General, administrative, and other

^[1]

290

168

139

^[1]

894

704

634

Merger-related costs and charges

159

386

Costs and Expenses, Total

20,535

15,704

13,136

OPERATING INCOME

2,359

1,368

1,350

Gains and other income, net

^[1]

688

Interest expense

(288)

(234)

(167)

Interest income

^[1]

Equity in earnings

^[1]

INCOME BEFORE INCOME TAXES

2,836

1,184

1,255

Provision for income taxes

(1,464)

(404)

(396)

NET INCOME

$ 1,372

$ 780

$ 859

EARNINGS PER SHARE

Earnings per share - basic (in USD per share)

$ 3.66

$ 2.68

$ 3.22

Earnings per share - diluted (in USD per share)

$ 3.61

$ 2.64

$ 3.15

[1]	See Footnote 19 “Related Party Transactions” for disclosure of related party amounts.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 1,372	$ 780	$ 859
Other comprehensive income (loss):
Foreign currency translation adjustments	478	(311)	(123)
Derivative instrument adjustments, net of tax	(14)	1	10
Unrealized (loss) gain on available-for-sale securities, net of tax	(2)	2	(7)
Pension and postretirement adjustments, net of tax	7	5	0
Reclassification of losses (gains), net of tax	11	2	(6)
Total other comprehensive income (loss), net of tax	480	(301)	(126)
Comprehensive income	$ 1,852	$ 479	$ 733

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions

Dec. 31, 2017

Dec. 31, 2016

Current assets

Cash and equivalents

$ 383

$ 858

Accounts and notes receivable, net

^[1]

1,991

1,695

Prepaid expenses and other

^[1]

224

230

Assets held for sale

149

588

Assets, current, total

2,747

3,371

Property and equipment, net

1,793

2,335

Goodwill and intangible assets, net, total

Intangible assets

8,805

9,270

Goodwill

9,207

7,598

18,012

16,868

Equity and cost method investments

^[1]

740

728

Notes receivable, net

142

245

Deferred tax assets

116

Other noncurrent assets

^[1]

421

477

Total assets

23,948

24,140

Current liabilities

Current portion of long-term debt

398

309

Accounts payable

^[1]

780

687

Accrued payroll and benefits

1,227

1,174

Liability for guest loyalty programs

2,064

1,866

Accrued expenses and other

^[1]

1,541

1,111

Liabilities, current, total

6,010

5,147

Long-term debt

7,840

8,197

Liability for guest loyalty programs

2,876

2,675

Deferred tax liabilities

^[1]

604

1,020

Additional paid-in-capital

^[1]

2,887

1,744

Shareholders’ equity

Class A Common Stock

5,770

5,808

Retained earnings

7,391

6,501

Treasury stock, at cost

(9,418)

(6,460)

Accumulated other comprehensive loss

(17)

(497)

Stockholders' deficit

3,731

5,357

Liabilities and deficit, total

23,948

24,140

Brands

Contract acquisition costs and other

Intangible assets

5,921

6,509

Intangible assets

^[1]

$ 2,884

$ 2,761

[1]	See Footnote 19 “Related Party Transactions” for disclosure of related party amounts.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

OPERATING ACTIVITIES

Adjustments to reconcile to cash provided by operating activities:

$ 1,372

$ 780

$ 859

Liability for guest loyalty program

^[1]

290

168

139

Share-based compensation

181

212

113

Income taxes

828

143

378

343

233

Merger-related charges

(124)

113

Working capital changes

(77)

(41)

(Gain) loss on asset dispositions

(687)

(25)

Other

117

Net cash provided by operating activities

2,436

1,682

1,515

INVESTING ACTIVITIES

Acquisition of a business, net of cash acquired

(2,412)

(137)

Capital expenditures

(240)

(199)

(305)

Dispositions

1,418

218

673

Loan advances

(93)

(32)

(66)

Loan collections

187

Contract acquisition costs

(189)

(80)

(121)

Redemption of debt security

121

Other

(63)

110

Net cash provided by (used in) investing activities

1,020

(2,409)

367

FINANCING ACTIVITIES

Commercial paper/Credit Facility, net

1,365

(140)

Issuance of long-term debt

1,482

790

Repayment of long-term debt

(310)

(326)

(325)

Issuance of Class A Common Stock

Dividends paid

(482)

(374)

(253)

Share-based compensation withholding taxes

(3,013)

(568)

(1,917)

(157)

(100)

(85)

Other

(24)

Net cash (used in) provided by financing activities

(3,931)

1,489

(1,890)

(DECREASE) INCREASE IN CASH AND EQUIVALENTS

(475)

762

(8)

CASH AND EQUIVALENTS, beginning of period

858

104

CASH AND EQUIVALENTS, end of period

$ 383

$ 858

$ 96

[1]	See Footnote 19 “Related Party Transactions” for disclosure of related party amounts.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($)
$ in Millions

Total

Class A Common Stock

Additional Paid-in- Capital

Retained Earnings

Treasury Stock, at Cost

Accumulated Other Comprehensive Loss

Beginning balance at Dec. 31, 2014

$ (2,200)

$ 5

$ 2,802

$ 4,286

$ (9,223)

$ (70)

Beginning balance (in shares) at Dec. 31, 2014

279,900,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Share-based compensation plans (in shares)

859

Other comprehensive loss

(126)

Dividends

(253)

2,100,000

Share-based compensation plans

(14)

Purchase of treasury stock (in shares)

(1,940)

(25,700,000)

Ending balance at Dec. 31, 2015

(3,590)

$ 5

2,821

4,878

(11,098)

(196)

Ending balance (in shares) at Dec. 31, 2015

256,300,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Share-based compensation plans (in shares)

780

Other comprehensive loss

(301)

Dividends

(374)

1,800,000

Share-based compensation plans

146

110

(21)

Purchase of treasury stock (in shares)

(573)

(8,000,000)

Starwood Combination

^[1]

9,269

2,877

1,238

5,154

Starwood Combination (in shares)

^[1]

136,000,000

Ending balance at Dec. 31, 2016

5,357

$ 5

5,808

6,501

(6,460)

(497)

Ending balance (in shares) at Dec. 31, 2016

386,100,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Share-based compensation plans (in shares)

1,372

Other comprehensive loss

480

Dividends

(482)

2,200,000

Share-based compensation plans

(38)

Purchase of treasury stock (in shares)

(3,025)

(29,200,000)

Ending balance at Dec. 31, 2017

$ 3,731

$ 5

$ 5,770

$ 7,391

$ (9,418)

$ (17)

Ending balance (in shares) at Dec. 31, 2017

359,100,000

^[2]

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Common stock, authorized (in shares)

800,000,000

Common stock, par value (in USD per share)

$ 0.01

Preferred stock, authorized (in shares)

10,000,000

Preferred stock, outstanding (in shares)

[1]	Represents Marriott common stock and equity-based awards issued in the Starwood Combination, which also resulted in the depletion of our accumulated historical losses on reissuances of treasury stock in Retained Earnings.
[2]	Our restated certificate of incorporation authorizes 800 million shares of our common stock, with a par value of $.01 per share and 10 million shares of preferred stock, without par value. At year-end 2017, we had 359.1 million of these authorized shares of our common stock and no preferred stock outstanding.

BASIS OF PRESENTATION	12 Months Ended
BASIS OF PRESENTATION	Dec. 31, 2017
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The consolidated financial statements present the results of operations, financial position, and cash flows of Marriott International, Inc. and subsidiaries (referred to in this report as “we,” “us,” “Marriott,” or “the Company.”). In order to make this report easier to read, we also refer throughout to (i) our Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Statements of Income as our “Income Statements,” (iii) our Consolidated Balance Sheets as our “Balance Sheets,” (iv) our Condensed Consolidated Statements of Cash Flows as our “Statements of Cash Flows,” (v) our properties, brands, or markets in the United States (“U.S.”) and Canada as “North America” or “North American,” and (vi) our properties, brands, or markets in our Caribbean and Latin America, Europe, and Middle East and Africa regions as “Other International,” and together with those in our Asia Pacific segment, as “International.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in these Notes to Consolidated Financial Statements, unless otherwise noted. Preparation of financial statements that conform with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates. The accompanying Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position at fiscal year-end 2017 and fiscal year-end 2016 and the results of our operations and cash flows for fiscal years 2017, 2016, and 2015. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements. Beginning in the 2017 first quarter, we reclassified branding fees for third-party residential sales and credit card licensing to the “Franchise fees” caption from the “Owned, leased, and other revenue” caption on our Income Statements, as we believe branding fees are more akin to franchise royalties than owned and leased hotel profits. Branding fees totaled $277 million for 2017. We reclassified prior period amounts, which totaled $181 million for 2016, and $131 million for 2015, to conform to our current presentation. In the 2017 first quarter, our Asia Pacific operating segment met the applicable accounting criteria to be a reportable segment. Our Europe, Middle East and Africa, and Caribbean and Latin America operating segments do not individually meet the criteria for separate disclosure as reportable segments. We reclassified prior period amounts to conform to our current presentation. See Footnote 18 “Business Segments.” Acquisition of Starwood Hotels & Resorts Worldwide On the Merger Date, we completed the Starwood Combination, after which Starwood became an indirect wholly-owned subsidiary of the Company. Accordingly, our Income Statements include Starwood’s results of operations from the Merger Date. See Footnote 3 “Acquisitions and Dispositions” for more information on the Starwood Combination.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition

Our revenues include: (1) base management and incentive management fees; (2) franchise fees (including licensing fees from MVW and Vistana of $101 million for 2017, $73 million for 2016, and $59 million for 2015); (3) revenues from lodging properties we own or lease; and (4) cost reimbursements. Management fees are typically composed of a base fee, which is a percentage of the revenues of hotels, and an incentive fee, which is generally based on hotel profitability. Franchise fees are typically composed of initial application fees, continuing royalties generated from our franchise programs, which permit the hotel owners and operators to use certain of our brand names, and branding fees for third-party residential sales and credit card licensing. Cost reimbursements include direct and indirect costs that are reimbursed to us by properties that we manage, franchise, or license.

Base Management and Incentive Management Fees: We recognize base management fees as revenue when we earn them under the contracts. In interim periods and at year-end, we recognize incentive management fees that would be due as if the contracts were to terminate at that date, exclusive of any termination fees payable or receivable by us.

Franchise Fee and License Fee Revenue: We recognize application fees at hotel opening. We recognize ongoing franchise fees and license fees as revenue in each accounting period as we earn those fees from the franchisee or licensee under the contracts.

Owned and Leased Units: We recognize room sales and revenues from other guest services for our owned and leased units when rooms are occupied and when we have rendered the services.

Cost Reimbursements: We generally recognize cost reimbursements from managed, franchised, and licensed properties when we incur the related reimbursable costs. These costs primarily consist of payroll and related expenses at managed properties where we are the employer and include certain operational and administrative costs as provided for in our contracts with the owners. As these costs have no added markup, the revenue and related expense have no impact on either our operating or net income.

Other Revenue: Includes termination fees and other property and brand revenues. We generally recognize other revenue as services are rendered and when collection is reasonably assured. Amounts received in advance are deferred as liabilities.

Real Estate Sales

We reduce gains on sales of real estate by our maximum exposure to loss if we have continuing involvement with the property and do not transfer substantially all the risks and rewards of ownership. In sales transactions where we retain a management contract, the terms and conditions of the management contract are generally comparable to the terms and conditions of the management contracts obtained directly with third-party owners in competitive processes.

Loyalty Programs

Loyalty Program members earn points based on the money they spend at our hotels; purchases of timeshare interval, fractional ownership, and residential products; and through participation in affiliated partners’ programs, such as those offered by credit card, car rental, and airline companies. Members can redeem points, which we track on their behalf, for stays at most of our hotels, airline tickets, airline frequent flyer program miles, rental cars, and a variety of other awards. Points cannot be redeemed for cash. We provide our Loyalty Programs as cross-brand marketing programs to participating properties, with the objective of operating the programs on a break-even basis over the long-term. We collect amounts that we expect will, in the aggregate, approximate the costs of point redemptions and program operating costs over time.

We defer revenue we receive from managed, franchised, and Marriott-owned/leased hotels and program partners. Our management and franchise agreements require that properties reimburse us currently for the costs of operating the Loyalty Programs, including marketing, promotion, communication with, and performing member services for Loyalty Program members. Due to the requirement that properties reimburse us for program operating costs as incurred, we recognize the related cost reimbursements revenues from properties for our Loyalty Programs when we incur and expense such costs. We also recognize the component of revenue from program partners that corresponds to program maintenance services when we incur and expense such costs. When points are redeemed we recognize the amounts we previously deferred as revenue and the corresponding expense relating to the costs of the awards redeemed.

The recorded liability related to these programs totaled $4,940 million at year-end 2017 compared to $4,541 million at year-end 2016. We estimate the reasonableness and the value of the future redemption obligations using statistical formulas that project timing of future point redemptions based on historical levels, including an estimate of the “breakage” for points that members will never redeem, and an estimate of the points that members will eventually redeem. A ten percent reduction in the estimate of “breakage” would have increased the estimated year-end 2017 liability by $269 million.

Profit Sharing Plan

We contribute to profit sharing plans for the benefit of employees meeting certain eligibility requirements who elect to participate in the plans. Participating employees specify the percentage of salary deferred. We recognized compensation costs from profit sharing of $119 million in 2017, $91 million in 2016, and $80 million in 2015.

Non-U.S. Operations

The U.S. dollar is the functional currency of our consolidated and unconsolidated entities operating in the U.S. The functional currency of our consolidated and unconsolidated entities operating outside of the U.S. is generally the principal currency of the economic environment in which the entity primarily generates and expends cash. We translate the financial statements of consolidated entities whose functional currency is not the U.S. dollar into U.S. dollars, and we do the same, as needed, for unconsolidated entities whose functional currency is not the U.S. dollar. We translate assets and liabilities at the exchange rate in effect as of the financial statement date, and translate income statement accounts using the weighted average exchange rate for the period. We include translation adjustments from currency exchange and the effect of exchange rate changes on intercompany transactions of a long-term investment nature as a separate component of shareholders’ equity. We report gains and losses from currency exchange rate changes for intercompany receivables and payables that are not of a long-term investment nature, as well as gains and losses from non-U.S. currency transactions, currently in operating costs and expenses, and those amounted to losses of $11 million in 2017, $4 million in 2016, and $6 million in 2015.

Share-Based Compensation

We grant share-based compensation awards at exercise prices or strike prices that equal the market price of our common stock on the date of grant. For all share-based awards, we measure compensation costs for our share-based payment transactions at fair value on the grant date, and we recognize those costs in our Financial Statements over the vesting period during which the employee provides service (“the service period”) in exchange for the award, which consists primarily of RSUs and SARs.

For SARs, on the grant date, we use a binomial lattice-based valuation model to estimate the fair value of each stock appreciation right granted. This valuation model uses a range of possible stock price outcomes over the term of the award, discounted back to a present value using a risk-free rate. Because of the limitations with closed-form valuation models, such as the Black-Scholes model, we have determined that this more flexible binomial model provides a better estimate of the fair value of our stock appreciation rights because it considers employee and non-employee director exercise behavior based on changes in the price of our stock and allows us to consider other dynamic assumptions. See Footnote 6 “Share-Based Compensation” for further information.

Income Taxes

We record the amounts of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events we have recognized in our Financial Statements or tax returns, using judgment in assessing future profitability and the likely future tax consequences of those events. We base our estimates of deferred tax assets and liabilities on current tax laws, rates and interpretations, and, in certain cases, business plans and other expectations about future outcomes. We develop our estimates of future profitability based on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations.

We generally recognize the effect of the tax law changes in the period of enactment. Changes in existing tax laws and rates, their related interpretations, and the uncertainty generated by the current economic environment may affect the amounts of our deferred tax liabilities or the valuations of our deferred tax assets over time. Our accounting for deferred tax consequences represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, we report provisional amounts if we are able to determine a reasonable estimate but do not have the necessary information available, prepared, and analyzed in reasonable detail to complete the accounting for the U.S. Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”). We may revise our estimates as we finalize our accounting during a measurement period of up to one year from the enactment of the 2017 Tax Act.

For tax positions we have taken or expect to take in a tax return, we apply a more likely than not threshold, under which we must conclude a tax position is more likely than not to be sustained, assuming that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information, to continue to recognize the benefit. In determining our provision for income taxes, we use judgment, reflecting our estimates and assumptions, in applying the more likely than not threshold. We recognize accrued interest and penalties for our unrecognized tax benefits as a component of tax expense. See Footnote 7 “Income Taxes” for further information.

Cash and Equivalents

We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents.

Accounts Receivable

Our accounts receivable primarily consist of amounts due from hotel owners with whom we have management and franchise agreements and include reimbursements of costs we incurred on behalf of managed and franchised properties. We generally collect these receivables within 30 days. We record an accounts receivable reserve when losses are probable, based on an assessment of historical collection activity and current business conditions. Our accounts receivable reserve was $29 million at year-end 2017 and $20 million at year-end 2016.

Assets Held for Sale

We consider properties to be assets held for sale when (1) management commits to a plan to sell the property; (2) it is unlikely that the disposal plan will be significantly modified or discontinued; (3) the property is available for immediate sale in its present condition; (4) actions required to complete the sale of the property have been initiated; (5) sale of the property is probable and we expect the completed sale will occur within one year; and (6) the property is actively being marketed for sale at a price that is reasonable given our estimate of current market value. Upon designation of a property as an asset held for sale, we record the property’s value at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and we cease depreciation. See Footnote 3 “Acquisitions and Dispositions” for additional information on planned dispositions.

Goodwill

We test goodwill for potential impairment at least annually, or more frequently if an event or other circumstance indicates that we may not be able to recover the carrying amount of the net assets of the reporting unit. In evaluating goodwill for impairment, we may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If we bypass the qualitative assessment, or if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we perform a quantitative impairment test by comparing the fair value of a reporting unit with its carrying amount.

We calculate the estimated fair value of a reporting unit using a weighting of the income and market approaches. For the income approach, we use internally developed discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. For the market approach, we use internal analyses based primarily on market comparables. We base these assumptions on our historical data and experience, third-party appraisals, industry projections, micro and macro general economic condition projections, and our expectations.

In 2017, we elected to change the date for our annual goodwill impairment test from December 31 to October 1 of each year for all reporting units. We made this voluntary change to provide more time to complete our annual goodwill impairment test in advance of our year-end reporting cycle. The change, which we applied prospectively, did not delay, accelerate, or avoid any impairment charge and does not represent a material change in our method of applying ASC 350.

We have had no goodwill impairment charges for the last three fiscal years.

Intangibles and Long-Lived Assets

We assess indefinite-lived intangible assets for potential impairment and continued indefinite use annually, or more frequently if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Like goodwill, we may first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying amount. If the carrying value of the asset exceeds the fair value, we recognize an impairment loss in the amount of that excess.

We test definite-lived intangibles and long-lived asset groups for recoverability when changes in circumstances indicate that we may not be able to recover the carrying value; for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, or significant negative industry or economic trends. We also test recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and we expect to complete the plan within a year. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect the asset group will generate. If the comparison indicates that we will not be able to recover the carrying value of an asset group, we recognize an impairment loss for the amount by which the carrying value exceeds the estimated fair value. When we recognize an impairment loss for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life.

We calculate the estimated fair value of an intangible asset or asset group using the income approach or the market approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation.

Investments

We may hold an equity interest in ventures established to develop or acquire and own hotel properties. These ventures are generally limited liability companies or limited partnerships. We account for investments in such entities using the cost method of accounting when we hold an interest so minor that we have virtually no influence over the operating and financial policies of the investee and the equity method of accounting when we hold an interest more than so minor that it allows us to have influence, but not control, over the operating and financial policies of the investee. We account for investments in other ventures using the equity method of accounting when we exercise significant influence over the entities. If we do not exercise significant influence, we account for the investment using the cost method of accounting. We consolidate entities that we control.

Under the accounting guidance for the consolidation of variable interest entities, we analyze our variable interests, including equity investments, loans, and guarantees, to determine if an entity in which we have a variable interest is a variable interest entity. Our analysis includes both quantitative and qualitative reviews. We base our quantitative analysis on the forecasted cash flows of the entity, and our qualitative analysis on our review of the design of the entity, its organizational structure including decision-making ability, and relevant financial agreements. We also use our qualitative analysis to determine if we must consolidate a variable interest entity as its primary beneficiary.

We evaluate an investment for impairment when circumstances indicate that we may not be able to recover the carrying value. For example, when evaluating our ventures, we consider loan defaults, significant underperformance relative to historical or projected operating performance, or significant negative industry or economic trends.

