Delaware | 1-13881 | 52-2055918 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
10400 Fernwood Road, Bethesda, Maryland | 20817 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter) |
Emerging growth company | o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits. The following exhibit is furnished with this report: |
MARRIOTT INTERNATIONAL, INC. | ||||||||
Date: February 28, 2019 | By: | /s/ Bao Giang Val Bauduin | ||||||
Bao Giang Val Bauduin | ||||||||
Controller and Chief Accounting Officer |
• | Fourth quarter reported diluted EPS totaled $0.92, compared to $0.31 in the year-ago quarter. Fourth quarter adjusted diluted EPS totaled $1.44, a 32 percent increase over fourth quarter 2017 adjusted results; |
• | Full year 2018 reported diluted EPS totaled $5.38, a 40 percent increase from prior year results. Full year 2018 adjusted diluted EPS totaled $6.21, a 48 percent increase over full year 2017 adjusted results; |
• | Fourth quarter 2018 comparable systemwide constant dollar RevPAR rose 1.3 percent worldwide, 4.0 percent outside North America and 0.2 percent in North America; |
• | Full year 2018 comparable systemwide constant dollar RevPAR rose 2.6 percent worldwide, 5.5 percent outside North America and 1.5 percent in North America; |
• | The company added more than 80,000 rooms during 2018, including over 9,900 rooms converted from competitor brands and nearly 36,400 rooms in international markets; |
• | In 2018, Marriott signed agreements for a record 125,000 rooms, increasing the company’s worldwide development pipeline to a record 478,000 rooms as of year-end, including nearly 23,000 rooms approved, but not yet subject to signed contracts; |
• | Fourth quarter reported net income totaled $317 million, compared to $114 million in the year-ago quarter. Fourth quarter adjusted net income totaled $497 million, a 23 percent increase over prior year adjusted results; |
• | Adjusted EBITDA totaled $864 million in the quarter, a 10 percent increase over fourth quarter 2017 adjusted EBITDA; |
• | Full year 2018 reported net income totaled $1,907 million, a 31 percent increase compared to prior year results. Full year 2018 adjusted net income totaled $2,201 million, a 38 percent increase over prior year adjusted results; |
• | Adjusted EBITDA totaled $3,473 million for full year 2018, an 11 percent increase over full year 2017 adjusted EBITDA; |
• | For full year 2018, Marriott repurchased 21.5 million shares of the company’s common stock for $2.8 billion, including 3.0 million shares for $336 million during the fourth quarter. |
First Quarter 20191 | Full Year 20191 | |
Gross fee revenues | $885 million to $905 million | $3,830 million to $3,910 million |
Contract investment amortization | Approx. $15 million | Approx. $60 million |
Owned, leased and other revenue, net of direct expenses | Approx. $50 million | $280 million to $290 million |
Depreciation, amortization, and other expenses | Approx. $55 million | Approx. $215 million |
General, administrative, and other expenses | $215 million to $220 million | $910 million to $920 million |
Operating income | $645 million to $670 million | $2,915 million to $3,015 million |
Gains and other income | Approx. $0 million | Approx. $5 million |
Net interest expense | Approx. $95 million | Approx. $385 million |
Equity in earnings (losses) | Approx. $10 million | Approx. $25 million |
Earnings per share - diluted | $1.30 to $1.35 | $5.87 to $6.10 |
Effective tax rate | 21 percent | 23 percent |
MARRIOTT INTERNATIONAL, INC. | |
PRESS RELEASE SCHEDULES | |
TABLE OF CONTENTS | |
QUARTER 4, 2018 | |
Consolidated Statements of Income - As Reported | |
Non-GAAP Financial Measures | |
Total Lodging Products | |
Key Lodging Statistics | |
Adjusted EBITDA | |
Adjusted EBITDA Forecast - First Quarter 2019 | |
Adjusted EBITDA Forecast - Full Year 2019 | |
Explanation of Non-GAAP Financial and Performance Measures |
As Reported | As Reported 10 | Percent | ||||||||
Three Months Ended | Three Months Ended | Better/(Worse) | ||||||||
December 31, 2018 | December 31, 2017 | Reported 2018 vs. 2017 | ||||||||
REVENUES | ||||||||||
Base management fees | $ | 288 | $ | 284 | 1 | |||||
Franchise fees 1 | 455 | 404 | 13 | |||||||
Incentive management fees | 167 | 174 | (4 | ) | ||||||
Gross Fee Revenues | 910 | 862 | 6 | |||||||
Contract investment amortization 2 | (14 | ) | (16 | ) | 13 | |||||
Net Fee Revenues | 896 | 846 | 6 | |||||||
Owned, leased, and other revenue 3 | 409 | 443 | (8 | ) | ||||||
Cost reimbursement revenue 4 | 3,984 | 3,962 | 1 | |||||||
Total Revenues | 5,289 | 5,251 | 1 | |||||||
OPERATING COSTS AND EXPENSES | ||||||||||
Owned, leased, and other - direct 5 | 321 | 354 | 9 | |||||||
Depreciation, amortization, and other 6 | 62 | 53 | (17 | ) | ||||||
General, administrative, and other 7 | 242 | 270 | 10 | |||||||
