Reportable Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

The Company has a single reportable segment encompassing its franchising business. Revenues from the franchising business include royalty fees, initial franchise and relicensing fees, marketing and reservation system fees, procurement services revenue and other revenue. The Company is obligated under its franchise agreements to provide marketing and reservation services appropriate for the successful operation of its systems. These services do not represent separate reportable segments as their operations are directly related to the Company’s franchising business. The revenues received from franchisees that are used to pay for part of the Company’s central on-going operations are included in franchising revenues and are offset by the related expenses paid for marketing and reservation activities to calculate franchising operating income. Corporate and other revenue consists of hotel operations; corporate and other expenses consist of primarily of overhead SG&A costs such as finance, legal, human resources, etc. Except as described in Note 6, the Company does not allocate interest and dividend income, interest expense or income taxes to its franchising segment.

The following table presents certain financial information for the Company’s franchising segment.

	Year Ended December 31, 2012
	Franchising		Corporate & Other			Elimination Adjustments			Consolidated
	(In thousands)
Revenues	$	686,936	$	4,573		$	—		$	691,509
Operating income (loss)	241,500		(48,358		)	—			193,142
Depreciation and amortization	15,812		6,946			(14,532		)	8,226
Income (loss) before income taxes	241,712		(72,544		)	—			169,168
Capital expenditures	13,998		1,445			—			15,443
Total assets	307,417		203,355			—			510,772
	Year Ended December 31, 2011
	Franchising		Corporate & Other			Elimination Adjustments			Consolidated
	(In thousands)
Revenues	$	634,437	$	4,356		$	—		$	638,793
Operating income (loss)	220,084		(48,221		)	—			171,863
Depreciation and amortization	14,489		6,854			(13,319		)	8,024
Income (loss) before income taxes	218,586		(60,529		)	—			158,057
Capital expenditures	9,553		1,371			—			10,924
Total assets	266,267		181,422			—			447,689
	Year Ended December 31, 2010
	Franchising		Corporate & Other			Elimination Adjustments			Consolidated
	(In thousands)
Revenues	$	592,045	$	4,031		$	—		$	596,076
Operating income (loss)	202,522		(41,760		)	—			160,762
Depreciation and amortization	13,524		7,265			(12,447		)	8,342
Income (loss) before income taxes	203,748		(45,537		)	—			158,211
Capital expenditures	22,418		1,950			—			24,368
Total assets	245,529		166,193			—			411,722

Long-lived assets related to international operations were $5.4 million, $6.5 million and $7.5 million as of December 31, 2012, 2011 and 2010, respectively. All other long-lived assets of the Company are associated with domestic activities.