Condensed Consolidating Guarantor Financial Information |
Condensed Consolidating Guarantor Financial Information
In October 2013, Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (the "Subsidiary Issuers"), entities formed in August 2013 which are 100 percent owned by the Parent, issued $1.5 billion of 5.625% senior notes due in 2021 (the "Senior Notes"). The obligations of the Subsidiary Issuers are guaranteed jointly and severally on a senior unsecured basis by the Parent and certain of the Parent's 100 percent owned domestic restricted subsidiaries (the "Guarantors"). The indenture that governs the Senior Notes provides that any subsidiary of the Company that provides a guarantee of a senior secured credit facility consisting of the Revolving Credit Facility and the Term Loans (the "Senior Secured Credit Facility") will guarantee the Senior Notes. None of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations; our non-wholly owned subsidiaries; our subsidiaries that secure the CMBS Loan and $544 million in mortgage loans; or certain of our special purpose subsidiaries formed in connection with our Timeshare Facility and Securitized Timeshare Debt guarantee the Senior Notes (collectively, the "Non-Guarantors").
The guarantees are full and unconditional, subject to certain customary release provisions. The indenture that governs the Senior Notes provides that any Guarantor may be released from its guarantee so long as: (a) the subsidiary is sold or sells all of its assets; (b) the subsidiary is released from its guaranty under the Senior Secured Credit Facility; (c) the subsidiary is declared "unrestricted" for covenant purposes; or (d) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied.
The following schedules present the condensed consolidating financial information as of September 30, 2015 and December 31, 2014, and for the three and nine months ended September 30, 2015 and 2014, for the Parent, Subsidiary Issuers, Guarantors and Non-Guarantors.
| | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2015 | Parent | | Subsidiary Issuers | | Guarantors | | Non-Guarantors | | Eliminations | | Total | | (in millions) | ASSETS | | | | | | | | | | | | Current Assets: | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 270 |
| | $ | 358 |
| | $ | — |
| | $ | 628 |
| Restricted cash and cash equivalents | — |
| | — |
| | 145 |
| | 131 |
| | — |
| | 276 |
| Accounts receivable, net | — |
| | — |
| | 523 |
| | 406 |
| | — |
| | 929 |
| Intercompany receivables | — |
| | — |
| | 27 |
| | — |
| | (27 | ) | | — |
| Inventories | — |
| | — |
| | 407 |
| | 23 |
| | — |
| | 430 |
| Deferred income tax assets | — |
| | — |
| | 9 |
| | 11 |
| | — |
| | 20 |
| Current portion of financing receivables, net | — |
| | — |
| | 48 |
| | 20 |
| | — |
| | 68 |
| Current portion of securitized financing receivables, net | — |
| | — |
| | — |
| | 56 |
| | — |
| | 56 |
| Prepaid expenses | — |
| | — |
| | 68 |
| | 117 |
| | (3 | ) | | 182 |
| Income taxes receivable | — |
| | — |
| | 21 |
| | — |
| | (2 | ) | | 19 |
| Other | — |
| | — |
| | 7 |
| | 31 |
| | — |
| | 38 |
| Total current assets | — |
| | — |
| | 1,525 |
| | 1,153 |
| | (32 | ) | | 2,646 |
| Property, Intangibles and Other Assets: | | | | | | | | | | | | Property and equipment, net | — |
| | — |
| | 292 |
| | 8,840 |
| | — |
| | 9,132 |
| Financing receivables, net | — |
| | — |
| | 399 |
| | 145 |
| | — |
| | 544 |
| Securitized financing receivables, net | — |
| | — |
| | — |
| | 321 |
| | — |
| | 321 |
| Investments in affiliates | — |
| | — |
| | 113 |
| | 41 |
| | — |
| | 154 |
