Reportable Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Reportable Segments

Reportable Segments

The Hotel Franchising reportable segment includes the Company's hotel franchising operations consisting of its 14 brands. The 14 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 hotel franchise agreements to provide marketing and reservation services appropriate for the operation of its systems. 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 system activities to calculate hotel franchising operating income. Equity in earnings or losses from hotel franchising related investments in affiliates is allocated to the Company's hotel franchising segment.

The Company evaluates its hotel franchising segment based primarily on the results of the segment without allocating corporate expenses, indirect general and administrative expenses, interest expense, interest income, other gains and losses or income taxes, which are included in the Corporate & Other column. Corporate & Other revenues include owned hotel revenues, rental income related to an office building owned by the Company, and revenues related to the Company's SaaS technology solutions division which provide cloud-based property management software to non-franchised hoteliers.

The intersegment revenue adjustment is from the elimination of Hotel Franchising revenue which include royalty and marketing and reservation system fees charged to our owned hotels against franchise fee expense recognized by our owned hotels in Corporate & Other operating income (loss).

Our President and Chief Executive Officer, who is our CODM, does not use assets by operating segment when assessing performance or making operating segment resource allocation decisions and therefore assets by segment are not disclosed below.

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

	For the Year Ended December 31, 2021
(in thousands)	Hotel Franchising		Corporate & Other		Intersegment Eliminations		Consolidated
Revenues	$	1,026,409	$	45,740	$	(2,851)	$	1,069,298
Operating income (loss)	485,199		(56,266)		—		428,933
Depreciation and amortization	8,050		16,723		—		24,773
Income (loss) before income taxes	468,894		(92,402)		—		376,492
	For the Year Ended December 31, 2020
(in thousands)	Hotel Franchising		Corporate & Other		Intersegment Eliminations		Consolidated
Revenues	$	747,329	$	28,257	$	(1,514)	$	774,072
Operating income (loss)	191,301		(69,634)		—		121,667
Depreciation and amortization	8,000		17,831		—		25,831
Income (loss) before income taxes	176,012		(123,006)		—		53,006
	For the Year Ended December 31, 2019
(in thousands)	Hotel Franchising		Corporate & Other		Intersegment Eliminations		Consolidated
Revenues	$	1,085,860	$	30,700	$	(1,740)	$	1,114,820
Operating income (loss)	392,405		(73,867)		—		318,538
Depreciation and amortization	7,995		10,833		—		18,828
Income (loss) before income taxes	382,829		(112,900)		—		269,929

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, 2021, 2020 and 2019 were $46.8 million, $42.6 million, and $69.5 million, respectively.