1. What is the Current Ratio of Hilton in 2018?
2. If the upper quartile, median, and lower quartile for this ratio in the hotel industry are 1.7, 0.9, and 0.6 respectively, how would you characterize the liquidity of Hilton?
3. What is the Total Assets Turnover ratio of Hilton in 2018?
4. If the upper quartile, median, and lower quartile for this ratio in the hotel industry are 0.7, 0.4, and 0.3 respectively, how would you characterize the ability of Hilton in utilizing its assets?
5. TIE is an important solvency ratio. Given the upper quartile, median, and lower quartile for this ratio in the hotel industry are 3.1, 2.0, and 0.9, comment on Hilton's solvency status for 2018.

PART III Item 10. Directors, Executive Officers and Corporate Governance The information required by this item is incorporated by reference to our definitive proxy statement for the 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2018 . Item 11. Executive Compensation The information required by this item is incorporated by reference to our definitive proxy statement for the 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2018 . Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Securities Authorized for Issuance Under Equity Compensation Plans The following table provides certain information about common stock that may be issued under our existing equity compensation plans. The only plan pursuant to which the Company may grant new equity-based awards is the Hilton 2017 Omnibus Incentive Plan, which replaced the Company's 2013 Omnibus Incentive Plan. The number of securities to be issued upon exercise of outstanding options, warrants and rights reflected in the table below includes shares underlying equity-based awards granted, and that remained outstanding as of December 31, 2018 under the equity incentive plans. As of December 31, 2018 Number of securities to be Number of securities issued upon exercise of Weighted-average exercise remaining available for outstanding options, price per share of outstanding future issuance under equity warrants and rights options compensation plan Equity compensation plans approved by stockholders 5,841,514 58.50 16,113,757 (1) Includes shares issuable upon exercise of stock options and 3,450,224 shares that may be issued upon the vesting of restricted stock units, shares that may be issued upon the vesting of performance shares and director deferred share units and dividend equivalents accrued thereon. The number of shares to be issued in respect of performance shares has been calculated based on the assumption that the maximum levels of performance applicable to the performance shares will be achieved. The restricted stock units, performance shares and deferred share units cannot be exercised for consideration. The remaining information required by this item is incorporated by reference to our definitive proxy statement for the 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2018 Item 13. Certain Relationships and Related Transactions, and Director Independence The information required by this item is incorporated by reference to our definitive proxy statement for the 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2018 . Item 14. Principal Accounting Fees and Services The information required by this item is incorporated by reference to our definitive proxy statement for the 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 2018 . 1 18December 31, 2017 Non- Parent HWF Issuers HOC Guarantors Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents S 2 18 550 $ 570 Restricted cash and cash equivalents 61 10 29 100 Accounts receivable, net 18 712 275 1,005 Intercompany receivables - 40 (40) Prepaid expenses - 25 24 84 (6) 127 Income taxes receivable - - - 60 (24) 36 Other 13 155 169 Total current assets 107 837 1,133 (70) 2,007 Intangibles and Other Assets: Investments in subsidiaries 1,697 7,067 8,326 1,697 (18,787) Goodwill 3,824 1,366 5,190 Brands - - - 4,405 485 4,890 Management and franchise contracts, net - - 2 645 306 953 Other intangible assets, net 1 283 149 433 Property and equipment, net 20 67 266 353 Deferred income tax assets 6 104 127 (126) 111 Other 20 32 67 172 291 Total intangibles and other assets 1,703 7,087 3,485 10,98 2,871 (18,913) 12,221 TOTAL ASSETS 1,703 7,087 8,592 11,825 4,004 (18,983) 14,228 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other 15 $ 20 $ 184 $ 576 624 (3) $ 1,416 Current portion of deferred revenues 90 266 13 (3) 366 intercompany payables - 40 (40) Current maturities of long-term debt - 32 - 14 46 Income taxes payable 1 - - 36 (24) 12 Current portion of liability for guest loyalty program - 622 622 Total current liabilities 15 52 314 1,464 687 (70) 2,462 Long-term debt - 5,333 983 240 6,556 Deferred revenues - 770 59 829 Deferred income tax liabilities - 5 1,052 - (126) 931 Liability for guest loyalty program - 839 - 839 Other - 228 64 628 920 Total liabilities 15 5,390 1,525 4,189 1,614 (196) 12,537 Equity: Total Hilton stockholders' equity 1,688 1,697 7,067 7,636 2,387 (18,787) 1,688 Noncontrolling interests Total equity 1,688 1,697 7.067 7,636 2,390 (18,787) 1,691 TOTAL LIABILITIES AND EQUITY 1,703 7,087 8,592 11,825 4,004 18,983) 14,228 109December 31, 2018 Non- Parent HWF Issuers HOC Guarantors Guarantors Eliminations Total (in millions) ASSETS Current Assets: Cash and cash equivalents 3 17 383 403 Restricted cash and cash equivalents 34 15 32 81 Accounts receivable, net 10 735 405 1,150 Intercompany receivables 40 (40) Prepaid expenses 52 37 80 (9) 160 Income taxes receivable 23 (3) 20 Other 13 154 169 Total current assets 100 840 1,094 (52) 1,983 Intangibles and Other Assets: Investments in subsidiaries 557 5,131 7,930 557 (14,175) Goodwill - 3,824 1,336 5,160 Brands 4,404 465 4.869 Management and franchise contracts, net - - 556 316 872 Other intangible assets, net 287 128 415 Property and equipment, net - - 27 65 275 367 Deferred income tax assets 4 94 90 (98) 90 Other 23 33 22 161 239 Total intangibles and other assets 561 5,154 3,084 9.715 2,771 (14,273) 12,012 TOTAL ASSETS 561 5,155 3,184 10,555 3,865 (14,325) 13,995 LIABILITIES AND EQUITY Current Liabilities: Accounts payable, accrued expenses and other 10 19 $ 229 S 529 743 $ 1,530 Current portion of deferred revenues 106 239 14 (9) 350 Intercompany payables 40 (40) Current maturities of long-term debt - - 16 16 Income taxes payable 22 (3) 19 Current portion of liability for guest loyalty program - 700 700 Total current liabilities 10 19 375 1.468 795 (52) 2,615 Long-term debt - 4,573 2,467 226 - 7,266 Deferred revenues 762 64 - 826 Deferred income tax liabilities - 6 962 28 (98) 898 Liability for guest loyalty program 969 - 969 Other - 211 93 559 363 Total liabilities 10 4.598 3.053 4.254 ,672 (150) 13,437 Equity Total Hilton stockholders' equity 551 557 5.131 6.301 2,186 (14,175) 551 Noncontrolling interests Total equity 551 557 5,131 6,301 2,193 (14,175) TOTAL LIABILITIES AND EQUITY 561 5,155 8,184 10,555 3.865 (14,325) 13,995 108Property and equipment, act by country was as follows: December 3|. 2|] 1 8 20] 7 (in millions} US. $ 109 $ 105 Japan 106 94 United Kingdom 75 82 Germany 40 36 All other 3? 36 $ 36? $ 353 ('Jther than the countries included above, there were no countries that individually represented more than 10 percent of total property and equipment, net as of December 3|, 2018 and 2m 7. Note 20 : Commitments and Contingencies We provide performance guarantees to certain owners of hotels that we operate under management contracts. Most oflhese guarantees allow us to terminate the contract, rather than fund shortfalls, ifspecilied operating performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of December 3|, 2018 , we had live performance guarantees, with expirations ranging from 2019 to 2030 , and possible cash outlays totaling approximately $36 million . Our obligations under these guarantees in future periods are dependent on the operating performance level ofthc related hotel over the remaining term of the performance guarantee. We do not have any letters of credit pledged as collateral against these guarantees. As of December 3 l, 2018 and 201? , we accmed liabilities of$ 12 million and $21 million , respectively, for our performance guarantees, which were related to one hotel and two hotels, respectively, of VlEs for which we were not the primary beneciary. We may enter into new contracts containing performance guarantees in the future, which could increase our possible cash outlays. We have entered into agreements with owners of certain hotels that we operate or will operate under a management or franchise contract to nance capital expenditures at the hotels for approximately $29 million . As of December 31, 2018, we had not funded any of these commitments and expect to fund $19 million in 2019 and $10 million in 2020. We receive fees from managed and franchised properties to operate our marketing. sales and brand programs on behalf of hotel owners. As