Business Segments

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

Beginning in the 2021 first quarter, we modified our segment structure due to a change in the way our chief operating decision maker evaluates results and allocates resources within the Company, resulting in the following two operating segments, both of which meet the applicable accounting criteria for separate disclosure as a reportable business segment: U.S. & Canada and International. 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 profit/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 most 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.

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 2021 second quarter, 2020 second quarter, 2021 first half, and 2020 first half:

	Three Months Ended June 30, 2021
($ in millions)	U.S. & Canada		International		Total
Gross fee revenues	$	373	$	132	$	505
Contract investment amortization	(13)		(5)		(18)
Net fee revenues	360		127		487
Owned, leased, and other revenue	57		120		177
Cost reimbursement revenue	1,911		275		2,186
Total reportable segment revenue	$	2,328	$	522	$	2,850
Unallocated corporate and other					299
Total revenue					$	3,149

	Three Months Ended June 30, 2020
($ in millions)	U.S. & Canada		International		Total
Gross fee revenues	$	113	$	35	$	148
Contract investment amortization	(14)		(7)		(21)
Net fee revenues	99		28		127
Owned, leased, and other revenue	17		19		36
Cost reimbursement revenue	963		147		1,110
Total reportable segment revenue	$	1,079	$	194	$	1,273
Unallocated corporate and other					191
Total revenue					$	1,464

	Six Months Ended June 30, 2021
($ in millions)	U.S. & Canada		International		Total
Gross fee revenues	$	623	$	219	$	842
Contract investment amortization	(26)		(9)		(35)
Net fee revenues	597		210		807
Owned, leased, and other revenue	92		186		278
Cost reimbursement revenue	3,360		517		3,877
Total reportable segment revenue	$	4,049	$	913	$	4,962
Unallocated corporate and other					503
Total revenue					$	5,465

	Six Months Ended June 30, 2020
($ in millions)	U.S. & Canada		International		Total
Gross fee revenues	$	519	$	137	$	656
Contract investment amortization	(33)		(13)		(46)
Net fee revenues	486		124		610
Owned, leased, and other revenue	119		187		306
Cost reimbursement revenue	4,294		515		4,809
Total reportable segment revenue	$	4,899	$	826	$	5,725
Unallocated corporate and other					420
Total revenue					$	6,145

Segment Profit and Loss

	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
U.S. & Canada	$	344	$	(36)	$	487	$	122
International	79		(163)		56		(190)
Unallocated corporate and other	60		20		13		(5)
Interest expense, net of interest income	(102)		(119)		(202)		(206)
Benefit for income taxes	41		64		57		76
Net income (loss)	$	422	$	(234)	$	411	$	(203)