Merger-related costs and charges | 91 | 59 | (54 | ) | ||||||
Reimbursed expenses 4 | 4,151 | 4,091 | (1 | ) | ||||||
Total Expenses | 4,867 | 4,827 | (1 | ) | ||||||
OPERATING INCOME | 422 | 424 | — | |||||||
Gains and other income, net 8 | 3 | 657 | (100 | ) | ||||||
Interest expense | (94 | ) | (72 | ) | (31 | ) | ||||
Interest income | 6 | 14 | (57 | ) | ||||||
Equity in earnings 9 | 8 | 11 | (27 | ) | ||||||
INCOME BEFORE INCOME TAXES | 345 | 1,034 | (67 | ) | ||||||
Provision for income taxes | (28 | ) | (920 | ) | 97 | |||||
NET INCOME | $ | 317 | $ | 114 | 178 | |||||
EARNINGS PER SHARE | ||||||||||
Earnings per share - basic | $ | 0.93 | $ | 0.31 | 200 | |||||
Earnings per share - diluted | $ | 0.92 | $ | 0.31 | 197 | |||||
Basic Shares | 341.9 | 365.1 | ||||||||
Diluted Shares | 345.7 | 369.9 |
1 | Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and residential branding fees. |
2 | Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related impairments, accelerations, or write-offs. |
3 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue. |
4 | Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services. |
5 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. |
6 | Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, and license agreements, and any related impairments, accelerations, or write-offs. |
7 | General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses. |
8 | Gains and other income, net includes gains and losses on the sale of real estate, the sale or impairment of joint ventures and investments, and results from other equity investments. |
9 | Equity in earnings include our equity in earnings or losses of unconsolidated equity method investments. |
10 | On January 1, 2018, we adopted ASU 2014-09. This column reflects our recast 2017 results under the new accounting standard. |
As Reported10 | As Reported 11 | Percent | ||||||||
Twelve Months Ended | Twelve Months Ended | Better/(Worse) | ||||||||
December 31, 2018 | December 31, 2017 | Reported 2018 vs. 2017 | ||||||||
REVENUES | ||||||||||
Base management fees | $ | 1,140 | $ | 1,102 | 3 | |||||
Franchise fees 1 | 1,849 | 1,586 | 17 | |||||||
Incentive management fees | 649 | 607 | 7 | |||||||
Gross Fee Revenues | 3,638 | 3,295 | 10 | |||||||
Contract investment amortization 2 | (58 | ) | (50 | ) | (16 | ) | ||||
Net Fee Revenues | 3,580 | 3,245 | 10 | |||||||
Owned, leased, and other revenue 3 | 1,635 | 1,752 | (7 | ) | ||||||
Cost reimbursement revenue 4 | 15,543 | 15,455 | 1 | |||||||
Total Revenues | 20,758 | 20,452 | 1 | |||||||
OPERATING COSTS AND EXPENSES | ||||||||||
Owned, leased, and other - direct 5 | 1,306 | 1,411 | 7 | |||||||
Depreciation, amortization, and other 6 | 226 | 229 | 1 | |||||||
General, administrative, and other 7 | 927 | 921 | (1 | ) | ||||||
Merger-related costs and charges | 155 | 159 | 3 | |||||||
Reimbursed expenses 4 | 15,778 | 15,228 | (4 | ) | ||||||
Total Expenses | 18,392 | 17,948 | (2 | ) | ||||||
OPERATING INCOME | 2,366 | 2,504 | (6 | ) | ||||||
Gains and other income, net 8 | 194 | 688 | (72 | ) | ||||||
Interest expense | (340 | ) | (288 | ) | (18 | ) | ||||
Interest income | 22 | 38 | (42 | ) | ||||||
Equity in earnings 9 | 103 | 40 | 158 | |||||||
INCOME BEFORE INCOME TAXES | 2,345 | 2,982 | (21 | ) | ||||||
Provision for income taxes | (438 | ) | (1,523 | ) | 71 | |||||
NET INCOME | $ | 1,907 | $ | 1,459 | 31 | |||||
EARNINGS PER SHARE | ||||||||||
Earnings per share - basic | $ | 5.45 | $ | 3.89 | 40 | |||||
Earnings per share - diluted | $ | 5.38 | $ | 3.84 | 40 | |||||
Basic Shares | 350.1 | 375.2 | ||||||||
Diluted Shares | 354.2 | 379.9 |
1 | Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and residential branding fees. |
2 | Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related impairments, accelerations, or write-offs. |
3 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue. |
4 | Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services. |
5 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. |
6 | Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, and license agreements, and any related impairments, accelerations, or write-offs. |
7 | General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses. |
8 | Gains and other income, net includes gains and losses on the sale of real estate, the sale or impairment of joint ventures and investments, and results from other equity investments. |
9 | Equity in earnings include our equity in earnings or losses of unconsolidated equity method investments. |
10 | Results for the 2018 full year reflect the correction of certain immaterial errors of cost reimbursement revenue and reimbursed expenses in the 2018 first, second, and third quarters. For more information, see our Annual Report on Form 10-K, which the company expects to file on March 1, 2019. |
