Item 2. Management’s Discussion and Analysis
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cautionary Statement
All statements in this report are made as of the date this Form 10-Q is filed with the U.S. Securities and Exchange Commission (the “SEC”). We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. We make forward-looking statements in Management’s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this report based on the beliefs and assumptions of our management and on information available to us through the date this Form 10-Q is filed with the SEC. Forward-looking statements include information related to our development pipeline; our expectations regarding rooms growth; our expectations regarding our ability to meet our liquidity requirements; our capital expenditures and other investment spending and reimbursement expectations; our expectations regarding future dividends and share repurchases; and other statements that are preceded by, followed by, or include the words “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “foresees,” or similar expressions; and similar statements concerning anticipated future events and expectations that are not historical facts.
We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risks and uncertainties we describe in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“2023 Form 10-K”), Part II, Item 1A of this report, and other factors we describe from time to time in our periodic filings with the SEC.
BUSINESS AND OVERVIEW
Overview
We are a worldwide operator, franchisor, and licensor of hotel, residential, timeshare, and other lodging properties under more than 30 brand names. Under our asset-light business model, we typically manage or franchise hotels, rather than own them . We discuss our operations in the following reportable business segments: (1) U.S. & Canada, (2) Europe, Middle East & Africa (“EMEA”), (3) Greater China, and (4) Asia Pacific excluding China (“APEC”). Our Caribbean & Latin America (“CALA”) operating segment does not meet the applicable criteria for
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separate disclosure as a reportable business segment, and as such, we include its results in “Unallocated corporate and other.”
Terms of our management agreements vary, but our management fees generally consist of base management fees and incentive management fees. Base management fees are typically calculated as a percentage of property-level revenue. Incentive management fees are typically calculated as a percentage of a hotel profitability measure, and, in many cases (particularly in our U.S. & Canada, Europe, and CALA regions), are subject to a specified owner return. Under our franchise and license agreements for most properties, franchise fees are calculated as a percentage of property-level revenue or a portion thereof. Additionally, we earn franchise fees for the use of our intellectual property, including primarily co-branded credit card fees, as well as timeshare and yacht fees, residential branding fees, franchise application and relicensing fees, and certain other non-hotel licensing fees, which we refer to as “non-RevPAR related franchise fees.”
Performance Measures
We believe Revenue per Available Room (“RevPAR”), which we calculate by dividing property level room revenue by rooms available for the period, is a meaningful indicator of our performance because it measures the period-over-period change in room revenues. RevPAR may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We also believe occupancy and average daily rate (“ADR”), which are components of calculating RevPAR, are meaningful indicators of our performance. Occupancy, which we calculate by dividing total rooms sold by total rooms available for the period, measures the utilization of a property’s available capacity. ADR, which we calculate by dividing property level room revenue by total rooms sold, measures average room price and is useful in assessing pricing levels. RevPAR, occupancy, and ADR statistics are on a systemwide basis for comparable properties, unless otherwise stated. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. Comparisons to prior periods are on a constant U.S. dollar basis, which we calculate by applying exchange rates for the current period to the prior comparable period. We believe constant dollar analysis provides valuable information regarding our properties’ performance as it removes currency fluctuations from the presentation of such results.
We define our comparable properties as our properties that were open and operating under one of our hotel brands since the beginning of the last full calendar year (since January 1, 2023 for the current period) and have not, in either the current or previous year: (1) undergone significant room or public space renovations or expansions, (2) been converted between company-operated and franchised, or (3) sustained substantial property damage or business interruption. Our comparable properties also exclude MGM Collection with Marriott Bonvoy, Design Hotels, The Ritz-Carlton Yacht Collection, and timeshare properties.
Business Trends
We saw solid global RevPAR growth during the 2024 second quarter and 2024 first half compared to the same periods in 2023. For the 2024 second quarter, worldwide RevPAR increased 4.9 percent, reflecting ADR growth of 2.6 percent and occupancy improvement of 1.6 percentage points. For the 2024 first half, worldwide RevPAR increased 4.5 percent, reflecting ADR growth of 2.7 percent and occupancy improvement of 1.2 percentage points. The increase in RevPAR in the 2024 second quarter and 2024 first half was primarily driven by strong year-over-year demand growth in most of our regions.