We impair investments we account for using the equity and cost methods of accounting when we determine that there has been an “other-than-temporary” decline in the venture’s estimated fair value compared to its carrying value. Additionally, a venture’s commitment to a plan to sell some or all of its assets could cause us to evaluate the recoverability of the venture’s individual long-lived assets and possibly the venture itself.

We calculate the estimated fair value of an investment using either a market approach or an income approach. We utilize the same assumptions and methodology for the income approach that we describe in the “Goodwill” caption. For the market approach, we use internal analyses based primarily on market comparables and assumptions about market capitalization rates, growth rates, and inflation.

When we acquire an investment that qualifies for the equity method of accounting, we determine the acquisition date fair value of the identifiable assets and liabilities. If our carrying amount exceeds our proportional share in the equity of the investee, we amortize the difference on a straight-line basis over the underlying assets’ estimated useful lives when calculating equity method earnings attributable to us, excluding the difference attributable to land, which we do not amortize.

For investments in securities classified as available-for-sale, we determine the cost basis of the securities sold using specific identification, meaning that we track our securities individually.

Fair Value Measurements

We have various financial instruments we must measure at fair value on a recurring basis, including certain marketable securities and derivatives. See Footnote 16 “Fair Value of Financial Instruments” for further information. We also apply the provisions of fair value measurement to various nonrecurring measurements for our financial and nonfinancial assets and liabilities.

Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy:

Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3 includes unobservable inputs that reflect our assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data.

Derivative Instruments

We record derivatives at fair value. The designation of a derivative instrument as a hedge and its ability to meet the hedge accounting criteria determine how we reflect the change in fair value of the derivative instrument in our Financial Statements. A derivative qualifies for hedge accounting if, at inception, we expect the derivative will be highly effective in offsetting the underlying hedged cash flows or fair value and we fulfill the hedge documentation standards at the time we enter into the derivative contract. We designate a hedge as a cash flow hedge, fair value hedge, or a net investment in non-U.S. operations hedge based on the exposure we are hedging. For the effective portion of qualifying cash flow hedges, we record changes in fair value in other comprehensive income (“OCI”). We release the derivative’s gain or loss from OCI to match the timing of the underlying hedged items’ effect on earnings.

We review the effectiveness of our hedging instruments quarterly, recognize current period hedge ineffectiveness immediately in earnings, and discontinue hedge accounting for any hedge that we no longer consider to be highly effective. We recognize changes in fair value for derivatives not designated as hedges or those not qualifying for hedge accounting in current period earnings. Upon termination of cash flow hedges, we release gains and losses from OCI based on the timing of the underlying cash flows or revenue recognized, unless the termination results from the failure of the intended transaction to occur in the expected time frame. Such untimely transactions require us to immediately recognize in earnings the gains and/or losses that we previously recorded in OCI.

Changes in interest rates, currency exchange rates, and equity securities expose us to market risk. We manage our exposure to these risks by monitoring available financing alternatives, as well as through development and application of credit granting policies. We also use derivative instruments, including cash flow hedges, net investment in non-U.S. operations hedges, fair value hedges, and other derivative instruments, as part of our overall strategy to manage our exposure to market risks. As a matter of policy, we only enter into transactions that we believe will be highly effective at offsetting the underlying risk, and we do not use derivatives for trading or speculative purposes.

Loan Loss Reserves

We may make senior, mezzanine, and other loans to owners of hotels that we operate or franchise, generally to facilitate the development of a hotel and sometimes to facilitate brand programs or initiatives. We expect the owners to repay the loans in accordance with the loan agreements, or earlier as the hotels mature and capital markets permit. We use metrics such as loan-to-value ratios and debt service coverage, and other information about collateral and from third party rating agencies to assess the credit quality of the loan receivable, both upon entering into the loan agreement and on an ongoing basis as applicable.

On a regular basis, we individually assess loans for impairment. We use internally generated cash flow projections to determine if we expect the loans will be repaid under the terms of the loan agreements. If we conclude that it is probable a borrower will not repay a loan in accordance with its terms, we consider the loan impaired and begin recognizing interest income on a cash basis. To measure impairment, we calculate the present value of expected future cash flows discounted at the loan’s original effective interest rate or the estimated fair value of the collateral. If the present value or the estimated collateral is less than the carrying value of the loan receivable, we establish a specific impairment reserve for the difference.

If it is likely that a loan will not be collected based on financial or other business indicators, including our historical experience, our policy is to charge off the loan in the quarter in which we deem it uncollectible.

Guarantees

We measure and record our liability for the fair value of a guarantee on a nonrecurring basis, that is when we issue or modify a guarantee, using Level 3 internally developed inputs, as described above in this footnote under the heading “Fair Value Measurements.” We base our calculation of the estimated fair value of a guarantee on the income approach or the market approach, depending on the type of guarantee. For the income approach, we use internally developed discounted cash flow and Monte Carlo simulation models that include the following assumptions, among others: projections of revenues and expenses and related cash flows based on assumed growth rates and demand trends; historical volatility of projected performance; the guaranteed obligations; and applicable discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations. For the market approach, we use internal analyses based primarily on market comparable data and our assumptions about market capitalization rates, credit spreads, growth rates, and inflation.

The offsetting entry for the guarantee liability depends on the circumstances in which the guarantee was issued. Funding under the guarantee reduces the recorded liability. In most cases, when we do not forecast any funding, we amortize the liability into income on a straight-line basis over the remaining term of the guarantee. On a quarterly basis, we evaluate all material estimated liabilities based on the operating results and the terms of the guarantee. If we conclude that it is probable that we will be required to fund a greater amount than previously estimated, we record a loss except to the extent that the applicable contracts provide that the advance can be recovered as a loan.

Self-Insurance Programs

We self-insure for certain levels of liability, workers’ compensation, and employee medical coverage. We accrue estimated costs of these self-insurance programs at the present value of projected settlements for known and incurred but not reported claims. We use a discount rate of two percent to determine the present value of the projected settlements, which we consider to be reasonable given our history of settled claims, including payment patterns and the fixed nature of the individual settlements.

Legal Contingencies

We are subject to various legal proceedings and claims, the outcomes of which are uncertain. We record an accrual for legal contingencies when we determine that it is probable that we have incurred a liability and we can reasonably estimate the amount of the loss. In making such determinations we evaluate, among other things, the probability of an unfavorable outcome and, when we believe it probable that a liability has been incurred, our ability to make a reasonable estimate of the loss. We review these accruals each reporting period and make revisions based on changes in facts and circumstances.

Business Combinations

We allocate the purchase price of an acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. We recognize as goodwill the amount by which the purchase price of an acquired entity exceeds the net of the fair values assigned to the assets acquired and liabilities assumed. In determining the fair values of assets acquired and liabilities assumed, we use various recognized valuation methods including the income and market approaches. Further, we make assumptions within certain valuation techniques, including discount rates, royalty rates, and the amount and timing of future cash flows. We record the net assets and results of operations of an acquired entity in our Financial Statements from the acquisition date. We initially perform these valuations based upon preliminary estimates and assumptions by management or independent valuation specialists under our supervision, where appropriate, and make revisions as estimates and assumptions are finalized. We expense acquisition-related costs as we incur them. See Footnote 3 “Acquisitions and Dispositions” for additional information.

New Accounting Standards Not Yet Adopted

Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers” (Topic 606). The Financial Accounting Standards Board issued ASU 2014-09, and several related ASUs, which supersede the revenue recognition requirements in Topic 605, as well as most industry-specific guidance, and provide a principles-based, comprehensive framework in Topic 606, Revenue Recognition. ASU 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. We will use the full retrospective transition method when we adopt ASU 2014-09 in our 2018 first quarter.

We are still assessing the impact that ASU 2014-09 will have on our financial statements and disclosures, but we believe that our recognition of base management fees, ongoing franchise fees, and owned and leased revenues will remain largely unchanged. We expect that the timing of our recognition of gains from the sale of real estate assets will also remain unchanged. Under ASU 2014-09, we will recognize a gain or loss on real estate transactions when control of the asset transfers to the buyer, generally at the time the sale closes. Current guidance requires that we defer gains if we maintain substantial continuing involvement, but we typically do not have real estate sale transactions that require us to defer significant gains.

We currently estimate that the primary effects of ASU 2014-09 and the related ASUs on us will be as follows:


•	We expect to recognize franchise application and relicensing fees over the term of the franchise contract rather than at hotel opening or relicensing.


•	We expect to present the amortization of contract acquisition costs we pay to owners, franchisees, and other customers as a reduction of revenue rather than including such costs in “Depreciation, amortization, and other” on our Income Statements.


•	We expect to capitalize fewer contract acquisition costs, as some of those costs will not meet the capitalization criteria once we adopt ASU 2014-09.


•	We expect to recognize the revenue for certain pre-opening services performed for hotels and some related direct costs over the term of the management or franchise contract rather than during the pre-opening period.

•

We expect to recognize incentive management fees throughout the year to the extent that we determine that it is probable that a significant reversal will not occur due to expected future hotel performance or cash flows. This will result in a different pattern of recognition for incentive management fees from quarter to quarter than under the current guidance, but we do not expect a material impact on the total incentive management fees we will recognize during a full fiscal year.

•

Under the new guidance, we will generally be considered an agent in the transaction when Loyalty Program awards are redeemed. As a result, we will only recognize revenue for the net amount of consideration to which we are entitled for arranging for the redemption award, rather than the gross amount. Under current guidance, we reflect the gross consideration received within the caption “Cost reimbursements” revenue and redemption expenses in the caption “Reimbursed costs.” We expect this change will reduce our “Cost reimbursements” revenue and “Reimbursed costs,” with no impact on our operating or net income. We are still determining other potential impacts to the presentation of our Loyalty Programs in our Income Statements and/or Balance Sheets.

•

We receive fees from our co-brand credit card agreements, a portion of which relates to branding fees that we record in “Franchise fees” in our Income Statements. The remainder of such fees relates to our Loyalty Programs and is recorded in “Cost reimbursements” revenue. We are finalizing the determination of standalone selling price for the identified performance obligations. We expect that the recognition of our co-brand credit card branding fees will remain largely unchanged, but we are still assessing the impact on our “Cost reimbursements” revenue related to the co-brand credit card agreements associated with our Loyalty Programs. The cumulative effect of recognizing the point redemption performance obligation associated with the Loyalty Programs and co-brand credit card agreements may result in an increase to the “Liability for guest loyalty programs.”

•

We expect to recognize temporary timing differences between costs we incur for centralized programs and services and the related reimbursement we receive from hotel owners and franchisees in our operating and net income so that “Cost reimbursements” in any one fiscal period may be higher or lower than “Reimbursed costs.” We operate these programs with the objective of breaking even, and under current guidance, we record any temporary timing differences on our Balance Sheets. We are still assessing the impact that this change will have on our operating and net income, but expect that over time the changes will have no net impact to our retained earnings.

ASU 2016-02 “Leases” (Topic 842). ASU 2016-02 introduces a lessee model that brings substantially all leases onto the balance sheet. Under the new standard, a lessee will recognize on its balance sheet a lease liability and a right-of-use asset for most leases, including operating leases. The new standard will also distinguish leases as either finance leases or operating leases. This distinction will affect how leases are measured and presented in the income statement and statement of cash flows. The standard is effective for us beginning in our 2019 first quarter, and we will be required to use a modified retrospective transition approach, which means that we will apply the provisions of ASU 2016-02 to each lease that existed at the beginning of the earliest comparative period presented in the financial statements, as well as leases entered into after that date. We are still assessing the potential impact that ASU 2016-02 will have on our financial statements and disclosures, but we expect that it will have a material effect on our Balance Sheets.

ASU 2016-16 “Accounting for Income Taxes: Intra-Entity Transfers of Assets Other than Inventory” (Topic 740). ASU 2016-16 requires companies to recognize the income tax effects of intercompany sales of assets other than inventory when the transfer occurs. Under current GAAP, the tax effects of intercompany sales are deferred until the transferred asset is sold to a third party or otherwise recovered through use. ASU 2016-16 will be effective for us in our 2018 first quarter, and we will be required to use a modified retrospective transition approach with a cumulative-effect adjustment to retained earnings as of the beginning of 2018. We are still assessing the potential impact that the standard will have on our financial statements and disclosures, but we estimate that we will record a cumulative-effect adjustment of approximately $289 million related to the intercompany sale of intangible assets.

New Accounting Standards Adopted

ASU 2016-09 “Stock Compensation” (Topic 718). We adopted ASU 2016-09 in the 2017 first quarter, which involves several aspects of the accounting for share-based payments. The new guidance had the following impacts on our Financial Statements:

•

We now record excess tax benefits (or deficiencies) as income tax benefit (or expense) in our Income Statements. Previously, we recorded excess tax benefits (deficiencies) in additional paid-in-capital in our Balance Sheets. As required, we prospectively applied this amendment in our Income Statements, which resulted in a benefit of $72 million to our provision for income taxes, approximately $0.19 per diluted share, for the year ended December 31, 2017.

•

We now classify excess tax benefits (or deficiencies) along with other income taxes in operating activities in our Statements of Cash Flows. ASU 2016-09 allowed for this amendment to be applied either prospectively or retrospectively. For consistency with our application of ASU 2016-09 in our Income Statements, we applied this amendment prospectively in our Statements of Cash Flows. In 2017, cash from operating activities included $72 million from excess tax benefits. We classified excess tax benefits of $32 million for 2016 and $34 million for 2015 as financing inflows.


•	We now classify cash paid to taxing authorities when we withhold shares for employee tax-withholding purposes as a financing activity. As required, we retrospectively applied this amendment in our Statements of Cash Flows, and accordingly we reclassified cash outflows from operating activities to financing activities of $100 million for 2016 and $85 million for 2015.

ASU 2017-01 “Clarifying the Definition of a Business” (Topic 805). We prospectively adopted ASU 2017-01 in the 2017 first quarter, which clarifies the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. We expect that under this new guidance, our sales of hotel properties will generally qualify as asset disposals, with the result that no goodwill of the reporting unit will be assigned to the carrying value of the asset when calculating the gain or loss on sale.

ACQUISITIONS AND DISPOSITIONS

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

ACQUISITIONS AND DISPOSITIONS

Acquisitions

2016 Starwood Combination

The following table presents the fair value of each type of consideration that we transferred in the Starwood Combination:



(in millions, except per share amounts)
Equivalent shares of Marriott common stock issued in exchange for Starwood outstanding shares	134.4
Marriott common stock price as of Merger Date	$	68.44
Fair value of Marriott common stock issued in exchange for Starwood outstanding shares	9,198
Cash consideration to Starwood shareholders, net of cash acquired of $1,116	2,412
Fair value of Marriott equity-based awards issued in exchange for vested Starwood equity-based awards	71
Total consideration transferred, net of cash acquired	$	11,681

Fair Values of Assets Acquired and Liabilities Assumed. The following table presents our fair value estimates of the assets that we acquired and the liabilities that we assumed on the Merger Date:



($ in millions)	September 23, 2016 (as finalized)
Working capital	$	(236	)
Property and equipment, including assets held for sale	1,706
Identified intangible assets	7,238
Equity and cost method investments	537
Other noncurrent assets	200
Deferred income taxes, net	(1,464		)
Guest loyalty program	(1,638		)
Debt	(1,877		)
Other noncurrent liabilities	(977		)
Net assets acquired	3,489
Goodwill ⁽¹⁾	8,192
	$	11,681


⁽¹⁾	Goodwill primarily represents the value that we expect to obtain from synergies and growth opportunities from our combined operations, and it is not deductible for tax purposes. See Footnote 13 “Intangible Assets and Goodwill” for changes in our assignment of goodwill by reportable segment.

We estimated the value of the acquired property and equipment using a combination of the income, cost, and market approaches, which are primarily based on significant Level 2 and Level 3 assumptions, such as estimates of future income growth, capitalization rates, discount rates, and capital expenditure needs of the hotel properties. Our equity method investments consist primarily of partnership and joint venture interests in entities that own hotel real estate. We estimated the value of the underlying real estate using the same methods as for property and equipment described above. We primarily valued debt using quoted market prices, which are considered Level 1 inputs as they are observable in the market.

The following table presents our estimates of the fair values of Starwood’s identified intangible assets and their related estimated useful lives.



	Estimated Fair Value (in millions)		Estimated Useful Life (in years)
Brands	$	5,664	indefinite
Management Agreements and Lease Contract Intangibles	751		10 - 25
Franchise Agreements	746		10 - 80
Loyalty Program Marketing Rights	77		30
	$	7,238

We estimated the value of Starwood’s brands using the relief-from-royalty method, which applies an estimated royalty rate to forecasted future cash flows, discounted to present value. We estimated the value of management and franchise agreements using the multi-period excess earnings method, which is a variation of the income approach. This method estimates an intangible asset’s value based on the present value of the incremental after-tax cash flows attributable to the intangible asset. We valued the lease contract intangibles using an income approach. These valuation approaches utilize Level 3 inputs.

Pro Forma Results of Operations. We prepared unaudited pro forma information in accordance with applicable accounting standards, assuming we completed the Starwood Combination on January 1, 2015, and using our estimates of the fair values of assets and liabilities as of the Merger Date. Pro forma revenues totaled $22,492 million in 2016, and $21,937 million in 2015. Pro forma net income totaled $1,180 million in 2016, and reflected $113 million of integration costs. Pro forma net income totaled $967 million in 2015, and reflected $397 million of transaction and employee termination costs. These unaudited pro forma results do not reflect any synergies from operating efficiencies, and they are not necessarily indicative of what the actual results of operations of the combined company would have been if the Starwood Combination had occurred on January 1, 2015, nor are they indicative of future results of operations.

Dispositions

In the 2017 fourth quarter, Aramark purchased Avendra LLC, and we received a non-recurring pre-tax gain of $659 million for our 55 percent ownership interest in Avendra, which we reflected in the “Gains and other income, net” caption of our Income Statements. We committed to the owners of the hotels in our system that the benefits derived from Avendra, including any dividends or sale proceeds above our original investment, would be used for the benefit of the hotels in our system. Accordingly, we intend to utilize the net proceeds for the benefit of our system of hotels and are currently developing those plans. Spending under those plans will be expensed in our Income Statements and reduce our profitability in future periods. In conjunction with the sale of Avendra to Aramark, we entered into a new five-year procurement services agreement with Avendra for the benefit of our managed and owned properties in North America.

Since the Merger Date, we have sold the following properties we acquired in the Starwood Combination:


•	In the 2018 first quarter, we sold The Sheraton Buenos Aires Hotel & Convention Center and Park Tower, A Luxury Collection Hotel, Buenos Aires, both Caribbean and Latin America properties, and received $105 million in cash.


•	In the 2017 fourth quarter, we sold the Sheraton Centre Toronto Hotel, a North American Full-Service property that was owned on a long-term ground lease, and received C$335 million ($268 million) in cash.


•	In the 2017 first quarter, we sold the Westin Maui, a North American Full-Service property that was owned on a long-term ground lease, and received $306 million in cash.


•	In the 2016 fourth quarter, we sold The St. Regis San Francisco, a North American Full-Service property, and received $165 million in cash.

Additionally, in the 2017 second quarter, we sold the Charlotte Marriott City Center, a North American Full-Service property, and received $169 million in cash. We recognized a $24 million gain in the “Gains and other income, net” caption of our Income Statements. In the 2016 second quarter, we sold a North American Limited-Service segment plot of land and received $46 million in cash.

Planned Dispositions

At year-end 2017, we held $149 million of assets classified as “Assets held for sale” on our Balance Sheets related to the two Buenos Aires properties we sold in the 2018 first quarter, two Asia Pacific properties, and the remaining Miami Beach EDITION residences.

MERGER-RELATED COSTS AND CHARGES

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

MERGER-RELATED COSTS AND CHARGES

The following table presents pre-tax merger-related costs and other charges that we incurred in connection with the Starwood Combination.



($ in millions)	2017		2016		2015
Merger-related costs and charges
Transaction costs	$	17	$	53	$	—
Employee termination costs	11		241		—
Integration costs	131		92		—
	159		386		—
Interest expense	—		22		—
	$	159	$	408	$	—

Transaction costs represent costs related to the planning and execution of the Starwood Combination, primarily for financial advisory, legal, and other professional service fees. Employee termination costs represent charges and adjustments for employee severance, retention, and other termination related benefits. Integration costs primarily represent integration employee salaries and share-based compensation, change management consultants, and technology-related costs. Merger-related interest expense in 2016 reflects costs that we incurred for a bridge term loan facility commitment and incremental interest expense for debt incurred related to the Starwood Combination.

