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REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended
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Sep. 30, 2024
Revenue from Contract with Customer [Abstract] |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following tables show our disaggregated revenues by product and segment from contracts with customers. We operate our business in the following two reportable segments: (i) Real estate sales and financing and (ii) Resort operations and club management. See Note 17: Business Segments for more information related to our segments.
($ in millions) | Three Months Ended September 30, |  | Nine Months Ended September 30,
Real Estate Sales and Financing Segment | 2024 |  | 2023 |  | 2024 |  | 2023
Sales of VOIs, net | $ | 550 |  |  | $ | 367 |  |  | $ | 1,459 |  |  | $ | 1,040 |
Sales, marketing, brand and other fees | 159 |  |  | 170 |  |  | 471 |  |  | 501 |
Interest income | 96 |  |  | 68 |  |  | 280 |  |  | 199 |
Other financing revenue | 9 |  |  | 7 |  |  | 31 |  |  | 26 |
Real estate sales and financing segment revenues | $ | 814 |  |  | $ | 612 |  |  | $ | 2,241 |  |  | $ | 1,766 |
($ in millions) | Three Months Ended September 30, |  | Nine Months Ended September 30,
Resort Operations and Club Management Segment | 2024 |  | 2023 |  | 2024 |  | 2023
Club management | $ | 74 |  |  | $ | 56 |  |  | $ | 204 |  |  | $ | 160 |
Resort management | 105 |  |  | 82 |  |  | 312 |  |  | 242 |
Rental(1) | 171 |  |  | 160 |  |  | 521 |  |  | 469 |
Ancillary services | 12 |  |  | 11 |  |  | 38 |  |  | 33 |
Resort operations and club management segment revenues | $ | 362 |  |  | $ | 309 |  |  | $ | 1,075 |  |  | $ | 904 |
(1)Excludes intersegment transactions. See Note 17: Business Segments for additional information. Receivables from Contracts with Customers, Contract Liabilities, and Contract Assets Our accounts receivable that relate to our contracts with customers includes amounts associated with our contractual right to consideration for completed performance obligations and are settled when the related cash is received. Accounts receivable are recorded when the right to consideration becomes unconditional and is only contingent on the passage of time. Our timeshare financing receivables consist of loans related to our financing of VOI sales that are secured by the underlying timeshare properties. See Note 6: Timeshare financing receivables for additional information. The following table provides information on our contracts with customers which are included in Accounts receivable, net and Timeshare financing receivables, net, respectively, on our condensed consolidated balance sheets:
($ in millions) | September 30, 2024 |  | December 31, 2023
Receivables from contracts with customers: |  |  |
Accounts receivable, net | $ | 249 |  |  | $ | 343 |
Timeshare financing receivables, net | 3,009 |  |  | 2,113 |
Total | $ | 3,258 |  |  | $ | 2,456 |
Contract liabilities include payments received or due in advance of satisfying our performance obligations. Such contract liabilities include advanced deposits received on prepaid vacation packages for future stays at our resorts, deferred revenue related to sales of VOIs of projects under construction, club activation fees and annual dues, the liability for bonus points awarded to our customers for purchase of VOIs at our properties or properties under our fee-for-service arrangements that may be redeemed in the future, deferred maintenance fees and other deferred revenue. The following table presents the composition of our contract liabilities:
($ in millions) | September 30, 2024 |  | December 31, 2023
Contract liabilities: |  |  |
Advanced deposits | $ | 224 |  |  | $ | 179 |
Deferred sales of VOIs of projects under construction | 2 |  |  | 39 |
Club activation fees and annual dues | 107 |  |  | 97 |
Bonus point incentive liability(1) | 96 |  |  | 83 |
Deferred maintenance fees | 16 |  |  | 12 |
Other deferred revenue | 48 |  |  | 38 |
(1)The balance includes $56 million and $54 million of bonus point incentive liabilities included in Accounts payable, accrued expenses and other on our condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023, respectively. This liability is for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements. Revenue earned for the three and nine months ended September 30, 2024, that was included in the contract liabilities balance at December 31, 2023, was approximately $31 million and $167 million, respectively. Contract assets relate to incentive fees that can be earned for meeting certain targets on sales of VOIs at properties under our fee-for-service arrangements; however, our right to consideration is conditional upon completing the requirements of the annual incentive fee period. As of September 30, 2024 and December 31, 2023, contract assets were $1 million and $13 million, respectively. Transaction Price Allocated to Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contract revenue that has not yet been recognized. Our contracts with remaining performance obligations primarily include (i) sales of VOIs under construction, (ii) club activation fees paid at closing of a VOI purchase, (iii) customers’ advanced deposits on prepaid vacation packages and (iv) bonus points that may be redeemed in the future. Deferred VOI sales include deferred revenue from sales associated with phases or buildings under-construction and not yet completed. The following table presents the deferred revenue, deferred cost of VOI sales and deferred direct selling costs from sales of VOIs related to projects under construction:
($ in millions) | September 30, 2024 |  | December 31, 2023
Sales of VOIs, net | $ | 2 |  |  | $ | 39 |
Cost of VOI sales | — |  |  | 10 |
Sales and marketing expense | — |  |  | 6 |
During the nine months ended September 30, 2024, we recognized $106 million of sales of VOIs, net, offset by deferrals of $68 million, related to sales of projects under construction, some of which were completed during the year. We expect to recognize the revenue, costs of VOI sales and direct selling costs related to the projects under construction as of September 30, 2024, upon their completion. The following table includes the remaining transaction price related to Advanced deposits, Club activation fees and Bonus points incentive liability as of September 30, 2024:
($ in millions) | Remaining Transaction Price |  | Recognition Period |  | Recognition Method
Advanced deposits | $ | 224 |  |  | 18 months |  | Upon customer stays
Club activation fees | 65 |  |  | 7 years |  | Straight-line basis over average inventory holding period
Bonus point incentive liability | 96 |  |  | 18 - 30 months |  | Upon redemption

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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