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June 30, 2012 | December 31, 2011 | ||||||
Equity method investments | $ | 244 | $ | 207 | |||
Cost method investments | 73 | 73 | |||||
Total investments | $ | 317 | $ | 280 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Total revenues | $ | 251 | $ | 229 | $ | 494 | $ | 468 | |||||||
Gross operating profit | 82 | 71 | 153 | 147 | |||||||||||
Income from continuing operations | 5 | 12 | 3 | 23 | |||||||||||
Net income | 5 | 12 | 3 | 23 |
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June 30, 2012 | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | ||||||||||||
Marketable securities included in short-term investments, prepaids and other assets and other assets | |||||||||||||||
Mutual funds | $ | 259 | $ | 259 | $ | — | $ | — | |||||||
Equity securities | 28 | 28 | — | — | |||||||||||
U.S. government obligations | 105 | — | 105 | — | |||||||||||
U.S. government agencies | 99 | — | 99 | — | |||||||||||
Corporate debt securities | 479 | — | 479 | — | |||||||||||
Mortgage-backed securities | 20 | — | 20 | — | |||||||||||
Asset-backed securities | 8 | — | 8 | — | |||||||||||
Municipal and provincial notes and bonds | 14 | — | 14 | — | |||||||||||
Marketable securities recorded in cash and cash equivalents | |||||||||||||||
Interest bearing money market funds | 103 | 103 | — | — | |||||||||||
Derivative instruments | |||||||||||||||
Interest rate swaps | 6 | — | 6 | — | |||||||||||
Foreign currency forward contracts | (1 | ) | — | (1 | ) | — |
December 31, 2011 | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | ||||||||||||
Marketable securities included in short-term investments, prepaids and other assets and other assets | |||||||||||||||
Mutual funds | $ | 242 | $ | 242 | $ | — | $ | — | |||||||
Equity securities | 35 | 35 | — | — | |||||||||||
U.S. government obligations | 102 | — | 102 | — | |||||||||||
U.S. government agencies | 132 | — | 132 | — | |||||||||||
Corporate debt securities | 487 | — | 487 | — | |||||||||||
Mortgage-backed securities | 23 | — | 21 | 2 | |||||||||||
Asset-backed securities | 7 | — | 7 | — | |||||||||||
Municipal and provincial notes and bonds | 14 | — | 14 | — | |||||||||||
Marketable securities recorded in cash and cash equivalents | |||||||||||||||
Interest bearing money market funds | 60 | 60 | — | — | |||||||||||
Derivative instruments | |||||||||||||||
Interest rate swaps | 7 | — | 7 | — | |||||||||||
Foreign currency forward contracts | (1 | ) | — | (1 | ) | — |
June 30, 2012 | |||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
Corporate debt securities | $ | 383 | $ | 6 | $ | (6 | ) | $ | 383 | ||||||
U.S. government agencies and municipalities | 61 | — | — | 61 | |||||||||||
Equity securities | 9 | — | (1 | ) | 8 | ||||||||||
Total | $ | 453 | $ | 6 | $ | (7 | ) | $ | 452 |
December 31, 2011 | |||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
Corporate debt securities | $ | 406 | $ | 5 | $ | (5 | ) | $ | 406 | ||||||
U.S. government agencies and municipalities | 93 | — | — | 93 | |||||||||||
Equity securities | 9 | — | (2 | ) | 7 | ||||||||||
Total | $ | 508 | $ | 5 | $ | (7 | ) | $ | 506 |
June 30, 2012 | |||||||
Contractual Maturity | Cost or Amortized Cost | Fair Value | |||||
Due in one year or less | $ | 269 | $ | 269 | |||
Due in one to two years | 175 | 175 | |||||
Total | $ | 444 | $ | 444 |
Fair Value Measurements at Reporting Date Using Significant Unobservable Inputs (Level 3) - Mortgage Backed Securities | |||||||
2012 | 2011 | ||||||
Balance at January 1, | $ | 2 | $ | 2 | |||
Transfers into (out of) Level Three | — | — | |||||
Settlements | (2 | ) | — | ||||
Total gains (losses) (realized or unrealized) | — | — | |||||
Balance at March 31, | $ | — | $ | 2 | |||
Transfers into (out of) Level Three | — | — | |||||
Settlements | — | — | |||||
Total gains (losses) (realized or unrealized) | — | — | |||||
Balance at June 30, | $ | — | $ | 2 |
Asset (Liability) | |||||||||||||||||||
June 30, 2012 | |||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | |||||||||||||||
Financing receivables | |||||||||||||||||||
Secured financing to hotel owners | $ | 312 | $ | 311 | $ | — | $ | — | $ | 311 | |||||||||
Vacation ownership mortgage receivable | 41 | 42 | — | — | 42 | ||||||||||||||
Unsecured financing to hotel owners | 68 | 68 | — | — | 68 | ||||||||||||||
Debt, excluding capital lease obligations | (1,008 | ) | (1,122 | ) | — | (1,122 | ) | — |
Asset (Liability) | |||||||||||||||||||
December 31, 2011 | |||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | |||||||||||||||
Financing receivables | |||||||||||||||||||
Secured financing to hotel owners | $ | 312 | $ | 311 | $ | — | $ | — | $ | 311 | |||||||||
Vacation ownership mortgage receivable | 42 | 42 | — | — | 42 | ||||||||||||||
Unsecured financing to hotel owners | 16 | 15 | — | — | 15 | ||||||||||||||
Debt, excluding capital lease obligations | (1,008 | ) | (1,059 | ) | — | (1,059 | ) | — |
