Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 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 September 30,
2024 2023
Net Revenues
Adjusted EBITDA
Net Revenues
Adjusted EBITDA
Hotel Franchising
$ 396  $ 224  $ 402  $ 215 
Corporate and Other
 —  (16) —  (15)
Total Company
 $ 396  $ 208  $ 402  $ 200 
The table below is a reconciliation of net income to adjusted EBITDA.
Three Months Ended September 30,
2024 2023
Net income $ 102  $ 103 
Provision for income taxes 35  33 
Depreciation and amortization 17  19 
Interest expense, net 34  27 
Stock-based compensation 10  10 
Development advance notes amortization 6  4 
Restructuring costs 2  — 
Transaction-related 1  1 
Separation-related 1  — 
Foreign currency impact of highly inflationary countries
 —  3 
Adjusted EBITDA
 $ 208  $ 200 
Nine Months Ended September 30,
2024 2023
Net Revenues
Adjusted EBITDA
Net Revenues
Adjusted EBITDA
Hotel Franchising
$ 1,067  $ 578  $ 1,076  $ 554 
Corporate and Other
 —  (51) —  (49)
Total Company
 $ 1,067  $ 527  $ 1,076  $ 505 
The table below is a reconciliation of net income to adjusted EBITDA.
Nine Months Ended September 30,
2024 2023
Net income $ 204  $ 240 
Provision for income taxes 66  83 
Depreciation and amortization 54  56 
Interest expense, net 93  73 
Early extinguishment of debt 3  3 
Stock-based compensation 30  28 
Development advance notes amortization 18  11 
Transaction-related 46  5 
Impairment 12  — 
Restructuring costs 11  — 
Separation-related (11) — 
Foreign currency impact of highly inflationary countries
 1  6 
Adjusted EBITDA
 $ 527  $ 505