ot'December 31, 2018 and 201'} , we had collected an aggregate of$375 million and $402 million in excess ot'amounts expended. respectively, across all programs. We are involved in various claims and lawsuits arising in the ordinary course ol'business, some ofwhich include claims for substantial sums. While the ultimate results ol'claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution ol'all pending or threatened claims and litigation as of December 31, 20 | 8 will not have a material adverse effect on our consolidated financial position, results ofoperations or cash flows. Note 2| : Related Party Transactions Equity Investments We hold equity investments in entities that own or lease properties that we manage. Amounts included in our consolidated balance sheets related to these management contracts as of December 3 l, 2018 and 2013If primarily included $19 million and $20 million , respectively, of management and franchise contracts, net. Amounts included in our consolidated statements of operations for the years ended December 31, 2018, 201? and 2016 primarily included: (i) management and franchise fees of $10 million , $10 million and $12 million , respectively; (ii) other revenues from managed and franchised properties of $22 million , $22 million and $21 million , respectively; and (iii) other expenses from managed and franchised properties of $22 million , $22 million and $21 million , respectively. Blackstone Blackstone directly and indirectly owns or controls hotels that we manage or franchise and for which we receive fees in connection with the related management and franchise contracts. Our maximum exposure to loss related to these hotels is limited to the amounts discussed below: therefore, our involvement with these hotels does not expose us to additional variability or risk of loss. Due to sales of the Company's common stock. Blackstone was no longer considered a related party of 106 The following table presents operating income for our reportable segments. reconciled to consolidated income from continuing operations before income taxes: Year Ended December 31. 2018 2017 2016 (in millions) Management and franchise '\" $ 2.157" $ 1,927 $ [.52] Ownership "' 108 121) 113 Segment operating income 2,265 2,047 1,634 Amortization of contract acquisition costs (2?) [17) (16) Other revenues, less other expenses 47 49 16 Net other expenses from managed and franchised properties (85) (ll?!) [12) Depreciation and amortization (325) (336) (353) General and administrative [443) (439) [409) Gain on sales of assets, net _ _ 3 Operating income 1.432 I .132 868 Interest expense (371) (35 l) [334) (lain (loss) on foreign currency transactions (1 I) 3 (l6) Loss on debt cxtinguishment [60) Other non-operating income. net 28 2') 2?. income from continuing operations before income taxes 5 1.028 $ 753 $ 540 "' Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operation s. The following table presents total assets for our reportable segments, reconciled to consolidated amounts: December 31. 2018 2017 (in millions) Management and franchise S 1 1,362 $ 11,505 Ownership 927 964 Corporate and other 1,706 [.759 S 13.995 .'n' H.228 'I'he followingI table presents capital expenditures for property and equipment for our reportable segments. reconciled to consolidated capital expenditures ol' continuing operations: Year Ended December 31, 2013 201'}I 2016 (in millions) Ownership 5 42 $ 32 $ 45 Corporate and other 30 26 1'.Ir $ 72 $ 58 $ 62 Total revenues by country were as follows: Year Ended December 31. 21118 2111'? 2016 (in millions) us. 5 6.848 $ 6.046 $ 4.524 United Kingdom 545 544 942 All other 1513 I,54| |,||0 $ 8,906 $ 8.t3| 5 6.576 Other than the countries included above. there were no countries that individually represented more than 10 percent of total revenues for the years ended December 31. 2018 . 