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BUSINESS SEGMENTS | 3 Months Ended
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Mar. 31, 2026
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | BUSINESS SEGMENTS We operate our business through the following two reportable segments based on the nature of the products and services provided: •Real estate sales and financing – We market and sell VOIs that we own. We also source VOIs through fee-for-service agreements with third-party developers. Related to the sales of the VOIs that we own, we provide consumer financing, which includes interest income generated from the origination of consumer loans to customers to finance their purchase of VOIs and revenue from servicing the loans. We also generate fee revenue from servicing the loans provided by third-party developers to purchasers of their VOIs. •Resort operations and club management – We manage the clubs and earn activation fees, annual dues and transaction fees from member exchanges for other vacation products. We also earn fees for managing the timeshare properties. We generate rental revenue from unit rentals of unsold inventory and inventory made available due to ownership exchanges under our club programs. We also earn revenue from food and beverage, retail and spa outlets at our timeshare properties. Our chief operating decision maker “CODM” is our Chief Executive Officer. The CODM is our primary decision maker and is responsible for allocating resources to the components of the company and assessing company performance. The CODM uses Adjusted EBITDA to allocate resources (including employees and financial or capital resources) in the budgeting and forecasting process as well as assess performance and profitability for each segment. The performance of our operating segments, which are also our reportable segments, is evaluated based on adjusted earnings before interest expense (excluding non-recourse debt), taxes, depreciation and amortization (“EBITDA”). We define Adjusted EBITDA as EBITDA, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) other gains and losses, including asset dispositions and foreign currency transactions; (ii) debt restructurings/retirements; (iii) non-cash impairment losses; (iv) share-based and other compensation expenses; and (v) other items, including but not limited to costs associated with acquisitions, restructuring, amortization of premiums and discounts resulting from purchase accounting, and other non-cash and one-time charges. We do not include equity in earnings from unconsolidated affiliates in our measures of segment operating performance. The table below presents revenues for our reportable segment results reconciled to consolidated amounts:
| Three Months Ended March 31, |  |
($ in millions) | 2026 |  | 2025 |  |  |  |
Revenues: |  |  |  |  |  |  |
Real estate sales and financing | $ | 754 |  |  | $ | 645 |  |  |  |  |
Resort operations and club management(1) | 402 |  |  | 391 |  |  |  |  |
Total segment revenues | 1,156 |  |  | 1,036 |  |  |  |  |
Cost reimbursements | 149 |  |  | 133 |  |  |  |  |
Intersegment eliminations(1) | (20) |  |  | (21) |  |  |  |  |
Total revenues | $ | 1,285 |  |  | $ | 1,148 |  |  |  |  |
(1)Includes charges to the Real estate sales and financing segment from the Resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. We account for intersegment revenues as if they were sales to third parties at current market prices. The following tables present Adjusted EBITDA for our reportable segments:
($ in millions) |  |  |  |  |  |
For the three months ended March 31, 2026 | Real Estate and Financing |  | Resort Operations and Club Management |  | Total |
Revenues from external customers | $ | 754 |  |  | $ | 382 |  |  | $ | 1,136 |  |
Intersegment revenues | — |  |  | 20 |  |  | 20 |  |
Total segment revenues | 754 |  |  | 402 |  |  | 1,156 |  | (a)
Less: |  |  |  |  |  |
Cost of VOI sales | 45 |  |  | — |  |  | 45 |  |
Selling expense | 181 |  |  | — |  |  | 181 |  |
Marketing expense | 239 |  |  | — |  |  | 239 |  |
Financing expense | 51 |  |  | — |  |  | 51 |  |
Club expense | — |  |  | 22 |  |  | 22 |  |
Property management expense | — |  |  | 37 |  |  | 37 |  |
Rental expense | — |  |  | 204 |  |  | 204 |  |
Other expenses | 17 |  |  | 12 |  |  | 29 |  |
Total segment expenses | 533 |  | (b) | 275 |  | (c) | 808 |  |
Other: |  |  |  |  |  |
Share-based compensation expense | 4 |  |  | 1 |  |  | 5 |  |
Other segment adjustment items | 6 |  |  | — |  |  | 6 |  | (d)