In connection with the Starwood Combination, we initiated a restructuring program to achieve cost synergies from our combined operations. We did not allocate costs associated with our restructuring program to any of our business segments. The following table presents our restructuring reserve activity during 2017:



($ in millions)	Liability for employee termination costs
Balance at year-end 2016	$	192
Charges	8
Cash payments	(120		)
Adjustments ⁽¹⁾	(13		)
Balance at year-end 2017, classified in “Accrued expenses and other”	$	67


⁽¹⁾	Adjustments primarily reflect the reversal of charges for certain employees who accepted other positions at the Company or resigned and the impact of cumulative translation adjustments.

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE-BASED COMPENSATION

We award: (1) restricted stock units (“RSUs”) of our common stock; (2) stock appreciation rights (“SARs”) for our common stock; (3) stock options to purchase our common stock; and (4) deferred stock units. We also issue performance-based RSUs (“PSUs”) to named executive officers and some of their direct reports.

We recorded share-based compensation expense of $181 million in 2017, $212 million in 2016, and $113 million in 2015. Deferred compensation costs for unvested awards totaled $168 million at year-end 2017 and $192 million at year-end 2016. As of year-end 2017, we expect to recognize deferred compensation expense over a weighted average period of two years.

RSUs and PSUs

We granted RSUs in 2017 to certain officers, key employees, and non-employee directors, and those units vest generally over four years in equal annual installments commencing one year after the grant date. Upon vesting, RSUs convert to shares of our common stock which we distribute from treasury shares. We granted PSUs in 2017 to certain executive officers, subject to continued employment and the satisfaction of certain performance conditions based on achievement of pre-established targets for Adjusted EBITDA, RevPAR Index, room openings, and/or net administrative expense over, or at the end of, a three-year performance period.

We had deferred compensation costs for RSUs of approximately $164 million at year-end 2017 and $188 million at year-end 2016. The weighted average remaining term for RSUs outstanding at year-end 2017 was two years.

The following table provides additional information on RSUs for the last three fiscal years:



	2017		2016		2015
Share-based compensation expense (in millions)	$	172	$	204	$	103
Weighted average grant-date fair value (per RSU)	$	85	$	66	$	78
Aggregate intrinsic value of distributed RSUs (in millions)	$	322	$	190	$	195

The following table presents the changes in our outstanding RSUs during 2017 and the associated weighted average grant-date fair values:



	Number of RSUs (in millions)		Weighted Average Grant-Date Fair Value (per RSU)
Outstanding at year-end 2016	7.4		$	61
Granted ⁽¹⁾	1.9		85
Distributed	(3.5	)	59
Forfeited	(0.2	)	72
Outstanding at year-end 2017	5.6		$	71


⁽¹⁾	Includes 0.2 million PSUs.

SARs

We may grant SARs to officers and key employees (“Employee SARs”) and to directors (“Director SARs”). Employee SARs expire ten years after the grant date and both vest and may be exercised in four equal annual installments commencing one year following the grant date. Director SARs generally expire ten years after the date of grant and vest upon grant; however, they are generally not exercisable until one year after grant. On exercise of SARs, holders receive the number of shares of our common stock equal to the number of SARs that are being exercised multiplied by the quotient of (a) the stock price on the date of exercise minus the exercise price, divided by (b) the stock price on the date of exercise.

We recognized compensation expense for Employee SARs and Director SARs of $9 million in 2017, $8 million in 2016, and $7 million in 2015. We had deferred compensation costs related to SARs of approximately $4 million in 2017 and $4 million in 2016.

The following table presents the changes in our outstanding SARs during 2017 and the associated weighted average exercise prices:



	Number of SARs (in millions)		Weighted Average Exercise Price
Outstanding at year-end 2016	4.6		$	40
Granted	0.3		88
Exercised	(1.2	)	33
Outstanding at year-end 2017	3.7		$	47

The following tables show the number of Employee SARs and Director SARs we granted in the last three fiscal years, the associated weighted average exercise prices, and the associated weighted average grant-date fair values:



	2017		2016		2015
Employee SARs
Employee SARs granted (in millions)	0.3		0.4		0.3
Weighted average exercise price (per SAR)	$	88	$	67	$	83
Weighted average grant-date fair value (per SAR)	$	30	$	22	$	26
Director SARs
Director SARs granted	—		3,507		2,773
Weighted average exercise price (per SAR)	$	—	$	69	$	80
Weighted average grant-date fair value (per SAR)	$	—	$	23	$	29

Outstanding SARs had total intrinsic values of $329 million at year-end 2017 and $196 million at year-end 2016. Exercisable SARs had total intrinsic values of $289 million at year-end 2017 and $179 million at year-end 2016. SARs exercised during 2017 had total intrinsic values of $80 million, and SARs exercised in 2016 had total intrinsic values of $58 million.

We used the following assumptions to determine the fair value of the SARs we granted to employees and non-employee directors in 2017, 2016, and 2015:



	2017		2016		2015
Expected volatility	30.9	%	30.4	%	29.9	%
Dividend yield	1.3	%	1.3	%	1.0	%
Risk-free rate	2.4	%	1.7 - 2.4%		1.9 - 2.3%
Expected term (in years)	8		8 - 10		6 - 10

In making these assumptions, we base expected volatility on the historical movement of the Company’s stock price. We base risk-free rates on the corresponding U.S. Treasury spot rates for the expected duration at the date of grant, which we convert to a continuously compounded rate. The dividend yield assumption takes into consideration both historical levels and expectations of future dividend payout. The weighted average expected terms for SARs are an output of our valuation model which utilizes historical data in estimating the time period that the SARs are expected to remain unexercised. We calculate the expected terms for SARs for separate groups of retirement eligible and non-retirement eligible employees and non-employee directors. Our valuation model also uses historical data to estimate exercise behaviors, which include determining the likelihood that employees will exercise their SARs before expiration at a certain multiple of stock price to exercise price.

Other Information

At year-end 2017, we had 32 million remaining shares authorized under the Stock Plan and Starwood LTIP.

INCOME TAXES

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of our earnings before income taxes for the last three fiscal years consisted of:



($ in millions)	2017		2016		2015
U.S.	$	1,983	$	813	$	896
Non-U.S.	853		371		359
	$	2,836	$	1,184	$	1,255

Our provision for income taxes for the last three fiscal years consists of:



($ in millions)		2017			2016			2015
Current	-U.S. Federal	$	(1,253	)	$	(203	)	$	(167	)
	-U.S. State	(152		)	(41		)	(40		)
	-Non-U.S.	(178		)	(56		)	(50		)
		(1,583		)	(300		)	(257		)

Deferred	-U.S. Federal	107			(61		)	(131		)
	-U.S. State	(26		)	(14		)	(7		)
	-Non-U.S.	38			(29		)	(1		)
		119			(104		)	(139		)
		$	(1,464	)	$	(404	)	$	(396	)

In 2017, our tax provision included an excess tax benefit of $72 million related to the vesting or exercise of share-based awards. Our tax provision did not reflect excess tax benefits of $32 million in 2016 and $34 million in 2015, as these periods were before our adoption of ASU 2016-09. In our Statements of Cash Flows, we presented excess tax benefits as financing cash flows before our adoption of ASU 2016-09.

Unrecognized Tax Benefits

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2015 to the end of 2017:



($ in millions)	Amount
Unrecognized tax benefit at beginning of 2015	$	10
Change attributable to tax positions taken during the current period	15
Decrease attributable to settlements with taxing authorities	—
Decrease attributable to lapse of statute of limitations	(1		)
Unrecognized tax benefit at year-end 2015	24
Additions from Starwood Combination	387
Change attributable to tax positions taken in prior years	(3		)
Change attributable to tax positions taken during the current period	16
Decrease attributable to settlements with taxing authorities	(2		)
Decrease attributable to lapse of statute of limitations	(1		)
Unrecognized tax benefit at year-end 2016	421
Change attributable to tax positions taken in prior years	12
Change attributable to tax positions taken during the current period	87
Decrease attributable to settlements with taxing authorities	(28		)
Decrease attributable to lapse of statute of limitations	(1		)
Unrecognized tax benefit at year-end 2017	$	491

These unrecognized tax benefits reflect the following year-over-year changes: (1) a $70 million increase in 2017, largely attributable to a federal tax issue related to the 2017 Tax Act; (2) a $397 million increase in 2016, largely attributable to Legacy-Starwood unrecognized tax benefits assumed in the Starwood Combination; and (3) a $14 million increase in 2015, largely attributable to a U.S. federal tax issue regarding transfer pricing.

Our unrecognized tax benefit balances included $385 million at year-end 2017, $288 million at year-end 2016, and $15 million at year-end 2015 of tax positions that, if recognized, would impact our effective tax rate. It is reasonably possible that we will settle $83 million of unrecognized tax benefits within the next twelve months. This includes $59 million of U.S. federal issues that are currently in appeals, $20 million of state and non-U.S. audits we expect to resolve in 2018, and $3 million related to issues for which statutes of limitations will expire in 2018. We recognize accrued interest and penalties for our unrecognized tax benefits as a component of tax expense. Related interest totaled $24 million in 2017, $8 million in 2016, and $3 million in 2015.

We file income tax returns, including returns for our subsidiaries, in various jurisdictions around the world. The U.S. Internal Revenue Service (“IRS”) has examined our federal income tax returns, and as of year-end 2017, we have settled all issues for tax years through 2013 for Marriott and through 2006 for Starwood. In the 2018 first quarter, we settled all issues for Starwood through 2009. Our Marriott 2014 and 2015 tax year audits are substantially complete, and our Marriott 2016 tax year audit is currently ongoing. Starwood is currently under audit by the IRS for years 2010 through 2012. Various foreign, state, and local income tax returns are also under examination by the applicable taxing authorities.

Deferred Income Taxes

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as from net operating loss and tax credit carry-forwards. We state those balances at the enacted tax rates we expect will be in effect when we pay or recover the taxes. Deferred income tax assets represent amounts available to reduce income taxes we will pay on taxable income in future years. We evaluate our ability to realize these future tax deductions and credits by assessing whether we expect to have sufficient future taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings, and available tax planning strategies to utilize these future deductions and credits. We establish a valuation allowance when we no longer consider it more likely than not that a deferred tax asset will be realized.

The following table presents the tax effect of each type of temporary difference and carry-forward that gave rise to significant portions of our deferred tax assets and liabilities as of year-end 2017 and year-end 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Deferred Tax Assets
Employee benefits	$	274		$	430
Net operating loss carry-forwards	375			320
Accrued expenses and other reserves	145			204
Receivables, net	29			134
Tax credits	27			79
Frequent guest program	12			42
Deferred income	14			20
Self-insurance	12			15
Other	—			32
Deferred tax assets	888			1,276
Valuation allowance	(313		)	(249		)
Deferred tax assets after valuation allowance	575			1,027
Deferred Tax Liabilities
Joint venture interests	(43		)	(8		)
Property and equipment	(47		)	(199		)
Intangibles	(963		)	(1,724		)
Other	(33		)	—
Deferred tax liabilities	(1,086		)	(1,931		)
Net deferred taxes	$	(511	)	$	(904	)

Our valuation allowance is attributable to non-U.S. and U.S. state net operating loss carry forwards. During 2017, our valuation allowance increased primarily due to current year net operating losses in Luxembourg.

At year-end 2017, we had approximately $12 million of tax credits that will expire through 2025 and $15 million of tax credits that do not expire. We recorded $6 million of net operating loss benefits in 2017 and $5 million in 2016. At year-end 2017, we had approximately $2,250 million of primarily state and foreign net operating losses, of which $1,346 million will expire through 2037.

Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate

The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years:



	2017		2016		2015
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
U.S. state income taxes, net of U.S. federal tax benefit	3.1		2.9		2.9
Non-U.S. income	(7.8	)	(6.8	)	(5.2	)
Change in valuation allowance	2.1		0.3		1.2
Change in uncertain tax positions	2.3		1.5		0.4
Change in U.S. tax rate	(5.6	)	0.0		0.0
Transition Tax on foreign earnings	23.9		0.0		0.0
Excess tax benefits related to equity awards	(2.5	)	0.0		0.0
Other, net	1.1		1.2		(2.8	)
Effective rate	51.6	%	34.1	%	31.5	%

The non-U.S. income tax benefit presented in the table above includes a tax rate incentive in Singapore, a deemed interest deduction in Switzerland, and tax-exempt income earned from certain operations in Luxembourg, which collectively represented (6.2)% in 2017, (7.4)% in 2016, and (4.8)% in 2015. We included the impact of these items in the foreign tax rate differential line above because we consider them to be equivalent to a reduction of the statutory tax rates in these jurisdictions. Pre-tax income in Switzerland, Singapore, and Luxembourg totaled $576 million in 2017, $271 million in 2016, and $182 million in 2015.

Other Information

We paid cash for income taxes, net of refunds of $636 million in 2017, $293 million in 2016, and $218 million in 2015.

Tax Cuts and Jobs Act of 2017

The 2017 Tax Act was enacted on December 22, 2017, and significantly changes how the U.S. taxes corporations. The 2017 Tax Act requires complex computations that were not previously required by U.S. tax law, significant judgments in interpretation of the provisions of the 2017 Tax Act and significant estimates in calculations, and the preparation and analysis of information not previously relevant or regularly produced. The U.S. Treasury Department, the IRS, and other standard-setting bodies could interpret or issue guidance on how provisions of the 2017 Tax Act will be applied or otherwise administered that differs from our interpretation.

Although we have not completed our accounting for the effects of the 2017 Tax Act, we have where possible made reasonable estimates of the 2017 Tax Act’s effects on our existing deferred tax balances and the one-time transition tax, as described below. In cases where we have not been able to make reasonable estimates of the impact of the 2017 Tax Act, as described below, we continue to account for those items based on our existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately before enactment of the 2017 Tax Act. In all cases, we will continue to refine our calculations as we complete additional analyses. As we complete our analysis, collect and prepare necessary data, and interpret any additional regulatory or accounting guidance, we may make adjustments to the provisional amounts we have recorded during a measurement period of up to one year from the enactment of the 2017 Tax Act that could materially impact our provision for income taxes in the periods in which we make such adjustments.

Our provisional estimate of the impact of the 2017 Tax Act resulted in an increase of $586 million to our 2017 income tax provision due to the one-time transition tax, partially offset by a benefit from the reduction of the U.S. federal corporate tax rate, as described below.

Reduction of U.S. federal corporate tax rate. The 2017 Tax Act reduced the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In 2017, we recorded a provisional estimated net tax benefit of $159 million for our year-end deferred tax assets and liabilities. While we have made a reasonable estimate of the impact of the federal corporate tax rate reduction, that estimate could change as we complete our analyses of all impacts of the 2017 Tax Act, including, but not limited to, our calculation of deemed repatriation of deferred foreign income and the state tax effect of adjustments made to federal temporary differences.

Deemed Repatriation Transition Tax. The Deemed Repatriation Transition Tax (“Transition Tax”) is a new one-time tax on previously untaxed earnings and profits (“E&P”) of certain of our foreign subsidiaries accumulated post-1986 through year-end 2017. In addition to U.S. federal income taxes, the deemed repatriation of such E&P may result in additional state income taxes in some of the U.S. states in which we operate. We recorded a provisional estimated federal and state Transition Tax expense of $745 million in 2017. This estimate could change as we finalize our calculations and inputs, including the determination of untaxed post-1986 E&P and amounts held in cash or other specified assets.

The 2017 Tax Act does not provide for additional income taxes for any remaining undistributed foreign earnings not subject to the Transition Tax, or for any additional outside basis differences inherent in foreign entities, as these amounts continue to be indefinitely reinvested in those foreign operations. Substantially all our unremitted foreign earnings that have not been previously taxed have now been subjected to U.S. taxation under the Transition Tax. We have made no additional provision for U.S. income taxes or additional non-U.S. taxes on the remaining unremitted accumulated earnings of non-U.S. subsidiaries. It is not practical at this time to determine the income tax liability related to any remaining undistributed earnings or additional basis difference not subject to the Transition Tax.

State net operating losses and valuation allowances. We must assess whether our state net operating loss valuation allowances are affected by various aspects of the 2017 Tax Act. As discussed above, we have recorded provisional amounts related to the state income taxes for certain portions of the 2017 Tax Act, but we have not completed our analysis for the states where we have net operating loss carryovers and valuation allowances. Because we have not yet completed our determination of the need for, or any change in, any valuation allowance, we have not yet recorded any change to valuation allowances as a result of the 2017 Tax Act.

The 2017 Tax Act also included a new provision designed to tax global intangible low-taxed income (“GILTI”). Under U.S. GAAP, we may make an accounting policy election to either (1) treat any taxes on GILTI inclusions as a current-period expense when incurred (the “period cost method”) or (2) factor such amounts into our measurement of our deferred taxes (the “deferred method”). We have not yet adopted either accounting policy because we have not completed our analysis of this provision.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Guarantees

We issue guarantees to certain lenders and hotel owners, chiefly to obtain long-term management contracts. The guarantees generally have a stated maximum funding amount and a term of three to ten years. The terms of guarantees to lenders generally require us to fund if cash flows from hotel operations are inadequate to cover annual debt service or to repay the loan at maturity. The terms of the guarantees to hotel owners generally require us to fund if the hotels do not attain specified levels of operating profit. Guarantee fundings to lenders and hotel owners are generally recoverable out of future hotel cash flows and/or proceeds from the sale of hotels. We also enter into project completion guarantees with certain lenders in conjunction with hotels that we or our joint venture partners are building.

We present the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for our debt service, operating profit, and other guarantees for which we are the primary obligor at year-end 2017 in the following table:



($ in millions) Guarantee Type	Maximum Potential Amount of Future Fundings		Recorded Liability for Guarantees
Debt service	$	130	$	18
Operating profit	237		110
Other	10		2
	$	377	$	130

Our liability at year-end 2017 for guarantees for which we are the primary obligor is reflected in our Balance Sheets as $3 million of “Accrued expenses and other” and $127 million of “Other noncurrent liabilities.”

Our guarantees listed in the preceding table include $6 million of debt service guarantees, $40 million of operating profit guarantees, and $2 million of other guarantees that will not be in effect until the underlying properties open and we begin to operate the properties or certain other events occur.

In conjunction with financing obtained for specific projects or properties owned by us or joint ventures in which we are a party, we may provide industry standard indemnifications to the lender for loss, liability, or damage occurring as a result of the actions of the other joint venture owner or our own actions.

Contingent Purchase Obligations

Times Square EDITION. We granted the lenders the right, upon an uncured event of default by the hotel owner under, and an acceleration of, the mortgage loan, to require us to purchase the hotel component of the property for $315 million during a period of 2 years after opening, which the lenders may extend for up to 3 years to complete foreclosure if the loan has been accelerated and certain other conditions are met. We accounted for this contingent purchase obligation as a guarantee, and our recorded liability at year-end 2017 was $2 million.

Sheraton Grand Chicago. We granted the owner a one-time right, exercisable in 2022, to require us to purchase the leasehold interest in the land and the hotel for $300 million in cash (the “put option”). If the owner exercises the put option, we have the option to purchase, at the same time the put transaction closes, the underlying fee simple interest in the land for an additional $200 million in cash. We accounted for the put option as a guarantee, and our recorded liability at year-end 2017 was $57 million.

We concluded that the entity that owns the Sheraton Grand Chicago hotel is a variable interest entity. We did not consolidate the entity because we do not have the power to direct the activities that most significantly impact the entity’s economic performance. Our maximum exposure to loss related to the entity is equal to the difference between the purchase price and the fair value of the hotel at the time that the put option is exercised, plus the maximum funding amount of an operating profit guarantee that we provided for the hotel.

Commitments

At year-end 2017, we had the following commitments outstanding, which are not recorded on our Balance Sheets:

•

We have a right and, under certain circumstances, an obligation to acquire our joint venture partner’s remaining interests in two joint ventures over the next four years at a price based on the performance of the ventures. In conjunction with this contingent obligation, we advanced $20 million (€15 million) in deposits, $13 million (€11 million) of which are remaining. The amounts on deposit are refundable to the extent that we do not acquire our joint venture partner’s remaining interests.


•	A commitment to invest $25 million of equity for a non-controlling interest in a joint venture that plans to develop a North American Full-Service hotel, which we expect to fund in 2018.


•	A commitment to invest up to $10 million of equity for a non-controlling interest in a partnership that evaluates investment opportunities in travel-related emerging technology companies, which we expect to fund in 2018.


•	Various loan commitments totaling $26 million, of which we expect to fund $15 million in 2018 and $10 million thereafter. We do not expect to fund the remaining commitment.

•

Various commitments to purchase information technology hardware, software, accounting, finance, and maintenance services in the normal course of business, primarily for programs and services for which we are reimbursed by third-party owners, totaling $366 million. We expect to purchase goods and services subject to these commitments as follows: $188 million in 2018, $125 million in 2019, $49 million in 2020, and $4 million thereafter.


