Business Segments

9 Months Ended

Sep. 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, merger-related costs, or above-property restructuring charges. We assign gains and losses, equity in earnings or losses from our joint ventures, direct general, administrative, and other expenses, and 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 third quarter, 2019 third quarter, 2020 first three quarters, and 2019 first three quarters:

	Three Months Ended September 30, 2020
($ in millions)	North America		Asia Pacific		EMEA		Total
Gross fee revenues	$	201	$	55	$	27	$	283
Contract investment amortization	(43)		(1)		(3)		(47)
Net fee revenues	158		54		24		236
Owned, leased, and other revenue	36		22		26		84
Cost reimbursement revenue	1,392		81		112		1,585
Total reportable segment revenue	$	1,586	$	157	$	162	$	1,905
Unallocated corporate and other							349
Total revenue							$	2,254

	Three Months Ended September 30, 2019
($ in millions)	North America		Asia Pacific		EMEA		Total
Gross fee revenues	$	570	$	114	$	113	$	797
Contract investment amortization	(13)		(1)		(2)		(16)
Net fee revenues	557		113		111		781
Owned, leased, and other revenue	171		39		142		352
Cost reimbursement revenue	3,440		133		247		3,820
Total reportable segment revenue	$	4,168	$	285	$	500	$	4,953
Unallocated corporate and other							331
Total revenue							$	5,284

	Nine Months Ended September 30, 2020
($ in millions)	North America		Asia Pacific		EMEA		Total
Gross fee revenues	$	720	$	112	$	81	$	913
Contract investment amortization	(76)		(6)		(9)		(91)
Net fee revenues	644		106		72		822
Owned, leased, and other revenue	155		60		126		341
Cost reimbursement revenue	5,686		246		395		6,327
Total reportable segment revenue	$	6,485	$	412	$	593	$	7,490
Unallocated corporate and other							909
Total revenue							$	8,399

	Nine Months Ended September 30, 2019
($ in millions)	North America		Asia Pacific		EMEA		Total
Gross fee revenues	$	1,711	$	344	$	306	$	2,361
Contract investment amortization	(35)		(2)		(6)		(43)
Net fee revenues	1,676		342		300		2,318
Owned, leased, and other revenue	534		130		408		1,072
Cost reimbursement revenue	10,336		393		721		11,450
Total reportable segment revenue	$	12,546	$	865	$	1,429	$	14,840
Unallocated corporate and other							761
Total revenue							$	15,601

Segment Profits and Losses

	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
North America	$	66	$	493	$	188	$	1,575
Asia Pacific	32		81		(19)		276
EMEA	(21)		98		(154)		251
Unallocated corporate and other	157		(53)		146		(550)
Interest expense, net of interest income	(107)		(92)		(313)		(279)
(Provision) benefit for income taxes	(27)		(140)		49		(279)
Net income (loss)	$	100	$	387	$	(103)	$	994