What changed in this filing

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Item 1. Financial Statements

2026-07-28 compared with 2026-04-28 · 145 added, 55 removed, 389 unchanged (34% of the section changed)

3 unchanged sentences

(in millions, except share data)

March 31, December 31,

June 30, December 31,

Current Assets:

Cash and cash equivalents

$ 1,009 $ 918

Restricted cash and cash equivalents

31 unchanged sentences

Common stock, $ 0.01 par value;

10,000,000,000 authorized shares, 228,329,688 outstanding as of March 31, 2026 and 230,433,192 outstanding as of December 31, 2025

10,000,000,000 authorized shares, 225,696,464 outstanding as of June 30, 2026 and 230,433,192 outstanding as of December 31, 2025

Treasury stock, at cost;

109,274,014 shares as of March 31, 2026 and 106,540,900 shares as of December 31, 2025

112,124,356 shares as of June 30, 2026 and 106,540,900 shares as of December 31, 2025

( 16,190 ) ( 14,428 )

13 unchanged sentences

(in millions, except per share data)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Franchise and licensing fees $ 808 $ 745 $ 1,504 $ 1,370

1 unchanged sentence

Incentive management fees 69 75 145 147

311 332 560 566

Other revenues 72 77 138 123

1,359 1,326 2,541 2,391

Cost reimbursement revenues

1,982 1,811 3,737 3,441

Total revenues 3,341 3,137 6,278 5,832

266 286 501 525

Depreciation and amortization 49 43 99 84

1 unchanged sentence

Other expenses 46 26 68 52

475 464 885 864

Reimbursed expenses

2,008 1,895 3,857 3,654

Total expenses 2,483 2,359 4,742 4,518

2 unchanged sentences

Gain (loss) on foreign currency transactions

( 7 ) ( 1 ) ( 12 ) 1

Other non-operating income, net

2 unchanged sentences

Net income 482 442 865 742

Net loss attributable to redeemable and nonredeemable noncontrolling interests

Net loss (income) attributable to redeemable and nonredeemable noncontrolling interests

— ( 2 ) 2 ( 2 )

Net income attributable to Hilton stockholders

$ 482 $ 440 $ 867 $ 740

Earnings per share:

6 unchanged sentences

(in millions)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

Net income $ 482 $ 442 $ 865 $ 742

1 unchanged sentence

Currency translation adjustment, net of tax of $ — (1) , $ 5 , $( 1 ) and $ 5

( 5 ) 81 ( 27 ) 108

Pension liability adjustment, net of tax of $( 1 ), $( 1 ), $( 2 ) and $( 2 )

Cash flow hedge adjustment, net of tax of $( 1 ), $ 6 , $ 1 and $ 11

2 ( 19 ) 2 ( 34 )

Total other comprehensive income (loss) ( 2 ) 64 ( 20 ) 78

1 unchanged sentence

Comprehensive loss (income) attributable to redeemable and nonredeemable noncontrolling interests

— ( 2 ) 4 ( 3 )

Comprehensive income attributable to Hilton stockholders

$ 480 $ 504 $ 849 $ 817

(1) Amount was less than $1 million.

3 unchanged sentences

(in millions)

Three Months Ended

Six Months Ended

Operating Activities:

13 unchanged sentences

Capital expenditures for property and equipment

( 21 ) ( 42 )

Issuance of financing receivables ( 15 ) —

3 unchanged sentences

Financing Activities:

Borrowings 1,565 650

Repayment of debt ( 580 ) ( 881 )

5 unchanged sentences

Settlements of interest rate swap with financing component 7 20

Acquisition of redeemable noncontrolling interests ( 5 ) —

Net cash used in financing activities

1 unchanged sentence

Effect of exchange rate changes on cash, restricted cash and cash equivalents ( 5 ) 8

Net decrease in cash, restricted cash and cash equivalents

( 351 ) ( 569 )

Net increase (decrease) in cash, restricted cash and cash equivalents 94 ( 928 )

Cash, restricted cash and cash equivalents, beginning of period 970 1,376

9 unchanged sentences

Basis of Presentation

The accompanying condensed consolidated financial statements for the three months ended March 31, 2026 and 2025 have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited.

