v3.25.4
FAIR VALUE OF FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. We present the carrying amounts and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments in the following table:
 At Year-End 2025At Year-End 2024
(in millions)
Carrying Amount
Fair Value
Carrying Amount
Fair Value
Notes receivable
$151 $149 $136 $133 
Total noncurrent financial assets$151 $149 $136 $133 
Senior Notes$(13,686)$(13,836)$(11,419)$(11,083)
Commercial paper(1,177)(1,177)(1,582)(1,582)
Total noncurrent financial liabilities$(14,863)$(15,013)$(13,001)$(12,665)
Our notes receivable include mezzanine and other loans to hotel owners, generally to facilitate the development or renovation of a hotel and sometimes to facilitate brand programs or initiatives. We estimate the fair value of our notes receivable by discounting cash flows using risk-adjusted rates, both of which are Level 3 inputs.
We determine the fair value of our Senior Notes using quoted market prices, which are directly observable Level 1 inputs. The carrying amount of our commercial paper borrowings approximate fair value due to their short maturity and because they bear interest at a market rate.
See the “Fair Value Measurements” caption of Note 2 for more information on the input levels we use in determining fair value.