XML 45 R34.htm IDEA: XBRL DOCUMENT v3.25.3
DEBT AND EQUITY SECURITIES (Tables)
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Variable Interest Entities
The following table summarizes the VIE's assets and liabilities, including the effect of foreign currency translation, recorded on our condensed consolidated balance sheets at September 30, 2025 and December 31, 2024. The assets may only be used to settle obligations of the consolidated VIE, if any. In addition, there is no recourse to us for the consolidated VIE's liabilities.
September 30, 2025December 31, 2024
Cash and cash equivalents$23 $2 
Receivables3 15 
Total current assets26 17 
Operating lease right-of-use assets1 1 
Goodwill177 147 
Intangibles, net570 515 
Other assets57 50 
Total assets$831 $730 
Accounts payable$1 $15 
Accrued expenses and other current liabilities4 1 
Total current liabilities5 16 
Long-term operating lease liabilities1 1 
Other long-term liabilities184 161 
Total liabilities$190 $178 
Schedule of Marketable Securities Held to Fund Operating Programs Marketable securities held to fund operating programs, which are recorded at fair value on our condensed consolidated balance sheets, were as follows:
September 30, 2025December 31, 2024
Loyalty program (Note 9)
$748 $642 
Deferred compensation plans held in rabbi trusts (Note 9)
588 548 
Captive insurance company (Note 9)
112 86 
Total marketable securities held to fund operating programs$1,448 $1,276 
Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents and short-term investments(96)(55)
Marketable securities held to fund operating programs included in other assets$1,352 $1,221 
The following table summarizes net gains (losses) recognized in other income (loss), net on our condensed consolidated statements of income (loss) (see Note 19):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Net gains (losses)$— $(8)$10 $(11)
Less: net gains recognized on shares during the period— — (10)— 
Unrealized gains (losses), net recognized on shares held at period end$— $(8)$— $(11)
Schedule of Net Gains (Losses) and Interest Income from Marketable Securities Held to Fund Operating Programs
Net unrealized and realized gains (losses) from marketable securities held to fund operating programs recognized on our condensed consolidated financial statements were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Unrealized gains (losses), net
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1)
$20 $(5)$36 $19 
Revenues for reimbursed costs (2)
10 (3)17 8 
Other income (loss), net (Note 19)
2 6 7 7 
Other comprehensive income (loss)
(Note 14)
2 15 13 9 
Realized gains, net
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1)
$2 $23 $5 $27 
Revenues for reimbursed costs (2)
1 11 3 13 
Other income (loss), net (Note 19)
1 — 1 — 
(1) Unrealized and realized gains (losses) recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts are offset by amounts recognized in general and administrative expenses and owned and leased expenses with no impact on net income (loss).
(2) Unrealized and realized gains (losses) recognized in revenues for reimbursed costs related to marketable securities held to fund rabbi trusts are offset by amounts recognized in reimbursed costs with no impact on net income (loss).
Schedule of Marketable Securities Held for Investment Purposes Marketable securities held for investment purposes, which are recorded at cost or fair value, depending on the nature of the investment, on our condensed consolidated balance sheets, were as follows:
September 30, 2025December 31, 2024
Interest-bearing money market funds$244 $600 
Time deposits (1)40 379 
Ordinary shares in Playa Hotels (Note 9)
— 154 
Total marketable securities held for investment purposes$284 $1,133 
Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments(281)(975)
Marketable securities held for investment purposes included in other assets$3 $158 
(1) Time deposits have contractual maturities on various dates through 2027. The amortized cost of our time deposits approximates fair value.
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis We measure marketable securities at fair value on a recurring basis:
September 30, 2025Cash and cash equivalentsShort-term investmentsOther assets
Level One—Quoted Prices in Active Markets for Identical Assets
Interest-bearing money market funds$308 $308 $— $— 
Mutual funds and exchange-traded funds596 — — 596 
Common shares12 — — 12 
Level Two—Significant Other Observable Inputs
Time deposits133 17 20 96 
U.S. government obligations287 — 6 281 
U.S. government agencies31 — — 31 
Corporate debt securities289 — 26 263 
Mortgage-backed securities36 — — 36 
Asset-backed securities36 — — 36 
Municipal and provincial notes and bonds4 — — 4 
Total$1,732 $325 $52 $1,355 
December 31, 2024Cash and cash equivalentsShort-term investmentsOther assets
Level One—Quoted Prices in Active Markets for Identical Assets
Interest-bearing money market funds$638 $638 $— $— 
Mutual funds and exchange-traded funds555 — — 555 
Ordinary and common shares164 — — 164 
Level Two—Significant Other Observable Inputs
Time deposits404 20 355 29 
U.S. government obligations307 — 5 302 
U.S. government agencies21 — — 21 
Corporate debt securities249 — 12 237 
Mortgage-backed securities29 — — 29 
Asset-backed securities38 — — 38 
Municipal and provincial notes and bonds4 — — 4 
Total$2,409 $658 $372 $1,379 
Schedule of Debt Securities, Held-to-maturity We hold investments in third-party entities associated with certain of our hotels. The investments are recorded as HTM debt securities within other assets on our condensed consolidated balance sheets:
September 30, 2025December 31, 2024
HTM debt securities (1)$315 $276 
Less: allowance for credit losses(9)(9)
Total HTM debt securities, net of allowances$306 $267 
Gross HTM debt securities on nonaccrual status$16 $— 
(1) Includes a $194 million preferred equity investment, net of a $31 million and $35 million unamortized discount, at September 30, 2025 and December 31, 2024, respectively, in a third-party entity that owns a managed hotel. Accretion of the discount was recognized in interest income within other income (loss), net on our condensed consolidated statements of income (loss) (see Note 19) and was based on an imputed interest rate of approximately 8.9%.
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss
The following table summarizes the activity in our HTM debt securities allowance for credit losses:
20252024
Allowance at January 1$9 $13 
Provisions (reversals), net (1)— (2)
Write-offs— (2)
Allowance at June 30$9 $9 
Provisions (1)— — 
Allowance at September 30$9 $9 
(1) Provisions for credit losses were partially or fully offset by interest income recognized in the same periods (see Note 19).
Schedule of Changes in Fair Value of Net Unrealized Gains (Losses) Recognized
Net unrealized gains (losses) recognized on our condensed consolidated financial statements were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Other comprehensive income (loss) (Note 14)
$— $2 $(12)$3