2017 and 2016. Note 19 : Business Segments We are a hospitality company with operations organized in two distinct operating segments: (i) management and franchise and (ii) ownership. These segments are managed and reported separately because of their distinct economic characteristics. The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels operated or managed by someone other than us. As of December 31, 2018 , this segment included 689 managed hotels and 4,874 franchised hotels consisting of 882,873 total rooms. This segment also earns licensing fees from HG V and co-brand credit card arrangements, as well as fees for managing properties in our ownership segment. As of December 31, 2018 , the ownership segment included 71 properties totaling 21,720 rooms, comprising 62 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and six hotels owned or leased by unconsolidated affiliates. The performance of our operating segments is evaluated primarily on operating income, without allocating other revenues and expenses or general and administrative expenses. The following table presents revenues for our reportable segments, reconciled to consolidated amounts: Year Ended December 31, 2018 2017 2016 (in millions) Franchise and licensing fees 1,537 1,326 1,095 Base and other management fees () 385 379 284 Incentive management fees 235 222 142 Management and franchise 2,157 1,927 1,521 Ownership 1,484 1,432 1,434 Segment revenues 3,641 3,359 2,955 Amortization of contract acquisition costs (27 ) (17) (16) Other revenues 98 105 82 Direct reimbursements from managed and franchised properties (2 2,88 2.572 1,644 Indirect reimbursements from managed and franchised properties (2) 2,357 2,155 1,953 Intersegment fees elimination () (44) (43) (42) Total revenues 8,906 8,131 6,576 (1) In Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our consolidated statements of operations. (2) Included in other revenues from managed and franchised properties in our consolidated statements of operations. 104Note 18 : Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, were as follows: Currency Translation Pension Liability Cash Flow Hedge Adjustment ) Adjustment Adjustment Total (in millions) Balance as of December 31, 2015 (580) (194) (10) $ (784) Other comprehensive loss before reclassifications (157) (63) (9) (229) Amounts reclassified from accumulated other comprehensive loss 6 7 12 Net current period other comprehensive loss (158) (57) (2) (217) Balance as of December 31, 2016 738) (251) (12) (1,001) Other comprehensive income (loss) before reclassifications 161 15 (4) 172 Amounts reclassified from accumulated other comprehensive loss 1 7 17 25 Net current period other comprehensive income 162 22 13 97 Spin-offs of Park and HGV 63 - 63 Balance as of December 31, 2017 (513) (229) 1 (741) Other comprehensive income (loss) before reclassifications (70) (18) 17 (71) Amounts reclassified from accumulated other comprehensive loss 9 5 14 Net current period other comprehensive income (loss) (70) (9) 22 (57) Cumulative effect of the adoption of ASU 2018-02 38 (22) 16 Balance as of December 31, 2018 (545) $ (260) 23 (782) Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature. The following table presents additional information about reclassifications out of accumulated other comprehensive loss (amounts in parentheses indicate a loss in our consolidated statements of operations): Year Ended December 31, 2018 2017 2016 in millions) Currency translation adjustment: Sale or liquidation of investment in foreign entity () $ - (2) $ Gains on net investment hedges () Total currency translation adjustment reclassifications for the period, net of taxes - (1) Pension liability adjustment: Amortization of prior service cost () (3) (3) (4 ) Amortization of net loss (2) (8) (7 ) (5) Tax benefit (3) 2 3 3 Total pension liability adjustment reclassifications for the period, net of taxes (9) (7 ) (6) Cash flow hedge adjustment: Dedesignated interest rate swaps (") (6) (26) (12) Tax benefit(3) 1 9 5 Total cash flow hedge adjustment reclassifications for the period, net of taxes (5) (17) (7) Total reclassifications for the period, net of taxes (14) (25) (12) 1) Reclassified out of accumulated other comprehensive loss to gain (loss) on foreign currency transactions in our consolidated statements of operations. The related tax benefits for the years ended December 31, 2017 and 2016 were less than $1 million and were reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (2) Reclassified out of accumulated other comprehensive loss to other non-operating income, net in our consolidated statements of operations. These amounts were included in the computation of net periodic pension cost (credit). See Note 15 : " Employee Benefit Plans " for additional information. (3) Reclassified out of accumulated other comprehensive loss to income tax benefit (expense) in our consolidated statements of operations. (4) Reclassified out of accumulated other comprehensive loss to interest expense in our consolidated statements of operations. See Note 11 : " Derivative Instruments and Hedging Activities " for additional information. 