| Investments in subsidiaries | 5,394 |
| | 11,202 |
| | 4,849 |
| | — |
| | (21,445 | ) | | — |
| Goodwill | — |
| | — |
| | 3,851 |
| | 2,051 |
| | — |
| | 5,902 |
| Brands | — |
| | — |
| | 4,405 |
| | 524 |
| | — |
| | 4,929 |
| Management and franchise contracts, net | — |
| | — |
| | 904 |
| | 272 |
| | — |
| | 1,176 |
| Other intangible assets, net | — |
| | — |
| | 410 |
| | 193 |
| | — |
| | 603 |
| Deferred income tax assets | 24 |
| | 7 |
| | — |
| | 157 |
| | (31 | ) | | 157 |
| Other | — |
| | 74 |
| | 151 |
| | 143 |
| | — |
| | 368 |
| Total property, intangibles and other assets | 5,418 |
| | 11,283 |
| | 15,374 |
| | 12,687 |
| | (21,476 | ) | | 23,286 |
| | | | | | | | | | | | | TOTAL ASSETS | $ | 5,418 |
| | $ | 11,283 |
| | $ | 16,899 |
| | $ | 13,840 |
| | $ | (21,508 | ) | | $ | 25,932 |
| | | | | | | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | | | Current Liabilities: | | | | | | | | | | | | Accounts payable, accrued expenses and other | $ | — |
| | $ | 60 |
| | $ | 1,484 |
| | $ | 720 |
| | $ | (3 | ) | | $ | 2,261 |
| Intercompany payables | — |
| | — |
| | — |
| | 27 |
| | (27 | ) | | — |
| Current maturities of long-term debt | — |
| | — |
| | — |
| | 116 |
| | — |
| | 116 |
| Current maturities of non-recourse debt | — |
| | — |
| | — |
| | 132 |
| | — |
| | 132 |
| Income taxes payable | — |
| | — |
| | — |
| | 51 |
| | (2 | ) | | 49 |
| Total current liabilities | — |
| | 60 |
| | 1,484 |
| | 1,046 |
| | (32 | ) | | 2,558 |
| Long-term debt | — |
| | 5,807 |
| | 54 |
| | 4,084 |
| | — |
| | 9,945 |
| Non-recourse debt | — |
| | — |
| | — |
| | 623 |
| | — |
| | 623 |
| Deferred revenues | — |
| | — |
| | 340 |
| | 1 |
| | — |
| | 341 |
| Deferred income tax liabilities | — |
| | — |
| | 2,301 |
| | 3,023 |
| | (31 | ) | | 5,293 |
| Liability for guest loyalty program | — |
| | — |
| | 754 |
| | — |
| | — |
| | 754 |
| Other | 204 |
| | 22 |
| | 764 |
| | 248 |
| | — |
| | 1,238 |
| Total liabilities | 204 |
| | 5,889 |
| | 5,697 |
| | 9,025 |
| | (63 | ) | | 20,752 |
| | | | | | | | | | | | | Equity: | | | | | | | | | | | | Total Hilton stockholders' equity | 5,214 |
| | 5,394 |
| | 11,202 |
| | 4,849 |
| | (21,445 | ) | | 5,214 |
| Noncontrolling interests | — |
| | — |
| | — |
| | (34 | ) | | — |
| | (34 | ) | Total equity | 5,214 |
| | 5,394 |
| | 11,202 |
| | 4,815 |
| | (21,445 | ) | | 5,180 |
| | | | | | | | | | | | | TOTAL LIABILITIES AND EQUITY | $ | 5,418 |
| | $ | 11,283 |
| | $ | 16,899 |
| | $ | 13,840 |
| | $ | (21,508 | ) | | $ | 25,932 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2014 | Parent | | Subsidiary Issuers | | Guarantors | | Non-Guarantors | | Eliminations | | Total | | (in millions) | ASSETS | | | | | | | | | | | | Current Assets: | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 270 |
| | $ | 296 |
| | $ | — |
| | $ | 566 |
| Restricted cash and cash equivalents | — |
| | — |
| | 135 |
| | 67 |
| | — |
| | 202 |
| Accounts receivable, net | — |
| | — |
| | 478 |
| | 366 |
| | — |
| | 844 |
| Intercompany receivables | — |
| | — |
| | 46 |
| | — |
| | (46 | ) | | — |
| Inventories | — |
| | — |
| | 380 |
| | 24 |
| | — |
| | 404 |
| Deferred income tax assets | — |
| | — |
| | 10 |
| | 10 |
| | — |
| | 20 |
| Current portion of financing receivables, net | — |
| | — |
| | 47 |
| | 19 |
| | — |
| | 66 |
| Current portion of securitized financing receivables, net | — |
| | — |
| | — |
| | 62 |
| | — |
| | 62 |
| Prepaid expenses | — |
| | — |
| | 29 |
| | 124 |
| | (20 | ) | | 133 |
| Income taxes receivable | — |
| | — |
| | 154 |
| | — |
| | (22 | ) | | 132 |
| Other | — |
| | — |
| | 5 |
