Other Expenses and Charges |
6 Months Ended |
|---|---|
Jun. 30, 2019 | |
| Discontinued Operations and Disposal Groups [Abstract] | |
| Separation-Related and Transaction-Related Expenses and Impairment, net |
Separation-Related
The Company incurred separation-related costs associated with its spin-off from Wyndham Worldwide of $1 million and $35 million for the three months ended June 30, 2019 and 2018, respectively, and $22 million and $46 million for the six months ended June 30, 2019 and 2018, respectively. These costs primarily consist of severance, stock-based compensation and other employee-related costs.
Transaction-Related, Net
For the three and six months ended June 30, 2019, the Company incurred $11 million and $18 million, respectively of transaction-related costs primarily for integration activities related to the Company’s acquisition of La Quinta in 2018.
For the three and six months ended June 30, 2018, the Company incurred $28 million and $30 million, respectively of transaction-related costs primarily related to the Company’s acquisition of La Quinta in 2018, partially offset by a $23 million gain the Company recorded in connection with its sale of the Knights Inn brand.
Impairment, Net
The Company incurred a non-cash net impairment charge associated with the planned termination of a hotel-management arrangement, which is comprised of a $48 million write-off of receivables, a $10 million write-off of a guarantee asset and the derecognition of a $13 million guarantee liability. See Note 9 - Commitments and Contingencies for further details.
Contract Termination
During the second quarter of 2019, the Company incurred a contract termination charge of $9 million in connection with an obligation associated with the expected termination of a hotel-management agreement. The Company recorded a liability which was included in accrued expenses and other current liabilities on its Condensed Consolidated Balance Sheets.
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