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• | Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased properties and are recorded when rooms are occupied and services have been rendered. Sales and occupancy taxes are recorded on a net basis in the consolidated statements of income. |
• | Management and franchise fees earned from hotels managed and franchised worldwide: |
– | Management fees primarily consist of a base fee, which is generally computed as a percentage of gross revenues, and an incentive fee, which is generally computed based on a hotel profitability measure. Base fee revenues are recognized when earned in accordance with the terms of the contract. We recognize incentive fees that would be due as if the contract were to terminate at that date, exclusive of any termination fees payable or receivable by us. |
– | Realized gains from the sale of hotel real estate assets where we maintain substantial continuing involvement in the form of a long-term management contract are deferred and recognized as management fee revenue over the term of the underlying management contract. |
– | Franchise fees consist of an initial application fee and continuing royalty fees calculated based on a percentage of gross room revenues and in certain circumstances, food and beverage revenues and are recognized as the fees are earned and become due from the franchisee and when all material services or conditions relating to the sale have been substantially performed or satisfied by the franchisor. |
• | Other revenues: |
– | Other revenues include revenues from our co-branded credit card. We recognize revenue from our co-branded credit card upon: (1) the sale of points to our third-party partner and (2) the fulfillment or expiration of a card member's promotional awards. We receive fees from our third-party partner upon activation of each credit card once the card member reaches a specified level of spend, which we defer until the associated promotional nights awarded are redeemed or expired. |
– | Other revenues also include revenues from our vacation ownership business, earned through the date of the sale of the business in the fourth quarter of 2014. Prior to the sale, we recognized vacation ownership revenue when a minimum of 10% of the purchase price for the interval had been received, the period of cancellation with refund had expired, and receivables were deemed collectible. For sales that did not qualify for full revenue recognition, as the project had progressed beyond the preliminary stages, but had not yet reached completion, all revenue and associated direct expenses were initially deferred and recognized in earnings through the percentage-of-completion method. In periods subsequent to the sale of the business, we earn license fees that are recorded to management and franchise fees on our consolidated statements of income. |
• | Other revenues from managed properties represent the reimbursement of costs incurred on behalf of the owners of hotel properties we manage. These costs relate primarily to payroll costs at managed properties where we are the employer, as well as reservations, marketing and technology costs. Since the reimbursements are made based upon the costs incurred with no added margin, these revenues and corresponding expenses have no effect on our net income. |
• | $40 million and $70 million, respectively, related to sales proceeds from the 2014 dispositions of two Canadian hotels, as the Canadian tax regulations require a portion of the proceeds be classified as restricted until completion of regulatory review (see Note 7); |
• | $14 million and $13 million, respectively, related to debt service on bonds acquired in connection with the acquisition of the entity that owned Grand Hyatt San Antonio (see Note 9); in addition, we have $11 million and $10 million, respectively, recorded in other assets; and |
• | $9 million and $7 million, respectively, related to our captive insurance subsidiary for minimum capital and surplus requirements in accordance with local insurance regulations (see Note 14). |
• | Trading securities—recorded at fair value based on listed market prices or dealer price quotations where available. Realized gains and losses on trading securities are reflected in net gains and interest income from marketable securities held to fund operating programs on our consolidated statements of income. |
• | AFS securities—recorded at fair value as described in Note 4. Unrealized gains and losses on AFS securities are reported as part of accumulated other comprehensive loss on the consolidated balance sheets. Realized gains and losses on AFS securities are recognized in other income (loss), net on our consolidated statements of income. |
• | HTM securities—debt security investments which we have the ability to hold until maturity and are recorded at amortized cost. |
Buildings and improvements | 10-50 years |
Leasehold improvements | The shorter of the lease term or useful life of asset |
Furniture and equipment | 3-20 years |
Computers | 3-7 years |
Management and franchise agreement intangibles | Initial term of management or franchise agreement |
Lease related intangibles | Lease term |
Advanced booking intangibles | Period of the advanced bookings |
• | SARs—Each vested SAR gives the holder the right to the difference between the value of one share of our Class A common stock at the exercise date and the value of one share of our Class A common stock at the grant date. Vested SARs can be exercised over their life as determined in accordance with the LTIP. All SARs have a 10-year contractual term, are settled in shares of our Class A common stock and are accounted for as equity instruments. |
• | RSUs—Each vested RSU will be settled by delivery of a single share of our Class A common stock with the exception of insignificant portions of the March 2016, March 2015, February 2014, March 2013, and June 2013 awards which will be settled in cash. The value of the RSUs is based upon the fair value of our common stock at the grant date, based upon a valuation of the Company prior to IPO, or the closing stock price of our Class A common stock for the December 2009 award and all subsequent awards. Awards issued prior to our November 2009 IPO are deferred in nature and will be settled once all tranches of the award have fully vested or otherwise as provided in the relevant agreements, while all awards issued in December 2009 and later will be settled as each individual tranche vests under the relevant agreements. |
• | PSs—The Company has granted PSs to certain executive officers. The number of PSs that will ultimately vest with no further restrictions on transfer depends upon the performance of the Company at the end of the applicable three year performance period relative to the applicable performance target. The PSs vest in full if the maximum performance metric is achieved, and generally subject to continued employment through the applicable performance period. At the end of the performance period, the PSs that do not vest will be forfeited. The PSs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions. |
• | PSUs—The Company has granted PSUs to certain executive officers. PSUs vest and are settled in Class A common stock based upon the performance of the Company through the end of the applicable three year performance period relative to the applicable performance target, and generally subject to continued employment through the applicable performance period. The PSUs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions. |
December 31, 2016 | December 31, 2015 | ||||||
Current Assets | $ | 150 | $ | 179 | |||
Noncurrent Assets | 296 | 280 | |||||
Total Assets | $ | 446 | $ | 459 | |||
Current Liabilities | $ | 150 | $ | 179 | |||
Noncurrent Liabilities | 296 | 280 | |||||
Total Liabilities | $ | 446 | $ | 459 |
• | Under existing guidance, gains on sales of real estate when we maintain substantial continuing involvement are deferred and amortized into management and franchise fee revenues. Upon adoption of ASU 2014-09, gains on sales of real estate assets will be recognized when control of the property transfers to the buyer. We expect any remaining unamortized deferred gains as of our date of adoption will be included as an adjustment to equity. For the year ended December 31, 2016, Hyatt recognized $21 million of management fee revenue related to the amortization of deferred gains. |
• | Under existing guidance, amortization of management and franchise agreement intangibles is recorded within depreciation and amortization on our consolidated statements of income. Upon adoption of ASU 2014-09, management and franchise agreement intangibles may meet the definition of consideration paid to a customer and therefore, could be recorded as contra-revenue within management and franchise fees on our consolidated statements of income. |
• | Under existing guidance, incentive fees are recognized in the amount that would be due as if the contract were to terminate at that date. Under ASU 2014-09, variable consideration is included in the transaction price only if it is probable that a significant reversal in the cumulative amount of revenue recognized would not occur when the uncertainty associated with the variable consideration is subsequently resolved. This may result in a different pattern of recognition for incentive fees for certain contracts. |
• | Under existing guidance, franchise application fees are recognized at a point in time. Upon adoption of ASU 2014-09, initial franchise application fees will be recognized over time. |
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December 31, 2016 | December 31, 2015 | ||||||
Equity method investments | $ | 180 | $ | 304 | |||
Cost method investments | 6 | 23 | |||||
Total investments | $ | 186 | $ | 327 |
Ownership Interests | Investment Balance | |||||||||
December 31, 2016 | December 31, 2015 | |||||||||
Juniper Hotels Private Limited | 50.0 | % | $ | 37 | $ | 44 | ||||
Playa Hotels & Resorts B.V. | 23.7 | % | 23 | 28 | ||||||
San Jose Hotel Partners, L.L.C. | 40.0 | % | 15 | 12 | ||||||
Four One Five, L.L.C. | 49.0 | % | 15 | 5 | ||||||
Rio Preto Partners SARL | 70.0 | % | 14 | 7 | ||||||
Desarrolladora Hotel Acueducto S. de R.L. de C.V. | 50.0 | % | 13 | 15 | ||||||
Hotel Hoyo Uno, S. de R.L. de C.V. | 40.0 | % | 13 | 14 | ||||||
Hotel Am Belvedere GmbH & Co KG | 50.0 | % | 12 | — | ||||||
Wailea Hotel Holdings, L.L.C. (See Note 7) | — | % | — | 125 | ||||||
Other | 38 | 54 | ||||||||
Total | $ | 180 | $ | 304 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Total revenues | $ | 1,229 | $ | 1,079 | $ | 1,192 | |||||
Gross operating profit | 398 | 312 | 329 | ||||||||
Income from continuing operations | 160 | 33 | 31 | ||||||||
Net income | 160 | 33 | 31 |
December 31, 2016 | December 31, 2015 | ||||||
Current Assets | $ | 443 | $ | 472 | |||
Noncurrent Assets | 2,701 | 2,877 | |||||
Total Assets | $ | 3,144 | $ | 3,349 | |||
Current Liabilities | $ | 385 | $ | 625 | |||
Noncurrent Liabilities | 2,037 | 1,752 | |||||
