Name: Hilton Worldwide Holdings Inc. (NYSE:HLT) | 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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Hilton Worldwide Holdings Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss)	1,151)	1,257)	407)	(720)	886)
Amortization of contract acquisition costs	43)	38)	32)	29)	29)
Depreciation and amortization expenses	147)	162)	188)	331)	346)
Impairment losses	38)	—)	—)	258)	—)
(Gain) loss on sales of assets, net	—)	—)	7)	—)	(81)
(Gain) loss on foreign currency transactions	16)	(5)	7)	27)	2)
Loss on debt extinguishment	—)	—)	69)	48)	—)
Loss on investments in unconsolidated affiliate	92)	—)	—)	—)	—)
Share-based compensation expense	169)	162)	193)	97)	154)
Amortization of deferred financing costs and discounts	16)	16)	16)	17)	16)
Deferred income taxes	(264)	34)	(4)	(235)	(20)
Contract acquisition costs, net of refunds	(233)	(81)	(200)	(50)	(90)
Accounts receivable, net	(126)	(270)	(301)	488)	(105)
Prepaid expenses	(27)	(21)	(22)	60)	6)
Other current assets	16)	78)	(107)	(26)	15)
Accounts payable, accrued expenses and other	181)	198)	273)	(414)	99)
Changes in operating assets and liabilities	44)	(15)	(157)	108)	15)
Change in operating lease right-of-use assets	73)	105)	96)	94)	43)
Change in operating lease liabilities	(98)	(113)	(123)	(142)	(80)
Change in deferred revenues	215)	174)	(128)	215)	(17)
Change in liability for guest loyalty program	337)	31)	(105)	610)	191)
Change in other liabilities	284)	(11)	(111)	8)	(14)
Other	(84)	(73)	(78)	13)	4)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	795)	424)	(298)	1,428)	498)
Net cash provided by operating activities	1,946)	1,681)	109)	708)	1,384)
Capital expenditures for property and equipment	(151)	(39)	(35)	(46)	(81)
Issuance of financing receivables	(22)	(46)	(3)	(3)	—)
Proceeds from (payments for) undesignated derivative financial instruments	(26)	79)	(5)	(3)	—)
Proceeds from asset dispositions	5)	—)	6)	—)	120)
Capitalized software costs	(96)	(63)	(44)	(46)	(124)
Investments in unconsolidated affiliates	(15)	(53)	—)	—)	—)
Other	—)	(1)	24)	(9)	(38)
Net cash used in investing activities	(305)	(123)	(57)	(107)	(123)
Borrowings	609)	23)	1,510)	4,590)	2,200)
Repayment of debt	(183)	(48)	(3,230)	(2,121)	(1,547)
Debt issuance costs and redemption premium	(20)	—)	(76)	(71)	(29)
Dividends paid	(158)	(123)	—)	(42)	(172)
Repurchases of common stock	(2,338)	(1,590)	—)	(296)	(1,538)
Share-based compensation tax withholdings	(54)	(58)	(49)	(58)	(44)
Proceeds from share-based compensation	51)	29)	52)	31)	17)
Settlements of interest rate swap with financing component	53)	2)	—)	—)	—)
Other	—)	—)	—)	(1)	—)
Net cash provided by (used in) financing activities	(2,040)	(1,765)	(1,793)	2,032)	(1,113)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	(12)	(19)	(10)	—)	(2)
Net increase (decrease) in cash, restricted cash and cash equivalents	(411)	(226)	(1,751)	2,633)	146)
Cash, restricted cash and cash equivalents, beginning of period	1,286)	1,512)	3,263)	630)	484)
Cash, restricted cash and cash equivalents, end of period	875)	1,286)	1,512)	3,263)	630)

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).

The financial performance from 2019 to 2023 is characterized by a sharp operational contraction in 2020 followed by a robust recovery in both profitability and cash generation. A transition is observable from a period of liquidity preservation and debt accumulation during the 2020 crisis to a phase of aggressive capital return to shareholders and strategic reinvestment by 2023.

Operating Cash Flow Trends: Net income experienced significant volatility, dropping to a loss of 720 million in 2020 before recovering to a peak of 1,257 million in 2022 and 1,151 million in 2023. Net cash provided by operating activities followed a similar recovery trajectory, rising from a low of 109 million in 2021 to 1,946 million in 2023. This recovery was supported by significant positive adjustments in the liability for guest loyalty programs and deferred revenues, particularly in 2020 and 2023, which helped stabilize cash flows during periods of income volatility.
Investing Activities and Capital Allocation: Investing activities remained relatively modest for most of the period, with net cash used in investing activities ranging from 57 million to 123 million between 2019 and 2022. However, 2023 marked a significant increase in capital outflows, reaching 305 million. This was driven primarily by a sharp increase in capital expenditures for property and equipment, which rose to 151 million in 2023 compared to 39 million in 2022. Consistent investment in capitalized software costs is observed annually, averaging approximately 68 million over the five-year period.
Financing and Debt Management: A strategic shift in financing is evident. In 2020, the organization focused on liquidity preservation, issuing 4,590 million in new borrowings. This was followed by a period of debt reduction, most notably in 2021 with 3,230 million in repayments. From 2022 onward, the focus shifted toward shareholder distributions. Repurchases of common stock increased aggressively, reaching a five-year high of 2,338 million in 2023. Dividend payments also resumed and grew, totaling 158 million in 2023 after being absent in 2021.
Liquidity and Cash Position: The cash and restricted cash balance peaked at 3,263 million at the end of 2020, reflecting the heavy borrowing and reduced spending of that year. This balance declined steadily as the organization deployed cash for debt repayment and share buybacks, ending 2023 at 875 million. The decline in ending cash is directly correlated with the acceleration of common stock repurchases and the increase in capital expenditures during the final two years of the analyzed period.

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