11 | On January 1, 2018, we adopted ASU 2014-09. This column reflects our recast 2017 results under the new accounting standard. |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||
December 31, 2018 | December 31, 2017 3 | Percent Better/(Worse) | December 31, 2018 4 | December 31, 2017 3 | Percent Better/(Worse) | ||||||||||||||||
Total revenues, as reported | $ | 5,289 | $ | 5,251 | $ | 20,758 | $ | 20,452 | |||||||||||||
Less: Cost reimbursement revenue | (3,984 | ) | (3,962 | ) | (15,543 | ) | (15,455 | ) | |||||||||||||
Less: Other merger-related adjustments1 | — | — | — | (3 | ) | ||||||||||||||||
Adjusted total revenues** | 1,305 | 1,289 | 5,215 | 4,994 | |||||||||||||||||
Operating income, as reported | 422 | 424 | 2,366 | 2,504 | |||||||||||||||||
Less: Cost reimbursement revenue | (3,984 | ) | (3,962 | ) | (15,543 | ) | (15,455 | ) | |||||||||||||
Add: Reimbursed expenses | 4,151 | 4,091 | 15,778 | 15,228 | |||||||||||||||||
Add: Merger-related costs, charges, and other 2 | 91 | 59 | 155 | 155 | |||||||||||||||||
Adjusted operating income ** | 680 | 612 | 11 | % | 2,756 | 2,432 | 13 | % | |||||||||||||
Operating income margin | 8 | % | 8 | % | 11 | % | 12 | % | |||||||||||||
Adjusted operating income margin ** | 52 | % | 47 | % | 53 | % | 49 | % | |||||||||||||
Net income, as reported | 317 | 114 | 1,907 | 1,459 | |||||||||||||||||
Less: Cost reimbursement revenue | (3,984 | ) | (3,962 | ) | (15,543 | ) | (15,455 | ) | |||||||||||||
Add: Reimbursed expenses | 4,151 | 4,091 | 15,778 | 15,228 | |||||||||||||||||
Add: Merger-related costs, charges, and other 2 | 91 | 59 | 155 | 155 | |||||||||||||||||
Less: Gain on sale of Avendra | — | (659 | ) | (6 | ) | (659 | ) | ||||||||||||||
Income tax effect of above adjustments | (83 | ) | 197 | (117 | ) | 309 | |||||||||||||||
Add: U.S. Tax Cuts and Jobs Act of 2017 | 5 | 563 | 27 | 563 | |||||||||||||||||
Adjusted net income ** | $ | 497 | $ | 403 | 23 | % | $ | 2,201 | $ | 1,600 | 38 | % | |||||||||
Diluted EPS, as reported | $ | 0.92 | $ | 0.31 | $ | 5.38 | $ | 3.84 | |||||||||||||
Adjusted Diluted EPS** | $ | 1.44 | $ | 1.09 | 32 | % | $ | 6.21 | $ | 4.21 | 48 | % |
** | Denotes non-GAAP financial measures. Please see pages A-14 and A-15 for information about our reasons for providing these alternative financial measures and the limitations on their use. |
1 | Other merger-related adjustments include Starwood purchase accounting revisions. |
2 | Merger-related costs, charges, and other includes Starwood merger costs presented in the “Merger-related costs and charges” caption of our Income Statement and net purchase accounting revisions. |
3 | On January 1, 2018, we adopted ASU 2014-09. This column reflects our recast 2017 results under the new accounting standard. |
4 | Results for the 2018 full year reflect the correction of certain immaterial errors of cost reimbursement revenue and reimbursed expenses in the 2018 first, second, and third quarters. The errors had no impact on our Adjusted operating income, Adjusted operating income margin, Adjusted net income, Adjusted diluted EPS, or Adjusted EBITDA non-GAAP measures. For more information, see our Annual Report on Form 10-K, which the company expects to file on March 1, 2019. |
North America | Total International | Total Worldwide | ||||||||||
Units | Rooms | Units | Rooms | Units | Rooms | |||||||
Managed | 766 | 242,301 | 1,107 | 297,817 | 1,873 | 540,118 | ||||||
Marriott Hotels | 125 | 66,870 | 168 | 49,606 | 293 | 116,476 | ||||||
Sheraton | 28 | 23,606 | 184 | 63,201 | 212 | 86,807 | ||||||
Courtyard | 240 | 38,356 | 96 | 20,765 | 336 | 59,121 | ||||||
Westin | 45 | 24,808 | 69 | 21,333 | 114 | 46,141 | ||||||
The Ritz-Carlton | 38 | 10,969 | 55 | 15,002 | 93 | 25,971 | ||||||
The Ritz-Carlton Serviced Apartments | — | — | 5 | 697 | 5 | 697 | ||||||
JW Marriott | 16 | 10,038 | 49 | 19,382 | 65 | 29,420 | ||||||
Renaissance | 27 | 11,574 | 57 | 17,823 | 84 | 29,397 | ||||||
Le Méridien | 3 | 570 | 72 | 19,801 | 75 | 20,371 | ||||||
Residence Inn | 110 | 16,897 | 6 | 643 | 116 | 17,540 | ||||||
Four Points | 1 | 134 | 72 | 18,677 | 73 | 18,811 | ||||||
W Hotels | 24 | 6,965 | 28 | 6,904 | 52 | 13,869 | ||||||
The Luxury Collection | 5 | 2,234 | 50 | 8,867 | 55 | 11,101 | ||||||
St. Regis | 9 | 1,739 | 30 | 6,902 | 39 | 8,641 | ||||||
Aloft | 1 | 330 | 37 | 8,798 | 38 | 9,128 | ||||||
Gaylord Hotels | 6 | 9,918 | — | — | 6 | 9,918 | ||||||
Delta Hotels | 25 | 6,764 | — | — | 25 | 6,764 | ||||||
Fairfield by Marriott | 7 | 1,539 | 31 | 4,777 | 38 | 6,316 | ||||||
SpringHill Suites | 31 | 4,988 | — | — | 31 | 4,988 | ||||||
Marriott Executive Apartments | — | — | 30 | 4,440 | 30 | 4,440 | ||||||
Protea Hotels | — | — | 36 | 4,327 | 36 | 4,327 | ||||||
Autograph Collection | 5 | 1,307 | 8 | 1,722 | 13 | 3,029 | ||||||
TownePlace Suites | 17 | 1,948 | — | — | 17 | 1,948 | ||||||
Element | 1 | 180 | 6 | 1,253 | 7 | 1,433 | ||||||
