) | |
Long-term debt | (450 | ) | |
Net assets acquired | $ | 1,426 |
Three Months Ended | Six Months Ended | ||||||
June 30, 2015 | June 30, 2015 | ||||||
(in millions) | |||||||
Total revenues | $ | 89 | $ | 144 | |||
Income before income taxes | 19 | 34 |
|
(in millions) | |||
Assets: | |||
Current assets held for sale(1) | $ | 12 | |
Property and equipment, net held for sale: | |||
Land | 4 | ||
Buildings and leasehold improvements | 134 | ||
Furniture and equipment | 7 | ||
145 | |||
Accumulated depreciation and amortization | (34 | ) | |
Total property and equipment, net held for sale | 111 | ||
Total assets held for sale | $ | 123 | |
Liabilities: | |||
Current liabilities related to assets held for sale(2) | $ | 10 | |
Total liabilities held for sale | $ | 10 |
(1) | Amounts included in other current assets in our condensed consolidated balance sheet as of June 30, 2015. |
(2) | Amounts included in accounts payable, accrued liabilities and other in our condensed consolidated balance sheet as of June 30, 2015. |
|
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Land | $ | 3,487 | $ | 3,009 | |||
Buildings and leasehold improvements | 6,346 | 5,150 | |||||
Furniture and equipment | 1,249 | 1,140 | |||||
Construction-in-progress | 98 | 53 | |||||
11,180 | 9,352 | ||||||
Accumulated depreciation and amortization | (1,989 | ) | (1,869 | ) | |||
$ | 9,191 | $ | 7,483 |
|
June 30, 2015 | |||||||||||||||
Securitized Timeshare | Unsecuritized Timeshare(1) | Other | Total | ||||||||||||
(in millions) | |||||||||||||||
Financing receivables | $ | 366 | $ | 536 | $ | 34 | $ | 936 | |||||||
Less: allowance | (19 | ) | (67 | ) | (1 | ) | (87 | ) | |||||||
347 | 469 | 33 | 849 | ||||||||||||
Current portion of financing receivables | 62 | 73 | 2 | 137 | |||||||||||
Less: allowance | (3 | ) | (9 | ) | — | (12 | ) | ||||||||
59 | 64 | 2 | 125 | ||||||||||||
Total financing receivables | $ | 406 | $ | 533 | $ | 35 | $ | 974 |
December 31, 2014 | |||||||||||||||
Securitized Timeshare | Unsecuritized Timeshare(1) | Other | Total | ||||||||||||
(in millions) | |||||||||||||||
Financing receivables | $ | 430 | $ | 454 | $ | 22 | $ | 906 | |||||||
Less: allowance | (24 | ) | (58 | ) | (2 | ) | (84 | ) | |||||||
406 | 396 | 20 | 822 | ||||||||||||
Current portion of financing receivables | 66 | 74 | 2 | 142 | |||||||||||
Less: allowance | (4 | ) | (10 | ) | — | (14 | ) | ||||||||
62 | 64 | 2 | 128 | ||||||||||||
Total financing receivables | $ | 468 | $ | 460 | $ | 22 | $ | 950 |
(1) | Included in this balance, we had $164 million of gross timeshare financing receivables secured under our revolving non-recourse timeshare financing receivables credit facility (the "Timeshare Facility"), as of June 30, 2015 and December 31, 2014. |
Six Months Ended | |||||||
June 30, | |||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Beginning balance | $ | 96 | $ | 92 | |||
Write-offs | (15 | ) | (16 | ) | |||
Provision for uncollectibles on sales | 17 | 15 | |||||
Ending balance | $ | 98 | $ | 91 |
Securitized Timeshare | Unsecuritized Timeshare | ||||||
Year | (in millions) | ||||||
2015 (remaining) | $ | 30 | $ | 45 | |||
2016 | 63 | 59 | |||||
2017 | 65 | 63 | |||||
2018 | 64 | 64 | |||||
2019 | 60 | 64 | |||||
Thereafter | 146 | 314 | |||||
428 | 609 | ||||||
Less: allowance | (22 | ) | (76 | ) | |||
$ | 406 | $ | 533 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Current | $ | 997 | $ | 980 | |||
30 - 89 days past due | 9 | 13 | |||||
90 - 119 days past due | 3 | 2 | |||||
120 days and greater past due | 28 | 29 | |||||
$ | 1,037 | $ | 1,024 |
|
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Equity investments | $ | 143 | $ | 153 | |||
Other investments | 13 | 17 | |||||
$ | 156 | $ | 170 |
|
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Restricted cash and cash equivalents | $ | 17 | $ | 20 | |||
Securitized financing receivables, net | 406 | 468 | |||||
Non-recourse debt | 414 | 481 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Cash and cash equivalents | $ | 30 | $ | 26 | |||
Property and equipment, net | 44 | 49 | |||||
Non-recourse debt | 205 | 237 |
|
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Senior secured term loan facility with a rate of 3.50%, due 2020 | $ | 4,675 | $ | 5,000 | |||
Senior notes with a rate of 5.625%, due 2021 | 1,500 | 1,500 | |||||
Commercial mortgage-backed securities loan with an average rate of 4.06%, due 2018(1) | 3,487 | 3,487 | |||||
Mortgage loans with an average rate of 3.99%, due 2016 to 2020(2) | 647 | 721 | |||||
Other unsecured notes with a rate of 7.50%, due 2017 | 54 | 54 | |||||
Capital lease obligations with an average rate of 6.12%, due 2015 to 2097 | 66 | 72 | |||||
10,429 | 10,834 | ||||||
Less: current maturities of long-term debt | (10 | ) | (10 | ) | |||
Less: unamortized discount on senior secured term loan facility | (19 | ) | (21 | ) | |||
$ | 10,400 | $ | 10,803 |
(1) | The initial maturity date of the variable-rate component of this borrowing is November 1, 2015. We assumed all extensions, which are solely at our option, were exercised. |
