Business Segments

9 Months Ended

Sep. 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 third quarter, 2020 third quarter, 2021 first three quarters, and 2020 first three quarters:

	Three Months Ended September 30, 2021
($ in millions)	U.S. & Canada		International		Total
Gross fee revenues	$	478	$	156	$	634
Contract investment amortization	(15)		(6)		(21)
Net fee revenues	463		150		613
Owned, leased, and other revenue	93		134		227
Cost reimbursement revenue	2,450		337		2,787
Total reportable segment revenue	$	3,006	$	621	$	3,627
Unallocated corporate and other					319
Total revenue					$	3,946

	Three Months Ended September 30, 2020
($ in millions)	U.S. & Canada		International		Total
Gross fee revenues	$	201	$	89	$	290
Contract investment amortization	(43)		(5)		(48)
Net fee revenues	158		84		242
Owned, leased, and other revenue	36		63		99
Cost reimbursement revenue	1,392		212		1,604
Total reportable segment revenue	$	1,586	$	359	$	1,945
Unallocated corporate and other					309
Total revenue					$	2,254

	Nine Months Ended September 30, 2021
($ in millions)	U.S. & Canada		International		Total
Gross fee revenues	$	1,101	$	375	$	1,476
Contract investment amortization	(41)		(15)		(56)
Net fee revenues	1,060		360		1,420
Owned, leased, and other revenue	185		320		505
Cost reimbursement revenue	5,810		854		6,664
Total reportable segment revenue	$	7,055	$	1,534	$	8,589
Unallocated corporate and other					822
Total revenue					$	9,411

	Nine Months Ended September 30, 2020
($ in millions)	U.S. & Canada		International		Total
Gross fee revenues	$	720	$	226	$	946
Contract investment amortization	(76)		(18)		(94)
Net fee revenues	644		208		852
Owned, leased, and other revenue	155		250		405
Cost reimbursement revenue	5,686		727		6,413
Total reportable segment revenue	$	6,485	$	1,185	$	7,670
Unallocated corporate and other					729
Total revenue					$	8,399

Segment Profit and Loss

	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
U.S. & Canada	$	485	$	66	$	972	$	188
International	86		11		142		(179)
Unallocated corporate and other	(194)		157		(181)		152
Interest expense, net of interest income	(99)		(107)		(301)		(313)
(Provision) benefit for income taxes	(58)		(27)		(1)		49
Net income (loss)	$	220	$	100	$	631	$	(103)