•	Several commitments aggregating $49 million, which we do not expect to fund.

Letters of Credit

At year-end 2017, we had $162 million of letters of credit outstanding (all outside the Credit Facility, as defined in Footnote 11 “Long-Term Debt”), most of which were for our self-insurance programs. Surety bonds issued as of year-end 2017, totaled $155 million, most of which state governments requested in connection with our self-insurance programs.

Other Contingencies

In connection with the Starwood Combination, we continue to assess various regulatory compliance matters at several foreign Legacy-Starwood locations, including compliance with the U.S. Foreign Corrupt Practices Act. The results of this assessment may give rise to contingencies that could require us to accrue expenses. While any such amounts are not currently estimable, we continue to evaluate potential contingencies as we gather more information.

LEASES

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

LEASES

The following table presents our future minimum lease obligations for which we are the primary obligor as of year-end 2017:



($ in millions)	Operating Leases		Capital Leases
2018	$	187	$	13
2019	187		14
2020	167		14
2021	143		13
2022	154		14
Thereafter	1,454		178
Total minimum lease payments where we are the primary obligor	$	2,292	$	246
Less: Amount representing interest			75
Present value of minimum lease payments			$	171

Most leases have initial terms of up to 20 years, contain one or more renewals at our option, generally for five- or 10-year periods, and generally contain fixed and variable components. The variable components of leases of land or building facilities are primarily based on operating performance of the leased property.

The following table details the composition of rent expense for operating leases for the last three years:



($ in millions)	2017		2016		2015
Minimum rentals	$	194	$	150	$	138
Additional rentals	85		67		65
	$	279	$	217	$	203

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

12 Months Ended

Dec. 31, 2017

Self-Insurance Reserve for Losses and Loss Adjustment Expenses Disclosure [Abstract]

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

The following table summarizes the activity in our self-insurance reserve for losses and loss adjustment expenses as of year-end 2017 and 2016:



($ in millions)	2017			2016
Balance at beginning of year	$	522		$	416
Less: Reinsurance recoverable	(3		)	(3		)
Net balance at beginning of year	519			413
Assumed in the Starwood Combination	—			91
Incurred related to:
Current year	163			140
Prior years	(46		)	(20		)
Total incurred	117			120
Paid related to:
Current year	(30		)	(26		)
Prior years	(74		)	(79		)
Total paid	(104		)	(105		)
Net balance at end of year	532			519
Add: Reinsurance recoverable	3			3
Balance at end of year	$	535		$	522

Current portion classified in “Accrued expenses and other”	$	146		$	142
Noncurrent portion classified in “Other noncurrent liabilities”	389			380
	$	535		$	522

Our current year provision for incurred losses increased by $23 million, primarily due to the inclusion of Legacy-Starwood properties for the full year 2017. We decreased our provision for incurred losses for prior years by $46 million in 2017 and by $20 million in 2016 because of changes in estimates from insured events from prior years due to changes in underwriting experience and frequency and severity trends.

LONG-TERM DEBT

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

LONG-TERM DEBT

We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Senior Notes:
Series I Notes, interest rate of 6.4%, face amount of $293, matured June 15, 2017 (effective interest rate of 6.5%)	$	—		$	293
Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.4%)	598			597
Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%)	348			348
Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%)	348			347
Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%)	397			396
Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 (effective interest rate of 3.1%)	447			446
Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%)	345			344
Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 (effective interest rate of 2.5%)	744			742
Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%)	743			742
Series S Notes, interest rate of 6.8%, face amount of $324, maturing May 15, 2018 (effective interest rate of 1.7%)	330			346
Series T Notes, interest rate of 7.2%, face amount of $181, maturing December 1, 2019 (effective interest rate of 2.3%)	197			206
Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%)	291			291
Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%)	337			340
Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%)	292			293
Commercial paper	2,371			2,311
Credit Facility	—			—
Capital lease obligations	171			173
Other	279			291
	$	8,238		$	8,506
Less: Current portion of long-term debt	(398		)	(309		)
	$	7,840		$	8,197

All our long-term debt is recourse to us but unsecured. All the Senior Notes shown in the table above are our unsecured and unsubordinated obligations, which rank equally with our other Senior Notes and all other unsecured and unsubordinated indebtedness that we have issued or will issue from time to time, and are governed by the terms of an indenture, dated as of November 16, 1998, between us and The Bank of New York Mellon (formerly The Bank of New York), as trustee. We may redeem some or all of each series of the Senior Notes before maturity under the terms provided in the applicable form of Senior Note.

We are party to a multicurrency revolving credit agreement (the “Credit Facility”) that provides for up to $4,000 million of aggregate effective borrowings to support our commercial paper program and general corporate needs, including working capital, capital expenditures, share repurchases, letters of credit, and acquisitions. Borrowings under the Credit Facility generally bear interest at LIBOR (the London Interbank Offered Rate) plus a spread, based on our public debt rating. We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating. While any outstanding commercial paper borrowings and/or borrowings under our Credit Facility generally have short-term maturities, we classify the outstanding borrowings as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis. The Credit Facility expires on June 10, 2021.

The following table presents future principal payments, net of discounts, premiums, and debt issuance costs, for our debt as of year-end 2017:



Debt Principal Payments ($ in millions)	Amount
2018	$	398
2019	843
2020	365
2021	3,233
2022	1,114
Thereafter	2,285
Balance at year-end 2017	$	8,238

We paid cash for interest, net of amounts capitalized, of $234 million in 2017, $165 million in 2016, and $114 million in 2015.

PENSION AND OTHER POSTRETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

We sponsor numerous funded and unfunded domestic and international defined benefit pension plans. All defined benefit plans covering U.S. employees are frozen, meaning that employees do not accrue additional benefits. Certain plans covering non-U.S. employees remain active. We also sponsor the Starwood Retiree Welfare Program, which provides health care and life insurance benefits for certain eligible retired employees.

Effective December 7, 2015, the trustees of certain of our international pension plans located in the U.K. entered into a “Buy-In” agreement with Legal & General Assurance Society Limited (“LGAS”) to transfer the benefit obligations under these plans to LGAS. We expect that certain of these plans will move from a “Buy-in” to a “Buy-out” status during 2018, at which point we will complete the transfer of the benefit obligations to LGAS.

The following tables show changes in plan assets and accumulated benefit obligations and the funded status of our defined benefit pension and other postretirement benefit plans at year-end 2017 and 2016:



	Domestic Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
($ in millions)	2017			2016			2017			2016			2017			2016
Plan Assets
Beginning fair value of plan assets ⁽¹⁾	$	—		$	—		$	262		$	278		$	—		$	—
Actual return on plan assets, net of expenses	—			—			29			(10		)	—			—
Employer contribution	2			1			2			2			1			—
Effect of foreign exchange rates	—			—			10			(6		)	—			—
Benefits paid	(2		)	(1		)	(9		)	(2		)	(1		)	—
Ending fair value of plan assets	$	—		$	—		$	294		$	262		$	—		$	—
Accumulated Benefit Obligations
Beginning benefit obligations⁽¹⁾	$	21		$	23		$	229		$	251		$	15		$	16
Interest cost	1			—			8			2			—			—
Actuarial loss (gain)	1			(1		)	10			(17		)	—			(1		)
Effect of foreign exchange rates	—			—			8			(5		)	—			—
Benefits paid	(2		)	(1		)	(9		)	(2		)	(1		)	—
Ending accumulated benefit obligations	$	21		$	21		$	246		$	229		$	14		$	15
Funded Status
Overfunded (underfunded) at year-end	$	(21	)	$	(21	)	$	48		$	33		$	(14	)	$	(15	)


⁽¹⁾	Beginning balances in 2016 represent assets acquired and liabilities assumed on the Merger Date.

The following table shows the classification of overfunded and (underfunded) amounts in our Balance Sheets at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Other noncurrent assets	$	56		$	40
Accrued expenses and other	(3		)	(3		)
Other noncurrent liabilities	(40		)	(40		)
	$	13		$	(3	)

The following table shows the benefit obligations for pension plans with accumulated benefit obligations that exceed the fair value of plan assets:



	Domestic Pension Benefits				Foreign Pension Benefits
($ in millions)	2017		2016		2017		2016
Projected benefit obligation	$	21	$	21	$	8	$	7
Accumulated benefit obligation	21		21		7		7
Fair value of plan assets	—		—		—		—

The weighted average assumptions used to determine benefit obligations at year-end 2017 and 2016 were as follows:



	Domestic Pension Benefits				Foreign Pension Benefits				Other Postretirement Benefits
	2017		2016		2017		2016		2017		2016
Discount rate	3.50	%	3.75	%	3.30	%	3.54	%	3.50	%	3.74	%
Rate of compensation increase ⁽¹⁾	n/a		n/a		3.02	%	3.02	%	n/a		n/a


⁽¹⁾	Rate of compensation increase is not applicable to domestic pension benefits as all domestic plans are frozen and do not accrue additional benefits, or to other postretirement benefits as it is not an input in the benefit obligation determination.

Our investment objectives for plan assets are to minimize asset value volatility and to ensure the assets are sufficient to pay plan benefits. The target asset allocation is 31% debt securities, 31% equity securities, and 38% other. We consider several factors in assessing the expected return on plan assets, including current and expected allocation of plan assets, investment strategy, historical rates of return and our expectations, as well as investment expert expectations, for investment performance over approximately a ten-year period.

The following tables present our fair value hierarchy of plan assets at year-end 2017 and 2016:



	At Year-End 2017								At Year-End 2016
($ in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Mutual funds	$	86	$	—	$	—	$	86	$	79	$	—	$	—	$	79
Collective trusts	—		1		101		102		—		1		93		94
Equity index trusts	94		—		—		94		77		—		—		77
Money markets	1		9		—		10		1		9		—		10
Bond index funds	—		2		—		2		—		2		—		2
	$	181	$	12	$	101	$	294	$	157	$	12	$	93	$	262

The collective trust assets include investments in insurance contracts, which we valued using significant unobservable inputs, including plan specific data and bond interest rates. We value all other assets using quoted market prices in active markets or other observable inputs.

The following table shows our expected future pension and other postretirement benefit plan payments for the next ten years:



($ in millions)	Domestic Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits		Total
2018	$	2	$	17	$	1	$	20
2019	2		10		1		13
2020	2		10		1		13
2021	2		11		1		14
2022	2		11		1		14
2023-2027	7		59		5		71

INTANGIBLE ASSETS AND GOODWILL

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

The following table details the composition of our intangible assets at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Definite-lived Intangible Assets
Contract acquisition costs and other	$	3,530		$	3,276
Accumulated amortization	(579		)	(447		)
	2,951			2,829
Indefinite-lived Intangible Brand Assets	5,854			6,441
	$	8,805		$	9,270

We capitalize both direct and incremental costs that we incur to acquire management, franchise, and license agreements. We amortize these costs on a straight-line basis over the initial term of the agreements, ranging from 15 to 30 years. Our amortization expense totaled $185 million in 2017, $87 million in 2016, and $65 million in 2015. We estimate that our aggregate amortization expense will be $180 million for each of the next five fiscal years.

The following table details the carrying amount of our goodwill at year-end 2017 and 2016:



($ in millions)	North American Full-Service		North American Limited-Service			Asia Pacific		Other International		Total Goodwill
Year-end 2016 balance:
Goodwill	$	2,905	$	1,558		$	1,572	$	1,617	$	7,652
Accumulated impairment losses	—		(54		)	—		—		(54		)
	2,905		1,504			1,572		1,617		7,598

Adjustments ⁽¹⁾	$	664	$	255		$	276	$	223	$	1,418
Foreign currency translation	16		10			80		85		191

Year-end 2017 balance:
Goodwill	$	3,585	$	1,823		$	1,928	$	1,925	$	9,261
Accumulated impairment losses	—		(54		)	—		—		(54		)
	$	3,585	$	1,769		$	1,928	$	1,925	$	9,207


⁽¹⁾	The table reflects adjustments to our goodwill from the Starwood Combination during the measurement period.

Property, Plant and Equipment [Abstract]

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

PROPERTY AND EQUIPMENT

The following table presents the composition of our property and equipment balances at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Land	$	601		$	654
Buildings and leasehold improvements	1,052			1,352
Furniture and equipment	1,121			1,159
Construction in progress	116			155
	2,890			3,320
Accumulated depreciation	(1,097		)	(985		)
	$	1,793		$	2,335

We record property and equipment at cost, including interest and real estate taxes we incur during development and construction. We capitalize the cost of improvements that extend the useful life of property and equipment when we incur them. These capitalized costs may include structural costs, equipment, fixtures, floor, and wall coverings. We expense all repair and maintenance costs when we incur them. We compute depreciation using the straight-line method over the estimated useful lives of the assets (generally three to 40 years), and we amortize leasehold improvements over the shorter of the asset life or lease term. Our gross depreciation expense totaled $231 million in 2017, $157 million in 2016, and $132 million in 2015 (of which $125 million in 2017, $76 million in 2016, and $58 million in 2015 was included in reimbursed costs). Fixed assets attributed to operations located outside the U.S. were $705 million in 2017 and $1,000 million in 2016.

NOTES RECEIVABLE

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

NOTES RECEIVABLE

The following table presents the composition of our notes receivable balances, net of reserves and unamortized discounts, at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Senior, mezzanine, and other loans	$	149		$	248
Less: Current portion	(7		)	(3		)
	$	142		$	245

We did not have any past due notes receivable amounts at the end of either 2017 or 2016. The unamortized discounts for our notes receivable were $19 million at year-end 2017 and $22 million at year-end 2016.

The following table presents the expected future principal payments, net of reserves and unamortized discounts, as well as interest rates for our notes receivable as of year-end 2017:



Notes Receivable Principal Payments ($ in millions)	Amount
2018	$	7
2019	35
2020	14
2021	23
2022	5
Thereafter	65
Balance at year-end 2017	$	149
Weighted average interest rate at year-end 2017	5.4%
Range of stated interest rates at year-end 2017	0 - 18%

At year-end 2017, our recorded investment in impaired senior, mezzanine, and other loans was $95 million, and we had a $72 million allowance for credit losses, leaving $23 million of exposure to our investment in impaired loans. At year-end 2016, our recorded investment in impaired senior, mezzanine, and other loans was $74 million, and we had a $57 million allowance for credit losses, leaving $17 million of exposure to our investment in impaired loans. Our average investment in impaired senior, mezzanine, and other loans totaled $84 million during 2017, $73 million during 2016, and $67 million during 2015.

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. We present the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table:



	At Year-End 2017						At Year-End 2016
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Senior, mezzanine, and other loans	$	142		$	130		$	245		$	231
Total noncurrent financial assets	$	142		$	130		$	245		$	231

Senior Notes	$	(5,087	)	$	(5,126	)	$	(5,438	)	$	(5,394	)
Commercial paper	(2,371		)	(2,371		)	(2,311		)	(2,311		)
Other long-term debt	(217		)	(221		)	(280		)	(284		)
Other noncurrent liabilities	(178		)	(178		)	(59		)	(59		)
Total noncurrent financial liabilities	$	(7,853	)	$	(7,896	)	$	(8,088	)	$	(8,048	)

We estimate the fair value of our senior, mezzanine, and other loans by discounting cash flows using risk-adjusted rates, both of which are Level 3 inputs.

We estimate the fair value of our other long-term debt, including the current portion and excluding leases, using expected future payments discounted at risk-adjusted rates, which are Level 3 inputs. We determine the fair value of our Senior Notes using quoted market prices, which are directly observable Level 1 inputs. As noted in Footnote 11 “Long-Term Debt,” even though our commercial paper borrowings generally have short-term maturities of 30 days or less, we classify outstanding commercial paper borrowings as long-term based on our ability and intent to refinance them on a long-term basis. As we are a frequent issuer of commercial paper, we use pricing from recent transactions as Level 2 inputs in estimating fair value. At year-end 2017 and year-end 2016, we determined that the carrying value of our commercial paper approximated fair value due to the short maturity. Our other noncurrent liabilities largely consist of guarantees. As we note in the “Guarantees” caption of Footnote 2 “Summary of Significant Accounting Policies,” we measure our liability for guarantees at fair value on a nonrecurring basis, which is when we issue or modify a guarantee using Level 3 internally developed inputs. At year-end 2017 and year-end 2016, we determined that the carrying values of our guarantee liabilities approximated their fair values based on Level 3 inputs.

See the “Fair Value Measurements” caption of Footnote 2 “Summary of Significant Accounting Policies” for more information on the input levels we use in determining fair value.

ACCUMULATED OTHER COMPREHENSIVE LOSS

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

ACCUMULATED OTHER COMPREHENSIVE LOSS

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

The following table details the accumulated other comprehensive income (loss) activity for 2017, 2016, and 2015:



($ in millions)	Foreign Currency Translation Adjustments			Derivative Instrument Adjustments			Available-For-Sale Securities Unrealized Adjustments			Pension and Postretirement Adjustments		Accumulated Other Comprehensive Loss
Balance at year-end 2014	$	(72	)	$	(9	)	$	11		$	—	$	(70	)
Other comprehensive (loss) income before reclassifications ⁽¹⁾	(123		)	10			(7		)	—		(120		)
Amounts reclassified from accumulated other comprehensive loss	3			(9		)	—			—		(6		)
Net other comprehensive (loss) income	(120		)	1			(7		)	—		(126		)
Balance at year-end 2015	$	(192	)	$	(8	)	$	4		$	—	$	(196	)
Other comprehensive (loss) income before reclassifications ⁽¹⁾	(311		)	1			2			5		(303		)
Amounts reclassified from accumulated other comprehensive loss	—			2			—			—		2
Net other comprehensive (loss) income	(311		)	3			2			5		(301		)
Balance at year-end 2016	$	(503	)	$	(5	)	$	6		$	5	$	(497	)
Other comprehensive income (loss) before reclassifications ⁽¹⁾	478			(14		)	(2		)	7		469
Amounts reclassified from accumulated other comprehensive loss	2			9			—			—		11
Net other comprehensive income (loss)	480			(5		)	(2		)	7		480
Balance at year-end 2017	$	(23	)	$	(10	)	$	4		$	12	$	(17	)


⁽¹⁾	Other comprehensive income (loss) before reclassifications for foreign currency translation adjustments includes (losses) gains on intra-entity foreign currency transactions that are of a long-term investment nature of $(147) million for 2017, $69 million for 2016, and $48 million for 2015.

BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

BUSINESS SEGMENTS

We are a diversified global lodging company with operations in the following reportable business segments:


•	North American Full-Service, which includes our Luxury and Premium brands located in the U.S. and Canada;


•	North American Limited-Service, which includes our Select brands located in the U.S. and Canada; and


•	Asia Pacific, which includes all brand tiers in our Asia Pacific region.

The following operating segments do not meet the applicable accounting criteria for separate disclosure as reportable business segments: Caribbean and Latin America, Europe, and Middle East and Africa. We present these operating segments together as “Other International” in the tables below.

We evaluate the performance of our operating segments using “segment profits” which is based largely on the results of the segment without allocating corporate expenses, income taxes, or indirect general, administrative, and other expenses. We assign gains and losses, equity in earnings or losses from our joint ventures, and direct general, administrative, and other expenses to each of our segments. “Unallocated corporate” represents a portion of our revenues, including license fees we receive from our credit card programs and fees from vacation ownership licensing agreements, general, administrative, and other expenses, equity in earnings or losses, and other gains or losses that we do not allocate to our segments. In 2016, “Unallocated corporate” also included the impact of Legacy-Starwood operations for the eight days ended September 30, 2016, as we did not allocate Legacy-Starwood’s results to our segments for the period between the Merger Date and the end of the 2016 third quarter.

Our President and Chief Executive Officer, who is our “chief operating decision maker” (“CODM”), monitors assets for the consolidated company, but does not use assets by operating segment when assessing performance or making operating segment resource allocations.

Segment Revenues



($ in millions)	2017		2016		2015
North American Full-Service	$	14,300	$	10,376	$	8,825
North American Limited-Service	4,002		3,561		3,193
Asia Pacific	1,344		761		516
Other International	2,658		1,875		1,684
Unallocated corporate	590		499		268
Total consolidated revenues	$	22,894	$	17,072	$	14,486

Revenues attributed to operations located outside the U.S. were $4,840 million in 2017, $3,181 million in 2016, and $2,761 million in 2015.

