MARRIOTT INTERNATIONAL INC MD
For the period ended Dec 31, 2023. Filed Feb 13, 2024.
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FY2023 · Filed Feb 13, 2024
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Business Segments
NOTE 14. BUSINESS SEGMENTS
We discuss our operations in the followingtwo operating segments, both of which meet the applicable criteria for separate disclosure as a reportable business segment: (1) U.S. & Canada and (2) International.
In January 2024, we modified our segment structure as a result of a change in the way management intends to evaluate results and allocate resources within the Company. Beginning with the 2024 first quarter, we will report the following four operating segments: (1) U.S. & Canada, (2) Europe, Middle East, and Africa, (3) Asia Pacific excluding China, and (4) Greater China. Our Caribbean and Latin America operating segment will not meet the applicable criteria for separate disclosure as a reportable business segment, and as such, we will include its results in “Unallocated corporate and other.”
We evaluate the performance of our operating segments using “segment profits,” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, or merger-related costs. We assign gains and losses, equity in earnings or losses, and direct general, administrative, and other expenses to each of our segments. “Unallocated corporate and other” includes a portion of our revenues (such as fees we receive from our credit card programs and vacation ownership licensing agreements), revenues and expenses for our Loyalty Program, general, administrative, and other expenses, merger-related charges and other expenses, equity in earnings or losses, and other gains or losses that we do not allocate to our segments.
Our chief operating decision maker monitors assets for the consolidated Company but does not use assets by operating segment when assessing performance or making operating segment resource allocations.
Segment Revenues
The following table presents our revenues disaggregated by segment and major revenue stream for the last three fiscal years:
| 2023 · 2022 · 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions) · U.S. & Canada · International · Total · U.S. & Canada · International · Total · U.S. & Canada · International · Total | ||||||||||
| Gross fee revenues | $2,799 | $1,290 | $4,089 | $2,486 | $917 | $3,403 | $1,580 | $568 | $2,148 | |
| Contract investment amortization | (65) | (22) | (87) | (60) | (29) | (89) | (55) | (20) | (75) | |
| Net fee revenues | 2,734 | 1,268 | 4,002 | 2,426 | 888 | 3,314 | 1,525 | 548 | 2,073 | |
| Owned, leased, and other revenue | 506 | 937 | 1,443 | 479 | 801 | 1,280 | 282 | 467 | 749 | |
| Cost reimbursement revenue | 14,456 | 2,250 | 16,706 | 12,848 | 1,797 | 14,645 | 8,549 | 1,239 | 9,788 | |
| Total reportable segment revenue | $17,696 | $4,455 | $22,151 | $15,753 | $3,486 | $19,239 | $10,356 | $2,254 | $12,610 | |
| Unallocated corporate and other | 1,562 | 1,534 | 1,247 | |||||||
| Total revenue | $23,713 | $20,773 | $13,857 | |||||||
Revenues attributed to operations located outside the U.S. were $5,160 million in 2023, $4,032 million in 2022, and $2,615 million in 2021, including cost reimbursement revenue outside the U.S. of $2,806 million in 2023, $2,231 million in 2022, and $1,553 million in 2021.
Segment Profits
| (in millions) | 2023 | 2022 | 2021 |
|---|---|---|---|
| U.S. & Canada (1) | $2,724 | $2,446 | $1,394 |
| International (2) | 1,121 | 794 | 258 |
| Unallocated corporate and other | 68 | 251 | (80) |
| Interest expense, net of interest income | (535) | (377) | (392) |
| Provision for income taxes | (295) | (756) | (81) |
| Net income | $3,083 | $2,358 | $1,099 |
(1)Includes cost reimbursements, net of $57 million in 2023, $134 million in 2022, and $51 million in 2021.
(2) Includes cost reimbursements, net of $17 million in 2023, $49 million in 2022, and $14 million in 2021.
Segment profits attributed to operations located outside the U.S. were $1,258 million in 2023, $898 million in 2022, and $297 million in 2021, including cost reimbursements, net (cost reimbursement revenue, net of reimbursed expenses) outside the U.S. of $23 million in 2023, $67 million in 2022, and $14 million in 2021.
Depreciation, Amortization, and Other
| (in millions) | 2023 | 2022 | 2021 |
|---|---|---|---|
| U.S. & Canada | $84 | $81 | $92 |
| International | 77 | 85 | 106 |
| Unallocated corporate and other | 28 | 27 | 22 |
| $189 | $193 | $220 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.