MARRIOTT INTERNATIONAL INC /MD/MAR

MARRIOTT INTERNATIONAL INC /MD/ Leases Disclosure

10-KFiled Feb 10, 20262 min read
LEASES
We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five- or 10-year periods. We have generally not included these renewal periods in the lease term as it is not reasonably certain that we will exercise the renewal option.
The following table details the composition of lease expense and supplemental cash flow information for 2025, 2024, and 2023:
(in millions)202520242023
Operating lease cost
$139 $143 $155 
Variable lease cost122 122 128 
Operating cash outflows for operating leases152 154 240 
Operating lease assets obtained in exchange for lease obligation
160 37 25 
The following table presents our future minimum lease payments at year-end 2025:
(in millions)Operating LeasesFinance Leases
2026$144$16
202712516
202811817
202910217
20309618
Thereafter66860
Total minimum lease payments$1,253$144
Less: Amount representing interest27524
Present value of minimum lease payments$978$120
The following table presents the composition of our current and noncurrent lease liability at year-end 2025 and 2024:
(in millions)December 31, 2025December 31, 2024
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Current (1)
$99 $11 $104 $9 
Noncurrent (2)
879 109 794 115 
$978 $120 $898 $124 
(1)Operating leases are recorded in the “Accrued expenses and other” and finance leases are recorded in the “Current portion of long-term debt” captions of our Balance Sheets.
(2)Operating leases are recorded in the “Operating lease liabilities” and finance leases are recorded in the “Long-term debt” captions of our Balance Sheets.
The following table presents additional information about our lease obligations at year-end 2025 and 2024:
20252024
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted Average Remaining Lease Term (in years)128139
Weighted Average Discount Rate4.5 %4.4 %4.3 %4.4 %

Historical Timeline

Fiscal YearFiled
2025Feb 10, 2026Showing above
2024Feb 11, 2025
2023Feb 13, 2024
2022Feb 14, 2023
2021Feb 15, 2022
2020Feb 18, 2021
2019Feb 27, 2020
2018Mar 1, 2019
2016Feb 21, 2017
2015Feb 18, 2016

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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