1032017 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues 1,896 $ 2,076 $ 2,091 $ 2,068 $ 8,131 Operating income 217 324 332 259 1,132 Net income 48 151 160 730 1,089 Net income attributable to Hilton stockholders 47 150 158 729 1,084 Basic earnings per share 0.14 $ 0.46 $ 0.49 2.29 $ 3.34 Diluted earnings per share () 0.14 $ 0.46 0.49 S 2.27 3.32 (1) The sum of the earnings per share for the four quarters differs from annual earnings per share due to the required method of computing the weighted average shares outstanding in interim periods. 116Year Ended December 31, 2016 Non- Parent HWF Issuers HOC Guarantors Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities S (37) $ 866 1,086 (605) 1,310 Investing Activities: Capital expenditures for property and equipment - - - (9) (308) (317) Payments received on other financing receivables 1 2 3 Issuance of intercompany receivables - (192) (42) 234 Payments received on intercompany receivables 1 - - 192 (192) Capitalized software costs (73 ) (8 ) (81) Other (6) (37) (28) Net cash used in investing activities (6) (117) (342) 42 (423) Financing Activities: Borrowings - 1,000 - 3,715 - 4,715 Repayment of debt - (266 ) (4,093) - (4,359) Debt issuance costs (17) (20) (39) (76) Intercompany borrowings - - 42 192 (234) 1 1 Repayment of intercompany borrowings - - (192) 192 Intercompany transfers 277 326 (890 ) (854) 1,141 Dividends paid (277 ) - - (277) Intercompany dividends - - - (605) 605 Distributions to noncontrolling interests - - - - (32) - (32) Tax withholdings on share-based compensation (15) (15) Net cash provided by (used in) financing activities 90 (827) 87 563 (44) Effect of exchange rate changes on cash, restricted cash and cash equivalents (15) (15) Net increase (decrease) in cash, restricted cash and cash equivalents 90 (78) 816 828 Cash, restricted cash and cash equivalents from continuing operations, beginning of period 109 524 633 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period 223 223 Cash, restricted cash and cash equivalents, beginning of period 109 747 856 Cash, restricted cash and cash equivalents from continuing operations, end of period 90 31 1,062 1,183 Cash, restricted cash and cash equivalents from discontinued operations, end of period 501 501 Cash, restricted cash and cash equivalents, end of period 90 31 1,563 1,684 Note 24 : Selected Quarterly Financial Information The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to fairly present our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues S 2,074 $ 2,291 2,253 2,288 $ 8,906 Operating income 279 406 385 362 1,432 Net income 163 217 164 225 769 Net income attributable to Hilton stockholders 161 217 162 224 764 Basic earnings per share () 0.51 $ 0.72 $ 0.55 $ 0.76 $ 2.53 Diluted earnings per share () 0.51 S 0.71 0.54 $ 0.75 $ 2.50 115Year Ended December 31, 2016 Non- Parent HWF Issuers HOC Guarantors Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities S (37) $ 866 1,086 (605) 1,310 Investing Activities: Capital expenditures for property and equipment - - - (9) (308) (317) Payments received on other financing receivables 1 2 3 Issuance of intercompany receivables - (192) (42) 234 Payments received on intercompany receivables 1 - - 192 (192) Capitalized software costs (73 ) (8 ) (81) Other (6) (37) (28) Net cash used in investing activities (6) (117) (342) 42 (423) Financing Activities: Borrowings - 1,000 - 3,715 - 4,715 Repayment of debt - (266 ) (4,093) - (4,359) Debt issuance costs (17) (20) (39) (76) Intercompany borrowings - - 42 192 (234) 1 1 Repayment of intercompany borrowings - - (192) 192 Intercompany transfers 277 326 (890 ) (854) 1,141 Dividends paid (277 ) - - (277) Intercompany dividends - - - (605) 605 Distributions to noncontrolling interests - - - - (32) - (32) Tax withholdings on share-based compensation (15) (15) Net cash provided by (used in) financing activities 90 (827) 87 563 (44) Effect of exchange rate changes on cash, restricted cash and cash equivalents (15) (15) Net increase (decrease) in cash, restricted cash and cash equivalents 90 (78) 816 828 Cash, restricted cash and cash equivalents from continuing operations, beginning of period 109 524 633 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period 223 223 Cash, restricted cash and cash equivalents, beginning of period 109 747 856 Cash, restricted cash and cash equivalents from continuing operations, end of period 90 31 1,062 1,183 Cash, restricted cash and cash equivalents from discontinued operations, end of period 501 501 Cash, restricted cash and cash equivalents, end of period 90 31 1,563 1,684 Note 24 : Selected Quarterly Financial Information The following table sets forth the historical unaudited quarterly financial data for the periods indicated. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to fairly present our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Year (in millions, except per share data) Revenues S 2,074 $ 2,291 2,253 2,288 $ 8,906 Operating income 279 406 385 362 1,432 Net income 163 217 164 225 769 Net income attributable to Hilton stockholders 161 217 162 224 764 Basic earnings per share () 0.51 $ 0.72 $ 0.55 $ 0.76 $ 2.53 Diluted earnings per share () 0.51 S 0.71 0.54 $ 0.75 $ 2.50 115Year Ended December 31, 2017 HWF Non- Parent Issuers HOC Guarantors Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities $ - $ (113) $ (103) $ 950 285 $ (170) 849 Investing Activities: Capital expenditures for property and equipment (12) (12) (34) (58) Payments received on other financing receivables - - 7 Capitalized software costs 1 (75) - (75) Other (13) ( 8 ) ( 3 ) (21) Net cash used in investing activities (13) (12) (88) (31) (3) (147) Financing Activities: Borrowings - 1,822 - - 2 - 1,824 Repayment of debt - (1,852) - - (8) - (1,860) Debt issuance costs and redemption premium (69) - - (69) Repayment of intercompany borrowings (3 ) 3 Intercompany transfers 1,086 225 122 (865) (568) Dividends paid (195) (195) Intercompany dividends - - (170) 170 Cash transferred in spin-offs of Park and HGV (501) (501) Repurchases of common stock (891) - - (891) Distributions to noncontrolling interests 1 - (1) Tax withholdings on share-based compensation (31) (31) Net cash provided by (used in) financing activities 126 88 (865) (1,246) 173 (1,724) Effect of exchange rate changes on cash, restricted cash and cash equivalents Net decrease in cash, restricted cash and cash equivalents (27) (3) (984) (1,014) Cash, restricted cash and cash equivalents from continuing operations, beginning of period 90 31 1.062 1,183 Cash, restricted cash and cash equivalents from discontinued operations, beginning of period - 501 501 Cash, restricted cash and cash equivalents, beginning of period 90 31 1,563 1,684 Cash, restricted cash and cash equivalents, end of period 63 28 579 670 114Year Ended December 31, 2018 HWF Parent Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Operating Activities: Net cash provided by (used in) operating activities S - $ (185) $ (8) $ 1,267 181 $ - $ 1,255 Investing Activities: Capital expenditures for property and equipment - (9) (7) (56) - (72) Payments received on other financing receivables - - - 49 - 50 Capitalized software costs - - - (87) (87) Other - (6) (16) (22) Net cash used in investing activities (9) (51) (71) (131) Financing Activities: Borrowings - 175 1,500 - 1,676 Repayment of debt (985) (20) - (1,005) Debt issuance costs (21) - (21) Intercompany transfers 1,902 995 (1,444) (1,209) (244) - Dividends paid (181) (181) Repurchases of common stock (1,721) - 1 (1,721) Distributions to noncontrolling interests (1) (1) Tax withholdings on share-based compensation (44) - - (44) Acquisition of noncontrolling interest (3) (3) Net cash provided by (used in) financing activities 185 (9) (1,212) (264) (1,300) Effect of exchange rate changes on cash, restricted cash and cash equivalents (10) (10) Net increase (decrease) in cash, restricted cash and cash equivalents (26) 4 (164) (186) Cash, restricted cash and cash equivalents, beginning of period 63 28 579 670 Cash, restricted cash and cash equivalents, end of period 37 32 415 484 113Year Ended December 31, 2016 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees 21 974 106 (10) $ 1,091 Base and other management fees 122 108 230 Incentive management fees 16 126 142 Owned and leased hotels 1,434 - 1,434 Other revenues 10 61 82 31 1,173 1,785 (10) 2,979 Other revenues from managed and franchised properties 32 3,053 512 3,597 Total revenues 63 4,226 2,297 (10) 6,576 Expenses Owned and leased hotels 1,279 1,279 1 1 1 Depreciation and amortization 266 86 353 General and administrative 90 203 116 109 Other expenses - 1 31 44 (10) 66 - 92 500 1,525 (10) 2,107 Other expenses from managed and franchised properties 32 3,083 494 3,609 Total expenses 124 3,583 2,019 (10) 5,716 Gain on sales of assets, net - - Operating income (loss) (61) 643 286 868 Interest expense (261) (14) (12) (47) (334) Gain (loss) on foreign currency transactions 11 (150) 123 (16) Other non-operating income, net 13 22 Income (loss) from continuing operations before income taxes and equity in losses from subsidiaries (260) (63) 488 375 540 Income tax benefit (expense) 193 100 26 (297) (579) (557) Income (loss) from continuing operations before equity in losses from subsidiaries 193 (160) (37) 191 (204) (17) Equity in losses from subsidiaries (220) (60) (23) (220) 523 Loss from continuing operations, net of taxes (27) (220) (60) (29) (204) 523 (17) Income from discontinued operations, net of taxes 365 365 365 426 375 (1,525) 371 Net income 338 145 305 397 171 (1,002) 354 Net income attributable to noncontrolling interests (16) (16) Net income attributable to Hilton stockholders 338 145 305 397 155 (1,002) 338 Comprehensive income 121 $ 143 310 326 21 (785) $ 136 Comprehensive income attributable to noncontrolling interests (15) (15) Comprehensive income attributable to Hilton stockholders 121 143 310 326 6 (785) 121 112Year Ended December 31, 2017 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total in millions Revenues Franchise and licensing fees 143 1,077 118 (17) $ 1,321 Base and other management fees 195 128 324 Incentive management fees 76 146 222 Owned and leased hotels 1,432 1,432 Other revenues 31 70 11 (7) 105 175 1,418 1,835 (24) 3,404 Other revenues from managed and franchised properties 159 3,986 582 4,727 Total revenues 334 5,404 2,417 (24) 8,131 Expenses Owned and leased hotels - - - 1,269 - 1,269 Depreciation and amortization - 5 242 89 - 336 General and administrative - 327 118 (6) 439 Other expenses 17 29 27 (17) - 349 271 1,503 (23) 2,100 Other expenses from managed and franchised properties 147 4,147 605 4,899 Total expenses 496 4,418 2,108 (23) 6,999 Gain (loss) on sales of assets, net - (1) Operating income (loss) (162) 985 310 (1) 1,132 Interest expense - (244) (61) (47 ) 1 (351) Gain (loss) on foreign currency transactions - 10 124 (131 ) 3 Loss on debt extinguishment (60) (60) Other non-operating income (loss), net (3) 7 21 29 Income (loss) before income taxes and equity in earnings from subsidiaries (307) (209) 1,116 153 753 Income tax benefit (expense) (3) 122 26 89 102 336 Income (loss) before equity in earnings from subsidiaries (3) (185) (183) 1,205 255 1,089 Equity in earnings from subsidiaries 1,087 1,272 1,455 1,087 (4,901) Net income 1,084 1,087 1,272 2,292 255 (4,901) 1,089 Net income attributable to noncontrolling interests (5) Net income attributable to Hilton stockholders 1.084 1,087 1,272 2,292 250 4,901) 1.084 Comprehensive income 1,281 $ 1,101 $ 1,288 $ 2,295 $ 419 (5,098) $ 1,286 Comprehensive income attributable to noncontrolling interests (5) Comprehensive income attributable to Hilton stockholders 1,281 1,101 1,288 2.295 414 5,098) 1,281 111Year Ended December 31, 2018 Parent HWF Issuers HOC Guarantors Non-Guarantors Eliminations Total (in millions) Revenues Franchise and licensing fees 227 1,182 139 (18) $ 1,530 Base and other management fees 205 115 321 Incentive management fees 78 157 235 Owned and leased hotels - 1,484 - 1,484 Other revenues 6 81 11 98 234 ,546 1,906 (18) 3,668 Other revenues from managed and franchised properties 245 4,376 617 Total revenues 479 5,922 2,523 (18) 8,906 Expenses Owned and leased hotels - - 1,332 1,332 Depreciation and amortization 6 237 82 325 General and administrative - 323 130 (10) 443 Other expenses 22 30 (8) 51 - $36 259 ,574 (18) 2,151 Other expenses from managed and franchised properties - 236 4,466 621 5,323 Total expense - 572 1,725 2,195 (18) 7,474 Operating income (loss) (93) 1.197 328 1,432 Interest expense (227) (106) (38) (371) Gain (loss) on foreign currency transactions - 84 (99) (11) Other non-operating income (loss), net (9) 16 18 28 Income (loss) before income taxes and equity in earnings from subsidiaries (236) (192) 1,297 209 1,078 Income tax benefit (expense) 57 39 (309) (96) (309) Income (loss) before equity in earnings from subsidiaries (179) (153) 988 113 769 Equity in earnings from subsidiaries 764 943 1.096 764 (3,567) Net income 764 764 943 1,752 113 (3,567) 769 Net income attributable to noncontrolling interests (5 ) (5) Net income attributable to Hilton stockholders 764 764 943 1,752 108 (3,567) 764 Comprehensive income 707 784 $ 932 $ 1,751 $ 48 (3,510) $ 712 Comprehensive income attributable to noncontrolling interests (5) (5) Comprehensive income attributable to Hilton stockholders 707 784 932 ,751 43 (3,510) 707 110