Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

c9e510eefadb4dd4070d224330e3a373130576c67497340d4c6bf40e50cd4cd0

U.S. & Canada

- Gross Fee Revenues

- Contract Investment Amortization

- Net Fee Revenues

- Owned, Leased, and Other Revenue

- Cost Reimbursement Revenue

North American Full-Service Segment

North American Limited-Service Segment

International

Other Unallocated Corporate

Unallocated Corporate and Other

Gross Fee Revenues

Owned, Leased, and Other Revenue

Cost Reimbursement Revenue

Total Revenue

f8ebd8c1f223c5cbd78a93dc67a3aa83d7c7b031c1b3010fc8dfe2e6e9184265

3bbc71f0e1c8a1404570b91a3662aa974489dfd8ac06195182668abf048f372f

3fa1a63e0a6b17a3514ed5c69375a42179562efdbc93b178da217c237bbe1845

Adjustments for Non-Cash Items (USD, Millions)

Stock-Based Compensation (USD, Millions)

Changes in Working Capital (USD, Millions)

Capital Expenditures (USD, Millions)

Proceeds from Debt (USD, Millions)

Repayments of Debt (USD, Millions)

Share Repurchases (USD, Millions)

Dividend Payments (USD, Millions)

Net Change in Cash (USD, Millions)

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Base management fees (USD, millions)

Franchise fees (USD, millions)

Incentive management fees (USD, millions)

Gross fee revenues (USD, millions)

Contract investment amortization (USD, millions)

Net fee revenues (USD, millions)

Owned, leased, and other revenue (USD, millions)

Cost reimbursement revenue (USD, millions)

Total Revenues (USD, millions)

Owned, leased, and other - direct (USD, millions)

Depreciation, amortization, and other (Operating Costs) (USD, millions)

General, administrative, and other (Operating Costs) (USD, millions)

Restructuring and merger-related charges (Operating Costs) (USD, millions)

Reimbursed expenses (USD, millions)

Total Operating Costs and Expenses (USD, millions)

OPERATING INCOME (USD, millions)

Gains and other income, net (USD, millions)

Interest expense (USD, millions)

Interest income (USD, millions)

Equity in earnings (USD, millions)

INCOME BEFORE INCOME TAXES (USD, millions)

Provision for income taxes (USD, millions)

NET INCOME (USD, millions)

Earnings per share – basic (USD)

Earnings per share – diluted (USD)

Merger-related charges and other (USD, millions)

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Cash and equivalents (USD, millions)

Accounts and notes receivable, net (USD, millions)

Prepaid expenses and other (USD, millions)

Current assets (USD, millions)

Property and equipment, net (USD, millions)

Brands (USD, millions)

Contract acquisition costs and other (USD, millions)

Goodwill (USD, millions)

Intangible assets (USD, millions)

Equity method investments (USD, millions)

Notes receivable, net (USD, millions)

Deferred tax assets (USD, millions)

Operating lease assets (USD, millions)

Other noncurrent assets (USD, millions)

Assets (USD, millions)

Current portion of long-term debt (USD, millions)

Accounts payable (USD, millions)

Accrued payroll and benefits (USD, millions)

Liability for guest loyalty program, current (USD, millions)

Accrued expenses and other (USD, millions)

Current liabilities (USD, millions)

Long-term debt (USD, millions)

Liability for guest loyalty program, non-current (USD, millions)

Deferred tax liabilities (USD, millions)

Deferred revenue (USD, millions)

Operating lease liabilities (USD, millions)

Other noncurrent liabilities (USD, millions)

Class A Common Stock (USD, millions)

Additional paid-in-capital (USD, millions)

Retained earnings (USD, millions)

Treasury stock, at cost (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Stockholders' deficit (USD, millions)

Liabilities and Stockholders' deficit (USD, millions)

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Net income (USD, millions)

Depreciation, amortization, and other (USD, millions)

Stock-based compensation (USD, millions)

Income taxes (USD, millions)

Contract acquisition costs (USD, millions)

Restructuring and merger-related charges (USD, millions)

Working capital changes (USD, millions)

Other, Operating Activities (USD, millions)

Net cash provided by operating activities (USD, millions)

Capital and technology expenditures (USD, millions)

Asset acquisition (USD, millions)

Dispositions (USD, millions)

Loan advances (USD, millions)

Loan collections (USD, millions)

Other, Investing Activities (USD, millions)

