Business Segments

9 Months Ended

Sep. 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: (1) U.S. & Canada and (2) 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 third quarter, 2021 third quarter, 2022 first three quarters, and 2021 first three quarters:

	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
($ in millions)	U.S. & Canada		International		Total		U.S. & Canada		International		Total
Gross fee revenues	$	649	$	241	$	890	$	478	$	156	$	634
Contract investment amortization	(16)		(6)		(22)		(15)		(6)		(21)
Net fee revenues	633		235		868		463		150		613
Owned, leased, and other revenue	114		205		319		93		134		227
Cost reimbursement revenue	3,253		468		3,721		2,450		337		2,787
Total reportable segment revenue	$	4,000	$	908	$	4,908	$	3,006	$	621	$	3,627
Unallocated corporate and other					405						319
Total revenue					$	5,313					$	3,946

	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
($ in millions)	U.S. & Canada		International		Total		U.S. & Canada		International		Total
Gross fee revenues	$	1,821	$	630	$	2,451	$	1,101	$	375	$	1,476
Contract investment amortization	(45)		(20)		(65)		(41)		(15)		(56)
Net fee revenues	1,776		610		2,386		1,060		360		1,420
Owned, leased, and other revenue	330		575		905		185		320		505
Cost reimbursement revenue	9,282		1,273		10,555		5,810		854		6,664
Total reportable segment revenue	$	11,388	$	2,458	$	13,846	$	7,055	$	1,534	$	8,589
Unallocated corporate and other					1,004						822
Total revenue					$	14,850					$	9,411

Segment Profit

	Three Months Ended				Nine Months Ended
($ in millions)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
U.S. & Canada	$	652	$	485	$	1,833	$	972
International	227		86		568		142
Unallocated corporate and other	83		(194)		92		(181)
Interest expense, net of interest income	(93)		(99)		(270)		(301)
Provision for income taxes	(239)		(58)		(538)		(1)
Net income	$	630	$	220	$	1,685	$	631