10-Q 1 hlt-20220630.htm 10-Q hlt-20220630
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number 001-36243
Hilton Worldwide Holdings Inc.
(Exact name of registrant as specified in its charter)
Delaware
27-4384691
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
7930 Jones Branch Drive, Suite 1100, McLean, VA
22102
(Address of Principal Executive Offices)(Zip Code)

Registrant’s telephone number, including area code: (703) 883-1000
N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareHLTNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:
Large accelerated filer
Accelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. ☐    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

The number of shares outstanding of the registrant's common stock, par value $0.01 per share, as of July 20, 2022 was 274,287,391.



HILTON WORLDWIDE HOLDINGS INC.
FORM 10-Q TABLE OF CONTENTS

1


PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

HILTON WORLDWIDE HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share data)

June 30,December 31,
20222021
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents
$1,175 $1,427 
Restricted cash and cash equivalents
79 85 
Accounts receivable, net of allowance for credit losses of $122 and $126
1,289 1,068 
Prepaid expenses128 89 
Other
169 202 
Total current assets (variable interest entities $29 and $30)
2,840 2,871 
Intangibles and Other Assets:
Goodwill
5,030 5,071 
Brands
4,847 4,883 
Management and franchise contracts, net873 758 
Other intangible assets, net167 194 
Operating lease right-of-use assets
610 694 
Property and equipment, net
271 305 
Deferred income tax assets
213 213 
Other
531 452 
Total intangibles and other assets (variable interest entities $152 and $184)
12,542 12,570 
TOTAL ASSETS$15,382 $15,441 
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts payable, accrued expenses and other
$1,647 $1,568 
Current maturities of long-term debt
41 54 
Current portion of deferred revenues
260 350 
Current portion of liability for guest loyalty program1,247 1,047 
Total current liabilities (variable interest entities $40 and $50)
3,195 3,019 
Long-term debt8,702 8,712 
Operating lease liabilities753 870 
Deferred revenues
855 896 
Deferred income tax liabilities727 700 
Liability for guest loyalty program1,252 1,317 
Other687 746 
Total liabilities (variable interest entities $185 and $212)
16,171 16,260 
Commitments and contingencies see Note 12
Equity (Deficit):
Preferred stock, $0.01 par value; 3,000,000,000 authorized shares, none issued or outstanding as of June 30, 2022 and December 31, 2021
  
Common stock, $0.01 par value; 10,000,000,000 authorized shares, 332,933,654 issued and 275,510,784 outstanding as of June 30, 2022 and 332,011,359 issued and 279,091,009 outstanding as of December 31, 2021
3 3 
Treasury stock, at cost; 57,422,870 shares as of June 30, 2022 and 52,920,350 shares as of December 31, 2021
(5,048)(4,443)
Additional paid-in capital
10,753 10,720 
Accumulated deficit(5,783)(6,322)
Accumulated other comprehensive loss
(714)(779)
Total Hilton stockholders' deficit
(789)(821)
Noncontrolling interests
 2 
Total deficit(789)(819)
TOTAL LIABILITIES AND EQUITY (DEFICIT)$15,382 $15,441 

See notes to condensed consolidated financial statements.
2


HILTON WORLDWIDE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)

Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Revenues
Franchise and licensing fees$545 $369 $958 $611 
Base and other management fees75 42 130 67 
Incentive management fees46 21 80 34 
Owned and leased hotels282 121 432 177 
Other revenues25 21 43 38 
973 574 1,643 927 
Other revenues from managed and franchised properties
1,267 755 2,318 1,276 
Total revenues2,240 1,329 3,961 2,203 
Expenses
Owned and leased hotels
257 142 442 252 
Depreciation and amortization40 46 84 97 
General and administrative103 98 194 195 
Other expenses11 9 22 19 
411 295 742 563 
Other expenses from managed and franchised properties
1,231 810 2,252 1,395 
Total expenses1,642 1,105 2,994 1,958 
Operating income598 224 967 245 
Interest expense(99)(101)(189)(204)
Gain (loss) on foreign currency transactions
8 (1)4 1 
Loss on debt extinguishment   (69)
Other non-operating income, net
6 5 22 10 
Income (loss) before income taxes513 127 804 (17)
Income tax benefit (expense)
(146)1 (226)36 
Net income367 128 578 19 
Net loss attributable to noncontrolling interests
1 2 2 3 
Net income attributable to Hilton stockholders$368 $130 $580 $22 
Earnings per share:
Basic$1.33 $0.47 $2.09 $0.08 
Diluted$1.32 $0.46 $2.07 $0.08 
Cash dividends declared per share$0.15 $ $0.15 $ 