| | 65 |
| | — |
| | 70 |
| Total current assets | — |
| | — |
| | 1,554 |
| | 1,033 |
| | (88 | ) | | 2,499 |
| Property, Intangibles and Other Assets: | | | | | | | | | | | | Property and equipment, net | — |
| | — |
| | 305 |
| | 7,178 |
| | — |
| | 7,483 |
| Property and equipment, net held for sale | — |
| | — |
| | — |
| | 1,543 |
| | — |
| | 1,543 |
| Financing receivables, net | — |
| | — |
| | 272 |
| | 144 |
| | — |
| | 416 |
| Securitized financing receivables, net | — |
| | — |
| | — |
| | 406 |
| | — |
| | 406 |
| Investments in affiliates | — |
| | — |
| | 123 |
| | 47 |
| | — |
| | 170 |
| Investments in subsidiaries | 4,924 |
| | 11,361 |
| | 4,935 |
| | — |
| | (21,220 | ) | | — |
| Goodwill | — |
| | — |
| | 3,847 |
| | 2,307 |
| | — |
| | 6,154 |
| Brands | — |
| | — |
| | 4,405 |
| | 558 |
| | — |
| | 4,963 |
| Management and franchise contracts, net | — |
| | — |
| | 1,007 |
| | 299 |
| | — |
| | 1,306 |
| Other intangible assets, net | — |
| | — |
| | 466 |
| | 208 |
| | — |
| | 674 |
| Deferred income tax assets | 22 |
| | 1 |
| | — |
| | 155 |
| | (23 | ) | | 155 |
| Other | — |
| | 85 |
| | 119 |
| | 152 |
| | — |
| | 356 |
| Total property, intangibles and other assets | 4,946 |
| | 11,447 |
| | 15,479 |
| | 12,997 |
| | (21,243 | ) | | 23,626 |
| | | | | | | | | | | | | TOTAL ASSETS | $ | 4,946 |
| | $ | 11,447 |
| | $ | 17,033 |
| | $ | 14,030 |
| | $ | (21,331 | ) | | $ | 26,125 |
| | | | | | | | | | | | | LIABILITIES AND EQUITY | | | | | | | | | | | | Current Liabilities: | | | | | | | | | | | | Accounts payable, accrued expenses and other | $ | — |
| | $ | 40 |
| | $ | 1,384 |
| | $ | 695 |
| | $ | (20 | ) | | $ | 2,099 |
| Intercompany payables | — |
| | — |
| | — |
| | 46 |
| | (46 | ) | | — |
| Current maturities of long-term debt | — |
| | — |
| | — |
| | 10 |
| | — |
| | 10 |
| Current maturities of non-recourse debt | — |
| | — |
| | — |
| | 127 |
| | — |
| | 127 |
| Income taxes payable | — |
| | — |
| | 5 |
| | 38 |
| | (22 | ) | | 21 |
| Total current liabilities | — |
| | 40 |
| | 1,389 |
| | 916 |
| | (88 | ) | | 2,257 |
| Long-term debt | — |
| | 6,479 |
| | 54 |
| | 4,270 |
| | — |
| | 10,803 |
| Non-recourse debt | — |
| | — |
| | — |
| | 752 |
| | — |
| | 752 |
| Deferred revenues | — |
| | — |
| | 493 |
| | 2 |
| | — |
| | 495 |
| Deferred income tax liabilities | — |
| | — |
| | 2,306 |
| | 2,933 |
| | (23 | ) | | 5,216 |
| Liability for guest loyalty program | — |
| | — |
| | 720 |
| | — |
| | — |
| | 720 |
| Other | 194 |
| | 4 |
| | 710 |
| | 260 |
| | — |
| | 1,168 |
| Total liabilities | 194 |
| | 6,523 |
| | 5,672 |
| | 9,133 |
| | (111 | ) | | 21,411 |
| | | | | | | | | | | | | Equity: | | | | | | | | | | | | Total Hilton stockholders' equity | 4,752 |
| | 4,924 |
| | 11,361 |
| | 4,935 |
| | (21,220 | ) | | 4,752 |
| Noncontrolling interests | — |
| | — |
| | — |
| | (38 | ) | | — |
| | (38 | ) | Total equity | 4,752 |
| | 4,924 |
| | 11,361 |
| | 4,897 |
| | (21,220 | ) | | 4,714 |
| | | | | | | | | | | | | TOTAL LIABILITIES AND EQUITY | $ | 4,946 |
| | $ | 11,447 |
| | $ | 17,033 |
| | $ | 14,030 |
| | $ | (21,331 | ) | | $ | 26,125 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2015 | | Parent | | Subsidiary Issuers | | Guarantors | | Non-Guarantors | | Eliminations | | Total | | (in millions) | Revenues | | | | | | | | | | | | Owned and leased hotels | $ | — |
| | $ | — |
| | $ | 64 |
| | $ | 1,025 |
| | $ | (7 | ) | | $ | 1,082 |
| Management and franchise fees and other | — |
| | — |
| | 355 |
| | 86 |
| | (25 | ) | | 416 |
| Timeshare | — |
| | — |
| | 314 |
| | 20 |
| | — |
| | 334 |
| | — |
