Segment Information

9 Months Ended

Sep. 30, 2019

The Company has two operating segments: Vacation Ownership and Exchange & Rentals. The Vacation Ownership segment develops, markets and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs and provides property management services at resorts. The Exchange & Rentals segment provides vacation exchange services and products to owners of VOIs and manages and markets vacation rental properties primarily on behalf of independent owners. During 2018, the Company decided to explore strategic alternatives for its North American vacation rentals business, which is currently part of its Exchange & Rentals segment and during the third quarter of 2019 the Company entered into an agreement for the sale of this business, which closed on October 22, 2019. The assets and liabilities of this business have been classified as held-for-sale. The reportable segments presented below represent the Company’s operating segments for which discrete financial information is available and which are utilized on a regular basis by its chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. Management uses net revenues and Adjusted EBITDA to assess the performance of the reportable segments. Adjusted EBITDA is defined by the Company as Net income before Depreciation and amortization, Interest expense (excluding Consumer financing interest), Early extinguishment of debt, Interest income (excluding Consumer financing revenues) and Income taxes. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, transaction costs, impairments, and items that meet the conditions of unusual and/or infrequent. The Company believes that Adjusted EBITDA is a useful measure of performance for its segments which, when considered with GAAP measures, the Company believes gives a more complete understanding of its operating performance. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Net revenues	2019			2018			2019			2018
Vacation Ownership	$	858		$	820		$	2,351		$	2,251
Exchange & Rentals	250			243			716			727
Total reportable segments	1,108			1,063			3,067			2,978
Corporate and other ^(a)	(3		)	(1		)	(5		)	(2		)
Total Company	$	1,105		$	1,062		$	3,062		$	2,976

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Reconciliation of Net income to Adjusted EBITDA	2019			2018			2019			2018
Net income attributable to Wyndham Destinations shareholders	$	135		$	148		$	339		$	560
Loss from operations of discontinued businesses, net of income taxes	—			3			—			52
Gain on disposal of discontinued businesses, net of income taxes	—			(20		)	(5		)	(452		)
Provision for income taxes	46			51			120			112
Depreciation and amortization	31			32			90			105
Interest expense	40			37			122			129
Interest (income)	(1		)	—			(6		)	(3		)
Separation and related costs ^(b)	7			35			44			198
Restructuring	—			—			4			—
Asset impairments	—			(4		)	—			(4		)
Legacy items	—			—			1			—
Acquisition and divestiture related costs	4			—			4			—
Stock-based compensation	5			3			13			21
Value-added tax refund	—			(16		)	—			(16		)
Adjusted EBITDA	$	267		$	269		$	726		$	702

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Adjusted EBITDA	2019			2018			2019			2018
Vacation Ownership	$	203		$	203		$	534		$	530
Exchange & Rentals	83			79			234			228
Total reportable segments	286			282			768			758
Corporate and other ^(a)	(19		)	(13		)	(42		)	(56		)
Total Company	$	267		$	269		$	726		$	702


^(a)	Includes the elimination of transactions between segments.


^(b)	Includes $4 million of stock based compensation expenses for the nine months ended September 30, 2019 and $9 million and $100 million for the three and nine months ended September 30, 2018.



Segment Assets ^(a)	September 30, 2019		December 31, 2018
Vacation Ownership	$	5,603	$	5,421
Exchange & Rentals	1,487		1,376
Total reportable segments	7,090		6,797
Corporate and other	259		158
Assets held-for-sale	214		203
Total Company	$	7,563	$	7,158

^(a)

Excludes investment in consolidated subsidiaries.