See notes to condensed consolidated financial statements.
3


HILTON WORLDWIDE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in millions)
(unaudited)

Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
Net income$367 $128 $578 $19 
Other comprehensive income (loss), net of tax benefit (expense):
Currency translation adjustment, net of tax of $6, $1, $6 and $(2)
(23)8 (25)(21)
Pension liability adjustment, net of tax of $(1), $(1), $(1) and $(1)
2 2 3 4 
Cash flow hedge adjustment, net of tax of $(9), $(2), $(29) and $(4)
27 4 87 11 
Total other comprehensive income (loss)6 14 65 (6)
Comprehensive income373 142 643 13 
Comprehensive loss attributable to noncontrolling interests
1 2 2 3 
Comprehensive income attributable to Hilton stockholders
$374 $144 $645 $16 

See notes to condensed consolidated financial statements.
4


HILTON WORLDWIDE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)

Six Months Ended
June 30,
20222021
Operating Activities:
Net income$578 $19 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of contract acquisition costs18 14 
Depreciation and amortization expenses84 97 
Gain on foreign currency transactions(4)(1)
Share-based compensation expense84 92 
Deferred income taxes(3)(35)
Contract acquisition costs, net of refunds(41)(115)
Working capital changes and other(188)(371)
Net cash provided by (used in) operating activities528 (300)
Investing Activities:
Capital expenditures for property and equipment
(11)(9)
Issuance of other financing receivables(46) 
Capitalized software costs(25)(16)
Investments in unconsolidated affiliates(51) 
Other39 11 
Net cash used in investing activities(94)(14)
Financing Activities:
Borrowings18 1,500 
Repayment of debt(25)(3,218)
Debt issuance costs and redemption premium (76)
Dividends paid(41) 
Repurchases of common stock(586) 
Share-based compensation tax withholdings(56)(48)
Proceeds from share-based compensation16 24 
Settlements of interest rate swap with financing component(5) 
Net cash used in financing activities(679)(1,818)
Effect of exchange rate changes on cash, restricted cash and cash equivalents(13)(4)
Net decrease in cash, restricted cash and cash equivalents(258)(2,136)
Cash, restricted cash and cash equivalents, beginning of period1,512 3,263 
Cash, restricted cash and cash equivalents, end of period$1,254 $1,127 
Supplemental Disclosures:
Cash paid during the period:
Interest$183 $174 
Income taxes, net of refunds130 42 

See notes to condensed consolidated financial statements.
5


HILTON WORLDWIDE HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 1: Organization and Basis of Presentation

Organization

Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts, and licensing its intellectual property ("IP"), including brand names, trademarks and service marks. As of June 30, 2022, we managed, franchised, owned or leased 6,983 hotels and resorts, including timeshare properties, totaling 1,098,321 rooms in 122 countries and territories.

Basis of Presentation

The accompanying condensed consolidated financial statements for the three and six months ended June 30, 2022 and 2021 have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited. We have condensed or omitted certain disclosures normally included in annual financial statements presented in accordance with GAAP but that are not required for interim reporting purposes. Although we believe the disclosures made are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Additionally, interim results are not necessarily indicative of full year performance. In particular, the coronavirus ("COVID-19") pandemic (the "pandemic") had an adverse impact on our results for the three and six months ended June 30, 2022 and 2021, when compared to periods prior to the onset of the pandemic; however, our results experienced significant recovery during the three and six months ended June 30, 2022 when compared to the prior year periods. As such, these interim periods, as well as upcoming periods, are unlikely to be comparable to periods prior to the onset of the pandemic or to other periods affected by the pandemic, and are not indicative of future performance. Management has made estimates and judgments in light of these circumstances. In our opinion, the accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions have been eliminated in consolidation.