Segment Profits



($ in millions)	2017			2016			2015
North American Full-Service	$	1,182		$	777		$	561
North American Limited-Service	816			698			651
Asia Pacific	345			176			98
Other International	386			231			194
Unallocated corporate	357			(499		)	(111		)
Interest expense, net of interest income	(250		)	(199		)	(138		)
Income taxes	(1,464		)	(404		)	(396		)
Net income	$	1,372		$	780		$	859

Segment profits attributed to operations located outside the U.S. were $852 million in 2017, $462 million in 2016, and $329 million in 2015. The 2017 segment profits consisted of segment profits of $345 million from Asia Pacific, $212 million from Europe, $111 million from the Caribbean and Latin America, $63 million from the Middle East and Africa, and $121 million from other locations.

Depreciation and Amortization



($ in millions)	2017		2016		2015
North American Full-Service	$	111	$	67	$	55
North American Limited-Service	26		23		21
Asia Pacific	36		12		5
Other International	87		45		35
Unallocated corporate	30		21		23
	$	290	$	168	$	139

Capital Expenditures



($ in millions)	2017		2016		2015
North American Full-Service	$	21	$	35	$	120
North American Limited-Service	10		7		7
Asia Pacific	12		1		11
Other International	42		38		75
Unallocated corporate	155		118		92
	$	240	$	199	$	305

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2017

RELATED PARTY TRANSACTIONS

Equity Method Investments

We have equity method investments in entities that own properties for which we provide management services and receive fees. We also have equity method investments in entities that provide management and/or franchise services to hotels and receive fees. In addition, in some cases we provide loans, preferred equity, or guarantees to these entities.

The following tables present financial data resulting from transactions with these related parties:

Income Statement Data



($ in millions)	2017			2016			2015
Base management fees	$	28		$	18		$	15
Incentive management fees	15			10			3
Owned, leased, and other revenue	2			—			1
Cost reimbursements	360			193			197
Total revenue	$	405		$	221		$	216

Reimbursed costs	$	(360	)	$	(193	)	$	(197	)
Depreciation, amortization, and other	(5		)	(2		)	(2		)
General, administrative, and other	(1		)	—			(1		)
Gains and other income, net	658			1			—
Interest income	4			5			5
Equity in earnings	39			10			16

Balance Sheet Data



($ in millions)	At Year-End 2017			At Year-End 2016
Current assets
Accounts and notes receivable, net	$	42		$	27
Prepaid expenses and other	1			1
Intangible assets
Contract acquisition costs and other	48			23
Equity method investments	734			723
Deferred tax assets	—			6
Other noncurrent assets	17			17
Current liabilities
Accounts payable	(11		)	(4		)
Accrued expenses and other	(18		)	(22		)
Deferred tax liabilities	(41		)	(56		)
Other noncurrent liabilities	(2		)	(4		)

Undistributed earnings attributable to our equity method investments represented approximately $15 million of our consolidated retained earnings at year-end 2017.

Summarized Financial Information for Investees

The following tables present summarized financial information for the entities in which we have equity method investments:



($ in millions)	2017		2016⁽¹⁾		2015
Sales	$	1,176	$	747	$	615
Net income	$	222	$	101	$	44



($ in millions)	At Year-End 2017		At Year-End 2016
Assets (primarily composed of hotel real estate managed by us)	$	2,234	$	2,249
Liabilities	$	1,649	$	1,677


⁽¹⁾	2016 sales and net income for entities in which we acquired an investment through the Starwood Combination are for the period from the Merger Date to year-end 2016.

The carrying amount of our equity method investments was $734 million at year-end 2017 and $723 million at year-end 2016. This value exceeded our share of the book value of the investees' net assets by $441 million at year-end 2017 and $491 million at year-end 2016, primarily due to the value that we assigned to land, contracts, and buildings owned by the investees.

Other Related Parties

We received management fees of approximately $13 million in 2017, $13 million in 2016, and $13 million in 2015, plus reimbursement of certain expenses, from our operation of properties owned by JWM Family Enterprises, L.P., which is beneficially owned and controlled by J.W. Marriott, Jr., Deborah Marriott Harrison, and other members of the Marriott family.

RELATIONSHIP WITH MAJOR CUSTOMER	12 Months Ended
RELATIONSHIP WITH MAJOR CUSTOMER	Dec. 31, 2017
Relationship with Major Customer Disclosure [Abstract]
RELATIONSHIP WITH MAJOR CUSTOMER	RELATIONSHIP WITH MAJOR CUSTOMER Host Hotels & Resorts, Inc., formerly known as Host Marriott Corporation, and its affiliates (“Host”) owned or leased 84 lodging properties at year-end 2017 and 87 lodging properties at year-end 2016 that we operated or franchised. Over the last three years, we recognized revenues, including cost reimbursements revenue, of $2,645 million in 2017, $1,991 million in 2016, and $1,888 million in 2015 from those lodging properties, and included those revenues in our North American Full-Service and North American Limited-Service reportable business segments, and our Caribbean and Latin America and Europe operating segments. Host is also a partner in certain unconsolidated partnerships that own lodging properties that we operate under long-term agreements. Host was affiliated with eight such properties at year-end 2017 and eight such properties at year-end 2016. We recognized revenues, including cost reimbursements revenue, of $113 million in 2017, $98 million in 2016, and $103 million in 2015 from those lodging properties, and included those revenues in our North American Full-Service reportable business segment and our Europe operating segment.

SUPPLEMENTARY DATA QUARTERLY FINANCIAL DATA - UNAUDITED

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

SUPPLEMENTARY DATA QUARTERLY FINANCIAL DATA - UNAUDITED

SUPPLEMENTARY DATA

QUARTERLY FINANCIAL DATA – UNAUDITED



($ in millions, except per share data)	2017
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter			Fiscal Year
Revenues	$	5,561	$	5,795	$	5,663	$	5,875		$	22,894
Operating income	$	537	$	620	$	632	$	570		$	2,359
Net income	$	365	$	414	$	392	$	201	⁽²⁾	$	1,372
Basic earnings per share ⁽¹⁾	$	0.95	$	1.09	$	1.05	$	0.55		$	3.66
Diluted earnings per share ⁽¹⁾	$	0.94	$	1.08	$	1.04	$	0.54		$	3.61



($ in millions, except per share data)	2016
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	3,772	$	3,902	$	3,942	$	5,456	$	17,072
Operating income	$	367	$	389	$	171	$	441	$	1,368
Net income	$	219	$	247	$	70	$	244	$	780
Basic earnings per share ⁽¹⁾	$	0.86	$	0.97	$	0.26	$	0.63	$	2.68
Diluted earnings per share ⁽¹⁾	$	0.85	$	0.96	$	0.26	$	0.62	$	2.64


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


⁽²⁾	Includes our provisional income tax expense estimate of $586 million under the 2017 Tax Act and a gain of $659 million from the disposition of our ownership interest in Avendra.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

In order to make this report easier to read, we also refer throughout to (i) our Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Statements of Income as our “Income Statements,” (iii) our Consolidated Balance Sheets as our “Balance Sheets,” (iv) our Condensed Consolidated Statements of Cash Flows as our “Statements of Cash Flows,” (v) our properties, brands, or markets in the United States (“U.S.”) and Canada as “North America” or “North American,” and (vi) our properties, brands, or markets in our Caribbean and Latin America, Europe, and Middle East and Africa regions as “Other International,” and together with those in our Asia Pacific segment, as “International.” In addition, references throughout to numbered “Footnotes” refer to the numbered Notes in these Notes to Consolidated Financial Statements, unless otherwise noted.

Preparation of financial statements that conform with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods, and the disclosures of contingent liabilities. Accordingly, ultimate results could differ from those estimates.

The accompanying Financial Statements reflect all normal and recurring adjustments necessary to present fairly our financial position at fiscal year-end 2017 and fiscal year-end 2016 and the results of our operations and cash flows for fiscal years 2017, 2016, and 2015. We have eliminated all material intercompany transactions and balances between entities consolidated in these Financial Statements.

Revenue Recognition

Owned and Leased Units: We recognize room sales and revenues from other guest services for our owned and leased units when rooms are occupied and when we have rendered the services.

Share-Based Compensation

Income Taxes

Cash and Equivalents

We consider all highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents.

Accounts Receivable

Assets Held for Sale

Goodwill

Intangibles and Long-Lived Assets

Investments

For investments in securities classified as available-for-sale, we determine the cost basis of the securities sold using specific identification, meaning that we track our securities individually.

Fair Value Measurements

Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

Derivative Instruments

Loan Loss Reserves

Guarantees

Self-Insurance Programs

Legal Contingencies

Business Combinations

New Accounting Standards

We currently estimate that the primary effects of ASU 2014-09 and the related ASUs on us will be as follows:


•	We expect to recognize franchise application and relicensing fees over the term of the franchise contract rather than at hotel opening or relicensing.


•	We expect to present the amortization of contract acquisition costs we pay to owners, franchisees, and other customers as a reduction of revenue rather than including such costs in “Depreciation, amortization, and other” on our Income Statements.


•	We expect to capitalize fewer contract acquisition costs, as some of those costs will not meet the capitalization criteria once we adopt ASU 2014-09.


•	We expect to recognize the revenue for certain pre-opening services performed for hotels and some related direct costs over the term of the management or franchise contract rather than during the pre-opening period.

•

New Accounting Standards Adopted

•


•	We now classify cash paid to taxing authorities when we withhold shares for employee tax-withholding purposes as a financing activity. As required, we retrospectively applied this amendment in our Statements of Cash Flows, and accordingly we reclassified cash outflows from operating activities to financing activities of $100 million for 2016 and $85 million for 2015.

Intangible Assets

Property and Equipment, Capitalization and Useful Lives

ACQUISITIONS AND DISPOSITIONS (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Consideration Transferred and Results of Starwood Operations Included in Income Statements

The following table presents the fair value of each type of consideration that we transferred in the Starwood Combination:



(in millions, except per share amounts)
Equivalent shares of Marriott common stock issued in exchange for Starwood outstanding shares	134.4
Marriott common stock price as of Merger Date	$	68.44
Fair value of Marriott common stock issued in exchange for Starwood outstanding shares	9,198
Cash consideration to Starwood shareholders, net of cash acquired of $1,116	2,412
Fair value of Marriott equity-based awards issued in exchange for vested Starwood equity-based awards	71
Total consideration transferred, net of cash acquired	$	11,681

The following table presents pre-tax merger-related costs and other charges that we incurred in connection with the Starwood Combination.



($ in millions)	2017		2016		2015
Merger-related costs and charges
Transaction costs	$	17	$	53	$	—
Employee termination costs	11		241		—
Integration costs	131		92		—
	159		386		—
Interest expense	—		22		—
	$	159	$	408	$	—

Fair Value of Assets Acquired and Liabilities Assume

The following table presents our fair value estimates of the assets that we acquired and the liabilities that we assumed on the Merger Date:



($ in millions)	September 23, 2016 (as finalized)
Working capital	$	(236	)
Property and equipment, including assets held for sale	1,706
Identified intangible assets	7,238
Equity and cost method investments	537
Other noncurrent assets	200
Deferred income taxes, net	(1,464		)
Guest loyalty program	(1,638		)
Debt	(1,877		)
Other noncurrent liabilities	(977		)
Net assets acquired	3,489
Goodwill ⁽¹⁾	8,192
	$	11,681


⁽¹⁾	Goodwill primarily represents the value that we expect to obtain from synergies and growth opportunities from our combined operations, and it is not deductible for tax purposes. See Footnote 13 “Intangible Assets and Goodwill” for changes in our assignment of goodwill by reportable segment.

Fair Values of Identified Intangible Assets and Their Estimated Useful Lives

The following table presents our estimates of the fair values of Starwood’s identified intangible assets and their related estimated useful lives.



	Estimated Fair Value (in millions)		Estimated Useful Life (in years)
Brands	$	5,664	indefinite
Management Agreements and Lease Contract Intangibles	751		10 - 25
Franchise Agreements	746		10 - 80
Loyalty Program Marketing Rights	77		30
	$	7,238

MERGER-RELATED COSTS AND CHARGES (Tables)

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Schedule by Type of Merger-Related Costs and Charges

The following table presents the fair value of each type of consideration that we transferred in the Starwood Combination:



(in millions, except per share amounts)
Equivalent shares of Marriott common stock issued in exchange for Starwood outstanding shares	134.4
Marriott common stock price as of Merger Date	$	68.44
Fair value of Marriott common stock issued in exchange for Starwood outstanding shares	9,198
Cash consideration to Starwood shareholders, net of cash acquired of $1,116	2,412
Fair value of Marriott equity-based awards issued in exchange for vested Starwood equity-based awards	71
Total consideration transferred, net of cash acquired	$	11,681

The following table presents pre-tax merger-related costs and other charges that we incurred in connection with the Starwood Combination.



($ in millions)	2017		2016		2015
Merger-related costs and charges
Transaction costs	$	17	$	53	$	—
Employee termination costs	11		241		—
Integration costs	131		92		—
	159		386		—
Interest expense	—		22		—
	$	159	$	408	$	—

Restructuring Reserve Activity

The following table presents our restructuring reserve activity during 2017:



($ in millions)	Liability for employee termination costs
Balance at year-end 2016	$	192
Charges	8
Cash payments	(120		)
Adjustments ⁽¹⁾	(13		)
Balance at year-end 2017, classified in “Accrued expenses and other”	$	67


⁽¹⁾	Adjustments primarily reflect the reversal of charges for certain employees who accepted other positions at the Company or resigned and the impact of cumulative translation adjustments.

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share

The table below illustrates the reconciliation of the earnings and number of shares used in our calculations of basic and diluted earnings per share:



(in millions, except per share amounts)	2017		2016		2015
Computation of Basic Earnings Per Share
Net income	$	1,372	$	780	$	859
Shares for basic earnings per share	375.2		290.9		267.3
Basic earnings per share	$	3.66	$	2.68	$	3.22
Computation of Diluted Earnings Per Share
Net income	$	1,372	$	780	$	859
Shares for basic earnings per share	375.2		290.9		267.3
Effect of dilutive securities
Share-based compensation	4.7		4.8		5.5
Shares for diluted earnings per share	379.9		295.7		272.8
Diluted earnings per share	$	3.61	$	2.64	$	3.15

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Additional Information on RSUs

The following table provides additional information on RSUs for the last three fiscal years:



	2017		2016		2015
Share-based compensation expense (in millions)	$	172	$	204	$	103
Weighted average grant-date fair value (per RSU)	$	85	$	66	$	78
Aggregate intrinsic value of distributed RSUs (in millions)	$	322	$	190	$	195

Changes in Outstanding RSU Grants

The following table presents the changes in our outstanding RSUs during 2017 and the associated weighted average grant-date fair values:



	Number of RSUs (in millions)		Weighted Average Grant-Date Fair Value (per RSU)
Outstanding at year-end 2016	7.4		$	61
Granted ⁽¹⁾	1.9		85
Distributed	(3.5	)	59
Forfeited	(0.2	)	72
Outstanding at year-end 2017	5.6		$	71


⁽¹⁾	Includes 0.2 million PSUs.

Changes in Outstanding SARs

The following table presents the changes in our outstanding SARs during 2017 and the associated weighted average exercise prices:



	Number of SARs (in millions)		Weighted Average Exercise Price
Outstanding at year-end 2016	4.6		$	40
Granted	0.3		88
Exercised	(1.2	)	33
Outstanding at year-end 2017	3.7		$	47

Number of Employee SARs and Director SARs



	2017		2016		2015
Employee SARs
Employee SARs granted (in millions)	0.3		0.4		0.3
Weighted average exercise price (per SAR)	$	88	$	67	$	83
Weighted average grant-date fair value (per SAR)	$	30	$	22	$	26
Director SARs
Director SARs granted	—		3,507		2,773
Weighted average exercise price (per SAR)	$	—	$	69	$	80
Weighted average grant-date fair value (per SAR)	$	—	$	23	$	29

Assumptions Used to Determine the Fair Value of SARs

We used the following assumptions to determine the fair value of the SARs we granted to employees and non-employee directors in 2017, 2016, and 2015:



	2017		2016		2015
Expected volatility	30.9	%	30.4	%	29.9	%
Dividend yield	1.3	%	1.3	%	1.0	%
Risk-free rate	2.4	%	1.7 - 2.4%		1.9 - 2.3%
Expected term (in years)	8		8 - 10		6 - 10

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of Earnings Before Income Taxes

The components of our earnings before income taxes for the last three fiscal years consisted of:



($ in millions)	2017		2016		2015
U.S.	$	1,983	$	813	$	896
Non-U.S.	853		371		359
	$	2,836	$	1,184	$	1,255

Provision for Income Taxes

Our provision for income taxes for the last three fiscal years consists of:



($ in millions)		2017			2016			2015
Current	-U.S. Federal	$	(1,253	)	$	(203	)	$	(167	)
	-U.S. State	(152		)	(41		)	(40		)
	-Non-U.S.	(178		)	(56		)	(50		)
		(1,583		)	(300		)	(257		)

Deferred	-U.S. Federal	107			(61		)	(131		)
	-U.S. State	(26		)	(14		)	(7		)
	-Non-U.S.	38			(29		)	(1		)
		119			(104		)	(139		)
		$	(1,464	)	$	(404	)	$	(396	)

Unrecognized Tax Benefits Reconciliation

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2015 to the end of 2017:



($ in millions)	Amount
Unrecognized tax benefit at beginning of 2015	$	10
Change attributable to tax positions taken during the current period	15
Decrease attributable to settlements with taxing authorities	—
Decrease attributable to lapse of statute of limitations	(1		)
Unrecognized tax benefit at year-end 2015	24
Additions from Starwood Combination	387
Change attributable to tax positions taken in prior years	(3		)
Change attributable to tax positions taken during the current period	16
Decrease attributable to settlements with taxing authorities	(2		)
Decrease attributable to lapse of statute of limitations	(1		)
Unrecognized tax benefit at year-end 2016	421
Change attributable to tax positions taken in prior years	12
Change attributable to tax positions taken during the current period	87
Decrease attributable to settlements with taxing authorities	(28		)
Decrease attributable to lapse of statute of limitations	(1		)
Unrecognized tax benefit at year-end 2017	$	491

Schedule of Deferred Tax Assets and Liabilities



($ in millions)	At Year-End 2017			At Year-End 2016
Deferred Tax Assets
Employee benefits	$	274		$	430
Net operating loss carry-forwards	375			320
Accrued expenses and other reserves	145			204
Receivables, net	29			134
Tax credits	27			79
Frequent guest program	12			42
Deferred income	14			20
Self-insurance	12			15
Other	—			32
Deferred tax assets	888			1,276
Valuation allowance	(313		)	(249		)
Deferred tax assets after valuation allowance	575			1,027
Deferred Tax Liabilities
Joint venture interests	(43		)	(8		)
Property and equipment	(47		)	(199		)
Intangibles	(963		)	(1,724		)
Other	(33		)	—
Deferred tax liabilities	(1,086		)	(1,931		)
Net deferred taxes	$	(511	)	$	(904	)

Reconciliation of the U.S. Statutory Tax Rate to Effective Income Tax Rate

The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years:



	2017		2016		2015
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
U.S. state income taxes, net of U.S. federal tax benefit	3.1		2.9		2.9
Non-U.S. income	(7.8	)	(6.8	)	(5.2	)
Change in valuation allowance	2.1		0.3		1.2
Change in uncertain tax positions	2.3		1.5		0.4
Change in U.S. tax rate	(5.6	)	0.0		0.0
Transition Tax on foreign earnings	23.9		0.0		0.0
Excess tax benefits related to equity awards	(2.5	)	0.0		0.0
Other, net	1.1		1.2		(2.8	)
Effective rate	51.6	%	34.1	%	31.5	%

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Maximum Potential Amount of Future Fundings as the Primary Obligor for Guarantees and the Liability for Expected Future Fundings



($ in millions) Guarantee Type	Maximum Potential Amount of Future Fundings		Recorded Liability for Guarantees
Debt service	$	130	$	18
Operating profit	237		110
Other	10		2
	$	377	$	130

LEASES (Tables)

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Future Minimum Lease Obligations

The following table presents our future minimum lease obligations for which we are the primary obligor as of year-end 2017:



($ in millions)	Operating Leases		Capital Leases
2018	$	187	$	13
2019	187		14
2020	167		14
2021	143		13
2022	154		14
Thereafter	1,454		178
Total minimum lease payments where we are the primary obligor	$	2,292	$	246
Less: Amount representing interest			75
Present value of minimum lease payments			$	171

Composition of Rent Expense Associated with Operating Leases

The following table details the composition of rent expense for operating leases for the last three years:



($ in millions)	2017		2016		2015
Minimum rentals	$	194	$	150	$	138
Additional rentals	85		67		65
	$	279	$	217	$	203

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES (Tables)

12 Months Ended

Dec. 31, 2017

Self-Insurance Reserve for Losses and Loss Adjustment Expenses Disclosure [Abstract]

