Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Hilton Worldwide Holdings Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Accrued employee compensation and benefits	592)	555)	514)	404)	554)
Accounts payable	457)	368)	274)	224)	303)
Operating lease liabilities, current	116)	112)	140)	170)	133)
Insurance reserves, current	99)	86)	84)	68)	95)
Other current liabilities and accrued expenses	715)	669)	556)	436)	618)
Accounts payable, accrued expenses and other	1,979)	1,790)	1,568)	1,302)	1,703)
Current maturities of long-term debt	39)	39)	54)	56)	37)
Current portion of deferred revenues	502)	433)	350)	370)	332)
Current portion of liability for guest loyalty program	1,202)	1,110)	1,047)	703)	799)
Current liabilities	3,722)	3,372)	3,019)	2,431)	2,871)
Long-term debt, excluding current maturities	9,157)	8,708)	8,712)	10,431)	7,956)
Operating lease liabilities, non-current	808)	832)	870)	971)	1,037)
Deferred revenues	1,132)	986)	896)	1,004)	827)
Deferred income tax liabilities	401)	735)	700)	649)	795)
Liability for guest loyalty program	1,530)	1,285)	1,317)	1,766)	1,060)
Other long-term tax liabilities	645)	349)	385)	400)	369)
Insurance reserves	154)	146)	151)	189)	178)
Deferred employee compensation and benefits	86)	91)	111)	116)	118)
Pension obligations	34)	40)	25)	143)	134)
Other	79)	66)	74)	141)	84)
Other long-term liabilities	998)	692)	746)	989)	883)
Long-term liabilities	14,026)	13,238)	13,241)	15,810)	12,558)
Total liabilities	17,748)	16,610)	16,260)	18,241)	15,429)
Common stock, $0.01 par value	3)	3)	3)	3)	3)
Treasury stock, at cost	(8,393)	(6,040)	(4,443)	(4,453)	(4,169)
Additional paid-in capital	10,968)	10,831)	10,720)	10,552)	10,489)
Accumulated deficit	(4,207)	(5,190)	(6,322)	(6,732)	(5,965)
Accumulated other comprehensive loss	(731)	(706)	(779)	(860)	(840)
Total Hilton stockholders’ deficit	(2,360)	(1,102)	(821)	(1,490)	(482)
Noncontrolling interests	13)	4)	2)	4)	10)
Total deficit	(2,347)	(1,098)	(819)	(1,486)	(472)
Total liabilities and equity (deficit)	15,401)	15,512)	15,441)	16,755)	14,957)

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).

Current Liabilities: Current liabilities experienced a decline in 2020, dropping to 2,431 million USD from 2,871 million USD in 2019, likely due to reduced business activity. However, there was a steady increase in subsequent years, reaching 3,722 million USD in 2023, indicating growing short-term obligations. Notably, accounts payable and accrued expenses rose consistently post-2020, reflecting increased operational costs or extended payment cycles.
Debt Obligations: The company’s current maturities of long-term debt remained relatively stable between 2019 and 2023, hovering around 39-56 million USD. Long-term debt, excluding current maturities, surged to 10,431 million USD in 2020, possibly reflecting refinancing or additional borrowing, followed by a decline and gradual increase again to 9,157 million USD in 2023. Total long-term liabilities mirrored these trends, peaking in 2020 at 15,810 million USD and settling somewhat lower in subsequent years.
Lease Liabilities: Operating lease liabilities, both current and non-current, display a mixed trend. Current lease liabilities increased sharply in 2020, then declined in years following, stabilizing around 116 million USD in 2023. Non-current lease liabilities have steadily decreased from 1,037 million USD in 2019 to 808 million USD in 2023, suggesting possible lease expirations or restructuring.
Deferred Revenues and Liabilities: Deferred revenues increased from 827 million USD in 2019 to 1,132 million USD in 2023, indicating growth in prepayments or unearned income. Deferred income tax liabilities decreased significantly in 2023 to 401 million USD, after fluctuating over prior years, which may have tax planning or regulatory impacts. Other tax-related liabilities presented an increase in 2023, suggesting changes in tax obligations or adjustments.
Liability for Guest Loyalty Program: The liability associated with the guest loyalty program grew to 1,766 million USD in 2020, decreased thereafter, but then resumed an upward trajectory, reaching 1,530 million USD in 2023. This variance may indicate changes in program usage, valuation, or redemption patterns.
Stockholders’ Equity and Deficit: Common stock remained constant at 3 million USD throughout. Treasury stock expanded substantially, particularly from 2021 onward, increasing the amount spent on shares repurchased or held in treasury, reaching -8,393 million USD in 2023. Additional paid-in capital showed a steady but modest increase over the period. Accumulated deficit improved significantly post-2020, decreasing the deficit from -6,732 million USD in 2020 to -4,207 million USD in 2023, signifying enhanced profitability or retained earnings management. However, total stockholders’ deficit fluctuated, worsening to -2,360 million USD in 2023, indicating overall negative equity primarily driven by treasury stock.
Total Liabilities and Equity: Total liabilities rose sharply from 15,429 million USD in 2019 to 18,241 million USD in 2020, then declined and stabilized near 17,748 million USD in 2023. Correspondingly, total liabilities and equity (deficit) marginally increased in 2020 but gradually declined to approximately 15,401 million USD by 2023, reflecting changes in balance sheet structure and equity composition.
General Trends and Insights: The financial data indicate that the company faced significant adjustments during 2020, likely due to external economic conditions impacting liabilities and borrowing. Post-2020, current liabilities and debt levels broadly trended upwards, suggesting recovery and increased business activity. Treasury stock expansion significantly affected equity, increasing deficits despite improvements in accumulated deficit measures. The evolving balance between rising liabilities and fluctuating equity reflects ongoing capital management challenges.

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Hilton Worldwide Holdings Inc. (NYSE:HLT)

Balance Sheet: Liabilities and Stockholders’ Equity