EDITION | 2 | 567 | 6 | 1,301 | 8 | 1,868 | ||||||
Moxy | — | — | 4 | 599 | 4 | 599 | ||||||
Tribute Portfolio | — | — | 3 | 559 | 3 | 559 | ||||||
Bulgari | — | — | 5 | 438 | 5 | 438 | ||||||
Franchised | 4,133 | 597,379 | 508 | 109,437 | 4,641 | 706,816 | ||||||
Courtyard | 768 | 102,219 | 72 | 13,390 | 840 | 115,609 | ||||||
Fairfield by Marriott | 933 | 86,513 | 8 | 1,459 | 941 | 87,972 | ||||||
Marriott Hotels | 213 | 66,300 | 53 | 15,301 | 266 | 81,601 | ||||||
Residence Inn | 678 | 80,246 | 7 | 963 | 685 | 81,209 | ||||||
Sheraton | 160 | 47,594 | 63 | 17,912 | 223 | 65,506 | ||||||
SpringHill Suites | 383 | 43,971 | — | — | 383 | 43,971 | ||||||
Westin | 83 | 27,074 | 25 | 7,865 | 108 | 34,939 | ||||||
TownePlace Suites | 371 | 37,283 | — | — | 371 | 37,283 | ||||||
Four Points | 151 | 22,881 | 47 | 7,452 | 198 | 30,333 | ||||||
Autograph Collection | 90 | 18,911 | 55 | 12,296 | 145 | 31,207 | ||||||
Renaissance | 60 | 17,213 | 27 | 7,423 | 87 | 24,636 | ||||||
Aloft | 107 | 15,966 | 14 | 2,258 | 121 | 18,224 | ||||||
The Luxury Collection | 12 | 2,850 | 41 | 7,718 | 53 | 10,568 | ||||||
Delta Hotels | 36 | 8,141 | 2 | 562 | 38 | 8,703 | ||||||
Le Méridien | 16 | 3,417 | 16 | 4,246 | 32 | 7,663 | ||||||
JW Marriott | 12 | 5,643 | 6 | 1,624 | 18 | 7,267 | ||||||
Moxy | 11 | 2,235 | 22 | 4,743 | 33 | 6,978 | ||||||
Tribute Portfolio | 18 | 4,285 | 10 | 1,077 | 28 | 5,362 | ||||||
Element | 30 | 4,208 | 2 | 293 | 32 | 4,501 | ||||||
Protea Hotels | — | — | 37 | 2,770 | 37 | 2,770 | ||||||
The Ritz-Carlton | 1 | 429 | — | — | 1 | 429 | ||||||
Bulgari | — | — | 1 | 85 | 1 | 85 |
North America | Total International | Total Worldwide | ||||||||||
Units | Rooms | Units | Rooms | Units | Rooms | |||||||
Owned/Leased | 29 | 8,281 | 34 | 8,814 | 63 | 17,095 | ||||||
Sheraton | 2 | 1,474 | 4 | 1,830 | 6 | 3,304 | ||||||
Courtyard | 19 | 2,814 | 4 | 894 | 23 | 3,708 | ||||||
Marriott Hotels | 3 | 1,664 | 5 | 1,625 | 8 | 3,289 | ||||||
Westin | 1 | 1,073 | — | — | 1 | 1,073 | ||||||
W Hotels | 1 | 509 | 2 | 665 | 3 | 1,174 | ||||||
Protea Hotels | — | — | 7 | 1,168 | 7 | 1,168 | ||||||
Renaissance | 1 | 317 | 3 | 749 | 4 | 1,066 | ||||||
The Ritz-Carlton | — | — | 2 | 553 | 2 | 553 | ||||||
JW Marriott | — | — | 1 | 496 | 1 | 496 | ||||||
St. Regis | 1 | 238 | 1 | 160 | 2 | 398 | ||||||
Residence Inn | 1 | 192 | 1 | 140 | 2 | 332 | ||||||
The Luxury Collection | — | — | 2 | 287 | 2 | 287 | ||||||
Autograph Collection | — | — | 2 | 247 | 2 | 247 | ||||||
Unconsolidated Joint Ventures | 49 | 8,447 | 102 | 12,749 | 151 | 21,196 | ||||||
AC Hotels by Marriott | 49 | 8,447 | 96 | 12,330 | 145 | 20,777 | ||||||
Autograph Collection | — | — | 6 | 419 | 6 | 419 | ||||||
Residences | 59 | 6,959 | 30 | 2,998 | 89 | 9,957 | ||||||
The Ritz-Carlton Residences | 37 | 4,854 | 11 | 950 | 48 | 5,804 | ||||||
W Residences | 9 | 1,078 | 4 | 478 | 13 | 1,556 | ||||||
St. Regis Residences | 7 | 585 | 7 | 593 | 14 | 1,178 | ||||||
Westin Residences | 3 | 266 | 1 | 264 | 4 | 530 | ||||||
Bulgari Residences | — | — | 3 | 366 | 3 | 366 | ||||||
Sheraton Residences | — | — | 2 | 262 | 2 | 262 | ||||||
The Luxury Collection Residences | 2 | 151 | 2 | 85 | 4 | 236 | ||||||
EDITION Residences | 1 | 25 | — | — | 1 | 25 | ||||||
Timeshare* | 70 | 18,313 | 19 | 3,873 | 89 | 22,186 | ||||||
Grand Total | 5,106 | 881,680 | 1,800 | 435,688 | 6,906 | 1,317,368 |
North America | Total International | Total Worldwide | ||||||||||
Total Systemwide | Units | Rooms | Units | Rooms | Units | Rooms | ||||||
Luxury | 177 | 48,874 | 311 | 73,553 | 488 | 122,427 | ||||||
JW Marriott | 28 | 15,681 | 56 | 21,502 | 84 | 37,183 | ||||||
The Ritz-Carlton | 39 | 11,398 | 57 | 15,555 | 96 | 26,953 | ||||||
The Ritz-Carlton Residences | 37 | 4,854 | 11 | 950 | 48 | 5,804 | ||||||
The Ritz-Carlton Serviced Apartments | — | — | 5 | 697 | 5 | 697 | ||||||
The Luxury Collection | 17 | 5,084 | 93 | 16,872 | 110 | 21,956 | ||||||
The Luxury Collection Residences | 2 | 151 | 2 | 85 | 4 | 236 | ||||||
W Hotels | 25 | 7,474 | 30 | 7,569 | 55 | 15,043 | ||||||
W Residences | 9 | 1,078 | 4 | 478 | 13 | 1,556 | ||||||
St. Regis | 10 | 1,977 | 31 | 7,062 | 41 | 9,039 | ||||||
St. Regis Residences | 7 | 585 | 7 | 593 | 14 | 1,178 | ||||||
EDITION | 2 | 567 | 6 | 1,301 | 8 | 1,868 | ||||||
EDITION Residences | 1 | 25 | — | — | 1 | 25 | ||||||
Bulgari | — | — | 6 | 523 | 6 | 523 | ||||||
Bulgari Residences | — | — | 3 | 366 | 3 | 366 | ||||||
Full-Service | 950 | 343,146 | 865 | 250,563 | 1,815 | 593,709 | ||||||
Marriott Hotels | 341 | 134,834 | 226 | 66,532 | 567 | 201,366 | ||||||
Sheraton | 190 | 72,674 | 251 | 82,943 | 441 | 155,617 | ||||||
Sheraton Residences | — | — | 2 | 262 | 2 | 262 | ||||||
Westin | 129 | 52,955 | 94 | 29,198 | 223 | 82,153 | ||||||
Westin Residences | 3 | 266 | 1 | 264 | 4 | 530 | ||||||
Renaissance | 88 | 29,104 | 87 | 25,995 | 175 | 55,099 | ||||||