In the U.S. & Canada, where demand has normalized, RevPAR increased 2.8 percent in the 2024 first half, led by strong group business.
In EMEA, RevPAR growth of 9.6 percent in the 2024 first half was driven by strong demand across the region. In Greater China, RevPAR was relatively unchanged compared to the 2023 first half, as RevPAR growth in the 2024 first quarter was offset by a decline in RevPAR in the 2024 second quarter due to lower domestic demand and an increase in outbound travel. In APEC, RevPAR increased 14.8 percent in the 2024 first half, driven by strong growth in ADR and occupancy from leisure and business travelers, including an increase in inbound demand into the region. In CALA, RevPAR increased 10.3 percent in the 2024 first half, driven by strong demand throughout the region.
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Starwood Data Security Incident
On November 30, 2018, we announced a data security incident involving unauthorized access to the Starwood reservations database (the “Data Security Incident”). We discontinued use of t he Starwood reservations database for business operations at the end of 2018 .
We are currently unable to reasonably estimate the range of total possible financial impact to the Company from the Data Security Incident in excess of the expenses already recorded. However, we do not believe this incident will impact our long-term financial health. Although our insurance program includes coverage designed to limit our exposure to losses such as those related to the Data Security Incident, that insurance may not be sufficient or available to cover all of our expenses or other losses (including monetary payments to regulators and/or litigants) related to the Data Security Incident. In addition, certain expenses by their nature (such as, for example, expenses related to enhancing our cybersecurity program) are not covered by our insurance program. We expect to incur ongoing legal and other expenses associated with the Data Security Incident in future periods, and we believe it is reasonably possible that we may incur additional monetary payments to regulators and/or litigants in excess of the amounts already recorded and costs in connection with compliance with any settlements or resolutions of matters. See Note 5 for additional information related to legal proceedings and governmental investigations related to the Data Security Incident.
System Growth and Pipeline
At the end of the 2024 second quarter, our system had 8,969 properties (1,658,659 rooms), compared to 8,785 properties (1,597,380 rooms) at year-end 2023 and 8,590 properties (1,565,258 rooms) at the end of the 2023 second quarter. In the 2024 first half, we added roughly 61,300 net rooms, including the addition of approximately 37,000 rooms from our exclusive, long-term strategic licensing agreement with MGM Resorts International.
At the end of the 2024 second quarter, we had approximately 3,500 hotels and more than 559,000 rooms in our development pipeline, which includes roughly 33,000 rooms approved for development but not yet under signed contracts. Over 209,000 rooms in the pipeline, or 37 percent, were under construction at the end of the 2024 second quarter. Over half of the rooms in our development pipeline are located outside U.S. & Canada.
We currently expect full year 2024 net rooms growth of 5.5 to 6.0 percent.
Properties and Rooms
The following table shows our properties and rooms by ownership type.
Properties Rooms
June 30, 2024 June 30, 2023 vs. June 30, 2023 June 30, 2024 June 30, 2023 vs. June 30, 2023
Managed
1,980 2,016 (36) (2) % 568,501 567,463 1,038 — %
Franchised/Licensed/Other (1)
6,809 6,403 406 6 % 1,062,749 971,544 91,205 9 %
Owned/Leased
50 52 (2) (4) % 13,110 13,865 (755) (5) %
Residential
130 119 11 9 % 14,299 12,386 1,913 15 %
Total
8,969 8,590 379 4 % 1,658,659 1,565,258 93,401 6 %
(1) In addition to franchised, includes timeshare, The Ritz-Carlton Yacht Collection, and certain license and other agreements.
Lodging Statistics
The following tables present RevPAR, occupancy, and ADR statistics for comparable properties. Systemwide statistics include data from our franchised properties, in addition to our company-operated properties.