Total Liabilities | $ | 2,422 | $ | 2,377 |
• | We purchased our partners' interests in Andaz Maui at Wailea Resort and villas. The transaction was accounted for as a step acquisition and we recorded a gain of $14 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income in our owned and leased hotels segment. See Note 7 for further discussion of our acquisition. |
• | We sold our ownership interest in an equity method investment within our owned and leased hotels segment for which we received proceeds of $4 million. We recorded a gain of $3 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. |
• | Two unconsolidated hospitality ventures in which we hold or held an ownership interest and which are classified as equity method investments within our owned and leased hotels segment, sold five Hyatt Place hotels, for which we received combined proceeds of $15 million. We recorded gains of $7 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. |
• | Unconsolidated hospitality ventures in which we hold or held an ownership interest, which are classified as equity method investments within our owned and leased hotels segment sold two Hyatt Place hotels for which we received proceeds of $16 million. We recorded gains of $13 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. |
• | We sold an entity which held an interest in one of our foreign currency denominated equity method investments within our owned and leased hotels segment, for which we received proceeds of $3 million. In connection with the sale, we released $21 million of accumulated foreign currency translation losses, which was recorded to equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. |
• | We purchased Hyatt Regency Lost Pines Resort and Spa and adjacent land from an unconsolidated hospitality venture in which we held an 8.2% interest, for a net purchase price of approximately $164 million. This transaction was accounted for as a step acquisition and we recorded a gain of $12 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income in our owned and leased hotels segment. See Note 7 for further discussion of our acquisition. |
• | Unconsolidated hospitality ventures in which we held an ownership interest and which were classified as equity method investments within our owned and leased hotels segment, sold the following hotels to third parties, resulting in deferred gains that are being amortized over the term of the management agreements in management and franchise fees within the Americas management and franchising segment: |
• | A Hyatt Place hotel, for which we received proceeds of $12 million and recorded a deferred gain of $10 million; and |
• | Hyatt Regency DFW International Airport and another building, for which we received proceeds of $19 million and recorded a deferred gain of $18 million. |
• | Unconsolidated hospitality ventures in which we held an ownership interest and which were classified as equity method investments within our owned and leased hotels segment, sold two Hyatt Place hotels, for which we received proceeds of $33 million. We recorded gains of $22 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. |
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December 31, 2016 | December 31, 2015 | ||||||
Marketable securities held by Hyatt Gold Passport Fund (Note 2) | $ | 394 | $ | 384 | |||
Marketable securities held to fund deferred compensation plans held in rabbi trusts (Note 11) | 352 | 333 | |||||
Marketable securities held to fund our captive insurance companies | 65 | 82 | |||||
Total marketable securities held to fund operating programs | $ | 811 | $ | 799 | |||
Less current portion of marketable securities held to fund operating programs included in cash and cash equivalents, short-term investments, and prepaids and other assets | (109 | ) | (121 | ) | |||
Marketable securities held to fund operating programs included in other assets | $ | 702 | $ | 678 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Hyatt Gold Passport Fund | $ | 2 | $ | 1 | $ | 3 | |||||
Deferred compensation plans held in rabbi trusts | 17 | 3 | 12 | ||||||||
Total net gains and interest income from marketable securities held to fund operating programs | $ | 19 | $ | 4 | $ | 15 |
December 31, 2016 | December 31, 2015 | ||||||
Interest bearing money market funds | $ | 106 | $ | 5 | |||
Time deposits | 45 | 30 | |||||
Preferred shares | 290 | 335 | |||||
Total marketable securities held for investment purposes | $ | 441 | $ | 370 | |||
Less current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments | (151 | ) | (35 | ) | |||
Marketable securities held for investment purposes included in other assets | $ | 290 | $ | 335 |
December 31, 2016 | Cash and Cash Equivalents | Short-term Investments | Prepaids and Other Assets | Other Assets | |||||||||||||||
Level One - Quoted Prices in Active Markets for Identical Assets | |||||||||||||||||||
Interest bearing money market funds | $ | 114 | $ | 114 | $ | — | $ | — | $ | — | |||||||||
Mutual funds | 352 | — | — | — | 352 | ||||||||||||||
Level Two - Significant Other Observable Inputs | |||||||||||||||||||
Time deposits | 59 | — | 46 | — | 13 | ||||||||||||||
U.S. government obligations | 142 | — | — | 33 | 109 | ||||||||||||||
U.S. government agencies | 53 | — | 9 | 8 | 36 | ||||||||||||||
Corporate debt securities | 181 | — | 1 | 35 | 145 | ||||||||||||||
Mortgage-backed securities | 22 | — | — | 5 | 17 | ||||||||||||||
Asset-backed securities | 34 | — | — | 8 | 26 | ||||||||||||||
Municipal and provincial notes and bonds | 5 | — | — | 1 | 4 | ||||||||||||||
Level Three - Significant Unobservable Inputs | |||||||||||||||||||
Preferred Shares | 290 | — | — | — | 290 | ||||||||||||||
Total | $ | 1,252 | $ | 114 | $ | 56 | $ | 90 | $ | 992 |
December 31, 2015 | Cash and Cash Equivalents | Short-term Investments | Prepaids and Other Assets | Other Assets | |||||||||||||||
Level One - Quoted Prices in Active Markets for Identical Assets | |||||||||||||||||||
Interest bearing money market funds | $ | 18 | $ | 18 | $ | — | $ | — | $ | — | |||||||||
Mutual funds | 333 | — | — | — | 333 | ||||||||||||||
Level Two - Significant Other Observable Inputs | |||||||||||||||||||
Time deposits | 45 | — | 38 | — | 7 | ||||||||||||||
U.S. government obligations | 131 | — | — | 32 | 99 | ||||||||||||||
U.S. government agencies | 83 | — | 6 | 10 | 67 | ||||||||||||||
Corporate debt securities | 168 | — | 2 | 36 | 130 | ||||||||||||||
Mortgage-backed securities | 26 | — | — | 6 | 20 | ||||||||||||||
Asset-backed securities | 27 | — | — | 7 | 20 | ||||||||||||||
Municipal and provincial notes and bonds | 3 | — | — | 1 | 2 | ||||||||||||||
Level Three - Significant Unobservable Inputs | |||||||||||||||||||
Preferred shares | 335 | — | — | — | 335 | ||||||||||||||
Total | $ | 1,169 | $ | 18 | $ | 46 | $ | 92 | $ | 1,013 |
2016 | 2015 | ||||||
Fair value at January 1 | $ | 335 | $ | 280 | |||
Gross unrealized gains | 19 | 55 | |||||
Gross unrealized losses | (29 | ) | — | ||||
Realized losses | (6 | ) | — | ||||
Interest income | 12 | — | |||||
Cash redemption | (41 | ) | — | ||||
Fair value at December 31 | $ | 290 | $ | 335 |
December 31, 2016 | December 31, 2015 | ||||
Expected term | 1 year | 0.75 years | |||
Risk-free Interest Rate | 0.85 | % | 0.57 | % | |
Volatility | 46.5 | % | 46.0 | % | |
Dividend Yield | 12.0 | % | 12.0 | % |
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December 31, 2016 | December 31, 2015 | ||||||
Land | $ | 901 | $ | 674 | |||
Buildings | 4,125 | 3,898 | |||||
Leasehold improvements | 202 | 220 | |||||
Furniture, equipment and computers | 1,316 | 1,209 | |||||
Construction in progress | 90 | 251 | |||||
6,634 | 6,252 | ||||||
Accumulated depreciation | (2,364 | ) | (2,221 | ) | |||
Total property and equipment, net | $ | 4,270 | $ | 4,031 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Depreciation expense | $ | 315 | $ | 289 | $ | 324 |
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December 31, 2016 | December 31, 2015 | ||||||
Unsecured financing to hotel owners | 119 | 120 | |||||
Less allowance for losses | (100 | ) | (98 | ) | |||
Less current portion included in receivables, net | — | (2 | ) | ||||
Total long-term financing receivables, net | $ | 19 | $ | 20 |
Secured Financing | Unsecured Financing | Total | |||||||||
Allowance at January 1, 2016 | $ | — | $ | 98 | $ | 98 | |||||
Provisions | — | 10 | 10 | ||||||||
Write-offs | — | (8 | ) | (8 | ) | ||||||
Allowance at December 31, 2016 | $ | — | $ | 100 | $ | 100 |
Secured Financing | Unsecured Financing | Total | |||||||||
Allowance at January 1, 2015 | $ | 13 | $ | 87 | $ | 100 | |||||
Provisions | 3 | 7 | 10 | ||||||||
Write-offs | (1 | ) | — | (1 | ) | ||||||
Recoveries | (9 | ) | — | (9 | ) | ||||||
Other adjustments | (6 | ) | 4 | (2 | ) | ||||||
Allowance at December 31, 2015 | $ | — | $ | 98 | $ | 98 |
December 31, 2016 | |||||||||||||||
Gross Loan Balance (Principal and Interest) | Related Allowance | Net Financing Receivables | Gross Receivables on Non-Accrual Status | ||||||||||||
Loans | $ | 13 | $ | — | $ | 13 | $ | — | |||||||
Impaired loans (1) | 56 | (56 | ) | — | 56 | ||||||||||
Total loans | 69 | (56 | ) | 13 | 56 | ||||||||||
Other financing arrangements | 50 | (44 | ) | 6 | 44 | ||||||||||
Total unsecured financing receivables | $ | 119 | $ | (100 | ) | $ | 19 | $ | 100 |
December 31, 2015 | |||||||||||||||
Gross Loan Balance (Principal and Interest) | Related Allowance | Net Financing Receivables | Gross Receivables on Non-Accrual Status | ||||||||||||
Loans | $ | 15 | $ | — | $ | 15 | $ | — | |||||||
Impaired loans (2) | 58 | (58 | ) | — | 58 | ||||||||||
Total loans | 73 | (58 | ) | 15 | 58 | ||||||||||
Other financing arrangements | 47 | (40 | ) | 7 | 40 | ||||||||||
Total unsecured financing receivables | $ | 120 | $ | (98 | ) | $ | 22 | $ | 98 |
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Cash and cash equivalents | $ | 12 | |
Receivables | 3 | ||
Inventories | 13 | ||
Prepaids and other assets | 1 | ||
Property and equipment | 323 | ||
Total assets | $ | 352 | |
Current liabilities | 10 | ||
Total liabilities | $ | 10 | |
Total net assets acquired | $ | 342 |
Cash and cash equivalents | $ | 7 | |
Receivables | 4 | ||
Inventories | 1 | ||
Property and equipment | 207 | ||
Goodwill | 17 | ||
Intangibles | 4 | ||
Deferred tax assets | 1 | ||
Total assets | $ | 241 | |
Current portion of long-term debt | $ | 4 | |
Current liabilities | 8 | ||
Long-term debt | 65 | ||
Total liabilities | 77 | ||
Total net assets acquired | $ | 164 |
2016 | |
Discount rate | 7.25% - 9.00% |
Terminal capitalization rate (1) | 5.50% - 7.75% |
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Owned and Leased Hotels | Americas Management and Franchising | Total | |||||||||
Balance at January 1, 2015 | |||||||||||
Goodwill | $ | 195 | $ | 33 | $ | 228 | |||||
Accumulated impairment losses | (95 | ) | — | (95 | ) | ||||||
Goodwill, net | $ | 100 | $ | 33 | $ | 133 | |||||
Activity during the year | |||||||||||
Foreign exchange* | (4 | ) | — | (4 | ) | ||||||
Balance at December 31, 2015 | |||||||||||
