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Reportable Segment Information
6 Months Ended
Jun. 30, 2014
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.
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 franchising related joint ventures is allocated to the Company's franchising segment. All other joint ventures are allocated to corporate & other. 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.
The following table presents the financial information for the Company's segments:

 
Three Months Ended June 30, 2014
 
Three Months Ended June 30, 2013 (Restated)
(In thousands)
Franchising
 
SkyTouch Technology
 
Corporate &
Other
 
Consolidated
 
Franchising
 
SkyTouch Technology
 
Corporate &
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Revenues
$
197,596

 
$
68

 
$

 
$
197,664

 
$
190,930

 
$

 
$

 
$
190,930

Operating income (loss)
$
75,211

 
$
(4,360
)
 
$
(10,698
)
 
$
60,153

 
$
67,895

 
$
(2,661
)
 
$
(10,495
)
 
$
54,739

Income (loss) from continuing operations before income taxes
$
75,203

 
$
(4,360
)
 
$
(20,609
)
 
$
50,234

 
$
67,963

 
$
(2,661
)
 
$
(20,798
)
 
$
44,504



 
Six Months Ended June 30, 2014
 
Six Months Ended June 30, 2013 (Restated)
(In thousands)
Franchising
 
SkyTouch Technology
 
Corporate &
Other
 
Consolidated
 
Franchising
 
SkyTouch Technology
 
Corporate &
Other
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Revenues
$
357,279

 
$
121

 
$

 
$
357,400

 
$
339,101

 
$

 
$

 
$
339,101

Operating income (loss)
$
129,421

 
$
(7,866
)
 
$
(20,230
)
 
$
101,325

 
$
118,253

 
$
(4,466
)
 
$
(21,909
)
 
$
91,878

Income (loss) from continuing operations before income taxes
$
129,422

 
$
(7,866
)
 
$
(39,794
)
 
$
81,762

 
$
118,244

 
$
(4,466
)
 
$
(41,692
)
 
$
72,086