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• | Secured Financing to Hotel Owners—These financing receivables are senior secured mortgage loans and are collateralized by underlying hotel properties currently in operation. These loans consist primarily of a $278 million mortgage loan receivable to an unconsolidated hospitality venture which was formed to acquire ownership of a hotel property in Waikiki, Hawaii, and which is accounted for under the equity method. This mortgage receivable has interest set at 30-day LIBOR+3.75% due monthly and a stated maturity date of July 2013. Secured financing to hotel owners also includes financing provided to certain franchisees for the renovations and conversion of certain franchised hotels. These franchisee loans accrue interest at fixed rates ranging between 5.5% and 6.0%. |
• | Vacation Ownership Mortgage Receivables—These financing receivables are comprised of various mortgage loans related to our financing of vacation ownership interval sales. As of June 30, 2012, the weighted-average interest rate on vacation ownership mortgage receivables was 13.9%. |
• | Unsecured Financing to Hotel Owners—These financing receivables are primarily made up of individual unsecured loans and other types of financing arrangements provided to hotel owners. During the quarter ended June 30, 2012, we entered into a loan agreement to provide a $50 million mezzanine loan for the construction of a hotel that we will manage. Under the loan agreement, interest accrues at the greater of one-month LIBOR plus 5.0%, or 6.5%. Our other financing receivables have stated maturities and interest rates, however, the expected repayment terms may be dependent on the future cash flows of the hotel and, therefore, are not considered loans as the repayment date is not fixed or determinable. Because these arrangements are not considered loans, we do not include them in our impaired loans analysis. Since these receivables may come due earlier than the stated maturity date, the expected maturity dates have been excluded from the maturities table below. |
June 30, 2012 | December 31, 2011 | ||||||
Secured financing to hotel owners | $ | 319 | $ | 319 | |||
Vacation ownership mortgage receivables at various interest rates with varying payments through 2022 | 49 | 50 | |||||
Unsecured financing to hotel owners | 144 | 91 | |||||
512 | 460 | ||||||
Less allowance for losses | (91 | ) | (90 | ) | |||
Less current portion included in receivables, net | (11 | ) | (10 | ) | |||
Total long-term financing receivables | $ | 410 | $ | 360 |
Year Ending December 31, | Secured Financing to Hotel Owners | Vacation Ownership Mortgage Receivables | |||||
2012 | $ | 1 | $ | 3 | |||
2013 | 278 | 7 | |||||
2014 | — | 8 | |||||
2015 | 40 | 8 | |||||
2016 | — | 7 | |||||
2017 | — | 5 | |||||
Thereafter | — | 11 | |||||
Total | 319 | 49 | |||||
Less allowance | (7 | ) | (8 | ) | |||
Net financing receivables | $ | 312 | $ | 41 |
Secured Financing | Vacation Ownership | Unsecured Financing | Total | ||||||||||||
Allowance at January 1, 2012 | $ | 7 | $ | 8 | $ | 75 | $ | 90 | |||||||
Provisions | — | 1 | 3 | 4 | |||||||||||
Write-offs | — | (1 | ) | (3 | ) | (4 | ) | ||||||||
Recoveries | — | — | — | — | |||||||||||
Allowance at March 31, 2012 | $ | 7 | $ | 8 | $ | 75 | $ | 90 | |||||||
Provisions | — | 2 | 3 | 5 | |||||||||||
Write-offs | — | (2 | ) | — | (2 | ) | |||||||||
Recoveries | — | — | (2 | ) | (2 | ) | |||||||||
Allowance at June 30, 2012 | $ | 7 | $ | 8 | $ | 76 | $ | 91 |
Secured Financing | Vacation Ownership | Unsecured Financing | Total | ||||||||||||
Allowance at January 1, 2011 | $ | 4 | $ | 10 | $ | 68 | $ | 82 | |||||||
Provisions | — | 1 | 1 | 2 | |||||||||||
Other Adjustments | — | — | 1 | 1 | |||||||||||
Write-offs | (1 | ) | (1 | ) | — | (2 | ) | ||||||||
Recoveries | — | — | — | — | |||||||||||
Allowance at March 31, 2011 | $ | 3 | $ | 10 | $ | 70 | $ | 83 | |||||||
Provisions | — | — | 2 | 2 | |||||||||||
Other Adjustments | — | — | — | — | |||||||||||
Write-offs | — | (1 | ) | — | (1 | ) | |||||||||
Recoveries | — | — | — | — | |||||||||||
Allowance at June 30, 2011 | $ | 3 | $ | 9 | $ | 72 | $ | 84 |
Impaired Loans | |||||||||||||||
June 30, 2012 | |||||||||||||||
Gross Loan Balance (Principal and Interest) | Unpaid Principal Balance | Related Allowance | Average Recorded Loan Balance | ||||||||||||
Secured financing to hotel owners | $ | 40 | $ | 40 | $ | (7 | ) | $ | 40 | ||||||
Unsecured financing to hotel owners | 51 | 46 | (47 | ) | 50 |
Impaired Loans | |||||||||||||||
December 31, 2011 | |||||||||||||||
Gross Loan Balance (Principal and Interest) | Unpaid Principal Balance | Related Allowance | Average Recorded Loan Balance | ||||||||||||
Secured financing to hotel owners | $ | 41 | $ | 40 | $ | (7 | ) | $ | 40 | ||||||
Unsecured financing to hotel owners | 51 | 46 | (46 | ) | 51 |
Interest Income | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Secured financing to hotel owners | $ | — | $ | — | $ | 1 | $ | 1 | |||||||
Unsecured financing to hotel owners | — | — | — | — |
• | Past-due Receivables—We determine financing receivables to be past-due based on the contractual terms of each individual financing receivable agreement. |
