Reportable Segment Information

Hotel Franchising: Hotel Franchising includes the Company's hotel franchising operations consisting of its thirteen brands. The thirteen 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.

The financial results for the year ended December 31, 2017 and 2016 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 for all periods presented.

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 activities and its SaaS technology solutions divisions which provide cloud-based property management software to non-franchised hoteliers and vacation rental management companies. 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 segments.

The following tables present the financial information for the Company's segments:



	For the Year Ended December 31, 2018
	Hotel Franchising		Corporate & Other			Consolidated
(In thousands)
Revenues	$	1,027,047	$	14,257		$	1,041,304
Operating income (loss)	378,014		(59,540		)	318,474
Depreciation and amortization	7,352		6,978			14,330
Income (loss) before income taxes	372,691		(99,433		)	273,258
Capital expenditures	34,737		12,936			47,673
Total assets	990,943		147,427			1,138,370

	For the Year Ended December 31, 2017
	Hotel Franchising		Corporate & Other			Consolidated
(In thousands)
Revenues	$	930,479	$	10,818		$	941,297
Operating income (loss)	356,187		(66,534		)	289,653
Depreciation and amortization	462		6,218			6,680
Income (loss) before income taxes	351,641		(102,424		)	249,217
Capital expenditures	20,839		2,598			23,437
Total assets	651,264		343,927			995,191

	For the Year Ended December 31, 2016
	Hotel Franchising		Corporate & Other			Consolidated
(In thousands)
Revenues	$	799,093	$	8,816		$	807,909
Operating income (loss)	255,514		(68,459		)	187,055
Depreciation and amortization	482		6,514			6,996
Income (loss) before income taxes	256,007		(107,867		)	148,140
Capital expenditures	20,600		4,591			25,191
Total assets	544,987		363,469			908,456

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, 2018, 2017 and 2016 were $72.1 million, $65.8 million, and $58.2 million, respectively. Long-lived assets related to international operations were $63.6 million, $91.7 million, and $79.1 million as of December 31, 2018, 2017 and 2016, 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, 2018, 2017 and 2016 was $109.0 million, $134.2 million and $94.8 million, respectively. These investments are included as a component of total assets in the Hotel Franchising segment.