Summary
Marriott International, Inc. (MAR) filed an 8-K on November 30, 2018, to disclose a significant cybersecurity incident. The company issued a press release detailing the event, which is incorporated into the filing. While the full financial impact is still premature to estimate, Marriott indicated that it carries insurance, including cyber insurance, and is actively working with its carriers to assess coverage. The company expects to separately disclose costs and any insurance reimbursements related to this incident in its financial statements and public filings, though the timing of recognition may differ. Importantly, Marriott stated that it does not believe the incident will impact its long-term financial health, citing its strong cash flow generation as a manager and franchisor of lodging brands and its commitment to maintaining an investment-grade credit rating.
Key Highlights
- 1Marriott International announced a cybersecurity incident via an 8-K filing on November 30, 2018.
- 2The full financial impact of the incident is currently difficult to estimate.
- 3The company possesses insurance, including cyber insurance, and is in the process of assessing coverage with its carriers.
- 4Costs related to the incident and any insurance reimbursements will be disclosed separately in future filings.
- 5Marriott believes the incident will not negatively affect its long-term financial health.
- 6The company highlighted its strong cash flow generation and commitment to maintaining its investment-grade credit rating.