Name: Marriott International Inc. (NASDAQ:MAR) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Marriott International Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income	1,273)	1,907)	1,372)	780)	859)
Depreciation, amortization, and other	403)	284)	290)	168)	139)
Share-based compensation	187)	184)	181)	212)	113)
Income taxes	(200)	(239)	828)	76)	143)
Liability for guest loyalty program	257)	520)	378)	343)	233)
Contract acquisition costs	(195)	(152)	—)	—)	—)
Merger-related charges	86)	16)	(124)	113)	—)
Working capital changes	(273)	(76)	81)	(177)	(126)
(Gain) loss on asset dispositions	(147)	(194)	(687)	1)	(25)
Other	294)	107)	117)	66)	94)
Adjustments to reconcile to cash provided by operating activities	412)	450)	1,064)	802)	571)
Net cash provided by operating activities	1,685)	2,357)	2,436)	1,582)	1,430)
Acquisition of a business, net of cash acquired	—)	—)	—)	(2,412)	(137)
Capital expenditures	(653)	(556)	(240)	(199)	(305)
Dispositions	395)	479)	1,418)	218)	673)
Loan advances	(30)	(13)	(93)	(32)	(66)
Loan collections	51)	48)	187)	67)	92)
Contract acquisition costs	—)	—)	(189)	(80)	(121)
Redemption of debt security	—)	—)	—)	—)	121)
Other	(47)	(10)	(63)	29)	110)
Net cash (used in) provided by investing activities	(284)	(52)	1,020)	(2,409)	367)
Commercial paper/Credit Facility, net	951)	(129)	25)	1,365)	(140)
Issuance of long-term debt	1,397)	1,646)	—)	1,482)	790)
Repayment of long-term debt	(835)	(397)	(310)	(326)	(325)
Issuance of Class A Common Stock	7)	4)	6)	34)	40)
Dividends paid	(612)	(543)	(482)	(374)	(253)
Purchase of treasury stock	(2,260)	(2,850)	(3,013)	(568)	(1,917)
Share-based compensation withholding taxes	(148)	(105)	(157)	—)	—)
Other	(8)	—)	—)	(24)	—)
Net cash provided by (used in) financing activities	(1,508)	(2,374)	(3,931)	1,589)	(1,805)
Increase (decrease) in cash, cash equivalents, and restricted cash	(107)	(69)	(475)	762)	(8)
Cash, cash equivalents, and restricted cash, beginning of period	360)	429)	858)	96)	104)
Cash, cash equivalents, and restricted cash, end of period	253)	360)	383)	858)	96)

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).

An analysis of the cash flow performance from 2015 to 2019 reveals a company characterized by strong operating cash generation, aggressive shareholder return strategies, and significant volatility in investing activities due to strategic acquisitions and asset dispositions.

Operating Cash Flow Dynamics: Net cash provided by operating activities remained positive throughout the period, peaking in 2017 at 2,436 million US$ before declining to 1,685 million US$ by 2019. While net income fluctuated—reaching a peak of 1,907 million US$ in 2018—operating cash flow was consistently bolstered by non-cash adjustments. Depreciation and amortization showed a steady upward trend, increasing from 139 million US$ in 2015 to 403 million US$ in 2019. The liability for guest loyalty programs also acted as a significant source of cash, particularly in 2018, though it saw a sharp decrease in 2019.
Investment and Capital Allocation: Investing activities were marked by high volatility. A substantial cash outflow occurred in 2016 due to the acquisition of a business totaling 2,412 million US$. This was partially offset in subsequent years by significant asset dispositions, most notably in 2017, which provided 1,418 million US$. Capital expenditures exhibited a consistent growth pattern, more than doubling from 305 million US$ in 2015 to 653 million US$ in 2019, indicating an increased investment in physical assets or infrastructure over the five-year period.
Financing and Shareholder Distributions: Financing activities were dominated by aggressive capital return programs. The purchase of treasury stock was a primary driver of cash outflows, with expenditures exceeding 2,800 million US$ annually in both 2017 and 2018. Dividends paid also showed a continuous year-over-year increase, rising from 253 million US$ in 2015 to 612 million US$ in 2019. To fund these distributions and acquisitions, the company utilized the debt markets, evidenced by significant issuances of long-term debt in 2016, 2018, and 2019.
Liquidity and Cash Position: The overall cash position experienced fluctuations corresponding with major financing and investing events. After a peak in cash and restricted cash equivalents of 858 million US$ at the end of 2016, the balance trended downward, ending at 253 million US$ in 2019. This decline reflects the prioritization of shareholder returns and capital expenditures over the maintenance of high liquidity reserves.

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