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Jill SlatteryMcLean, VA 22102
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Nigel Glennie
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Hilton Reports Second Quarter Results

MCLEAN, VA (August 6, 2020) - Hilton Worldwide Holdings Inc. ("Hilton" or the "Company") (NYSE: HLT) today reported its second quarter 2020 results. The following results reflect the material impact that the novel coronavirus ("COVID-19") pandemic had on Hilton's business. Highlights include:
Diluted EPS was $(1.55) for the second quarter, and diluted EPS, adjusted for special items, was $(0.61)

Net loss was $432 million for the second quarter

Adjusted EBITDA was $51 million for the second quarter

System-wide comparable RevPAR decreased 81.0 percent on a currency neutral basis for the second quarter from the same period in 2019

Approved 18,400 new rooms for development during the second quarter, growing Hilton's development pipeline to 414,000 rooms as of June 30, 2020, representing 11 percent growth from June 30, 2019

Opened 6,800 rooms in the second quarter, contributing to 5,500 net additional rooms in Hilton's system

As of July 31, 2020, 96 percent of Hilton's system-wide hotels were open

Launched Hilton CleanStay, a new program created in collaboration with RB, maker of Lysol and Dettol, and Mayo Clinic, to deliver an elevated standard of cleanliness and disinfection to properties worldwide, and Hilton EventReady, which focuses on cleanliness and customer service specific to meetings and events

Announced a new strategic partnership with Country Garden to develop 1,000 Home2 Suites by Hilton in China, representing the first major extended stay offering for Hilton outside of North America

















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Overview

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "Our second quarter results reflect the challenges that our business has experienced as a result of the pandemic. However, as restrictions are lifting and properties around the world are reopening, we are seeing improved occupancy. While we have a long journey in front of us, we are on the road to recovery and look forward to the opportunities ahead."

On a global level, the pervasive impact of COVID-19 began in March, with its most significant adverse impact on occupancy and RevPAR in April. Since April, all major regions have experienced month over month increases in occupancy and RevPAR. Hilton experienced the most notable recoveries in the U.S. and Asia Pacific with occupancy levels up approximately 20 percentage points and 15 percentage points, respectively, from April to June. Hilton announced a corporate restructuring in June 2020 to organize its business to be best suited to operate through the pandemic and beyond. Costs relating to the reorganization were recognized in the quarter and accrued as of June 30, 2020.

For the three and six months ended June 30, 2020, system-wide comparable RevPAR decreased 81.0 percent and 53.9 percent, respectively, due to both occupancy and ADR decreases. Additionally, management fee and franchise and licensing fee revenues decreased 77 percent and 50 percent during the three and six months ended June 30, 2020, respectively. The decreases were due to the COVID-19 pandemic and the related reduction in global travel and tourism, which required the complete or partial suspensions of hotel operations at approximately 20 percent of Hilton's properties at some point during the six months ended June 30, 2020, of which over half of the properties had reopened as of June 30, 2020.

For the three months ended June 30, 2020, diluted EPS was $(1.55) and diluted EPS, adjusted for special items, was $(0.61) compared to $0.89 and $1.06, respectively, for the three months ended June 30, 2019. Net income (loss) and Adjusted EBITDA were $(432) million and $51 million, respectively, for the three months ended June 30, 2020, compared to $261 million and $618 million, respectively, for the three months ended June 30, 2019.

For the six months ended June 30, 2020, diluted EPS was $(1.48) and diluted EPS, adjusted for special items, was $0.13 compared to $1.42 and $1.85, respectively, for the six months ended June 30, 2019. Net income (loss) and Adjusted EBITDA were $(414) million and $414 million, respectively, for the six months ended June 30, 2020, compared to $420 million and $1,117 million, respectively, for the six months ended June 30, 2019.

Development

In the second quarter of 2020, Hilton opened 60 new hotels totaling 6,800 rooms, and achieved net unit growth of over 5,500 rooms.

Additionally, during the quarter, Hilton entered into an exclusive management license agreement with Country Garden to introduce and develop Home2 Suites by Hilton branded properties in China. Hilton believes Home2 Suites, as an affordable extended stay, upper midscale offering, is well positioned to capture growth opportunities resulting from the growing spending power of consumers in China's smaller cities.