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Three Months Ended June 30, 2024 and Change vs. Three Months Ended June 30, 2023
RevPAR Occupancy Average Daily Rate
2024 vs. 2023 2024 vs. 2023 2024 vs. 2023
Comparable Company-Operated Properties
U.S. & Canada $ 189.01 3.7 % 73.6 % 0.9 % pts. $ 256.72 2.4 %
Europe $ 241.85 6.7 % 75.9 % 0.5 % pts. $ 318.49 6.0 %
Middle East & Africa $ 121.16 16.8 % 65.1 % 3.5 % pts. $ 186.07 10.6 %
Greater China $ 82.54 (4.6) % 68.9 % 0.9 % pts. $ 119.84 (5.9) %
Asia Pacific excluding China
$ 110.52 12.0 % 70.6 % 4.1 % pts. $ 156.54 5.4 %
Caribbean & Latin America
$ 171.04 6.3 % 66.5 % 3.6 % pts. $ 257.16 0.5 %
International - All (1)
$ 121.60 6.4 % 69.3 % 2.4 % pts. $ 175.42 2.8 %
Worldwide (2)
$ 150.24 4.9 % 71.1 % 1.7 % pts. $ 211.16 2.4 %
Comparable Systemwide Properties
U.S. & Canada $ 142.20 3.9 % 74.7 % 1.1 % pts. $ 190.33 2.4 %
Europe $ 171.89 6.6 % 75.0 % 2.1 % pts. $ 229.13 3.6 %
Middle East & Africa $ 113.15 18.1 % 64.9 % 3.8 % pts. $ 174.41 11.2 %
Greater China $ 77.12 (4.2) % 67.9 % 0.7 % pts. $ 113.54 (5.1) %
Asia Pacific excluding China
$ 113.44 13.0 % 71.0 % 4.3 % pts. $ 159.71 6.2 %
Caribbean & Latin America
$ 149.03 8.6 % 66.5 % 3.8 % pts. $ 224.16 2.4 %
International - All (1)
$ 121.14 7.4 % 69.7 % 2.6 % pts. $ 173.80 3.4 %
Worldwide (2)
$ 135.52 4.9 % 73.1 % 1.6 % pts. $ 185.33 2.6 %
Six Months Ended June 30, 2024 and Change vs. Six Months Ended June 30, 2023
RevPAR Occupancy Average Daily Rate
2024 vs. 2023 2024 vs. 2023 2024 vs. 2023
Comparable Company-Operated Properties
U.S. & Canada $ 179.89 3.1 % 69.8 % 0.6 % pts. $ 257.72 2.3 %
Europe $ 195.35 6.0 % 68.8 % 0.8 % pts. $ 283.82 4.7 %
Middle East & Africa $ 133.70 14.3 % 67.7 % 3.4 % pts. $ 197.43 8.5 %
Greater China $ 83.84 0.1 % 67.2 % 1.6 % pts. $ 124.72 (2.2) %
Asia Pacific excluding China
$ 117.65 14.1 % 71.5 % 4.8 % pts. $ 164.59 6.5 %
Caribbean & Latin America
$ 196.16 8.2 % 67.3 % 2.8 % pts. $ 291.59 3.7 %
International - All (1)
$ 122.39 8.2 % 68.6 % 2.8 % pts. $ 178.27 3.9 %
Worldwide (2)
$ 146.83 5.5 % 69.1 % 1.8 % pts. $ 212.38 2.7 %
Comparable Systemwide Properties
U.S. & Canada $ 130.96 2.8 % 70.1 % 0.4 % pts. $ 186.70 2.2 %
Europe $ 139.27 6.6 % 67.1 % 2.7 % pts. $ 207.57 2.4 %
Middle East & Africa $ 123.62 15.5 % 66.7 % 3.3 % pts. $ 185.36 9.8 %
Greater China $ 78.13 0.4 % 66.3 % 1.5 % pts. $ 117.82 (1.8) %
Asia Pacific excluding China
$ 118.61 14.8 % 71.3 % 4.7 % pts. $ 166.35 7.3 %
Caribbean & Latin America
$ 167.20 10.3 % 68.1 % 3.8 % pts. $ 245.56 4.2 %
International - All (1)
$ 118.42 9.0 % 67.9 % 3.0 % pts. $ 174.42 4.2 %
Worldwide (2)
$ 126.98 4.5 % 69.4 % 1.2 % pts. $ 182.89 2.7 %
(1) Includes Europe, Middle East & Africa, Greater China, Asia Pacific excluding China, and Caribbean & Latin America.
(2) Includes U.S. & Canada and International - All.