Self-Insurance Reserve for Losses and Loss Adjustment Expenses

The following table summarizes the activity in our self-insurance reserve for losses and loss adjustment expenses as of year-end 2017 and 2016:



($ in millions)	2017			2016
Balance at beginning of year	$	522		$	416
Less: Reinsurance recoverable	(3		)	(3		)
Net balance at beginning of year	519			413
Assumed in the Starwood Combination	—			91
Incurred related to:
Current year	163			140
Prior years	(46		)	(20		)
Total incurred	117			120
Paid related to:
Current year	(30		)	(26		)
Prior years	(74		)	(79		)
Total paid	(104		)	(105		)
Net balance at end of year	532			519
Add: Reinsurance recoverable	3			3
Balance at end of year	$	535		$	522

Current portion classified in “Accrued expenses and other”	$	146		$	142
Noncurrent portion classified in “Other noncurrent liabilities”	389			380
	$	535		$	522

LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Long-Term Debt

We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Senior Notes:
Series I Notes, interest rate of 6.4%, face amount of $293, matured June 15, 2017 (effective interest rate of 6.5%)	$	—		$	293
Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.4%)	598			597
Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%)	348			348
Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%)	348			347
Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%)	397			396
Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 (effective interest rate of 3.1%)	447			446
Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%)	345			344
Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 (effective interest rate of 2.5%)	744			742
Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%)	743			742
Series S Notes, interest rate of 6.8%, face amount of $324, maturing May 15, 2018 (effective interest rate of 1.7%)	330			346
Series T Notes, interest rate of 7.2%, face amount of $181, maturing December 1, 2019 (effective interest rate of 2.3%)	197			206
Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%)	291			291
Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%)	337			340
Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%)	292			293
Commercial paper	2,371			2,311
Credit Facility	—			—
Capital lease obligations	171			173
Other	279			291
	$	8,238		$	8,506
Less: Current portion of long-term debt	(398		)	(309		)
	$	7,840		$	8,197

Future Principal Payments for Debt

The following table presents future principal payments, net of discounts, premiums, and debt issuance costs, for our debt as of year-end 2017:



Debt Principal Payments ($ in millions)	Amount
2018	$	398
2019	843
2020	365
2021	3,233
2022	1,114
Thereafter	2,285
Balance at year-end 2017	$	8,238

Benefit Obligation, Fair Value of Plans, the Funded Status and the Accumulated Benefit Obligation of Defined Benefit Pension and Postretirement Benefit Plans

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2017

Retirement Benefits [Abstract]



	Domestic Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
($ in millions)	2017			2016			2017			2016			2017			2016
Plan Assets
Beginning fair value of plan assets ⁽¹⁾	$	—		$	—		$	262		$	278		$	—		$	—
Actual return on plan assets, net of expenses	—			—			29			(10		)	—			—
Employer contribution	2			1			2			2			1			—
Effect of foreign exchange rates	—			—			10			(6		)	—			—
Benefits paid	(2		)	(1		)	(9		)	(2		)	(1		)	—
Ending fair value of plan assets	$	—		$	—		$	294		$	262		$	—		$	—
Accumulated Benefit Obligations
Beginning benefit obligations⁽¹⁾	$	21		$	23		$	229		$	251		$	15		$	16
Interest cost	1			—			8			2			—			—
Actuarial loss (gain)	1			(1		)	10			(17		)	—			(1		)
Effect of foreign exchange rates	—			—			8			(5		)	—			—
Benefits paid	(2		)	(1		)	(9		)	(2		)	(1		)	—
Ending accumulated benefit obligations	$	21		$	21		$	246		$	229		$	14		$	15
Funded Status
Overfunded (underfunded) at year-end	$	(21	)	$	(21	)	$	48		$	33		$	(14	)	$	(15	)


⁽¹⁾	Beginning balances in 2016 represent assets acquired and liabilities assumed on the Merger Date.

Schedule of Amounts Recognized in Balance Sheet

The following table shows the classification of overfunded and (underfunded) amounts in our Balance Sheets at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Other noncurrent assets	$	56		$	40
Accrued expenses and other	(3		)	(3		)
Other noncurrent liabilities	(40		)	(40		)
	$	13		$	(3	)

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

The following table shows the benefit obligations for pension plans with accumulated benefit obligations that exceed the fair value of plan assets:



	Domestic Pension Benefits				Foreign Pension Benefits
($ in millions)	2017		2016		2017		2016
Projected benefit obligation	$	21	$	21	$	8	$	7
Accumulated benefit obligation	21		21		7		7
Fair value of plan assets	—		—		—		—

Assumptions Used

The weighted average assumptions used to determine benefit obligations at year-end 2017 and 2016 were as follows:



	Domestic Pension Benefits				Foreign Pension Benefits				Other Postretirement Benefits
	2017		2016		2017		2016		2017		2016
Discount rate	3.50	%	3.75	%	3.30	%	3.54	%	3.50	%	3.74	%
Rate of compensation increase ⁽¹⁾	n/a		n/a		3.02	%	3.02	%	n/a		n/a


⁽¹⁾	Rate of compensation increase is not applicable to domestic pension benefits as all domestic plans are frozen and do not accrue additional benefits, or to other postretirement benefits as it is not an input in the benefit obligation determination.

Fair Value Hierarchy of the Plan Assets Measured at Fair Value on a Recurring Basis

The following tables present our fair value hierarchy of plan assets at year-end 2017 and 2016:



	At Year-End 2017								At Year-End 2016
($ in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Mutual funds	$	86	$	—	$	—	$	86	$	79	$	—	$	—	$	79
Collective trusts	—		1		101		102		—		1		93		94
Equity index trusts	94		—		—		94		77		—		—		77
Money markets	1		9		—		10		1		9		—		10
Bond index funds	—		2		—		2		—		2		—		2
	$	181	$	12	$	101	$	294	$	157	$	12	$	93	$	262

Anticipated Pension and Postretirement Benefit Plan Payments

The following table shows our expected future pension and other postretirement benefit plan payments for the next ten years:



($ in millions)	Domestic Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits		Total
2018	$	2	$	17	$	1	$	20
2019	2		10		1		13
2020	2		10		1		13
2021	2		11		1		14
2022	2		11		1		14
2023-2027	7		59		5		71

INTANGIBLE ASSETS AND GOODWILL (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Composition of Intangible Assets, Finite-Lived

The following table details the composition of our intangible assets at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Definite-lived Intangible Assets
Contract acquisition costs and other	$	3,530		$	3,276
Accumulated amortization	(579		)	(447		)
	2,951			2,829
Indefinite-lived Intangible Brand Assets	5,854			6,441
	$	8,805		$	9,270

Composition of Intangible Assets, Indefinite-Lived

The following table details the composition of our intangible assets at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Definite-lived Intangible Assets
Contract acquisition costs and other	$	3,530		$	3,276
Accumulated amortization	(579		)	(447		)
	2,951			2,829
Indefinite-lived Intangible Brand Assets	5,854			6,441
	$	8,805		$	9,270

Carrying Amount of Goodwill

The following table details the carrying amount of our goodwill at year-end 2017 and 2016:



($ in millions)	North American Full-Service		North American Limited-Service			Asia Pacific		Other International		Total Goodwill
Year-end 2016 balance:
Goodwill	$	2,905	$	1,558		$	1,572	$	1,617	$	7,652
Accumulated impairment losses	—		(54		)	—		—		(54		)
	2,905		1,504			1,572		1,617		7,598

Adjustments ⁽¹⁾	$	664	$	255		$	276	$	223	$	1,418
Foreign currency translation	16		10			80		85		191

Year-end 2017 balance:
Goodwill	$	3,585	$	1,823		$	1,928	$	1,925	$	9,261
Accumulated impairment losses	—		(54		)	—		—		(54		)
	$	3,585	$	1,769		$	1,928	$	1,925	$	9,207


⁽¹⁾	The table reflects adjustments to our goodwill from the Starwood Combination during the measurement period.

NOTES RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Composition of our Notes Receivable Balances (Net of Reserves and Unamortized Discounts)

The following table presents the composition of our notes receivable balances, net of reserves and unamortized discounts, at year-end 2017 and 2016:



($ in millions)	At Year-End 2017			At Year-End 2016
Senior, mezzanine, and other loans	$	149		$	248
Less: Current portion	(7		)	(3		)
	$	142		$	245

Notes Receivable Expected Future Principal Payments

The following table presents the expected future principal payments, net of reserves and unamortized discounts, as well as interest rates for our notes receivable as of year-end 2017:



Notes Receivable Principal Payments ($ in millions)	Amount
2018	$	7
2019	35
2020	14
2021	23
2022	5
Thereafter	65
Balance at year-end 2017	$	149
Weighted average interest rate at year-end 2017	5.4%
Range of stated interest rates at year-end 2017	0 - 18%

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities

We present the carrying values and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments, determined under current guidance for disclosures on the fair value of financial instruments, in the following table:



	At Year-End 2017						At Year-End 2016
($ in millions)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Senior, mezzanine, and other loans	$	142		$	130		$	245		$	231
Total noncurrent financial assets	$	142		$	130		$	245		$	231

Senior Notes	$	(5,087	)	$	(5,126	)	$	(5,438	)	$	(5,394	)
Commercial paper	(2,371		)	(2,371		)	(2,311		)	(2,311		)
Other long-term debt	(217		)	(221		)	(280		)	(284		)
Other noncurrent liabilities	(178		)	(178		)	(59		)	(59		)
Total noncurrent financial liabilities	$	(7,853	)	$	(7,896	)	$	(8,088	)	$	(8,048	)

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income Activity

The following table details the accumulated other comprehensive income (loss) activity for 2017, 2016, and 2015:



($ in millions)	Foreign Currency Translation Adjustments			Derivative Instrument Adjustments			Available-For-Sale Securities Unrealized Adjustments			Pension and Postretirement Adjustments		Accumulated Other Comprehensive Loss
Balance at year-end 2014	$	(72	)	$	(9	)	$	11		$	—	$	(70	)
Other comprehensive (loss) income before reclassifications ⁽¹⁾	(123		)	10			(7		)	—		(120		)
Amounts reclassified from accumulated other comprehensive loss	3			(9		)	—			—		(6		)
Net other comprehensive (loss) income	(120		)	1			(7		)	—		(126		)
Balance at year-end 2015	$	(192	)	$	(8	)	$	4		$	—	$	(196	)
Other comprehensive (loss) income before reclassifications ⁽¹⁾	(311		)	1			2			5		(303		)
Amounts reclassified from accumulated other comprehensive loss	—			2			—			—		2
Net other comprehensive (loss) income	(311		)	3			2			5		(301		)
Balance at year-end 2016	$	(503	)	$	(5	)	$	6		$	5	$	(497	)
Other comprehensive income (loss) before reclassifications ⁽¹⁾	478			(14		)	(2		)	7		469
Amounts reclassified from accumulated other comprehensive loss	2			9			—			—		11
Net other comprehensive income (loss)	480			(5		)	(2		)	7		480
Balance at year-end 2017	$	(23	)	$	(10	)	$	4		$	12	$	(17	)


⁽¹⁾	Other comprehensive income (loss) before reclassifications for foreign currency translation adjustments includes (losses) gains on intra-entity foreign currency transactions that are of a long-term investment nature of $(147) million for 2017, $69 million for 2016, and $48 million for 2015.

BUSINESS SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Revenues



($ in millions)	2017		2016		2015
North American Full-Service	$	14,300	$	10,376	$	8,825
North American Limited-Service	4,002		3,561		3,193
Asia Pacific	1,344		761		516
Other International	2,658		1,875		1,684
Unallocated corporate	590		499		268
Total consolidated revenues	$	22,894	$	17,072	$	14,486

Segment Profits



($ in millions)	2017			2016			2015
North American Full-Service	$	1,182		$	777		$	561
North American Limited-Service	816			698			651
Asia Pacific	345			176			98
Other International	386			231			194
Unallocated corporate	357			(499		)	(111		)
Interest expense, net of interest income	(250		)	(199		)	(138		)
Income taxes	(1,464		)	(404		)	(396		)
Net income	$	1,372		$	780		$	859

Depreciation and Amortization



($ in millions)	2017		2016		2015
North American Full-Service	$	111	$	67	$	55
North American Limited-Service	26		23		21
Asia Pacific	36		12		5
Other International	87		45		35
Unallocated corporate	30		21		23
	$	290	$	168	$	139

Capital Expenditures



($ in millions)	2017		2016		2015
North American Full-Service	$	21	$	35	$	120
North American Limited-Service	10		7		7
Asia Pacific	12		1		11
Other International	42		38		75
Unallocated corporate	155		118		92
	$	240	$	199	$	305

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2017

Financial Data Resulting from Transactions with Related Parties, Income Statement Data

The following tables present financial data resulting from transactions with these related parties:

Income Statement Data



($ in millions)	2017			2016			2015
Base management fees	$	28		$	18		$	15
Incentive management fees	15			10			3
Owned, leased, and other revenue	2			—			1
Cost reimbursements	360			193			197
Total revenue	$	405		$	221		$	216

Reimbursed costs	$	(360	)	$	(193	)	$	(197	)
Depreciation, amortization, and other	(5		)	(2		)	(2		)
General, administrative, and other	(1		)	—			(1		)
Gains and other income, net	658			1			—
Interest income	4			5			5
Equity in earnings	39			10			16

Financial Data Resulting from Transactions with Related Parties, Balance Sheet Data

Balance Sheet Data



($ in millions)	At Year-End 2017			At Year-End 2016
Current assets
Accounts and notes receivable, net	$	42		$	27
Prepaid expenses and other	1			1
Intangible assets
Contract acquisition costs and other	48			23
Equity method investments	734			723
Deferred tax assets	—			6
Other noncurrent assets	17			17
Current liabilities
Accounts payable	(11		)	(4		)
Accrued expenses and other	(18		)	(22		)
Deferred tax liabilities	(41		)	(56		)
Other noncurrent liabilities	(2		)	(4		)

Summarized Information for the Entities Equity Method Investments, Income Statement

The following tables present summarized financial information for the entities in which we have equity method investments:



($ in millions)	2017		2016⁽¹⁾		2015
Sales	$	1,176	$	747	$	615
Net income	$	222	$	101	$	44

Summarized Information for the Entities Equity Method Investments, Balance Sheet



($ in millions)	At Year-End 2017		At Year-End 2016
Assets (primarily composed of hotel real estate managed by us)	$	2,234	$	2,249
Liabilities	$	1,649	$	1,677


⁽¹⁾	2016 sales and net income for entities in which we acquired an investment through the Starwood Combination are for the period from the Merger Date to year-end 2016.

SUPPLEMENTARY DATA QUARTERLY FINANCIAL DATA - UNAUDITED (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information



($ in millions, except per share data)	2017
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter			Fiscal Year
Revenues	$	5,561	$	5,795	$	5,663	$	5,875		$	22,894
Operating income	$	537	$	620	$	632	$	570		$	2,359
Net income	$	365	$	414	$	392	$	201	⁽²⁾	$	1,372
Basic earnings per share ⁽¹⁾	$	0.95	$	1.09	$	1.05	$	0.55		$	3.66
Diluted earnings per share ⁽¹⁾	$	0.94	$	1.08	$	1.04	$	0.54		$	3.61



($ in millions, except per share data)	2016
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Fiscal Year
Revenues	$	3,772	$	3,902	$	3,942	$	5,456	$	17,072
Operating income	$	367	$	389	$	171	$	441	$	1,368
Net income	$	219	$	247	$	70	$	244	$	780
Basic earnings per share ⁽¹⁾	$	0.86	$	0.97	$	0.26	$	0.63	$	2.68
Diluted earnings per share ⁽¹⁾	$	0.85	$	0.96	$	0.26	$	0.62	$	2.64


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


⁽²⁾	Includes our provisional income tax expense estimate of $586 million under the 2017 Tax Act and a gain of $659 million from the disposition of our ownership interest in Avendra.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Jan. 01, 2018

Licensing fees from MVW and Vistana after spin-off

$ 101,000,000

$ 73,000,000

$ 59,000,000

Liability for guest loyalty program

$ 4,940,000,000

$ 4,541,000,000

$ 4,940,000,000

4,541,000,000

Reduction in estimate of breakage

10.00%

Increase in liability for guest loyalty program, contingent upon reduction in the estimate of breakage

269,000,000

$ 269,000,000

Losses from currency exchange rate transactions

$ 11,000,000

4,000,000

6,000,000

Normal collection period for accounts receivable

30 days

Accounts receivable reserve

$ 29,000,000

$ 20,000,000

$ 29,000,000

20,000,000

Goodwill impairment charge

$ 0

Discount rate

2.00%

Tax benefit from adoption of ASU 2016-09

$ 72,000,000

Earnings per share - diluted (in USD per share)

$ 0.54

$ 1.04

$ 1.08

$ 0.94

$ 0.62

$ 0.26

$ 0.96

$ 0.85

$ 3.61

$ 2.64

$ 3.15

$ 157,000,000

$ 100,000,000

$ 85,000,000

Net cash provided by operating activities

2,436,000,000

1,682,000,000

1,515,000,000

Net cash (used in) provided by financing activities

(3,931,000,000)

1,489,000,000

(1,890,000,000)

Reduction in reimbursed costs

^[1]

$ (17,765,000,000)

(13,546,000,000)

(11,630,000,000)

Accounting Standards Update 2016-09

Earnings per share - diluted (in USD per share)

$ 0.19

Excess tax benefit classified as operating activities

$ 72,000,000

Excess tax benefit classified as financing activities

32,000,000

34,000,000

Net cash provided by operating activities

(100,000,000)

(85,000,000)

Net cash (used in) provided by financing activities

100,000,000

85,000,000

Profit Sharing

Compensation costs from profit sharing

$ 119,000,000

$ 91,000,000

$ 80,000,000

Scenario, Forecast | Accounting Standards Update 2016-16 | Retained Earnings

Cumulative-effect adjustment

$ 289,000,000

[1]	See Footnote 19 “Related Party Transactions” for disclosure of related party amounts.