Autograph Collection | 95 | 20,218 | 71 | 14,684 | 166 | 34,902 | ||||||
Le Méridien | 19 | 3,987 | 88 | 24,047 | 107 | 28,034 | ||||||
Delta Hotels | 61 | 14,905 | 2 | 562 | 63 | 15,467 | ||||||
Gaylord Hotels | 6 | 9,918 | — | — | 6 | 9,918 | ||||||
Tribute Portfolio | 18 | 4,285 | 13 | 1,636 | 31 | 5,921 | ||||||
Marriott Executive Apartments | — | — | 30 | 4,440 | 30 | 4,440 | ||||||
Limited-Service | 3,909 | 471,347 | 605 | 107,699 | 4,514 | 579,046 | ||||||
Courtyard | 1,027 | 143,389 | 172 | 35,049 | 1,199 | 178,438 | ||||||
Residence Inn | 789 | 97,335 | 14 | 1,746 | 803 | 99,081 | ||||||
Fairfield by Marriott | 940 | 88,052 | 39 | 6,236 | 979 | 94,288 | ||||||
SpringHill Suites | 414 | 48,959 | — | — | 414 | 48,959 | ||||||
Four Points | 152 | 23,015 | 119 | 26,129 | 271 | 49,144 | ||||||
TownePlace Suites | 388 | 39,231 | — | — | 388 | 39,231 | ||||||
Aloft | 108 | 16,296 | 51 | 11,056 | 159 | 27,352 | ||||||
AC Hotels by Marriott | 49 | 8,447 | 96 | 12,330 | 145 | 20,777 | ||||||
Protea Hotels | — | — | 80 | 8,265 | 80 | 8,265 | ||||||
Moxy | 11 | 2,235 | 26 | 5,342 | 37 | 7,577 | ||||||
Element | 31 | 4,388 | 8 | 1,546 | 39 | 5,934 | ||||||
Timeshare* | 70 | 18,313 | 19 | 3,873 | 89 | 22,186 | ||||||
Grand Total | 5,106 | 881,680 | 1,800 | 435,688 | 6,906 | 1,317,368 |
Comparable Company-Operated North American Properties | |||||||||||||||||||||
Three Months Ended December 31, 2018 and December 31, 2017 | |||||||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||||||
Brand | 2018 | vs. 2017 | 2018 | vs. 2017 | 2018 | vs. 2017 | |||||||||||||||
JW Marriott | $ | 162.31 | 1.3 | % | 71.6 | % | -0.9 | % | pts. | $ | 226.84 | 2.6 | % | ||||||||
The Ritz-Carlton | $ | 267.85 | 3.4 | % | 71.8 | % | -1.0 | % | pts. | $ | 373.05 | 4.8 | % | ||||||||
W Hotels | $ | 253.18 | 1.2 | % | 77.7 | % | -3.6 | % | pts. | $ | 325.92 | 5.8 | % | ||||||||
Composite North American Luxury 1 | $ | 253.63 | 2.0 | % | 72.9 | % | -2.3 | % | pts. | $ | 347.84 | 5.3 | % | ||||||||
Marriott Hotels | $ | 147.22 | 0.9 | % | 72.0 | % | -0.4 | % | pts. | $ | 204.47 | 1.5 | % | ||||||||
Sheraton | $ | 141.39 | -0.9 | % | 71.7 | % | -3.4 | % | pts. | $ | 197.23 | 3.8 | % | ||||||||
Westin | $ | 157.24 | -1.4 | % | 71.6 | % | -1.3 | % | pts. | $ | 219.52 | 0.4 | % | ||||||||
Composite North American Upper Upscale 2 | $ | 145.97 | 0.2 | % | 72.0 | % | -1.1 | % | pts. | $ | 202.86 | 1.8 | % | ||||||||
North American Full-Service 3 | $ | 164.02 | 0.7 | % | 72.1 | % | -1.3 | % | pts. | $ | 227.44 | 2.5 | % | ||||||||
Courtyard | $ | 95.75 | -1.0 | % | 68.2 | % | -1.3 | % | pts. | $ | 140.36 | 0.9 | % | ||||||||
Residence Inn | $ | 117.23 | 0.3 | % | 75.6 | % | -0.4 | % | pts. | $ | 155.05 | 0.8 | % | ||||||||
Composite North American Limited-Service 4 | $ | 101.57 | -0.6 | % | 70.7 | % | -1.0 | % | pts. | $ | 143.57 | 0.8 | % | ||||||||
North American - All 5 | $ | 144.15 | 0.4 | % | 71.7 | % | -1.2 | % | pts. | $ | 201.09 | 2.1 | % |
Comparable Systemwide North American Properties | |||||||||||||||||||||
Three Months Ended December 31, 2018 and December 31, 2017 | |||||||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||||||
Brand | 2018 | vs. 2017 | 2018 | vs. 2017 | 2018 | vs. 2017 | |||||||||||||||
JW Marriott | $ | 165.73 | 2.0 | % | 72.4 | % | -1.0 | % | pts. | $ | 228.91 | 3.3 | % | ||||||||
The Ritz-Carlton | $ | 267.85 | 3.4 | % | 71.8 | % | -1.0 | % | pts. | $ | 373.05 | 4.8 | % | ||||||||
W Hotels | $ | 253.18 | 1.2 | % | 77.7 | % | -3.6 | % | pts. | $ | 325.92 | 5.8 | % | ||||||||
Composite North American Luxury 1 | $ | 240.27 | 2.3 | % | 73.2 | % | -2.0 | % | pts. | $ | 328.30 | 5.1 | % | ||||||||
Marriott Hotels | $ | 122.36 | 1.3 | % | 68.3 | % | -0.4 | % | pts. | $ | 179.13 | 1.9 | % | ||||||||
Sheraton | $ | 107.34 | -0.7 | % | 67.0 | % | -2.4 | % | pts. | $ | 160.09 | 2.8 | % | ||||||||
Westin | $ | 143.66 | -0.4 | % | 70.4 | % | -1.1 | % | pts. | $ | 204.07 | 1.2 | % | ||||||||
Composite North American Upper Upscale 2 | $ | 125.43 | 0.7 | % | 69.1 | % | -0.8 | % | pts. | $ | 181.40 | 2.0 | % | ||||||||
North American Full-Service 3 | $ | 136.64 | 1.0 | % | 69.5 | % | -1.0 | % | pts. | $ | 196.48 | 2.4 | % | ||||||||
Courtyard | $ | 94.70 | -0.2 | % | 68.4 | % | -1.0 | % | pts. | $ | 138.37 | 1.3 | % | ||||||||
Residence Inn | $ | 108.80 | -0.3 | % | 75.1 | % | -0.9 | % | pts. | $ | 144.85 | 0.9 | % | ||||||||
Fairfield by Marriott | $ | 74.92 | -1.2 | % | 66.6 | % | -1.2 | % | pts. | $ | 112.50 | 0.5 | % | ||||||||
Composite North American Limited-Service 4 | $ | 91.37 | -0.8 | % | 69.7 | % | -1.4 | % | pts. | $ | 131.13 | 1.2 | % | ||||||||
North American - All 5 | $ | 111.00 | 0.2 | % | 69.6 | % | -1.2 | % | pts. | $ | 159.43 | 1.9 | % |
1 | Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION. |