Goodwill | 191 | 33 | 224 | ||||||||
Accumulated impairment losses | (95 | ) | — | (95 | ) | ||||||
Goodwill, net | $ | 96 | $ | 33 | $ | 129 | |||||
Activity during the year | |||||||||||
Foreign exchange* | (4 | ) | — | (4 | ) | ||||||
Balance at December 31, 2016 | |||||||||||
Goodwill | 187 | 33 | 220 | ||||||||
Accumulated impairment losses | (95 | ) | — | (95 | ) | ||||||
Goodwill, net | $ | 92 | $ | 33 | $ | 125 |
December 31, 2016 | Weighted Average Useful Lives | December 31, 2015 | ||||||||
Management and franchise agreement intangibles | $ | 589 | 25 | $ | 535 | |||||
Lease related intangibles | 115 | 111 | 136 | |||||||
Brand intangibles | 16 | — | 7 | |||||||
Advanced booking intangibles | 11 | 6 | 12 | |||||||
Other | 6 | 14 | 8 | |||||||
737 | 698 | |||||||||
Accumulated amortization | (138 | ) | (151 | ) | ||||||
Intangibles, net | $ | 599 | $ | 547 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Amortization expense | $ | 27 | $ | 31 | $ | 30 |
Years Ending December 31, | |||
2017 | $ | 32 | |
2018 | 30 | ||
2019 | 30 | ||
2020 | 30 | ||
2021 | 29 |
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December 31, 2016 | December 31, 2015 | ||||||
$250 million senior unsecured notes maturing in 2016—3.875% | $ | — | $ | 250 | |||
$196 million senior unsecured notes maturing in 2019—6.875% | 196 | 196 | |||||
$250 million senior unsecured notes maturing in 2021—5.375% | 250 | 250 | |||||
$350 million senior unsecured notes maturing in 2023—3.375% | 350 | 350 | |||||
$400 million senior unsecured notes maturing in 2026—4.850% | 400 | — | |||||
Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | 130 | 130 | |||||
Contract Revenue Bonds, Senior Taxable Series 2005B | 59 | 63 | |||||
Floating average rate construction loan | 79 | 65 | |||||
Senior secured term loan | — | 64 | |||||
Revolving credit facility | 100 | — | |||||
Other | 1 | — | |||||
Long-term debt before capital lease obligations | 1,565 | 1,368 | |||||
Capital lease obligations | 15 | 16 | |||||
Total long-term debt | 1,580 | 1,384 | |||||
Less current maturities | (119 | ) | (328 | ) | |||
Less unamortized discounts and deferred financing fees | (16 | ) | (14 | ) | |||
Total long-term debt, net of current maturities | $ | 1,445 | $ | 1,042 |
Years Ending December 31, | |||
2017 | $ | 119 | |
2018 | 19 | ||
2019 | 215 | ||
2020 | 19 | ||
2021 | 269 | ||
Thereafter | 939 | ||
Total | $ | 1,580 |
• | In 2009, we issued $250 million of 6.875% senior notes due 2019, at an issue price of 99.864% (the "2019 Notes"). During the year ended December 31, 2013, we purchased $54 million aggregate principal amount of 2019 Notes in a cash tender offer at a purchase price of $66 million, which included premiums payable in connection with the cash tender offer. Following the cash tender offer, $196 million aggregate principal amount of 2019 Notes remains outstanding. |
• | In 2011, we issued $250 million of 3.875% senior notes due 2016, at an issue price of 99.571% (the "2016 Notes"), and $250 million of 5.375% senior notes due 2021, at an issue price of 99.846% (the "2021 Notes"). During the year ended December 31, 2016, we redeemed all of our outstanding 2016 Notes, of which an aggregate principal amount of $250 million was outstanding. The redemption price, which was calculated in accordance with the terms of the 2016 Notes and included principal and accrued interest plus a make-whole premium, was $254 million. The make-whole premium was recorded within other income (loss), net on our consolidated statements of income, see Note 20. |
• | In 2013, we issued $350 million of 3.375% senior notes due 2023 at an issue price of 99.498% (the "2023 Notes"). |
• | In 2016, we issued $400 million of 4.850% senior notes due 2026, at an issue price of 99.920% (the "2026 Notes" and together with the 2016 Notes, the 2019 Notes, 2021 Notes and the 2023 Notes, the "Senior Notes"). We received net proceeds of $396 million from the sale of the 2026 Notes, after deducting discounts and offering expenses of approximately $4 million. We used a portion of the net proceeds to pay for the redemption of the 2016 Notes (as described above), with the remaining proceeds intended to be used for general corporate purposes. |
December 31, 2016 | |||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | |||||||||||||||
Debt, excluding capital lease obligations | $ | 1,549 | $ | 1,642 | $ | — | $ | 1,450 | $ | 192 |
December 31, 2015 | |||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | |||||||||||||||
Debt, excluding capital lease obligations | $ | 1,354 | $ | 1,421 | $ | — | $ | 1,277 | $ | 144 |
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Years Ending December 31, | Operating Leases | Capital Leases | |||||
2017 | $ | 41 | $ | 2 | |||
2018 | 35 | 3 | |||||
2019 | 39 | 3 | |||||
2020 | 29 | 2 | |||||
2021 | 26 | 2 | |||||
Thereafter | 444 | 8 | |||||
Total minimum lease payments | $ | 614 | $ | 20 | |||
Less amount representing interest | 5 | ||||||
Present value of minimum lease payments | $ | 15 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Minimum rentals | $ | 37 | $ | 34 | $ | 35 | |||||
Contingent rentals | 53 | 53 | 49 | ||||||||
Total | $ | 90 | $ | 87 | $ | 84 |
Years Ending December 31, | |||
2017 | $ | 22 | |
2018 | 17 | ||
2019 | 13 | ||
2020 | 12 | ||
2021 | 11 | ||
Thereafter | 58 | ||
Total minimum lease receipts | $ | 133 |
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December 31, 2016 | December 31, 2015 | ||||||
Deferred gains on sales of hotel properties | $ | 363 | $ | 367 | |||
Deferred compensation plans (see Note 11) | 352 | 333 | |||||
Hyatt Gold Passport Fund (see Note 2) | 296 | 280 | |||||
Guarantee liabilities (see Note 14) | 124 | 120 | |||||
Other accrued income taxes (see Note 13) | 100 | 127 | |||||
Deferred income taxes (see Note 13) | 57 | 59 | |||||
Defined benefit plans (see Note 11) | 20 | 20 | |||||
Other | 160 | 141 | |||||
Total | $ | 1,472 | $ | 1,447 |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
U.S. income before tax | $ | 180 | $ | 119 | $ | 493 | |||||
Foreign income before tax | 109 | 75 | 32 | ||||||||
Income before income taxes | $ | 289 | $ | 194 | $ | 525 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | 66 | $ | 134 | $ | 164 | |||||
State | 15 | 18 | 7 | ||||||||
Foreign | 7 | 21 | 36 | ||||||||
Total Current | $ | 88 | $ | 173 | $ | 207 | |||||
Deferred: | |||||||||||
Federal | $ | (12 | ) | $ | (78 | ) | $ | (10 | ) | ||
State | (2 | ) | (20 | ) | (6 | ) | |||||
Foreign | 11 | (5 | ) | (12 | ) | ||||||
Total Deferred | $ | (3 | ) | $ | (103 | ) | $ | (28 | ) | ||
Total | $ | 85 | $ | 70 | $ | 179 |
Years Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Statutory U.S. federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes—net of federal tax benefit | 3.4 | 3.5 | 3.4 | |||||
Impact of foreign operations (excluding unconsolidated hospitality ventures losses) | (5.4 | ) | (13.8 | ) | 0.9 | |||
Foreign unconsolidated hospitality ventures | 1.2 | 10.0 | 0.8 | |||||
Playa foreign tax credit benefit | (2.6 | ) | — | — | ||||
Tax contingencies | (5.2 | ) | (1.5 | ) | (2.6 | ) | ||
Change in valuation allowances | 3.6 | 3.1 | (1.0 | ) | ||||
General business credits | (0.8 | ) | (1.9 | ) | (0.4 | ) | ||
Equity based compensation | 0.4 | (0.5 | ) | 0.4 | ||||
Other | (0.1 | ) | 2.3 | (2.4 | ) | |||
Effective income tax rate | 29.5 | % | 36.2 | % | 34.1 | % |
December 31, 2016 | December 31, 2015 | ||||||
Deferred tax assets related to: | |||||||
Employee benefits | $ | 202 | $ | 196 | |||
Foreign and state net operating losses and credit carryforwards | 46 | 34 | |||||
Investments | 55 | 70 | |||||
Allowance for uncollectible assets | 36 | 36 | |||||
Intangibles | — | 4 | |||||
Deferred gains on sales of hotel properties | 134 | 142 | |||||
Hyatt Gold Passport Fund | 81 | 81 | |||||
Interest and state benefits | 2 | 2 | |||||
Unrealized losses | 5 | 5 | |||||
Other | 54 | 50 | |||||
Valuation allowance | (27 | ) | (17 | ) | |||
Total deferred tax asset | $ | 588 | $ | 603 | |||
Deferred tax liabilities related to: | |||||||
Property and equipment | $ | (224 | ) | $ | (258 | ) | |
Investments | (28 | ) | (33 | ) | |||
Intangibles | (14 | ) | — | ||||
Unrealized gains | (39 | ) | (45 | ) | |||
Prepaid expenses | (12 | ) | (13 | ) | |||
Other | (15 | ) | (12 | ) | |||
Total deferred tax liabilities | $ | (332 | ) | $ | (361 | ) | |
Net deferred tax assets | $ | 256 | $ | 242 | |||
Recognized in the balance sheet as: | |||||||
Deferred tax assets—noncurrent | $ | 313 | $ | 301 | |||
Deferred tax liabilities—noncurrent | (57 | ) | (59 | ) | |||
Total | $ | 256 | $ | 242 |
2016 | 2015 | ||||||
Unrecognized tax benefits—beginning balance | $ | 110 | $ | 40 | |||
Total increases—current period tax positions | 2 | 13 | |||||
Total (decreases) increases—prior period tax positions | (21 | ) | 69 | ||||
Lapse of statute of limitations | (5 | ) | (8 | ) | |||
Foreign currency fluctuation | — | (4 | ) | ||||
Unrecognized tax benefits—ending balance | $ | 86 | $ | 110 |
|
The Four Managed Hotels in France | Other Performance Guarantees | Total | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Beginning balance, January 1 | $ | 93 | $ | 106 | $ | 4 | $ | 5 | $ | 97 | $ | 111 | ||||||||||||
Initial guarantee obligation liability | — | — | 9 | — | 9 | — | ||||||||||||||||||
Amortization of initial guarantee obligation liability into income | (33 | ) | (10 | ) | (1 | ) | (2 | ) | (34 | ) | (12 | ) | ||||||||||||
Performance guarantee expense (income), net | 64 | 28 | (1 | ) | (1 | ) | 63 | 27 | ||||||||||||||||
Net (payments) receipts during the year | (57 | ) | (20 | ) | 2 | 2 | (55 | ) | (18 | ) | ||||||||||||||
Foreign currency exchange, net | (1 | ) | (11 | ) | — | — | (1 | ) | (11 | ) | ||||||||||||||
Ending balance, December 31 | $ | 66 | $ | 93 | $ | 13 | $ | 4 | $ | 79 | $ | 97 |
Property Description | Maximum Potential Future Payments | Maximum Exposure Net of Recoverability from Third Parties | Amount Recorded at December 31, 2016 | Amount Recorded at December 31, 2015 | Year of Guarantee Expiration | |||||||||||||
Hotel property in Washington (1), (3), (4), (5) | $ | 215 | $ | — | $ | 35 | $ | — | 2020 | |||||||||
Hotel properties in India (2), (3) | 177 | 177 | 21 | 27 | 2020 | |||||||||||||
Hotel property in Brazil (1) | 80 | 40 | 3 | 4 | 2020 | |||||||||||||
Hotel property in Minnesota | 25 | 25 | 2 | 2 | 2021 | |||||||||||||
Hotel property in Arizona (1), (4) | 25 | — | 2 | 3 | 2019 | |||||||||||||
Hotel properties in California (1) | 21 | 8 | 6 | — | 2020 | |||||||||||||
Hotel property in Colorado | 8 | 8 | — | — | 2017 | |||||||||||||
Other (1) | 25 | 1 | — | 3 | various, through 2017 | |||||||||||||
Total | $ | 576 | $ | 259 | $ | 69 | $ | 39 |
2016 | 2015 | ||
Discount rates | 10.6% - 12.6% | 9.5% - 12.6% | |
Stabilized growth rates | 1.8% - 4.8% | 1.8% - 4.8% | |
Capitalization rates (1) | 7.0% - 10.0% | 6.5% - 10.0% | |
Term | 0.2 - 7.0 years | 0.3 - 5.0 years |
|