ACQUISITIONS AND DISPOSITIONS - Starwood Consideration Transferred (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		12 Months Ended
	Sep. 23, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Cash consideration to Starwood shareholders, net of cash acquired of $1,116		$ 0	$ 2,412	$ 137
Starwood Hotels & Resorts
Business Acquisition [Line Items]
Equivalent shares of Marriott common stock issued in exchange for Starwood outstanding shares (in shares)	134.4
Marriott common stock price as of Merger Date (in USD per share)	$ 68.44
Fair value of Marriott common stock issued in exchange for Starwood outstanding shares	$ 9,198
Cash consideration to Starwood shareholders, net of cash acquired of $1,116	2,412
Fair value of Marriott equity-based awards issued in exchange for vested Starwood equity-based awards	71
Total consideration transferred, net of cash acquired	11,681
Cash acquired	$ 1,116

ACQUISITIONS AND DISPOSITIONS - Starwood Allocation of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Sep. 23, 2016
Business Acquisition [Line Items]
Goodwill	$ 9,207	$ 7,598
Starwood Hotels & Resorts
Business Acquisition [Line Items]
Working capital			$ (236)
Property and equipment, including assets held for sale			1,706
Identified intangible assets			7,238
Equity and cost method investments			537
Other noncurrent assets			200
Deferred income taxes, net			(1,464)
Guest loyalty program			(1,638)
Debt			(1,877)
Other noncurrent liabilities			(977)
Net assets acquired			3,489
Goodwill			8,192
Fair value of assets acquired and liabilities assumed, net			$ 11,681

ACQUISITIONS AND DISPOSITIONS - Starwood Fair Value and Estimated Useful Lives of Identifiable Intangible Assets (Details) - Starwood Hotels & Resorts $ in Millions	Sep. 23, 2016 USD ($)
Business Acquisition [Line Items]
Estimated Fair Value (in millions)	$ 7,238
Management Agreements and Lease Contract Intangibles
Business Acquisition [Line Items]
Estimated Fair Value (in millions)	$ 751
Management Agreements and Lease Contract Intangibles \| Minimum
Business Acquisition [Line Items]
Estimated Useful Life (in years)	10 years
Management Agreements and Lease Contract Intangibles \| Maximum
Business Acquisition [Line Items]
Estimated Useful Life (in years)	25 years
Franchise Agreements
Business Acquisition [Line Items]
Estimated Fair Value (in millions)	$ 746
Franchise Agreements \| Minimum
Business Acquisition [Line Items]
Estimated Useful Life (in years)	10 years
Franchise Agreements \| Maximum
Business Acquisition [Line Items]
Estimated Useful Life (in years)	80 years
Loyalty Program Marketing Rights
Business Acquisition [Line Items]
Estimated Fair Value (in millions)	$ 77
Estimated Useful Life (in years)	30 years
Brands
Business Acquisition [Line Items]
Estimated Fair Value (in millions)	$ 5,664

ACQUISITIONS AND DISPOSITIONS - Starwood Acquisition (Details) - Starwood Hotels & Resorts - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Pro forma revenue	$ 22,492	$ 21,937
Pro forma net income	1,180	967
Pro forma integration costs	$ 113
Pro forma transaction and employee termination costs		$ 397

ACQUISITIONS AND DISPOSITIONS - Disposals (Details) CAD in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 CAD	Dec. 31, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jun. 30, 2016 USD ($)
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Avendra LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposal	$ 659
Ownership percentage				55.00%	55.00%
Procurement services term	5 years
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Sheraton Centre Toronto Hotel
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration received				CAD 335	$ 268
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Westin Maui
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration received						$ 306
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| St. Regis San Francisco
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration received							$ 165
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Charlotte Marriott City Center
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposal		$ 24
Consideration received		$ 169
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| North American, Limited-Service Plot of Land
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration received								$ 46
Disposal Group, Held-for-sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets					$ 149
Subsequent Event \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Sheraton Buenos Aires Hotel
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration received			$ 105

MERGER-RELATED COSTS AND CHARGES - Types of Merger-Related Costs and Charges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Merger-related costs and charges	$ 159	$ 386	$ 0
Interest expense	288	234	167
Starwood Hotels & Resorts
Restructuring Cost and Reserve [Line Items]
Transaction costs	17	53	0
Employee termination costs	11	241	0
Integration costs	131	92	0
Merger-related costs and charges	159	386	0
Interest expense	0	22	0
Merger-related costs and charges, including interest expense	$ 159	$ 408	$ 0

MERGER-RELATED COSTS AND CHARGES - Restructuring Reserve Activity (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance	$ 192
Charges	8
Cash payments	(120)
Adjustments	(13)
Ending balance	$ 67

EARNINGS PER SHARE - Reconciliation of the Earnings (Losses) and Number of Shares Used in Calculations of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Computation of Basic Earnings Per Share
Net income	$ 201	$ 392	$ 414	$ 365	$ 244	$ 70	$ 247	$ 219	$ 1,372	$ 780	$ 859
Shares for basic earnings per share (in shares)									375.2	290.9	267.3
Basic earnings per share (in USD per share)	$ 0.55	$ 1.05	$ 1.09	$ 0.95	$ 0.63	$ 0.26	$ 0.97	$ 0.86	$ 3.66	$ 2.68	$ 3.22
Computation of Diluted Earnings Per Share
Net income	$ 201	$ 392	$ 414	$ 365	$ 244	$ 70	$ 247	$ 219	$ 1,372	$ 780	$ 859
Shares for basic earnings per share (in shares)									375.2	290.9	267.3
Effect of dilutive securities
Share-based compensation									4.7	4.8	5.5
Shares for diluted earnings per share (in shares)									379.9	295.7	272.8
Diluted earnings per share (in USD per share)	$ 0.54	$ 1.04	$ 1.08	$ 0.94	$ 0.62	$ 0.26	$ 0.96	$ 0.85	$ 3.61	$ 2.64	$ 3.15

SHARE-BASED COMPENSATION - Additional Information (Details) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) installment shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 181	$ 212	$ 113
Deferred compensation costs related to unvested awards, weighted average period	2 years
Deferred compensation costs	$ 168	192
Shares reserved under the stock plan (in shares) \| shares	32
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 172	204	103
Vesting period	4 years
Period of service after grant date	1 year
Deferred compensation costs	$ 164	188
Weighted average remaining term for grants outstanding	2 years
PSUs \| Certain Executive Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 9	8	$ 7
Period of service after grant date	1 year
Deferred compensation costs	$ 4	4
Number of installment periods \| installment	4
Intrinsic value of stock appreciation rights outstanding	$ 329	196
Intrinsic value of stock appreciation rights exercisable	289	179
Intrinsic value of stock appreciation rights exercised	$ 80	$ 58
SARs \| Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
SARs \| Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Period until exercisable	1 year

SHARE-BASED COMPENSATION - Additional Information on RSUs (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of Restricted Stock Activity [Line Items]
Share-based compensation expense (in millions)	$ 181	$ 212	$ 113
RSUs
Reconciliation of Restricted Stock Activity [Line Items]
Share-based compensation expense (in millions)	$ 172	$ 204	$ 103
Weighted average grant-date fair value (in USD per share)	$ 85	$ 66	$ 78
Aggregate intrinsic value of distributed RSUs (in millions)	$ 322	$ 190	$ 195

SHARE-BASED COMPENSATION - Changes in Outstanding RSU Grants (Details) shares in Millions	12 Months Ended
	Dec. 31, 2017 $ / shares shares
RSUs
Number of RSUs (in millions)
Outstanding beginning balance (in shares)	7.4
Granted (in shares)	1.9
Distributed (in shares)	(3.5)
Forfeited (in shares)	(0.2)
Outstanding ending balance (in shares)	5.6
Weighted Average Grant-Date Fair Value (per RSU)
Outstanding beginning balance (in USD per share) \| $ / shares	$ 61
Granted (in USD per share) \| $ / shares	85
Distributed (in USD per share) \| $ / shares	59
Forfeited (in USD per share) \| $ / shares	72
Outstanding ending balance (in USD per share) \| $ / shares	$ 71
PSUs
Number of RSUs (in millions)
Granted (in shares)	0.2

SHARE-BASED COMPENSATION - Changes in Outstanding SARs (Details) - SARs shares in Millions	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Number of SARs (in millions)
Outstanding beginning balance (in shares) \| shares	4.6
Granted (in shares) \| shares	0.3
Exercised (in shares) \| shares	(1.2)
Outstanding ending balance (in shares) \| shares	3.7
Weighted Average Exercise Price
Outstanding beginning balance (in USD per share) \| $ / shares	$ 40
Granted (in USD per share) \| $ / shares	88
Exercised (in USD per share) \| $ / shares	33
Outstanding ending balance (in USD per share) \| $ / shares	$ 47

SHARE-BASED COMPENSATION - Number of Employee SARs and Director SARs Granted, Associated Weighted Average Base Values, And Weighted Average Grant-Date Fair Values (Details) - SARs - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	300,000
Weighted average grant-date fair value (in USD per share)	$ 88
Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	300,000	400,000	300,000
Weighted average exercise price (in USD per share)	$ 88	$ 67	$ 83
Weighted average grant-date fair value (in USD per share)	$ 30	$ 22	$ 26
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0	3,507	2,773
Weighted average exercise price (in USD per share)	$ 0	$ 69	$ 80
Weighted average grant-date fair value (in USD per share)	$ 0	$ 23	$ 29

SHARE-BASED COMPENSATION - Assumptions for the Fair Value of SARs (Details) - SARs	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Expected volatility	30.90%	30.40%	29.90%
Dividend yield	1.30%	1.30%	1.00%
Expected term (in years)	8 years
Minimum
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Risk-free rate	2.40%	1.70%	1.90%
Expected term (in years)		8 years	6 years
Maximum
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Risk-free rate	2.40%	2.40%	2.30%
Expected term (in years)		10 years	10 years

INCOME TAXES - Components of Earnings Before Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
U.S.	$ 1,983	$ 813	$ 896
Non-U.S.	853	371	359
Earnings before income taxes	$ 2,836	$ 1,184	$ 1,255

INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current
-U.S. Federal	$ (1,253)	$ (203)	$ (167)
-U.S. State	(152)	(41)	(40)
-Non-U.S.	(178)	(56)	(50)
Current income tax expense	(1,583)	(300)	(257)
Deferred
-U.S. Federal	107	(61)	(131)
-U.S. State	(26)	(14)	(7)
-Non-U.S.	38	(29)	(1)
Deferred income tax expense	119	(104)	(139)
Provision for income taxes	$ (1,464)	$ (404)	$ (396)

INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Contingency [Line Items]
Tax benefits from share-based compensation	$ 72	$ 32	$ 34
Change in unrecognized tax benefits	70	397	14
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	385	288	15
Amount of unrecognized tax benefits that is reasonably possible will be reversed in next twelve months	83
Interest related to unrecognized tax benefits	24	8	3
Tax credits which expire	12
Tax credits which do not expire	15
Net operating loss benefits	6	5
Net operating losses	2,250
Net operating losses subject to expiration	1,346
Cash paid for income taxes	$ 636	$ 293	$ 218
Income tax benefit from non-U.S. income	(7.80%)	(6.80%)	(5.20%)
Non-U.S. pre tax income	$ 853	$ 371	$ 359
2017 Tax Act, income tax provision due to one-time transition tax	586
2017 Tax Act, estimated tax benefit for deferred tax assets and liabilities	159
2017 Tax Act, provisional estimated foreign and state transition tax expense	745
U.S. Issues Currently in Appeals
Income Tax Contingency [Line Items]
Amount of unrecognized tax benefits that is reasonably possible will be reversed in next twelve months	59
State and Non-U.S. Audits Expected to be Resolved in 2018
Income Tax Contingency [Line Items]
Amount of unrecognized tax benefits that is reasonably possible will be reversed in next twelve months	20
Issues for Which Statues of Limitations Expired in 2018
Income Tax Contingency [Line Items]
Amount of unrecognized tax benefits that is reasonably possible will be reversed in next twelve months	$ 3
Switzerland, Singapore, and Luxembourg
Income Tax Contingency [Line Items]
Income tax benefit from non-U.S. income	(6.20%)	(7.40%)	(4.80%)
Non-U.S. pre tax income	$ 576	$ 271	$ 182

INCOME TAXES - Unrecognized Tax Benefit Reconciliation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit at beginning of year	$ 421	$ 24	$ 10
Additions from Starwood Combination		387
Change attributable to tax positions taken in prior years		(3)
Change attributable to tax positions taken in prior years	12
Change attributable to tax positions taken during the current period	87	16	15
Decrease attributable to settlements with taxing authorities	(28)	(2)	0
Decrease attributable to lapse of statute of limitations	(1)	(1)	(1)
Unrecognized tax benefit at end of year	$ 491	$ 421	$ 24

INCOME TAXES - Types of Temporary Differences and Carry-Forwards that Significantly Effect Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets
Employee benefits	$ 274	$ 430
Net operating loss carry-forwards	375	320
Accrued expenses and other reserves	145	204
Receivables, net	29	134
Tax credits	27	79
Frequent guest program	12	42
Deferred income	14	20
Self-insurance	12	15
Other	0	32
Deferred tax assets	888	1,276
Valuation allowance	(313)	(249)
Deferred tax assets after valuation allowance	575	1,027
Deferred Tax Liabilities
Joint venture interests	(43)	(8)
Property and equipment	(47)	(199)
Intangibles	(963)	(1,724)
Other	(33)	0
Deferred tax liabilities	(1,086)	(1,931)
Net deferred taxes	$ (511)	$ (904)

INCOME TAXES - Reconciliation of the U.S. Statutory Tax Rate to Effective Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
U.S. statutory tax rate	35.00%	35.00%	35.00%
U.S. state income taxes, net of U.S. federal tax benefit	3.10%	2.90%	2.90%
Non-U.S. income	(7.80%)	(6.80%)	(5.20%)
Change in valuation allowance	2.10%	0.30%	1.20%
Change in uncertain tax positions	2.30%	1.50%	0.40%
Change in U.S. tax rate	(5.60%)	0.00%	0.00%
Transition Tax on foreign earnings	23.90%	0.00%	0.00%
Excess tax benefits related to equity awards	(2.50%)	0.00%	0.00%
Other, net	1.10%	1.20%	(2.80%)
Effective rate	51.60%	34.10%	31.50%

COMMITMENTS AND CONTINGENCIES - Guarantees (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	$ 377
Recorded Liability for Guarantees	130
Debt service
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	130
Recorded Liability for Guarantees	18
Operating profit
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	237
Recorded Liability for Guarantees	110
Other
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	10
Recorded Liability for Guarantees	2
Times Square Edition
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	315
Recorded Liability for Guarantees	$ 2
Loan commitment, put option agreement, obligation to acquire property, term	2 years
Loan commitment, put option agreement, obligation to acquire property, extended term	3 years
Sheraton Grand Chicago Hotel
Commitments and Contingencies Disclosure [Line Items]
Recorded Liability for Guarantees	$ 57
Sheraton Grand Chicago Hotel \| Land and Hotel
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	300
Sheraton Grand Chicago Hotel \| Land
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	200
Not Yet In Effect Condition \| Debt service
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	6
Not Yet In Effect Condition \| Operating profit
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	40
Not Yet In Effect Condition \| Other
Commitments and Contingencies Disclosure [Line Items]
Maximum Potential Amount of Future Fundings	2
Accrued Expenses and Other
Commitments and Contingencies Disclosure [Line Items]
Recorded Liability for Guarantees	3
Other noncurrent liabilities
Commitments and Contingencies Disclosure [Line Items]
Recorded Liability for Guarantees	$ 127
Minimum
Commitments and Contingencies Disclosure [Line Items]
Guarantee obligations, term	3 years
Maximum
Commitments and Contingencies Disclosure [Line Items]
Guarantee obligations, term	10 years

COMMITMENTS AND CONTINGENCIES - Commitments (Details) € in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) joint_venture	Dec. 31, 2017 EUR (€) joint_venture
Commitments and Contingencies Disclosure [Line Items]
Loan commitment	$ 26
Loan commitment funded in 2018	15
Loan commitment expected to be funded thereafter	10
Letters of credit outstanding	162
Surety bonds issued	$ 155
Investment in Joint Venture Partner's Remaining Interests
Commitments and Contingencies Disclosure [Line Items]
Number of acquisition interests in joint ventures \| joint_venture	2	2
Contingent acquisition period	4 years
Deposit for contingent joint venture	$ 20	€ 15
Remaining deposit for contingent joint venture	13	€ 11
Information Technology Hardware, Software, Accounting, Finance, and Maintenance Services
Commitments and Contingencies Disclosure [Line Items]
Purchase obligation	366
Purchase obligation, expected to fund commitments in 2018	188
Purchase obligation, expected to fund commitments in 2019	125
Purchase obligation, expected to fund commitments in 2020	49
Purchase obligation, thereafter	4
Commitments
Commitments and Contingencies Disclosure [Line Items]
Commitments, funding not expected	49
Investment for Non-controlling Interest in Joint Venture
Commitments and Contingencies Disclosure [Line Items]
Commitments, funding expected	25
Investment in Non-controlling Interest in Partnership
Commitments and Contingencies Disclosure [Line Items]
Commitments, funding expected	$ 10

LEASES - Future Minimum Lease Obligations (Details) - Leased Property $ in Millions	Dec. 31, 2017 USD ($)
Operating Leases
2018	$ 187
2019	187
2020	167
2021	143
2022	154
Thereafter	1,454
Total minimum lease payments where we are the primary obligor	2,292
Capital Leases
2018	13
2019	14
2020	14
2021	13
2022	14
Thereafter	178
Total minimum lease payments where we are the primary obligor	246
Less: Amount representing interest	75
Present value of minimum lease payments	$ 171

LEASES - Additional Information (Details)	12 Months Ended
LEASES - Additional Information (Details)	Dec. 31, 2017 renewal_option
Operating Leased Assets [Line Items]
Initial lease terms	20 years
Minimum
Operating Leased Assets [Line Items]
Number of lease renewal terms	1
Lease renewal terms	5 years
Maximum
Operating Leased Assets [Line Items]
Lease renewal terms	10 years

LEASES Composition of Rent Expense Associated with Operating Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Leases [Abstract]
Minimum rentals	$ 194	$ 150	$ 138
Additional rentals	85	67	65
Operating leases, rent expense, total	$ 279	$ 217	$ 203

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

The increases or decreases in lease payments that result from changes occurring after the inception of the lease in the factors (other than the passage of time) on which lease payments are based, except that any escalation of minimum lease payments relating to increases in construction or acquisition cost of the leased property or for increases in some measure of cost or value during the construction or preconstruction period, are excluded from contingent rentals. Contingent rentals also may include amounts for which the triggering events have not yet occurred or the specified targets for which have not yet been achieved (such as sales based percentage rent), but which events are considered probable of occurring or which specified targets are considered probable of being achieved.

+ References + Details

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES - Activity in Self-Insurance Reserves for Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Self-Insurance Reserve for Losses and Loss Adjustment Expenses [Roll Forward]
Balance at beginning of year	$ 522	$ 416
Less: Reinsurance recoverable	(3)	(3)	$ (3)
Net balance at beginning of year	519	413
Assumed in the Starwood Combination	0	91
Incurred related to:
Current year	163	140
Prior years	(46)	(20)
Total incurred	117	120
Paid related to:
Current year	(30)	(26)
Prior years	(74)	(79)
Total paid	(104)	(105)
Net balance at end of year	532	519
Add: Reinsurance recoverable	3	3	$ 3
Balance at end of year	535	522
Current portion classified in “Accrued expenses and other”	146	142
Noncurrent portion classified in “Other noncurrent liabilities”	$ 389	$ 380

SELF-INSURANCE RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Current year	$ 163	$ 140
Prior years	46	$ 20
Starwood Hotels & Resorts
Business Acquisition [Line Items]
Current year	$ 23

LONG-TERM DEBT - Detail on Long-term Debt Balances (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Credit Facility	$ 0	$ 0
Capital lease obligations	171	173
Long-term debt	8,238	8,506
Less: Current portion of long-term debt	(398)	(309)
Long-term debt, noncurrent	7,840	8,197
Commercial paper
Debt Instrument [Line Items]
Commercial paper	2,371	2,311
Other
Debt Instrument [Line Items]
Other	279	291
Series I Notes, interest rate of 6.4%, face amount of $293, matured June 15, 2017 (effective interest rate of 6.5%)
Debt Instrument [Line Items]
Senior Notes	$ 0	293
Series I Notes, interest rate of 6.4%, face amount of $293, matured June 15, 2017 (effective interest rate of 6.5%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	6.40%
Senior notes, face amount	$ 293
Senior notes, effective interest rate	6.50%
Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.4%)
Debt Instrument [Line Items]
Senior Notes	$ 598	597
Series K Notes, interest rate of 3.0%, face amount of $600, maturing March 1, 2019 (effective interest rate of 4.4%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	3.00%
Senior notes, face amount	$ 600
Senior notes, effective interest rate	4.40%
Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%)
Debt Instrument [Line Items]
Senior Notes	$ 348	348
Series L Notes, interest rate of 3.3%, face amount of $350, maturing September 15, 2022 (effective interest rate of 3.4%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	3.30%
Senior notes, face amount	$ 350
Senior notes, effective interest rate	3.40%
Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%)
Debt Instrument [Line Items]
Senior Notes	$ 348	347
Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020 (effective interest rate of 3.6%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	3.40%
Senior notes, face amount	$ 350
Senior notes, effective interest rate	3.60%
Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%)
Debt Instrument [Line Items]
Senior Notes	$ 397	396
Series N Notes, interest rate of 3.1%, face amount of $400, maturing October 15, 2021 (effective interest rate of 3.4%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	3.10%
Senior notes, face amount	$ 400
Senior notes, effective interest rate	3.40%
Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 (effective interest rate of 3.1%)
Debt Instrument [Line Items]
Senior Notes	$ 447	446
Series O Notes, interest rate of 2.9%, face amount of $450, maturing March 1, 2021 (effective interest rate of 3.1%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	2.90%
Senior notes, face amount	$ 450
Senior notes, effective interest rate	3.10%
Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%)
Debt Instrument [Line Items]
Senior Notes	$ 345	344
Series P Notes, interest rate of 3.8%, face amount of $350, maturing October 1, 2025 (effective interest rate of 4.0%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	3.80%
Senior notes, face amount	$ 350
Senior notes, effective interest rate	4.00%
Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 (effective interest rate of 2.5%)
Debt Instrument [Line Items]
Senior Notes	$ 744	742
Series Q Notes, interest rate of 2.3%, face amount of $750, maturing January 15, 2022 (effective interest rate of 2.5%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	2.30%
Senior notes, face amount	$ 750
Senior notes, effective interest rate	2.50%
Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%)
Debt Instrument [Line Items]
Senior Notes	$ 743	742
Series R Notes, interest rate of 3.1%, face amount of $750, maturing June 15, 2026 (effective interest rate of 3.3%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	3.10%
Senior notes, face amount	$ 750
Senior notes, effective interest rate	3.30%
Series S Notes, interest rate of 6.8%, face amount of $324, maturing May 15, 2018 (effective interest rate of 1.7%)
Debt Instrument [Line Items]
Senior Notes	$ 330	346
Series S Notes, interest rate of 6.8%, face amount of $324, maturing May 15, 2018 (effective interest rate of 1.7%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	6.80%
Senior notes, face amount	$ 324
Senior notes, effective interest rate	1.70%
Series T Notes, interest rate of 7.2%, face amount of $181, maturing December 1, 2019 (effective interest rate of 2.3%)
Debt Instrument [Line Items]
Senior Notes	$ 197	206
Series T Notes, interest rate of 7.2%, face amount of $181, maturing December 1, 2019 (effective interest rate of 2.3%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	7.20%
Senior notes, face amount	$ 181
Senior notes, effective interest rate	2.30%
Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%)
Debt Instrument [Line Items]
Senior Notes	$ 291	291
Series U Notes, interest rate of 3.1%, face amount of $291, maturing February 15, 2023 (effective interest rate of 3.1%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	3.10%
Senior notes, face amount	$ 291
Senior notes, effective interest rate	3.10%
Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%)
Debt Instrument [Line Items]
Senior Notes	$ 337	340
Series V Notes, interest rate of 3.8%, face amount of $318, maturing March 15, 2025 (effective interest rate of 2.8%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	3.80%
Senior notes, face amount	$ 318
Senior notes, effective interest rate	2.80%
Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%)
Debt Instrument [Line Items]
Senior Notes	$ 292	$ 293
Series W Notes, interest rate of 4.5%, face amount of $278, maturing October 1, 2034 (effective interest rate of 4.1%) \| Senior Notes
Debt Instrument [Line Items]
Senior notes, interest rate	4.50%
Senior notes, face amount	$ 278
Senior notes, effective interest rate	4.10%