Net cash used in investing activities (USD, millions)

Commercial paper/Credit Facility, net (USD, millions)

Issuance of long-term debt (USD, millions)

Repayment of long-term debt (USD, millions)

Issuance of Class A Common Stock (USD, millions)

Dividends paid (USD, millions)

Purchase of treasury stock (USD, millions)

Stock-based compensation withholding taxes (USD, millions)

Other, Financing Activities (USD, millions)

Net cash used in financing activities (USD, millions)

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (USD, millions)

Liability for guest loyalty program (USD, millions)

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period (USD, millions)

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period (USD, millions)

7ae860a83e20c3b7e62f3ac2cec5cfc5b00f667388519bd395322305a1052b22

The **operating cash flow dropped sharply in Q4 2024 by $421 million** primarily due to two factors. Firstly, there was a **$300 million cash outflow** from the settlement of a guarantee liability related to the purchase of the Sheraton Grand Chicago. Secondly, the decline was exacerbated by the end of benefits from **reduced cash received from U.S. co-branded credit card issuers**, which had positively impacted cash flows in 2023.  **[0001628280-25-004818_mar-20241231.htm:48]** 

Why did Operating Cash Flow drop so sharply in Q4 2024?

What drove Free Cash Flow into negative territory in Q4 2024?

The significant increase in **FY 2024 Capital Expenditures** was driven by several factors. **Approximately $200 million** of the spending was allocated toward **Sheraton Grand Chicago Capitalized Assets**. In addition, there was substantially higher spending on Marriott's **worldwide technology systems transformation**, which is expected to be reimbursed over time. Finally, the company undertook **larger-than-usual renovations and maintenance** across its owned and leased properties, including investments in **Barbados properties** and others, which are not expected to persist at this level long-term.  **[0001628280-25-004818_mar-20241231.htm:48]** **[0001628280-24-044884_mar-20240930.htm:28]** **[MAR_3415289_6]** 

What factors contributed to the significant increase in Capital Expenditures in FY 2024?

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Marriott International’s Earnings per Share in Q4 2024 fell significantly because several factors led to lower net income. **Key reasons** include a **46% decline in net income** (from **$848 million to $455 million**) driven by the absence of prior-year tax benefits, notably a **$228 million benefit from international intellectual property transactions** and a **$223 million release of a tax valuation allowance**. Additionally, **interest expenses increased** from **$153 million in Q4 2023 to $180 million in Q4 2024**, and the provision for income taxes turned from a **benefit of $267 million to an expense of $143 million**. There was also a **slight drop in revenue from owned, leased, and other operations**, partly because a **$63 million termination fee** recorded in Q4 2023 was not present in Q4 2024.  **[20250211PH15630:1]** **[0001628280-25-004772_mar-2024q4xearningsrelease.htm:6]** 

Why was Earnings per share so low in Q4 2024?

The decline in net income in Q4 2024 was driven by several factors. **Tax expense** played a major role, as Q4 2024 recorded a **$143 million tax expense** compared to a **$267 million tax benefit** in Q4 2023. This adverse change was partly due to the loss of **$228 million in tax benefits** from international intellectual property transactions and the absence of a **$223 million tax valuation allowance release** that occurred in Q4 2023.  **[20250211PH15630:1]** **[0001628280-25-004772_mar-2024q4xearningsrelease.htm:1]**  Additionally, there was a decline in **owned, leased, and other revenue**—which fell to **$100 million** from **$151 million**, largely due to a **$63 million termination fee** from a prior development project—and an increase in **interest expense** from **$153 million** to **$180 million** resulting from higher debt balances.  **[20250211PH15630:1]** **[0001628280-25-004772_mar-2024q4xearningsrelease.htm:1]** 

What drove the decline in net income in Q4 2024?

The lower operating income in Q3 2024 was driven by several factors. **General, Administrative and Other Expenses** increased from **$239 million** in Q3 2023 to **$276 million** in Q3 2024, largely due to a **$19 million operating guarantee reserve** for a U.S. hotel and an **$11 million litigation reserve**. Additionally, **interest expenses** rose from **$146 million** to **$179 million** because of higher debt balances. Finally, **gains and other income, net** dropped significantly from **$28 million** in Q3 2023 to **$7 million** in Q3 2024, mainly due to a gain recorded in the previous year on the sale of a hotel in the CALA region.  **[0001628280-24-044831_mar-2024q3xearningsreleasea.htm:8]** **[20241104PH46566:1]** 

What factors contributed to the lower operating income in Q3 2024?