Balance at January 1, 2016 | Current period other comprehensive income (loss) before reclassification | Amount reclassified from accumulated other comprehensive loss (a) | Balance at December 31, 2016 | ||||||||||||
Foreign currency translation adjustments | $ | (257 | ) | $ | (45 | ) | $ | 3 | $ | (299 | ) | ||||
Unrealized gains (losses) on AFS securities | 39 | (6 | ) | — | 33 | ||||||||||
Unrecognized pension cost | (7 | ) | — | — | (7 | ) | |||||||||
Unrealized gains (losses) on derivative instruments | (5 | ) | 1 | — | (4 | ) | |||||||||
Accumulated other comprehensive income (loss) | $ | (230 | ) | $ | (50 | ) | $ | 3 | $ | (277 | ) | ||||
(a) The amount reclassified from accumulated other comprehensive loss related to the sale of the shares of the company that owns Hyatt Regency Birmingham (U.K.) and was recorded within other long-term liabilities on our consolidated balance sheets. | |||||||||||||||
Balance at January 1, 2015 | Current period other comprehensive income (loss) before reclassification | Amount reclassified from accumulated other comprehensive loss (b) | Balance at December 31, 2015 | ||||||||||||
Foreign currency translation adjustments | $ | (155 | ) | $ | (123 | ) | $ | 21 | $ | (257 | ) | ||||
Unrealized gains on AFS securities | 6 | 33 | — | 39 | |||||||||||
Unrecognized pension cost | (5 | ) | (2 | ) | — | (7 | ) | ||||||||
Unrealized gains (losses) on derivative instruments | (6 | ) | 1 | — | (5 | ) | |||||||||
Accumulated other comprehensive income (loss) | $ | (160 | ) | $ | (91 | ) | $ | 21 | $ | (230 | ) | ||||
(b) The amount reclassified from accumulated other comprehensive loss was recognized within equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
SARs | $ | 10 | $ | 9 | $ | 19 | |||||
RSUs | 15 | 17 | 31 | ||||||||
PSUs and PSs | — | (3 | ) | 4 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
SARs | $ | 4 | $ | 3 | $ | 7 | |||||
RSUs | 5 | 5 | 8 | ||||||||
PSUs and PSs | — | (1 | ) | 2 |
Grant Date | SARs Granted | Value at Date of Grant | Vesting Period | Vesting Start Month | ||||||||
March 2016 | 45,710 | $ | 14.22 | 33 | % annually | March 2017 | ||||||
March 2016 | 878,714 | 14.54 | 25 | % annually | March 2017 | |||||||
March 2015 | 380,604 | 20.64 | 25 | % annually | March 2016 | |||||||
March 2015 | 41,373 | 24.17 | 50 | % annually | March 2018 | |||||||
February 2015 | 39,401 | 25.38 | 100 | % at vest | March 2018 | |||||||
February 2014 | 327,307 | 22.57 | 25 | % annually | March 2015 |
2016 | 2015 | 2014 | |||||||||
Exercise Price | $ | 47.36 | $ | 56.57 | $ | 49.39 | |||||
Expected Life in Years | 6.227 | 6.309 | 6.290 | ||||||||
Risk-free Interest Rate | 1.55 | % | 1.63 | % | 1.93 | % | |||||
Expected Volatility | 27.72 | % | 35.39 | % | 44.32 | % | |||||
Annual Dividend Yield | — | % | — | % | — | % |
SAR Units | Weighted Average Exercise Price (in whole dollars) | Weighted Average Contractual Term | ||||||
Outstanding at December 31, 2015: | 3,876,937 | $ | 47.63 | 5.03 | ||||
Granted | 924,424 | 47.36 | 9.22 | |||||
Exercised | (325,339 | ) | 43.09 | 2.08 | ||||
Forfeited or canceled | (22,035 | ) | 53.32 | 5.04 | ||||
Outstanding at December 31, 2016: | 4,453,987 | $ | 47.88 | 5.25 | ||||
Exercisable at December 31, 2016: | 2,855,153 | $ | 47.09 | 3.44 |
Grant Date | RSUs | Value | Total Value (in millions) | Vesting Period | |||||||||
December 2016 | 40,633 | $ | 56.60 | $ | 2 | 4 years | |||||||
March 2016 | 444,629 | 47.36 | 21 | 4 years | |||||||||
December 2015 | 4,089 | 48.90 | — | 4 years | |||||||||
September 2015 | 3,898 | 51.30 | — | 3 years | |||||||||
September 2015 | 8,576 | 51.30 | — | 4 years | |||||||||
May 2015 | 23,746 | 58.95 | 1 | 4 years | |||||||||
March 2015 | 380,939 | 56.27 | 21 | 4 years | |||||||||
February 2015 | 29,278 | 59.77 | 2 | 4 years | |||||||||
September 2014 | 2,452 | 61.17 | — | 4 years | |||||||||
February 2014 | 376,328 | 49.39 | 19 | 4 years |
Restricted Stock Units | Weighted Average Grant Date Fair Value (in whole dollars) | |||||
Nonvested at December 31, 2015: | 1,014,574 | $ | 50.02 | |||
Granted | 485,262 | 48.13 | ||||
Vested | (394,087 | ) | 47.42 | |||
Forfeited or canceled | (89,572 | ) | 49.78 | |||
Nonvested at December 31, 2016: | 1,016,177 | $ | 50.15 |
Year Granted | PSUs and PSs Granted | Weighted Average Grant Date Fair Value (in whole dollars) | Performance Period | Performance Period Start Date | |||||||
2016 PSUs | 111,620 | $ | 47.36 | 3 years | January 1, 2016 | ||||||
2015 PSs | 146,902 | $ | 56.27 | 3 years | January 1, 2015 | ||||||
2014 PSs | 162,906 | $ | 49.39 | 3 years | January 1, 2014 |
2017 | 2018 | 2019 | 2020 | Total | |||||||||||||||
SARs | $ | 3 | $ | 2 | $ | 1 | $ | — | $ | 6 | |||||||||
RSUs | 7 | 4 | 3 | 1 | 15 | ||||||||||||||
PSUs and PSs | 2 | 2 | — | — | 4 | ||||||||||||||
Total | $ | 12 | $ | 8 | $ | 4 | $ | 1 | $ | 25 |
|
|
• | Owned and leased hotels—This segment derives its earnings from owned and leased hotel properties located predominantly in the United States, but also in certain international locations and for purposes of segment Adjusted EBITDA, includes our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany expenses related to management fees paid to the Company's management and franchising segments, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card, which are eliminated in consolidation. |
• | Americas management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in the United States, Latin America, Canada and the Caribbean. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to payroll costs at managed properties where the Company is the employer. These revenues and costs are recorded within other revenues from managed properties and other costs from managed properties, respectively. The intersegment revenues relate to management fees collected from the Company’s owned hotels, which are eliminated in consolidation. |
• | ASPAC management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Southeast Asia, as well as Greater China, Australia, South Korea, Japan and Micronesia. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to reservations, marketing and technology costs. These revenues and costs are recorded within other revenues from managed properties and other costs from managed properties, respectively. The intersegment revenues relate to management fees collected from the Company’s owned hotels, which are eliminated in consolidation. |
• | EAME/SW Asia management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located primarily in Europe, Africa, the Middle East, India, Central Asia and Nepal. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to reservations, marketing and technology costs. These revenues and costs are recorded within other revenues from managed properties and other costs from managed properties, respectively. The intersegment revenues relate to management fees collected from the Company’s owned hotels, which are eliminated in consolidation. |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Owned and leased hotels | |||||||||||
Owned and leased hotels revenues | $ | 2,119 | $ | 2,079 | $ | 2,246 | |||||
Intersegment revenues (a) | 11 | — | — | ||||||||
Adjusted EBITDA | 516 | 493 | 523 | ||||||||
Depreciation and amortization | 285 | 277 | 322 | ||||||||
Capital expenditures | 200 | 225 | 208 | ||||||||
Americas management and franchising | |||||||||||
Management and franchise fees revenues | 371 | 354 | 327 | ||||||||
Other revenues from managed properties | 1,670 | 1,641 | 1,550 | ||||||||
Intersegment revenues (a) | 75 | 74 | 88 | ||||||||
Adjusted EBITDA | 318 | 300 | 265 | ||||||||
Depreciation and amortization | 18 | 19 | 18 | ||||||||
Capital expenditures | — | — | 1 | ||||||||
ASPAC management and franchising | |||||||||||
Management and franchise fees revenues | 96 | 91 | 88 | ||||||||
Other revenues from managed properties | 98 | 87 | 74 | ||||||||
Intersegment revenues (a) | 2 | 2 | 2 | ||||||||
Adjusted EBITDA | 57 | 55 | 49 | ||||||||
Depreciation and amortization | 1 | 1 | 1 | ||||||||
Capital expenditures | 1 | 1 | 1 | ||||||||
EAME/SW Asia management and franchising | |||||||||||
Management and franchise fees revenues | 65 | 67 | 77 | ||||||||
Other revenues from managed properties | 65 | 58 | 53 | ||||||||
Intersegment revenues (a) | 10 | 13 | 15 | ||||||||
Adjusted EBITDA | 33 | 33 | 43 | ||||||||
Depreciation and amortization | 5 | 5 | 6 | ||||||||
Capital expenditures | 1 | — | — | ||||||||
Corporate and other | |||||||||||
Revenues | 43 | 40 | 75 | ||||||||
Other revenues from managed properties | — | — | 30 | ||||||||
Adjusted EBITDA | (139 | ) | (131 | ) | (103 | ) | |||||
Depreciation and amortization | 33 | 18 | 7 | ||||||||
Capital expenditures | 9 | 43 | 43 | ||||||||
Eliminations (a) | |||||||||||
Revenues | (98 | ) | (89 | ) | (105 | ) | |||||
Adjusted EBITDA | — | — | — | ||||||||
Depreciation and amortization | — | — | — | ||||||||
Capital expenditures | — | — | — | ||||||||
TOTAL | |||||||||||
Revenues | $ | 4,429 | $ | 4,328 | $ | 4,415 | |||||
Adjusted EBITDA | 785 | 750 | 777 | ||||||||
Depreciation and amortization | 342 | 320 | 354 | ||||||||
Capital expenditures | 211 | 269 | 253 |
(a) | Intersegment revenues are included in the management and franchise fees revenues and owned and leased hotels revenues and eliminated in Eliminations. |
December 31, 2016 | December 31, 2015 | ||||||
Owned and leased hotels | $ | 5,393 | $ | 5,281 | |||
Americas management and franchising | 564 | 464 | |||||
ASPAC management and franchising | 128 | 131 | |||||
EAME/SW Asia management and franchising | 186 | 234 | |||||
Corporate and other | 1,478 | 1,481 | |||||
TOTAL | $ | 7,749 | $ | 7,591 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenues: | |||||||||||
United States | $ | 3,571 | $ | 3,494 | $ | 3,476 | |||||
All Foreign | 858 | 834 | 939 | ||||||||
Total | $ | 4,429 | $ | 4,328 | $ | 4,415 | |||||
December 31, 2016 | December 31, 2015 | ||||||||||
Property and equipment, net, Intangibles, net and Goodwill: | |||||||||||
United States | $ | 3,915 | $ | 3,562 | |||||||
All Foreign | 1,079 | 1,145 | |||||||||
Total | $ | 4,994 | $ | 4,707 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income attributable to Hyatt Hotels Corporation | $ | 204 | $ | 124 | $ | 344 | |||||
Interest expense | 76 | 68 | 71 | ||||||||
Provision for income taxes | 85 | 70 | 179 | ||||||||
Depreciation and amortization | 342 | 320 | 354 | ||||||||
EBITDA | 707 | 582 | 948 | ||||||||
Equity (earnings) losses from unconsolidated hospitality ventures | (68 | ) | 64 | (25 | ) | ||||||
Stock-based compensation expense | 25 | 23 | 49 | ||||||||
(Gains) losses on sales of real estate and other | 23 | (9 | ) | (311 | ) | ||||||
Asset impairments | — | 5 | 17 | ||||||||
Other (income) loss, net | (2 | ) | 5 | 17 | |||||||
Net income attributable to noncontrolling interests | — | — | 2 | ||||||||
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA | 100 | 80 | 80 | ||||||||
Adjusted EBITDA | $ | 785 | $ | 750 | $ | 777 |
|
For the years ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Performance guarantee liability amortization (Note 14) | 34 | 12 | 7 | ||||||||