(2) | For mortgage loans with extensions that are solely at our option, we assumed they were exercised. |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Capital lease obligations of consolidated VIEs with a rate of 6.34%, due 2018 to 2026 | $ | 185 | $ | 216 | |||
Non-recourse debt of consolidated VIEs with an average rate of 3.75%, due 2015 to 2018(1) | 31 | 32 | |||||
Timeshare Facility with a rate of 1.19%, due 2017 | 150 | 150 | |||||
Securitized Timeshare Debt with an average rate of 1.97%, due 2026 | 414 | 481 | |||||
780 | 879 | ||||||
Less: current maturities of non-recourse debt | (136 | ) | (127 | ) | |||
$ | 644 | $ | 752 |
(1) | Excludes the non-recourse debt of our VIEs that issued the Securitized Timeshare Debt, as it is presented separately. |
Year | (in millions) | ||
2015 (remaining) | $ | 88 | |
2016 | 213 | ||
2017 | 349 | ||
2018(1) | 3,563 | ||
2019(1) | 481 | ||
Thereafter | 6,515 | ||
$ | 11,209 |
(1) | We assumed all extensions on the CMBS Loan and Bonnet Creek Loan for purposes of calculating maturity dates. |
|
June 30, 2015 | December 31, 2014 | ||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||
(in millions) | (in millions) | ||||||||||
Cash Flow Hedges: | |||||||||||
Interest rate swaps | Other liabilities | $ | 12 | Other liabilities | $ | 4 | |||||
Non-designated Hedges: | |||||||||||
Interest rate caps(1) | Other assets | — | Other assets | — | |||||||
Forward contracts(1) | Other assets | — | Other assets | — | |||||||
Forward contracts(2) | Accounts payable, accrued expenses and other | 2 | Accounts payable, accrued expenses and other | — |
(1) | The fair values of our interest rate caps and forward contracts were less than $1 million as of June 30, 2015 and December 31, 2014. |
(2) | The fair values of our forward contracts were less than $1 million as of December 31, 2014. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Classification of Gain (Loss) Recognized | 2015 | 2014 | 2015 | 2014 | |||||||||||||
(in millions) | |||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Interest rate swaps(1) | Other comprehensive income (loss) | $ | 3 | $ | (9 | ) | $ | (8 | ) | $ | (14 | ) | |||||
Non-designated Hedges: | |||||||||||||||||
Interest rate caps | Other gain (loss), net | — | — | — | — | ||||||||||||
Forward contracts | Gain (loss) on foreign currency transactions | 8 | N/A | 6 | N/A |
(1) | There were no amounts recognized in earnings related to hedge ineffectiveness or amounts excluded from hedge effectiveness testing during the three and six months ended June 30, 2015 and 2014. |
|
June 30, 2015 | |||||||||||||||
Hierarchy Level | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 250 | $ | — | $ | 250 | $ | — | |||||||
Restricted cash equivalents | 22 | — | 22 | — | |||||||||||
Timeshare financing receivables | 1,037 | — | — | 1,036 | |||||||||||
Liabilities: | |||||||||||||||
Long-term debt(1) | 10,344 | 1,623 | — | 8,862 | |||||||||||
Non-recourse debt(2) | 564 | — | — | 561 | |||||||||||
Interest rate swaps | 12 | — | 12 | — |
December 31, 2014 | |||||||||||||||
Hierarchy Level | |||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents | $ | 326 | $ | — | $ | 326 | $ | — | |||||||
Restricted cash equivalents | 38 | — | 38 | — | |||||||||||
Timeshare financing receivables | 1,024 | — | — | 1,021 | |||||||||||
Liabilities: | |||||||||||||||
Long-term debt(1) | 10,741 | 1,630 | — | 9,207 | |||||||||||
Non-recourse debt(2) | 631 | — | — | 626 | |||||||||||
Interest rate swaps | 4 | — | 4 | — |
(1) | Excludes capital lease obligations with a carrying value of $66 million and $72 million as of June 30, 2015 and December 31, 2014, respectively. |
(2) | Excludes capital lease obligations of consolidated VIEs with a carrying value of $185 million and $216 million as of June 30, 2015 and December 31, 2014, respectively, and non-recourse debt of consolidated VIEs with a carrying value of $31 million and $32 million, respectively. |
Fair Value(1) | |||
(in millions) | |||
Property and equipment | $ | 1,868 | |
Long-term debt | 450 |
(1) | Fair values were estimated using significant unobservable inputs (Level 3). |
|
Three Months Ended June 30, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
Domestic Plan | U.K. Plan | International Plans | Domestic Plan | U.K. Plan | International Plans | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 1 | $ | — | $ | — | $ | 2 | $ | — | $ | 1 | |||||||||||
Interest cost | 4 | 4 | 1 | 4 | 4 | 1 | |||||||||||||||||
Expected return on plan assets | (5 | ) | (6 | ) | (1 | ) | (5 | ) | (6 | ) | (1 | ) | |||||||||||
Amortization of prior service cost | 1 | — | — | 1 | — | — | |||||||||||||||||
Amortization of net loss | 1 | — | 1 | 1 | — | — | |||||||||||||||||
Settlement losses | — | — | 2 | 1 | — | — | |||||||||||||||||
Net periodic pension cost (credit) | $ | 2 | $ | (2 | ) | $ | 3 | $ | 4 | $ | (2 | ) | $ | 1 |
Six Months Ended June 30, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||