| | — |
| | 733 |
| | 1,131 |
| | (32 | ) | | 1,832 |
| Other revenues from managed and franchised properties | — |
| | — |
| | 1,199 |
| | 116 |
| | (252 | ) | | 1,063 |
| Total revenues | — |
| | — |
| | 1,932 |
| | 1,247 |
| | (284 | ) | | 2,895 |
| | | | | | | | | | | | | Expenses | | | | | | | | | | | | Owned and leased hotels | — |
| | — |
| | 46 |
| | 773 |
| | (21 | ) | | 798 |
| Timeshare | — |
| | — |
| | 221 |
| | 4 |
| | (6 | ) | | 219 |
| Depreciation and amortization | — |
| | — |
| | 82 |
| | 89 |
| | — |
| | 171 |
| General, administrative and other | — |
| | — |
| | 117 |
| | 33 |
| | (5 | ) | | 145 |
| | — |
| | — |
| | 466 |
| | 899 |
| | (32 | ) | | 1,333 |
| Other expenses from managed and franchised properties | — |
| | — |
| | 1,199 |
| | 116 |
| | (252 | ) | | 1,063 |
| Total expenses | — |
| | — |
| | 1,665 |
| | 1,015 |
| | (284 | ) | | 2,396 |
| | | | | | | | | | | | | Gain on sales of assets, net | — |
| | — |
| | — |
| | 164 |
| | — |
| | 164 |
| | | | | | | | | | | | | Operating income | — |
| | — |
| | 267 |
| | 396 |
| | — |
| | 663 |
| | | | | | | | | | | | | Interest income | — |
| | — |
| | 2 |
| | 1 |
| | — |
| | 3 |
| Interest expense | — |
| | (69 | ) | | (9 | ) | | (60 | ) | | — |
| | (138 | ) | Equity in earnings from unconsolidated affiliates | — |
| | — |
| | 7 |
| | 2 |
| | — |
| | 9 |
| Gain (loss) on foreign currency transactions | — |
| | — |
| | 213 |
| | (221 | ) | | — |
| | (8 | ) | Other gain, net | — |
| | — |
| | — |
| | 1 |
| | — |
| | 1 |
| | | | | | | | | | | | | Income (loss) before income taxes and equity in earnings from subsidiaries | — |
| | (69 | ) | | 480 |
| | 119 |
| | — |
| | 530 |
| | | | | | | | | | | | | Income tax benefit (expense) | (1 | ) | | 27 |
| | (200 | ) | | (73 | ) | | — |
| | (247 | ) | | | | | | | | | | | | | Income (loss) before equity in earnings from subsidiaries | (1 | ) | | (42 | ) | | 280 |
| | 46 |
| | — |
| | 283 |
| | | | | | | | | | | | | Equity in earnings from subsidiaries | 280 |
| | 322 |
| | 42 |
| | — |
| | (644 | ) | | — |
| | | | | | | | | | | | | Net income | 279 |
| | 280 |
| | 322 |
| | 46 |
| | (644 | ) | | 283 |
| Net income attributable to noncontrolling interests | — |
| | — |
| | — |
| | (4 | ) | | — |
| | (4 | ) | Net income attributable to Hilton stockholders | $ | 279 |
| | $ | 280 |
| | $ | 322 |
| | $ | 42 |
| | $ | (644 | ) | | $ | 279 |
| | | | | | | | | | | | | Comprehensive income | $ | 159 |
| | $ | 274 |
| | $ | 301 |
| | $ | (47 | ) | | $ | (524 | ) | | $ | 163 |
| Comprehensive income attributable to noncontrolling interests | — |
| | — |
| | — |
| | (4 | ) | | — |
| | (4 | ) | Comprehensive income attributable to Hilton stockholders | $ | 159 |
| | $ | 274 |
| | $ | 301 |
| | $ | (51 | ) | | $ | (524 | ) | | $ | 159 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2014 | | Parent | | Subsidiary Issuers | | Guarantors | | Non-Guarantors | | Eliminations | | Total | | (in millions) | Revenues | | | | | | | | | | | | Owned and leased hotels | $ | — |
| | $ | — |
| | $ | 60 |
| | $ | 1,026 |
| | $ | (7 | ) | | $ | 1,079 |
| Management and franchise fees and other | — |
| | — |
| | 299 |
| | 84 |
| | (19 | ) | | 364 |
| Timeshare | — |
| | — |
| | 271 |
| | 24 |
| | — |
| | 295 |
| | — |
| | — |
| | 630 |
| | 1,134 |
| | (26 | ) | | 1,738 |
| Other revenues from managed and franchised properties | — |
| | — |
| | 1,019 |
| | 107 |
| | (220 | ) | | 906 |
| Total revenues | — |
| | — |
| | 1,649 |
| | 1,241 |
| | (246 | ) | | 2,644 |
| | | | | | | | | | | | | Expenses | | | | | | | | | | | | Owned and leased hotels | — |
| | — |
| | 41 |