• | Non-Performing Receivables—Receivables are determined to be non-performing based upon the following criteria: (1) if interest or principal is greater than 90 days past due for secured financing to hotel owners and unsecured financing to hotel owners; (2) 120 days past due for vacation ownership mortgage receivables; (3) if an impairment charge has been recorded for a loan or a provision established for our other financing arrangements. For the three and six months ended June 30, 2012 and 2011, no interest income was accrued for secured financing to hotel owners and unsecured financing to hotel owners greater than 90 days past due and for vacation ownership receivables greater than 120 days past due. For the three and six months ended June 30, 2012 and 2011, insignificant interest income was accrued for vacation ownership receivables greater than 90 days and less than 120 days. |
Analysis of Financing Receivables | |||||||||||
June 30, 2012 | |||||||||||
Receivables Past Due | Greater than 90 Days Past Due | Receivables on Non-Accrual Status | |||||||||
Secured financing to hotel owners | $ | — | $ | — | $ | 41 | |||||
Vacation ownership mortgage receivables | 2 | — | — | ||||||||
Unsecured financing to hotel owners * | 3 | 3 | 77 | ||||||||
Total | $ | 5 | $ | 3 | $ | 118 |
Analysis of Financing Receivables | |||||||||||
December 31, 2011 | |||||||||||
Receivables Past Due | Greater than 90 Days Past Due | Receivables on Non-Accrual Status | |||||||||
Secured financing to hotel owners | $ | — | $ | — | $ | 41 | |||||
Vacation ownership mortgage receivables | 3 | — | — | ||||||||
Unsecured financing to hotel owners * | 6 | 6 | 76 | ||||||||
Total | $ | 9 | $ | 6 | $ | 117 |
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Cash and cash equivalents | $ | 11 | |
Other current assets | 3 | ||
Land, property, and equipment | 190 | ||
Intangibles | 12 | ||
Total assets | 216 | ||
Current liabilities | 3 | ||
Other long-term liabilities | 42 | ||
Total liabilities | 45 | ||
Total net assets acquired | $ | 171 |
Hyatt Regency Mexico City's operations included in 2012 results | |||
Revenues | $ | 5 | |
Income from continuing operations | 1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Pro forma revenues | $ | 1,020 | $ | 948 | $ | 1,990 | $ | 1,833 | |||||||
Pro forma income from continuing operations | 41 | 39 | 53 | 48 |
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June 30, 2012 | Weighted Average Useful Lives (in years) | December 31, 2011 | |||||||
Contract acquisition costs | $ | 181 | 23 | $ | 167 | ||||
Acquired lease rights | 135 | 112 | 133 | ||||||
Franchise and management intangibles | 125 | 25 | 115 | ||||||
Other | 9 | 10 | 7 | ||||||
450 | 422 | ||||||||
Accumulated amortization | (74 | ) | (63 | ) | |||||
Intangibles, net | $ | 376 | $ | 359 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Amortization expense | $ | 7 | $ | 5 | $ | 12 | $ | 8 |
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June 30, 2012 | December 31, 2011 | ||||||
Pound Sterling | $ | 152 | $ | 126 | |||
Swiss Franc | 46 | 59 | |||||
Korean Won | 33 | 33 | |||||
Canadian Dollar | 27 | 27 | |||||
Total notional amount of forward contracts | $ | 258 | $ | 245 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Balance Sheet Location | June 30, 2012 | December 31, 2011 | Balance Sheet Location | June 30, 2012 | December 31, 2011 | ||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||
Interest rate swaps | Other assets | $ | 6 | $ | 7 | Other long-term liabilities | $ | — | $ | — | |||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Foreign currency forward contracts | Prepaids and other assets | — | — | Accrued expenses and other current liabilities | 1 | 1 | |||||||||||||
Total derivatives | $ | 6 | $ | 7 | $ | 1 | $ | 1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Location of Gain (Loss) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Fair value hedges: | |||||||||||||||||
Interest rate swaps | |||||||||||||||||
Gains (losses) on derivatives | Other income (loss), net* | $ | 1 | $ | 2 | $ | 1 | $ | 1 | ||||||||
Gains (losses) on borrowings | Other income (loss), net* | (1 | ) | (2 | ) | (1 | ) | (1 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Location of Gain (Loss) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Cash flow hedges: | |||||||||||||||||
Interest rate locks | |||||||||||||||||
Amount of gain (loss) recognized in accumulated other comprehensive income (loss) on derivative (effective portion) | Accumulated other comprehensive loss | $ | — | $ | 4 | $ | — | $ | 4 | ||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | Interest expense | — | — | — | — | ||||||||||||
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Other income (loss), net** | — | — | — | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Location of Gain (Loss) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||
Foreign currency forward contracts | Other income (loss), net | $ | 4 | $ | (6 | ) | $ | (2 | ) | $ | (8 | ) |
* | For the three and six months ended June 30, 2012 and 2011, there was an insignificant loss recognized in income related to the ineffective portion of these hedges. No amounts were excluded from the assessment of hedge effectiveness for the three and six months ended June 30, 2012 and 2011. |
