Business Segments

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

We discuss our operations in the following two operating segments, both of which meet the applicable criteria for separate disclosure as a reportable business segment: U.S. & Canada and International.

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 and fees from vacation ownership licensing agreements), revenues and expenses for our Loyalty Program, general, administrative, and other expenses, restructuring, merger-related charges, and other expenses, 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 2022 second quarter, 2021 second quarter, 2022 first half, and 2021 first half:

	Three Months Ended June 30, 2022						Three Months Ended June 30, 2021
($ in millions)	U.S. & Canada		International		Total		U.S. & Canada		International		Total
Gross fee revenues	$	683	$	212	$	895	$	373	$	132	$	505
Contract investment amortization	(15)		(4)		(19)		(13)		(5)		(18)
Net fee revenues	668		208		876		360		127		487
Owned, leased, and other revenue	124		217		341		57		120		177
Cost reimbursement revenue	3,325		450		3,775		1,911		275		2,186
Total reportable segment revenue	$	4,117	$	875	$	4,992	$	2,328	$	522	$	2,850
Unallocated corporate and other					346						299
Total revenue					$	5,338					$	3,149

	Six Months Ended June 30, 2022						Six Months Ended June 30, 2021
($ in millions)	U.S. & Canada		International		Total		U.S. & Canada		International		Total
Gross fee revenues	$	1,172	$	389	$	1,561	$	623	$	219	$	842
Contract investment amortization	(29)		(14)		(43)		(26)		(9)		(35)
Net fee revenues	1,143		375		1,518		597		210		807
Owned, leased, and other revenue	216		370		586		92		186		278
Cost reimbursement revenue	6,029		805		6,834		3,360		517		3,877
Total reportable segment revenue	$	7,388	$	1,550	$	8,938	$	4,049	$	913	$	4,962
Unallocated corporate and other					599						503
Total revenue					$	9,537					$	5,465

Segment Profit

	Three Months Ended				Six Months Ended
($ in millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
U.S. & Canada	$	727	$	344	$	1,181	$	487
International	210		79		341		56
Unallocated corporate and other	30		60		9		13
Interest expense, net of interest income	(89)		(102)		(177)		(202)
(Provision) benefit for income taxes	(200)		41		(299)		57
Net income	$	678	$	422	$	1,055	$	411