| | 793 |
| | (18 | ) | | 816 |
| Timeshare | — |
| | — |
| | 200 |
| | 5 |
| | (6 | ) | | 199 |
| Depreciation and amortization | — |
| | — |
| | 78 |
| | 81 |
| | — |
| | 159 |
| General, administrative and other | — |
| | — |
| | 94 |
| | 27 |
| | (2 | ) | | 119 |
| | — |
| | — |
| | 413 |
| | 906 |
| | (26 | ) | | 1,293 |
| Other expenses from managed and franchised properties | — |
| | — |
| | 1,019 |
| | 107 |
| | (220 | ) | | 906 |
| Total expenses | — |
| | — |
| | 1,432 |
| | 1,013 |
| | (246 | ) | | 2,199 |
| | | | | | | | | | | | | Operating income | — |
| | — |
| | 217 |
| | 228 |
| | — |
| | 445 |
| | | | | | | | | | | | | Interest income | — |
| | — |
| | 2 |
| | — |
| | — |
| | 2 |
| Interest expense | — |
| | (83 | ) | | (15 | ) | | (58 | ) | | — |
| | (156 | ) | Equity in earnings from unconsolidated affiliates | — |
| | — |
| | 3 |
| | 1 |
| | — |
| | 4 |
| Gain (loss) on foreign currency transactions | — |
| | — |
| | 205 |
| | (210 | ) | | — |
| | (5 | ) | Other gain, net | — |
| | — |
| | — |
| | 24 |
| | — |
| | 24 |
| | | | | | | | | | | | | Income (loss) before income taxes and equity in earnings from subsidiaries | — |
| | (83 | ) | | 412 |
| | (15 | ) | | — |
| | 314 |
| | | | | | | | | | | | | Income tax benefit (expense) | (1 | ) | | 32 |
| | (160 | ) | | 2 |
| | — |
| | (127 | ) | | | | | | | | | | | | | Income (loss) before equity in earnings from subsidiaries | (1 | ) | | (51 | ) | | 252 |
| | (13 | ) | | — |
| | 187 |
| | | | | | | | | | | | | Equity in earnings from subsidiaries | 184 |
| | 235 |
| | (17 | ) | | — |
| | (402 | ) | | — |
| | | | | | | | | | | | | Net income | 183 |
| | 184 |
| | 235 |
| | (13 | ) | | (402 | ) | | 187 |
| Net income attributable to noncontrolling interests | — |
| | — |
| | — |
| | (4 | ) | | — |
| | (4 | ) | Net income attributable to Hilton stockholders | $ | 183 |
| | $ | 184 |
| | $ | 235 |
| | $ | (17 | ) | | $ | (402 | ) | | $ | 183 |
| | | | | | | | | | | | | Comprehensive income | $ | (29 | ) | | $ | 189 |
| | $ | 282 |
| | $ | (273 | ) | | $ | (190 | ) | | $ | (21 | ) | Comprehensive income attributable to noncontrolling interests | — |
| | — |
| | — |
| | (8 | ) | | — |
| | (8 | ) | Comprehensive income attributable to Hilton stockholders | $ | (29 | ) | | $ | 189 |
| | $ | 282 |
| | $ | (281 | ) | | $ | (190 | ) | | $ | (29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2015 | | Parent | | Subsidiary Issuers | | Guarantors | | Non-Guarantors | | Eliminations | | Total | | (in millions) | Revenues | | | | | | | | | | | | Owned and leased hotels | $ | — |
| | $ | — |
| | $ | 177 |
| | $ | 3,016 |
| | $ | (19 | ) | | $ | 3,174 |
| Management and franchise fees and other | — |
| | — |
| | 1,026 |
| | 243 |
| | (75 | ) | | 1,194 |
| Timeshare | — |
| | — |
| | 911 |
| | 63 |
| | — |
| | 974 |
| | — |
| | — |
| | 2,114 |
| | 3,322 |
| | (94 | ) | | 5,342 |
| Other revenues from managed and franchised properties | — |
| | — |
| | 3,449 |
| | 345 |
| | (720 | ) | | 3,074 |
| Total revenues | — |
| | — |
| | 5,563 |
| | 3,667 |
| | (814 | ) | | 8,416 |
| | | | | | | | | | | | | Expenses | | | | | | | | | | | | Owned and leased hotels | — |
| | — |
| | 128 |
| | 2,321 |
| | (66 | ) | | 2,383 |
| Timeshare | — |
| | — |
| | 678 |
| | 12 |
| | (17 | ) | | 673 |
| Depreciation and amortization | — |
| | — |
| | 255 |
| | 264 |
| | — |
| | 519 |
| General, administrative and other | — |
| | — |
| | 405 |
| | 99 |
| | (11 | ) | | 493 |
| | — |
| | — |
| | 1,466 |
| | 2,696 |
| | (94 | ) | | 4,068 |
| Other expenses from managed and franchised properties | — |
| | — |
| | 3,449 |
| | 345 |
