Marriott International Inc. (MAR)

Marriott's revenues include: (1) base management and incentive management fees; (2) franchise fees (including licensing fees from MVW and Vistana of $101 million for 2017, $73 million for 2016, and $59 million for 2015); (3) revenues from lodging properties Marriott owns or leases; and (4) cost reimbursements. Management fees are typically composed of a base fee, which is a percentage of the revenues of hotels, and an incentive fee, which is generally based on hotel profitability. Franchise fees are typically composed of initial application fees, continuing royalties generated from Marriott's franchise programs, which permit the hotel owners and operators to use certain of Marriott's brand names, and branding fees for third-party residential sales and credit card licensing. Cost reimbursements include direct and indirect costs that are reimbursed to Marriott by properties that Marriott manages, franchises, or licenses.

Base Management and Incentive Management Fees

Marriott recognizes base management fees as revenue when Marriott earns them under the contracts. In interim periods and at year-end, Marriott recognizes incentive management fees that would be due as if the contracts were to terminate at that date, exclusive of any termination fees payable or receivable by Marriott.

Franchise Fee and License Fee Revenue

Marriott recognizes application fees at hotel opening. Marriott recognizes ongoing franchise fees and license fees as revenue in each accounting period as Marriott earns those fees from the franchisee or licensee under the contracts.

Owned and Leased Units

Marriott recognizes room sales and revenues from other guest services for the owned and leased units when rooms are occupied and when Marriott has rendered the services.

Cost Reimbursements

Marriott generally recognizes cost reimbursements from managed, franchised, and licensed properties when Marriott incurs the related reimbursable costs. These costs primarily consist of payroll and related expenses at managed properties where Marriott is the employer and include certain operational and administrative costs as provided for in the contracts with the owners. As these costs have no added markup, the revenue and related expense have no impact on either Marriott's operating or net income.

Other Revenue

Includes termination fees and other property and brand revenues. Marriott generally recognizes other revenue as services are rendered and when collection is reasonably assured. Amounts received in advance are deferred as liabilities.

Source: 10-K (filing date: 2018-02-15).

Marriott International Inc., Income Statement, Revenues

USD $ in millions

	12 months ended	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	North American Full-Service
	North American Limited-Service
	Asia Pacific
	Other International
	Segment revenues
	Unallocated corporate
	Consolidated revenues

Based on: 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19), 10-K (filing date: 2014-02-20).