The following tables present the effect of the adoption of ASUs 2014-09, 2016-15, and 2016-18 on our Financial Statements included in this report.

Income Statements



	Three Months Ended						Three Months Ended
($ in millions, except per share amounts)	March 31, 2017 (As Previously Reported)			Adoption of ASU 2014-09			March 31, 2017 (As Adjusted)
REVENUES
Base management fees	$	264		$	—		$	264
Franchise fees	365			(10		)	355
Incentive management fees	153			(13		)	140
Gross fee revenues	782			(23		)	759
Contract investment amortization	—			(11		)	(11		)
Net fee revenues	782			(34		)	748
Owned, leased, and other revenue	439			(11		)	428
Cost reimbursement revenue	4,340			(604		)	3,736
	5,561			(649		)	4,912
OPERATING COSTS AND EXPENSES
Owned, leased, and other-direct	358			(2		)	356
Depreciation, amortization, and other	65			(14		)	51
General, administrative, and other	210			2			212
Merger-related costs and charges	51			—			51
Reimbursed expenses	4,340			(644		)	3,696
	5,024			(658		)	4,366
OPERATING INCOME	537			9			546
Gains and other income, net	—			—			—
Interest expense	(70		)	—			(70		)
Interest income	7			—			7
Equity in earnings	11			—			11
INCOME BEFORE INCOME TAXES	485			9			494
Provision for income taxes	(120		)	(3		)	(123		)
NET INCOME	$	365		$	6		$	371
EARNINGS PER SHARE
Earnings per share - basic	$	0.95		$	0.01		$	0.96
Earnings per share - diluted	$	0.94		$	0.01		$	0.95

Statements of Comprehensive Income



	Three Months Ended					Three Months Ended
($ in millions)	March 31, 2017 (As Previously Reported)			Adoption of ASU 2014-09		March 31, 2017 (As Adjusted)
Net income	$	365		$	6	$	371
Other comprehensive income (loss):
Foreign currency translation adjustments	188			—		188
Derivative instrument adjustments, net of tax	(2		)	—		(2		)
Unrealized (loss) gain on available-for-sale securities, net of tax	(1		)	—		(1		)
Pension and postretirement adjustments, net of tax	—			—		—
Reclassification of losses, net of tax	—			—		—
Total other comprehensive income, net of tax	185			—		185
Comprehensive income	$	550		$	6	$	556

Balance Sheets



($ in millions)	December 31, 2017 (As Previously Reported) ⁽¹⁾			Adoption of ASU 2014-09			December 31, 2017 (As Adjusted)
ASSETS
Current assets
Cash and equivalents	$	383		$	—		$	383
Accounts and notes receivable, net	1,999			(26		)	1,973
Prepaid expenses and other	216			19			235
Assets held for sale	149			—			149
	2,747			(7		)	2,740
Property and equipment, net	1,793			—			1,793
Intangible assets
Brands	5,922			—			5,922
Contract acquisition costs and other	2,884			(262		)	2,622
Goodwill	9,207			—			9,207
	18,013			(262		)	17,751
Equity method investments	735			(1		)	734
Notes receivable, net	142			—			142
Deferred tax assets	93			—			93
Other noncurrent assets	426			167			593
	$	23,949		$	(103	)	$	23,846
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Current portion of long-term debt	$	398		$	—		$	398
Accounts payable	783			—			783
Accrued payroll and benefits	1,214			—			1,214
Liability for guest loyalty programs	2,064			57			2,121
Accrued expenses and other	1,541			(250		)	1,291
	6,000			(193		)	5,807
Long-term debt	7,840			—			7,840
Liability for guest loyalty programs	2,876			(57		)	2,819
Deferred tax liabilities	604			1			605
Deferred revenue	145			438			583
Other noncurrent liabilities	2,753			(143		)	2,610
Shareholders' equity
Class A Common Stock	5			—			5
Additional paid-in-capital	5,770			—			5,770
Retained earnings	7,391			(149		)	7,242
Treasury stock, at cost	(9,418		)	—			(9,418		)
Accumulated other comprehensive loss	(17		)	—			(17		)
	3,731			(149		)	3,582
	$	23,949		$	(103	)	$	23,846


⁽¹⁾	Includes reclassifications among various captions, including Deferred revenue and Other noncurrent liabilities, to conform to current period presentation.

Statements of Cash Flows



	Three Months Ended									Three Months Ended
($ in millions)	March 31, 2017 (As Previously Reported)			Adoption of ASU 2014-09			Adoption of ASUs 2016-18 and 2016-15			March 31, 2017 (As Adjusted)
OPERATING ACTIVITIES
Net income	$	365		$	6		$	—		$	371
Adjustments to reconcile to cash provided by operating activities:
Depreciation, amortization, and other	65			(3		)	—			62
Share-based compensation	48			—			—			48
Income taxes	82			4			—			86
Liability for guest loyalty program	60			9			—			69
Contract acquisition costs	—			(53		)	—			(53		)
Merger-related charges	(36		)	—			—			(36		)
Working capital changes	(108		)	(28		)	1			(135		)
(Gain) loss on asset dispositions	1			—			—			1
Other	49			7			(7		)	49
Net cash provided by (used in) operating activities	526			(58		)	(6		)	462
INVESTING ACTIVITIES
Capital expenditures	(48		)	—			—			(48		)
Dispositions	311			—			—			311
Loan advances	(28		)	—			—			(28		)
Loan collections	7			—			—			7
Contract acquisition costs	(54		)	54			—			—
Other	(4		)	4			1			1
Net cash provided by investing activities	184			58			1			243
FINANCING ACTIVITIES
Commercial paper/Credit Facility, net	(33		)	—			7			(26		)
Issuance of long-term debt	1			—			—			1
Repayment of long-term debt	(4		)	—			—			(4		)
Issuance of Class A Common Stock	2			—			—			2
Dividends paid	(115		)	—			—			(115		)
Purchase of treasury stock	(582		)	—			—			(582		)
Share-based compensation withholding taxes	(99		)	—			—			(99		)
Net cash provided by (used in) financing activities	(830		)	—			7			(823		)
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(120		)	—			2			(118		)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period	858			—			29			887
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period	$	738		$	—		$	31		$	769

See Footnote 10. Other Comprehensive Income (Loss) and Shareholders’ Equity for the impact of the adoption of new accounting standards on our shareholders’ equity.