| | (720 | ) | | 3,074 |
| Total expenses | — |
| | — |
| | 4,915 |
| | 3,041 |
| | (814 | ) | | 7,142 |
| | | | | | | | | | | | | Gain on sales of assets, net | — |
| | — |
| | — |
| | 306 |
| | — |
| | 306 |
| | | | | | | | | | | | | Operating income | — |
| | — |
| | 648 |
| | 932 |
| | — |
| | 1,580 |
| | | | | | | | | | | | | Interest income | — |
| | — |
| | 9 |
| | 2 |
| | — |
| | 11 |
| Interest expense | — |
| | (213 | ) | | (37 | ) | | (181 | ) | | — |
| | (431 | ) | Equity in earnings from unconsolidated affiliates | — |
| | — |
| | 18 |
| | 4 |
| | — |
| | 22 |
| Gain (loss) on foreign currency transactions | — |
| | — |
| | 73 |
| | (94 | ) | | — |
| | (21 | ) | Other loss, net | — |
| | — |
| | — |
| | (6 | ) | | — |
| | (6 | ) | | | | | | | | | | | | | Income (loss) before income taxes and equity in earnings from subsidiaries | — |
| | (213 | ) | | 711 |
| | 657 |
| | — |
| | 1,155 |
| | | | | | | | | | | | | Income tax benefit (expense) | (6 | ) | | 82 |
| | (299 | ) | | (332 | ) | | — |
| | (555 | ) | | | | | | | | | | | | | Income (loss) before equity in earnings from subsidiaries | (6 | ) | | (131 | ) | | 412 |
| | 325 |
| | — |
| | 600 |
| | | | | | | | | | | | | Equity in earnings from subsidiaries | 596 |
| | 727 |
| | 315 |
| | — |
| | (1,638 | ) | | — |
| | | | | | | | | | | | | Net income | 590 |
| | 596 |
| | 727 |
| | 325 |
| | (1,638 | ) | | 600 |
| Net income attributable to noncontrolling interests | — |
| | — |
| | — |
| | (10 | ) | | — |
| | (10 | ) | Net income attributable to Hilton stockholders | $ | 590 |
| | $ | 596 |
| | $ | 727 |
| | $ | 315 |
| | $ | (1,638 | ) | | $ | 590 |
| | | | | | | | | | | | | Comprehensive income | $ | 425 |
| | $ | 585 |
| | $ | 709 |
| | $ | 189 |
| | $ | (1,473 | ) | | $ | 435 |
| Comprehensive income attributable to noncontrolling interests | — |
| | — |
| | — |
| | (10 | ) | | — |
| | (10 | ) | Comprehensive income attributable to Hilton stockholders | $ | 425 |
| | $ | 585 |
| | $ | 709 |
| | $ | 179 |
| | $ | (1,473 | ) | | $ | 425 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2014 | | Parent | | Subsidiary Issuers | | Guarantors | | Non-Guarantors | | Eliminations | | Total | | (in millions) | Revenues | | | | | | | | | | | | Owned and leased hotels | $ | — |
| | $ | — |
| | $ | 163 |
| | $ | 2,999 |
| | $ | (21 | ) | | $ | 3,141 |
| Management and franchise fees and other | — |
| | — |
| | 873 |
| | 239 |
| | (82 | ) | | 1,030 |
| Timeshare | — |
| | — |
| | 777 |
| | 73 |
| | — |
| | 850 |
| | — |
| | — |
| | 1,813 |
| | 3,311 |
| | (103 | ) | | 5,021 |
| Other revenues from managed and franchised properties | — |
| | — |
| | 2,996 |
| | 300 |
| | (643 | ) | | 2,653 |
| Total revenues | — |
| | — |
| | 4,809 |
| | 3,611 |
| | (746 | ) | | 7,674 |
| | | | | | | | | | | | | Expenses | | | | | | | | | | | | Owned and leased hotels | — |
| | — |
| | 116 |
| | 2,360 |
| | (56 | ) | | 2,420 |
| Timeshare | — |
| | — |
| | 590 |
| | 14 |
| | (40 | ) | | 564 |
| Depreciation and amortization | — |
| | — |
| | 228 |
| | 242 |
| | — |
| | 470 |
| General, administrative and other | — |
| | — |
| | 275 |
| | 81 |
| | (7 | ) | | 349 |
| | — |
| | — |
| | 1,209 |
| | 2,697 |
| | (103 | ) | | 3,803 |
| Other expenses from managed and franchised properties | — |
| | — |
| | 2,996 |
| | 300 |
| | (643 | ) | | 2,653 |
| Total expenses | — |
| | — |
| | 4,205 |
| | 2,997 |
| | (746 | ) | | 6,456 |
| | | | | | | | | | | | | Operating income | — |
| | — |
| | 604 |
| | 614 |
| | — |
| | 1,218 |
| | | | | | | | | | | | | Interest income | — |
| | — |
| | 6 |
| | 2 |
| | — |
| | 8 |
