Revolving credit facility, maximum borrowing capacity

  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, 2021 |
|  | Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value |
|  | (in millions) |
| Management contracts recorded at Merger(1) | $ | 310  |  |  | $ | (275) |  |  | $ | 35  |  |
| Contract acquisition costs | 780  |  |  | (170) |  |  | 610  |  |
| Development commissions and other | 140  |  |  | (27) |  |  | 113  |  |
|  | $ | 1,230  |  |  | $ | (472) |  |  | $ | 758  |  |

\_\_\_\_\_\_\_\_\_\_\_\_(1)Represents intangible assets that were initially recorded at fair value as part of the 2007 transaction whereby we became a wholly owned subsidiary of affiliates of Blackstone Inc. (the "Merger").  
Amortization of our finite-lived intangible assets was as follows:  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |
|  | (in millions) |
| Recognized in depreciation and amortization expenses(1) | $ | 27  |  |  | $ | 32  |  |  | $ | 88  |  |  | $ | 103  |  |
| Recognized as a reduction of franchise and licensing fees and base and other management fees | 10  |  |  | 9  |  |  | 28  |  |  | 23  |  |

\_\_\_\_\_\_\_\_\_\_\_\_(1)Includes amortization expense associated with assets that were initially recorded at fair value at the time of the Merger of $11 million for both the three months ended September 30, 2022 and 2021 and $34 million and $35 million for the nine months ended September 30, 2022 and 2021, respectively.  
Note 5: Debt   
Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of September 30, 2022, were as follows:  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | September 30, |  | December 31, |
|  | 2022 |  | 2021 |
|  | (in millions) |
| Senior secured term loan facility with a rate of 4.83%, due 2026 | $ | 2,619  |  |  | $ | 2,619  |  |
| Senior notes with a rate of 5.375%, due 2025(1) | 500  |  |  | 500  |  |
| Senior notes with a rate of 4.875%, due 2027(1) | 600  |  |  | 600  |  |
| Senior notes with a rate of 5.750%, due 2028(1) | 500  |  |  | 500  |  |
| Senior notes with a rate of 3.750%, due 2029(1) | 800  |  |  | 800  |  |
| Senior notes with a rate of 4.875%, due 2030(1) | 1,000  |  |  | 1,000  |  |
| Senior notes with a rate of 4.000%, due 2031(1) | 1,100  |  |  | 1,100  |  |
| Senior notes with a rate of 3.625%, due 2032(1) | 1,500  |  |  | 1,500  |  |
| Finance lease liabilities with a weighted average rate of 5.85%, due 2022 to 2030 | 153  |  |  | 208  |  |
| Other debt of consolidated VIEs with a weighted average rate of 1.21%, due 2023 to 2029(2) | 36  |  |  | 26  |  |
|  | 8,808  |  |  | 8,853  |  |
| Less: unamortized deferred financing costs and discount | (77) |  |  | (87) |  |
| Less: current maturities of long-term debt(3) | (39) |  |  | (54) |  |
|  | $ | 8,692  |  |  | $ | 8,712  |  |

\_\_\_\_\_\_\_\_\_\_\_\_(1)These notes are collectively referred to as the Senior Notes and are jointly and severally guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than Hilton Domestic Operating Company Inc., an indirect wholly owned subsidiary of the Parent and the issuer of all of the series of Senior Notes. (2)Refer to Note 3: "Consolidated Variable Interest Entities" for additional information on the debt of our consolidated VIEs.(3)Represents current maturities of finance lease liabilities and borrowings of a consolidated VIE.  
Our senior secured credit facilities consist of a $1.75 billion senior secured revolving credit facility (the "Revolving Credit Facility") and a senior secured term loan facility (the "Term Loan"). The obligations of our senior secured credit facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic 8