2 | Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, Gaylord Hotels, and Le Méridien. Systemwide also includes Tribute Portfolio. |
3 | Includes Composite North American Luxury and Composite North American Upper Upscale. |
4 | Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, and AC Hotels by Marriott. Systemwide also includes Moxy. |
5 | Includes North American Full-Service and Composite North American Limited-Service. |
Comparable Company-Operated International Properties | |||||||||||||||||||||
Three Months Ended December 31, 2018 and December 31, 2017 | |||||||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||||||
Region | 2018 | vs. 2017 | 2018 | vs. 2017 | 2018 | vs. 2017 | |||||||||||||||
Greater China | $ | 95.61 | 3.5 | % | 73.1 | % | 0.5 | % | pts. | $ | 130.84 | 2.9 | % | ||||||||
Rest of Asia Pacific | $ | 133.38 | 8.6 | % | 76.8 | % | 2.0 | % | pts. | $ | 173.73 | 5.8 | % | ||||||||
Asia Pacific | $ | 109.64 | 5.8 | % | 74.5 | % | 1.0 | % | pts. | $ | 147.26 | 4.3 | % | ||||||||
Caribbean & Latin America | $ | 131.49 | 8.6 | % | 64.6 | % | -1.2 | % | pts. | $ | 203.56 | 10.7 | % | ||||||||
Europe | $ | 135.89 | 5.5 | % | 72.3 | % | 0.7 | % | pts. | $ | 187.95 | 4.6 | % | ||||||||
Middle East & Africa | $ | 113.81 | -5.9 | % | 70.2 | % | 1.5 | % | pts. | $ | 162.01 | -8.0 | % | ||||||||
International - All 1 | $ | 118.27 | 3.8 | % | 72.4 | % | 0.9 | % | pts. | $ | 163.41 | 2.5 | % | ||||||||
Worldwide 2 | $ | 131.17 | 1.9 | % | 72.0 | % | -0.2 | % | pts. | $ | 182.11 | 2.1 | % |
Comparable Systemwide International Properties | |||||||||||||||||||||
Three Months Ended December 31, 2018 and December 31, 2017 | |||||||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||||||
Region | 2018 | vs. 2017 | 2018 | vs. 2017 | 2018 | vs. 2017 | |||||||||||||||
Greater China | $ | 95.07 | 3.5 | % | 72.5 | % | 0.6 | % | pts. | $ | 131.13 | 2.7 | % | ||||||||
Rest of Asia Pacific | $ | 131.24 | 7.2 | % | 76.5 | % | 1.4 | % | pts. | $ | 171.49 | 5.2 | % | ||||||||
Asia Pacific | $ | 111.00 | 5.4 | % | 74.3 | % | 0.9 | % | pts. | $ | 149.45 | 4.1 | % | ||||||||
Caribbean & Latin America | $ | 102.10 | 6.8 | % | 62.1 | % | -1.7 | % | pts. | $ | 164.37 | 9.7 | % | ||||||||
Europe | $ | 124.73 | 5.7 | % | 72.9 | % | 1.0 | % | pts. | $ | 170.99 | 4.2 | % | ||||||||
Middle East & Africa | $ | 108.45 | -5.6 | % | 69.6 | % | 1.2 | % | pts. | $ | 155.91 | -7.2 | % | ||||||||
International - All 1 | $ | 113.66 | 4.0 | % | 71.7 | % | 0.7 | % | pts. | $ | 158.46 | 3.0 | % | ||||||||
Worldwide 2 | $ | 111.77 | 1.3 | % | 70.2 | % | -0.7 | % | pts. | $ | 159.15 | 2.2 | % |
1 | Includes Asia Pacific, Caribbean & Latin America, Europe, and Middle East & Africa. |
2 | Includes North American - All and International - All. |
Comparable Company-Operated North American Properties | |||||||||||||||||||||
Twelve Months Ended December 31, 2018 and December 31, 2017 | |||||||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||||||
Brand | 2018 | vs. 2017 | 2018 | vs. 2017 | 2018 | vs. 2017 | |||||||||||||||
JW Marriott | $ | 178.07 | 0.7 | % | 76.8 | % | -0.3 | % | pts. | $ | 231.79 | 1.1 | % | ||||||||
The Ritz-Carlton | $ | 276.13 | 4.4 | % | 74.0 | % | 0.1 | % | pts. | $ | 373.25 | 4.2 | % | ||||||||
W Hotels | $ | 249.18 | 1.8 | % | 81.0 | % | -1.3 | % | pts. | $ | 307.77 | 3.4 | % | ||||||||
Composite North American Luxury 1 | $ | 258.71 | 3.3 | % | 76.9 | % | -0.5 | % | pts. | $ | 336.58 | 3.9 | % | ||||||||
Marriott Hotels | $ | 153.97 | 2.3 | % | 76.4 | % | 0.3 | % | pts. | $ | 201.45 | 1.9 | % | ||||||||
Sheraton | $ | 145.39 | 2.0 | % | 76.6 | % | -0.4 | % | pts. | $ | 189.88 | 2.5 | % | ||||||||
Westin | $ | 164.58 | 0.7 | % | 75.7 | % | -0.3 | % | pts. | $ | 217.50 | 1.0 | % | ||||||||
Composite North American Upper Upscale 2 | $ | 151.44 | 1.9 | % | 76.0 | % | 0.0 | % | pts. | $ | 199.35 | 1.9 | % | ||||||||
North American Full-Service 3 | $ | 169.44 | 2.2 | % | 76.1 | % | -0.1 | % | pts. | $ | 222.60 | 2.3 | % | ||||||||
Courtyard | $ | 103.63 | 0.1 | % | 72.6 | % | -0.5 | % | pts. | $ | 142.82 | 0.8 | % | ||||||||
Residence Inn | $ | 126.43 | 0.1 | % | 79.2 | % | -0.7 | % | pts. | $ | 159.65 | 1.0 | % | ||||||||
Composite North American Limited-Service 4 | $ | 109.72 | 0.3 | % | 74.9 | % | -0.4 | % | pts. | $ | 146.55 | 0.8 | % | ||||||||
North American - All 5 | $ | 150.42 | 1.8 | % | 75.7 | % | -0.2 | % | pts. | $ | 198.66 | 2.0 | % |
Comparable Systemwide North American Properties | |||||||||||||||||||||
Twelve Months Ended December 31, 2018 and December 31, 2017 | |||||||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||||||
Brand | 2018 | vs. 2017 | 2018 | vs. 2017 | 2018 | vs. 2017 | |||||||||||||||
JW Marriott | $ | 179.40 | 1.7 | % | 77.4 | % | -0.1 | % | pts. | $ | 231.92 | 1.9 | % | ||||||||
The Ritz-Carlton | $ | 276.13 | 4.4 | % | 74.0 | % | 0.1 | % | pts. | $ | 373.25 | 4.2 | % | ||||||||