As of June 30, 2020, Hilton's development pipeline totaled over 2,700 hotels consisting of nearly 414,000 rooms throughout 121 countries and territories, including 35 countries and territories where Hilton does not currently have any open hotels. Additionally, of the rooms in the development pipeline, 234,000 rooms were located outside the U.S., and 222,000 rooms were under construction.

Balance Sheet and Liquidity

As of June 30, 2020, Hilton had $10.6 billion of long-term debt outstanding, excluding deferred financing costs and discount, with a weighted average interest rate of 3.91 percent. Excluding finance lease liabilities and other debt of Hilton's consolidated variable interest entities, Hilton had $10.3 billion of long-term debt outstanding with a weighted average interest rate of 3.86 percent and no maturities until 2024. Total cash and cash equivalents were $3,575 million as of June 30, 2020, including $72 million of restricted cash and cash equivalents.

In March 2020, Hilton suspended share repurchases and the payment of dividends, as a result of efforts to preserve capital and maintain liquidity. No share repurchases were made after March 5, 2020 and no dividends were declared or paid during the three months ended June 30, 2020. The stock repurchase program remains authorized by the board of directors and the amount remaining under Hilton's stock repurchase program is approximately $2.2 billion.

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Conference Call

Hilton will host a conference call to discuss second quarter 2020 results on August 6, 2020 at 10:00 a.m. Eastern Time. Participants may listen to the live webcast by logging on to the Hilton Investor Relations website at https://ir.hilton.com/events-and-presentations. A replay and transcript of the webcast will be available within 24 hours after the live event at https://ir.hilton.com/financial-reporting/quarterly-results/2020.

Alternatively, participants may listen to the live call by dialing 1-888-317-6003 in the United States ("U.S.") or 1-412-317-6061 internationally using the conference ID 0333617. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time. A telephone replay will be available for seven days following the call. To access the telephone replay, dial 1-877-344-7529 in the U.S. or 1-412-317-0088 internationally using the conference ID 10145887.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements related to the expectations regarding the impact of the COVID-19 pandemic, the performance of Hilton's business, financial results, liquidity and capital resources and other non-historical statements. In some cases, these forward-looking statements can be identified by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks related to the impact of the COVID-19 outbreak, risks inherent to the hospitality industry, macroeconomic factors beyond Hilton's control, competition for hotel guests and management and franchise contracts, risks related to doing business with third-party hotel owners, performance of Hilton's information technology systems, growth of reservation channels outside of Hilton's system, risks of doing business outside of the U.S. and Hilton's indebtedness. Additional factors that could cause Hilton's results to differ materially from those described in the forward-looking statements can be found under the section entitled "Part I—Item 1A. Risk Factors" of Hilton's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and "Part II —Item 1A. Risk Factors" of Hilton's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, filed with the Securities and Exchange Commission (the "SEC"), as supplemented in Hilton's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020, which is expected to be filed on or about the date of this press release, as such factors may be further updated from time to time in Hilton's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in Hilton's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Non-GAAP Financial Measures

The Company refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles ("GAAP") in this press release, including: net income (loss), adjusted for special items; diluted EPS, adjusted for special items; Adjusted EBITDA; Adjusted EBITDA margin; net debt; and net debt to Adjusted EBITDA ratio. See the schedules to this press release, including the "Definitions" section, for additional information and reconciliations of such non-GAAP financial measures.

About Hilton

Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 18 world-class brands comprising more than 6,200 properties with more than 983,000 rooms in 118 countries and territories. Dedicated to fulfilling its mission to be the world's most hospitable company, Hilton welcomed more than 3 billion guests in its 100-year history, earned a top spot on the 2019 World's Best Workplaces list and was named the 2019 Global Industry Leader on the Dow Jones Sustainability Indices. In 2020, Hilton CleanStay was introduced, bringing an industry-defining standard of cleanliness and disinfection to hotels worldwide. Through the award-winning guest loyalty program Hilton Honors, the 108 million members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy, plus enjoy instant benefits, including digital check-in with room selection, Digital Key and Connected Room. Visit newsroom.hilton.com for more information, and connect with Hilton on facebook.com/hiltonnewsroom, twitter.com/hiltonnewsroom, linkedin.com/company/hilton, instagram.com/hiltonnewsroom and youtube.com/hiltonnewsroom.
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HILTON WORLDWIDE HOLDINGS INC.
EARNINGS RELEASE SCHEDULES
TABLE OF CONTENTS