The accompanying condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025 have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited.

We have condensed or omitted certain disclosures normally included in annual financial statements presented in accordance with GAAP;

7 unchanged sentences

Contract Liabilities

The following table summarizes the activity of our contract liabilities, which are classified as components of current and long-term deferred revenues, during the three months ended March 31, 2026:

The following table summarizes the activity of our contract liabilities, which are classified as components of current and long-term deferred revenues, during the six months ended June 30, 2026:

(in millions)

2 unchanged sentences

Revenue recognized (1)

Balance as of March 31, 2026

Balance as of June 30, 2026

(1) Primarily related to Hilton Honors, our guest loyalty program, including co-branded credit card arrangements.

(2) Represents the changes in estimated transaction prices for our performance obligations related to the issuance of Hilton Honors points, which had no effect on revenues.

(2) Primarily represents the changes in estimated transaction prices for our performance obligations related to the issuance of Hilton Honors points, which had no effect on revenues.

Performance Obligations

As of March 31, 2026, deferred revenues for unsatisfied performance obligations consisted of:

As of June 30, 2026, deferred revenues for unsatisfied performance obligations consisted of:

(i) $ 1,550 million related to Hilton Honors that will be recognized as revenue over approximately the next two years ;

4 unchanged sentences

Consolidated Variable Interest Entities

As of March 31, 2026 and December 31, 2025, we consolidated two variable interest entities ("VIEs") that each lease one hotel property, both of which are located in Japan, and for which the assets are only available to settle the obligations of the respective entities and the liabilities of the respective entities are non-recourse to us.

As of June 30, 2026 and December 31, 2025, we consolidated two variable interest entities ("VIEs") that each lease one hotel property, both of which are located in Japan, and for which the assets are only available to settle the obligations of the respective entities and the liabilities of the respective entities are non-recourse to us.

We consolidated these VIEs since we are the primary beneficiary, having the power to direct the activities that most significantly affect their economic performance.

1 unchanged sentence

Our condensed consolidated balance sheets include the assets and liabilities of these entities, including the effect of foreign currency translation, which primarily comprised the following:

March 31, December 31,

June 30, December 31,

(in millions)

1 unchanged sentence

Accounts receivable, net 11 17

Other current assets 18 1

Property and equipment, net 267 283

4 unchanged sentences

(1) Represents finance lease liabilities;

includes current maturities of $ 4 million as of March 31, 2026 and December 31, 2025.

Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of March 31, 2026, were as follows:

March 31, December 31,

includes current maturities of $ 4 million as of June 30, 2026 and December 31, 2025.

Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of June 30, 2026, were as follows:

June 30, December 31,

(in millions)

11 unchanged sentences

Senior notes with a rate of 5.750 %, due 2033 (1)

Senior notes with a rate of 5.500 %, due 2034 (1)

Finance lease liabilities with a weighted average rate of 4.62 %, due 2026 to 2060 (2)

10 unchanged sentences

"Consolidated Variable Interest Entities" for additional information.

(3) Amounts for both periods represent current maturities of finance lease liabilities.

Our senior secured credit facilities consist of a senior secured revolving credit facility (the "Revolving Credit Facility") and senior secured term loan facilities.

The obligations under our senior secured credit facilities are unconditionally and irrevocably

guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than HDOC, the named borrower under the senior secured credit facilities.

(3) Represents current maturities of finance lease liabilities and the 4.875 % Senior Notes due 2027 (the "April 2027 Senior Notes").

We believe that we have sufficient sources of liquidity and access to debt financing to address the current maturities of long-term debt at or prior to the respective maturity dates.

Our senior secured credit facilities consist of a senior secured revolving credit facility (the "Revolving Credit Facility") and senior secured term loan facilities (the "Term Loans").

The obligations under our senior secured credit facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than HDOC, the named borrower under the senior secured credit facilities.

In March 2026, we amended the credit agreement governing our Revolving Credit Facility to extend the maturity date, which we expect to be March 2031, and reprice the rate on amounts outstanding to the secured overnight financing rate ("SOFR") plus 1.00%.

