Reportable Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

Hotel 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 hotel franchising business include royalty fees, initial franchise and relicensing fees, marketing and reservation system fees, procurement services revenue and other hotel 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 hotel franchising business. The revenues received from franchisees that are used to pay for part of the Company's ongoing operations are included in hotel franchising revenues and are offset by the related expenses paid for marketing and reservation activities to calculate hotel 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, which are included in the Corporate and Other column. Corporate and Other revenues includes rental income related to an office building owned by the Company, as well as revenues from a recently acquired company which provides technological solutions for vacation rental management companies. Equity in earnings or losses from hotel franchising related joint ventures is allocated to the Company's hotel franchising segment. As described in Note 7, certain interest expenses related to the Company's marketing and reservation activities are allocated to the hotel 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 tables present the financial information for the Company's segments:

	Year Ended December 31, 2016
	Hotel Franchising		SkyTouch Technology			Corporate & Other			Elimination Adjustments		Consolidated
	(in thousands)
Revenues	$	915,825	$	1,933		$	6,883		$	—	$	924,641
Operating income (loss)	307,354		(18,088		)	(50,371		)	—		238,895
Depreciation and amortization	5,191		1,853			4,661			—		11,705
Income (loss) from continuing operations, before income taxes	307,847		(18,088		)	(89,779		)	—		199,980
Capital expenditures	17,552		1,159			3,256			—		21,967
Total assets	520,674		3,517			328,277			—		852,468
	Year Ended December 31, 2015
	Hotel Franchising		SkyTouch Technology			Corporate & Other			Elimination Adjustments		Consolidated
	(in thousands)
Revenues	$	855,462	$	1,186		$	3,230		$	—	$	859,878
Operating income (loss)	285,752		(18,971		)	(41,462		)	—		225,319
Depreciation and amortization	6,762		1,450			3,330			—		11,542
Income (loss) from continuing operations, before income taxes	284,851		(18,971		)	(81,895		)	—		183,985
Capital expenditures	28,662		1,454			4,544			—		34,660
Total assets	397,428		4,073			315,509			—		717,010
	Year Ended December 31, 2014
	Hotel Franchising		SkyTouch Technology			Corporate & Other			Elimination Adjustment		Consolidated
	(in thousands)
Revenues	$	757,370	$	600		$	—		$	—	$	757,970
Operating income (loss)	273,177		(17,065		)	(41,544		)	—		214,568
Depreciation and amortization	6,125		1,007			2,233			—		9,365
Income (loss) from continuing operations, before income taxes	272,520		(17,065		)	(81,697		)	—		173,758
Capital expenditures	19,958		1,816			14,800			—		36,574
Total assets	318,306		4,197			315,414			—		637,917

The results of the Company's international operations are included in the Hotel Franchising and Corporate & Other segments. Revenues generated by foreign operations, including royalty, marketing and reservations system fees and other revenues for the years ended December 31, 2016, 2015 and 2014 were $58.0 million, $53.9 million and $57.6 million, respectively. Long-lived assets related to international operations were $74.9 million, $49.3 million and $4.5 million as of December 31, 2016, 2015 and 2014, respectively. All other long-lived assets of the Company are associated with domestic activities. The Company's investment in equity method investees at December 31, 2016, 2015 and 2014 was $94.8 million, $67.0 million, and $50.6 million, respectively. These investments are included as a component of total assets for the Company’s hotel franchising segment.