Debt (Tables)

12 Months Ended

Dec. 31, 2013

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