Analysis of Debt
Total Debt (Carrying Amount)
Marriott International Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Total long-term debt exhibited a substantial upward trajectory between 2015 and 2019, increasing from 4,107 million US$ to 10,940 million US$. The most significant expansion occurred between 2015 and 2016, where the total carrying amount more than doubled, indicating a period of aggressive capital raising or strategic investment. Following a marginal decline in 2017, the debt levels resumed a steady climb through 2019.
- Non-Current Debt Trends
- Long-term debt excluding the current portion rose from 3,807 million US$ in 2015 to 9,963 million US$ in 2019. This component represents the vast majority of the total debt profile and mirrors the overall growth pattern, specifically the sharp increase observed in 2016 and the subsequent growth in 2018 and 2019.
- Current Maturity Analysis
- The current portion of long-term debt remained relatively stable from 2015 to 2017, ranging between 300 million US$ and 398 million US$. However, a significant acceleration in short-term obligations occurred in 2018 and 2019, with the amount reaching 977 million US$ by the end of 2019. This suggests a growing volume of debt maturing in the immediate short term.
- Aggregate Debt Growth
- The total carrying amount of debt increased by approximately 166% over the five-year period. The growth was characterized by an initial surge of 107% between 2015 and 2016, followed by a period of moderated but consistent expansion from 2017 through 2019.
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Total Debt (Fair Value)
| Dec 31, 2019 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Current portion of long-term debt | 977) |
| Senior Notes, excluding current portion | 6,712) |
| Commercial paper | 3,197) |
| Finance lease obligations | 157) |
| Other long-term debt | 179) |
| Total long-term debt, including current portion (fair value) | 11,222) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.03 |
Based on: 10-K (reporting date: 2019-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 3.34%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.40% | 349) | 12) | |
| 3.60% | 349) | 13) | |
| 3.40% | 398) | 14) | |
| 3.10% | 449) | 14) | |
| 4.00% | 346) | 14) | |
| 2.50% | 747) | 19) | |
| 3.30% | 744) | 25) | |
| 3.10% | 291) | 9) | |
| 2.80% | 332) | 9) | |
| 4.10% | 291) | 12) | |
| 4.20% | 444) | 19) | |
| 2.50% | 549) | 14) | |
| 4.40% | 347) | 15) | |
| 4.80% | 297) | 14) | |
| 2.50% | 299) | 7) | |
| 3.90% | 564) | 22) | |
| 2.40% | 543) | 13) | |
| 4.40% | 157) | 7) | |
| Total | 7,496) | 251) | |
| 3.34% | |||
Based on: 10-K (reporting date: 2019-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 251 ÷ 7,496 = 3.34%