Annual report pursuant to Section 13 and 15(d)

Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited)

v3.10.0.1
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2018
Quarterly Financial Data Disclosure [Abstract]  
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)

Provided below are selected unaudited quarterly financial data for the periods ended:
 
 
2018
 
 
March 31
 
June 30
 
September 30
 
December 31
Net Revenues
 
 
 
 
 
 
 
 
Hotel Franchising
$
203

 
$
289

 
$
348

 
295

 
Hotel Management
99

 
146

 
252

 
229

 
Corporate and Other
—

 
—

 
4

 
3

 
Total Company
302

 
435

 
604

 
527

Total expenses
246

 
396

 
499

 
445

Operating income
56

 
39

 
105

 
82

Interest expense, net
1

 
10

 
24

 
25

Income before income taxes
55

 
29

 
81

 
57

Provision for income taxes
16

 
8

 
23

 
14

Net income
$
39

 
$
21

 
$
58

 
$
43

 
 
 
 
 
 
 
 
Diluted earnings per share
$
0.40

 
$
0.21

 
$
0.58

 
$
0.43

Diluted weighted average shares outstanding
99.8

 
100.0

 
100.1

 
99.2

 
 
 
 
 
 
 
 
Reconciliation of Net income to Adjusted EBITDA
Net income
$
39

 
$
21

 
$
58

 
$
43

 
Provision for income taxes
16

 
8

 
23

 
14

 
Depreciation and amortization
19

 
22

 
30

 
29

 
Interest expense, net
1

 
10

 
24

 
25

 
Stock-based compensation
3

 
1

 
3

 
2

 
Separation-related expenses
12

 
35

 
17

 
14

 
Transaction-related expenses, net
2

 
28

 
7

 
(1
)
 
Foreign currency impact of highly inflationary countries
—

 
—

 
4

 
(1
)
Adjusted EBITDA
$
92

 
$
125

 
$
166

 
$
125

 
 
 
 
 
 
 
 
 
Adjusted EBITDA by segment
 
Hotel Franchising
$
86

 
$
129

 
$
178

 
122

 
Hotel Management
16

 
8

 
5

 
18

 
Corporate and Other
(10
)
 
(12
)
 
(17
)
 
(15
)
 
Total Adjusted EBITDA
$
92

 
$
125

 
$
166

 
$
125

 
 
 
2017
 
 
March 31
 
June 30
 
September 30
 
December 31
Net Revenues
 
 
 
 
 
 
 
 
Hotel Franchising
$
191

 
$
233

 
$
258

 
$
215

 
Hotel Management
98

 
98

 
89

 
97

 
Corporate and Other
—

 
—

 
—

 
—

 
Total Company
289

 
331

 
347

 
312

Total expenses
232

 
247

 
245

 
304

Operating income
57

 
84

 
102

 
8

Interest expense, net
2

 
2

 
2

 
1

Income before income taxes
55

 
82

 
100

 
7

Provision for income taxes (a)
22

 
34

 
42

 
(85
)
Net income
$
33

 
$
48

 
$
58

 
$
92

 
 
 
 
 
 
 
 
 
Diluted earnings per share
$
0.33

 
$
0.48

 
$
0.58

 
$
0.92

Diluted weighted average shares outstanding
99.8

 
99.8

 
99.8

 
99.8

 
 
 
 
 
 
 
 
 
Reconciliation of Net income to Adjusted EBITDA
Net Income
$
33

 
$
48

 
$
58

 
$
92

 
Provision for income taxes (a)
22

 
34

 
42

 
(85
)
 
Depreciation and amortization
18

 
19

 
19

 
19

 
Interest expense, net
2

 
2

 
2

 
1

 
Stock-based compensation
2

 
2

 
2

 
3

 
Separation-related expenses
—

 
—

 
—

 
3

 
Transaction-related expenses, net
—

 
—

 
1

 
2

 
Impairment expense
—

 
—

 
—

 
41

 
Restructuring
1

 
—

 
—

 
—

Adjusted EBITDA
$
78

 
$
105

 
$
124

 
$
76

 
 
 
 
 
 
 
 
 
Adjusted EBITDA by segment
 
 
 
 
 
 
 
 
Hotel Franchising
$
78

 
$
111

 
$
132

 
$
81

 
Hotel Management
9

 
4

 
1

 
6

 
Corporate and Other
(9
)
 
(10
)
 
(9
)
 
(11
)
 
Total Adjusted EBITDA
$
78

 
$
105

 
$
124

 
$
76

______________________
(a)
The Provision for income taxes for the three months ended December 31, 2017, reflects the benefit from U.S tax reform of $85 million. See Note 8 - Income Taxes for more information.