In connection with this amendment, we incurred approximately $ 5 million of debt issuance costs.

As of March 31, 2026, no borrowings were outstanding under the Revolving Credit Facility, which had an available borrowing capacity of $ 1,894 million after considering $ 106 million of letters of credit outstanding.

In April 2026, we borrowed $ 265 million under the Revolving Credit Facility for general corporate purposes and subsequently repaid $ 115 million of the outstanding indebtedness.

During the three months ended June 30, 2026, we borrowed and subsequently repaid an aggregate $ 565 million under the Revolving Credit Facility.

As of June 30, 2026, no borrowings were outstanding under the Revolving Credit Facility, which had an available borrowing capacity of $ 1,894 million after considering $ 106 million of letters of credit outstanding.

In May 2026, we issued $ 1.0 billion aggregate principal amount of 5.500 % Senior Notes due 2031 (the " 5.500 % 2031 Senior Notes" or "May 2026 Senior Notes Issuance").

As part of the May 2026 Senior Notes Issuance, we incurred $ 15 million of debt issuance costs, which were recognized as a reduction to the outstanding debt balance in our condensed consolidated balance sheet and will be amortized to interest expense through the maturity date of the 5.500 % 2031 Senior Notes.

Interest on the 5.500 % 2031 Senior Notes is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2026.

We used a portion of the net proceeds from the May 2026 Senior Notes Issuance to fully repay $ 450 million of outstanding borrowings under our Revolving Credit Facility at that time.

Fair Value Measurements

The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below:

March 31, 2026

June 30, 2026

Hierarchy Level

19 unchanged sentences

(3) In March 2026, our interest rate swap with a notional amount of $ 1.6 billion matured.

As such, the Company does not have any interest rate swaps outstanding as of March 31, 2026.

As such, the Company does not have any interest rate swaps outstanding as of June 30, 2026.

At the end of each quarter, we estimate the effective income tax rate expected to be applied for the full year.

4 unchanged sentences

On April 22, 2026, the U.S.

Court of Appeals for the Seventh Circuit vacated the U.S.

Appeals for the Seventh Circuit vacated the U.S.

Tax Court's ruling and remanded the case for further proceedings.

We are currently evaluating the appellate court ruling to determine whether it will have any impact on Hilton's accounting for income taxes.

We have evaluated the appellate court ruling and concluded that it does not impact Hilton's accounting for income taxes.

Share-Based Compensation

Our share-based compensation primarily consists of awards that we grant to eligible employees under the Hilton 2017 Omnibus Incentive Plan (the "2017 Plan") and includes time-vesting restricted stock units ("RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares").

We recognized share-based compensation expense of $ 45 million and $ 36 million during the three months ended March 31, 2026 and 2025, respectively, which included amounts reimbursed by hotel owners.

During the three months ended March 31, 2026, we granted 331,000 RSUs with a grant date fair value per share of $ 313.35 , which generally vest in equal annual installments over two or three years from the date of grant.

During the three months ended March 31, 2026, we granted 177,000 options with an exercise price per share of $ 313.35 , which vest in equal annual installments over three years from the date of grant and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances.

The grant date fair value per share of the options granted during the three months ended March 31, 2026 was $ 113.22 , which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:

In May 2026, stockholders approved the amendment and restatement of the 2017 Plan to authorize an additional 846,000 shares of common stock for issuance and extend the term of the Plan to May 2036.

We recognized share-based compensation expense of $ 61 million and $ 55 million during the three months ended June 30, 2026 and 2025, respectively, and $ 106 million and $ 91 million during the six months ended June 30, 2026 and 2025, respectively, which included amounts reimbursed by hotel owners.

During the six months ended June 30, 2026, we granted 338,000 RSUs with a weighted average grant date fair value per share of $ 313.31 , which generally vest in equal annual installments over two or three years from the date of grant.

During the six months ended June 30, 2026, we granted 177,000 options with an exercise price per share of $ 313.35 , which vest in equal annual installments over three years from the date of grant and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances.