Page
Condensed Consolidated Statements of Operations
Comparable and Currency Neutral System-Wide Hotel Operating Statistics
Property Summary
Capital Expenditures and Contract Acquisition Costs
Non-GAAP Financial Measures Reconciliations
Definitions

4


HILTON WORLDWIDE HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions, except per share data)

Three Months EndedSix Months Ended
June 30,June 30,
2020201920202019
Revenues
Franchise and licensing fees$132  $444  $471  $826  
Base and other management fees 89  68  169  
Incentive management fees(5) 58  18  113  
Owned and leased hotels31  387  241  699  
Other revenues10  26  33  52  
176  1,004  831  1,859  
Other revenues from managed and franchised properties
388  1,480  1,653  2,829  
Total revenues564  2,484  2,484  4,688  
Expenses
Owned and leased hotels
95  334  334  632  
Depreciation and amortization88  86  179  170  
General and administrative63  113  123  220  
Reorganization costs38  —  38  —  
Impairment losses15  —  127  —  
Other expenses13  15  27  35  
312  548  828  1,057  
Other expenses from managed and franchised properties
554  1,458  1,890  2,841  
Total expenses866  2,006  2,718  3,898  
Operating income (loss)(302) 478  (234) 790  
Interest expense(106) (101) (200) (199) 
Loss on foreign currency transactions(13) (3) (4) (3) 
Other non-operating loss, net(23) (12) (23) (8) 
Income (loss) before income taxes(444) 362  (461) 580  
Income tax benefit (expense)12  (101) 47  (160) 
Net income (loss)(432) 261  (414) 420  
Net loss (income) attributable to noncontrolling interests (1)  (2) 
Net income (loss) attributable to Hilton stockholders$(430) $260  $(412) $418  
Weighted average shares outstanding:
Basic277  290  277  291  
Diluted278  292  279  294  
Earnings (loss) per share:
Basic$(1.55) $0.90  $(1.49) $1.43  
Diluted$(1.55) $0.89  $(1.48) $1.42  
Cash dividends declared per share$—  $0.15  $0.15  $0.30  

5


HILTON WORLDWIDE HOLDINGS INC.
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY REGION
(unaudited)

Three Months Ended June 30,
OccupancyADRRevPAR
2020vs. 20192020vs. 20192020vs. 2019
U.S.24.4 %(55.9)%pts.$101.17  (33.2)%$24.68  (79.7)%
Americas (excluding U.S.)10.3  (60.7) 76.72  (32.7) 7.93  (90.2) 
Europe7.1  (72.3) 84.21  (39.9) 5.98  (94.6) 
Middle East & Africa15.4  (50.2) 103.91  (28.7) 16.01  (83.3) 
Asia Pacific28.8  (40.7) 74.09  (33.3) 21.31  (72.4) 
System-wide22.3  (56.1) 97.18  (33.2) 21.67  (81.0) 

Six Months Ended June 30,
OccupancyADRRevPAR
2020vs. 20192020vs. 20192020vs. 2019
U.S.41.5 %(34.5)%pts.$129.02  (13.2)%$53.56  (52.6)%
Americas (excluding U.S.)32.4  (35.8) 109.78  (5.9) 35.58  (55.3) 
Europe30.0  (43.1) 115.43  (12.6) 34.68  (64.1) 
Middle East & Africa38.6  (29.8) 128.99  (8.8) 49.85  (48.5) 
Asia Pacific33.4  (34.1) 96.70  (15.5) 32.31  (58.2) 
System-wide39.3  (35.1) 124.94  (12.6) 49.06  (53.9) 

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HILTON WORLDWIDE HOLDINGS INC.
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY BRAND
(unaudited)

