Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.22.0.1
Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information
16. 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), 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. During the first quarter of 2021, the Company modified the definition of adjusted EBITDA to exclude the amortization of development advance notes to reflect how the Company’s chief operating decision maker reviews operating performance beginning in 2021. The Company has applied the modified definition of adjusted EBITDA to all periods presented.
Hotel Franchising
Hotel Management
Corporate and Other (a)
Total
Year Ended or as of December 31, 2021
Net revenues
 $ 1,099  $ 466  $ —  $ 1,565 
Adjusted EBITDA
 592  57  (59) 590 
Depreciation and amortization
 60  26  9  95 
Segment assets
 3,575  394  300  4,269 
Capital expenditures
 30  4  3  37 
Year Ended or as of December 31, 2020
Net revenues
 $ 863  $ 437  $ —  $ 1,300 
Adjusted EBITDA (b)
392  13  (69) 336 
Depreciation and amortization
 63  25  10  98 
Segment assets
 3,629  418  597  4,644 
Capital expenditures
 24  4  5  33 
Year Ended or as of December 31, 2019
Net revenues
 $ 1,279  $ 768  $ 6  $ 2,053 
Adjusted EBITDA (b)
629  66  (74) 621 
Depreciation and amortization
 72  26  11  109 
Segment assets
 3,817  500  216  4,533 
Capital expenditures
 35  8  7  50 
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(a)    Includes the elimination of transactions between segments.
(b)    Adjusted EBITDA for 2020 and 2019 has been recasted to conform with the current year presentation.
Provided below is a reconciliation of net income/(loss) to adjusted EBITDA.
Year Ended December 31,
2021
2020 (a)
2019 (a)
Net income/(loss) $ 244  $ (132) $ 157 
Provision for/(benefit from) income taxes 91  (26) 50 
Depreciation and amortization 95  98  109 
Interest expense, net 93  112  100 
Early extinguishment of debt 18  —  — 
Stock-based compensation expense 28  19  15 
Development advance notes amortization 11  9  8 
Impairments, net 6  206  45 
Separation-related expenses 3  2  22 
Restructuring costs —  34  8 
Transaction-related expenses, net —  12  40 
Contract termination costs —  —  42 
Transaction-related item —  —  20 
Foreign currency impact of highly inflationary countries 1  2  5 
Adjusted EBITDA
 $ 590  $ 336  $ 621 

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(a)    Adjusted EBITDA for 2020 and 2019 has been recasted to conform with the current year presentation.
The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries.
United States
All Other Countries (a)
Total
Year Ended or As of December 31, 2021
Net revenues $ 1,366  $ 199  $ 1,565 
Net long-lived assets 3,199  107  3,306 
Year Ended or As of December 31, 2020
Net revenues $ 1,159  $ 141  $ 1,300 
Net long-lived assets 3,334  184  3,518 
Year Ended or As of December 31, 2019
Net revenues $ 1,805  $ 248  $ 2,053 
Net long-lived assets 3,619  173  3,792 
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(a)    Includes U.S. territories.