CONSOLIDATED RESULTS
The discussion below presents an analysis of our consolidated results of operations for the 2024 second quarter compared to the 2023 second quarter and for the 2024 first half compared to the 2023 first half. Also see the “Business Trends” section above for further discussion.
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Fee Revenues
Three Months Ended Six Months Ended
($ in millions)
June 30, 2024 June 30, 2023 Change 2024 vs. 2023 June 30, 2024 June 30, 2023 Change 2024 vs. 2023
Base management fees $ 330 $ 318 $ 12 4 % $ 643 $ 611 $ 32 5 %
Franchise fees 818 739 79 11 % 1,506 1,378 128 9 %
Incentive management fees 195 193 2 1 % 404 394 10 3 %
Gross fee revenues 1,343 1,250 93 7 % 2,553 2,383 170 7 %
Contract investment amortization (27) (22) (5) (23) % (50) (43) (7) (16) %
Net fee revenues $ 1,316 $ 1,228 $ 88 7 % $ 2,503 $ 2,340 $ 163 7 %
The increase in base management fees in the 2024 second quarter and 2024 first half primarily reflected higher RevPAR.
The increase in franchise fees in the 2024 second quarter and 2024 first half primarily reflected unit growth ($26 million and $48 million, respectively), higher RevPAR, and higher non-RevPAR related franchise fees ($28 million and $39 million, respectively). Non-RevPAR related franchise fees of $234 million in the 2024 second quarter and $442 million in the 2024 first half increased primarily due to higher co-branded credit card fees ($15 million and $28 million, respectively). In the 2024 second quarter, non-RevPAR related franchise fees also increased due to higher residential branding fees ($13 million).
Owned, Leased, and Other
Three Months Ended Six Months Ended
($ in millions)
June 30, 2024 June 30, 2023 Change 2024 vs. 2023 June 30, 2024 June 30, 2023 Change 2024 vs. 2023
Owned, leased, and other revenue $ 395 $ 390 $ 5 1 % $ 752 $ 746 $ 6 1 %
Owned, leased, and other - direct expenses 296 287 9 3 % 582 568 14 2 %
Owned, leased, and other, net $ 99 $ 103 $ (4) (4) % $ 170 $ 178 $ (8) (4) %
Cost Reimbursements
Three Months Ended Six Months Ended
($ in millions)
June 30, 2024 June 30, 2023 Change 2024 vs. 2023 June 30, 2024 June 30, 2023 Change 2024 vs. 2023
Cost reimbursement revenue $ 4,728 $ 4,457 $ 271 6 % $ 9,161 $ 8,604 $ 557 6 %
Reimbursed expenses 4,645 4,366 279 6 % 9,146 8,502 644 8 %
Cost reimbursements, net $ 83 $ 91 $ (8) (9) % $ 15 $ 102 $ (87) (85) %
Cost reimbursements, net (cost reimbursement revenue, net of reimbursed expenses) varies due to timing differences between the costs we incur for centralized programs and services and the related rei mbursemen ts we receive from property owners and franchisees. Over the long term, our centralized programs and services are not designed to impact our economics, either positively or negatively.
The decrease in cost reimbursements, net in the 2024 second quarter and 2024 first half primarily reflected higher Loyalty Program expenses and lower revenues, net of expenses, for our other centralized programs and services, partially offset by lower expenses related to our insurance program.
Other Operating Expenses
Three Months Ended Six Months Ended
($ in millions)
June 30, 2024 June 30, 2023 Change 2024 vs. 2023 June 30, 2024 June 30, 2023 Change 2024 vs. 2023
Depreciation, amortization, and other $ 47 $ 48 $ (1) (2) % $ 92 $ 92 $ — — %
General, administrative, and other 248 240 8 3 % 509 442 67 15 %
Merger-related charges and other 8 38 (30) (79) % 16 39 (23) (59) %
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General, administrative, and other expenses increased in the 2024 first half primarily due to higher compensation costs.
Merger-related charges and other expenses decreased in the 2024 second quarter and 2024 first half primarily due to lower charges related to the Data Security Incident discussed in Note 5.