Three Months Ended June 30,
OccupancyADRRevPAR
2020vs. 20192020vs. 20192020vs. 2019
Waldorf Astoria Hotels & Resorts6.6 %(67.3)%pts.$280.87  (24.4)%$18.41  (93.3)%
Conrad Hotels & Resorts19.0  (56.3) 134.88  (48.7) 25.69  (87.0) 
Canopy by Hilton9.1  (67.4) 129.14  (36.2) 11.82  (92.4) 
Hilton Hotels & Resorts13.0  (64.8) 107.65  (37.4) 14.04  (89.5) 
Curio Collection by Hilton14.7  (56.0) 111.51  (46.4) 16.35  (88.9) 
DoubleTree by Hilton17.3  (59.0) 90.78  (30.8) 15.71  (84.3) 
Tapestry Collection by Hilton28.9  (47.2) 98.85  (41.2) 28.59  (77.7) 
Embassy Suites by Hilton16.8  (65.2) 113.09  (33.0) 18.95  (86.3) 
Hilton Garden Inn22.4  (56.4) 90.46  (32.8) 20.22  (80.9) 
Hampton by Hilton27.2  (51.0) 92.08  (25.6) 25.07  (74.1) 
Tru by Hilton29.8  (41.2) 81.62  (23.9) 24.31  (68.1) 
Homewood Suites by Hilton40.6  (43.4) 103.65  (27.8) 42.06  (65.1) 
Home2 Suites by Hilton40.0  (41.0) 93.46  (22.1) 37.43  (61.5) 
System-wide22.3  (56.1) 97.18  (33.2) 21.67  (81.0) 

Six Months Ended June 30,
OccupancyADRRevPAR
2020vs. 20192020vs. 20192020vs. 2019
Waldorf Astoria Hotels & Resorts29.8 %(42.6)%pts.$407.98  6.8 %$121.51  (56.1)%
Conrad Hotels & Resorts32.4  (41.8) 202.74  (19.9) 65.69  (65.0) 
Canopy by Hilton30.2  (39.0) 175.53  (13.1) 52.96  (62.1) 
Hilton Hotels & Resorts33.6  (41.0) 152.89  (9.8) 51.32  (59.4) 
Curio Collection by Hilton33.5  (33.6) 185.70  (10.8) 62.15  (55.5) 
DoubleTree by Hilton35.3  (37.4) 118.51  (8.7) 41.79  (55.7) 
Tapestry Collection by Hilton39.9  (28.4) 117.52  (23.9) 46.95  (55.5) 
Embassy Suites by Hilton38.4  (40.1) 146.82  (11.2) 56.40  (56.6) 
Hilton Garden Inn39.6  (35.2) 113.15  (13.5) 44.78  (54.2) 
Hampton by Hilton41.5  (31.7) 106.34  (11.8) 44.17  (50.0) 
Tru by Hilton41.6  (22.7) 90.36  (12.7) 37.60  (43.5) 
Homewood Suites by Hilton53.2  (26.9) 121.04  (13.6) 64.37  (42.6) 
Home2 Suites by Hilton51.5  (24.5) 104.10  (11.2) 53.66  (39.9) 
System-wide39.3  (35.1) 124.94  (12.6) 49.06  (53.9) 

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HILTON WORLDWIDE HOLDINGS INC.
COMPARABLE AND CURRENCY NEUTRAL SYSTEM-WIDE HOTEL OPERATING STATISTICS
BY SEGMENT
(unaudited)

Three Months Ended June 30,
OccupancyADRRevPAR
2020vs. 20192020vs. 20192020vs. 2019
Management and franchise22.6 %(55.8)%pts.$97.08  (32.8)%$21.98  (80.6)%
Ownership(1)
5.3  (74.6) 117.81  (39.9) 6.25  (96.0) 
System-wide22.3  (56.1) 97.18  (33.2) 21.67  (81.0) 

Six Months Ended June 30,
OccupancyADRRevPAR
2020vs. 20192020vs. 20192020vs. 2019
Management and franchise39.5 %(34.9)%pts.$124.50  (12.4)%$49.16  (53.5)%
Ownership(1)
28.1  (46.4) 155.51  (15.4) 43.69  (68.1) 
System-wide39.3  (35.1) 124.94  (12.6) 49.06  (53.9) 
____________
(1)Includes owned and leased hotels, as well as hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.
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HILTON WORLDWIDE HOLDINGS INC.
PROPERTY SUMMARY
As of June 30, 2020