The grant date fair value per share of the options granted during the six months ended June 30, 2026 was $ 113.22 , which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:

Expected volatility (1)

9 unchanged sentences

Performance Shares

During the three months ended March 31, 2026, we granted 128,000 performance shares with a grant date fair value per share of $ 313.35 , which vest three years from the date of grant based on the achievement of various performance measures.

As of March 31, 2026, we determined that all of the performance measures for all outstanding performance shares granted in 2024, 2025 and 2026 were probable of achievement, with the average of the applicable achievement factors estimated to be nearly at the target achievement percentage for performance shares granted in 2025 and at the target achievement percentage for the performance shares granted in 2024 and 2026.

During the six months ended June 30, 2026, we granted 128,000 performance shares with a grant date fair value per share of $ 313.35 , which vest three years from the date of grant based on the achievement of various performance measures.

As of June 30, 2026, we determined that all of the performance measures for all outstanding performance shares granted in 2024, 2025 and 2026 were probable of achievement, with the average of the applicable achievement factors estimated to be nearly at the target achievement percentage for performance shares granted in 2025, between the target and maximum achievement percentage for performance shares granted in 2024 and at the target achievement percentage for the performance shares granted in 2026.

Earnings Per Share

The following table presents the calculation of basic and diluted earnings per share ("EPS"):

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

(in millions, except per share amounts)

Net income attributable to Hilton stockholders

$ 482 $ 440 $ 867 $ 740

Weighted average shares outstanding 227 237 228 239

1 unchanged sentence

Net income attributable to Hilton stockholders

$ 482 $ 440 $ 867 $ 740

Weighted average shares outstanding (1)

229 239 230 241

Diluted EPS $ 2.10 $ 1.84 $ 3.76 $ 3.07

(1) Amounts for both periods includ e less than 1 million shares r elated to share-based compensation that were excluded from the calculations of diluted EPS because their effect would have been anti-dilutive under the treasury stock method.

(1) Amounts for all periods includ e less than 1 million shares r elated to share-based compensation that were excluded from the calculations of diluted EPS because their effect would have been anti-dilutive under the treasury stock method.

Noncontrolling Interests, Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss

The following tables present the changes in the redeemable and nonredeemable noncontrolling interests and the components of stockholders' equity (deficit) attributable to Hilton stockholders:

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Redeemable Noncontrolling Interests Treasury Stock Additional

6 unchanged sentences

(in millions)

Balance as of December 31, 2025 $ 13 230.4 $ 3 $ ( 14,428 ) $ 11,274 $ ( 1,508 ) $ ( 729 ) $ 29 $ ( 5,359 )

Balance as of March 31, 2026 $ 11 228.3 $ 3 $ ( 15,259 ) $ 11,254 $ ( 1,158 ) $ ( 745 ) $ 27 $ ( 5,878 )

Acquisition of redeemable noncontrolling interests ( 5 ) — — — — — — — —

Net income (loss)

7 unchanged sentences

— 0.3 — 9 87 — — — 96

Balance as of June 30, 2026 $ 5 225.7 $ 3 $ ( 16,190 ) $ 11,341 $ ( 710 ) $ ( 747 ) $ 28 $ ( 6,275 )

Three Months Ended June 30, 2025

Redeemable Noncontrolling Interests Treasury Stock Additional

Capital Accumulated Deficit Accumulated

Comprehensive

Common Stock Noncontrolling

Interests Total Deficit

Shares Amount

(in millions)

Balance as of March 31, 2025 $ 16 238.8 $ 3 $ ( 12,154 ) $ 11,101 $ ( 2,559 ) $ ( 769 ) $ 23 $ ( 4,355 )

Three Months Ended March 31, 2025

Net income (loss)

( 1 ) — — — — 440 — 3 443

Other comprehensive income

— — — — — — 64 — 64

— — — — — ( 36 ) — — ( 36 )

Repurchases of common stock

— ( 3.2 ) — ( 762 ) — — — — ( 762 )

Share-based compensation

— 0.2 — 9 73 — — — 82

Balance as of June 30, 2025 $ 15 235.8 $ 3 $ ( 12,907 ) $ 11,174 $ ( 2,155 ) $ ( 705 ) $ 26 $ ( 4,564 )

