Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.10.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]  
Schedule of Impact of Adoption
The tables below summarize the impact of the adoption of the new revenue standard on the Company’s Consolidated and Combined Income Statements:
 
Year Ended December 31, 2017
 
Year Ended December 31, 2016
Net revenues
Previously Reported Balance
 
New Revenue Standard
Adjustments
 
Adjusted Balance
 
Previously Reported Balance
 
New Revenue Standard
Adjustments
 
Adjusted Balance
Royalties and franchise fees
$
375

 
$
(11
)
 
$
364

 
$
353

 
$
1

 
$
354

Marketing, reservation and loyalty
407

 
(36
)
 
371

 
405

 
(30
)
 
375

Other
118

 
(20
)
 
98

 
111

 
(14
)
 
97

Net revenues
1,347

 
(67
)
 
1,280

 
1,312

 
(43
)
 
1,269

 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
Marketing, reservation and loyalty
406

 
(33
)
 
373

 
407

 
(31
)
 
376

Operating
205

 
(22
)
 
183

 
187

 
(19
)
 
168

Total expenses
1,086

 
(55
)
 
1,031

 
1,024

 
(50
)
 
974

 
 
 
 
 
 
 
 
 
 
 
 
Income/(loss) before income taxes
255

 
(12
)
(a) 
243

 
287

 
7

 
294

Provision for income taxes
12

 
1

(a) 
13

 
115

 
3

 
118

Net income/(loss)
243

 
(13
)
 
230

 
172

 
4

 
176

______________________
(a)
The income tax provision for 2017 consists of (i) a $4 million deferred tax provision resulting from a reduction in deferred tax assets recorded in connection with the retrospective adoption of the new revenue standard and the impact of the lower U.S. corporate income tax rate from the enactment of the U.S. Tax Cuts and Jobs Act and (ii) a $3 million tax benefit related to the $12 million loss before income taxes.
The table below summarizes the impact of the adoption of the new revenue standard on the Company’s Consolidated and Combined Balance Sheet:
 
At December 31, 2017
Assets
Previously Reported Balance
 
New Revenue Standard
Adjustments
 
Adjusted Balance
Other current assets
$
50

 
$
4

 
$
54

Total current assets
330

 
4

 
334

Other non-current assets
176

 
11

 
187

Total assets
2,122

 
15

 
2,137

 
 
 
 
 
 
Liabilities and net investment
 
 
 
 
 
Deferred income (current)
79

 
5

 
84

Total current liabilities
406

 
5

 
411

Deferred income taxes
181

 
(8
)
 
173

Deferred income (non-current)
76

 
88

 
164

Other non-current liabilities
78

 
(32
)
 
46

Total liabilities
822

 
53

 
875

Former Parent’s net investment
1,295

 
(38
)
 
1,257

Total liabilities and net investment
2,122

 
15

 
2,137