Separation-Related and Transaction-Related Costs, Impairments and Other Charges |
12 Months Ended |
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Dec. 31, 2018 | |
| Discontinued Operations and Disposal Groups [Abstract] | |
| Separation-Related and Transaction-Related Costs, Impairments and Other Charges |
Separation-Related and Transaction-Related Costs, Impairments and Other Charges
Separation-Related
On May 31, 2018, Wyndham Worldwide completed the Distribution, which resulted in Wyndham Hotels & Resorts, Inc. becoming a separate, publicly traded company (see Note 1 - Basis of Presentation for further details).
During 2018, the Company incurred $77 million of separation-related costs associated with its spin-off from Wyndham Worldwide. These costs primarily consist of severance, stock-based compensation and other employee-related costs.
Transaction-Related, Net
During 2018, the Company incurred $36 million of transaction-related costs consisting of $59 million primarily related to the Company’s acquisition of La Quinta partially offset by a $23 million gain on the sale of its Knights Inn brand in May 2018. This sale was not material to the Company’s results of operations or financial position.
Impairments
During 2017, Wyndham Hotels recorded $41 million of non-cash impairment charges, of which $25 million was for a write-down of a guarantee asset and a development advance note receivable related to a hotel management agreement, and $16 million was primarily related to a partial write-down of management agreement assets. Such amount was recorded within impairment expense on the Consolidated and Combined Statements of Income.
Other Charges
During 2017, Wyndham Hotels recorded a $20 million write-down of property and equipment related to damage sustained from Hurricane Maria at its owned Rio Mar hotel in Puerto Rico. The property damage was fully recoverable through insurance coverage.
During 2016, Wyndham Hotels recorded a $7 million charge related to the termination of a management contract. Such loss was recorded within operating expenses on the Consolidated and Combined Statements of Income.
Restructuring
During 2017, Wyndham Hotels recorded $1 million of charges related to restructuring initiatives, primarily focused on realigning its brand operations. These initiatives resulted in a reduction of 12 employees. During 2017, Wyndham Hotels made $1 million of cash payments related to this initiative.
During 2016, Wyndham Hotels recorded $2 million of charges related to restructuring initiatives, primarily focused on enhancing organizational efficiency. These initiatives resulted in a reduction of 60 employees. During 2017, the Company paid its remaining liability with $1 million of cash payments.
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