Intersegment elimination | (20) |  |  | — |  |  | (20) |  | (a)
Segment Adjusted EBITDA | $ | 211 |  |  | $ | 128 |  |  | $ | 339 |  |
($ in millions) |  |  |  |  |  |
For the three months ended March 31, 2025 | Real Estate and Financing |  | Resort Operations and Club Management |  | Total |
Revenues from external customers | $ | 645 |  |  | $ | 370 |  |  | $ | 1,015 |  |
Intersegment revenues | — |  |  | 21 |  |  | 21 |  |
Total segment revenues | 645 |  |  | 391 |  |  | 1,036 |  | (a)
Less: |  |  |  |  |  |
Cost of VOI sales | 25 |  |  | — |  |  | 25 |  |
Selling expense | 195 |  |  | — |  |  | 195 |  |
Marketing expense | 230 |  |  | — |  |  | 230 |  |
Financing expense | 55 |  |  | — |  |  | 55 |  |
Club expense | — |  |  | 20 |  |  | 20 |  |
Property management expense | — |  |  | 34 |  |  | 34 |  |
Rental expense | — |  |  | 195 |  |  | 195 |  |
Other expenses | — |  |  | 11 |  |  | 11 |  |
Total segment expenses | 505 |  | (b) | 260 |  | (c) | 765 |  |
Other: |  |  |  |  |  |
Share-based compensation expense | 4 |  |  | 2 |  |  | 6 |  |
Other segment adjustment items | 10 |  |  | — |  |  | 10 |  | (d)
Intersegment elimination | (21) |  |  | — |  |  | (21) |  | (a)
Segment Adjusted EBITDA | $ | 133 |  |  | $ | 133 |  |  | $ | 266 |  |
(a) Includes charges to the Real estate sales and financing segment from the Resort operations and club management segment for fulfillment of discounted marketing package stays at resorts. We account for intersegment revenues as if they were sales to third parties at current market prices. (b) Consists of Costs of VOI sales, Sales and Marketing, and Financing expense on the unaudited condensed consolidated statements of income. (c) Consists of Resort and club management and Rental and ancillary services expense on the unaudited condensed consolidated statements of income. (d) Consists of costs associated with restructuring, one-time charges, other non-cash items, and for the Real Estate and Financing Segment, amortization of fair value premiums and discounts resulting from purchase accounting. The following table presents Adjusted EBITDA for our reportable segments reconciled to net income and net income attributable to stockholders:
| Three Months Ended March 31, |  |
($ in millions) | 2026 |  | 2025 |  |  |  |
Adjusted EBITDA: |  |  |  |  |  |  |
Real estate sales and financing(1) | $ | 211 |  |  | $ | 133 |  |  |  |  |
Resort operations and club management(1) | 128 |  |  | 133 |  |  |  |  |
Segment Adjusted EBITDA | 339 |  |  | 266 |  |  |  |  |
Acquisition and integration-related expense | (12) |  |  | (28) |  |  |  |  |
General and administrative | (49) |  |  | (46) |  |  |  |  |
Depreciation and amortization | (71) |  |  | (67) |  |  |  |  |
License fee expense | (53) |  |  | (49) |  |  |  |  |
Other (loss) gain, net | (1) |  |  | 6 |  |  |  |  |
Interest expense | (73) |  |  | (77) |  |  |  |  |
Income tax expense | (6) |  |  | (6) |  |  |  |  |
Equity in earnings from unconsolidated affiliates | 5 |  |  | 5 |  |  |  |  |
Other adjustment items(2) | (11) |  |  | (16) |  |  |  |  |
Net income (loss) | 68 |  |  | (12) |  |  |  |  |
Net income attributable to noncontrolling interest | 2 |  |  | 5 |  |  |  |  |
Net income (loss) attributable to stockholders | $ | 66 |  |  | $ | (17) |  |  |  |  |
(1)Includes intersegment transactions. Refer to our table presenting revenues by reportable segment above for additional discussion. (2)These amounts include costs associated with share-based compensation, restructuring, one-time charges and other non-cash items included within our reportable segments. The following table presents total assets for our reportable segments, reconciled to consolidated amounts:
($ in millions) | March 31, 2026 |  | December 31, 2025
Real estate sales and financing | $ | 7,830 |  |  | $ | 7,807 |
Resort operations and club management | 3,459 |  |  | 3,140 |
Total segment assets | 11,289 |  |  | 10,947 |
Corporate | 646 |  |  | 590 |
Total assets | $ | 11,935 |  |  | $ | 11,537 |
The following table presents capital expenditures for property and equipment (including inventory and leases) for our reportable segments, reconciled to consolidated amounts:
| Three Months Ended March 31,
($ in millions) | 2026 |  | 2025
Real estate sales and financing | $ | 23 |  |  | $ | 58 |
Resort operations and club management | — |  |  | — |
Total segment capital expenditures | 23 |  |  | 58 |
Corporate | 5 |  |  | 16 |
Total capital expenditures | $ | 28 |  |  | $ | 74 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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