Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Hilton Worldwide Holdings Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	5,052)	5,032)	5,071)	5,095)	5,159)
Brands	4,846)	4,840)	4,883)	4,904)	4,877)
Indefinite-lived brands intangible assets	4,846)	4,840)	4,883)	4,904)	4,877)
International management contracts recorded at Merger	—)	293)	310)	317)	2,163)
Contract acquisition costs	1,183)	961)	780)	632)	604)
Development commissions and other	162)	149)	140)	132)	127)
Management and franchise contracts	1,345)	1,403)	1,230)	1,081)	2,894)
Capitalized software costs	712)	615)	561)	522)	625)
Leases	126)	124)	138)	157)	290)
Hilton Honors	—)	335)	339)	342)	338)
Other	—)	—)	—)	—)	34)
Other intangible assets	838)	1,074)	1,038)	1,021)	1,287)
Finite-lived intangible assets, gross carrying value	2,183)	2,477)	2,268)	2,102)	4,181)
Accumulated amortization	(946)	(1,429)	(1,316)	(1,183)	(2,980)
Finite-lived intangible assets, net carrying value	1,237)	1,048)	952)	919)	1,201)
Intangible assets	6,083)	5,888)	5,835)	5,823)	6,078)
Goodwill and intangible assets	11,135)	10,920)	10,906)	10,918)	11,237)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Hilton Worldwide Holdings Inc. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Hilton Worldwide Holdings Inc. intangible assets increased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Hilton Worldwide Holdings Inc. goodwill and intangible assets increased from 2021 to 2022 and from 2022 to 2023.

Hilton Worldwide Holdings Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	15,401)	15,512)	15,441)	16,755)	14,957)
Less: Goodwill	5,052)	5,032)	5,071)	5,095)	5,159)
Total assets (adjusted)	10,349)	10,480)	10,370)	11,660)	9,798)
Adjustment to Total Hilton Stockholders’ Deficit
Total Hilton stockholders’ deficit (as reported)	(2,360)	(1,102)	(821)	(1,490)	(482)
Less: Goodwill	5,052)	5,032)	5,071)	5,095)	5,159)
Total Hilton stockholders’ deficit (adjusted)	(7,412)	(6,134)	(5,892)	(6,585)	(5,641)
Adjustment to Net Income (loss) Attributable To Hilton Stockholders
Net income (loss) attributable to Hilton stockholders (as reported)	1,141)	1,255)	410)	(715)	881)
Add: Impairment losses on goodwill	—)	—)	—)	104)	—)
Net income (loss) attributable to Hilton stockholders (adjusted)	1,141)	1,255)	410)	(611)	881)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Hilton Worldwide Holdings Inc., Financial Data: Reported vs. Adjusted

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Hilton Worldwide Holdings Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	11.15%	14.31%	7.08%	-16.60%	9.32%
Adjusted net profit margin	11.15%	14.31%	7.08%	-14.19%	9.32%
Total Asset Turnover
Reported total asset turnover	0.66	0.57	0.37	0.26	0.63
Adjusted total asset turnover	0.99	0.84	0.56	0.37	0.96
Financial Leverage
Reported financial leverage	—	—	—	—	—
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	—	—	—	—	—
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	7.41%	8.09%	2.66%	-4.27%	5.89%
Adjusted ROA	11.03%	11.98%	3.95%	-5.24%	8.99%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Hilton Worldwide Holdings Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Hilton Worldwide Holdings Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Hilton Worldwide Holdings Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Hilton Worldwide Holdings Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hilton stockholders	1,141)	1,255)	410)	(715)	881)
Revenues	10,235)	8,773)	5,788)	4,307)	9,452)
Profitability Ratio
Net profit margin¹	11.15%	14.31%	7.08%	-16.60%	9.32%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Hilton stockholders	1,141)	1,255)	410)	(611)	881)
Revenues	10,235)	8,773)	5,788)	4,307)	9,452)
Profitability Ratio
Adjusted net profit margin²	11.15%	14.31%	7.08%	-14.19%	9.32%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to Hilton stockholders ÷ Revenues
= 100 × 1,141 ÷ 10,235 = 11.15%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Hilton stockholders ÷ Revenues
= 100 × 1,141 ÷ 10,235 = 11.15%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Hilton Worldwide Holdings Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues	10,235)	8,773)	5,788)	4,307)	9,452)
Total assets	15,401)	15,512)	15,441)	16,755)	14,957)
Activity Ratio
Total asset turnover¹	0.66	0.57	0.37	0.26	0.63
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	10,235)	8,773)	5,788)	4,307)	9,452)
Adjusted total assets	10,349)	10,480)	10,370)	11,660)	9,798)
Activity Ratio
Adjusted total asset turnover²	0.99	0.84	0.56	0.37	0.96

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 10,235 ÷ 15,401 = 0.66

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 10,235 ÷ 10,349 = 0.99

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Hilton Worldwide Holdings Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	15,401)	15,512)	15,441)	16,755)	14,957)
Total Hilton stockholders’ deficit	(2,360)	(1,102)	(821)	(1,490)	(482)
Solvency Ratio
Financial leverage¹	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	10,349)	10,480)	10,370)	11,660)	9,798)
Adjusted total Hilton stockholders’ deficit	(7,412)	(6,134)	(5,892)	(6,585)	(5,641)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Hilton stockholders’ deficit
= 15,401 ÷ -2,360 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Hilton stockholders’ deficit
= 10,349 ÷ -7,412 = —

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hilton stockholders	1,141)	1,255)	410)	(715)	881)
Total Hilton stockholders’ deficit	(2,360)	(1,102)	(821)	(1,490)	(482)
Profitability Ratio
ROE¹	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Hilton stockholders	1,141)	1,255)	410)	(611)	881)
Adjusted total Hilton stockholders’ deficit	(7,412)	(6,134)	(5,892)	(6,585)	(5,641)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income (loss) attributable to Hilton stockholders ÷ Total Hilton stockholders’ deficit
= 100 × 1,141 ÷ -2,360 = —

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to Hilton stockholders ÷ Adjusted total Hilton stockholders’ deficit
= 100 × 1,141 ÷ -7,412 = —

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Hilton stockholders	1,141)	1,255)	410)	(715)	881)
Total assets	15,401)	15,512)	15,441)	16,755)	14,957)
Profitability Ratio
ROA¹	7.41%	8.09%	2.66%	-4.27%	5.89%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Hilton stockholders	1,141)	1,255)	410)	(611)	881)
Adjusted total assets	10,349)	10,480)	10,370)	11,660)	9,798)
Profitability Ratio
Adjusted ROA²	11.03%	11.98%	3.95%	-5.24%	8.99%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income (loss) attributable to Hilton stockholders ÷ Total assets
= 100 × 1,141 ÷ 15,401 = 7.41%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to Hilton stockholders ÷ Adjusted total assets
= 100 × 1,141 ÷ 10,349 = 11.03%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Hilton Worldwide Holdings Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Hilton Worldwide Holdings Inc. (NYSE:HLT)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Hilton Worldwide Holdings Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Hilton Worldwide Holdings Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)