Note 2: Revenues from Contracts with Customers

Contract Liabilities

The following table summarizes the activity of our contract liabilities, which are classified as components of current and long-term deferred revenues, during the six months ended June 30, 2022:

(in millions)
Balance as of December 31, 2021
$1,166 
Cash received in advance and not recognized as revenue
212 
Revenue recognized(1)(2)
(241)
Other(3)
(85)
Balance as of June 30, 2022
$1,052 
____________
(1)Primarily related to Hilton Honors, our guest loyalty program, including co-branded credit card arrangements.
(2)Revenue recognized during the three months ended June 30, 2022 was $113 million. Revenue recognized during the three and six months ended June 30, 2022 included a net reduction in revenue of $13 million and $3 million, respectively, as a result of a change to the estimated breakage of Hilton Honors points for which point expirations have been temporarily suspended.
(3)Primarily represents changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues.

6


Hilton Honors Points Pre-Sale

In April 2020, we pre-sold Hilton Honors points to American Express for $1.0 billion in cash (the "Honors Points Pre-Sale") for their use of points in connection with Hilton Honors co-branded credit cards for promotions, rewards and other such incentive programs. Upon receipt of the cash in 2020, we recognized $636 million in deferred revenues and the remainder in liability for guest loyalty program. During the six months ended June 30, 2022, the remaining points sold in the Honors Points Pre-Sale were used by American Express. All deferred revenues related to points that were outstanding as of June 30, 2022 are included in our Hilton Honors unsatisfied performance obligation described below.

Performance Obligations

As of June 30, 2022, we had deferred revenues for unsatisfied performance obligations consisting of: (i) $363 million related to Hilton Honors that will be recognized as revenue over approximately the next two years; (ii) $33 million related to co-branded credit card arrangements; and (iii) $656 million related to application, initiation and other fees. These performance obligations are recognized as revenue as discussed in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Note 3: Consolidated Variable Interest Entities

As of June 30, 2022 and December 31, 2021, we consolidated two variable interest entities ("VIEs") that each lease a hotel property. We consolidated these VIEs since we are the primary beneficiary, having the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb losses and the right to receive benefits that could be significant to each of the VIEs individually. The assets of our consolidated VIEs are only available to settle the obligations of the respective entities, and the liabilities of the consolidated VIEs are non-recourse to us.

Our condensed consolidated balance sheets include the assets and liabilities of these entities, which primarily comprised the following:

June 30,December 31,
20222021
(in millions)
Cash and cash equivalents$21 $18 
Property and equipment, net47 60 
Deferred income tax assets52 62 
Other non-current assets52 62 
Accounts payable, accrued expenses and other15 15 
Long-term debt(1)
154 179 
Other long-term liabilities14 16 
____________
(1)Includes finance lease liabilities of $118 million and $153 million as of June 30, 2022 and December 31, 2021, respectively.

As of June 30, 2022, one of our consolidated VIEs had a revolving credit facility with a borrowing capacity of 2.0 billion Japanese yen ("JPY") (equivalent to $15 million), with no amounts drawn as of June 30, 2022 or December 31, 2021. As of June 30, 2022 and December 31, 2021, our other consolidated VIE had drawn 300 million JPY (equivalent to $2 million) and 500 million JPY (equivalent to $4 million), respectively, under a revolving credit facility which did not have any remaining borrowing capacity as of June 30, 2022, and, in July 2022, the outstanding balance was repaid in full. During the six months ended June 30, 2022, our consolidated VIEs borrowed an aggregate of 2.1 billion JPY (equivalent to $15 million as of June 30, 2022), with a weighted average interest rate of 0.9 percent as of June 30, 2022 and maturity dates in February 2029; all of these borrowings were included in long-term debt in our condensed consolidated balance sheet as of June 30, 2022.

