BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

We discuss our operations in the following three reportable business segments: United States and Canada (“U.S. & Canada”); Asia Pacific; and Europe, Middle East and Africa (“EMEA”). Our Caribbean and Latin America (“CALA”) operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment, and we include its results in “Unallocated corporate and other.” In the 2020 fourth quarter, we changed the name of our largest segment from “North America” to “U.S. & Canada.” Other than the name change, we made no other changes to the composition of this segment. In January 2021, we modified our reportable segment structure as a result of a change in the way management intends to evaluate results and allocate resources within the Company. Beginning with the 2021 first quarter, we will report the following two operating segments: U.S. & Canada and International.

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, 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 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 last three fiscal years:

	2020
($ in millions)	U.S. & Canada		Asia Pacific		EMEA		Total
Gross fee revenues	$	914	$	183	$	110	$	1,207
Contract investment amortization	(108)		(7)		(12)		(127)
Net fee revenues	806		176		98		1,080
Owned, leased, and other revenue	198		89		153		440
Cost reimbursement revenue	6,901		347		507		7,755
Total reportable segment revenue	$	7,905	$	612	$	758	$	9,275
Unallocated corporate and other							1,296
Total revenue							$	10,571

	2019
($ in millions)	U.S. & Canada		Asia Pacific		EMEA		Total
Gross fee revenues	$	2,265	$	477	$	418	$	3,160
Contract investment amortization	(48)		(2)		(8)		(58)
Net fee revenues	2,217		475		410		3,102
Owned, leased, and other revenue	715		178		553		1,446
Cost reimbursement revenue	13,901		536		969		15,406
Total reportable segment revenue	$	16,833	$	1,189	$	1,932	$	19,954
Unallocated corporate and other							1,018
Total revenue							$	20,972

	2018
($ in millions)	U.S. & Canada		Asia Pacific		EMEA		Total
Gross fee revenues	$	2,158	$	479	$	387	$	3,024
Contract investment amortization	(45)		(2)		(7)		(54)
Net fee revenues	2,113		477		380		2,970
Owned, leased, and other revenue	721		182		563		1,466
Cost reimbursement revenue	13,455		459		926		14,840
Total reportable segment revenue	$	16,289	$	1,118	$	1,869	$	19,276
Unallocated corporate and other							1,482
Total revenue							$	20,758

Revenues attributed to operations located outside the U.S. were $1,910 million in 2020, $4,400 million in 2019, and $4,246 million in 2018, including cost reimbursement revenue outside the U.S. of $1,247 million in 2020, $2,394 million in 2019, and $2,244 million in 2018.

Segment Profits and Losses

($ in millions)	2020		2019		2018
U.S. & Canada (1)	$	198	$	2,000	$	1,939
Asia Pacific (2)	1		369		456
EMEA (3)	(200)		318		328
Unallocated corporate and other	(47)		(720)		(60)
Interest expense, net of interest income	(418)		(368)		(318)
Benefit (provision) for income taxes	199		(326)		(438)
Net (loss) income	$	(267)	$	1,273	$	1,907

(1)    Includes cost reimbursements, net of $(80) million in 2020, $(129) million in 2019, and $(121) million in 2018.

(2)    Includes cost reimbursements, net of $(18) million in 2020, $(9) million in 2019, and zero in 2018.

(3)    Includes cost reimbursements, net of $(33) million in 2020, $(8) million in 2019, and zero in 2018.

Segment (losses) profits attributed to operations located outside the U.S. were $(198) million in 2020, $982 million in 2019, and $1,155 million in 2018, including cost reimbursements, net (cost reimbursement revenue, net of reimbursed expenses) outside the U.S. of $(62) million in 2020, $(18) million in 2019, and $(14) million in 2018.

Depreciation, Amortization, and Other

($ in millions)	2020		2019		2018
U.S. & Canada	$	209	$	218	$	97
Asia Pacific	30		25		26
EMEA	58		51		51
Unallocated corporate and other	49		47		52
	$	346	$	341	$	226

Capital Expenditures

($ in millions)	2020		2019		2018
U.S. & Canada	$	12	$	287	$	305
Asia Pacific	2		2		6
EMEA	12		29		36
Unallocated corporate and other	109		335		209
	$	135	$	653	$	556