| Interest expense | — |
| | (255 | ) | | (42 | ) | | (170 | ) | | — |
| | (467 | ) | Equity in earnings from unconsolidated affiliates | — |
| | — |
| | 13 |
| | 3 |
| | — |
| | 16 |
| Gain (loss) on foreign currency transactions | — |
| | — |
| | 248 |
| | (207 | ) | | — |
| | 41 |
| Other gain, net | — |
| | — |
| | 6 |
| | 32 |
| | — |
| | 38 |
| | | | | | | | | | | | | Income (loss) before income taxes and equity in earnings from subsidiaries | — |
| | (255 | ) | | 835 |
| | 274 |
| | — |
| | 854 |
| | | | | | | | | | | | | Income tax benefit (expense) | (5 | ) | | 98 |
| | (327 | ) | | (97 | ) | | — |
| | (331 | ) | | | | | | | | | | | | | Income (loss) before equity in earnings from subsidiaries | (5 | ) | | (157 | ) | | 508 |
| | 177 |
| | — |
| | 523 |
| | | | | | | | | | | | | Equity in earnings from subsidiaries | 520 |
| | 677 |
| | 169 |
| | — |
| | (1,366 | ) | | — |
| | | | | | | | | | | | | Net income | 515 |
| | 520 |
| | 677 |
| | 177 |
| | (1,366 | ) | | 523 |
| Net income attributable to noncontrolling interests | — |
| | — |
| | — |
| | (8 | ) | | — |
| | (8 | ) | Net income attributable to Hilton stockholders | $ | 515 |
| | $ | 520 |
| | $ | 677 |
| | $ | 169 |
| | $ | (1,366 | ) | | $ | 515 |
| | | | | | | | | | | | | Comprehensive income | $ | 381 |
| | $ | 516 |
| | $ | 697 |
| | $ | 29 |
| | $ | (1,232 | ) | | $ | 391 |
| Comprehensive income attributable to noncontrolling interests | — |
| | — |
| | — |
| | (10 | ) | | — |
| | (10 | ) | Comprehensive income attributable to Hilton stockholders | $ | 381 |
| | $ | 516 |
| | $ | 697 |
| | $ | 19 |
| | $ | (1,232 | ) | | $ | 381 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2015 | | Parent | | Subsidiary Issuers | | Guarantors | | Non-Guarantors | | Eliminations | | Total | | (in millions) | Operating Activities: | | | | | | | | | | | | Net cash provided by operating activities | $ | — |
| | $ | — |
| | $ | 722 |
| | $ | 456 |
| | $ | (187 | ) | | $ | 991 |
| | | | | | | | | | | | | Investing Activities: | | | | | | | | | | | | Capital expenditures for property and equipment | — |
| | — |
| | (19 | ) | | (195 | ) | | — |
| | (214 | ) | Acquisitions, net of cash acquired | — |
| | — |
| | — |
| | (1,410 | ) | | — |
| | (1,410 | ) | Payments received on other financing receivables | — |
| | — |
| | 1 |
| | 2 |
| | — |
| | 3 |
| Issuance of other financing receivables | — |
| | — |
| | (7 | ) | | (2 | ) | | — |
| | (9 | ) | Investments in affiliates | — |
| | — |
| | (5 | ) | | — |
| | — |
| | (5 | ) | Distributions from unconsolidated affiliates | — |
| | — |
| | 18 |
| | — |
| | — |
| | 18 |
| Issuance of intercompany receivables | — |
| | — |
| | (184 | ) | | — |
| | 184 |
| | — |
| Payments received on intercompany receivables | — |
| | — |
| | 184 |
| | — |
| | (184 | ) | | — |
| Proceeds from asset dispositions | — |
| | — |
| | — |
| | 2,197 |
| | — |
| | 2,197 |
| Contract acquisition costs | — |
| | — |
| | (14 | ) | | (13 | ) | | — |
| | (27 | ) | Software capitalization costs | — |
| | — |
| | (38 | ) | | — |
| | — |
| | (38 | ) | Net cash provided by (used in) investing activities | — |
| | — |
| | (64 | ) | | 579 |
| | — |
| | 515 |
| | | | | | | | | | | | | Financing Activities: | | | | | | | | | | | | Borrowings | — |
| | — |
| | — |
| | 35 |
| | — |
| | 35 |
| Repayment of debt | — |
| | (675 | ) | | — |
| | (667 | ) | | — |
| | (1,342 | ) | Intercompany borrowings | — |
| | — |
| | — |
| | 184 |
| | (184 | ) | | — |
| Repayment of intercompany borrowings | — |
| | — |
| | — |
| | (184 | ) | | 184 |
| | — |
| Change in restricted cash and cash equivalents | — |
| | — |
