v3.24.3
DEBT AND EQUITY SECURITIES (Tables)
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
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, 2024December 31, 2023
Loyalty program (Note 9)
$923 $807 
Deferred compensation plans held in rabbi trusts (Note 9 and Note 11)
547 489 
Captive insurance company (Note 9)
110 94 
Total marketable securities held to fund operating programs$1,580 $1,390 
Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents and short-term investments(334)(320)
Marketable securities held to fund operating programs included in other assets$1,246 $1,070 
Schedule of Net Gains and Interest Income from Marketable Securities Held to Fund Operating Programs
Net unrealized and realized gains (losses) from marketable securities held to fund operating programs recognized on our condensed consolidated financial statements were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Unrealized gains (losses), net
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1)$(5)$(10)$19 $21 
Revenues for reimbursed costs (2)(3)(4)8 11 
Other income (loss), net (Note 19)
6 (5)7 — 
Other comprehensive income (loss)
(Note 14)
15 — 9 — 
Realized gains (losses), net
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1)$23 $1 $27 $5 
Revenues for reimbursed costs (2)11 1 13 3 
Other income (loss), net (Note 19)
— (1)— (1)
(1) Unrealized and realized gains and 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.
(2) Unrealized and realized gains and losses recognized in revenues for reimbursed costs related to investments held to fund rabbi trusts are offset by amounts recognized in reimbursed costs with no impact on net income.
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, 2024December 31, 2023
Interest-bearing money market funds$314 $284 
Common shares in Playa N.V. (Note 9)
94 105 
Time deposits (1)40 11 
Total marketable securities held for investment purposes$448 $400 
Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments(351)(294)
Marketable securities held for investment purposes included in other assets$97 $106 
(1) Time deposits have contractual maturities on various dates through 2026. The amortized cost of our time deposits approximates fair value.
Schedule of Unrealized Gain (Loss) on Investments Net unrealized gains (losses) recognized on our condensed consolidated statements of income were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Other income (loss), net (Note 19)
$(8)$(11)$(11)$9 
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, 2024Cash and cash equivalentsShort-term investmentsOther assets
Level One—Quoted Prices in Active Markets for Identical Assets
Interest-bearing money market funds$622 $622 $— $— 
Mutual funds and exchange-traded funds553 — — 553 
Common shares105 — — 105 
Level Two—Significant Other Observable Inputs
Time deposits65 24 13 28 
U.S. government obligations324 — 6 318 
U.S. government agencies24 — — 24 
Corporate debt securities274 — 20 254 
Mortgage-backed securities26 — — 26 
Asset-backed securities31 — — 31 
Municipal and provincial notes and bonds4 — — 4 
Total$2,028 $646 $39 $1,343 
December 31, 2023Cash and cash equivalentsShort-term investmentsOther assets
Level One—Quoted Prices in Active Markets for Identical Assets
Interest-bearing money market funds$599 $599 $— $— 
Mutual funds and exchange-traded funds495 — — 495 
Common shares114 — — 114 
Level Two—Significant Other Observable Inputs
Time deposits36 — 10 26 
U.S. government obligations250 — — 250 
U.S. government agencies37 — — 37 
Corporate debt securities212 — 5 207 
Mortgage-backed securities19 — — 19 
Asset-backed securities24 — — 24 
Municipal and provincial notes and bonds4 — — 4 
Total$1,790 $599 $15 $1,176 
Schedule of Debt Securities, Held-to-maturity We hold investments in third-party entities associated with certain of our hotels. The investments are redeemable on various dates through 2062 and recorded as HTM debt securities within other assets on our condensed consolidated balance sheets:
September 30, 2024December 31, 2023
HTM debt securities (1)$279 $53 
Less: allowance for credit losses(9)(13)
Total HTM debt securities, net of allowances$270 $40 
(1) At September 30, 2024, HTM debt securities included a $190 million preferred equity investment, net of a $36 million unamortized discount based on an imputed interest rate of 8.9% and a probability-weighted fair value adjustment related to our investment in the third-party entity that owns Hyatt Regency Orlando (see Note 7).
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:
20242023
Allowance at January 1$13 $31 
Provisions (reversals), net (1)(2)2 
Write-offs(2)(3)
Allowance at June 30$9 $30 
Reversals, net (1)— (17)
Allowance at September 30$9 $13 
(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 Recognized The fair value is estimated using a discounted future cash flow model, and the primary sensitivity in the model is the selection of an appropriate discount rate. Fluctuations in our assumptions could result in different estimates of fair value. Net unrealized gains recognized on our condensed consolidated financial statements were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Other comprehensive income (loss) (Note 14)
$2 $7 $3 $7