Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.24.1.u1
Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information
12. SEGMENT INFORMATION
The reportable segment presented below represents the Company’s operating segment 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 segment, the Company also considers the nature of services provided by its operating segment. Management evaluates the operating results of its reportable segment 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, separation-related items, transaction-related items (acquisition-, disposition-, or debt-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 segment 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,
2024 2023
Net Revenues
Adjusted EBITDA
Net Revenues
Adjusted EBITDA
Hotel Franchising
$ 305  $ 158  $ 313  $ 164 
Corporate and Other
 —  (17) —  (17)
Total Company
 $ 305  $ 141  $ 313  $ 147 
The table below is a reconciliation of net income to adjusted EBITDA.
Three Months Ended March 31,
2024 2023
Net income $ 16  $ 67 
Provision for income taxes 6  24 
Depreciation and amortization 20  19 
Interest expense, net 28  22 
Stock-based compensation 10  9 
Development advance notes amortization 5  3 
Transaction-related 41  — 
Impairment 12  — 
Restructuring costs 3  — 
Separation-related —  2 
Foreign currency impact of highly inflationary countries
 —  1 
Adjusted EBITDA
 $ 141  $ 147