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Business Segment Information
 9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Business Segment Information

Note 11: Business Segment Information

As of September 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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(in millions)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total consolidated hotel revenue

 

$

633

 

 

$

670

 

 

$

1,998

 

 

$

2,058

 

Other revenues

 

 

19

 

 

 

18

 

 

 

53

 

 

 

47

 

Total revenues

 

$

652

 

 

$

688

 

 

$

2,051

 

 

$

2,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel Adjusted EBITDA

 

$

171

 

 

$

183

 

 

$

573

 

 

$

576

 

Other revenues

 

 

19

 

 

 

18

 

 

 

53

 

 

 

47

 

Casualty gain (loss) and impairment loss, net

 

 

1

 

 

 

(2

)

 

 

1

 

 

 

(2

)

Depreciation and amortization expense

 

 

(69

)

 

 

(74

)

 

 

(208

)

 

 

(217

)

Corporate general and administrative expense

 

 

(16

)

 

 

(15

)

 

 

(47

)

 

 

(45

)

Other expenses

 

 

(19

)

 

 

(18

)

 

 

(54

)

 

 

(46

)

Gain on sales of assets, net

 

 

2

 

 

 

—

 

 

 

98

 

 

 

—

 

Interest income

 

 

2

 

 

 

1

 

 

 

4

 

 

 

2

 

Interest expense

 

 

(32

)

 

 

(32

)

 

 

(94

)

 

 

(93

)

Equity in earnings from investments in affiliates

 

 

4

 

 

 

6

 

 

 

16

 

 

 

18

 

Loss on foreign currency transactions

 

 

(1

)

 

 

(1

)

 

 

(4

)

 

 

(4

)

Income tax benefit (expense)

 

 

—

 

 

 

44

 

 

 

(13

)

 

 

2,344

 

Other (loss) gain, net

 

 

(2

)

 

 

(2

)

 

 

106

 

 

 

(3

)

Other items

 

 

(5

)

 

 

(3

)

 

 

(9

)

 

 

(7

)

Net income

 

$

55

 

 

$

105

 

 

$

422

 

 

$

2,570

 

 

 

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

 

 

 

September 30, 2018

 

 

December 31, 2017

 

 

 

(in millions)

 

Consolidated hotels

 

$

9,293

 

 

$

9,623

 

All other

 

 

62

 

 

 

91

 

 

 

$

9,355

 

 

$

9,714