Six Months Ended June 30, 2026

Redeemable Noncontrolling Interests Treasury Stock Additional

7 unchanged sentences

Balance as of December 31, 2025 $ 13 230.4 $ 3 $ ( 14,428 ) $ 11,274 $ ( 1,508 ) $ ( 729 ) $ 29 $ ( 5,359 )

Acquisition of redeemable noncontrolling interests ( 5 ) — — — — — — — —

Net income (loss)

( 3 ) — — — — 867 — 1 868

Other comprehensive income

Other comprehensive loss

— — — — — — ( 18 ) ( 2 ) ( 20 )

4 unchanged sentences

— 0.9 — 9 67 — — — 76

Balance as of March 31, 2025 $ 16 238.8 $ 3 $ ( 12,154 ) $ 11,101 $ ( 2,559 ) $ ( 769 ) $ 23 $ ( 4,355 )

Balance as of June 30, 2026 $ 5 225.7 $ 3 $ ( 16,190 ) $ 11,341 $ ( 710 ) $ ( 747 ) $ 28 $ ( 6,275 )

Six Months Ended June 30, 2025

Redeemable Noncontrolling Interests Treasury Stock Additional

Capital Accumulated Deficit Accumulated

Comprehensive

Common Stock Noncontrolling

Interests Total Deficit

Shares Amount

(in millions)

Balance as of December 31, 2024 $ 17 241.8 $ 3 $ ( 11,256 ) $ 11,130 $ ( 2,822 ) $ ( 782 ) $ 21 $ ( 3,706 )

Net income (loss)

( 2 ) — — — — 740 — 4 744

Other comprehensive income

— — — — — — 77 1 78

Dividends — — — — — ( 73 ) — — ( 73 )

Repurchases of common stock

— ( 6.9 ) — ( 1,660 ) — — — — ( 1,660 )

Share-based compensation

— 0.9 — 9 44 — — — 53

Balance as of June 30, 2025 $ 15 235.8 $ 3 $ ( 12,907 ) $ 11,174 $ ( 2,155 ) $ ( 705 ) $ 26 $ ( 4,564 )

The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:

10 unchanged sentences

( 25 ) 5 2 ( 18 )

Balance as of March 31, 2026 $ ( 527 ) $ ( 219 ) $ 1 $ ( 745 )

Balance as of June 30, 2026 $ ( 532 ) $ ( 218 ) $ 3 $ ( 747 )

Currency Translation Adjustment (1)

9 unchanged sentences

107 4 ( 34 ) 77

Balance as of March 31, 2025 $ ( 565 ) $ ( 238 ) $ 34 $ ( 769 )

Balance as of June 30, 2025 $ ( 484 ) $ ( 236 ) $ 15 $ ( 705 )

(1) Includes net investment hedge gains and intra-entity foreign currency transactions that are of a long-term investment nature.

Amount reclassified during the six months ended June 30, 2025 relates to the liquidation of an investment in a certain foreign entity and was recognized in gain (loss) on foreign currency transactions in our condensed consolidated statement of operations.

(2) Amounts reclassified relate to the amortization of prior service cost and amortization of net loss and were recognized in other non-operating income, net in our condensed consolidated statements of operations.

26 unchanged sentences

The following table presents revenues for our reportable segments, reconciled to consolidated amounts:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

(in millions)

1 unchanged sentence

Base and other management fees (1)

115 115 223 216

Incentive management fees (1)

77 75 159 147

Management and franchise 1,009 941 1,902 1,745

4 unchanged sentences

Cost reimbursement revenues (2)

1,982 1,811 3,737 3,441

Intersegment fees elimination (1)

( 16 ) ( 11 ) ( 27 ) ( 16 )

Total revenues $ 3,341 $ 3,137 $ 6,278 $ 5,832

3 unchanged sentences

The following table presents Adjusted EBITDA for our reportable segments, reconciled to consolidated income before income taxes:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

2026 2025 2026 2025

(in millions)

Management and franchise (1)(2)

$ 1,009 $ 941 $ 1,902 $ 1,745

Ownership (1)(2)

Segment Adjusted EBITDA

1,054 998 1,962 1,810

Corporate and other (3)

— 10 ( 7 ) ( 7 )