** | For the three and six months ended June 30, 2011, there was an insignificant gain recognized in income related to the ineffective portion of these hedges. No incremental amounts were excluded from the assessment of hedge effectiveness for the three and six months ended June 30, 2011. |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Defined benefit plan | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||
Defined contribution plans | 9 | 8 | 18 | 17 | |||||||||||
Deferred compensation plan | 1 | 1 | 5 | 4 |
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• | Our share of a hospitality venture’s commitment to purchase a hotel within a to-be constructed building in New York City for a total purchase price of $375 million. The hospitality venture will be funded upon the purchase of the hotel, and our share of the purchase price commitment is 66.67% (or approximately $250 million). In accordance with the purchase agreement, we have agreed to fund a $50 million letter of credit as security towards this future purchase obligation. The agreement stipulates that the purchase of the completed property is contingent upon the completion of certain contractual milestones. The $50 million funded letter of credit is included as part of our total letters of credit outstanding at June 30, 2012, and therefore netted against our future commitments amount disclosed above. For further discussion, see the “Letters of Credit” section of this footnote below. |
• | Our commitment to develop, own and operate a hotel property in the State of Hawaii through a joint venture formed in 2010. The expected remaining commitment under the joint venture agreement at June 30, 2012, is $81 million. |
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Stockholders’ equity | Noncontrolling interests in consolidated subsidiaries | Total equity | |||||||||
Balance at January 1, 2012 | $ | 4,818 | $ | 10 | $ | 4,828 | |||||
Net income (loss) | 49 | — | 49 | ||||||||
Other comprehensive income (loss) | (4 | ) | — | (4 | ) | ||||||
Issuance of common stock shares to directors | 1 | — | 1 | ||||||||
Share based payment activity | 9 | — | 9 | ||||||||
Balance at June 30, 2012 | $ | 4,873 | $ | 10 | $ | 4,883 | |||||
Balance at January 1, 2011 | $ | 5,118 | $ | 13 | $ | 5,131 | |||||
Net income (loss) | 47 | (1 | ) | 46 | |||||||
Other comprehensive income (loss) | 40 | — | 40 | ||||||||
Purchase of company stock | (396 | ) | — | (396 | ) | ||||||
Issuance of common stock shares to directors | 1 | — | 1 | ||||||||
Share based payment activity | 12 | — | 12 | ||||||||
Balance at June 30, 2011 | $ | 4,822 | $ | 12 | $ | 4,834 |
Balance at January 1, 2012 | Current period other comprehensive income (loss) | Balance at June 30, 2012 | |||||||||
Foreign currency translation adjustments | $ | (64 | ) | $ | (5 | ) | $ | (69 | ) | ||
Unrealized gain (loss) on AFS securities | (2 | ) | 1 | (1 | ) | ||||||
Unrecognized pension cost | (6 | ) | — | (6 | ) | ||||||
Unrealized gain (loss) on derivative instruments | (8 | ) | — | (8 | ) | ||||||
Accumulated Other Comprehensive Income (Loss) | $ | (80 | ) | $ | (4 | ) | $ | (84 | ) | ||
Balance at January 1, 2011 | Current period other comprehensive income (loss) | Balance at June 30, 2011 | |||||||||
Foreign currency translation adjustments | $ | (33 | ) | $ | 38 | $ | 5 | ||||
Unrealized gain (loss) on AFS securities | — | — | — | ||||||||
Unrecognized pension cost | (5 | ) | — | (5 | ) | ||||||
Unrealized gain (loss) on derivative instruments | — | 2 | 2 | ||||||||
Accumulated Other Comprehensive Income (Loss) | $ | (38 | ) | $ | 40 | $ | 2 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Stock appreciation rights | $ | 2 | $ | 2 | $ | 4 | $ | 4 | |||||||
Restricted stock units | 3 | 3 | 6 | 6 | |||||||||||
Performance share units and Performance vested restricted stock | — | — | 1 | 1 |
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(in millions) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
North American Management and Franchising | |||||||||||||||
Revenues | $ | 433 | $ | 397 | $ | 864 | $ | 789 | |||||||
Intersegment Revenues (a) | 22 | 15 | 40 | 29 | |||||||||||
Adjusted EBITDA | 54 | 44 | 100 | 84 | |||||||||||
Depreciation and Amortization | 5 | 3 | 9 | 6 | |||||||||||
International Management and Franchising | |||||||||||||||
Revenues | 55 | 54 | 110 | 105 | |||||||||||
Intersegment Revenues (a) | 4 | 5 | 8 | 9 | |||||||||||
Adjusted EBITDA | 24 | 22 | 44 | 42 | |||||||||||
Depreciation and Amortization | 1 | 1 | 1 | 1 | |||||||||||
Owned and Leased Hotels (b) | |||||||||||||||
Revenues | 528 | 484 | 1,001 | 916 | |||||||||||
Adjusted EBITDA | 132 | 114 | 225 | 189 | |||||||||||
Depreciation and Amortization | 81 | 66 | 161 | 132 | |||||||||||
Corporate and other | |||||||||||||||
Revenues | 24 | 21 | 45 | 39 | |||||||||||
Adjusted EBITDA | (30 | ) | (29 | ) | (64 | ) | (55 | ) | |||||||
Depreciation and Amortization | 2 | 2 | 4 | 4 | |||||||||||
Eliminations (a) | |||||||||||||||
Revenues | (26 | ) | (20 | ) | (48 | ) | (38 | ) | |||||||
Adjusted EBITDA | — | — | — | — | |||||||||||
Depreciation and Amortization | — | — | — | — | |||||||||||
TOTAL | |||||||||||||||
Revenues | $ | 1,014 | $ | 936 | $ | 1,972 | $ | 1,811 | |||||||
Adjusted EBITDA | 180 | 151 | 305 | 260 | |||||||||||
Depreciation and Amortization | 89 | 72 | 175 | 143 |
(a) | Intersegment revenues are included in the segment revenue totals and eliminated in Eliminations. |
(b) | Assets within the Owned and Leased segment at June 30, 2012, equaled $5,012 million compared to $4,825 million at December 31, 2011. The increase in assets is primarily due to the acquisition of a company that owned a full service hotel in Mexico City, Mexico which we rebranded as the Hyatt Regency Mexico City. Refer to Note 6 for further details. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Adjusted EBITDA | $ | 180 | $ | 151 | $ | 305 | $ | 260 | |||||||
Equity earnings (losses) from unconsolidated hospitality ventures | — | 2 | (1 | ) | 5 | ||||||||||
Asset impairments | — | (1 | ) | — | (1 | ) | |||||||||
Other income (loss), net | 5 | (9 | ) | 17 | (6 | ) | |||||||||
Net loss attributable to noncontrolling interests | — | 1 | — | 1 | |||||||||||
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA | (22 | ) | (22 | ) | (40 | ) | (37 | ) | |||||||
EBITDA | 163 | 122 | 281 | 222 | |||||||||||
Depreciation and amortization | (89 | ) | (72 | ) | (175 | ) | (143 | ) | |||||||
Interest expense | (17 | ) | (14 | ) | (35 | ) | (27 | ) | |||||||
(Provision) benefit for income taxes | (18 | ) | 1 | (22 | ) | (5 | ) | ||||||||
Net income attributable to Hyatt Hotels Corporation | $ | 39 | $ | 37 | $ | 49 | $ | 47 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest income | $ | 6 | $ | 6 | $ | 11 | $ | 11 | |||||||
Gains (losses) on other marketable securities | 9 | (6 | ) | 17 | (7 | ) | |||||||||
Foreign currency losses | (2 | ) | (3 | ) | (2 | ) | (4 | ) | |||||||
Loss on sale of real estate | — | (2 | ) | — | (2 | ) | |||||||||
Realignment costs | (7 | ) | — | (7 | ) | — | |||||||||
Transaction costs | (1 | ) | — | (1 | ) | — | |||||||||
Other | — | (4 | ) | (1 | ) | (4 | ) | ||||||||
Other income (loss), net | $ | 5 | $ | (9 | ) | $ | 17 | $ | (6 | ) |
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• | Past-due Receivables—We determine financing receivables to be past-due based on the contractual terms of each individual financing receivable agreement. |
• | Non-Performing Receivables—Receivables are determined to be non-performing based upon the following criteria: (1) if interest or principal is greater than 90 days past due for secured financing to hotel owners and unsecured financing to hotel owners; (2) 120 days past due for vacation ownership mortgage receivables; (3) if an impairment charge has been recorded for a loan or a provision established for our other financing arrangements. For the three and six months ended June 30, 2012 and 2011, no interest income was accrued for secured financing to hotel owners and unsecured financing to hotel owners greater than 90 days past due and for vacation ownership receivables greater than 120 days past due. For the three and six months ended June 30, 2012 and 2011, insignificant interest income was accrued for vacation ownership receivables greater than 90 days and less than 120 days. |
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June 30, 2012 | December 31, 2011 | ||||||
Equity method investments | $ | 244 | $ | 207 | |||
Cost method investments | 73 | 73 | |||||
Total investments | $ | 317 | $ | 280 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Total revenues | $ | 251 | $ | 229 | $ | 494 | $ | 468 | |||||||
Gross operating profit | 82 | 71 | 153 | 147 | |||||||||||
Income from continuing operations | 5 | 12 | 3 | 23 | |||||||||||
Net income | 5 | 12 | 3 | 23 |
|
June 30, 2012 | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | ||||||||||||
Marketable securities included in short-term investments, prepaids and other assets and other assets | |||||||||||||||
Mutual funds | $ | 259 | $ | 259 | $ | — | $ | — | |||||||
Equity securities | 28 | 28 | — | — | |||||||||||
U.S. government obligations | 105 | — | 105 | — | |||||||||||
U.S. government agencies | 99 | — | 99 | — | |||||||||||
Corporate debt securities | 479 | — | 479 | — | |||||||||||
Mortgage-backed securities | 20 | — | 20 | — | |||||||||||
Asset-backed securities | 8 | — | 8 | — | |||||||||||
Municipal and provincial notes and bonds | 14 | — | 14 | — | |||||||||||
Marketable securities recorded in cash and cash equivalents | |||||||||||||||
Interest bearing money market funds | 103 | 103 | — | — | |||||||||||
Derivative instruments | |||||||||||||||
Interest rate swaps | 6 | — | 6 | — | |||||||||||
Foreign currency forward contracts | (1 | ) | — | (1 | ) | — |
December 31, 2011 | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | ||||||||||||
Marketable securities included in short-term investments, prepaids and other assets and other assets | |||||||||||||||
Mutual funds | $ | 242 | $ | 242 | $ | — | $ | — | |||||||
Equity securities | 35 | 35 | — | — | |||||||||||
U.S. government obligations | 102 | — | 102 | — | |||||||||||
U.S. government agencies | 132 | — | 132 | — | |||||||||||
Corporate debt securities | 487 | — | 487 | — | |||||||||||
Mortgage-backed securities | 23 | — | 21 | 2 | |||||||||||
Asset-backed securities | 7 | — | 7 | — | |||||||||||
Municipal and provincial notes and bonds | 14 | — | 14 | — | |||||||||||
Marketable securities recorded in cash and cash equivalents | |||||||||||||||
Interest bearing money market funds | 60 | 60 | — | — | |||||||||||
Derivative instruments | |||||||||||||||
Interest rate swaps | 7 | — | 7 | — | |||||||||||
Foreign currency forward contracts | (1 | ) | — | (1 | ) | — |
June 30, 2012 | |||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
Corporate debt securities | $ | 383 | $ | 6 | $ | (6 | ) | $ | 383 | ||||||
U.S. government agencies and municipalities | 61 | — | — | 61 | |||||||||||
Equity securities | 9 | — | (1 | ) | 8 | ||||||||||
Total | $ | 453 | $ | 6 | $ | (7 | ) | $ | 452 |
December 31, 2011 | |||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
Corporate debt securities | $ | 406 | $ | 5 | $ | (5 | ) | $ | 406 | ||||||
U.S. government agencies and municipalities | 93 | — | — | 93 | |||||||||||
Equity securities | 9 | — | (2 | ) | 7 | ||||||||||
Total | $ | 508 | $ | 5 | $ | (7 | ) | $ | 506 |
June 30, 2012 | |||||||
Contractual Maturity | Cost or Amortized Cost | Fair Value | |||||
Due in one year or less | $ | 269 | $ | 269 | |||
Due in one to two years | 175 | 175 | |||||
Total | $ | 444 | $ | 444 |
Fair Value Measurements at Reporting Date Using Significant Unobservable Inputs (Level 3) - Mortgage Backed Securities | |||||||
2012 | 2011 | ||||||
Balance at January 1, | $ | 2 | $ | 2 | |||
Transfers into (out of) Level Three | — | — | |||||
Settlements | (2 | ) | — | ||||
Total gains (losses) (realized or unrealized) | — | — | |||||
Balance at March 31, | $ | — | $ | 2 | |||
Transfers into (out of) Level Three | — | — | |||||
Settlements | — | — | |||||
Total gains (losses) (realized or unrealized) | — | — | |||||
Balance at June 30, | $ | — | $ | 2 |
Asset (Liability) | |||||||||||||||||||
June 30, 2012 | |||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | |||||||||||||||
Financing receivables | |||||||||||||||||||
Secured financing to hotel owners | $ | 312 | $ | 311 | $ | — | $ | — | $ | 311 | |||||||||
Vacation ownership mortgage receivable | 41 | 42 | — | — | 42 | ||||||||||||||
Unsecured financing to hotel owners | 68 | 68 | — | — | 68 | ||||||||||||||
Debt, excluding capital lease obligations | (1,008 | ) | (1,122 | ) | — | (1,122 | ) | — |
Asset (Liability) | |||||||||||||||||||
December 31, 2011 | |||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | |||||||||||||||
Financing receivables | |||||||||||||||||||
Secured financing to hotel owners | $ | 312 | $ | 311 | $ | — | $ | — | $ | 311 | |||||||||
Vacation ownership mortgage receivable | 42 | 42 | — | — | 42 | ||||||||||||||
Unsecured financing to hotel owners | 16 | 15 | — | — | 15 | ||||||||||||||
Debt, excluding capital lease obligations | (1,008 | ) | (1,059 | ) | — | (1,059 | ) | — |
|
June 30, 2012 | December 31, 2011 | ||||||
Secured financing to hotel owners | $ | 319 | $ | 319 | |||
Vacation ownership mortgage receivables at various interest rates with varying payments through 2022 | 49 | 50 | |||||
Unsecured financing to hotel owners | 144 | 91 | |||||
512 | 460 | ||||||
Less allowance for losses | (91 | ) | (90 | ) | |||
Less current portion included in receivables, net | (11 | ) | (10 | ) | |||
Total long-term financing receivables | $ | 410 | $ | 360 |
Year Ending December 31, | Secured Financing to Hotel Owners | Vacation Ownership Mortgage Receivables | |||||
2012 | $ | 1 | $ | 3 | |||
2013 | 278 | 7 | |||||
2014 | — | 8 | |||||
2015 | 40 | 8 | |||||
2016 | — | 7 | |||||
2017 | — | 5 | |||||
Thereafter | — | 11 | |||||
Total | 319 | 49 | |||||
Less allowance | (7 | ) | (8 | ) | |||
Net financing receivables | $ | 312 | $ | 41 |
Secured Financing | Vacation Ownership | Unsecured Financing | Total | ||||||||||||
Allowance at January 1, 2012 | $ | 7 | $ | 8 | $ | 75 | $ | 90 | |||||||
Provisions | — | 1 | 3 | 4 | |||||||||||
Write-offs | — | (1 | ) | (3 | ) | (4 | ) | ||||||||
Recoveries | — | — | — | — | |||||||||||
Allowance at March 31, 2012 | $ | 7 | $ | 8 | $ | 75 | $ | 90 | |||||||
Provisions | — | 2 | 3 | 5 | |||||||||||
Write-offs | — | (2 | ) | — | (2 | ) | |||||||||
Recoveries | — | — | (2 | ) | (2 | ) | |||||||||
Allowance at June 30, 2012 | $ | 7 | $ | 8 | $ | 76 | $ | 91 |
Secured Financing | Vacation Ownership | Unsecured Financing | Total | ||||||||||||
Allowance at January 1, 2011 | $ | 4 | $ | 10 | $ | 68 | $ | 82 | |||||||
Provisions | — | 1 | 1 | 2 | |||||||||||
Other Adjustments | — | — | 1 | 1 | |||||||||||
Write-offs | (1 | ) | (1 | ) | — | (2 | ) | ||||||||
Recoveries | — | — | — | — | |||||||||||
Allowance at March 31, 2011 | $ | 3 | $ | 10 | $ | 70 | $ | 83 | |||||||
Provisions | — | — | 2 | 2 | |||||||||||
Other Adjustments | — | — | — | — | |||||||||||
Write-offs | — | (1 | ) | — | (1 | ) | |||||||||
Recoveries | — | — | — | — | |||||||||||
Allowance at June 30, 2011 | $ | 3 | $ | 9 | $ | 72 | $ | 84 |
Impaired Loans | |||||||||||||||
June 30, 2012 | |||||||||||||||
Gross Loan Balance (Principal and Interest) | Unpaid Principal Balance | Related Allowance | Average Recorded Loan Balance | ||||||||||||
Secured financing to hotel owners | $ | 40 | $ | 40 | $ | (7 | ) | $ | 40 | ||||||
Unsecured financing to hotel owners | 51 | 46 | (47 | ) | 50 |
Impaired Loans | |||||||||||||||
December 31, 2011 | |||||||||||||||
Gross Loan Balance (Principal and Interest) | Unpaid Principal Balance | Related Allowance | Average Recorded Loan Balance | ||||||||||||
Secured financing to hotel owners | $ | 41 | $ | 40 | $ | (7 | ) | $ | 40 | ||||||
Unsecured financing to hotel owners | 51 | 46 | (46 | ) | 51 |
Interest Income | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Secured financing to hotel owners | $ | — | $ | — | $ | 1 | $ | 1 | |||||||
Unsecured financing to hotel owners | — | — | — | — |
Analysis of Financing Receivables | |||||||||||
June 30, 2012 | |||||||||||
Receivables Past Due | Greater than 90 Days Past Due | Receivables on Non-Accrual Status | |||||||||
Secured financing to hotel owners | $ | — | $ | — | $ | 41 | |||||
Vacation ownership mortgage receivables | 2 | — | — | ||||||||
Unsecured financing to hotel owners * | 3 | 3 | 77 | ||||||||
Total | $ | 5 | $ | 3 | $ | 118 |
Analysis of Financing Receivables | |||||||||||
December 31, 2011 | |||||||||||
Receivables Past Due | Greater than 90 Days Past Due | Receivables on Non-Accrual Status | |||||||||
Secured financing to hotel owners | $ | — | $ | — | $ | 41 | |||||
Vacation ownership mortgage receivables | 3 | — | — | ||||||||
Unsecured financing to hotel owners * | 6 | 6 | 76 | ||||||||
Total | $ | 9 | $ | 6 | $ | 117 |
|
Cash and cash equivalents | $ | 11 | |
Other current assets | 3 | ||
Land, property, and equipment | 190 | ||
Intangibles | 12 | ||
Total assets | 216 | ||
Current liabilities | 3 | ||
Other long-term liabilities | 42 | ||
Total liabilities | 45 | ||
Total net assets acquired | $ | 171 |
Hyatt Regency Mexico City's operations included in 2012 results | |||
Revenues | $ | 5 | |
Income from continuing operations | 1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Pro forma revenues | $ | 1,020 | $ | 948 | $ | 1,990 | $ | 1,833 | |||||||
Pro forma income from continuing operations | 41 | 39 | 53 | 48 |
|
June 30, 2012 | Weighted Average Useful Lives (in years) | December 31, 2011 | |||||||
Contract acquisition costs | $ | 181 | 23 | $ | 167 | ||||
Acquired lease rights | 135 | 112 | 133 | ||||||
Franchise and management intangibles | 125 | 25 | 115 | ||||||
Other | 9 | 10 | 7 | ||||||
450 | 422 | ||||||||
Accumulated amortization | (74 | ) | (63 | ) | |||||
Intangibles, net | $ | 376 | $ | 359 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Amortization expense | $ | 7 | $ | 5 | $ | 12 | $ | 8 |
|
June 30, 2012 | December 31, 2011 | ||||||
Pound Sterling | $ | 152 | $ | 126 | |||
Swiss Franc | 46 | 59 | |||||
Korean Won | 33 | 33 | |||||
Canadian Dollar | 27 | 27 | |||||
Total notional amount of forward contracts | $ | 258 | $ | 245 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Balance Sheet Location | June 30, 2012 | December 31, 2011 | Balance Sheet Location | June 30, 2012 | December 31, 2011 | ||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||
Interest rate swaps | Other assets | $ | 6 | $ | 7 | Other long-term liabilities | $ | — | $ | — | |||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Foreign currency forward contracts | Prepaids and other assets | — | — | Accrued expenses and other current liabilities | 1 | 1 | |||||||||||||
Total derivatives | $ | 6 | $ | 7 | $ | 1 | $ | 1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Location of Gain (Loss) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Fair value hedges: | |||||||||||||||||
Interest rate swaps | |||||||||||||||||
Gains (losses) on derivatives | Other income (loss), net* | $ | 1 | $ | 2 | $ | 1 | $ | 1 | ||||||||
Gains (losses) on borrowings | Other income (loss), net* | (1 | ) | (2 | ) | (1 | ) | (1 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Location of Gain (Loss) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Cash flow hedges: | |||||||||||||||||
Interest rate locks | |||||||||||||||||
Amount of gain (loss) recognized in accumulated other comprehensive income (loss) on derivative (effective portion) | Accumulated other comprehensive loss | $ | — | $ | 4 | $ | — | $ | 4 | ||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | Interest expense | — | — | — | — | ||||||||||||
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | Other income (loss), net** | — | — | — | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Location of Gain (Loss) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||
Foreign currency forward contracts | Other income (loss), net | $ | 4 | $ | (6 | ) | $ | (2 | ) | $ | (8 | ) |
* | For the three and six months ended June 30, 2012 and 2011, there was an insignificant loss recognized in income related to the ineffective portion of these hedges. No amounts were excluded from the assessment of hedge effectiveness for the three and six months ended June 30, 2012 and 2011. |
** | For the three and six months ended June 30, 2011, there was an insignificant gain recognized in income related to the ineffective portion of these hedges. No incremental amounts were excluded from the assessment of hedge effectiveness for the three and six months ended June 30, 2011. |
|
|
Stockholders’ equity | Noncontrolling interests in consolidated subsidiaries | Total equity | |||||||||
Balance at January 1, 2012 | $ | 4,818 | $ | 10 | $ | 4,828 | |||||
Net income (loss) | 49 | — | 49 | ||||||||
Other comprehensive income (loss) | (4 | ) | — | (4 | ) | ||||||
Issuance of common stock shares to directors | 1 | — | 1 | ||||||||
Share based payment activity | 9 | — | 9 | ||||||||
Balance at June 30, 2012 | $ | 4,873 | $ | 10 | $ | 4,883 | |||||
Balance at January 1, 2011 | $ | 5,118 | $ | 13 | $ | 5,131 | |||||
Net income (loss) | 47 | (1 | ) | 46 | |||||||
Other comprehensive income (loss) | 40 | — | 40 | ||||||||
Purchase of company stock | (396 | ) | — | (396 | ) | ||||||
Issuance of common stock shares to directors | 1 | — | 1 | ||||||||
Share based payment activity | 12 | — | 12 | ||||||||
Balance at June 30, 2011 | $ | 4,822 | $ | 12 | $ | 4,834 |
Balance at January 1, 2012 | Current period other comprehensive income (loss) | Balance at June 30, 2012 | |||||||||
Foreign currency translation adjustments | $ | (64 | ) | $ | (5 | ) | $ | (69 | ) | ||
Unrealized gain (loss) on AFS securities | (2 | ) | 1 | (1 | ) | ||||||
Unrecognized pension cost | (6 | ) | — | (6 | ) | ||||||
Unrealized gain (loss) on derivative instruments | (8 | ) | — | (8 | ) | ||||||
Accumulated Other Comprehensive Income (Loss) | $ | (80 | ) | $ | (4 | ) | $ | (84 | ) | ||
Balance at January 1, 2011 | Current period other comprehensive income (loss) | Balance at June 30, 2011 | |||||||||
Foreign currency translation adjustments | $ | (33 | ) | $ | 38 | $ | 5 | ||||
Unrealized gain (loss) on AFS securities | — | — | — | ||||||||
Unrecognized pension cost | (5 | ) | — | (5 | ) | ||||||
Unrealized gain (loss) on derivative instruments | — | 2 | 2 | ||||||||
Accumulated Other Comprehensive Income (Loss) | $ | (38 | ) | $ | 40 | $ | 2 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Stock appreciation rights | $ | 2 | $ | 2 | $ | 4 | $ | 4 | |||||||
Restricted stock units | 3 | 3 | 6 | 6 | |||||||||||
Performance share units and Performance vested restricted stock | — | — | 1 | 1 |
|
(in millions) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
North American Management and Franchising | |||||||||||||||
Revenues | $ | 433 | $ | 397 | $ | 864 | $ | 789 | |||||||
Intersegment Revenues (a) | 22 | 15 | 40 | 29 | |||||||||||
Adjusted EBITDA | 54 | 44 | 100 | 84 | |||||||||||
Depreciation and Amortization | 5 | 3 | 9 | 6 | |||||||||||
International Management and Franchising | |||||||||||||||
Revenues | 55 | 54 | 110 | 105 | |||||||||||
Intersegment Revenues (a) | 4 | 5 | 8 | 9 | |||||||||||
Adjusted EBITDA | 24 | 22 | 44 | 42 | |||||||||||
Depreciation and Amortization | 1 | 1 | 1 | 1 | |||||||||||
Owned and Leased Hotels (b) | |||||||||||||||
Revenues | 528 | 484 | 1,001 | 916 | |||||||||||
Adjusted EBITDA | 132 | 114 | 225 | 189 | |||||||||||
Depreciation and Amortization | 81 | 66 | 161 | 132 | |||||||||||
Corporate and other | |||||||||||||||
Revenues | 24 | 21 | 45 | 39 | |||||||||||
Adjusted EBITDA | (30 | ) | (29 | ) | (64 | ) | (55 | ) | |||||||
Depreciation and Amortization | 2 | 2 | 4 | 4 | |||||||||||
Eliminations (a) | |||||||||||||||
Revenues | (26 | ) | (20 | ) | (48 | ) | (38 | ) | |||||||
Adjusted EBITDA | — | — | — | — | |||||||||||
Depreciation and Amortization | — | — | — | — | |||||||||||
TOTAL | |||||||||||||||
Revenues | $ | 1,014 | $ | 936 | $ | 1,972 | $ | 1,811 | |||||||
Adjusted EBITDA | 180 | 151 | 305 | 260 | |||||||||||
Depreciation and Amortization | 89 | 72 | 175 | 143 |
(a) | Intersegment revenues are included in the segment revenue totals and eliminated in Eliminations. |
(b) | Assets within the Owned and Leased segment at June 30, 2012, equaled $5,012 million compared to $4,825 million at December 31, 2011. The increase in assets is primarily due to the acquisition of a company that owned a full service hotel in Mexico City, Mexico which we rebranded as the Hyatt Regency Mexico City. Refer to Note 6 for further details. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Adjusted EBITDA | $ | 180 | $ | 151 | $ | 305 | $ | 260 | |||||||
Equity earnings (losses) from unconsolidated hospitality ventures | — | 2 | (1 | ) | 5 | ||||||||||
Asset impairments | — | (1 | ) | — | (1 | ) | |||||||||
Other income (loss), net | 5 | (9 | ) | 17 | (6 | ) | |||||||||
Net loss attributable to noncontrolling interests | — | 1 | — | 1 | |||||||||||
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA | (22 | ) | (22 | ) | (40 | ) | (37 | ) | |||||||
EBITDA | 163 | 122 | 281 | 222 | |||||||||||
Depreciation and amortization | (89 | ) | (72 | ) | (175 | ) | (143 | ) | |||||||
Interest expense | (17 | ) | (14 | ) | (35 | ) | (27 | ) | |||||||
(Provision) benefit for income taxes | (18 | ) | 1 | (22 | ) | (5 | ) | ||||||||
Net income attributable to Hyatt Hotels Corporation | $ | 39 | $ | 37 | $ | 49 | $ | 47 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest income | $ | 6 | $ | 6 | $ | 11 | $ | 11 | |||||||
Gains (losses) on other marketable securities | 9 | (6 | ) | 17 | (7 | ) | |||||||||
Foreign currency losses | (2 | ) | (3 | ) | (2 | ) | (4 | ) | |||||||
Loss on sale of real estate | — | (2 | ) | — | (2 | ) | |||||||||
Realignment costs | (7 | ) | — | (7 | ) | — | |||||||||
Transaction costs | (1 | ) | — | (1 | ) | — | |||||||||
Other | — | (4 | ) | (1 | ) | (4 | ) | ||||||||
Other income (loss), net | $ | 5 | $ | (9 | ) | $ | 17 | $ | (6 | ) |
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