Domestic Plan | U.K. Plan | International Plans | Domestic Plan | U.K. Plan | International Plans | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 3 | $ | — | $ | 1 | $ | 4 | $ | — | $ | 2 | |||||||||||
Interest cost | 8 | 8 | 2 | 8 | 9 | 2 | |||||||||||||||||
Expected return on plan assets | (10 | ) | (12 | ) | (2 | ) | (9 | ) | (12 | ) | (2 | ) | |||||||||||
Amortization of prior service cost | 2 | — | — | 2 | — | — | |||||||||||||||||
Amortization of net loss | 2 | 1 | 1 | 1 | — | — | |||||||||||||||||
Settlement losses | — | — | 2 | 1 | — | — | |||||||||||||||||
Net periodic pension cost (credit) | $ | 5 | $ | (3 | ) | $ | 4 | $ | 7 | $ | (3 | ) | $ | 2 |
|
Currency Translation Adjustment(1) | Pension Liability Adjustment | Cash Flow Hedge Adjustment | Total | ||||||||||||
(in millions) | |||||||||||||||
Balance as of December 31, 2014 | $ | (446 | ) | $ | (179 | ) | $ | (3 | ) | $ | (628 | ) | |||
Other comprehensive loss before reclassifications | (42 | ) | (2 | ) | (5 | ) | (49 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | — | 4 | — | 4 | |||||||||||
Net current period other comprehensive income (loss) | (42 | ) | 2 | (5 | ) | (45 | ) | ||||||||
Balance as of June 30, 2015 | $ | (488 | ) | $ | (177 | ) | $ | (8 | ) | $ | (673 | ) |
Currency Translation Adjustment(1) | Pension Liability Adjustment | Cash Flow Hedge Adjustment | Total | ||||||||||||
(in millions) | |||||||||||||||
Balance as of December 31, 2013 | $ | (136 | ) | $ | (134 | ) | $ | 6 | $ | (264 | ) | ||||
Other comprehensive income (loss) before reclassifications | 87 | 2 | (9 | ) | 80 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | (4 | ) | 2 | — | (2 | ) | |||||||||
Net current period other comprehensive income (loss) | 83 | 4 | (9 | ) | 78 | ||||||||||
Balance as of June 30, 2014 | $ | (53 | ) | $ | (130 | ) | $ | (3 | ) | $ | (186 | ) |
(1) | Includes net investment hedges. |
Six Months Ended | |||||||
June 30, | |||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Currency translation adjustment: | |||||||
Sale and liquidation of foreign assets(1) | $ | — | $ | 4 | |||
Total currency translation adjustment reclassifications for the period, net of taxes | — | 4 | |||||
Pension liability adjustment: | |||||||
Amortization of prior service cost(2) | $ | (2 | ) | $ | (2 | ) | |
Amortization of net loss(2) | (4 | ) | (1 | ) | |||
Tax benefit(3) | 2 | 1 | |||||
Total pension liability adjustment reclassifications for the period, net of taxes | (4 | ) | (2 | ) | |||
Total reclassifications for the period, net of tax | $ | (4 | ) | $ | 2 |
(1) | Reclassified out of accumulated other comprehensive loss to other gain (loss), net in our condensed consolidated statements of operations. Amounts in parentheses indicate a loss in our condensed consolidated statements of operations. |
(2) | Reclassified out of accumulated other comprehensive loss to general, administrative and other in our condensed consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). See Note 13: "Employee Benefit Plans" for additional information. Amounts in parentheses indicate a loss in our condensed consolidated statements of operations. |
(3) | Reclassified out of accumulated other comprehensive loss to income tax expense in our condensed consolidated statements of operations. |
|
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Revenues | |||||||||||||||
Ownership(1)(2) | $ | 1,141 | $ | 1,126 | $ | 2,105 | $ | 2,078 | |||||||
Management and franchise(3) | 434 | 371 | 825 | 702 | |||||||||||
Timeshare | 319 | 276 | 640 | 555 | |||||||||||
Segment revenues | 1,894 | 1,773 | 3,570 | 3,335 | |||||||||||
Other revenues from managed and franchised properties | 1,061 | 920 | 2,011 | 1,747 | |||||||||||
Other revenues(4) | 21 | 25 | 42 | 46 | |||||||||||
Intersegment fees elimination(1)(2)(3)(4) | (54 | ) | (51 | ) | (102 | ) | (98 | ) | |||||||
Total revenues | $ | 2,922 | $ | 2,667 | $ | 5,521 | $ | 5,030 | |||||||
Adjusted EBITDA | |||||||||||||||
Ownership(1)(2)(3)(4)(5) | $ | 318 | $ | 292 | $ | 508 | $ | 467 | |||||||
Management and franchise(3) | 434 | 371 | 825 | 702 | |||||||||||
Timeshare(1)(3) | 86 | 71 | 160 | 153 | |||||||||||
Corporate and other(2)(4) | (61 | ) | (60 | ) | (117 | ) | (140 | ) | |||||||
Adjusted EBITDA | $ | 777 | $ | 674 | $ | 1,376 | $ | 1,182 |
(1) | Includes charges to timeshare operations for rental fees and fees for other amenities, which were eliminated in our condensed consolidated financial statements. These charges totaled $5 million and $8 million for the three months ended June 30, 2015 and 2014, respectively, and $11 million and $14 million for the six months ended June 30, 2015 and 2014, respectively. While the net effect is zero, our measures of segment revenues and Adjusted EBITDA include these fees as a benefit to the ownership segment and a cost to timeshare Adjusted EBITDA. |
(2) | Includes other intercompany charges of $1 million for the three months ended June 30, 2015 and 2014, and $2 million for the six months ended June 30, 2015 and 2014, which were eliminated in our condensed consolidated financial statements. |
