Quarterly report pursuant to Section 13 or 15(d)

New Accounting Pronouncements (Tables)

v3.8.0.1
New Accounting Pronouncements (Tables)
 3 Months Ended
Mar. 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 Condensed Combined Income Statement:
 
Year Ended December 31, 2017
Net revenues
Previously Reported Balance
 
New Revenue Standard
Adjustment
 
Adjusted Balance
Royalties and franchise fees
$
375

 
$
(11
)
 
$
364

Marketing, reservation and loyalty
407

 
(36
)
 
371

Other
118

 
(20
)
 
98

Net revenues
1,347

 
(67
)
 
1,280

 
 
 
 
 
 
Expenses
 
 
 
 
 
Marketing, reservation and loyalty
406

 
(33
)
 
373

Operating
205

 
(22
)
 
183

Total expenses
1,086

 
(55
)
 
1,031

 
 
 
 
 
 
Income/(loss) before income taxes
255

 
(12
)
*
243

Provision for income taxes
12

 
1

*
13

Net income/(loss)
243

 
(13
)
 
230

 
*
The income tax provision 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) $3 million dollar 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 Condensed Combined Balance Sheet:
 
At December 31, 2017
Assets
Previously Reported Balance
 
New Revenue Standard
Adjustment
 
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
79

 
5

 
84

Total current liabilities
406

 
5

 
411

Deferred income taxes
181

 
(8
)
 
173

Deferred income
76

 
88

 
164

Other non-current liabilities
78

 
(32
)
 
46

Total liabilities
822

 
53

 
875

Parent’s net investment
1,295

 
(38
)
 
1,257

Total liabilities and net investment
2,122

 
15

 
2,137