SUPPLEMENTARY DATA QUARTERLY FINANCIAL DATA - UNAUDITED

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

SUPPLEMENTARY DATA QUARTERLY FINANCIAL DATA - UNAUDITED

SUPPLEMENTARY DATA

QUARTERLY FINANCIAL DATA – UNAUDITED

($ in millions, except per share data)	2018
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	5,009	$	5,409	$	5,051	$	5,289	$	20,758
Operating income	$	530	$	818	$	596	$	422	$	2,366
Net income	$	420	$	667	$	503	$	317	$	1,907
Basic earnings per share (1)	$	1.17	$	1.89	$	1.45	$	0.93	$	5.45
Diluted earnings per share (1)	$	1.16	$	1.87	$	1.43	$	0.92	$	5.38

($ in millions, except per share data)	2017
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	4,912	$	5,211	$	5,078	$	5,251	$	20,452
Operating income	$	546	$	744	$	790	$	424	$	2,504
Net income	$	371	$	489	$	485	$	114	$	1,459
Basic earnings per share (1)	$	0.96	$	1.29	$	1.30	$	0.31	$	3.89
Diluted earnings per share (1)	$	0.95	$	1.28	$	1.29	$	0.31	$	3.84

⁽¹⁾  The sum of the earnings per share for the four quarters may differ from annual earnings per share due to the required method of computing the weighted average shares in interim periods.

In the 2018 fourth quarter, we identified errors related to our Loyalty Program, which resulted in the understatement of cost reimbursement revenue, net of reimbursed expenses in our previously issued financial statements for the 2018 first, second, and third quarters. Correction of the errors resulted in a $99 million increase to net income for the 2018 first three quarters combined. We concluded that the errors were and continue to be immaterial to those financial statements. We revised each prior period presented in the 2018 quarterly financial data table above to reflect the correction of the immaterial errors because recording the out of period adjustments would have been material to the 2018 fourth quarter. The table below presents the effects of our adjustments.

	2018
	First Quarter									Second Quarter									Third Quarter
($ in millions, except per share amounts)	As Previously Reported			Adjustments			As Adjusted			As Previously Reported			Adjustments			As Adjusted			As Previously Reported			Adjustments			As Adjusted
REVENUES
Base management fees	$	273		$	—		$	273		$	300		$	—		$	300		$	279		$	—		$	279
Franchise fees	417			—			417			475			—			475			502			—			502
Incentive management fees	155			—			155			176			—			176			151			—			151
Gross fee revenues	845			—			845			951			—			951			932			—			932
Contract investment amortization	(18		)	—			(18		)	(13		)	—			(13		)	(13		)	—			(13		)
Net fee revenues	827			—			827			938			—			938			919			—			919
Owned, leased, and other revenue	406			—			406			423			—			423			397			—			397
Cost reimbursement revenue	3,773			3			3,776			3,985			63			4,048			3,733			2			3,735
	5,006			3			5,009			5,346			63			5,409			5,049			2			5,051
OPERATING COSTS AND EXPENSES
Owned, leased, and other-direct	336			—			336			334			—			334			315			—			315
Depreciation, amortization, and other	54			—			54			58			—			58			52			—			52
General, administrative, and other	247			—			247			217			—			217			221			—			221
Merger-related costs and charges	34			—			34			18			—			18			12			—			12
Reimbursed expenses	3,835			(27		)	3,808			3,979			(15		)	3,964			3,879			(24		)	3,855
	4,506			(27		)	4,479			4,606			(15		)	4,591			4,479			(24		)	4,455
OPERATING INCOME	500			30			530			740			78			818			570			26			596
Gains and other income, net	59			—			59			114			—			114			18			—			18
Interest expense	(75		)	—			(75		)	(85		)	—			(85		)	(86		)	—			(86		)
Interest income	5			—			5			6			—			6			5			—			5
Equity in earnings	13			—			13			21			—			21			61			—			61
INCOME BEFORE INCOME TAXES	502			30			532			796			78			874			568			26			594
Provision for income taxes	(104		)	(8		)	(112		)	(186		)	(21		)	(207		)	(85		)	(6		)	(91		)
NET INCOME	$	398		$	22		$	420		$	610		$	57		$	667		$	483		$	20		$	503
EARNINGS PER SHARE
Earnings per share - basic	$	1.11		$	0.06		$	1.17		$	1.73		$	0.16		$	1.89		$	1.39		$	0.06		$	1.45
Earnings per share - diluted	$	1.09		$	0.07		$	1.16		$	1.71		$	0.16		$	1.87		$	1.38		$	0.05		$	1.43