(3) | Includes management, royalty and intellectual property fees of $36 million and $29 million for the three months ended June 30, 2015 and 2014, respectively, and $66 million and $56 million for the six months ended June 30, 2015 and 2014, respectively. These fees are charged to consolidated owned and leased properties and were eliminated in our condensed consolidated financial statements. Also includes a licensing fee of $11 million for the three months ended June 30, 2015 and 2014, and $20 million and $22 million for the six months ended June 30, 2015 and 2014, respectively, which is charged to our timeshare segment by our management and franchise segment and was eliminated in our condensed consolidated financial statements. While the net effect is zero, our measures of segment revenues and Adjusted EBITDA include these fees as a benefit to the management and franchise segment and a cost to ownership Adjusted EBITDA and timeshare Adjusted EBITDA. |
(4) | Includes charges to consolidated owned and leased properties for services provided by our wholly owned laundry business of $1 million and $2 million for the three months ended June 30, 2015 and 2014, respectively, and $3 million and $4 million for the six months ended June 30, 2015 and 2014, respectively. These charges were eliminated in our condensed consolidated financial statements. |
(5) | Includes unconsolidated affiliate Adjusted EBITDA. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Adjusted EBITDA | $ | 777 | $ | 674 | $ | 1,376 | $ | 1,182 | |||||||
Net income attributable to noncontrolling interests | (6 | ) | (3 | ) | (6 | ) | (4 | ) | |||||||
Gain (loss) on sales of assets, net | (3 | ) | — | 142 | — | ||||||||||
Gain (loss) on foreign currency transactions | 5 | 32 | (13 | ) | 46 | ||||||||||
FF&E replacement reserve | (14 | ) | (12 | ) | (27 | ) | (23 | ) | |||||||
Share-based and other compensation expense | (92 | ) | (29 | ) | (122 | ) | (6 | ) | |||||||
Other gain (loss), net | 18 | 11 | (7 | ) | 14 | ||||||||||
Other adjustment items | (50 | ) | (17 | ) | (69 | ) | (30 | ) | |||||||
EBITDA | 635 | 656 | 1,274 | 1,179 | |||||||||||
Interest expense | (149 | ) | (158 | ) | (293 | ) | (311 | ) | |||||||
Interest expense included in equity in earnings from unconsolidated affiliates | (2 | ) | (3 | ) | (4 | ) | (6 | ) | |||||||
Income tax expense | (145 | ) | (121 | ) | (308 | ) | (204 | ) | |||||||
Depreciation and amortization | (173 | ) | (158 | ) | (348 | ) | (311 | ) | |||||||
Depreciation and amortization included in equity in earnings from unconsolidated affiliates | (5 | ) | (7 | ) | (10 | ) | (15 | ) | |||||||
Net income attributable to Hilton stockholders | $ | 161 | $ | 209 | $ | 311 | $ | 332 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Assets: | |||||||
Ownership | $ | 11,728 | $ | 11,595 | |||
Management and franchise | 10,476 | 10,530 | |||||
Timeshare | 1,925 | 1,840 | |||||
Corporate and other | 1,922 | 2,160 | |||||
$ | 26,051 | $ | 26,125 |
Six Months Ended | |||||||
June 30, | |||||||
2015 | 2014 | ||||||
(in millions) | |||||||
Capital expenditures for property and equipment: | |||||||
Ownership | $ | 148 | $ | 106 | |||
Timeshare | 5 | 1 | |||||
Corporate and other | 6 | 3 | |||||
$ | 159 | $ | 110 |
|
June 30, 2015 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 197 | $ | 314 | $ | — | $ | 511 | |||||||||||
Restricted cash and cash equivalents | — | — | 144 | 104 | — | 248 | |||||||||||||||||
Accounts receivable, net | — | — | 521 | 416 | — | 937 | |||||||||||||||||
Intercompany receivables | — | — | 28 | — | (28 | ) | — | ||||||||||||||||
Inventories | — | — | 401 | 23 | — | 424 | |||||||||||||||||
Deferred income tax assets | — | — | 10 | 10 | — | 20 | |||||||||||||||||
Current portion of financing receivables, net | — | — | 47 | 19 | — | 66 | |||||||||||||||||
Current portion of securitized financing receivables, net | — | — | — | 59 | — | 59 | |||||||||||||||||
Prepaid expenses | — | — | 40 | 115 | (9 | ) | 146 | ||||||||||||||||
Income taxes receivable | — | — | 61 | — | (23 | ) | 38 | ||||||||||||||||
Other | — | — | 8 | 44 | — | 52 | |||||||||||||||||
Total current assets | — | — | 1,457 | 1,104 | (60 | ) | 2,501 | ||||||||||||||||
Property, Intangibles and Other Assets: | |||||||||||||||||||||||
Property and equipment, net | — | — | 297 | 8,894 | — | 9,191 | |||||||||||||||||
Property and equipment, net held for sale | — | — | — | 111 | — | 111 | |||||||||||||||||
Financing receivables, net | — | — | 357 | 145 | — | 502 | |||||||||||||||||
Securitized financing receivables, net | — | — | — | 347 | — | 347 | |||||||||||||||||
Investments in affiliates | — | — | 117 | 39 | — | 156 | |||||||||||||||||
Investments in subsidiaries | 5,284 | 11,408 | 5,106 | — | (21,798 | ) | — | ||||||||||||||||
Goodwill | — | — | 3,847 | 2,098 | — | 5,945 | |||||||||||||||||
Brands | — | — | 4,405 | 535 | — | 4,940 | |||||||||||||||||
