Business Segment Information

3 Months Ended

Mar. 31, 2018

Note 11: Business Segment Information

As of March 31, 2018, we have two operating segments, our consolidated hotels and unconsolidated hotels. Our unconsolidated hotels operating segment does not meet the definition of a reportable segment, thus our consolidated hotels is our only reportable segment. We evaluate our consolidated hotels primarily based on hotel adjusted earnings before interest expense, taxes and depreciation and amortization (“EBITDA”). Hotel Adjusted EBITDA is calculated as EBITDA from hotel operations, adjusted to exclude:

•

Gains or losses on sales of assets for both consolidated and unconsolidated investments;

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Gains or losses on foreign currency transactions;

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Share-based compensation expense;

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Non-cash impairment losses; and

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Other items that we believe are not representative of our current or future operating performance.

The following table presents revenues for our consolidated hotels reconciled to our condensed consolidated amounts and Hotel Adjusted EBITDA to net income:

	Three Months Ended March 31,
	2018			2017
	(in millions)
Revenues:
Total consolidated hotel revenue	$	651		$	671
Other revenue		17			13
Total revenues	$	668		$	684

Hotel Adjusted EBITDA	$	174		$	180
Other revenue		17			13
Depreciation and amortization expense		(70	)		(70	)
Corporate general and administrative		(16	)		(14	)
Other expenses		(17	)		(13	)
Gain on sales of assets, net		89			—
Interest income		1			—
Interest expense		(31	)		(30	)
Equity in earnings from investments in affiliates		4			4
Gain on foreign currency transactions		1			1
Income tax benefit		—			2,281
Other items		(3	)		(2	)
Net income	$	149		$	2,350

The following table presents total assets for our consolidated hotels, reconciled to condensed consolidated amounts:

	March 31, 2018		December 31, 2017
	(in millions)
Consolidated hotels	$	9,241	$	9,623
All other		95		91
	$	9,336	$	9,714