Wyndham Hotels & Resorts, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Other Expenses and Charges

Other Expenses and Charges

6 Months Ended

Jun. 30, 2024


13. OTHER EXPENSES AND CHARGES

Transaction-Related

The Company recognized transaction-related expenses of $5 million and $46 million during the three and six months ended June 30, 2024, primarily related to costs associated with the failed hostile takeover defense and costs related to the repricing of the Company’s term loan B. Such amounts primarily consisted of legal and advisory costs. The Company recognized transaction-related expenses of $4 million during both the three and six months ended June 30, 2023, primarily related to costs associated with the refinancing of the Company’s term loan B. The following table presents activity for the six months ended June 30, 2024:


			2024 Activity
	Liability as of December 31, 2023		Costs Recognized		Cash Payments		Other (a)		Liability as of June 30, 2024
Hostile takeover defense	$	7	$	42	$	(46)	$	(2)	$	1
Debt repricing	—		4		(4)		—		—
Total accrued transaction-related expenses	$	7	$	46	$	(50)	$	(2)	$	1

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(a)Represents non-cash retention-related payments in Company stock.

Impairment

As a result of the Company’s evaluation of the recoverability of the carrying value of certain assets, the Company recorded an impairment charge of $12 million, primarily related to development advance notes, during the first quarter of 2024. The impairment charge was reported within the impairment line item on the Condensed Consolidated Statements of Income.

Restructuring

During the first quarter of 2024, the Company approved a restructuring plan focused on enhancing its organizational efficiency. As a result, during the three and six months ended June 30, 2024, the Company incurred $7 million and $9 million, respectively, of restructuring expenses, relating to 56 employees primarily in its Hotel Franchising segment. The following table presents activity for the six months ended June 30, 2024:


			2024 Activity
	Liability as of December 31, 2023		Costs Recognized		Cash Payments		Other (a)		Liability as of June 30, 2024
2024 Plan
Personnel-related	$	—	$	9	$	(3)	$	(2)	$	4
Total accrued restructuring	$	—	$	9	$	(3)	$	(2)	$	4

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(a)Represents non-cash payments in Company stock.

Separation-Related

Separation-related costs associated with the Company's spin-off from former parent were $12 million and $11 million of income for the three and six months ended June 30, 2024, respectively, which were due to the reversal of a reserve related to the expiration of a tax matter. During the three months ended June 30, 2023, the Company reversed a $2 million reserve which was offset by $2 million of costs incurred in the first quarter of 2023, both of which were tax-related matters.