Overall, despite higher revenues, the operating income declined in FY 2024 because **operating costs and expenses rose significantly**. Notably, **general, administrative, and other expenses** increased by **6%**, and **restructuring and merger-related charges** saw a **28% increase**, boosting overall costs. Additionally, there was a **slight decline in revenue** from owned, leased, and other operations, an increase in **interest expense by 23%**, and a marked rise in the **provision for income taxes** due to the absence of key tax benefits that had been recorded in FY 2023.  **[0001628280-25-004772_mar-2024q4xearningsrelease.htm:7]** **[0001628280-25-004818_mar-20241231.htm:59]** 

Why did overall operating income decline in FY 2024 despite higher revenues?

The **lower full-year EPS in FY 2024** was mainly due to a **23% decline in net income**, which dropped from **$3,083 million in FY 2023** to **$2,375 million in FY 2024**. This decrease was driven by a **significant increase in the provision for income taxes**—rising from **$295 million to $776 million**—largely because the favorable tax benefits recorded in FY 2023 (including a **$228 million tax benefit and a **$223 million tax valuation allowance release**) were absent in FY 2024. Additionally, the **interest expense increased by 23%** (from **$565 million to $695 million**) due to higher debt levels. Although there were substantial **share repurchases** that reduced the number of outstanding shares from **301.5 million to 284.2 million**, this reduction only partially offset the decline in net income, resulting in a lower basic EPS of **$8.36 in FY 2024** compared to **$10.23 in FY 2023**.  **[0001628280-25-004818_mar-20241231.htm:59]** **[20250211PH15630:1]** **[0001628280-25-004818_mar-20241231.htm:77]** **[0001628280-25-004818_mar-20241231.htm:62]** 

What factors led to the lower full-year EPS in FY 2024?

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The sharp decline in **cash and cash equivalents** in Q2 2024 was mainly driven by increased net cash used in **investing** and **financing activities**. Although operating activities generated a slightly higher net cash flow compared to the previous period, the company’s use of **$225 million** for investing activities and **$1,322 million** for financing activities (which includes debt repayments, dividends, and share repurchases) more than offset the operating cash generation, leading to the overall decline.  **[0001628280-24-033679_mar-20240630.htm:3]** 

What caused cash and cash equivalents to decline sharply in Q2 2024?

The nearly doubling of the current portion of long-term debt in Q4 2024 is primarily due to the maturities of certain Senior Notes that shifted into the current liability category. Specifically, **Marriott International’s Series P Notes ($350 million, maturing on October 1, 2025), Series V Notes ($318 million, maturing on March 15, 2025), and Series EE Notes ($600 million, maturing on May 1, 2025)** are now approaching maturity, causing a significant increase from **$553 million** in Q4 2023 to **$1,309 million** in Q4 2024.  **[0001628280-25-004818_mar-20241231.htm:60]** **[0001628280-25-004818_mar-20241231.htm:83]** 

Why did the current portion of long-term debt nearly double in Q4 2024?

The sharp increase in long-term debt in Q4 2024 was primarily driven by the **issuance of new senior notes**—including **Series PP and Series QQ Notes** totaling **$1,480 million** and **Series NN and Series OO Notes** totaling **$1,468 million**—which added significant debt. This increase was partially offset by the **maturity of existing Series CC Notes** amounting to **$550 million**, but overall, the net impact was an increase of **$2,574 million** in long-term debt for the period.  **[0001628280-25-004818_mar-20241231.htm:83]** **[0001628280-25-004818_mar-20241231.htm:49]** 

What factors drove the sharp increase in long-term debt in Q4 2024?

The notable increase in total assets in Q3 2024 was primarily driven by an **increase in current assets**—with **cash and equivalents rising by $56 million** and **accounts and notes receivable increasing by $208 million**—as well as by **growth in noncurrent assets**—particularly **contract acquisition costs and other assets rising by $312 million** and a slight increase in **goodwill by $4 million**. These increases were partially offset by reductions in **deferred tax assets by $44 million** and **operating lease assets by $50 million**.  **[0001628280-24-044884_mar-20240930.htm:3]** 

What contributed to the notable rise in total assets in Q3 2024?

aa86e5edb720288a3e4c696efaf76b26d1360afba666727e91cdb92463724d90

Marriott International Inc (MAR)

Financials