Management and franchise contracts, net | — | — | 940 | 277 | — | 1,217 | |||||||||||||||||
Other intangible assets, net | — | — | 428 | 201 | — | 629 | |||||||||||||||||
Deferred income tax assets | 24 | 4 | — | 154 | (28 | ) | 154 | ||||||||||||||||
Other | — | 78 | 132 | 148 | — | 358 | |||||||||||||||||
Total property, intangibles and other assets | 5,308 | 11,490 | 15,629 | 12,949 | (21,826 | ) | 23,550 | ||||||||||||||||
TOTAL ASSETS | $ | 5,308 | $ | 11,490 | $ | 17,086 | $ | 14,053 | $ | (21,886 | ) | $ | 26,051 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | — | $ | 39 | $ | 1,509 | $ | 721 | $ | (9 | ) | $ | 2,260 | ||||||||||
Intercompany payables | — | — | — | 28 | (28 | ) | — | ||||||||||||||||
Current maturities of long-term debt | — | — | — | 10 | — | 10 | |||||||||||||||||
Current maturities of non-recourse debt | — | — | — | 136 | — | 136 | |||||||||||||||||
Income taxes payable | — | — | 3 | 40 | (23 | ) | 20 | ||||||||||||||||
Total current liabilities | — | 39 | 1,512 | 935 | (60 | ) | 2,426 | ||||||||||||||||
Long-term debt | — | 6,155 | 54 | 4,191 | — | 10,400 | |||||||||||||||||
Non-recourse debt | — | — | — | 644 | — | 644 | |||||||||||||||||
Deferred revenues | — | — | 394 | 1 | — | 395 | |||||||||||||||||
Deferred income tax liabilities | — | — | 2,250 | 2,970 | (28 | ) | 5,192 | ||||||||||||||||
Liability for guest loyalty program | — | — | 744 | — | — | 744 | |||||||||||||||||
Other | 203 | 12 | 724 | 242 | — | 1,181 | |||||||||||||||||
Total liabilities | 203 | 6,206 | 5,678 | 8,983 | (88 | ) | 20,982 | ||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Hilton stockholders' equity | 5,105 | 5,284 | 11,408 | 5,106 | (21,798 | ) | 5,105 | ||||||||||||||||
Noncontrolling interests | — | — | — | (36 | ) | — | (36 | ) | |||||||||||||||
Total equity | 5,105 | 5,284 | 11,408 | 5,070 | (21,798 | ) | 5,069 | ||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 5,308 | $ | 11,490 | $ | 17,086 | $ | 14,053 | $ | (21,886 | ) | $ | 26,051 |
December 31, 2014 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 270 | $ | 296 | $ | — | $ | 566 | |||||||||||
Restricted cash and cash equivalents | — | — | 135 | 67 | — | 202 | |||||||||||||||||
Accounts receivable, net | — | — | 478 | 366 | — | 844 | |||||||||||||||||
Intercompany receivables | — | — | 46 | — | (46 | ) | — | ||||||||||||||||
Inventories | — | — | 380 | 24 | — | 404 | |||||||||||||||||
Deferred income tax assets | — | — | 10 | 10 | — | 20 | |||||||||||||||||
Current portion of financing receivables, net | — | — | 47 | 19 | — | 66 | |||||||||||||||||
Current portion of securitized financing receivables, net | — | — | — | 62 | — | 62 | |||||||||||||||||
Prepaid expenses | — | — | 29 | 124 | (20 | ) | 133 | ||||||||||||||||
Income taxes receivable | — | — | 154 | — | (22 | ) | 132 | ||||||||||||||||
Other | — | — | 5 | 65 | — | 70 | |||||||||||||||||
Total current assets | — | — | 1,554 | 1,033 | (88 | ) | 2,499 | ||||||||||||||||
Property, Intangibles and Other Assets: | |||||||||||||||||||||||
Property and equipment, net | — | — | 305 | 7,178 | — | 7,483 | |||||||||||||||||
Property and equipment, net held for sale | — | — | — | 1,543 | — | 1,543 | |||||||||||||||||
Financing receivables, net | — | — | 272 | 144 | — | 416 | |||||||||||||||||
Securitized financing receivables, net | — | — | — | 406 | — | 406 | |||||||||||||||||
Investments in affiliates | — | — | 123 | 47 | — | 170 | |||||||||||||||||
Investments in subsidiaries | 4,924 | 11,361 | 4,935 | — | (21,220 | ) | — | ||||||||||||||||
Goodwill | — | — | 3,847 | 2,307 | — | 6,154 | |||||||||||||||||
Brands | — | — | 4,405 | 558 | — | 4,963 | |||||||||||||||||
Management and franchise contracts, net | — | — | 1,007 | 299 | — | 1,306 | |||||||||||||||||
Other intangible assets, net | — | — | 466 | 208 | — | 674 | |||||||||||||||||
Deferred income tax assets | 22 | 1 | — | 155 | (23 | ) | 155 | ||||||||||||||||
Other | — | 85 | 119 | 152 | — | 356 | |||||||||||||||||
Total property, intangibles and other assets | 4,946 | 11,447 | 15,479 | 12,997 | (21,243 | ) | 23,626 | ||||||||||||||||
TOTAL ASSETS | $ | 4,946 | $ | 11,447 | $ | 17,033 | $ | 14,030 | $ | (21,331 | ) | $ | 26,125 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | — | $ | 40 | $ | 1,384 | $ | 695 | $ | (20 | ) | $ | 2,099 | ||||||||||
Intercompany payables | — | — | — | 46 | (46 | ) | — | ||||||||||||||||
Current maturities of long-term debt | — | — | — | 10 | — | 10 | |||||||||||||||||
Current maturities of non-recourse debt | — | — | — | 127 | — | 127 | |||||||||||||||||
Income taxes payable | — | — | 5 | 38 | (22 | ) | 21 | ||||||||||||||||
Total current liabilities | — | 40 | 1,389 | 916 | (88 | ) | 2,257 | ||||||||||||||||
Long-term debt | — | 6,479 | 54 | 4,270 | — | 10,803 | |||||||||||||||||
Non-recourse debt | — | — | — | 752 | — | 752 | |||||||||||||||||
Deferred revenues | — | — | 493 | 2 | — | 495 | |||||||||||||||||
Deferred income tax liabilities | — | — | 2,306 | 2,933 | (23 | ) | 5,216 | ||||||||||||||||
