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’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?

7dae9b0289020fb934a8543164f67f1461ddb10ec4ce459d9cd3dada7fa5d376

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?

d96514db88af4d9a285428f3983912f116a1db7c29f0a5418725fec897fc11fb

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Earnings per share – diluted (USD)

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

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EPS - Diluted [USD, Per Share]

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MARRIOTT INTERNATIONAL INC /MD/ (MAR)

Financials