Depreciation recovery | 25 | 12 | 2 | ||||||||
Interest income | 19 | 8 | 11 | ||||||||
Foreign currency gains (losses), net | 1 | (14 | ) | (3 | ) | ||||||
Realized losses (Note 4) | (6 | ) | — | — | |||||||
Performance guarantee expense, net (Note 14) | (63 | ) | (27 | ) | (23 | ) | |||||
Other | (8 | ) | 4 | (11 | ) | ||||||
Other income (loss), net | $ | 2 | $ | (5 | ) | $ | (17 | ) |
|
|
For the three months ended | |||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | ||||||||||||||||||||||||
Consolidated statements of income data: | |||||||||||||||||||||||||||||||
Owned and leased hotels | $ | 514 | $ | 519 | $ | 559 | $ | 516 | $ | 530 | $ | 500 | $ | 540 | $ | 509 | |||||||||||||||
Management and franchise fees | 116 | 110 | 115 | 107 | 107 | 103 | 112 | 105 | |||||||||||||||||||||||
Other revenues | 9 | 11 | 11 | 9 | 10 | 10 | 9 | 7 | |||||||||||||||||||||||
Other revenues from managed properties | 448 | 448 | 480 | 457 | 462 | 440 | 451 | 433 | |||||||||||||||||||||||
Total revenues | 1,087 | 1,088 | 1,165 | 1,089 | 1,109 | 1,053 | 1,112 | 1,054 | |||||||||||||||||||||||
Direct and selling, general, and administrative expenses | 1,027 | 1,019 | 1,063 | 1,021 | 1,047 | 965 | 998 | 995 | |||||||||||||||||||||||
Net income | 41 | 62 | 67 | 34 | 37 | 25 | 40 | 22 | |||||||||||||||||||||||
Net income attributable to Hyatt Hotels Corporation | 41 | 62 | 67 | 34 | 37 | 25 | 40 | 22 | |||||||||||||||||||||||
Net income per common share, basic | $ | 0.31 | $ | 0.48 | $ | 0.50 | $ | 0.25 | $ | 0.26 | $ | 0.18 | $ | 0.28 | $ | 0.15 | |||||||||||||||
Net income per common share, diluted | $ | 0.31 | $ | 0.47 | $ | 0.49 | $ | 0.25 | $ | 0.26 | $ | 0.18 | $ | 0.27 | $ | 0.15 |
|
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||
Description | Balance at Beginning of Period | Additions Charged to Revenues, Costs and Expenses | Additions Charged to Other Accounts | Deductions | Balance at End of Period | |||||||||||||||
Year Ended December 31, 2016: | ||||||||||||||||||||
Trade receivables—allowance for doubtful accounts | $ | 15 | $ | 6 | $ | — | $ | (3 | ) | $ | 18 | |||||||||
Financing receivables—allowance for losses | 98 | 10 | — | (8 | ) | 100 | ||||||||||||||
Deferred tax assets—valuation allowance | 17 | 10 | — | — | 27 | |||||||||||||||
Year Ended December 31, 2015: | ||||||||||||||||||||
Trade receivables—allowance for doubtful accounts | 13 | 5 | — | (3 | ) | 15 | ||||||||||||||
Financing receivables—allowance for losses | 100 | 10 | (2 | ) | A | (10 | ) | 98 | ||||||||||||
Deferred tax assets—valuation allowance | 15 | 2 | — | — | 17 | |||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||||||
Trade receivables—allowance for doubtful accounts | 11 | 5 | — | (3 | ) | 13 | ||||||||||||||
Financing receivables—allowance for losses | 103 | 7 | (9 | ) | A, C | (1 | ) | 100 | ||||||||||||
Deferred tax assets—valuation allowance | 21 | — | — | (6 | ) | B | 15 |
|
• | Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased properties and are recorded when rooms are occupied and services have been rendered. Sales and occupancy taxes are recorded on a net basis in the consolidated statements of income. |
• | Management and franchise fees earned from hotels managed and franchised worldwide: |
– | Management fees primarily consist of a base fee, which is generally computed as a percentage of gross revenues, and an incentive fee, which is generally computed based on a hotel profitability measure. Base fee revenues are recognized when earned in accordance with the terms of the contract. We recognize incentive fees that would be due as if the contract were to terminate at that date, exclusive of any termination fees payable or receivable by us. |
– | Realized gains from the sale of hotel real estate assets where we maintain substantial continuing involvement in the form of a long-term management contract are deferred and recognized as management fee revenue over the term of the underlying management contract. |
– | Franchise fees consist of an initial application fee and continuing royalty fees calculated based on a percentage of gross room revenues and in certain circumstances, food and beverage revenues and are recognized as the fees are earned and become due from the franchisee and when all material services or conditions relating to the sale have been substantially performed or satisfied by the franchisor. |
• | Other revenues: |
– | Other revenues include revenues from our co-branded credit card. We recognize revenue from our co-branded credit card upon: (1) the sale of points to our third-party partner and (2) the fulfillment or expiration of a card member's promotional awards. We receive fees from our third-party partner upon activation of each credit card once the card member reaches a specified level of spend, which we defer until the associated promotional nights awarded are redeemed or expired. |
– | Other revenues also include revenues from our vacation ownership business, earned through the date of the sale of the business in the fourth quarter of 2014. Prior to the sale, we recognized vacation ownership revenue when a minimum of 10% of the purchase price for the interval had been received, the period of cancellation with refund had expired, and receivables were deemed collectible. For sales that did not qualify for full revenue recognition, as the project had progressed beyond the preliminary stages, but had not yet reached completion, all revenue and associated direct expenses were initially deferred and recognized in earnings through the percentage-of-completion method. In periods subsequent to the sale of the business, we earn license fees that are recorded to management and franchise fees on our consolidated statements of income. |
• | Other revenues from managed properties represent the reimbursement of costs incurred on behalf of the owners of hotel properties we manage. These costs relate primarily to payroll costs at managed properties where we are the employer, as well as reservations, marketing and technology costs. Since the reimbursements are made based upon the costs incurred with no added margin, these revenues and corresponding expenses have no effect on our net income. |
• | $40 million and $70 million, respectively, related to sales proceeds from the 2014 dispositions of two Canadian hotels, as the Canadian tax regulations require a portion of the proceeds be classified as restricted until completion of regulatory review (see Note 7); |
• | $14 million and $13 million, respectively, related to debt service on bonds acquired in connection with the acquisition of the entity that owned Grand Hyatt San Antonio (see Note 9); in addition, we have $11 million and $10 million, respectively, recorded in other assets; and |
• | $9 million and $7 million, respectively, related to our captive insurance subsidiary for minimum capital and surplus requirements in accordance with local insurance regulations (see Note 14). |
• | Trading securities—recorded at fair value based on listed market prices or dealer price quotations where available. Realized gains and losses on trading securities are reflected in net gains and interest income from marketable securities held to fund operating programs on our consolidated statements of income. |
• | AFS securities—recorded at fair value as described in Note 4. Unrealized gains and losses on AFS securities are reported as part of accumulated other comprehensive loss on the consolidated balance sheets. Realized gains and losses on AFS securities are recognized in other income (loss), net on our consolidated statements of income. |
• | HTM securities—debt security investments which we have the ability to hold until maturity and are recorded at amortized cost. |
Buildings and improvements | 10-50 years |
Leasehold improvements | The shorter of the lease term or useful life of asset |
Furniture and equipment | 3-20 years |
Computers | 3-7 years |
Management and franchise agreement intangibles | Initial term of management or franchise agreement |
Lease related intangibles | Lease term |
Advanced booking intangibles | Period of the advanced bookings |
• | SARs—Each vested SAR gives the holder the right to the difference between the value of one share of our Class A common stock at the exercise date and the value of one share of our Class A common stock at the grant date. Vested SARs can be exercised over their life as determined in accordance with the LTIP. All SARs have a 10-year contractual term, are settled in shares of our Class A common stock and are accounted for as equity instruments. |
• | RSUs—Each vested RSU will be settled by delivery of a single share of our Class A common stock with the exception of insignificant portions of the March 2016, March 2015, February 2014, March 2013, and June 2013 awards which will be settled in cash. The value of the RSUs is based upon the fair value of our common stock at the grant date, based upon a valuation of the Company prior to IPO, or the closing stock price of our Class A common stock for the December 2009 award and all subsequent awards. Awards issued prior to our November 2009 IPO are deferred in nature and will be settled once all tranches of the award have fully vested or otherwise as provided in the relevant agreements, while all awards issued in December 2009 and later will be settled as each individual tranche vests under the relevant agreements. |
• | PSs—The Company has granted PSs to certain executive officers. The number of PSs that will ultimately vest with no further restrictions on transfer depends upon the performance of the Company at the end of the applicable three year performance period relative to the applicable performance target. The PSs vest in full if the maximum performance metric is achieved, and generally subject to continued employment through the applicable performance period. At the end of the performance period, the PSs that do not vest will be forfeited. The PSs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions. |
• | PSUs—The Company has granted PSUs to certain executive officers. PSUs vest and are settled in Class A common stock based upon the performance of the Company through the end of the applicable three year performance period relative to the applicable performance target, and generally subject to continued employment through the applicable performance period. The PSUs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions. |
• | Under existing guidance, gains on sales of real estate when we maintain substantial continuing involvement are deferred and amortized into management and franchise fee revenues. Upon adoption of ASU 2014-09, gains on sales of real estate assets will be recognized when control of the property transfers to the buyer. We expect any remaining unamortized deferred gains as of our date of adoption will be included as an adjustment to equity. For the year ended December 31, 2016, Hyatt recognized $21 million of management fee revenue related to the amortization of deferred gains. |
