Gain (loss) on debt extinguishment

  
HILTON WORLDWIDE HOLDINGS INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in millions, except per share data)(unaudited)  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Revenues |  |  |  |  |  |  |  |
| Franchise and licensing fees | $ | 573  |  |  | $ | 451  |  |  | $ | 1,531  |  |  | $ | 1,062  |  |
| Base and other management fees | 76  |  |  | 49  |  |  | 206  |  |  | 116  |  |
| Incentive management fees | 52  |  |  | 26  |  |  | 132  |  |  | 60  |  |
| Owned and leased hotels | 295  |  |  | 199  |  |  | 727  |  |  | 376  |  |
| Other revenues | 28  |  |  | 18  |  |  | 71  |  |  | 56  |  |
|  | 1,024  |  |  | 743  |  |  | 2,667  |  |  | 1,670  |  |
| Other revenues from managed and franchised properties | 1,344  |  |  | 1,006  |  |  | 3,662  |  |  | 2,282  |  |
| Total revenues | 2,368  |  |  | 1,749  |  |  | 6,329  |  |  | 3,952  |  |
|  |  |  |  |  |  |  |  |
| Expenses |  |  |  |  |  |  |  |
| Owned and leased hotels | 263  |  |  | 200  |  |  | 705  |  |  | 452  |  |
| Depreciation and amortization | 39  |  |  | 46  |  |  | 123  |  |  | 143  |  |
| General and administrative | 93  |  |  | 107  |  |  | 287  |  |  | 302  |  |
| Other expenses | 13  |  |  | 12  |  |  | 35  |  |  | 31  |  |
|  | 408  |  |  | 365  |  |  | 1,150  |  |  | 928  |  |
| Other expenses from managed and franchised properties | 1,337  |  |  | 944  |  |  | 3,589  |  |  | 2,339  |  |
| Total expenses | 1,745  |  |  | 1,309  |  |  | 4,739  |  |  | 3,267  |  |
|  |  |  |  |  |  |  |  |
| Loss on sale of assets, net | —  |  |  | (8) |  |  | —  |  |  | (8) |  |
|  |  |  |  |  |  |  |  |
| Operating income | 623  |  |  | 432  |  |  | 1,590  |  |  | 677  |  |
|  |  |  |  |  |  |  |  |
| Interest expense | (106) |  |  | (98) |  |  | (295) |  |  | (302) |  |
| Gain on foreign currency transactions | —  |  |  | —  |  |  | 4  |  |  | 1  |  |
| Loss on debt extinguishment | —  |  |  | —  |  |  | —  |  |  | (69) |  |
| Other non-operating income, net | 10  |  |  | 6  |  |  | 32  |  |  | 16  |  |
|  |  |  |  |  |  |  |  |
| Income before income taxes | 527  |  |  | 340  |  |  | 1,331  |  |  | 323  |  |
|  |  |  |  |  |  |  |  |
| Income tax expense | (181) |  |  | (100) |  |  | (407) |  |  | (64) |  |
|  |  |  |  |  |  |  |  |
| Net income | 346  |  |  | 240  |  |  | 924  |  |  | 259  |  |
| Net loss attributable to noncontrolling interests | 1  |  |  | 1  |  |  | 3  |  |  | 4  |  |
| Net income attributable to Hilton stockholders | $ | 347  |  |  | $ | 241  |  |  | $ | 927  |  |  | $ | 263  |  |
|  |  |  |  |  |  |  |  |
| Earnings per share: |  |  |  |  |  |  |  |
| Basic | $ | 1.27  |  |  | $ | 0.86  |  |  | $ | 3.35  |  |  | $ | 0.94  |  |
| Diluted | $ | 1.26  |  |  | $ | 0.86  |  |  | $ | 3.32  |  |  | $ | 0.94  |  |
|  |  |  |  |  |  |  |  |
| Cash dividends declared per share | $ | 0.15  |  |  | $ | —  |  |  | $ | 0.30  |  |  | $ | —  |  |

  
See notes to condensed consolidated financial statements.3