LONG-TERM DEBT - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Maximum aggregate borrowings under credit facility (up to)	$ 4,000,000,000
Cash paid for interest, net of amounts capitalized	$ 234,000,000	$ 165,000,000	$ 114,000,000

LONG-TERM DEBT - Future Principal Payments for Debt (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
2018	$ 398
2019	843
2020	365
2021	3,233
2022	1,114
Thereafter	2,285
Long-term debt	$ 8,238	$ 8,506

PENSION AND OTHER POSTRETIREMENT BENEFITS - Benefit Obligation, Fair Value of Plan Assets, Funded Status of Plan Assets, Projected Benefit Obligations and Accumulated Benefit Obligation (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2017
Change in Plan Assets
Beginning fair value of plan assets		$ 262
Ending fair value of plan assets	$ 262	294
Change in Benefit Obligation
Overfunded (underfunded) status	(3)	13
Postretirement Benefits
Change in Plan Assets
Beginning fair value of plan assets	0	0
Actual return on plan assets, net of expenses	0	0
Employer contribution	0	1
Effect of foreign exchange rates	0	0
Benefits paid	0	(1)
Ending fair value of plan assets	0	0
Change in Benefit Obligation
Beginning benefit obligations	16	15
Interest cost	0	0
Actuarial gain	(1)	0
Effect of foreign exchange rates	0	0
Benefits paid	0	(1)
Ending accumulated benefit obligations	15	14
Overfunded (underfunded) status	(15)	(14)
Domestic \| Pension Benefits
Change in Plan Assets
Beginning fair value of plan assets	0	0
Actual return on plan assets, net of expenses	0	0
Employer contribution	1	2
Effect of foreign exchange rates	0	0
Benefits paid	(1)	(2)
Ending fair value of plan assets	0	0
Change in Benefit Obligation
Beginning benefit obligations	23	21
Interest cost	0	1
Actuarial gain	(1)	1
Effect of foreign exchange rates	0	0
Benefits paid	(1)	(2)
Ending accumulated benefit obligations	21	21
Overfunded (underfunded) status	(21)	(21)
Foreign \| Pension Benefits
Change in Plan Assets
Beginning fair value of plan assets	278	262
Actual return on plan assets, net of expenses	(10)	29
Employer contribution	2	2
Effect of foreign exchange rates	(6)	10
Benefits paid	(2)	(9)
Ending fair value of plan assets	262	294
Change in Benefit Obligation
Beginning benefit obligations	251	229
Interest cost	2	8
Actuarial gain	(17)	10
Effect of foreign exchange rates	(5)	8
Benefits paid	(2)	(9)
Ending accumulated benefit obligations	229	246
Overfunded (underfunded) status	$ 33	$ 48

PENSION AND OTHER POSTRETIREMENT BENEFITS - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Expected return on plan assets, measurement period	10 years
Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Target asset allocation	31.00%
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Target asset allocation	31.00%
Other
Defined Benefit Plan Disclosure [Line Items]
Target asset allocation	38.00%

PENSION AND OTHER POSTRETIREMENT BENEFITS - Classification of Overfunded and (Underfund) Amounts in Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Overfunded (underfunded) status	$ 13	$ (3)
Other noncurrent assets
Defined Benefit Plan Disclosure [Line Items]
Overfunded (underfunded) status	56	40
Accrued expenses and other
Defined Benefit Plan Disclosure [Line Items]
Overfunded (underfunded) status	(3)	(3)
Other noncurrent liabilities
Defined Benefit Plan Disclosure [Line Items]
Overfunded (underfunded) status	$ (40)	$ (40)

PENSION AND OTHER POSTRETIREMENT BENEFITS - Benefit Obligations for Pension Plans with Accumulated Benefit Obligations That Exceed Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Domestic
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	$ 21	$ 21
Accumulated benefit obligation	21	21
Fair value of plan assets	0	0
Foreign
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	8	7
Accumulated benefit obligation	7	7
Fair value of plan assets	$ 0	$ 0

PENSION AND OTHER POSTRETIREMENT BENEFITS - Assumptions Used (Details)	Dec. 31, 2017	Dec. 31, 2016
Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.50%	3.74%
Domestic \| Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.50%	3.75%
Foreign \| Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.30%	3.54%
Rate of compensation increase	3.02%	3.02%

PENSION AND OTHER POSTRETIREMENT BENEFITS - Fair Value Hierarchy of the Plan Assets Measured at Fair Value Value on a Recurring Basis (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Plan assets	$ 294	$ 262
Mutual funds
Defined Benefit Plan Disclosure [Line Items]
Plan assets	86	79
Collective trusts
Defined Benefit Plan Disclosure [Line Items]
Plan assets	102	94
Equity index trusts
Defined Benefit Plan Disclosure [Line Items]
Plan assets	94	77
Money markets
Defined Benefit Plan Disclosure [Line Items]
Plan assets	10	10
Bond index funds
Defined Benefit Plan Disclosure [Line Items]
Plan assets	2	2
Level 1
Defined Benefit Plan Disclosure [Line Items]
Plan assets	181	157
Level 1 \| Mutual funds
Defined Benefit Plan Disclosure [Line Items]
Plan assets	86	79
Level 1 \| Collective trusts
Defined Benefit Plan Disclosure [Line Items]
Plan assets	0	0
Level 1 \| Equity index trusts
Defined Benefit Plan Disclosure [Line Items]
Plan assets	94	77
Level 1 \| Money markets
Defined Benefit Plan Disclosure [Line Items]
Plan assets	1	1
Level 1 \| Bond index funds
Defined Benefit Plan Disclosure [Line Items]
Plan assets	0	0
Level 2
Defined Benefit Plan Disclosure [Line Items]
Plan assets	12	12
Level 2 \| Mutual funds
Defined Benefit Plan Disclosure [Line Items]
Plan assets	0	0
Level 2 \| Collective trusts
Defined Benefit Plan Disclosure [Line Items]
Plan assets	1	1
Level 2 \| Equity index trusts
Defined Benefit Plan Disclosure [Line Items]
Plan assets	0	0
Level 2 \| Money markets
Defined Benefit Plan Disclosure [Line Items]
Plan assets	9	9
Level 2 \| Bond index funds
Defined Benefit Plan Disclosure [Line Items]
Plan assets	2	2
Level 3
Defined Benefit Plan Disclosure [Line Items]
Plan assets	101	93
Level 3 \| Mutual funds
Defined Benefit Plan Disclosure [Line Items]
Plan assets	0	0
Level 3 \| Collective trusts
Defined Benefit Plan Disclosure [Line Items]
Plan assets	101	93
Level 3 \| Equity index trusts
Defined Benefit Plan Disclosure [Line Items]
Plan assets	0	0
Level 3 \| Money markets
Defined Benefit Plan Disclosure [Line Items]
Plan assets	0	0
Level 3 \| Bond index funds
Defined Benefit Plan Disclosure [Line Items]
Plan assets	$ 0	$ 0

PENSION AND OTHER POSTRETIREMENT BENEFITS - Anticipated Pension and Postretirement Benefit Plan Payments (Details) $ in Millions	Dec. 31, 2017 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2018	$ 20
2019	13
2020	13
2021	14
2022	14
2023-2027	71
Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
2018	1
2019	1
2020	1
2021	1
2022	1
2023-2027	5
Domestic \| Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
2018	2
2019	2
2020	2
2021	2
2022	2
2023-2027	7
Foreign \| Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
2018	17
2019	10
2020	10
2021	11
2022	11
2023-2027	$ 59

INTANGIBLE ASSETS AND GOODWILL - Composition of Acquired Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (579)	$ (447)
Contract acquisition costs and other, net	2,951	2,829
Acquired Indefinite-lived Intangible Assets [Line Items]
Total Intangible Assets	8,805	9,270
Indefinite-lived Intangible Brand Assets
Acquired Indefinite-lived Intangible Assets [Line Items]
Brands	5,854	6,441
Contract acquisition costs and other
Acquired Finite-Lived Intangible Assets [Line Items]
Contract acquisition costs and other	$ 3,530	$ 3,276

INTANGIBLE ASSETS AND GOODWILL - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets	$ 185	$ 87	$ 65
Expected aggregate future amortization expense of intangible assets for next five years	$ 180
Minimum
Finite-Lived Intangible Assets [Line Items]
Range of amortization life of intangible assets	15 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Range of amortization life of intangible assets	30 years

INTANGIBLE ASSETS AND GOODWILL - Carrying Amount of Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 7,652
Adjustments	1,418
Foreign currency translation	191
Goodwill, ending balance	9,261
Accumulated impairment losses	(54)	$ (54)
Goodwill, Net	9,207	7,598
North American Full-Service
Goodwill [Roll Forward]
Goodwill, beginning balance	2,905
Adjustments	664
Foreign currency translation	16
Goodwill, ending balance	3,585
Accumulated impairment losses	0	0
Goodwill, Net	3,585	2,905
North American Limited-Service
Goodwill [Roll Forward]
Goodwill, beginning balance	1,558
Adjustments	255
Foreign currency translation	10
Goodwill, ending balance	1,823
Accumulated impairment losses	(54)	(54)
Goodwill, Net	1,769	1,504
Asia Pacific
Goodwill [Roll Forward]
Goodwill, beginning balance	1,572
Adjustments	276
Foreign currency translation	80
Goodwill, ending balance	1,928
Accumulated impairment losses	0	0
Goodwill, Net	1,928	1,572
Other International
Goodwill [Roll Forward]
Goodwill, beginning balance	1,617
Adjustments	223
Foreign currency translation	85
Goodwill, ending balance	1,925
Accumulated impairment losses	0	0
Goodwill, Net	$ 1,925	$ 1,617

PROPERTY AND EQUIPMENT - Composition of our Property and Equipment Balances (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,890	$ 3,320
Accumulated depreciation	(1,097)	(985)
Property and equipment, net	1,793	2,335
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	601	654
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,052	1,352
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,121	1,159
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 116	$ 155

PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 231	$ 157	$ 132
Property and equipment, net	1,793	2,335
International Operations
Property, Plant and Equipment [Line Items]
Property and equipment, net	705	1,000
Reimbursed Costs
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 125	$ 76	$ 58
Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	40 years

NOTES RECEIVABLE - Composition of our Notes Receivable Balances (Net of Reserves and Unamortized Discounts) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Senior, mezzanine, and other loans	$ 149	$ 248
Less: Current portion	(7)	(3)
Notes receivable, noncurrent	$ 142	$ 245

NOTES RECEIVABLE - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Notes receivable, unamortized discounts	$ 19	$ 22
Investment in impaired loans	95	74
Allowance for credit losses	72	57
Investment in impaired loans with no related allowance for credit losses	23	17
Average investment in impaired loans	$ 84	$ 73	$ 67

NOTES RECEIVABLE - Notes Receivable Expected Future Principal Payments (Net of Reserves and Unamortized Discounts and Interest Rates) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
2018	$ 7
2019	35
2020	14
2021	23
2022	5
Thereafter	65
Senior, mezzanine, and other loans	$ 149	$ 248
Weighted average interest rate at year-end 2017	5.40%
Range of stated interest rates at year-end 2017, minimum	0.00%
Range of stated interest rates at year-end 2017, maximum	18.00%

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Values and Fair Values of Non-Current Financial Assets and Liabilities (Details) - USD ($)
$ in Millions

Dec. 31, 2017

Dec. 31, 2016

Senior, mezzanine, and other loans

$ 142

$ 245

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

^[1]

(2,887)

(1,744)

Carrying Amount

Senior, mezzanine, and other loans

142

245

Total noncurrent financial assets

142

245

Senior Notes

(5,087)

(5,438)

Commercial paper

(2,371)

(2,311)

Other long-term debt

(217)

(280)

Total noncurrent financial liabilities

(178)

(59)

(7,853)

(8,088)

Fair Value

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Senior, mezzanine, and other loans

130

231

Total noncurrent financial assets

130

231

Senior Notes

(5,126)

(5,394)

Commercial paper

(2,371)

(2,311)

Other long-term debt

(221)

(284)

Total noncurrent financial liabilities

(178)

(59)

$ (7,896)

$ (8,048)

[1]	See Footnote 19 “Related Party Transactions” for disclosure of related party amounts.

ACCUMULATED OTHER COMPREHENSIVE LOSS - Accumulated Other Comprehensive Income Activity (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
AOCI Attributable to Parent [Roll forward] [Abstract]
Beginning balance	$ 5,357	$ (3,590)	$ (2,200)
Other comprehensive income (loss) before reclassifications	469	(303)	(120)
Amounts reclassified from accumulated other comprehensive loss	11	2	(6)
Total other comprehensive income (loss), net of tax	480	(301)	(126)
Ending balance	3,731	5,357	(3,590)
Intra-entity foreign currency long-term-investment gains	(147)	69	48
Foreign Currency Translation Adjustments
AOCI Attributable to Parent [Roll forward] [Abstract]
Beginning balance	(503)	(192)	(72)
Other comprehensive income (loss) before reclassifications	478	(311)	(123)
Amounts reclassified from accumulated other comprehensive loss	(2)	0	(3)
Total other comprehensive income (loss), net of tax	480	(311)	(120)
Ending balance	(23)	(503)	(192)
Derivative Instrument Adjustments
AOCI Attributable to Parent [Roll forward] [Abstract]
Beginning balance	(5)	(8)	(9)
Other comprehensive income (loss) before reclassifications	(14)	1	10
Amounts reclassified from accumulated other comprehensive loss	9	2	(9)
Total other comprehensive income (loss), net of tax	(5)	3	1
Ending balance	(10)	(5)	(8)
Available-For-Sale Securities Unrealized Adjustments
AOCI Attributable to Parent [Roll forward] [Abstract]
Beginning balance	6	4	11
Other comprehensive income (loss) before reclassifications	(2)	2	(7)
Amounts reclassified from accumulated other comprehensive loss	0	0	0
Total other comprehensive income (loss), net of tax	(2)	2	(7)
Ending balance	4	6	4
Pension and Postretirement Adjustments
AOCI Attributable to Parent [Roll forward] [Abstract]
Beginning balance	5	0	0
Other comprehensive income (loss) before reclassifications	7	5	0
Amounts reclassified from accumulated other comprehensive loss	0	0	0
Total other comprehensive income (loss), net of tax	7	5	0
Ending balance	12	5	0
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent [Roll forward] [Abstract]
Beginning balance	(497)	(196)	(70)
Total other comprehensive income (loss), net of tax	480	(301)	(126)
Ending balance	$ (17)	$ (497)	$ (196)

BUSINESS SEGMENTS - Segment Revenues (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 5,875	$ 5,663	$ 5,795	$ 5,561	$ 5,456	$ 3,942	$ 3,902	$ 3,772	$ 22,894	$ 17,072	$ 14,486
Total segment \| International Operations
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues									4,840	3,181	2,761
Total segment \| North American Full-Service
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues									14,300	10,376	8,825
Total segment \| North American Limited-Service
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues									4,002	3,561	3,193
Total segment \| Asia Pacific
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues									1,344	761	516
Total segment \| Other International
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues									2,658	1,875	1,684
Unallocated corporate
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues									$ 590	$ 499	$ 268

BUSINESS SEGMENTS - Segment Profits (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits	$ 570	$ 632	$ 620	$ 537	$ 441	$ 171	$ 389	$ 367	$ 2,359	$ 1,368	$ 1,350
Interest expense, net of interest income									(250)	(199)	(138)
Income taxes									(1,464)	(404)	(396)
Net income	$ 201	$ 392	$ 414	$ 365	$ 244	$ 70	$ 247	$ 219	1,372	780	859
Total segment \| International Operations
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									852	462	329
Total segment \| Asia Pacific
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									345
Total segment \| Europe
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									212
Total segment \| Caribbean and Latin America
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									111
Total segment \| Middle East And Africa
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									63
Total segment \| Other Locations
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									121
Total segment \| North American Full-Service
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									1,182	777	561
Total segment \| North American Limited-Service
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									816	698	651
Total segment \| Asia Pacific
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									345	176	98
Total segment \| Other International
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									386	231	194
Unallocated corporate
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segments profits									$ 357	$ (499)	$ (111)

BUSINESS SEGMENTS - Depreciation and Amortization (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Total segment | North American Full-Service

^[1]

$ 290

$ 168

$ 139

Total segment | North American Limited-Service

111

Total segment | Asia Pacific

Total segment | Other International

Unallocated corporate

Incentive management fees

$ 30

$ 21

$ 23

[1]	See Footnote 19 “Related Party Transactions” for disclosure of related party amounts.

BUSINESS SEGMENTS - Capital Expenditures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Capital expenditures	$ 240	$ 199	$ 305
Total segment \| North American Full-Service
Segment Reporting Information [Line Items]
Capital expenditures	21	35	120
Total segment \| North American Limited-Service
Segment Reporting Information [Line Items]
Capital expenditures	10	7	7
Total segment \| Asia Pacific
Segment Reporting Information [Line Items]
Capital expenditures	12	1	11
Total segment \| Other International
Segment Reporting Information [Line Items]
Capital expenditures	42	38	75
Unallocated corporate
Segment Reporting Information [Line Items]
Capital expenditures	$ 155	$ 118	$ 92

RELATED PARTY TRANSACTIONS - Financial Data Resulting from Transactions with Related Parties, Income Statement Data (Detail) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Base management fees

^[1]

$ 1,102

$ 806

$ 698

^[1]

607

425

319

Owned, leased, and other revenue

^[1]

1,802

1,126

855

Cost reimbursements

^[1]

17,765

13,546

11,630

Total revenue

$ 5,875

$ 5,663

$ 5,795

$ 5,561

$ 5,456

$ 3,942

$ 3,902

$ 3,772

22,894

17,072

14,486

Reimbursed costs

^[1]

(17,765)

(13,546)

(11,630)

General, administrative, and other

^[1]

(290)

(168)

(139)

^[1]

(894)

(704)

(634)

Gains and other income, net

^[1]

688

Interest income

^[1]

Related Party Transactions

Base management fees

Incentive management fees

Owned, leased, and other revenue

Cost reimbursements

360

193

197

Total revenue

405

221

216

Reimbursed costs

(360)

(193)

(197)

General, administrative, and other

(5)

(2)

(1)

Gains and other income, net

658

Interest income

Equity in earnings

$ 39

$ 10

$ 16

[1]	See Footnote 19 “Related Party Transactions” for disclosure of related party amounts.

RELATED PARTY TRANSACTIONS - Financial Data Resulting from Transactions with Related Parties, Balance Sheet Data (Detail) - USD ($)
$ in Millions

Dec. 31, 2017

Dec. 31, 2016

Current assets

Accounts and notes receivable, net

^[1]

$ 1,991

$ 1,695

Contract acquisition costs and other

2,951

2,829

Equity method investments

^[1]

740

728

Deferred tax assets

116

Other noncurrent assets

^[1]

421

477

Current liabilities

Accrued expenses and other

^[1]

(1,541)

(1,111)

Deferred tax liabilities

^[1]

(604)

(1,020)

Related Party Transactions

^[1]

(2,887)

(1,744)

Current assets

Accounts and notes receivable, net

Prepaid expenses and other

Contract acquisition costs and other

Equity method investments

734

723

Deferred tax assets

Other noncurrent assets

Current liabilities

Accounts payable

(11)

(4)

Accrued expenses and other

(18)

(22)

Deferred tax liabilities

(41)

(56)