7


Note 4: Finite-Lived Intangible Assets

Our finite-lived intangible assets consist of management and franchise contracts and other intangible assets. Management and franchise contracts, net were as follows:

June 30, 2022
Gross Carrying ValueAccumulated AmortizationNet
Carrying Value
(in millions)
Management contracts recorded at Merger(1)
$296 $(272)$24 
Contract acquisition costs
920 (186)734 
Development commissions and other
144 (29)115 
$1,360 $(487)$873 

December 31, 2021
Gross Carrying ValueAccumulated AmortizationNet
Carrying Value
(in millions)
Management contracts recorded at Merger(1)
$310 $(275)$35 
Contract acquisition costs
780 (170)610 
Development commissions and other
140 (27)113 
$1,230 $(472)$758 
____________
(1)Represents intangible assets that were initially recorded at fair value as part of the 2007 transaction whereby we became a wholly owned subsidiary of affiliates of Blackstone Inc. (the "Merger").

Amortization of our finite-lived intangible assets was as follows:

Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
(in millions)
Recognized in depreciation and amortization expenses(1)
$29 $33 $61 $71 
Recognized as a reduction of franchise and licensing fees and base and other management fees
10 7 18 14 
____________
(1)Includes amortization expense associated with assets that were initially recorded at fair value at the time of the Merger of $11 million and $12 million for the three months ended June 30, 2022 and 2021, respectively, and $23 million and $24 million for the six months ended June 30, 2022 and 2021, respectively.

8


Note 5: Debt

Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of June 30, 2022, were as follows:

June 30,December 31,
20222021
(in millions)
Senior secured term loan facility with a rate of 3.37%, due 2026
$2,619 $2,619 
Senior notes with a rate of 5.375%, due 2025(1)
500 500 
Senior notes with a rate of 4.875%, due 2027(1)
600 600 
Senior notes with a rate of 5.750%, due 2028(1)
500 500 
Senior notes with a rate of 3.750%, due 2029(1)
800 800 
Senior notes with a rate of 4.875%, due 2030(1)
1,000 1,000 
Senior notes with a rate of 4.000%, due 2031(1)
1,100 1,100 
Senior notes with a rate of 3.625%, due 2032(1)
1,500 1,500 
Finance lease liabilities with a weighted average rate of 5.83%, due 2022 to 2030
168 208 
Other debt of consolidated VIEs with a weighted average rate of 1.06%, due 2022 to 2029(2)
36 26 
8,823 8,853 
Less: unamortized deferred financing costs and discount(80)(87)
Less: current maturities of long-term debt(3)
(41)(54)
$8,702 $8,712 
____________
(1)These notes are collectively referred to as the Senior Notes and are jointly and severally guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than Hilton Domestic Operating Company Inc., an indirect wholly owned subsidiary of the Parent and the issuer of all of the series of Senior Notes.
(2)Refer to Note 3: "Consolidated Variable Interest Entities" for additional information on the debt of our consolidated VIEs.
(3)Represents current maturities of finance lease liabilities and the outstanding borrowings under the revolving credit facility of a consolidated VIE.

Our senior secured credit facilities consist of a $1.75 billion senior secured revolving credit facility (the "Revolving Credit Facility") and a senior secured term loan facility (the "Term Loan"). The obligations of our senior secured credit facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries. As of June 30, 2022, we had $60 million of letters of credit outstanding under the Revolving Credit Facility, resulting in an available borrowing capacity of $1,690 million.

