Business Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

Beginning in the 2020 first quarter, we modified our segment structure due to a change in the way management evaluates results and allocates resources within the Company, resulting in the following operating segments: North America; Asia Pacific; Europe, Middle East and Africa (“EMEA”); and Caribbean and Latin America (“CALA”). Our CALA operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment. We revised the prior period amounts shown in the tables below to conform to our current presentation.

We evaluate the performance of our operating segments using “segment profits/loss” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, certain restructuring charges, or merger-related costs. We assign gains and losses, equity in earnings or losses from our joint ventures, direct general, administrative, and other expenses, and certain other restructuring charges to each of our segments. “Unallocated corporate and other” includes a portion of our revenues, including license fees we receive from our credit card programs, fees from vacation ownership licensing agreements, revenues and expenses for our Loyalty Program, general, administrative, and other expenses, restructuring and merger-related charges, equity in earnings or losses, and other gains or losses that we do not allocate to our segments as well as results of our CALA operating segment.

Our President and Chief Executive Officer, who is our chief operating decision maker, monitors assets for the consolidated Company but does not use assets by operating segment when assessing performance or making operating segment resource allocations.

Segment Revenues

The following tables present our revenues disaggregated by segment and major revenue stream for the 2020 second quarter, 2019 second quarter, 2020 first half, and 2019 first half:

	Three Months Ended June 30, 2020
($ in millions)	North America		Asia Pacific		EMEA		Total
Gross fee revenues	$	113	$	25	$	8	$	146
Contract investment amortization	(14)		(4)		(2)		(20)
Net fee revenues	99		21		6		126
Owned, leased, and other revenue	17		7		9		33
Cost reimbursement revenue	963		58		72		1,093
Total reportable segment revenue	$	1,079	$	86	$	87	$	1,252
Unallocated corporate and other							212
Total revenue							$	1,464

	Three Months Ended June 30, 2019
($ in millions)	North America		Asia Pacific		EMEA		Total
Gross fee revenues	$	613	$	112	$	109	$	834
Contract investment amortization	(11)		(1)		(2)		(14)
Net fee revenues	602		111		107		820
Owned, leased, and other revenue	185		50		144		379
Cost reimbursement revenue	3,517		149		260		3,926
Total reportable segment revenue	$	4,304	$	310	$	511	$	5,125
Unallocated corporate and other							180
Total revenue							$	5,305

	Six Months Ended June 30, 2020
($ in millions)	North America		Asia Pacific		EMEA		Total
Gross fee revenues	$	519	$	57	$	54	$	630
Contract investment amortization	(33)		(5)		(6)		(44)
Net fee revenues	486		52		48		586
Owned, leased, and other revenue	119		38		100		257
Cost reimbursement revenue	4,294		165		283		4,742
Total reportable segment revenue	$	4,899	$	255	$	431	$	5,585
Unallocated corporate and other							560
Total revenue							$	6,145

	Six Months Ended June 30, 2019
($ in millions)	North America		Asia Pacific	EMEA		Total
Gross fee revenues	$	1,141	230	$	193	$	1,564
Contract investment amortization	(22)		(1)	(4)		(27)
Net fee revenues	1,119		229	189		1,537
Owned, leased, and other revenue	363		91	266		720
Cost reimbursement revenue	6,896		260	474		7,630
Total reportable segment revenue	$	8,378	580	$	929	$	9,887
Unallocated corporate and other						430
Total revenue						$	10,317

Segment Profits and Losses

	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
North America	$	(36)	$	591	$	122	$	1,082
Asia Pacific	(41)		92		(51)		195
EMEA	(96)		96		(133)		153
Unallocated corporate and other	(6)		(369)		(11)		(497)
Interest expense, net of interest income	(119)		(96)		(206)		(187)
Benefit (provision) for income taxes	64		(82)		76		(139)
Net (loss) income	$	(234)	$	232	$	(203)	$	607