Business Segments

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

We discuss our operations in the following two operating segments, both of which meet the applicable accounting 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 profits,” which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general, administrative, and other expenses, or merger-related costs. We assign gains and losses, equity in earnings or losses, and direct general, administrative, and other expenses to each of our segments. “Unallocated corporate and other” includes a portion of our revenues (such as fees we receive from our credit card programs and vacation ownership licensing agreements), revenues and expenses for our Loyalty Program, general, administrative, and other expenses, 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 2023 third quarter, 2022 third quarter, 2023 first three quarters, and 2022 first three quarters:

	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
(in millions)	U.S. & Canada		International		Total		U.S. & Canada		International		Total
Gross fee revenues	$	690	$	319	$	1,009	$	649	$	241	$	890
Contract investment amortization	(16)		(6)		(22)		(16)		(6)		(22)
Net fee revenues	674		313		987		633		235		868
Owned, leased, and other revenue	94		235		329		114		205		319
Cost reimbursement revenue	3,565		577		4,142		3,253		468		3,721
Total reportable segment revenue	$	4,333	$	1,125	$	5,458	$	4,000	$	908	$	4,908
Unallocated corporate and other					470						405
Total revenue					$	5,928					$	5,313

	Nine Months Ended September 30, 2023						Nine Months Ended September 30, 2022
(in millions)	U.S. & Canada		International		Total		U.S. & Canada		International		Total
Gross fee revenues	$	2,113	$	924	$	3,037	$	1,821	$	630	$	2,451
Contract investment amortization	(49)		(16)		(65)		(45)		(20)		(65)
Net fee revenues	2,064		908		2,972		1,776		610		2,386
Owned, leased, and other revenue	327		691		1,018		330		575		905
Cost reimbursement revenue	10,722		1,658		12,380		9,282		1,273		10,555
Total reportable segment revenue	$	13,113	$	3,257	$	16,370	$	11,388	$	2,458	$	13,846
Unallocated corporate and other					1,248						1,004
Total revenue					$	17,618					$	14,850

Segment Profits

	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
U.S. & Canada	$	707	$	652	$	2,120	$	1,833
International	318		227		865		568
Unallocated corporate and other	103		83		203		92
Interest expense, net of interest income	(139)		(93)		(391)		(270)
Provision for income taxes	(237)		(239)		(562)		(538)
Net income	$	752	$	630	$	2,235	$	1,685