Owned / Leased(1)
ManagedFranchisedTotal
PropertiesRoomsPropertiesRoomsPropertiesRoomsPropertiesRooms
Waldorf Astoria Hotels & Resorts
U.S.—  —  14  5,963  —  —  14  5,963  
Americas (excluding U.S.)—  —   257  —  —   257  
Europe 463   898  —  —   1,361  
Middle East & Africa—  —   1,224  —  —   1,224  
Asia Pacific—  —   1,014  —  —   1,014  
LXR Hotels & Resorts
Americas (excluding U.S.)—  —  —  —   76   76  
Europe—  —   307  —  —   307  
Middle East & Africa—  —  —  —   234   234  
Conrad Hotels & Resorts
U.S.—  —   2,211   225   2,436  
Americas (excluding U.S.)—  —   402  —  —   402  
Europe—  —   1,155  —  —   1,155  
Middle East & Africa 614   993  —  —   1,607  
Asia Pacific 164  21  6,138   659  23  6,961  
Canopy by Hilton
U.S.—  —  —  —  13  2,114  13  2,114  
Americas (excluding U.S.)—  —   174  —  —   174  
Europe—  —  —  —   263   263  
Middle East & Africa—  —   200  —  —   200  
Asia Pacific—  —   329  —  —   329  
Hilton Hotels & Resorts
U.S.—  —  65  47,454  176  54,085  241  101,539  
Americas (excluding U.S.) 405  26  9,455  21  7,096  48  16,956  
Europe50  13,919  43  14,439  40  10,875  133  39,233  
Middle East & Africa 1,998  42  13,482   1,415  49  16,895  
Asia Pacific 2,999  98  35,454   2,203  109  40,656  
Curio Collection by Hilton
U.S.—  —   2,485  44  8,804  50  11,289  
Americas (excluding U.S.)—  —   99   825  10  924  
Europe—  —   520  16  1,766  21  2,286  
Middle East & Africa—  —   445   356   801  
Asia Pacific—  —   773   248   1,021  
DoubleTree by Hilton
U.S.—  —  32  10,864  331  76,663  363  87,527  
Americas (excluding U.S.)—  —   306  34  6,680  36  6,986  
Europe—  —  12  3,156  99  16,917  111  20,073  
Middle East & Africa—  —  12  3,164   719  18  3,883  
Asia Pacific—  —  62  17,015   1,072  65  18,087  
Tapestry Collection by Hilton
U.S.—  —  —  —  34  4,490  34  4,490  
Americas (excluding U.S.)—  —  —  —   190   190  
Embassy Suites by Hilton
U.S.—  —  41  10,924  210  47,152  251  58,076  
Americas (excluding U.S.)—  —   667   1,336   2,003  
Hilton Garden Inn
U.S.—  —   425  688  95,255  692  95,680  
Americas (excluding U.S.)—  —  11  1,571  44  6,829  55  8,400  
Europe—  —  20  3,764  53  8,788  73  12,552  
Middle East & Africa—  —  15  3,272   271  17  3,543  
Asia Pacific—  —  30  6,423  —  —  30  6,423  
Hampton by Hilton
U.S.—  —  29  3,547  2,221  218,745  2,250  222,292  
Americas (excluding U.S.)—  —  13  1,685  103  12,450  116  14,135  
Europe—  —  17  2,836  70  10,763  87  13,599  
Middle East & Africa—  —   723  —  —   723  
Asia Pacific—  —  —  —  126  21,202  126  21,202  
Tru by Hilton
U.S.—  —  —  —  133  12,806  133  12,806  
Americas (excluding U.S.)—  —  —  —   90   90  
Homewood Suites by Hilton
U.S.—  —  10  1,052  472  53,858  482  54,910  
Americas (excluding U.S.)—  —   406  22  2,457  25  2,863  
Home2 Suites by Hilton
U.S.—  —   313  401  42,086  404  42,399  
Americas (excluding U.S.)—  —  —  —   753   753  
Other—  —   1,995   1,151   3,146  
Hotels65  20,562  690  219,979  5,405  733,967  6,160  974,508  
Hilton Grand Vacations—  —  —  —  55  8,957  55  8,957  
Total65  20,562  690  219,979  5,460  742,924  6,215  983,465  
____________
(1)Includes hotels owned or leased by entities in which Hilton owns a noncontrolling financial interest.
9


