Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

14. SEGMENT INFORMATION

The reportable segments presented below represent the Company’s operating segments for which separate financial information is available and is utilized on a regular basis by its chief operating decision maker to assess performance and allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. Management evaluates the operating results of each of its reportable segments based upon net revenues and “adjusted EBITDA”, which is defined as net income/(loss) excluding net interest expense, depreciation and amortization, early extinguishment of debt charges, impairment charges, restructuring and related charges, contract termination costs, transaction-related items (acquisition-, disposition- or separation-related), (gain)/loss on asset sales, foreign currency impacts of highly inflationary countries, stock-based compensation expense, income taxes and development advance notes amortization. The Company believes that adjusted EBITDA is a useful measure of performance for its segments which, when considered with U.S. GAAP measures, allows a more complete understanding of its operating performance. The Company uses this measure internally to assess operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. The Company’s presentation of adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

	Three Months Ended June 30,
	2022				2021
	Net Revenues		Adjusted EBITDA		Net Revenues		Adjusted EBITDA
Hotel Franchising	$	335	$	185	$	283	$	166
Hotel Management	51		6		123		16
Total Reportable Segments	386		191		406		182
Corporate and Other	—		(16)		—		(14)
Total Company	$	386	$	175	$	406	$	168

The table below is a reconciliation of net income to adjusted EBITDA.

	Three Months Ended June 30,
	2022		2021
Net income	$	92	$	68
Provision for income taxes	31		25
Depreciation and amortization	17		24
Interest expense, net	20		22
Early extinguishment of debt	2		18
Stock-based compensation expense	9		8
Development advance notes amortization	3		2
Loss/(gain) on asset sales	1		—
Separation-related (income)/expenses	(1)		1
Foreign currency impact of highly inflationary countries	1		—
Adjusted EBITDA	$	175	$	168

	Six Months Ended June 30,
	2022			2021
	Net Revenues		Adjusted EBITDA	Net Revenues		Adjusted EBITDA
Hotel Franchising	$	606	340	$	492	$	271
Hotel Management	151		26	217		22
Total Reportable Segments	757		366	709		293
Corporate and Other	—		(32)	—		(28)
Total Company	$	757	334	$	709	$	265

The table below is a reconciliation of net income to adjusted EBITDA.

	Six Months Ended June 30,
	2022		2021
Net income	$	198	$	93
Provision for income taxes	66		35
Depreciation and amortization	40		47
Interest expense, net	39		51
Early extinguishment of debt	2		18
Stock-based compensation expense	17		13
Development advance notes amortization	6		4
Loss/(gain) on asset sales	(35)		—
Separation-related (income)/expenses	(1)		3
Foreign currency impact of highly inflationary countries	2		1
Adjusted EBITDA	$	334	$	265