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Business Segments (Tables)
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Schedule of Segment Revenues Reconciled to Consolidated Amounts

We do not include equity in earnings from unconsolidated affiliate in our measures of segment revenues. The following table presents revenues for our reportable segments reconciled to consolidated amounts:

 

 

 

Year Ended December 31,

 

($ in millions)

 

2017

 

 

2016

 

 

2015

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate sales and financing(1)

 

$

1,239

 

 

$

1,143

 

 

$

1,078

 

Resort operations and club management(2)

 

 

367

 

 

 

339

 

 

 

307

 

Total segment revenues

 

 

1,606

 

 

 

1,482

 

 

 

1,385

 

Cost reimbursements

 

 

135

 

 

 

126

 

 

 

110

 

Intersegment eliminations(1)(2)(3)

 

 

(30

)

 

 

(25

)

 

 

(20

)

Total revenues

 

$

1,711

 

 

$

1,583

 

 

$

1,475

 

 

(1)

Includes charges to the resort operations and club management segment for billing and collection services provided by the real estate sales and financing segment. These charges totaled $2 million for each of the years ended December 31, 2016 and 2015. There were no charges for the year ended December 31, 2017.

(2)

Includes charges to the real estate sales and financing segment from the resort operations and club management segment for discounted stays at properties resulting from marketing packages. These charges totaled $29 million, $23 million and $17 million for the years ended December 31, 2017, 2016 and 2015, respectively.

(3)

Includes charges to the real estate sales and financing segment from the resort operations and club management segment for the rental of model units to show prospective buyers. These charges totaled $1 million for the years ended December 31, 2017 and 2015. There were no charges for the year ended December 31, 2016.

Schedule of Adjusted EBITDA Reconciled to Net Income

The following table presents Adjusted EBITDA for our reportable segments reconciled to net income:

 

 

 

Year Ended December 31,

 

($ in millions)

 

2017

 

 

2016

 

 

2015

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate sales and financing(1)

 

$

359

 

 

$

336

 

 

$

316

 

Resort operations and club management(1)

 

 

204

 

 

 

189

 

 

 

162

 

Segment Adjusted EBITDA

 

 

563

 

 

 

525

 

 

 

478

 

General and administrative

 

 

(104

)

 

 

(92

)

 

 

(57

)

Depreciation and amortization

 

 

(29

)

 

 

(24

)

 

 

(22

)

License fee expense

 

 

(87

)

 

 

(80

)

 

 

(74

)

Interest expense

 

 

(27

)

 

 

(3

)

 

 

—

 

Allocated Parent interest expense(2)

 

 

—

 

 

 

(26

)

 

 

(29

)

Other loss, net

 

 

—

 

 

 

(1

)

 

 

—

 

Equity in earnings from unconsolidated affiliate(4)

 

 

1

 

 

 

—

 

 

 

—

 

Income tax benefit (expense)(3)

 

 

16

 

 

 

(125

)

 

 

(118

)

Other adjustment items

 

 

(6

)

 

 

(6

)

 

 

(4

)

Net income

 

$

327

 

 

$

168

 

 

$

174

 

 

 

(1)

Includes intersegment eliminations. Refer to our table presenting revenues by reportable segment above for additional discussion.

 

(2)

This amount represents interest expense on an unconditional obligation to guarantee certain Hilton allocated debt balances which were released in November 2016.

 

(3)

On December 22, 2017, the United States enacted tax reform legislation, the Act, resulting in significant modifications to existing law which resulted in a reduction in income tax expense for the year ended December 31, 2017. See Note 15: Income Taxes for additional information.

 

(4)

This amount represents our 25 percent interest in BRE Ace LLC. See Note 8: Investment in Unconsolidated Affiliate for additional information.
Schedule of Assets Reconciled to Consolidated Amounts

The following table presents total assets for our reportable segments, reconciled to consolidated amounts:

 

 

 

December 31,

 

($ in millions)

 

2017

 

 

2016

 

Real estate sales and financing

 

$

2,255

 

 

$

2,067

 

Resort operations and club management

 

 

78

 

 

 

80

 

Total segment assets

 

 

2,333

 

 

 

2,147

 

Corporate

 

 

51

 

 

 

33

 

Total assets

 

$

2,384

 

 

$

2,180

 

 
Schedule of Capital Expenditures for Property and Equipment Reconciled to Consolidated Amounts

The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts:

 

 

 

December 31,

 

($ in millions)

 

2017

 

 

2016

 

 

2015

 

Real estate sales and financing

 

$

28

 

 

$

19

 

 

$

10

 

Resort operations and club management

 

 

2

 

 

 

1

 

 

 

1

 

Total segment capital expenditures for property and equipment

 

 

30

 

 

 

20

 

 

 

11

 

Corporate

 

 

5

 

 

 

6

 

 

 

1

 

Total capital expenditures for property and equipment

 

$

35

 

 

$

26

 

 

$

12