What are some significant segment expenses for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Our CODM evaluates performance based on segment revenues and Adjusted EBITDA. Our CODM uses these measures to evaluate trends and assess segment operating performance as compared to our prior-period and forecasted results as well as our industry and competitors in order to determine how to allocate resources to each segment. Significant segment expenses include Adjusted general and administrative expenses, owned and leased expenses, and distribution expenses. Our CODM does not evaluate our operating segments using discrete asset information.
We define Adjusted EBITDA as net income (loss) attributable to Hyatt Hotels Corporation plus net income (loss) attributable to noncontrolling interests and our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA, primarily based on our ownership percentage of each owned and leased venture, adjusted to exclude amortization of management and hotel services agreement and franchise agreement assets ("key money assets") and performance cure payments, which constitute payments to customers ("Contra revenue"); revenues for reimbursed costs; stock-based compensation expense; transaction and integration costs; depreciation and amortization; reimbursed costs that we intend to recover over the long term; equity earnings (losses) from unconsolidated hospitality ventures; interest expense; gains (losses) on sales of real estate and other; asset impairments; other income (loss), net; and benefit (provision) for income taxes.
Adjusted general and administrative expenses exclude the impact of deferred compensation plans funded through rabbi trusts and stockbased compensation expense. Adjusted general and administrative expenses assist us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations, both on a segment and consolidated basis.
The following tables present revenues disaggregated by the nature of the product or service and by segment and a reconciliation of segment revenues to segment Adjusted EBITDA:
| SARs | 3,700 | 1,800 | |---|---|---| | RSUs | 1,700 | 2,800 | | | | | |---|---|---| | Interestincome | $ 35 | $ 22 | | Guaranteeamortizationincome(Note12) | 13 | 11 | | Unrealizedgains,net(Note4) | 10 | 13 | | Contingentconsiderationliabilitiesfairvalueadjustments(Note12) | 5 | 4 | | Foreigncurrencyexchange,net | 2 | 1 | | Guaranteeexpense(Note12) | (6) | (3) | | Creditlossprovisions,net(Note4andNote5) | (10) | — | | Other,net | (6) | 6 | | Otherincome(loss),net | $ 43 | $ 54 | (1) Includes intercompany management fee expenses paid to our management and franchising segment and promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs, both of which are eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
(3) Management and franchising primarily includes direct costs associated with our co-branded credit card programs recognized in other direct costs. Distribution includes stock-based compensation expense recognized in distribution expenses.
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company evaluates performance based on segment revenues and Adjusted EBITDA. The significant segment expenses include Adjusted general and administrative expenses, owned and leased expenses, and distribution expenses. These expenses are used by The Standardx to evaluate trends and assess segment operating performance compared to prior periods, forecasted results, and industry competitors. This information helps The Standardx decide how to allocate resources to each segment.
For the three months ended March 31, 2024, the Adjusted general and administrative expenses for the Management and franchising segment were ($63), for the Owned and leased segment were ($3), and for the Distribution segment were ($6). The Owned and leased expenses were ($270), and the Distribution expenses were ($276). These figures are in millions of dollars.
Prospective franchisees should understand how these expenses are allocated and managed within The Standardx's various segments. Understanding these expenses can provide insight into the financial health and operational efficiency of different parts of the company. It is also important to note that the CODM (Chief Operating Decision Maker) does not evaluate operating segments using discrete asset information.