Acquisitions

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Acquisitions [Text Block]

Acquisitions

Assets acquired and liabilities assumed in business combinations were recorded on the Consolidated Balance Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the Company have been included in the Consolidated Statements of Income since their respective dates of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed was allocated to goodwill. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions. Accordingly, the allocations may be subject to revision when the Company receives final information, including appraisals and other analyses. Any revisions to the fair values during the allocation period will be recorded by the Company as further adjustments to the purchase price allocations. Although, in certain circumstances, the Company has substantially integrated the operations of its acquired businesses, additional future costs relating to such integration may occur. These costs may result from integrating operating systems, relocating employees, closing facilities, reducing duplicative efforts and exiting and consolidating other activities. These costs will be recorded on the Consolidated Statements of Income as expenses.

During the third quarter of 2016, the Company completed five acquisitions for a total of $37 million in cash, net of cash acquired. The Company’s Destination Network segment completed three acquisitions for $20 million in cash, net of cash acquired. The preliminary purchase price allocations resulted primarily in the recognition of (i) $14 million of property and equipment, (ii) $11 million of definite-lived intangible assets with a weighted average life of 8 years, (iii) $10 million of goodwill, the majority of which is not expected to be deductible for tax purposes and (iv) $15 million of liabilities. Additionally, the Company’s Vacation Ownership segment completed two acquisitions for $17 million. The preliminary purchase price allocations resulted primarily in the recognition of $15 million of property and equipment. These acquisitions were not material to the Company’s results of operations, financial position or cash flows.