Liability for guest loyalty program | — | — | 720 | — | — | 720 | |||||||||||||||||
Other | 194 | 4 | 710 | 260 | — | 1,168 | |||||||||||||||||
Total liabilities | 194 | 6,523 | 5,672 | 9,133 | (111 | ) | 21,411 | ||||||||||||||||
Equity: | |||||||||||||||||||||||
Total Hilton stockholders' equity | 4,752 | 4,924 | 11,361 | 4,935 | (21,220 | ) | 4,752 | ||||||||||||||||
Noncontrolling interests | — | — | — | (38 | ) | — | (38 | ) | |||||||||||||||
Total equity | 4,752 | 4,924 | 11,361 | 4,897 | (21,220 | ) | 4,714 | ||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 4,946 | $ | 11,447 | $ | 17,033 | $ | 14,030 | $ | (21,331 | ) | $ | 26,125 |
Three Months Ended June 30, 2015 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Owned and leased hotels | $ | — | $ | — | $ | 61 | $ | 1,079 | $ | (5 | ) | $ | 1,135 | ||||||||||
Management and franchise fees and other | — | — | 349 | 83 | (25 | ) | 407 | ||||||||||||||||
Timeshare | — | — | 298 | 21 | — | 319 | |||||||||||||||||
— | — | 708 | 1,183 | (30 | ) | 1,861 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 1,169 | 124 | (232 | ) | 1,061 | ||||||||||||||||
Total revenues | — | — | 1,877 | 1,307 | (262 | ) | 2,922 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | 41 | 799 | (23 | ) | 817 | ||||||||||||||||
Timeshare | — | — | 221 | 4 | (5 | ) | 220 | ||||||||||||||||
Depreciation and amortization | — | — | 81 | 92 | — | 173 | |||||||||||||||||
General, administrative and other | — | — | 194 | 29 | (2 | ) | 221 | ||||||||||||||||
— | — | 537 | 924 | (30 | ) | 1,431 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 1,169 | 124 | (232 | ) | 1,061 | ||||||||||||||||
Total expenses | — | — | 1,706 | 1,048 | (262 | ) | 2,492 | ||||||||||||||||
Gain (loss) on sales of assets, net | — | — | 1 | (4 | ) | — | (3 | ) | |||||||||||||||
Operating income | — | — | 172 | 255 | — | 427 | |||||||||||||||||
Interest income | — | — | 1 | 1 | — | 2 | |||||||||||||||||
Interest expense | — | (71 | ) | (15 | ) | (63 | ) | — | (149 | ) | |||||||||||||
Equity in earnings from unconsolidated affiliates | — | — | 8 | 1 | — | 9 | |||||||||||||||||
Gain (loss) on foreign currency transactions | — | — | (323 | ) | 328 | — | 5 | ||||||||||||||||
Other gain, net | — | — | — | 18 | — | 18 | |||||||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries | — | (71 | ) | (157 | ) | 540 | — | 312 | |||||||||||||||
Income tax benefit (expense) | (4 | ) | 27 | 53 | (221 | ) | — | (145 | ) | ||||||||||||||
Income (loss) before equity in earnings from subsidiaries | (4 | ) | (44 | ) | (104 | ) | 319 | — | 167 | ||||||||||||||
Equity in earnings from subsidiaries | 165 | 209 | 313 | — | (687 | ) | — | ||||||||||||||||
Net income | 161 | 165 | 209 | 319 | (687 | ) | 167 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 161 | $ | 165 | $ | 209 | $ | 313 | $ | (687 | ) | $ | 161 | ||||||||||
Comprehensive income | $ | 356 | $ | 167 | $ | 240 | $ | 481 | $ | (882 | ) | $ | 362 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 356 | $ | 167 | $ | 240 | $ | 475 | $ | (882 | ) | $ | 356 |
Three Months Ended June 30, 2014 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Owned and leased hotels | $ | — | $ | — | $ | 55 | $ | 1,068 | $ | (6 | ) | $ | 1,117 | ||||||||||
Management and franchise fees and other | — | — | 306 | 79 | (31 | ) | 354 | ||||||||||||||||
Timeshare | — | — | 250 | 26 | — | 276 | |||||||||||||||||
— | — | 611 | 1,173 | (37 | ) | 1,747 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 1,030 | 102 | (212 | ) | 920 | ||||||||||||||||
Total revenues | — | — | 1,641 | 1,275 | (249 | ) | 2,667 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | 39 | 813 | (19 | ) | 833 | ||||||||||||||||
Timeshare | — | — | 200 | 4 | (16 | ) | 188 | ||||||||||||||||
Depreciation and amortization | — | — | 77 | 81 | — | 158 | |||||||||||||||||
General, administrative and other | — | — | 103 | 32 | (2 | ) | 133 | ||||||||||||||||
— | — | 419 | 930 | (37 | ) | 1,312 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 1,030 | 102 | (212 | ) | 920 | ||||||||||||||||
Total expenses | — | — | 1,449 | 1,032 | (249 | ) | 2,232 | ||||||||||||||||
Operating income | — | — | 192 | 243 | — | 435 | |||||||||||||||||
Interest income | — | — | 3 | 2 | — | 5 | |||||||||||||||||
Interest expense | — | (86 | ) | (15 | ) | (57 | ) | — | (158 | ) | |||||||||||||
Equity in earnings from unconsolidated affiliates | — | — | 7 | 1 | — | 8 | |||||||||||||||||
Gain (loss) on foreign currency transactions | — | — | 37 | (5 | ) | — | 32 | ||||||||||||||||
Other gain, net | — | — | 3 | 8 | — | 11 | |||||||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries | — | (86 | ) | 227 | 192 | — | 333 | ||||||||||||||||
Income tax benefit (expense) | — | 33 | (95 | ) | (59 | ) | — | (121 | ) | ||||||||||||||
Income (loss) before equity in earnings from subsidiaries | — | (53 | ) | 132 | 133 | — | 212 | ||||||||||||||||
Equity in earnings from subsidiaries | 209 | 262 | 130 | — | (601 | ) | — | ||||||||||||||||
