|
Debt (Tables)
|
12 Months Ended |
|
Dec. 31, 2013
|
| Debt |
Debt consists of the following (in millions):
|
|
As of December 31, |
|
|
|
2013 |
|
|
2012 |
|
Series Q senior notes, with a rate of 6¾% due June 2016 |
|
$ |
150 |
|
|
$ |
550 |
|
Series T senior notes, with a rate of 9% due May 2017 |
|
|
— |
|
|
|
391 |
|
Series V senior notes, with a rate of 6% due November 2020 |
|
|
500 |
|
|
|
500 |
|
Series X senior notes, with a rate of 5⅞% due June 2019 |
|
|
497 |
|
|
|
497 |
|
Series Z senior notes, with a rate of 6% due October 2021 |
|
|
300 |
|
|
|
300 |
|
Series B senior notes, with a rate of 5¼% due March 2022 |
|
|
350 |
|
|
|
350 |
|
Series C senior notes, with a rate of 4¾% due March 2023 |
|
|
450 |
|
|
|
450 |
|
Series D senior notes, with a rate of 3¾% due October 2023 |
|
|
400 |
|
|
|
— |
|
2004 Exchangeable Senior Debentures, with a rate of 3¼% due April 2024 |
|
|
— |
|
|
|
175 |
|
2009 Exchangeable Senior Debentures, with a rate of 2½% due October 2029 |
|
|
371 |
|
|
|
356 |
|
Total senior notes |
|
|
3,018 |
|
|
|
3,569 |
|
Credit facility revolver |
|
|
446 |
|
|
|
263 |
|
Credit facility term loan due July 2017 |
|
|
500 |
|
|
|
500 |
|
Mortgage debt (non-recourse), with an average interest rate of 4.1% and 4.5% at December 31, 2013 and 2012, respectively, maturing through January 2024 |
|
|
709 |
|
|
|
993 |
|
Other |
|
|
86 |
|
|
|
86 |
|
Total debt |
|
$ |
4,759 |
|
|
$ |
5,411 |
|
|
| Interest Expense |
The following items are included in interest expense (in millions):
|
|
Year ended December 31, |
|
|
|
2013(1) |
|
|
2012(1) |
|
|
2011(1) |
|
Interest expense |
|
$ |
304 |
|
|
$ |
373 |
|
|
$ |
371 |
|
Amortization of debt premiums/discounts, net (2) |
|
|
(15 |
) |
|
|
(18 |
) |
|
|
(32 |
) |
Amortization of deferred financing costs |
|
|
(10 |
) |
|
|
(12 |
) |
|
|
(11 |
) |
Non-cash losses on debt extinguishments |
|
|
(13 |
) |
|
|
(9 |
) |
|
|
(4 |
) |
Change in accrued interest |
|
|
16 |
|
|
|
4 |
|
|
|
(4 |
) |
Interest paid (3) |
|
$ |
282 |
|
|
$ |
338 |
|
|
$ |
320 |
|
(1) | Interest expense and interest paid for 2013, 2012 and 2011 includes cash prepayment premiums of approximately $23 million, $21 million and $5 million, respectively. |
(2) | Primarily represents the amortization of the debt discount on our Debentures, which is non-cash interest expense. |
(3) | Does not include capitalized interest of $6 million, $6 million and $4 million during 2013, 2012 and 2011, respectively. |
|
| Mortgage Debt Issuances and Repayments |
We had the following mortgage debt issuances and repayments since January 2012:
|
|
|
|
|
|
|
|
Maturity |
|
|
|
|
Transaction Date |
|
Property |
|
Rate |
|
|
Date |
|
Amount |
|
Issuances/Assumptions |
|
|
|
|
|
|
|
|
|
(in millions) |
|
December 2013 |
|
Harbor Beach Marriott Resort & Spa |
|
|
4.75 |
% |
|
1/1/2024 |
|
$ |
150 |
|
June 2012 |
|
Hyatt Regency Reston (1) |
|
|
3.3 |
% |
|
7/1/2016 |
|
|
100 |
|
Repayments |
|
|
|
|
|
|
|
|
|
|
|
|
December 2013 |
|
Harbor Beach Marriott Resort & Spa |
|
|
5.55 |
% |
|
3/1/2014 |
|
|
(134 |
) |
December 2013 |
|
The Westin Denver Downtown |
|
|
8.51 |
% |
|
12/11/2023 |
|
|
(31 |
) |
May 2013 |
|
Orlando World Center Marriott |
|
|
4.75 |
% |
|
7/1/2013 |
|
|
(246 |
) |
April 2012 |
|
JW Marriott, Washington, D.C. (2) |
|
|
7.5 |
% |
|
4/2/2013 |
|
|
(113 |
) |
(1) | The floating interest rate is equal to 1-month LIBOR plus 310 basis points. The rate shown reflects the rate in effect at December 31, 2013. We have the option to extend the maturity for one year, subject to certain conditions. |
(2) | We prepaid the mortgage including an exit fee of $1 million. |
|
| Aggregate Debt Maturities |
Aggregate debt maturities are as follows (in millions):
|
|
As of |
|
|
|
December 31, 2013 |
|
2014 |
|
$ |
332 |
|
2015 (1) |
|
|
858 |
|
2016 (2) |
|
|
408 |
|
2017 |
|
|
540 |
|
2018 |
|
|
- |
|
Thereafter |
|
|
2,650 |
|
|
|
|
4,788 |
|
Unamortized (discounts) premiums, net |
|
|
(32 |
) |
Fair value hedge adjustment |
|
|
1 |
|
Capital lease obligations |
|
|
2 |
|
|
|
$ |
4,759 |
|
(1)Includes $225 million outstanding under the credit facility that was repaid in January 2014. (2)Includes $150 million Series Q senior notes that were repaid in February 2014. |
|
Convertible Debt
|
|
| Interest Expense |
Interest expense recorded for our exchangeable senior debentures (including interest expense for debentures redeemed in 2013 and 2012) consists of the following (in millions):
|
|
Year ended December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
Contractual interest expense (cash) |
|
$ |
10 |
|
|
$ |
19 |
|
|
$ |
31 |
|
Non-cash interest expense due to discount amortization |
|
|
15 |
|
|
|
17 |
|
|
|
31 |
|
Total interest expense |
|
$ |
25 |
|
|
$ |
36 |
|
|
$ |
62 |
|
|