BUSINESS SEGMENTS

We are a diversified global lodging company with operations in the following reportable business segments:


•	North American Full-Service, which includes our Luxury and Premium brands located in the U.S. and Canada;


•	North American Limited-Service, which includes our Select brands located in the U.S. and Canada; and


•	Asia Pacific, which includes all brand tiers in our Asia Pacific region.

The following operating segments do not meet the applicable accounting criteria for separate disclosure as reportable business segments: Caribbean and Latin America, Europe, and Middle East and Africa. We present these operating segments together as “Other International” in the tables below.

We evaluate the performance of our operating segments using “segment profits” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, or merger-related costs and charges. We assign gains and losses, equity in earnings or losses from our joint ventures, and direct general, administrative, and other expenses to each of our segments. “Other unallocated corporate” represents a portion of our revenues, including license fees we receive from our credit card programs and fees from vacation ownership licensing agreements, general, administrative, and other expenses, merger-related costs and charges, equity in earnings or losses, and other gains or losses that we do not allocate to our segments. Beginning in the 2018 first quarter, “Other unallocated corporate” also includes revenues and expenses for our Loyalty Program, and we reflected this change in the prior period amounts shown in the tables below.

Our President and Chief Executive Officer, who is our chief operating decision maker, monitors assets for the consolidated company but does not use assets by operating segment when assessing performance or making operating segment resource allocations.

Segment Revenues



	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
North American Full-Service	$	3,123	$	3,096	$	9,778	$	9,613
North American Limited-Service	875		863		2,524		2,440
Asia Pacific	275		263		818		756
Other International	561		591		1,695		1,691
Total segment revenues	4,834		4,813		14,815		14,500
Other unallocated corporate	215		265		586		701
Total consolidated revenues	$	5,049	$	5,078	$	15,401	$	15,201

Segment Profits



	Three Months Ended						Nine Months Ended
($ in millions)	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
North American Full-Service	$	248		$	295		$	919		$	972
North American Limited-Service	206			255			640			685
Asia Pacific	106			93			358			260
Other International	176			140			495			371
Total segment profits	736			783			2,412			2,288
Other unallocated corporate	(87		)	18			(316		)	(149		)
Interest expense, net of interest income	(81		)	(63		)	(230		)	(191		)
Income taxes	(85		)	(253		)	(375		)	(603		)
Net income	$	483		$	485		$	1,491		$	1,345