Note 6: Fair Value Measurements

The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below:

June 30, 2022
Hierarchy Level
Carrying ValueLevel 1Level 2Level 3
(in millions)
Assets:
Cash equivalents$354 $— $354 $— 
Interest rate swap(1)
64 — 64 — 
Liabilities:
Long-term debt(2)
8,539 5,243 — 2,519 

9


December 31, 2021
Hierarchy Level
Carrying ValueLevel 1Level 2Level 3
(in millions)
Assets:
Cash equivalents$622 $— $622 $— 
Liabilities:
Long-term debt(2)
8,532 6,180 — 2,599 
Interest rate swaps(1)
41 — 41 — 
____________
(1)Interest rate swaps are included in other non-current assets or other long-term liabilities in our condensed consolidated balance sheets depending on their value to us as of the balance sheet date. During the six months ended June 30, 2022, one of the interest rate swaps that was outstanding as of December 31, 2021 matured. The remaining interest rate swap as of June 30, 2022 will mature in March 2026.
(2)The carrying values include the deduction for unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt of consolidated VIEs.

We measure our interest rate swaps at fair value, which was determined using a discounted cash flow analysis that reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves, as applicable.

The fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of June 30, 2022 and December 31, 2021.

Note 7: Income Taxes

At the end of each quarter, we estimate the effective income tax rate expected to be applied for the full year. The effective income tax rate is determined by the level and composition of income (loss) before income taxes, which is subject to federal, state, local and foreign income taxes.

As of December 31, 2021, we had entered into a tentative agreement with the Internal Revenue Service, subject to approval by the Joint Committee on Taxation, to settle our federal examination through the 2010 tax year. The settlement was approved by the Joint Committee on Taxation during the three months ended June 30, 2022. The assets and liabilities relating to the settlement were previously recognized as of December 31, 2021, and no adjustments were necessary as a result of the settlement approval.

Note 8: Share-Based Compensation

We recognized share-based compensation expense of $47 million and $53 million during the three months ended June 30, 2022 and 2021, respectively, and $84 million and $92 million during the six months ended June 30, 2022 and 2021, respectively, which included amounts reimbursed by hotel owners.

Our share-based compensation primarily consists of awards that we grant to eligible employees under the Hilton 2017 Omnibus Incentive Plan (the "2017 Plan") and includes time-vesting restricted stock units ("RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares"). As of June 30, 2022, unrecognized compensation costs for unvested awards under the 2017 Plan were approximately $181 million, which are expected to be recognized over a weighted-average period of 1.8 years on a straight-line basis.

RSUs

During the six months ended June 30, 2022, we granted 505,000 RSUs with a weighted average grant date fair value per share of $150.67, which vest in equal annual installments over two or three years from the date of grant.

Options

During the six months ended June 30, 2022, we granted 318,000 options with an exercise price per share of $150.67, which vest in equal annual installments over three years from the date of grant and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances.

10


The grant date fair value per share of the options granted during the six months ended June 30, 2022 was $51.15, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:

Expected volatility(1)
33.28 %
Dividend yield(2)
0.41 %
Risk-free rate(3)
1.93 %
Expected term (in years)(4)
6.0
____________
(1)Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of Hilton's stock price for a period that corresponds to the expected life of the option.
(2)Estimated based on the expectation, at the date of grant, of the resumption of a quarterly $0.15 per share dividend beginning in the second quarter of 2022, as well as our three-month average stock price.
(3)Based on the yields of U.S. Department of Treasury instruments with similar expected lives.
(4)Estimated using the midpoint of the vesting period and the contractual term of the options.

Performance Shares

During the six months ended June 30, 2022, we granted 216,000 performance shares with a grant date fair value per share of $150.67. We recognize compensation expense based on the total number of performance shares that are expected to vest as determined by the projected achievement of each of the performance measures, which are estimated each reporting period and range from zero percent to 200 percent, with 100 percent being the target. As of June 30, 2022, we determined that all of the performance measures for the outstanding performance shares were probable of achievement, with the average of the achievement factors estimated to be between the target and maximum achievement percentages for the performance shares granted in 2020 and 2021 and at target for the performance shares granted in 2022.

