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Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information
12. SEGMENT INFORMATION
The reportable segment presented below represents the Company’s operating segment 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 segment, the Company also considers the nature of services provided by its operating segment. Management evaluates the operating results of its reportable segment based upon net revenues and “adjusted EBITDA”, which is defined as net income/(loss) excluding net interest expense, depreciation and amortization, early extinguishment of debt charges, impairment charges, restructuring and related charges, contract termination costs, separation-related items, transaction-related items (acquisition-, disposition-, or debt-related), (gain)/loss on asset sales, foreign currency impacts of highly inflationary countries, stock-based compensation expense, income taxes and development advance notes
amortization. The Company believes that adjusted EBITDA is a useful measure of performance for its segment which, when considered with U.S. GAAP measures, allows a more complete understanding of its operating performance. The Company uses this measure 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,
20242023
Net Revenues
Adjusted EBITDA
Net Revenues
Adjusted EBITDA
Hotel Franchising
$396 $224 $402 $215 
Corporate and Other
— (16)— (15)
Total Company
$396 $208 $402 $200 
The table below is a reconciliation of net income to adjusted EBITDA.
Three Months Ended September 30,
20242023
Net income$102 $103 
Provision for income taxes35 33 
Depreciation and amortization17 19 
Interest expense, net34 27 
Stock-based compensation 10 10 
Development advance notes amortization6 4 
Restructuring costs2 — 
Transaction-related 1 1 
Separation-related1 — 
Foreign currency impact of highly inflationary countries
— 3 
Adjusted EBITDA
$208 $200 
Nine Months Ended September 30,
20242023
Net Revenues
Adjusted EBITDA
Net Revenues
Adjusted EBITDA
Hotel Franchising
$1,067 $578 $1,076 $554 
Corporate and Other
— (51)— (49)
Total Company
$1,067 $527 $1,076 $505 
The table below is a reconciliation of net income to adjusted EBITDA.
Nine Months Ended September 30,
20242023
Net income$204 $240 
Provision for income taxes66 83 
Depreciation and amortization54 56 
Interest expense, net93 73 
Early extinguishment of debt3 3 
Stock-based compensation 30 28 
Development advance notes amortization18 11 
Transaction-related 46 5 
Impairment12 — 
Restructuring costs11 — 
Separation-related(11)— 
Foreign currency impact of highly inflationary countries
1 6 
Adjusted EBITDA
$527 $505