W Hotels | $ | 249.18 | 1.8 | % | 81.0 | % | -1.3 | % | pts. | $ | 307.77 | 3.4 | % | ||||||||
Composite North American Luxury 1 | $ | 245.35 | 3.5 | % | 77.0 | % | -0.3 | % | pts. | $ | 318.54 | 3.8 | % | ||||||||
Marriott Hotels | $ | 130.21 | 2.0 | % | 72.8 | % | 0.2 | % | pts. | $ | 178.97 | 1.7 | % | ||||||||
Sheraton | $ | 115.07 | 1.3 | % | 72.5 | % | -0.7 | % | pts. | $ | 158.74 | 2.3 | % | ||||||||
Westin | $ | 153.29 | 1.1 | % | 75.3 | % | -0.4 | % | pts. | $ | 203.66 | 1.6 | % | ||||||||
Composite North American Upper Upscale 2 | $ | 132.64 | 1.8 | % | 73.5 | % | -0.1 | % | pts. | $ | 180.54 | 1.9 | % | ||||||||
North American Full-Service 3 | $ | 143.64 | 2.1 | % | 73.8 | % | -0.1 | % | pts. | $ | 194.59 | 2.2 | % | ||||||||
Courtyard | $ | 102.38 | 0.6 | % | 72.9 | % | -0.1 | % | pts. | $ | 140.48 | 0.7 | % | ||||||||
Residence Inn | $ | 117.52 | 0.9 | % | 79.3 | % | 0.1 | % | pts. | $ | 148.27 | 0.7 | % | ||||||||
Fairfield by Marriott | $ | 82.32 | 1.1 | % | 71.6 | % | 0.3 | % | pts. | $ | 114.98 | 0.7 | % | ||||||||
Composite North American Limited-Service 4 | $ | 99.29 | 0.9 | % | 74.3 | % | 0.0 | % | pts. | $ | 133.61 | 1.0 | % | ||||||||
North American - All 5 | $ | 118.51 | 1.5 | % | 74.1 | % | -0.1 | % | pts. | $ | 159.94 | 1.6 | % |
1 | Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION. |
2 | Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, Gaylord Hotels, and Le Méridien. Systemwide also includes Tribute Portfolio. |
3 | Includes Composite North American Luxury and Composite North American Upper Upscale. |
4 | Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, and AC Hotels by Marriott. Systemwide also includes Moxy. |
5 | Includes North American Full-Service and Composite North American Limited-Service. |
Comparable Company-Operated International Properties | |||||||||||||||||||||
Twelve Months Ended December 31, 2018 and December 31, 2017 | |||||||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||||||
Region | 2018 | vs. 2017 | 2018 | vs. 2017 | 2018 | vs. 2017 | |||||||||||||||
Greater China | $ | 94.54 | 7.6 | % | 72.3 | % | 2.6 | % | pts. | $ | 130.77 | 3.7 | % | ||||||||
Rest of Asia Pacific | $ | 129.25 | 7.3 | % | 75.6 | % | 1.6 | % | pts. | $ | 170.99 | 5.0 | % | ||||||||
Asia Pacific | $ | 107.43 | 7.5 | % | 73.5 | % | 2.2 | % | pts. | $ | 146.14 | 4.2 | % | ||||||||
Caribbean & Latin America | $ | 131.52 | 8.6 | % | 64.8 | % | 0.1 | % | pts. | $ | 202.84 | 8.5 | % | ||||||||
Europe | $ | 151.86 | 4.8 | % | 74.0 | % | 0.7 | % | pts. | $ | 205.15 | 3.8 | % | ||||||||
Middle East & Africa | $ | 102.39 | (1.8 | )% | 66.4 | % | 2.4 | % | pts. | $ | 154.17 | -5.3 | % | ||||||||
International - All 1 | $ | 118.86 | 5.2 | % | 71.6 | % | 1.7 | % | pts. | $ | 165.91 | 2.7 | % | ||||||||
Worldwide 2 | $ | 134.58 | 3.3 | % | 73.7 | % | 0.8 | % | pts. | $ | 182.67 | 2.2 | % |
Comparable Systemwide International Properties | |||||||||||||||||||||
Twelve Months Ended December 31, 2018 and December 31, 2017 | |||||||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||||||
Region | 2018 | vs. 2017 | 2018 | vs. 2017 | 2018 | vs. 2017 | |||||||||||||||
Greater China | $ | 93.96 | 7.5 | % | 71.7 | % | 2.7 | % | pts. | $ | 131.07 | 3.5 | % | ||||||||
Rest of Asia Pacific | $ | 128.40 | 7.0 | % | 75.3 | % | 1.6 | % | pts. | $ | 170.43 | 4.7 | % | ||||||||
Asia Pacific | $ | 109.14 | 7.2 | % | 73.3 | % | 2.2 | % | pts. | $ | 148.90 | 4.0 | % | ||||||||
Caribbean & Latin America | $ | 104.77 | 7.4 | % | 63.2 | % | 0.1 | % | pts. | $ | 165.71 | 7.3 | % | ||||||||
Europe | $ | 134.10 | 5.8 | % | 73.0 | % | 1.4 | % | pts. | $ | 183.74 | 3.7 | % | ||||||||
Middle East & Africa | $ | 98.38 | -1.6 | % | 66.1 | % | 2.0 | % | pts. | $ | 148.87 | -4.6 | % | ||||||||
International - All 1 | $ | 114.56 | 5.5 | % | 70.9 | % | 1.7 | % | pts. | $ | 161.48 | 3.0 | % | ||||||||
Worldwide 2 | $ | 117.37 | 2.6 | % | 73.2 | % | 0.4 | % | pts. | $ | 160.37 | 2.0 | % |
1 | Includes Asia Pacific, Caribbean & Latin America, Europe, and Middle East & Africa. |
2 | Includes North American - All and International - All. |
Fiscal Year 2018 | |||||||||||||||||||
First Quarter 1 | Second Quarter 1 | Third Quarter 1 | Fourth Quarter | Total | |||||||||||||||
Net income | $ | 420 | $ | 667 | $ | 503 | $ | 317 | $ | 1,907 | |||||||||
Cost reimbursement revenue | (3,776 | ) | (4,048 | ) | (3,735 | ) | (3,984 | ) | (15,543 | ) | |||||||||
Reimbursed expenses | 3,808 | 3,964 | 3,855 | 4,151 | 15,778 | ||||||||||||||
Interest expense | 75 | 85 | 86 | 94 | 340 | ||||||||||||||
Interest expense from unconsolidated joint ventures | 2 | 3 | 2 | 3 | 10 | ||||||||||||||
Tax provision | 112 | 207 | 91 | 28 | 438 | ||||||||||||||
Depreciation and amortization | 54 | 58 | 52 | 62 | 226 | ||||||||||||||
Contract investment amortization | 18 | 13 | 13 | 14 | 58 | ||||||||||||||
Depreciation classified in reimbursed expenses | 33 | 34 | 39 | 41 | 147 | ||||||||||||||
