Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.22.1
Segment Information
 3 Months Ended
Mar. 31, 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 sale, 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 March 31,
2022 2021
Net Revenues
Adjusted EBITDA
Net Revenues
Adjusted EBITDA
Hotel Franchising
 $ 272  $ 155  $ 209  $ 105 
Hotel Management
 99  20  94  5 
Total Reportable Segments
 371  175  303  110 
Corporate and Other
 —  (16) —  (13)
Total Company
 $ 371  $ 159  $ 303  $ 97 
The table below is a reconciliation of net income to adjusted EBITDA.
Three Months Ended March 31,
2022 2021
Net income $ 106  $ 24 
Provision for income taxes 34  11 
Depreciation and amortization 24  24 
Interest expense, net 20  28 
Stock-based compensation expense 8  5 
Development advance notes amortization 3  2 
Gain on asset sale (36) — 
Separation-related expenses —  2 
Foreign currency impact of highly inflationary countries
 —  1 
Adjusted EBITDA
 $ 159  $ 97