Net income | 209 | 209 | 262 | 133 | (601 | ) | 212 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 209 | $ | 209 | $ | 262 | $ | 130 | $ | (601 | ) | $ | 209 | ||||||||||
Comprehensive income | $ | 259 | $ | 203 | $ | 225 | $ | 226 | $ | (651 | ) | $ | 262 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 259 | $ | 203 | $ | 225 | $ | 223 | $ | (651 | ) | $ | 259 |
Six Months Ended June 30, 2015 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Owned and leased hotels | $ | — | $ | — | $ | 113 | $ | 1,991 | $ | (12 | ) | $ | 2,092 | ||||||||||
Management and franchise fees and other | — | — | 671 | 157 | (50 | ) | 778 | ||||||||||||||||
Timeshare | — | — | 597 | 43 | — | 640 | |||||||||||||||||
— | — | 1,381 | 2,191 | (62 | ) | 3,510 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 2,250 | 229 | (468 | ) | 2,011 | ||||||||||||||||
Total revenues | — | — | 3,631 | 2,420 | (530 | ) | 5,521 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | 82 | 1,548 | (45 | ) | 1,585 | ||||||||||||||||
Timeshare | — | — | 457 | 8 | (11 | ) | 454 | ||||||||||||||||
Depreciation and amortization | — | — | 173 | 175 | — | 348 | |||||||||||||||||
General, administrative and other | — | — | 288 | 66 | (6 | ) | 348 | ||||||||||||||||
— | — | 1,000 | 1,797 | (62 | ) | 2,735 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 2,250 | 229 | (468 | ) | 2,011 | ||||||||||||||||
Total expenses | — | — | 3,250 | 2,026 | (530 | ) | 4,746 | ||||||||||||||||
Gain on sales of assets, net | — | — | — | 142 | — | 142 | |||||||||||||||||
Operating income | — | — | 381 | 536 | — | 917 | |||||||||||||||||
Interest income | — | — | 7 | 1 | — | 8 | |||||||||||||||||
Interest expense | — | (144 | ) | (28 | ) | (121 | ) | — | (293 | ) | |||||||||||||
Equity in earnings from unconsolidated affiliates | — | — | 11 | 2 | — | 13 | |||||||||||||||||
Gain (loss) on foreign currency transactions | — | — | (140 | ) | 127 | — | (13 | ) | |||||||||||||||
Other loss, net | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries | — | (144 | ) | 231 | 538 | — | 625 | ||||||||||||||||
Income tax benefit (expense) | (5 | ) | 55 | (99 | ) | (259 | ) | — | (308 | ) | |||||||||||||
Income (loss) before equity in earnings from subsidiaries | (5 | ) | (89 | ) | 132 | 279 | — | 317 | |||||||||||||||
Equity in earnings from subsidiaries | 316 | 405 | 273 | — | (994 | ) | — | ||||||||||||||||
Net income | 311 | 316 | 405 | 279 | (994 | ) | 317 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 311 | $ | 316 | $ | 405 | $ | 273 | $ | (994 | ) | $ | 311 | ||||||||||
Comprehensive income | $ | 266 | $ | 311 | $ | 408 | $ | 236 | $ | (949 | ) | $ | 272 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 266 | $ | 311 | $ | 408 | $ | 230 | $ | (949 | ) | $ | 266 |
Six Months Ended June 30, 2014 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Owned and leased hotels | $ | — | $ | — | $ | 103 | $ | 1,973 | $ | (14 | ) | $ | 2,062 | ||||||||||
Management and franchise fees and other | — | — | 574 | 155 | (63 | ) | 666 | ||||||||||||||||
Timeshare | — | — | 506 | 49 | — | 555 | |||||||||||||||||
— | — | 1,183 | 2,177 | (77 | ) | 3,283 | |||||||||||||||||
Other revenues from managed and franchised properties | — | — | 1,977 | 193 | (423 | ) | 1,747 | ||||||||||||||||
Total revenues | — | — | 3,160 | 2,370 | (500 | ) | 5,030 | ||||||||||||||||
Expenses | |||||||||||||||||||||||
Owned and leased hotels | — | — | 75 | 1,567 | (38 | ) | 1,604 | ||||||||||||||||
Timeshare | — | — | 390 | 9 | (34 | ) | 365 | ||||||||||||||||
Depreciation and amortization | — | — | 150 | 161 | — | 311 | |||||||||||||||||
General, administrative and other | — | — | 181 | 54 | (5 | ) | 230 | ||||||||||||||||
— | — | 796 | 1,791 | (77 | ) | 2,510 | |||||||||||||||||
Other expenses from managed and franchised properties | — | — | 1,977 | 193 | (423 | ) | 1,747 | ||||||||||||||||
Total expenses | — | — | 2,773 | 1,984 | (500 | ) | 4,257 | ||||||||||||||||
Operating income | — | — | 387 | 386 | — | 773 | |||||||||||||||||
Interest income | — | — | 4 | 2 | — | 6 | |||||||||||||||||
Interest expense | — | (172 | ) | (27 | ) | (112 | ) | — | (311 | ) | |||||||||||||
Equity in earnings from unconsolidated affiliates | — | — | 10 | 2 | — | 12 | |||||||||||||||||
Gain on foreign currency transactions | — | — | 43 | 3 | — | 46 | |||||||||||||||||
Other gain, net | — | — | 6 | 8 | — | 14 | |||||||||||||||||
Income (loss) before income taxes and equity in earnings from subsidiaries | — | (172 | ) | 423 | 289 | — | 540 | ||||||||||||||||
Income tax benefit (expense) | (4 | ) | 66 | (167 | ) | (99 | ) | — | (204 | ) | |||||||||||||
Income (loss) before equity in earnings from subsidiaries | (4 | ) | (106 | ) | 256 | 190 | — | 336 | |||||||||||||||
Equity in earnings from subsidiaries | 336 | 442 | 186 | — | (964 | ) | — | ||||||||||||||||
Net income | 332 | 336 | 442 | 190 | (964 | ) | 336 | ||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||
Net income attributable to Hilton stockholders | $ | 332 | $ | 336 | $ | 442 | $ | 186 | $ | (964 | ) | $ | 332 | ||||||||||
