An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Marriott International Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total undiscounted future operating lease payments	—	2,073)	2,292)	1,742)	962)
Discount rate¹	—	3.51%	3.24%	3.40%	3.36%

Total present value of future operating lease payments	—	1,621)	1,819)	1,408)	806)

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).

¹ Weighted-average interest rate for Marriott International Inc. debt

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.51%
2019	171)	2019	171)	165)
2020	170)	2020	170)	159)
2021	145)	2021	145)	131)
2022	153)	2022	153)	133)
2023	139)	2023	139)	117)
2024 and thereafter	1,295)	2024	139)	113)
		2025	139)	109)
		2026	139)	105)
		2027	139)	102)
		2028	139)	98)
		2029	139)	95)
		2030	139)	92)
		2031	139)	89)
		2032	139)	86)
		2033	44)	26)
Total:	2,073)		2,073)	1,621)

Based on: 10-K (reporting date: 2018-12-31).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.24%
2018	187)	2018	187)	181)
2019	187)	2019	187)	175)
2020	167)	2020	167)	152)
2021	143)	2021	143)	126)
2022	154)	2022	154)	131)
2023 and thereafter	1,454)	2023	154)	127)
		2024	154)	123)
		2025	154)	119)
		2026	154)	116)
		2027	154)	112)
		2028	154)	108)
		2029	154)	105)
		2030	154)	102)
		2031	154)	99)
		2032	68)	42)
Total:	2,292)		2,292)	1,819)

Based on: 10-K (reporting date: 2017-12-31).

2016 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.40%
2017	183)	2017	183)	177)
2018	173)	2018	173)	162)
2019	152)	2019	152)	137)
2020	130)	2020	130)	114)
2021	121)	2021	121)	102)
2022 and thereafter	983)	2022	121)	99)
		2023	121)	96)
		2024	121)	93)
		2025	121)	90)
		2026	121)	87)
		2027	121)	84)
		2028	121)	81)
		2029	121)	78)
		2030	15)	9)
Total:	1,742)		1,742)	1,408)

Based on: 10-K (reporting date: 2016-12-31).

2015 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.36%
2016	126)	2016	126)	122)
2017	123)	2017	123)	115)
2018	112)	2018	112)	101)
2019	87)	2019	87)	76)
2020	67)	2020	67)	57)
2021 and thereafter	447)	2021	67)	55)
		2022	67)	53)
		2023	67)	51)
		2024	67)	50)
		2025	67)	48)
		2026	67)	47)
		2027	45)	30)
Total:	962)		962)	806)

Based on: 10-K (reporting date: 2015-12-31).

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Marriott International Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported)	25,051)	23,696)	23,948)	24,140)	6,082)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	1,621)	1,819)	1,408)	806)
Total assets (adjusted)	25,051)	25,317)	25,767)	25,548)	6,888)
Adjustment to Total Debt
Total debt (as reported)	10,940)	9,347)	8,238)	8,506)	4,107)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	1,621)	1,819)	1,408)	806)
Add: Current operating lease liabilities (recorded in Accrued expenses and other)	130)	—)	—)	—)	—)
Add: Noncurrent operating lease liabilities	882)	—)	—)	—)	—)
Total debt (adjusted)	11,952)	10,968)	10,057)	9,914)	4,913)

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).

^{1, 2} Equal to total present value of future operating lease payments.

Marriott International Inc., Financial Data: Reported vs. Adjusted

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Marriott International Inc., adjusted financial ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total Asset Turnover¹
Reported total asset turnover	0.84	0.88	0.96	0.71	2.38
Adjusted total asset turnover	0.84	0.82	0.89	0.67	2.10
Debt to Equity²
Reported debt to equity	15.56	4.20	2.21	1.59	—
Adjusted debt to equity	17.00	4.93	2.70	1.85	—
Return on Assets³ (ROA)
Reported ROA	5.08%	8.05%	5.73%	3.23%	14.12%
Adjusted ROA	5.08%	7.53%	5.32%	3.05%	12.47%

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).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Marriott International Inc. adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Marriott International Inc. adjusted debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Marriott International Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Marriott International Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenues	20,972)	20,758)	22,894)	17,072)	14,486)
Total assets	25,051)	23,696)	23,948)	24,140)	6,082)
Activity Ratio
Total asset turnover¹	0.84	0.88	0.96	0.71	2.38
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues	20,972)	20,758)	22,894)	17,072)	14,486)
Adjusted total assets	25,051)	25,317)	25,767)	25,548)	6,888)
Activity Ratio
Adjusted total asset turnover²	0.84	0.82	0.89	0.67	2.10

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).

2019 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 20,972 ÷ 25,051 = 0.84

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 20,972 ÷ 25,051 = 0.84

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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.	Marriott International Inc. adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total debt	10,940)	9,347)	8,238)	8,506)	4,107)
Shareholders’ equity (deficit)	703)	2,225)	3,731)	5,357)	(3,590)
Solvency Ratio
Debt to equity¹	15.56	4.20	2.21	1.59	—
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	11,952)	10,968)	10,057)	9,914)	4,913)
Shareholders’ equity (deficit)	703)	2,225)	3,731)	5,357)	(3,590)
Solvency Ratio
Adjusted debt to equity²	17.00	4.93	2.70	1.85	—

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).

2019 Calculations

¹ Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 10,940 ÷ 703 = 15.56

² Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity (deficit)
= 11,952 ÷ 703 = 17.00

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Marriott International Inc. adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income	1,273)	1,907)	1,372)	780)	859)
Total assets	25,051)	23,696)	23,948)	24,140)	6,082)
Profitability Ratio
ROA¹	5.08%	8.05%	5.73%	3.23%	14.12%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income	1,273)	1,907)	1,372)	780)	859)
Adjusted total assets	25,051)	25,317)	25,767)	25,548)	6,888)
Profitability Ratio
Adjusted ROA²	5.08%	7.53%	5.32%	3.05%	12.47%

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).

2019 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,273 ÷ 25,051 = 5.08%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 1,273 ÷ 25,051 = 5.08%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Marriott International Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Marriott International Inc. (NASDAQ:MAR)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

Marriott International Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Marriott International Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)