• | Under existing guidance, amortization of management and franchise agreement intangibles is recorded within depreciation and amortization on our consolidated statements of income. Upon adoption of ASU 2014-09, management and franchise agreement intangibles may meet the definition of consideration paid to a customer and therefore, could be recorded as contra-revenue within management and franchise fees on our consolidated statements of income. |
• | Under existing guidance, incentive fees are recognized in the amount that would be due as if the contract were to terminate at that date. Under ASU 2014-09, variable consideration is included in the transaction price only if it is probable that a significant reversal in the cumulative amount of revenue recognized would not occur when the uncertainty associated with the variable consideration is subsequently resolved. This may result in a different pattern of recognition for incentive fees for certain contracts. |
• | Under existing guidance, franchise application fees are recognized at a point in time. Upon adoption of ASU 2014-09, initial franchise application fees will be recognized over time. |
• | Owned and leased hotels—This segment derives its earnings from owned and leased hotel properties located predominantly in the United States, but also in certain international locations and for purposes of segment Adjusted EBITDA, includes our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany expenses related to management fees paid to the Company's management and franchising segments, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card, which are eliminated in consolidation. |
• | Americas management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in the United States, Latin America, Canada and the Caribbean. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to payroll costs at managed properties where the Company is the employer. These revenues and costs are recorded within other revenues from managed properties and other costs from managed properties, respectively. The intersegment revenues relate to management fees collected from the Company’s owned hotels, which are eliminated in consolidation. |
• | ASPAC management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Southeast Asia, as well as Greater China, Australia, South Korea, Japan and Micronesia. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to reservations, marketing and technology costs. These revenues and costs are recorded within other revenues from managed properties and other costs from managed properties, respectively. The intersegment revenues relate to management fees collected from the Company’s owned hotels, which are eliminated in consolidation. |
• | EAME/SW Asia management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located primarily in Europe, Africa, the Middle East, India, Central Asia and Nepal. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to reservations, marketing and technology costs. These revenues and costs are recorded within other revenues from managed properties and other costs from managed properties, respectively. The intersegment revenues relate to management fees collected from the Company’s owned hotels, which are eliminated in consolidation. |
|
Buildings and improvements | 10-50 years |
Leasehold improvements | The shorter of the lease term or useful life of asset |
Furniture and equipment | 3-20 years |
Computers | 3-7 years |
Management and franchise agreement intangibles | Initial term of management or franchise agreement |
Lease related intangibles | Lease term |
Advanced booking intangibles | Period of the advanced bookings |
December 31, 2016 | December 31, 2015 | ||||||
Current Assets | $ | 150 | $ | 179 | |||
Noncurrent Assets | 296 | 280 | |||||
Total Assets | $ | 446 | $ | 459 | |||
Current Liabilities | $ | 150 | $ | 179 | |||
Noncurrent Liabilities | 296 | 280 | |||||
Total Liabilities | $ | 446 | $ | 459 |
|
December 31, 2016 | December 31, 2015 | ||||||
Equity method investments | $ | 180 | $ | 304 | |||
Cost method investments | 6 | 23 | |||||
Total investments | $ | 186 | $ | 327 |
Ownership Interests | Investment Balance | |||||||||
December 31, 2016 | December 31, 2015 | |||||||||
Juniper Hotels Private Limited | 50.0 | % | $ | 37 | $ | 44 | ||||
Playa Hotels & Resorts B.V. | 23.7 | % | 23 | 28 | ||||||
San Jose Hotel Partners, L.L.C. | 40.0 | % | 15 | 12 | ||||||
Four One Five, L.L.C. | 49.0 | % | 15 | 5 | ||||||
Rio Preto Partners SARL | 70.0 | % | 14 | 7 | ||||||
Desarrolladora Hotel Acueducto S. de R.L. de C.V. | 50.0 | % | 13 | 15 | ||||||
Hotel Hoyo Uno, S. de R.L. de C.V. | 40.0 | % | 13 | 14 | ||||||
Hotel Am Belvedere GmbH & Co KG | 50.0 | % | 12 | — | ||||||
Wailea Hotel Holdings, L.L.C. (See Note 7) | — | % | — | 125 | ||||||
Other | 38 | 54 | ||||||||
Total | $ | 180 | $ | 304 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Total revenues | $ | 1,229 | $ | 1,079 | $ | 1,192 | |||||
Gross operating profit | 398 | 312 | 329 | ||||||||
Income from continuing operations | 160 | 33 | 31 | ||||||||
Net income | 160 | 33 | 31 |
December 31, 2016 | December 31, 2015 | ||||||
Current Assets | $ | 443 | $ | 472 | |||
Noncurrent Assets | 2,701 | 2,877 | |||||
Total Assets | $ | 3,144 | $ | 3,349 | |||
Current Liabilities | $ | 385 | $ | 625 | |||
Noncurrent Liabilities | 2,037 | 1,752 | |||||
Total Liabilities | $ | 2,422 | $ | 2,377 |
|
December 31, 2016 | December 31, 2015 | ||||||
Marketable securities held by Hyatt Gold Passport Fund (Note 2) | $ | 394 | $ | 384 | |||
Marketable securities held to fund deferred compensation plans held in rabbi trusts (Note 11) | 352 | 333 | |||||
Marketable securities held to fund our captive insurance companies | 65 | 82 | |||||
Total marketable securities held to fund operating programs | $ | 811 | $ | 799 | |||
Less current portion of marketable securities held to fund operating programs included in cash and cash equivalents, short-term investments, and prepaids and other assets | (109 | ) | (121 | ) | |||
Marketable securities held to fund operating programs included in other assets | $ | 702 | $ | 678 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Hyatt Gold Passport Fund | $ | 2 | $ | 1 | $ | 3 | |||||
Deferred compensation plans held in rabbi trusts | 17 | 3 | 12 | ||||||||
Total net gains and interest income from marketable securities held to fund operating programs | $ | 19 | $ | 4 | $ | 15 |
December 31, 2016 | December 31, 2015 | ||||||
Interest bearing money market funds | $ | 106 | $ | 5 | |||
Time deposits | 45 | 30 | |||||
Preferred shares | 290 | 335 | |||||
Total marketable securities held for investment purposes | $ | 441 | $ | 370 | |||
Less current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments | (151 | ) | (35 | ) | |||
Marketable securities held for investment purposes included in other assets | $ | 290 | $ | 335 |
December 31, 2016 | Cash and Cash Equivalents | Short-term Investments | Prepaids and Other Assets | Other Assets | |||||||||||||||
Level One - Quoted Prices in Active Markets for Identical Assets | |||||||||||||||||||
Interest bearing money market funds | $ | 114 | $ | 114 | $ | — | $ | — | $ | — | |||||||||
Mutual funds | 352 | — | — | — | 352 | ||||||||||||||
Level Two - Significant Other Observable Inputs | |||||||||||||||||||
Time deposits | 59 | — | 46 | — | 13 | ||||||||||||||
U.S. government obligations | 142 | — | — | 33 | 109 | ||||||||||||||
U.S. government agencies | 53 | — | 9 | 8 | 36 | ||||||||||||||
Corporate debt securities | 181 | — | 1 | 35 | 145 | ||||||||||||||
Mortgage-backed securities | 22 | — | — | 5 | 17 | ||||||||||||||
Asset-backed securities | 34 | — | — | 8 | 26 | ||||||||||||||
Municipal and provincial notes and bonds | 5 | — | — | 1 | 4 | ||||||||||||||
Level Three - Significant Unobservable Inputs | |||||||||||||||||||
Preferred Shares | 290 | — | — | — | 290 | ||||||||||||||
Total | $ | 1,252 | $ | 114 | $ | 56 | $ | 90 | $ | 992 |
December 31, 2015 | Cash and Cash Equivalents | Short-term Investments | Prepaids and Other Assets | Other Assets | |||||||||||||||
Level One - Quoted Prices in Active Markets for Identical Assets | |||||||||||||||||||
Interest bearing money market funds | $ | 18 | $ | 18 | $ | — | $ | — | $ | — | |||||||||
Mutual funds | 333 | — | — | — | 333 | ||||||||||||||
Level Two - Significant Other Observable Inputs | |||||||||||||||||||
Time deposits | 45 | — | 38 | — | 7 | ||||||||||||||
U.S. government obligations | 131 | — | — | 32 | 99 | ||||||||||||||
U.S. government agencies | 83 | — | 6 | 10 | 67 | ||||||||||||||
Corporate debt securities | 168 | — | 2 | 36 | 130 | ||||||||||||||
Mortgage-backed securities | 26 | — | — | 6 | 20 | ||||||||||||||
Asset-backed securities | 27 | — | — | 7 | 20 | ||||||||||||||
Municipal and provincial notes and bonds | 3 | — | — | 1 | 2 | ||||||||||||||
Level Three - Significant Unobservable Inputs | |||||||||||||||||||
Preferred shares | 335 | — | — | — | 335 | ||||||||||||||
Total | $ | 1,169 | $ | 18 | $ | 46 | $ | 92 | $ | 1,013 |
2016 | 2015 | ||||||
Fair value at January 1 | $ | 335 | $ | 280 | |||
Gross unrealized gains | 19 | 55 | |||||
Gross unrealized losses | (29 | ) | — | ||||
Realized losses | (6 | ) | — | ||||
Interest income | 12 | — | |||||
Cash redemption | (41 | ) | — | ||||
Fair value at December 31 | $ | 290 | $ | 335 |
December 31, 2016 | December 31, 2015 | ||||
Expected term | 1 year | 0.75 years | |||
Risk-free Interest Rate | 0.85 | % | 0.57 | % | |
Volatility | 46.5 | % | 46.0 | % | |
Dividend Yield | 12.0 | % | 12.0 | % |
2016 | |
Discount rate | 7.25% - 9.00% |
Terminal capitalization rate (1) | 5.50% - 7.75% |
|
December 31, 2016 | December 31, 2015 | ||||||
Land | $ | 901 | $ | 674 | |||
Buildings | 4,125 | 3,898 | |||||
Leasehold improvements | 202 | 220 | |||||
Furniture, equipment and computers | 1,316 | 1,209 | |||||
Construction in progress | 90 | 251 | |||||
6,634 | 6,252 | ||||||
Accumulated depreciation | (2,364 | ) | (2,221 | ) | |||
Total property and equipment, net | $ | 4,270 | $ | 4,031 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Depreciation expense | $ | 315 | $ | 289 | $ | 324 |
|
December 31, 2016 | December 31, 2015 | ||||||
Unsecured financing to hotel owners | 119 | 120 | |||||
Less allowance for losses | (100 | ) | (98 | ) | |||
Less current portion included in receivables, net | — | (2 | ) | ||||
Total long-term financing receivables, net | $ | 19 | $ | 20 |
Secured Financing | Unsecured Financing | Total | |||||||||
Allowance at January 1, 2016 | $ | — | $ | 98 | $ | 98 | |||||
Provisions | — | 10 | 10 | ||||||||
Write-offs | — | (8 | ) | (8 | ) | ||||||
Allowance at December 31, 2016 | $ | — | $ | 100 | $ | 100 |
Secured Financing | Unsecured Financing | Total | |||||||||
Allowance at January 1, 2015 | $ | 13 | $ | 87 | $ | 100 | |||||
Provisions | 3 | 7 | 10 | ||||||||
Write-offs | (1 | ) | — | (1 | ) | ||||||
Recoveries | (9 | ) | — | (9 | ) | ||||||
Other adjustments | (6 | ) | 4 | (2 | ) | ||||||
Allowance at December 31, 2015 | $ | — | $ | 98 | $ | 98 |
December 31, 2016 | |||||||||||||||