Non-Operating Income (Expense)
Three Months Ended Six Months Ended
($ in millions)
June 30, 2024 June 30, 2023 Change 2024 vs. 2023 June 30, 2024 June 30, 2023 Change 2024 vs. 2023
Gains and other income, net $ 4 $ 2 $ 2 100 % $ 8 $ 5 $ 3 60 %
Interest expense (173) (140) (33) (24) % (336) (266) (70) (26) %
Interest income 9 (1) 10 nm* 19 14 5 36 %
Equity in earnings 5 7 (2) (29) % 5 8 (3) (38) %
* Percentage change is not meaningful.
Interest expense increased in the 2024 second quarter and 2024 first half primarily due to higher debt balances driven by Senior Notes issuances, net of maturities ($28 million and $58 million, respectively).
Income Taxes
Three Months Ended Six Months Ended
($ in millions)
June 30, 2024 June 30, 2023 Change 2024 vs. 2023 June 30, 2024 June 30, 2023 Change 2024 vs. 2023
Provision for income taxes $ (268) $ (238) $ (30) (13) % $ (431) $ (325) $ (106) (33) %
Provision for income taxes increased by $30 million in the 2024 second quarter primarily due to the increase in pre-tax income ($18 million).
Provision for income taxes increased by $106 million in the 2024 first half primarily due to the prior year release of tax reserves ($103 million), which was mostly due to completion of a tax audit, and a shift in earnings to jurisdictions with higher tax rates ($22 million).
BUSINESS SEGMENTS
The following discussion presents an analysis of the operating results of our reportable business segments for the 2024 second quarter compared to the 2023 second quarter and for the 2024 first half compared to the 2023 first half. Also see the “Business Trends” section above for further discussion.
Three Months Ended Six Months Ended
($ in millions)
June 30, 2024 June 30, 2023 Change 2024 vs. 2023 June 30, 2024 June 30, 2023 Change 2024 vs. 2023
U.S. & Canada
Segment net fee revenues
$ 777 $ 734 $ 43 6 % $ 1,442 $ 1,390 $ 52 4 %
Segment profit 787 756 31 4 % 1,412 1,413 (1) — %
EMEA
Segment net fee revenues
150 130 20 15 % 265 232 33 14 %
Segment profit 153 132 21 16 % 234 210 24 11 %
Greater China
Segment net fee revenues
59 68 (9) (13) % 124 125 (1) (1) %
Segment profit 47 59 (12) (20) % 98 105 (7) (7) %
APEC
Segment net fee revenues
73 62 11 18 % 159 128 31 24 %
Segment profit 62 57 5 9 % 134 113 21 19 %
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Properties Rooms
June 30, 2024 June 30, 2023 vs. June 30, 2023 June 30, 2024 June 30, 2023 vs. June 30, 2023
U.S. & Canada
6,054 5,906 148 3 % 1,025,351 972,181 53,170 5 %
EMEA
1,176 1,086 90 8 % 223,249 210,872 12,377 6 %
Greater China
550 495 55 11 % 164,400 152,699 11,701 8 %
APEC
590 530 60 11 % 134,636 122,075 12,561 10 %
In the 2024 second quarter and 2024 first half, net fee revenue grew in U.S. & Canada, EMEA, and APEC, compared to the same periods in 2023, primarily reflecting higher RevPAR and unit growth (see the Lodging Statistics and Properties and Rooms tables above for more information). In Greater China, net fee revenue decreased in the 2024 second quarter, primarily due to lower demand.
Segment profits for all segments shown above reflected higher general, administrative, and other expenses primarily due to higher compensation costs compared to the 2023 second quarter and 2023 first half. Additionally, U.S. & Canada segment profit reflected $6 million and $30 million of lower cost reimbursement revenue, net of reimbursed expenses compared to the 2023 second quarter and 2023 first half, respectively .
LIQUIDITY AND CAPITAL RESOURCES
Our long-term financial objectives include maintaining diversified financing sources, optimizing the mix and maturity of our long-term debt, and reducing our working capital. At the end of the 2024 second quarter, our long-term debt had a weighted average interest rate of 4.5 percent and a weighted average maturity of approximately 5.1 years. The ratio of our fixed-rate long-term debt to our total long-term debt was 0.9 to 1.0 at the end of the 2024 second quarter.
