Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
15. SEGMENT INFORMATION
Wyndham Hotels’ primary segment is Hotel Franchising which principally consists of licensing the Company’s lodging brands and providing related services to third-party hotel owners and others. This reportable segment 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. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. In identifying its reportable segment, the Company also considers the nature of services provided by its operating segment. Due to the adoption of the 2023 Accounting Update, the Company changed its primary measure of segment profit or loss from adjusted EBITDA to net income. The CODM evaluates the operating results of the Company on a consolidated basis based upon net revenues and net income, which is the measure of profit or loss that is most consistent with GAAP measurement principles and is used by the CODM internally to assess operating performance. The CODM also uses adjusted EBITDA to evaluate the operating results of its Hotel Franchising reportable segment.
Beginning with the first quarter of 2023, as a result of the changes in its Hotel Management segment including the exit from the select-service management business, the sale of its two owned hotels and the exit from substantially all of its U.S. full-service management business, the Hotel Management segment no longer met the quantitative thresholds to be disclosed as a reportable segment. As a result, the Company has aggregated, on a prospective basis, the remaining hotel management business, which is predominately the full-service international managed business within its Hotel Franchising segment.
Provided below is the Company’s segment profitability measure and significant segment expenses.
Year Ended December 31,
2024 2023
Net revenues
 $ 1,408  $ 1,397 
Less expenses (a)
Compensation
 (255) (241)
Selling and advertising
 (119) (136)
Outsourced services and information technology (b)
(127) (120)
Professional fees
 (90) (85)
Other segment items (c)
(189) (209)
Corporate expenses (d)
(339) (317)
Consolidated net income
 $ 289  $ 289 
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(a)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the Company’s CODM.
(b)    Information technology costs primarily include maintenance costs and software as a service cost.
(c)    Other segment items include depreciation and amortization, stock-based compensation, restructuring costs, impairment charge, cost reimbursements, travel and entertainment, insurance and other operating expenses.
(d)    Corporate expenses include interest expense, net, transaction and separation-related expenses, provision for income taxes, early extinguishment of debt, compensation costs, and other overhead costs.
Provided below is the Company’s significant segment expense disclosure for 2022. Due to the adoption of the 2023 Accounting Update, the Company is a single reporting segment managed on a consolidated basis and therefore the 2023 and 2024 significant segment expense disclosure is not comparable to 2022 as the Company had two reportable segments.
Year Ended December 31,
2022
Hotel Franchising
Hotel Management
 Total
Net revenues
 $ 1,277  $ 221  $ 1,498 
Less expenses (a)
Compensation
 (213) (9)
Selling and advertising
 (134) — 
Outsourced services and information technology (b)
(119) (1)
Professional fees
 (80) (2)
Other segment items (c)
(148) (148)
Segment net income
 $ 583  $ 61  $ 644 
Reconciliation of profit or loss (segment profit/(loss))
Adjustments and reconciling items
Corporate (d)
(289)
Consolidated net income
 $ 355 
_____________________
(a)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the Company’s CODM.
(b)    Information technology costs primarily include maintenance costs and software as a service cost.
(c)    Other segment items include depreciation and amortization, stock-based compensation, gain on asset sale, net, cost reimbursements, travel and entertainment, insurance and other operating expenses.
(d)    Corporate includes provision for income taxes, interest expense, net, compensation costs, and other overhead costs.
Provided below is the Company’s segment disclosure for certain financial information for 2022. Due to the adoption of the 2023 Accounting Update, the Company is a single reporting segment managed on a consolidated basis and therefore the 2023 and 2024 information is provided elsewhere in the financial statements.
Hotel Franchising (a)
Hotel Management
Corporate (b)
Total
Year Ended or as of December 31, 2022
Depreciation and amortization
 $ 63  $ 5  $ 9  $ 77 
Segment assets
 3,711  113  299  4,123 
Capital expenditures
 33  —  6  39 
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(a)    For 2024 and 2023, the Hotel Franchising segment includes the former Hotel Management segment, which is primarily comprised of the Company's remaining international full-service managed business.
(b)    Includes the elimination of transactions between segments.
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, 2024
Net revenues $ 1,125  $ 283  $ 1,408 
Net long-lived assets 2,979  188  3,167 
Year Ended or As of December 31, 2023
Net revenues $ 1,142  $ 255  $ 1,397 
Net long-lived assets 3,002  190  3,192 
Year Ended or As of December 31, 2022
Net revenues $ 1,271  $ 227  $ 1,498 
Net long-lived assets 3,126  104  3,230 
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(a)    Includes U.S. territories.