Gross Loan Balance (Principal and Interest) | Related Allowance | Net Financing Receivables | Gross Receivables on Non-Accrual Status | ||||||||||||
Loans | $ | 13 | $ | — | $ | 13 | $ | — | |||||||
Impaired loans (1) | 56 | (56 | ) | — | 56 | ||||||||||
Total loans | 69 | (56 | ) | 13 | 56 | ||||||||||
Other financing arrangements | 50 | (44 | ) | 6 | 44 | ||||||||||
Total unsecured financing receivables | $ | 119 | $ | (100 | ) | $ | 19 | $ | 100 |
December 31, 2015 | |||||||||||||||
Gross Loan Balance (Principal and Interest) | Related Allowance | Net Financing Receivables | Gross Receivables on Non-Accrual Status | ||||||||||||
Loans | $ | 15 | $ | — | $ | 15 | $ | — | |||||||
Impaired loans (2) | 58 | (58 | ) | — | 58 | ||||||||||
Total loans | 73 | (58 | ) | 15 | 58 | ||||||||||
Other financing arrangements | 47 | (40 | ) | 7 | 40 | ||||||||||
Total unsecured financing receivables | $ | 120 | $ | (98 | ) | $ | 22 | $ | 98 |
|
December 31, 2016 | December 31, 2015 | ||||
Expected term | 1 year | 0.75 years | |||
Risk-free Interest Rate | 0.85 | % | 0.57 | % | |
Volatility | 46.5 | % | 46.0 | % | |
Dividend Yield | 12.0 | % | 12.0 | % |
2016 | |
Discount rate | 7.25% - 9.00% |
Terminal capitalization rate (1) | 5.50% - 7.75% |
Cash and cash equivalents | $ | 12 | |
Receivables | 3 | ||
Inventories | 13 | ||
Prepaids and other assets | 1 | ||
Property and equipment | 323 | ||
Total assets | $ | 352 | |
Current liabilities | 10 | ||
Total liabilities | $ | 10 | |
Total net assets acquired | $ | 342 |
Cash and cash equivalents | $ | 7 | |
Receivables | 4 | ||
Inventories | 1 | ||
Property and equipment | 207 | ||
Goodwill | 17 | ||
Intangibles | 4 | ||
Deferred tax assets | 1 | ||
Total assets | $ | 241 | |
Current portion of long-term debt | $ | 4 | |
Current liabilities | 8 | ||
Long-term debt | 65 | ||
Total liabilities | 77 | ||
Total net assets acquired | $ | 164 |
|
Owned and Leased Hotels | Americas Management and Franchising | Total | |||||||||
Balance at January 1, 2015 | |||||||||||
Goodwill | $ | 195 | $ | 33 | $ | 228 | |||||
Accumulated impairment losses | (95 | ) | — | (95 | ) | ||||||
Goodwill, net | $ | 100 | $ | 33 | $ | 133 | |||||
Activity during the year | |||||||||||
Foreign exchange* | (4 | ) | — | (4 | ) | ||||||
Balance at December 31, 2015 | |||||||||||
Goodwill | 191 | 33 | 224 | ||||||||
Accumulated impairment losses | (95 | ) | — | (95 | ) | ||||||
Goodwill, net | $ | 96 | $ | 33 | $ | 129 | |||||
Activity during the year | |||||||||||
Foreign exchange* | (4 | ) | — | (4 | ) | ||||||
Balance at December 31, 2016 | |||||||||||
Goodwill | 187 | 33 | 220 | ||||||||
Accumulated impairment losses | (95 | ) | — | (95 | ) | ||||||
Goodwill, net | $ | 92 | $ | 33 | $ | 125 |
December 31, 2016 | Weighted Average Useful Lives | December 31, 2015 | ||||||||
Management and franchise agreement intangibles | $ | 589 | 25 | $ | 535 | |||||
Lease related intangibles | 115 | 111 | 136 | |||||||
Brand intangibles | 16 | — | 7 | |||||||
Advanced booking intangibles | 11 | 6 | 12 | |||||||
Other | 6 | 14 | 8 | |||||||
737 | 698 | |||||||||
Accumulated amortization | (138 | ) | (151 | ) | ||||||
Intangibles, net | $ | 599 | $ | 547 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Amortization expense | $ | 27 | $ | 31 | $ | 30 |
Years Ending December 31, | |||
2017 | $ | 32 | |
2018 | 30 | ||
2019 | 30 | ||
2020 | 30 | ||
2021 | 29 |
|
December 31, 2016 | December 31, 2015 | ||||||
$250 million senior unsecured notes maturing in 2016—3.875% | $ | — | $ | 250 | |||
$196 million senior unsecured notes maturing in 2019—6.875% | 196 | 196 | |||||
$250 million senior unsecured notes maturing in 2021—5.375% | 250 | 250 | |||||
$350 million senior unsecured notes maturing in 2023—3.375% | 350 | 350 | |||||
$400 million senior unsecured notes maturing in 2026—4.850% | 400 | — | |||||
Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | 130 | 130 | |||||
Contract Revenue Bonds, Senior Taxable Series 2005B | 59 | 63 | |||||
Floating average rate construction loan | 79 | 65 | |||||
Senior secured term loan | — | 64 | |||||
Revolving credit facility | 100 | — | |||||
Other | 1 | — | |||||
Long-term debt before capital lease obligations | 1,565 | 1,368 | |||||
Capital lease obligations | 15 | 16 | |||||
Total long-term debt | 1,580 | 1,384 | |||||
Less current maturities | (119 | ) | (328 | ) | |||
Less unamortized discounts and deferred financing fees | (16 | ) | (14 | ) | |||
Total long-term debt, net of current maturities | $ | 1,445 | $ | 1,042 |
Years Ending December 31, | |||
2017 | $ | 119 | |
2018 | 19 | ||
2019 | 215 | ||
2020 | 19 | ||
2021 | 269 | ||
Thereafter | 939 | ||
Total | $ | 1,580 |
December 31, 2016 | |||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | |||||||||||||||
Debt, excluding capital lease obligations | $ | 1,549 | $ | 1,642 | $ | — | $ | 1,450 | $ | 192 |
December 31, 2015 | |||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level One) | Significant Other Observable Inputs (Level Two) | Significant Unobservable Inputs (Level Three) | |||||||||||||||
Debt, excluding capital lease obligations | $ | 1,354 | $ | 1,421 | $ | — | $ | 1,277 | $ | 144 |
|
Years Ending December 31, | Operating Leases | Capital Leases | |||||
2017 | $ | 41 | $ | 2 | |||
2018 | 35 | 3 | |||||
2019 | 39 | 3 | |||||
2020 | 29 | 2 | |||||
2021 | 26 | 2 | |||||
Thereafter | 444 | 8 | |||||
Total minimum lease payments | $ | 614 | $ | 20 | |||
Less amount representing interest | 5 | ||||||
Present value of minimum lease payments | $ | 15 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Minimum rentals | $ | 37 | $ | 34 | $ | 35 | |||||
Contingent rentals | 53 | 53 | 49 | ||||||||
Total | $ | 90 | $ | 87 | $ | 84 |
Years Ending December 31, | |||
2017 | $ | 22 | |
2018 | 17 | ||
2019 | 13 | ||
2020 | 12 | ||
2021 | 11 | ||
Thereafter | 58 | ||
Total minimum lease receipts | $ | 133 |
|
December 31, 2016 | December 31, 2015 | ||||||
Deferred gains on sales of hotel properties | $ | 363 | $ | 367 | |||
Deferred compensation plans (see Note 11) | 352 | 333 | |||||
Hyatt Gold Passport Fund (see Note 2) | 296 | 280 | |||||
Guarantee liabilities (see Note 14) | 124 | 120 | |||||
Other accrued income taxes (see Note 13) | 100 | 127 | |||||
Deferred income taxes (see Note 13) | 57 | 59 | |||||
Defined benefit plans (see Note 11) | 20 | 20 | |||||
Other | 160 | 141 | |||||
Total | $ | 1,472 | $ | 1,447 |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
U.S. income before tax | $ | 180 | $ | 119 | $ | 493 | |||||
Foreign income before tax | 109 | 75 | 32 | ||||||||
Income before income taxes | $ | 289 | $ | 194 | $ | 525 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | 66 | $ | 134 | $ | 164 | |||||
State | 15 | 18 | 7 | ||||||||
Foreign | 7 | 21 | 36 | ||||||||
Total Current | $ | 88 | $ | 173 | $ | 207 | |||||
Deferred: | |||||||||||
Federal | $ | (12 | ) | $ | (78 | ) | $ | (10 | ) | ||
State | (2 | ) | (20 | ) | (6 | ) | |||||
Foreign | 11 | (5 | ) | (12 | ) | ||||||
Total Deferred | $ | (3 | ) | $ | (103 | ) | $ | (28 | ) | ||
Total | $ | 85 | $ | 70 | $ | 179 |
Years Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Statutory U.S. federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes—net of federal tax benefit | 3.4 | 3.5 | 3.4 | |||||
Impact of foreign operations (excluding unconsolidated hospitality ventures losses) | (5.4 | ) | (13.8 | ) | 0.9 | |||
Foreign unconsolidated hospitality ventures | 1.2 | 10.0 | 0.8 | |||||
Playa foreign tax credit benefit | (2.6 | ) | — | — | ||||
Tax contingencies | (5.2 | ) | (1.5 | ) | (2.6 | ) | ||
Change in valuation allowances | 3.6 | 3.1 | (1.0 | ) | ||||
General business credits | (0.8 | ) | (1.9 | ) | (0.4 | ) | ||
Equity based compensation | 0.4 | (0.5 | ) | 0.4 | ||||
Other | (0.1 | ) | 2.3 | (2.4 | ) | |||
Effective income tax rate | 29.5 | % | 36.2 | % | 34.1 | % |
December 31, 2016 | December 31, 2015 | ||||||
Deferred tax assets related to: | |||||||
Employee benefits | $ | 202 | $ | 196 | |||
Foreign and state net operating losses and credit carryforwards | 46 | 34 | |||||
Investments | 55 | 70 | |||||
Allowance for uncollectible assets | 36 | 36 | |||||
Intangibles | — | 4 | |||||
Deferred gains on sales of hotel properties | 134 | 142 | |||||
Hyatt Gold Passport Fund | 81 | 81 | |||||
Interest and state benefits | 2 | 2 | |||||
Unrealized losses | 5 | 5 | |||||
Other | 54 | 50 | |||||
Valuation allowance | (27 | ) | (17 | ) | |||
Total deferred tax asset | $ | 588 | $ | 603 | |||
Deferred tax liabilities related to: | |||||||
Property and equipment | $ | (224 | ) | $ | (258 | ) | |
Investments | (28 | ) | (33 | ) | |||
Intangibles | (14 | ) | — | ||||
Unrealized gains | (39 | ) | (45 | ) | |||
Prepaid expenses | (12 | ) | (13 | ) | |||
Other | (15 | ) | (12 | ) | |||
Total deferred tax liabilities | $ | (332 | ) | $ | (361 | ) | |
Net deferred tax assets | $ | 256 | $ | 242 | |||
Recognized in the balance sheet as: | |||||||
Deferred tax assets—noncurrent | $ | 313 | $ | 301 | |||
Deferred tax liabilities—noncurrent | (57 | ) | (59 | ) | |||
Total | $ | 256 | $ | 242 |
2016 | 2015 | ||||||
Unrecognized tax benefits—beginning balance | $ | 110 | $ | 40 | |||
Total increases—current period tax positions | 2 | 13 | |||||
Total (decreases) increases—prior period tax positions | (21 | ) | 69 | ||||
Lapse of statute of limitations | (5 | ) | (8 | ) | |||
Foreign currency fluctuation | — | (4 | ) | ||||
Unrecognized tax benefits—ending balance | $ | 86 | $ | 110 |
|
The Four Managed Hotels in France | Other Performance Guarantees | Total | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Beginning balance, January 1 | $ | 93 | $ | 106 | $ | 4 | $ | 5 | $ | 97 | $ | 111 | ||||||||||||
Initial guarantee obligation liability | — | — | 9 | — | 9 | — | ||||||||||||||||||
Amortization of initial guarantee obligation liability into income | (33 | ) | (10 | ) | (1 | ) | (2 | ) | (34 | ) | (12 | ) | ||||||||||||
Performance guarantee expense (income), net | 64 | 28 | (1 | ) | (1 | ) | 63 | 27 | ||||||||||||||||
Net (payments) receipts during the year | (57 | ) | (20 | ) | 2 | 2 | (55 | ) | (18 | ) | ||||||||||||||
Foreign currency exchange, net | (1 | ) | (11 | ) | — | — | (1 | ) | (11 | ) | ||||||||||||||
Ending balance, December 31 | $ | 66 | $ | 93 | $ | 13 | $ | 4 | $ | 79 | $ | 97 |
Property Description | Maximum Potential Future Payments | Maximum Exposure Net of Recoverability from Third Parties | Amount Recorded at December 31, 2016 | Amount Recorded at December 31, 2015 | Year of Guarantee Expiration | |||||||||||||
Hotel property in Washington (1), (3), (4), (5) | $ | 215 | $ | — | $ | 35 | $ | — | 2020 | |||||||||
Hotel properties in India (2), (3) | 177 | 177 | 21 | 27 | 2020 | |||||||||||||
Hotel property in Brazil (1) | 80 | 40 | 3 | 4 | 2020 | |||||||||||||
Hotel property in Minnesota | 25 | 25 | 2 | 2 | 2021 | |||||||||||||
Hotel property in Arizona (1), (4) | 25 | — | 2 | 3 | 2019 | |||||||||||||
Hotel properties in California (1) | 21 | 8 | 6 | — | 2020 | |||||||||||||
Hotel property in Colorado | 8 | 8 | — | — | 2017 | |||||||||||||
Other (1) | 25 | 1 | — | 3 | various, through 2017 | |||||||||||||
