Reportable Segment Information

Hotel Franchising: Hotel franchising includes the Company's hotel franchising operations consisting of its twelve brands. The twelve 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 franchising related revenue. The Company is obligated under its hotel 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.

The financial results for the three months ended March 31, 2017 have been updated to reflect the Company's adoption of Topic 606 as discussed in Note 1. In addition, the financial results related to SkyTouch are now reported as a component of Corporate & Other.

The Company evaluates its hotel franchising segment 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 & Other column. Corporate & Other revenues include rental income related to an office building owned by the Company, as well as revenues related to the Company's vacation rental initiatives and its SkyTouch operations related to providing cloud-based technology products to hoteliers not under franchise agreements with the Company. Equity in earnings or losses from hotel franchising related joint ventures is allocated to the Company's hotel franchising segment. The Company does not allocate interest expense, interest income, other gains and losses or income taxes to its hotel franchising segment.

The following table presents the financial information for the Company's hotel franchising segment:



	Three Months Ended March 31, 2018							Three Months Ended March 31, 2017
(In thousands)	Hotel Franchising		Corporate & Other			Consolidated		Hotel Franchising		Corporate & Other			Consolidated

Revenues	$	205,622	$	3,772		$	209,394	$	186,313	$	2,555		$	188,868
Operating income (loss)	$	59,358	$	(13,109	)	$	46,249	$	58,256	$	(12,853	)	$	45,403
Income (loss) before income taxes	$	53,389	$	(22,928	)	$	30,461	$	56,176	$	(21,897	)	$	34,279