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, 2020

13. SEGMENT INFORMATION

The reportable segments presented below represent the Company's 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, the Company 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 items (acquisition-, disposition- or separation-related), foreign currency impacts of highly inflationary countries, stock-based compensation expense and income taxes. Wyndham Hotels believes that adjusted EBITDA is a useful measure of performance for its segments which, when considered with U.S. GAAP measures, allows a more complete understanding of its operating performance. The Company uses these measures internally to assess operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. The Company's presentation of adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.



	Three Months Ended March 31,
	2020					2019
	Net Revenues		Adjusted EBITDA			Net Revenues		Adjusted EBITDA
Hotel Franchising	$	243	$	108		$	269	$	113
Hotel Management	167		17			197		16
Total Reportable Segments	410		125			466		129
Corporate and Other	—		(18		)	2		(18		)
Total Company	$	410	$	107		$	468	$	111

The table below is a reconciliation of net income to adjusted EBITDA.



	Three Months Ended March 31,
	2020		2019
Net income	$	22	$	21
Provision for income taxes	9		5
Depreciation and amortization	25		29
Interest expense, net	25		24
Stock-based compensation expense	4		3
Restructuring costs	13		—
Transaction-related expenses, net	8		7
Separation-related expenses	1		21
Foreign currency impact of highly inflationary countries	—		1
Adjusted EBITDA	$	107	$	111