Depreciation and amortization from unconsolidated joint ventures | 10 | 10 | 10 | 10 | 40 | ||||||||||||||
Share-based compensation | 38 | 47 | 43 | 43 | 171 | ||||||||||||||
Gain on asset dispositions | (58 | ) | (109 | ) | (16 | ) | (6 | ) | (189 | ) | |||||||||
Gain on investees’ property sales | — | (10 | ) | (55 | ) | — | (65 | ) | |||||||||||
Merger-related costs and charges | 34 | 18 | 12 | 91 | 155 | ||||||||||||||
Adjusted EBITDA ** | $ | 770 | $ | 939 | $ | 900 | $ | 864 | $ | 3,473 | |||||||||
Increase over 2017 Adjusted EBITDA ** | 8 | % | 15 | % | 12 | % | 10 | % | 11 | % |
Fiscal Year 2017 2 | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||||||||||||
Net income | $ | 371 | $ | 489 | $ | 485 | $ | 114 | $ | 1,459 | |||||||||
Cost reimbursement revenue | (3,736 | ) | (3,927 | ) | (3,830 | ) | (3,962 | ) | (15,455 | ) | |||||||||
Reimbursed expenses | 3,696 | 3,791 | 3,650 | 4,091 | 15,228 | ||||||||||||||
Interest expense | 70 | 73 | 73 | 72 | 288 | ||||||||||||||
Interest expense from unconsolidated joint ventures | 1 | 3 | 2 | 4 | 10 | ||||||||||||||
Tax provision | 123 | 227 | 253 | 920 | 1,523 | ||||||||||||||
Depreciation and amortization | 51 | 71 | 54 | 53 | 229 | ||||||||||||||
Contract investment amortization | 11 | 12 | 11 | 16 | 50 | ||||||||||||||
Depreciation classified in reimbursed expenses | 32 | 33 | 28 | 33 | 126 | ||||||||||||||
Depreciation and amortization from unconsolidated joint ventures | 11 | 10 | 10 | 11 | 42 | ||||||||||||||
Share-based compensation | 35 | 41 | 42 | 37 | 155 | ||||||||||||||
Gain on asset dispositions | — | (24 | ) | — | (659 | ) | (683 | ) | |||||||||||
Merger-related costs and charges | 51 | 21 | 28 | 59 | 159 | ||||||||||||||
Adjusted EBITDA ** | $ | 716 | $ | 820 | $ | 806 | $ | 789 | $ | 3,131 |
** | Denotes non-GAAP financial measures. Please see pages A-14 and A-15 for information about our reasons for providing these alternative financial measures and the limitations on their use. |
1 | Results for the 2018 full year and for the first, second, and third quarters of 2018 reflect the correction of certain immaterial errors of cost reimbursement revenue and reimbursed expenses in the previously reported 2018 first, second, and third quarters. The errors had no impact on our Adjusted operating income, Adjusted operating income margin, Adjusted net income, Adjusted diluted EPS, or Adjusted EBITDA non-GAAP measures. For more information, see our Annual Report on Form 10-K, which the company expects to file on March 1, 2019. |
2 | On January 1, 2018, we adopted ASU 2014-09. The table above reflects our recast 2017 results under the new accounting standard. |
Range | |||||||||||
Estimated First Quarter 2019 | Fourth Quarter 2018 ** | ||||||||||
Net income excluding certain items 1 | $ | 445 | $ | 464 | |||||||
Interest expense | 100 | 100 | |||||||||
Interest expense from unconsolidated joint ventures | — | — | |||||||||
Tax provision | 115 | 121 | |||||||||
Depreciation and amortization | 55 | 55 | |||||||||
Contract investment amortization | 15 | 15 | |||||||||
Depreciation classified in reimbursed expenses | 35 | 35 | |||||||||
Depreciation and amortization from unconsolidated joint ventures | 10 | 10 | |||||||||
Share-based compensation | 45 | 45 | |||||||||
Adjusted EBITDA ** | $ | 820 | $ | 845 | $ | 770 | |||||
Increase over 2018 Adjusted EBITDA** | 6 | % | 10 | % |
1 | Guidance excludes cost reimbursement revenue, reimbursed expenses, and merger-related costs and charges, which the company cannot accurately forecast and which may be significant, except for depreciation classified in reimbursed expenses, which is included in the caption “Depreciation classified in reimbursed expenses” above. |
Range | |||||||||||
Estimated Full Year 2019 | Full Year 2018 ** | ||||||||||
Net income excluding certain items 1 | $ | 1,967 | $ | 2,043 | |||||||
Interest expense | 415 | 415 | |||||||||
Interest expense from unconsolidated joint ventures | 10 | 10 | |||||||||
Tax provision | 593 | 617 | |||||||||
Depreciation and amortization | 215 | 215 | |||||||||
Contract investment amortization | 60 | 60 | |||||||||
Depreciation classified in reimbursed expenses | 135 | 135 | |||||||||
Depreciation and amortization from unconsolidated joint ventures | 35 | 35 | |||||||||
Share-based compensation | 185 | 185 | |||||||||
Adjusted EBITDA ** | $ | 3,615 | $ | 3,715 | $ | 3,473 | |||||
Increase over 2018 Adjusted EBITDA** | 4 | % | 7 | % |
1 | Guidance excludes cost reimbursement revenue, reimbursed expenses, and merger-related costs and charges, which the company cannot accurately forecast and which may be significant, except for depreciation classified in reimbursed expenses, which is included in the caption “Depreciation classified in reimbursed expenses” above. |
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