Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.20.4
Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information
16. 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 (loss) excluding net 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. The Company 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 this measure 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.
Hotel Franchising
Hotel Management
Corporate and Other (a)
Total
Year Ended or as of December 31, 2020
Net revenues
 $ 863  $ 437  $ —  $ 1,300 
Adjusted EBITDA
 383  13  (69) 327 
Depreciation and amortization
 63  25  10  98 
Segment assets
 3,629  418  597  4,644 
Capital expenditures
 24  4  5  33 
Year Ended or as of December 31, 2019
Net revenues
 $ 1,279  $ 768  $ 6  $ 2,053 
Adjusted EBITDA
 622  66  (75) 613 
Depreciation and amortization
 72  26  11  109 
Segment assets
 3,817  500  216  4,533 
Capital expenditures
 35  8  7  50 
Year Ended or as of December 31, 2018
Net revenues $ 1,135  $ 726  $ 7  $ 1,868 
Adjusted EBITDA 515  47  (55) 507 
Depreciation and amortization 72  21  6  99 
Segment assets 3,829  580  567  4,976 
Capital expenditures 43  27  3  73 
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(a)    Includes the elimination of transactions between segments.
Provided below is a reconciliation of net income (loss) to adjusted EBITDA.
Year Ended December 31,
2020 2019 2018
Net (loss)/income $ (132) $ 157  $ 162 
(Benefit from)/provision for income taxes (26) 50  61 
Depreciation and amortization 98  109  99 
Interest expense, net 112  100  60 
Stock-based compensation expense 19  15  9 
Impairments, net 206  45  — 
Restructuring costs 34  8  — 
Transaction-related expenses, net 12  40  36 
Separation-related expenses 2  22  77 
Contract termination costs —  42  — 
Transaction-related item —  20  — 
Foreign currency impact of highly inflationary countries 2  5  3 
Adjusted EBITDA
 $ 327  $ 613  $ 507 
The geographic segment information provided below is classified based on the geographic location of Wyndham Hotels’ subsidiaries.
United States
All Other Countries (a)
Total
Year Ended or As of December 31, 2020
Net revenues $ 1,159  $ 141  $ 1,300 
Net long-lived assets 3,334  184  3,518 
Year Ended or As of December 31, 2019
Net revenues $ 1,805  $ 248  $ 2,053 
Net long-lived assets 3,619  173  3,792 
Year Ended or As of December 31, 2018
Net revenues $ 1,641  $ 227  $ 1,868 
Net long-lived assets 3,681  179  3,860 
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(a)    Includes U.S. territories.