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, 2018

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 costs (acquisition-, disposition- or separation-related), stock-based compensation expense, early extinguishment of debt costs and income taxes. Wyndham Hotels believes that Adjusted EBITDA is a useful measure of performance for its industry segments which, when considered with U.S. GAAP measures, Wyndham Hotels believes gives 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,
	2018					2017
	Net Revenues		Adjusted EBITDA			Net Revenues		Adjusted EBITDA
Hotel Franchising	$	203	$	86		$	191	$	78
Hotel Management	99		16			98		9
Total Reportable Segments	302		102			289		87
Corporate and Other *	—		(10		)	—		(9		)
Total Company	$	302	$	92		$	289	$	78

* Includes the elimination of transactions between segments.

Reconciliation of Net income to Adjusted EBITDA



	Three Months Ended March 31,
	2018		2017
Net income	$	39	$	33
Provision for income taxes	16		22
Depreciation and amortization	19		18
Interest expense, net	1		2
Stock-based compensation	3		2
Separation-related	12		—
Transaction-related	2		—
Restructuring	—		1
Adjusted EBITDA	$	92	$	78