HILTON WORLDWIDE HOLDINGS INC.
CAPITAL EXPENDITURES AND CONTRACT ACQUISITION COSTS
(unaudited, dollars in millions)

Three Months Ended
June 30,Increase / (Decrease)
20202019$%
Capital expenditures for property and equipment(1)
$18  $23  (5) (21.7) 
Capitalized software costs(2)
16  25  (9) (36.0) 
Total capital expenditures34  48  (14) (29.2) 
Contract acquisition costs12  28  (16) (57.1) 
Total capital expenditures and contract acquisition costs$46  $76  (30) (39.5) 

Six Months Ended
June 30,Increase / (Decrease)
20202019$%
Capital expenditures for property and equipment(1)
$30  $46  (16) (34.8) 
Capitalized software costs(2)
33  44  (11) (25.0) 
Total capital expenditures63  90  (27) (30.0) 
Contract acquisition costs23  43  (20) (46.5) 
Total capital expenditures and contract acquisition costs$86  $133  (47) (35.3) 
____________
(1)Includes expenditures for hotels, corporate and other property and equipment, of which $4 million and $1 million were indirectly reimbursed by hotel owners for the three months ended June 30, 2020 and 2019, respectively, and $7 million and $6 million were indirectly reimbursed by hotel owners for the six months ended June 30, 2020 and 2019, respectively. Excludes expenditures for furniture, fixtures and equipment ("FF&E") replacement reserves of $7 million and $15 million for the three months ended June 30, 2020 and 2019, respectively, and $21 million and $29 million for the six months ended June 30, 2020 and 2019, respectively.
(2)Includes $6 million and $21 million of expenditures that were indirectly reimbursed by hotel owners for the three months ended June 30, 2020 and 2019, respectively, and $20 million and $36 million for the six months ended June 30, 2020 and 2019, respectively.


10


HILTON WORLDWIDE HOLDINGS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
NET INCOME (LOSS) AND DILUTED EPS, ADJUSTED FOR SPECIAL ITEMS
(unaudited, in millions, except per share data)

Three Months EndedSix Months Ended
June 30,June 30,
2020201920202019
Net income (loss) attributable to Hilton stockholders, as reported
$(430) $260  $(412) $418  
Diluted EPS, as reported$(1.55) $0.89  $(1.48) $1.42  
Special items:
Net other expenses (revenues) from managed and franchised properties
$166  $(22) $237  $12  
Purchase accounting amortization(1)
47  51  96  102  
FF&E replacement reserves
 15  21  29  
Reorganization costs38  —  38  —  
Impairment losses15  —  127  —  
Financing transactions(2)
—   —   
Other adjustments(3)
22   25  10  
Total special items before tax295  61  544  161  
Income tax expense on special items(35) (11) (94) (35) 
Total special items after tax$260  $50  $450  $126  
Net income (loss), adjusted for special items$(170) $310  $38  $544  
 Diluted EPS, adjusted for special items
$(0.61) $1.06  $0.13  $1.85  
____________
(1)Represents the amortization of intangible assets that were recorded at fair value in October 2007 when the Company became a wholly owned subsidiary of affiliates of The Blackstone Group Inc.
(2)Includes expenses recognized in connection with the June 2019 refinancings and repayments of the senior secured credit facilities that were included in other non-operating loss, net.
(3)Includes losses related to the disposal of an investment and an accrual for a loan guarantee for a franchised hotel, which were recognized in other non-operating loss, net for the three and six months ended June 30, 2020. All periods include severance costs recognized in general and administrative expenses related to the 2015 sale of the Waldorf Astoria New York.
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HILTON WORLDWIDE HOLDINGS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(unaudited, dollars in millions)

Three Months EndedSix Months Ended
June 30,June 30,
2020201920202019
Net income (loss)$(432) $261  $(414) $420  
Interest expense106  101  200  199  
Income tax expense (benefit)(12) 101