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Business Segment Information
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Business Segment Information

Note 11: Business Segment Information

As of June 30, 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;

 

•

Gains or losses on foreign currency transactions;

 

•

Share-based compensation expense;

 

•

Non-cash impairment losses; and

 

•

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(in millions)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total consolidated hotel revenue

 

$

714

 

 

$

717

 

 

$

1,365

 

 

$

1,388

 

Other revenue

 

 

17

 

 

 

16

 

 

 

34

 

 

 

29

 

Total revenues

 

$

731

 

 

$

733

 

 

$

1,399

 

 

$

1,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel Adjusted EBITDA

 

$

228

 

 

$

213

 

 

$

402

 

 

$

393

 

Other revenue

 

 

17

 

 

 

16

 

 

 

34

 

 

 

29

 

Depreciation and amortization expense

 

 

(69

)

 

 

(73

)

 

 

(139

)

 

 

(143

)

Corporate general and administrative

 

 

(15

)

 

 

(16

)

 

 

(31

)

 

 

(30

)

Other expenses

 

 

(18

)

 

 

(15

)

 

 

(35

)

 

 

(28

)

Gain on sales of assets, net

 

 

7

 

 

 

—

 

 

 

96

 

 

 

—

 

Interest income

 

 

1

 

 

 

1

 

 

 

2

 

 

 

1

 

Interest expense

 

 

(31

)

 

 

(31

)

 

 

(62

)

 

 

(61

)

Equity in earnings from investments in affiliates

 

 

8

 

 

 

8

 

 

 

12

 

 

 

12

 

Loss on foreign currency transactions

 

 

(4

)

 

 

(4

)

 

 

(3

)

 

 

(3

)

Income tax (expense) benefit

 

 

(13

)

 

 

19

 

 

 

(13

)

 

 

2,300

 

Other gain (loss), net

 

 

108

 

 

 

(1

)

 

 

108

 

 

 

(1

)

Other items

 

 

(1

)

 

 

(2

)

 

 

(4

)

 

 

(4

)

Net income

 

$

218

 

 

$

115

 

 

$

367

 

 

$

2,465

 

 

 

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

 

 

 

June 30, 2018

 

 

December 31, 2017

 

 

 

(in millions)

 

Consolidated hotels

 

$

9,386

 

 

$

9,623

 

All other

 

 

65

 

 

 

91

 

 

 

$

9,451

 

 

$

9,714