Sources of Liquidity
Our Credit Facility
We are party to a $4.5 billion multicurrency revolving credit agreement (as amended, the “Credit Facility”). Available borrowings under the Credit Facility support our commercial paper program and general corporate needs. U.S. dollar borrowings under the Credit Facility bear interest at SOFR (the Secured Overnight Financing Rate) plus a spread based on our public debt rating. We also pay quarterly fees on the Credit Facility at a rate based on our public debt rating. We classify outstanding borrowings under the Credit Facility and outstanding commercial paper borrowings (which generally have short-term maturities of 45 days or less) as long-term based on our ability and intent to refinance the outstanding borrowings on a long-term basis. The Credit Facility expires on December 14, 2027.
The Credit Facility contains certain covenants, including a single financial covenant that limits our maximum leverage (consisting of the ratio of Adjusted Total Debt to EBITDA, each as defined in the Credit Facility) to not more than 4.5 to 1.0. Our outstanding public debt does not contain a corresponding financial covenant or a requirement that we maintain certain financial ratios. We currently satisfy the covenants in our Credit Facility and public debt instruments, including the leverage covenant under the Credit Facility, and do not expect the covenants will restrict our ability to meet our anticipated borrowing and liquidity needs.
We monitor the status of the capital markets and regularly evaluate the effect that changes in capital market conditions may have on our ability to fund our liquidity needs. We believe the Credit Facility, and our access to capital markets, together with cash we expect to generate from operations, remain adequate to meet our liquidity requirements.
Commercial Paper
We issue commercial paper in the U.S. Because we do not have purchase commitments from buyers for our commercial paper, our ability to issue commercial paper is subject to market demand. We do not expect that fluctuations in the demand for commercial paper will affect our liquidity, given our borrowing capacity under the Credit Facility and access to capital markets.
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Sources and Uses of Cash
Cash, cash equivalents, and restricted cash totaled $370 million at June 30, 2024, an increase of $4 million from year-end 2023, primarily due to net cash provided by operating activities ($1,551 million), Senior Notes issuances, net of repayments ($918 million), and net commercial paper issuances ($342 million), partially offset by share repurchases ($2,156 million), dividends paid ($330 million), capital and technology expenditures ($234 million), and financing outflows for employee stock-based compensation withholding taxes ($125 million).
Our ratio of current assets to current liabilities was 0.4 to 1.0 at the end of the 2024 second quarter. We have significant borrowing capacity under our Credit Facility should we need additional working capital.
Capital Expenditures and Other Investments
We made capital and technology expenditures of $234 million in the 2024 first half and $194 million in the 2023 first half. We expect capital expenditures and other investments will total approximately $1.0 billion to $1.2 billion for the 2024 full year, including capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities (including approximately $200 million for maintenance capital spending). Our anticipated capital and technology expenditures include $200 million of spending related to our option to purchase the land underlying the Sheraton Grand Chicago, which we discuss in Note 5.
Share Repurchases and Dividends
We repurchased 4.1 million shares of our common stock for $1.0 billion in the 2024 second quarter. Year-to-date through July 29, 2024, we repurchased 10.4 million shares for $2.5 billion. For additional information, see “Issuer Purchases of Equity Securities” in Part II, Item 2.
Our Board of Directors declared the following quarterly cash dividends in 2024 to date: (1) $0.52 per share declared on February 8, 2024 and paid on March 29, 2024 to stockholders of record on February 22, 2024; and (2) $0.63 per share declared on May 10, 2024 and paid on June 28, 2024 to stockholders of record on May 24, 2024.
We expect to continue to return cash to stockholders through a combination of share repurchases and cash dividends.
Material Cash Requirements
As of the end of the 2024 second quarter, there have been no material changes to our cash requirements as disclosed in our 2023 Form 10-K. See Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” of our 2023 Form 10-K for more information about our cash requirements. Also, see Note 6 for information on our long-term debt.
At June 30, 2024, projected Deemed Repatriation Transition Tax payments under the 2017 Tax Cuts and Jobs Act totaled $135 million, which is payable within the next 12 months from June 30, 2024.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Our preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures. We have discussed those policies and estimates that we believe are critical and require the use of complex judgment in their application in our 2023 Form 10-K. We have made no material changes to our critical accounting policies or the methodologies or assumptions that we apply under them.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our exposure to market risk has not materially changed since December 31, 2023. See Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our 2023 Form 10-K for more information on our exposure to market risk.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.