BUSINESS SEGMENTS

We are a diversified global lodging company with operations in the following reportable business segments:


•	North American Full-Service, which includes our Luxury and Premium brands located in the U.S. and Canada;


•	North American Limited-Service, which includes our Select brands located in the U.S. and Canada; and


•	Asia Pacific, which includes all brand tiers in our Asia Pacific region;

The following operating segments do not meet the applicable accounting criteria for separate disclosure as reportable business segments: Caribbean and Latin America, Europe, and Middle East and Africa. We present these operating segments together as “Other International” in the tables below.

We evaluate the performance of our operating segments using “segment profits” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, or merger-related costs and charges. We assign gains and losses, equity in earnings or losses from our joint ventures, and direct general, administrative, and other expenses to each of our segments. “Other unallocated corporate” represents a portion of our revenues, including license fees we receive from our credit card programs and fees from vacation ownership licensing agreements, general, administrative, and other expenses, merger-related costs and charges, equity in earnings or losses, and other gains or losses that we do not allocate to our segments. Beginning in the 2018 first quarter, “Other unallocated corporate” also includes revenues and expenses for our Loyalty Programs, and we reflected this change in the prior period amounts shown in the tables below.

Our President and Chief Executive Officer, who is our chief operating decision maker, monitors assets for the consolidated company but does not use assets by operating segment when assessing performance or making operating segment resource allocations.

Segment Revenues



	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
North American Full-Service	$	3,356	$	3,277	$	6,655	$	6,517
North American Limited-Service	888		836		1,649		1,577
Asia Pacific	268		252		543		493
Other International	607		588		1,134		1,100
Total segment revenues	5,119		4,953		9,981		9,687
Other unallocated corporate	227		258		371		436
Total consolidated revenues	$	5,346	$	5,211	$	10,352	$	10,123

Segment Profits



	Three Months Ended						Six Months Ended
($ in millions)	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
North American Full-Service	$	394		$	375		$	671		$	677
North American Limited-Service	252			243			434			430
Asia Pacific	140			73			252			167
Other International	160			113			319			231
Total segment profits	946			804			1,676			1,505
Other unallocated corporate	(71		)	(23		)	(229		)	(167		)
Interest expense, net of interest income	(79		)	(65		)	(149		)	(128		)
Income taxes	(186		)	(227		)	(290		)	(350		)
Net income	$	610		$	489		$	1,008		$	860