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

6 Months Ended

Jun. 30, 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 segments which, when considered with U.S. GAAP measures, Wyndham Hotels believes allows 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 June 30,
	2018					2017
	Net Revenues		Adjusted EBITDA			Net Revenues		Adjusted EBITDA
Hotel Franchising	$	289	$	129		$	233	$	111
Hotel Management	146		8			98		4
Total Reportable Segments	435		137			331		115
Corporate and Other	—		(12		)	—		(10		)
Total Company	$	435	$	125		$	331	$	105

Reconciliation of Net income to Adjusted EBITDA



	Three Months Ended June 30,
	2018		2017
Net income	$	21	$	48
Provision for income taxes	8		34
Depreciation and amortization	22		19
Interest expense, net	10		2
Stock-based compensation	1		2
Separation-related	35		—
Transaction-related, net	28		—
Adjusted EBITDA	$	125	$	105



	Six Months Ended June 30,
	2018					2017
	Net Revenues		Adjusted EBITDA			Net Revenues		Adjusted EBITDA
Hotel Franchising	$	491	$	214		$	424	$	189
Hotel Management	246		24			196		14
Total Reportable Segments	737		238			620		203
Corporate and Other	—		(21		)	—		(20		)
Total Company	$	737	$	217		$	620	$	183

Reconciliation of Net income to Adjusted EBITDA



	Six Months Ended June 30,
	2018		2017
Net income	$	61	$	81
Provision for income taxes	24		55
Depreciation and amortization	41		37
Interest expense, net	11		4
Stock-based compensation	4		5
Separation-related	46		—
Transaction-related, net	30		—
Restructuring	—		1
Adjusted EBITDA	$	217	$	183