Note 9: Earnings Per Share

The following table presents the calculation of basic and diluted earnings per share ("EPS"):

Three Months EndedSix Months Ended
June 30,June 30,
2022202120222021
(in millions, except per share amounts)
Basic EPS:
Numerator:
Net income attributable to Hilton stockholders
$368 $130 $580 $22 
Denominator:
Weighted average shares outstanding278 279 278 278 
Basic EPS$1.33 $0.47 $2.09 $0.08 
Diluted EPS:
Numerator:
Net income attributable to Hilton stockholders
$368 $130 $580 $22 
Denominator:
Weighted average shares outstanding(1)
280 281 281 281 
Diluted EPS$1.32 $0.46 $2.07 $0.08 
____________
(1)Certain shares related to share-based compensation were excluded from the calculations of diluted EPS because their effect would have been anti-dilutive under the treasury stock method, including 1 million and less than 1 million shares for the three and six months ended June 30, 2022, respectively, and less than 1 million shares for both the three and six months ended June 30, 2021.

11


Note 10: Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss

The following tables present the changes in the components of stockholders' equity (deficit):

Three Months Ended June 30, 2022
Equity (Deficit) Attributable to Hilton Stockholders
Treasury StockAdditional
Paid-in
Capital
Accumulated DeficitAccumulated
Other
Comprehensive
Loss
Common StockNoncontrolling
Interests
SharesAmountTotal
(in millions)
Balance as of March 31, 2022279.0 $3 $(4,573)$10,702 $(6,110)$(720)$1 $(697)
Net income (loss)— — — — 368 — (1)367 
Other comprehensive income
— — — — — 6 — 6 
Dividends(1)
— — — — (41)— — (41)
Repurchases of common stock(2)
(3.6)— (480)— — — — (480)
Share-based compensation
0.1 — 5 51 — — — 56 
Balance as of June 30, 2022275.5 $3 $(5,048)$10,753 $(5,783)$(714)$ $(789)

Three Months Ended June 30, 2021
Equity (Deficit) Attributable to Hilton Stockholders
Treasury StockAdditional
Paid-in
Capital
Accumulated DeficitAccumulated
Other
Comprehensive
Loss
Common StockNoncontrolling
Interests
SharesAmountTotal
(in millions)
Balance as of March 31, 2021278.5 $3 $(4,453)$10,547 $(6,840)$(880)$3 $(1,620)
Net income (loss)— — — — 130 — (2)128 
Other comprehensive income
— — — — — 14 — 14 
Share-based compensation
0.2 — 6 56 — — — 62 
Balance as of June 30, 2021278.7 $3 $(4,447)$10,603 $(6,710)$(866)$1 $(1,416)

Six Months Ended June 30, 2022
Equity (Deficit) Attributable to Hilton Stockholders
Treasury StockAdditional
Paid-in
Capital
Accumulated DeficitAccumulated
Other
Comprehensive
Loss
Common StockNoncontrolling
Interests
SharesAmountTotal
(in millions)
Balance as of December 31, 2021279.1 $3 $(4,443)$10,720 $(6,322)$(779)$2 $(819)
Net income (loss)— — — — 580 — (2)578 
Other comprehensive income
— — — — — 65 — 65 
Dividends(1)
— — — — (41)— — (41)
Repurchases of common stock(2)
(4.5)— (610)— — — — (610)
Share-based compensation
0.9 — 5 33 — — — 38 
Balance as of June 30, 2022275.5 $3 $(5,048)$10,753 $(5,783)$(714)$ $(789)

12


Six Months Ended June 30, 2021
Equity (Deficit) Attributable to Hilton Stockholders
Treasury StockAdditional
Paid-in
Capital
Accumulated DeficitAccumulated
Other
Comprehensive
Loss
Common StockNoncontrolling
Interests
SharesAmountTotal
(in millions)
Balance as of December 31, 2020277.6 $3 $(4,453)$10,552 $(6,732)$(860)$4 $(1,486)
Net- income (loss)— — — — 22 — (3)19 
Other comprehensive loss
— — — — — (6)— (6)
Share-based compensation
1.1 — 6 51 — — — 57 
Balance as of June 30, 2021278.7 $3 $(4,447)$10,603 $(6,710)$(