Interest expense ( 183 ) ( 151 ) ( 345 ) ( 296 )

5 unchanged sentences

Cost reimbursement revenues (4)

1,982 1,811 3,737 3,441

Reimbursed expenses (4)

1 unchanged sentence

Other adjustments (5)

( 18 ) ( 13 ) ( 20 ) ( 22 )

Income before income taxes $ 680 $ 629 $ 1,198 $ 1,039

2 unchanged sentences

For the ownership segment, rent expense is the significant expense regularly provided to the CODM;

rent expense was $ 41 million for both periods and total other ownership expenses were $ 195 million and $ 186 million for the three months ended March 31, 2026 and 2025, respectively, comprising (i) room expenses;

rent expense was $ 52 million and $ 61 million for the three months ended June 30, 2026 and 2025, respectively, and $ 93 million and $ 102 million for the six months ended June 30, 2026 and 2025, respectively.

Total other ownership expenses were $ 216 million and $ 217 million for the three months ended June 30, 2026 and 2025, respectively, and $ 411 million and $ 403 million for the six months ended June 30, 2026 and 2025, respectively, comprising (i) room expenses;

(ii) food and beverage costs;

5 unchanged sentences

Under the terms of the related contracts, we do not operate these programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures.

(5) Amount for the three months ended March 31, 2025 includes restructuring costs related to one of our leased hotels.

Amounts for both periods include gains (losses) related to severance and other items, including non-cash charges, such as net gains (losses) related to certain of our investments in unconsolidated affiliates.

(5) Amounts for the three and six months ended June 30, 2025 include expected future credit losses on financing receivables.

Amount for the six months ended June 30, 2025 also includes restructuring costs related to one of our leased hotels.

Amounts for all periods include gains (losses) related to severance and other items, including non-cash charges, such as net gains (losses) related to certain of our investments in unconsolidated affiliates.

Commitments and Contingencies

1 unchanged sentence

In limited cases, we have provided performance guarantees that obligate us to fund these shortfalls.

As of March 31, 2026, we had performance guarantees with expirations ranging from 2026 to 2043 and possible cash outlays totaling $ 20 million.

As of June 30, 2026, we had performance guarantees with expirations ranging from 2026 to 2043 and possible cash outlays totaling $ 13 million.

We also have extended debt guarantees and provided loan commitments to owners of certain hotels that we currently or in the future will manage or franchise.

Our debt guarantees and loan commitments as of March 31, 2026 had expirations ranging from 2027 to 2035 and remaining possible cash outlays totaling $ 53 million.

Our debt guarantees and loan commitments as of June 30, 2026 had expirations ranging from 2027 to 2035 and remaining possible cash outlays totaling $ 56 million.

The performance and debt guarantees and loan commitments create variable interests in the ownership entities of the related hotels, of which we are not the primary beneficiary.

2 unchanged sentences

We are involved in various claims and lawsuits arising in the ordinary course of business, some of which include claims for substantial sums.

While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of March 31, 2026 will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of June 30, 2026 will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Supplemental Disclosures of Cash Flow Information

Cash interest paid included within operating activities in our condensed consolidated statements of cash flows was $ 143 million and $ 146 million during the three months ended March 31, 2026 and 2025, respectively.

These amounts exclude $ 7 million and $ 10 million for the three months ended March 31, 2026 and 2025, respectively, of cash receipts related to settlements of our interest rate swap with a financing component, which are separately disclosed within financing activities in our condensed consolidated statements of cash flows.

Income tax payments, net of refunds received, were $ 41 million and $ 29 million for the three months ended March 31, 2026 and 2025, respectively.

Cash interest paid included within operating activities in our condensed consolidated statements of cash flows was $ 338 million and $ 320 million during the six months ended June 30, 2026 and 2025, respectively.

These amounts exclude $ 7 million and $ 20 million for the six months ended June 30, 2026 and 2025, respectively, of cash receipts related to settlements of our interest rate swap with a financing component, which are separately disclosed within financing activities in our condensed consolidated statements of cash flows.

Income tax payments, net of refunds received, were $ 406 million and $ 121 million for the six months ended June 30, 2026 and 2025, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements