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Reportable Segment Information
9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Reportable Segment Information
Reportable Segment Information

Franchising: Franchising includes the Company's hotel franchising operations consisting of its eleven brands. The eleven brands are aggregated within this segment considering their similar economic characteristics, types of customers, distribution channels and regulatory business environments. Revenues from the franchising business include royalty fees, initial franchise and relicensing fees, marketing and reservation system fees, procurement services revenue and other franchising related revenue. The Company is obligated under its franchise agreements to provide marketing and reservation services appropriate for the 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 ongoing operations are included in franchising revenues and are offset by the related expenses paid for marketing and reservation activities to calculate franchising operating income.
SkyTouch Technology: SkyTouch Technology ("SkyTouch") is a division of the Company that develops and markets cloud-based technology products to hoteliers not under franchise agreements with the Company to improve their efficiency and profitability.
The Company evaluates its segments based primarily on the results of the segment without allocating corporate expenses, income taxes or indirect general and administrative expenses. Equity in earnings or losses from joint ventures is allocated to the Company's franchising segment. Corporate and other revenue consists of hotel operations; corporate and other expenses consist primarily of overhead selling, general and administrative costs such as finance, legal, human resources and other general administrative expenses that are not allocated to the Company's two segments. As described in Note 4, certain interest expenses related to the Company's marketing and reservation activities are allocated to the franchising segment. The Company does not allocate the remaining interest expense, interest income, other gains and losses or income taxes to its segments.
Financial results for the three and nine months ended September 30, 2012, have been updated to reflect the financial results for the Company's SkyTouch segment which was established as a separate segment in 2013. The financial results related to SkyTouch were previously reported as a component of Corporate & Other.
The following table presents the financial information for the Company's segments:
        
 
Three Months Ended September 30, 2013
 
Three Months Ended September 30, 2012
(In thousands)
Franchising
 
SkyTouch Technology
 
Corporate &
Other
 
Consolidated
 
Franchising
 
SkyTouch Technology
 
Corporate &
Other
 
Consolidated
Revenues
$
221,839

 
$
13

 
$
1,310

 
$
223,162

 
$
209,175

 
$

 
$
1,238

 
$
210,413

Operating income (loss)
$
75,085

 
$
(3,271
)
 
$
(5,265
)
 
$
66,549

 
$
76,290

 
$
(720
)
 
$
(10,317
)
 
$
65,253

Income (loss) before income taxes
$
75,506

 
$
(3,271
)
 
$
(14,643
)
 
$
57,592

 
$
76,461

 
$
(720
)
 
$
(20,073
)
 
$
55,668



        

 
Nine Months Ended September 30, 2013
 
Nine Months Ended September 30, 2012
(In thousands)
Franchising
 
SkyTouch Technology
 
Corporate &
Other
 
Consolidated
 
Franchising
 
SkyTouch Technology
 
Corporate &
Other
 
Consolidated
Revenues
$
539,999

 
$
13

 
$
3,600

 
$
543,612

 
$
509,763

 
$

 
$
3,440

 
$
513,203

Operating income (loss)
$
185,491

 
$
(8,768
)
 
$
(29,386
)
 
$
147,337

 
$
184,096

 
$
(2,074
)
 
$
(34,114
)
 
$
147,908

Income (loss) before income taxes
$
185,831

 
$
(8,768
)
 
$
(58,475
)
 
$
118,588

 
$
184,084

 
$
(2,074
)
 
$
(48,170
)
 
$
133,840