Total | $ | 576 | $ | 259 | $ | 69 | $ | 39 |
2016 | 2015 | ||
Discount rates | 10.6% - 12.6% | 9.5% - 12.6% | |
Stabilized growth rates | 1.8% - 4.8% | 1.8% - 4.8% | |
Capitalization rates (1) | 7.0% - 10.0% | 6.5% - 10.0% | |
Term | 0.2 - 7.0 years | 0.3 - 5.0 years |
|
Balance at January 1, 2016 | Current period other comprehensive income (loss) before reclassification | Amount reclassified from accumulated other comprehensive loss (a) | Balance at December 31, 2016 | ||||||||||||
Foreign currency translation adjustments | $ | (257 | ) | $ | (45 | ) | $ | 3 | $ | (299 | ) | ||||
Unrealized gains (losses) on AFS securities | 39 | (6 | ) | — | 33 | ||||||||||
Unrecognized pension cost | (7 | ) | — | — | (7 | ) | |||||||||
Unrealized gains (losses) on derivative instruments | (5 | ) | 1 | — | (4 | ) | |||||||||
Accumulated other comprehensive income (loss) | $ | (230 | ) | $ | (50 | ) | $ | 3 | $ | (277 | ) | ||||
(a) The amount reclassified from accumulated other comprehensive loss related to the sale of the shares of the company that owns Hyatt Regency Birmingham (U.K.) and was recorded within other long-term liabilities on our consolidated balance sheets. | |||||||||||||||
Balance at January 1, 2015 | Current period other comprehensive income (loss) before reclassification | Amount reclassified from accumulated other comprehensive loss (b) | Balance at December 31, 2015 | ||||||||||||
Foreign currency translation adjustments | $ | (155 | ) | $ | (123 | ) | $ | 21 | $ | (257 | ) | ||||
Unrealized gains on AFS securities | 6 | 33 | — | 39 | |||||||||||
Unrecognized pension cost | (5 | ) | (2 | ) | — | (7 | ) | ||||||||
Unrealized gains (losses) on derivative instruments | (6 | ) | 1 | — | (5 | ) | |||||||||
Accumulated other comprehensive income (loss) | $ | (160 | ) | $ | (91 | ) | $ | 21 | $ | (230 | ) | ||||
(b) The amount reclassified from accumulated other comprehensive loss was recognized within equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
SARs | $ | 10 | $ | 9 | $ | 19 | |||||
RSUs | 15 | 17 | 31 | ||||||||
PSUs and PSs | — | (3 | ) | 4 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
SARs | $ | 4 | $ | 3 | $ | 7 | |||||
RSUs | 5 | 5 | 8 | ||||||||
PSUs and PSs | — | (1 | ) | 2 |
Grant Date | SARs Granted | Value at Date of Grant | Vesting Period | Vesting Start Month | ||||||||
March 2016 | 45,710 | $ | 14.22 | 33 | % annually | March 2017 | ||||||
March 2016 | 878,714 | 14.54 | 25 | % annually | March 2017 | |||||||
March 2015 | 380,604 | 20.64 | 25 | % annually | March 2016 | |||||||
March 2015 | 41,373 | 24.17 | 50 | % annually | March 2018 | |||||||
February 2015 | 39,401 | 25.38 | 100 | % at vest | March 2018 | |||||||
February 2014 | 327,307 | 22.57 | 25 | % annually | March 2015 |
2016 | 2015 | 2014 | |||||||||
Exercise Price | $ | 47.36 | $ | 56.57 | $ | 49.39 | |||||
Expected Life in Years | 6.227 | 6.309 | 6.290 | ||||||||
Risk-free Interest Rate | 1.55 | % | 1.63 | % | 1.93 | % | |||||
Expected Volatility | 27.72 | % | 35.39 | % | 44.32 | % | |||||
Annual Dividend Yield | — | % | — | % | — | % |
SAR Units | Weighted Average Exercise Price (in whole dollars) | Weighted Average Contractual Term | ||||||
Outstanding at December 31, 2015: | 3,876,937 | $ | 47.63 | 5.03 | ||||
Granted | 924,424 | 47.36 | 9.22 | |||||
Exercised | (325,339 | ) | 43.09 | 2.08 | ||||
Forfeited or canceled | (22,035 | ) | 53.32 | 5.04 | ||||
Outstanding at December 31, 2016: | 4,453,987 | $ | 47.88 | 5.25 | ||||
Exercisable at December 31, 2016: | 2,855,153 | $ | 47.09 | 3.44 |
Grant Date | RSUs | Value | Total Value (in millions) | Vesting Period | |||||||||
December 2016 | 40,633 | $ | 56.60 | $ | 2 | 4 years | |||||||
March 2016 | 444,629 | 47.36 | 21 | 4 years | |||||||||
December 2015 | 4,089 | 48.90 | — | 4 years | |||||||||
September 2015 | 3,898 | 51.30 | — | 3 years | |||||||||
September 2015 | 8,576 | 51.30 | — | 4 years | |||||||||
May 2015 | 23,746 | 58.95 | 1 | 4 years | |||||||||
March 2015 | 380,939 | 56.27 | 21 | 4 years | |||||||||
February 2015 | 29,278 | 59.77 | 2 | 4 years | |||||||||
September 2014 | 2,452 | 61.17 | — | 4 years | |||||||||
February 2014 | 376,328 | 49.39 | 19 | 4 years |
Restricted Stock Units | Weighted Average Grant Date Fair Value (in whole dollars) | |||||
Nonvested at December 31, 2015: | 1,014,574 | $ | 50.02 | |||
Granted | 485,262 | 48.13 | ||||
Vested | (394,087 | ) | 47.42 | |||
Forfeited or canceled | (89,572 | ) | 49.78 | |||
Nonvested at December 31, 2016: | 1,016,177 | $ | 50.15 |
Year Granted | PSUs and PSs Granted | Weighted Average Grant Date Fair Value (in whole dollars) | Performance Period | Performance Period Start Date | |||||||
2016 PSUs | 111,620 | $ | 47.36 | 3 years | January 1, 2016 | ||||||
2015 PSs | 146,902 | $ | 56.27 | 3 years | January 1, 2015 | ||||||
2014 PSs | 162,906 | $ | 49.39 | 3 years | January 1, 2014 |
2017 | 2018 | 2019 | 2020 | Total | |||||||||||||||
SARs | $ | 3 | $ | 2 | $ | 1 | $ | — | $ | 6 | |||||||||
RSUs | 7 | 4 | 3 | 1 | 15 | ||||||||||||||
PSUs and PSs | 2 | 2 | — | — | 4 | ||||||||||||||
Total | $ | 12 | $ | 8 | $ | 4 | $ | 1 | $ | 25 |
|
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Owned and leased hotels | |||||||||||
Owned and leased hotels revenues | $ | 2,119 | $ | 2,079 | $ | 2,246 | |||||
Intersegment revenues (a) | 11 | — | — | ||||||||
Adjusted EBITDA | 516 | 493 | 523 | ||||||||
Depreciation and amortization | 285 | 277 | 322 | ||||||||
Capital expenditures | 200 | 225 | 208 | ||||||||
Americas management and franchising | |||||||||||
Management and franchise fees revenues | 371 | 354 | 327 | ||||||||
Other revenues from managed properties | 1,670 | 1,641 | 1,550 | ||||||||
Intersegment revenues (a) | 75 | 74 | 88 | ||||||||
Adjusted EBITDA | 318 | 300 | 265 | ||||||||
Depreciation and amortization | 18 | 19 | 18 | ||||||||
Capital expenditures | — | — | 1 | ||||||||
ASPAC management and franchising | |||||||||||
Management and franchise fees revenues | 96 | 91 | 88 | ||||||||
Other revenues from managed properties | 98 | 87 | 74 | ||||||||
Intersegment revenues (a) | 2 | 2 | 2 | ||||||||
Adjusted EBITDA | 57 | 55 | 49 | ||||||||
Depreciation and amortization | 1 | 1 | 1 | ||||||||
Capital expenditures | 1 | 1 | 1 | ||||||||
EAME/SW Asia management and franchising | |||||||||||
Management and franchise fees revenues | 65 | 67 | 77 | ||||||||
Other revenues from managed properties | 65 | 58 | 53 | ||||||||
Intersegment revenues (a) | 10 | 13 | 15 | ||||||||
Adjusted EBITDA | 33 | 33 | 43 | ||||||||
Depreciation and amortization | 5 | 5 | 6 | ||||||||
Capital expenditures | 1 | — | — | ||||||||
Corporate and other | |||||||||||
Revenues | 43 | 40 | 75 | ||||||||
Other revenues from managed properties | — | — | 30 | ||||||||
Adjusted EBITDA | (139 | ) | (131 | ) | (103 | ) | |||||
Depreciation and amortization | 33 | 18 | 7 | ||||||||
Capital expenditures | 9 | 43 | 43 | ||||||||
Eliminations (a) | |||||||||||
Revenues | (98 | ) | (89 | ) | (105 | ) | |||||
Adjusted EBITDA | — | — | — | ||||||||
Depreciation and amortization | — | — | — | ||||||||
Capital expenditures | — | — | — | ||||||||
TOTAL | |||||||||||
Revenues | $ | 4,429 | $ | 4,328 | $ | 4,415 | |||||
Adjusted EBITDA | 785 | 750 | 777 | ||||||||
Depreciation and amortization | 342 | 320 | 354 | ||||||||
Capital expenditures | 211 | 269 | 253 |
(a) | Intersegment revenues are included in the management and franchise fees revenues and owned and leased hotels revenues and eliminated in Eliminations. |
December 31, 2016 | December 31, 2015 | ||||||
Owned and leased hotels | $ | 5,393 | $ | 5,281 | |||
Americas management and franchising | 564 | 464 | |||||
ASPAC management and franchising | 128 | 131 | |||||
EAME/SW Asia management and franchising | 186 | 234 | |||||
Corporate and other | 1,478 | 1,481 | |||||
TOTAL | $ | 7,749 | $ | 7,591 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenues: | |||||||||||
United States | $ | 3,571 | $ | 3,494 | $ | 3,476 | |||||
All Foreign | 858 | 834 | 939 | ||||||||
Total | $ | 4,429 | $ | 4,328 | $ | 4,415 | |||||
December 31, 2016 | December 31, 2015 | ||||||||||
Property and equipment, net, Intangibles, net and Goodwill: | |||||||||||
United States | $ | 3,915 | $ | 3,562 | |||||||
All Foreign | 1,079 | 1,145 | |||||||||
Total | $ | 4,994 | $ | 4,707 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income attributable to Hyatt Hotels Corporation | $ | 204 | $ | 124 | $ | 344 | |||||
Interest expense | 76 | 68 | 71 | ||||||||
Provision for income taxes | 85 | 70 | 179 | ||||||||
Depreciation and amortization | 342 | 320 | 354 | ||||||||
EBITDA | 707 | 582 | 948 | ||||||||
Equity (earnings) losses from unconsolidated hospitality ventures | (68 | ) | 64 | (25 | ) | ||||||
Stock-based compensation expense | 25 | 23 | 49 | ||||||||
(Gains) losses on sales of real estate and other | 23 | (9 | ) | (311 | ) | ||||||
Asset impairments | — | 5 | 17 | ||||||||
Other (income) loss, net | (2 | ) | 5 | 17 | |||||||
Net income attributable to noncontrolling interests | — | — | 2 | ||||||||
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA | 100 | 80 | 80 | ||||||||
Adjusted EBITDA | $ | 785 | $ | 750 | $ | 777 |
|
For the years ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Performance guarantee liability amortization (Note 14) | 34 | 12 | 7 | ||||||||
Depreciation recovery | 25 | 12 | 2 | ||||||||
Interest income | 19 | 8 | 11 | ||||||||
Foreign currency gains (losses), net | 1 | (14 | ) | (3 | ) | ||||||
Realized losses (Note 4) | (6 | ) | — | — | |||||||
Performance guarantee expense, net (Note 14) | (63 | ) | (27 | ) | (23 | ) | |||||
Other | (8 | ) | 4 | (11 | ) | ||||||
Other income (loss), net | $ | 2 | $ | (5 | ) | $ | (17 | ) |
|
For the three months ended | |||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | ||||||||||||||||||||||||
Consolidated statements of income data: | |||||||||||||||||||||||||||||||
Owned and leased hotels | $ | 514 | $ | 519 | $ | 559 | $ | 516 | $ | 530 | $ | 500 | $ | 540 | $ | 509 | |||||||||||||||
Management and franchise fees | 116 | 110 | 115 | 107 | 107 | 103 | 112 | 105 | |||||||||||||||||||||||
Other revenues | 9 | 11 | 11 | 9 | 10 | 10 | 9 | 7 | |||||||||||||||||||||||
Other revenues from managed properties | 448 | 448 | 480 | 457 | 462 | 440 | 451 | 433 | |||||||||||||||||||||||
Total revenues | 1,087 | 1,088 | 1,165 | 1,089 | 1,109 | 1,053 | 1,112 | 1,054 | |||||||||||||||||||||||
Direct and selling, general, and administrative expenses | 1,027 | 1,019 | 1,063 | 1,021 | 1,047 | 965 | 998 | 995 | |||||||||||||||||||||||
Net income | 41 | 62 | 67 | 34 | 37 | 25 | 40 | 22 | |||||||||||||||||||||||
Net income attributable to Hyatt Hotels Corporation | 41 | 62 | 67 | 34 | 37 | 25 | 40 | 22 | |||||||||||||||||||||||
Net income per common share, basic | $ | 0.31 | $ | 0.48 | $ | 0.50 | $ | 0.25 | $ | 0.26 | $ | 0.18 | $ | 0.28 | $ | 0.15 | |||||||||||||||
Net income per common share, diluted | $ | 0.31 | $ | 0.47 | $ | 0.49 | $ | 0.25 | $ | 0.26 | $ | 0.18 | $ | 0.27 | $ | 0.15 |
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