| | — |
| | (53 | ) | | — |
| | (53 | ) | Intercompany transfers | 69 |
| | 675 |
| | (666 | ) | | (78 | ) | | — |
| | — |
| Dividends paid | (69 | ) | | — |
| | — |
| | — |
| | — |
| | (69 | ) | Dividends paid to Guarantors | — |
| | — |
| | — |
| | (187 | ) | | 187 |
| | — |
| Distributions to noncontrolling interests | — |
| | — |
| | — |
| | (6 | ) | | — |
| | (6 | ) | Excess tax benefits from share-based compensation | — |
| | — |
| | 8 |
| | — |
| | — |
| | 8 |
| Net cash used in financing activities | — |
| | — |
| | (658 | ) | | (956 | ) | | 187 |
| | (1,427 | ) | | | | | | | | | | | | | Effect of exchange rate changes on cash and cash equivalents | — |
| | — |
| | — |
| | (17 | ) | | — |
| | (17 | ) | Net increase in cash and cash equivalents | — |
| | — |
| | — |
| | 62 |
| | — |
| | 62 |
| Cash and cash equivalents, beginning of period | — |
| | — |
| | 270 |
| | 296 |
| | — |
| | 566 |
| | | | | | | | | | | | | Cash and cash equivalents, end of period | $ | — |
| | $ | — |
| | $ | 270 |
| | $ | 358 |
| | $ | — |
| | $ | 628 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2014 | | Parent | | Subsidiary Issuers | | Guarantors | | Non-Guarantors | | Eliminations | | Total | | (in millions) | Operating Activities: | | | | | | | | | | | | Net cash provided by operating activities | $ | — |
| | $ | — |
| | $ | 761 |
| | $ | 345 |
| | $ | (207 | ) | | $ | 899 |
| | | | | | | | | | | | | Investing Activities: | | | | | | | | | | | | Capital expenditures for property and equipment | — |
| | — |
| | (13 | ) | | (171 | ) | | — |
| | (184 | ) | Payments received on other financing receivables | — |
| | — |
| | 16 |
| | 2 |
| | — |
| | 18 |
| Issuance of other financing receivables | — |
| | — |
| | — |
| | (1 | ) | | — |
| | (1 | ) | Investments in affiliates | — |
| | — |
| | (6 | ) | | — |
| | — |
| | (6 | ) | Distributions from unconsolidated affiliates | — |
| | — |
| | 30 |
| | 2 |
| | — |
| | 32 |
| Proceeds from asset dispositions | — |
| | — |
| | 6 |
| | 34 |
| | — |
| | 40 |
| Contract acquisition costs | — |
| | — |
| | (13 | ) | | (41 | ) | | — |
| | (54 | ) | Software capitalization costs | — |
| | — |
| | (45 | ) | | — |
| | — |
| | (45 | ) | Net cash used in investing activities | — |
| | — |
| | (25 | ) | | (175 | ) | | — |
| | (200 | ) | | | | | | | | | | | | | Financing Activities: | | | | | | | | | | | | Borrowings | — |
| | — |
| | — |
| | 350 |
| | — |
| | 350 |
| Repayment of debt | — |
| | (700 | ) | | — |
| | (375 | ) | | — |
| | (1,075 | ) | Debt issuance costs | — |
| | (6 | ) | | — |
| | (3 | ) | | — |
| | (9 | ) | Change in restricted cash and cash equivalents | — |
| | — |
| | — |
| | (19 | ) | | — |
| | (19 | ) | Intercompany transfers | — |
| | 706 |
| | (830 | ) | | 124 |
| | — |
| | — |
| Dividends paid to Guarantors | — |
| | — |
| | — |
| | (207 | ) | | 207 |
| | — |
| Capital contribution | — |
| | — |
| | — |
| | 13 |
| | — |
| | 13 |
| Distributions to noncontrolling interests | — |
| | — |
| | — |
| | (3 | ) | | — |
| | (3 | ) | Net cash used in financing activities | — |
| | — |
| | (830 | ) | | (120 | ) | | 207 |
| | (743 | ) | | | | | | | | | | | | | Effect of exchange rate changes on cash and cash equivalents | — |
| | — |
| | — |
| | (7 | ) | | — |
| | (7 | ) | Net increase (decrease) in cash and cash equivalents | — |
| | — |
| | (94 | ) | | 43 |
| | — |
| | (51 | ) | Cash and cash equivalents, beginning of period | — |
| | — |
| | 329 |
| | 265 |
| | — |
| | 594 |
| | | | | | | | | | | | | Cash and cash equivalents, end of period | $ | — |
| | $ | — |
| | $ | 235 |
| | $ | 308 |
| | $ | — |
| | $ | 543 |
|
|