Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

13. SEGMENT INFORMATION

The reportable segments presented below represent the Company's 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, the Company 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 (loss) excluding interest expense, depreciation and amortization, impairment charges, restructuring and related charges, contract termination costs, transaction-related items (acquisition-, disposition- or separation-related), foreign currency impacts of highly inflationary countries, stock-based compensation expense 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, allows a more complete understanding of its operating performance. The Company uses these measures internally to assess operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. The Company's presentation of adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.

	Three Months Ended September 30,
	2020				2019
	Net Revenues		Adjusted EBITDA		Net Revenues		Adjusted EBITDA
Hotel Franchising	$	236	$	117	$	379	$	195
Hotel Management	101		2		180		13
Total Reportable Segments	337		119		559		208
Corporate and Other	—		(18)		1		(18)
Total Company	$	337	$	101	$	560	$	190

The table below is a reconciliation of net income to adjusted EBITDA.

	Three Months Ended September 30,
	2020		2019
Net income	$	27	$	45
Provision for income taxes	15		21
Depreciation and amortization	24		26
Interest expense, net	29		25
Stock-based compensation expense	5		4
Transaction-related expenses, net	—		12
Contract termination costs	—		34
Transaction-related item	—		20
Foreign currency impact of highly inflationary countries	1		3
Adjusted EBITDA	$	101	$	190

	Nine Months Ended September 30, 2020
	2020				2019
	Net Revenues		Adjusted EBITDA		Net Revenues		Adjusted EBITDA
Hotel Franchising	$	661	$	308	$	979	$	470
Hotel Management	343		14		578		45
Total Reportable Segments	1,004		322		1,557		515
Corporate and Other	—		(51)		4		(54)
Total Company	$	1,004	$	271	$	1,561	$	461

The table below is a reconciliation of net income (loss) to adjusted EBITDA.

	Nine Months Ended September 30, 2020
	2020		2019
Net (loss)/income	$	(125)	$	93
(Benefit)/provision for income taxes	(25)		36
Depreciation and amortization	73		81
Interest expense, net	83		76
Stock-based compensation expense	14		11
Impairments, net	206		45
Restructuring costs	29		—
Transaction-related expenses, net	13		30
Separation-related expenses	1		22
Contract termination costs	—		43
Transaction-related item	—		20
Foreign currency impact of highly inflationary countries	2		4
Adjusted EBITDA	$	271	$	461