Wyndham Hotels & Resorts, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Segment Information

Segment Information

3 Months Ended

Mar. 31, 2019

The reportable segments presented below represent Wyndham Hotels’ operating segments 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 segments, Wyndham Hotels also considers the nature of services provided by its operating segments. Management evaluates the operating results of each of its reportable segments based upon net revenues and “Adjusted EBITDA”, which is defined as net income excluding interest expense, depreciation and amortization, impairment charges, restructuring and related charges, contract termination costs, transaction-related expenses (acquisition-, disposition- or separation-related), foreign currency impacts of highly inflationary countries, stock-based compensation expense, early extinguishment of debt costs and income taxes. Beginning with the third quarter of 2018, Wyndham Hotels’ calculation of Adjusted EBITDA excludes the currency effects of highly inflationary countries. Wyndham Hotels believes that Adjusted EBITDA is a useful measure of performance for its segments which, when considered with U.S. GAAP measures, Wyndham Hotels believes allows a more complete understanding of its operating performance. Wyndham Hotels’ presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.



	Three Months Ended March 31,
	2019					2018
	Net Revenues		Adjusted EBITDA			Net Revenues		Adjusted EBITDA
Hotel Franchising	$	269	$	113		$	203	$	86
Hotel Management	197		16			99		16
Total Reportable Segments	466		129			302		102
Corporate and Other	2		(18		)	—		(10		)
Total Company	$	468	$	111		$	302	$	92

The table below is a reconciliation of Net income to Adjusted EBITDA.



	Three Months Ended March 31,
	2019		2018
Net income	$	21	$	39
Provision for income taxes	5		16
Depreciation and amortization	29		19
Interest expense, net	24		1
Stock-based compensation	3		3
Separation-related expenses	21		12
Transaction-related expenses, net	7		2
Foreign currency impact of highly inflationary countries	1		—
Adjusted EBITDA	$	111	$	92