Comprehensive income | $ | 410 | $ | 327 | $ | 415 | $ | 302 | $ | (1,042 | ) | $ | 412 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||
Comprehensive income attributable to Hilton stockholders | $ | 410 | $ | 327 | $ | 415 | $ | 300 | $ | (1,042 | ) | $ | 410 |
Six Months Ended June 30, 2015 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | — | $ | 300 | $ | 416 | $ | (68 | ) | $ | 648 | ||||||||||
Investing Activities: | |||||||||||||||||||||||
Capital expenditures for property and equipment | — | — | (14 | ) | (145 | ) | — | (159 | ) | ||||||||||||||
Acquisitions, net of cash acquired | — | — | — | (1,410 | ) | — | (1,410 | ) | |||||||||||||||
Payments received on other financing receivables | — | — | 1 | 1 | — | 2 | |||||||||||||||||
Issuance of other financing receivables | — | — | (4 | ) | (2 | ) | — | (6 | ) | ||||||||||||||
Investments in affiliates | — | — | (5 | ) | — | — | (5 | ) | |||||||||||||||
Distributions from unconsolidated affiliates | — | — | 9 | — | — | 9 | |||||||||||||||||
Issuance of intercompany receivables | — | — | (184 | ) | — | 184 | — | ||||||||||||||||
Payments received on intercompany receivables | — | — | 184 | — | (184 | ) | — | ||||||||||||||||
Proceeds from asset dispositions | — | — | — | 1,869 | — | 1,869 | |||||||||||||||||
Contract acquisition costs | — | — | (11 | ) | (8 | ) | — | (19 | ) | ||||||||||||||
Software capitalization costs | — | — | (23 | ) | — | — | (23 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | — | — | (47 | ) | 305 | — | 258 | ||||||||||||||||
Financing Activities: | |||||||||||||||||||||||
Borrowings | — | — | — | 34 | — | 34 | |||||||||||||||||
Repayment of debt | — | (325 | ) | — | (636 | ) | — | (961 | ) | ||||||||||||||
Intercompany borrowings | — | — | — | 184 | (184 | ) | — | ||||||||||||||||
Repayment of intercompany borrowings | — | — | — | (184 | ) | 184 | — | ||||||||||||||||
Change in restricted cash and cash equivalents | — | — | — | (29 | ) | — | (29 | ) | |||||||||||||||
Intercompany transfers | — | 325 | (334 | ) | 9 | — | — | ||||||||||||||||
Dividends paid to Guarantors | — | — | — | (68 | ) | 68 | — | ||||||||||||||||
Distributions to noncontrolling interests | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||||
Excess tax benefits from share-based compensation | — | — | 8 | — | — | 8 | |||||||||||||||||
Net cash used in financing activities | — | — | (326 | ) | (694 | ) | 68 | (952 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (9 | ) | — | (9 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | — | (73 | ) | 18 | — | (55 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 270 | 296 | — | 566 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 197 | $ | 314 | $ | — | $ | 511 |
Six Months Ended June 30, 2014 | |||||||||||||||||||||||
Parent | Subsidiary Issuers | Guarantors | Non-Guarantors | Eliminations | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | — | $ | 506 | $ | 163 | $ | (157 | ) | $ | 512 | ||||||||||
Investing Activities: | |||||||||||||||||||||||
Capital expenditures for property and equipment | — | — | (6 | ) | (104 | ) | — | (110 | ) | ||||||||||||||
Payments received on other financing receivables | — | — | 1 | 1 | — | 2 | |||||||||||||||||
Issuance of other financing receivables | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Investments in affiliates | — | — | (5 | ) | — | — | (5 | ) | |||||||||||||||
Distributions from unconsolidated affiliates | — | — | 11 | — | — | 11 | |||||||||||||||||
Proceeds from asset dispositions | — | — | 4 | 31 | — | 35 | |||||||||||||||||
Contract acquisition costs | — | — | (3 | ) | (18 | ) | — | (21 | ) | ||||||||||||||
Software capitalization costs | — | — | (32 | ) | — | — | (32 | ) | |||||||||||||||
Net cash used in investing activities | — | — | (30 | ) | (91 | ) | — | (121 | ) | ||||||||||||||
Financing Activities: | |||||||||||||||||||||||
Borrowings | — | — | — | 350 | — | 350 | |||||||||||||||||
Repayment of debt | — | (450 | ) | — | (333 | ) | — | (783 | ) | ||||||||||||||
Debt issuance costs | — | (1 | ) | — | (1 | ) | — | (2 | ) | ||||||||||||||
Change in restricted cash and cash equivalents | — | — | — | (17 | ) | — | (17 | ) | |||||||||||||||
Intercompany transfers | — | 451 | (513 | ) | 62 | — | — | ||||||||||||||||
Dividends paid to Guarantors | — | — | — | (157 | ) | 157 | — | ||||||||||||||||
Capital contribution | — | — | — | 13 | — | 13 | |||||||||||||||||
Distributions to noncontrolling interests | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||
Net cash used in financing activities | — | — | (513 | ) | (85 | ) | 157 | (441 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 1 | — | 1 | |||||||||||||||||
Net decrease in cash and cash equivalents | — | — | (37 | ) | (12 | ) | — | (49 | ) | ||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 329 | 265 | — | 594 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 292 | $ | 253 | $ | — | $ | 545 |
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