Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Hilton Worldwide Holdings Inc., consolidated statement of comprehensive income
US$ in millions
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).
The financial data demonstrates notable fluctuations in net income over the analyzed period. The net income showed a positive value of $886 million in 2019, followed by a significant loss of $720 million in 2020, reflecting a considerable downturn likely linked to extraordinary circumstances during that year. Subsequently, the company recovered with net income values increasing to $407 million in 2021, reaching a peak of $1,257 million in 2022, before slightly declining to $1,151 million in 2023.
Currency translation adjustments exhibited variability but remained relatively small compared to other items. These adjustments fluctuated from a slight negative of $4 million in 2019 to a positive $38 million in 2020, followed by negative values in 2021 and 2022, and a modest positive adjustment of $8 million in 2023.
Pension liability adjustments reflected greater volatility, moving from a negative $9 million in 2019 and $20 million in 2020 to a positive $80 million in 2021. However, this was followed by a decrease to negative $49 million in 2022 and a smaller negative value of $3 million in 2023, indicating fluctuations in pension-related accounting impacts.
Cash flow hedge adjustments also showed significant swings. Initially, the adjustments were negative at $45 million in 2019 and $38 million in 2020, then shifted to positive figures of $31 million in 2021 and a higher positive $130 million in 2022. In 2023, the figure reversed back to a negative adjustment of $31 million, indicating sensitivity to hedging results over the years.
Other comprehensive income (loss), combining various adjustments net of tax, moved from a notable negative $58 million in 2019 to a less negative $20 million in 2020. It then turned positive in 2021 ($82 million) and 2022 ($73 million), before declining to a negative $26 million in 2023. This pattern suggests fluctuations in components beyond net income that impact overall comprehensive results.
Comprehensive income (loss) reflected the combined effects of net income and other comprehensive items, following a similar trend. It showed a gain of $828 million in 2019, followed by a significant loss of $740 million in 2020. Recovery was evident in 2021 with $489 million, a substantial increase to $1,330 million in 2022, and a slight reduction to $1,125 million in 2023.
Comprehensive income attributable to noncontrolling interests remained relatively minor and fluctuated between negative and positive values, with no clear trend. The values ranged from negative $5 million in 2019 to positive $5 million in 2020, minor positive and negative amounts in subsequent years, ending with negative $9 million in 2023.
Accordingly, comprehensive income attributable to Hilton stockholders mirrored the total comprehensive income trends closely, registering $823 million in 2019, a loss of $735 million in 2020, followed by a rebound to $491 million in 2021. This increased markedly to $1,328 million in 2022 and slightly decreased to $1,116 million in 2023.
- Summary of Key Observations:
- - There is a clear impact from external conditions causing a sharp drop in net and comprehensive income in 2020, with a strong recovery over the subsequent years.
- - Volatility in pension liability and cash flow hedge adjustments highlights changing financial risks and accounting considerations affecting comprehensive income.
- - Currency translation adjustments have a relatively limited impact but show some variability, possibly due to exchange rate fluctuations.
- - Comprehensive income attributable to stockholders follows the net income trajectory closely, indicating that common shareholders bear the primary impact of financial performance variations across the period.
- - The slight decline in net and comprehensive income in 2023 compared to 2022 suggests a moderation in performance after the peak recovery year.